What Happens to the Islands

The THUMS Islands are four of the most unusual pieces of real estate in California — each spanning several acres, positioned in Long Beach Harbor, with existing infrastructure, power connections, and a history unlike anywhere else in the country. When oil production winds down, what should they become?

In fiscal year 2024, the Mayor requested and the City Council approved one-time funds for an Oilfield Transition Study, completed in April 2026. The study examined potential future uses for the THUMS Islands and associated assets, including carbon sequestration and energy storage, eco-tourism, and other revenue-generating alternatives that could offset the loss of oil production revenue.

The study’s finding was honest: no single reuse option can replace the oil revenue the islands currently generate. But a phased strategy combining wellbore reuse for other applications, selective parcel redevelopment, and public-private partnerships could partially offset the revenue reduction and help defer abandonment liability costs.

Island Grissom, in particular, has been studied as a potential eco-tourism destination, a concept that has attracted public attention and community interest.