ECONOMY
2 min readCalifornia's Major Oil Pipeline Faces Shutdown, Affecting Bay Area Refineries
TrueGov Editorial Team•7 months ago•2 min read
Governor Newsom's office petitioned for rate increases to prevent closure
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California's largest inland oil pipeline, the San Pablo Bay Pipeline operated by Crimson Midstream LLC, faces potential shutdown this fall without state approval for rate increases and other financial measures. According to Robert Waldron, CEO of parent company CorEnergy Infrastructure Trust, the pipeline is currently losing $2 million monthly, creating significant financial strain. The company has formally requested a 37% fee increase for crude shippers, a temporary $3.75-per-barrel tariff hike, and additional relief measures from Governor Gavin Newsom's administration.