Oil States International, Inc. (OIS) shares are experiencing a decline in after-hours trading, potentially influenced by recent legal developments affecting the oil industry. On November 27, 2024, Sentinel Peak Resources filed a lawsuit to challenge a new California law, AB 2716, which mandates the closure of 800 oil wells in the Inglewood Oil Field by 2030. This law, aimed at reducing environmental impact, has sparked controversy and could have broader implications for oil companies operating in the region. The legal battle highlights ongoing regulatory pressures on the oil sector, which may be contributing to investor concerns.
Additionally, the state of Maine has initiated a lawsuit against several major oil companies, accusing them of a long-term disinformation campaign regarding climate change. This legal action underscores the increasing scrutiny and potential liabilities facing oil companies over environmental issues. Such developments may be weighing on investor sentiment towards oil stocks, including Oil States International.
Oil States International's stock fell 1.98% to $5.45 in after-hours trading, following a 1.28% increase to close at $5.56 on November 27, 2024.