California Resources Corporation's (CRC) oil production is connected to California markets via our oil gathering pipelines which are used almost entirely for our production. We generally do not transport, refine or process the oil we produce, and we sell almost all of our oil into the California refining markets. We believe these markets are among the most favorable in the U.S. because California imports a significant percentage of its oil requirements from outside the state – mostly from foreign countries that do not share California’s leading safety, labor, human rights and environmental standards – and there are no crude oil pipelines that link California to other oil-producing states.
CRC’s production from oil and gas reservoirs typically includes oil, produced water, natural gas (methane), and natural gas liquids (NGLs) that include ethane, propane, butane and natural gasoline. CRC’s Elk Hills Power, LLC joint venture operates the largest natural gas processing plant in California, which supplies customers with high quality NGLs from the Elk Hills Field.
CRC is the largest natural gas producer in California, which imports more than 90 percent of the natural gas consumed in the state. Natural gas is a clean fuel that provides 30 percent of California’s electricity generation, a highly efficient direct source of energy for heating and cooking in California homes, restaurants, hospitals, and a key feedstock in industrial applications. Since 2005, there have been more U.S. greenhouse gas reductions from natural gas than all renewables combined.
We sell our natural gas production in the state and use intrastate transportation contracts to facilitate delivery of our natural gas to customers. CRC has invested in significant processing facilities at our key fields which supply utilities and industrial customers with natural gas. In addition, we have reduced our methane emissions and flaring by installing equipment like microturbines and natural gas compression to make beneficial use of natural gas in areas without access to natural gas pipelines.
Elk Hills Power, LLC, a joint venture between CRC and a portfolio company of Ares Management, L.P., generates electricity from natural gas in the Elk Hills Field. With a capacity of 550 megawatts (MW), the plant’s electricity powers Elk Hills and other nearby fields, and supplies excess power to a local utility and California’s electrical grid sufficient to supply more than 300,000 homes. CRC operates a 45 MW cogeneration facility that provides steam and electricity as needed to the Elk Hills Field, and THUMS Long Beach Company operates a 45 MW power generating facility that provides electricity to the Wilmington Field in Long Beach.
For more information about CRC’s products, please contact:
Natural Gas, Natural Gas Liquids and Electricity
Director, Gas, Power and NGL Marketing
Director, Crude Marketing