California Resources to Acquire 2,000 Miles of Pipeline, Boosting State Oil Transport

California Resources Corp. has reached a $63 million agreement to acquire about 2,000 miles of pipeline from Denver-based CorEnergy Infrastructure Trust Inc, a line that has been idle since December. The asset would enable CRC to transport up to an additional 400,000 barrels of crude each day, with work to restart the flow possibly starting on October 1. Finalization hinges on a vote by the California Public Utilities Commission, following CRC’s request filed on June 16.

President and chief executive officer Francisco Leon said the deal expands the company’s integrated infrastructure and enhances delivery of California-produced barrels to high-value markets. The acquisition is expected to reduce reliance on constrained outlets, support local jobs and royalty revenue, and appeal to Central Valley oil producers such as Kern County’s Chad Hathaway. Analysts note the move could help a California energy sector that faces high utility costs and regulatory pressures.