California Resources Corp. bought a major gas pipeline route for $63 million, a move that could reopen access for Kern County oil and Bay Area refineries.
California gas is getting a major boost after California Resources Corp. moved to buy a critical pipeline linking Kern County oil fields with Bay Area refineries. The route has been shut down for months, but the company says it intends to reopen it and restore a path that matters to California’s energy supply.
The $63 million deal covers about 2,000 miles of pipeline acquired from Denver-based CorEnergy Infrastructure Trust Inc. If regulators approve the transaction, CRC could use the line to move as much as 400,000 additional barrels of crude oil per day. Work to bring the pipeline back online could begin as soon as October 1. The purchase is still pending because the California Public Utilities Commission must allow the company to move forward, and the utility regulator is set to vote Thursday after CRC sought approval on June 16.
CRC President and Chief Executive Officer Francisco Leon said the acquisition would deepen the company’s role in the state’s energy market. He called it a step that strengthens CRC’s position as California’s leading integrated infrastructure energy platform. Leon also said the wider network would improve the company’s ability to move California-produced barrels to the highest-value markets while giving it more flexibility and better flow assurance across its portfolio. He added that the assets are difficult to replace and support long-term value creation.
The pipeline purchase has drawn attention from oil producers in the Central Valley, who see the possibility of better access to refineries and stronger pricing. Kern County oilman Chad Hathaway told Bakersfield.com that he remains loyal to his current refiner but plans to watch what happens to the differentials. That reaction shows how closely local producers are tracking the reopening of a route that could change how crude moves out of the region.
“California Resources Corp. bought a major gas pipeline route for $63 million, a move that could reopen access for Kern County oil and Bay Area refineries.”
CRC said the transaction would reduce exposure to limited outlet choices and pricing discounts while supporting California jobs, royalty revenues and the reliable delivery of locally produced energy. For an industry that has often faced pressure from state policy, the move represents a notable shift in the state’s energy landscape. It also underscores how much California’s fuel system still depends on pipelines, refineries and the companies that control access between them.
The timing is notable because California consumers already face some of the highest utility costs in the country, and those bills are projected to climb. Pacific Gas & Electric’s 16 million customers could see fees rise by as much as $840 by 2030, according to a forecast from the California Public Utilities Commission’s Public Advocates Office. The current average cost for gas and electricity is $285 a month, or about $3,420 a year, which is up 84% since 2016.
That broader cost picture gives the pipeline deal added weight. If regulators approve the sale, CRC could reopen a major artery for California crude and potentially ease pressure on local producers trying to reach buyers. For Americans watching energy prices, refinery access and California’s wider cost crunch, the next step is the CPUC vote and the company’s push to restart the line. The takeaway: this pipeline deal could shape how energy moves through California and who pays the price for it.
Frequently asked questions
What did California Resources Corp. buy?
The company purchased about 2,000 miles of Pipeline from CorEnergy Infrastructure Trust Inc. The route connects Kern County oil fields with Bay Area refineries.
How much is the deal worth?
The acquisition is valued at $63 million. CRC says the purchase could let it transport up to 400,000 more barrels of crude oil per day.
Why is the deal not finished yet?
The California Public Utilities Commission still has to approve the transaction. The agency is scheduled to vote Thursday.
Why does CRC say the pipeline matters?
CRC says the deal would reduce exposure to constrained outlets and pricing discounts while supporting California jobs, royalty revenues and reliable delivery of locally produced energy.
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