CRC Applies to Buy Closed Pipeline Linking Kern Oil with Bay Area Refinery

The Bakersfield Californian reports that California Resources Corporation has applied to buy the idle San Pablo Bay Pipeline, historically operated by Crimson Midstream.

CRC’s proposed acquisition could help restore a critical pipeline connection between Kern County producers and PBF’s Martinez refinery. The pipeline’s shutdown eliminated an important market for locally produced crude, leaving producers with fewer buyers, higher transportation costs and greater exposure to steep price discounts. Placing the system under the control of California’s largest producer could align the pipeline’s operation with the industry’s need to keep California crude moving to California refineries, preserving jobs, royalty income and a reliable domestic energy supply.