California oil producers are scrambling as the San Pablo Bay Pipeline shutdown forces costly trucking of crude barrels 50 miles across Kern County. The pipeline operated by Crimson Midstream LLC has been idle since December after Valero Energy Corp's Benicia refinery ceased operations, cutting off a vital outlet for up to 35,000 barrels per day from the Kern oil field.

This infrastructure bottleneck has created a regional glut, pushing Kern crude to a $10 discount to Brent crude while producers pay up to $10 per barrel for trucking. About half the displaced oil flows through an alternate line, but the remainder requires trucking to Pentland Station for shipment to Los Angeles-area refineries. Crimson spends at least $3 million monthly to maintain pipeline viability through March.

Nearly 100 trucks daily make the 100-mile round-trip journey, creating what E&B Natural Resources President Steve Layton calls a "collapsing infrastructure" crisis. The situation worsens as PBF Energy's Martinez refinery remains hesitant to purchase local crude following a 2025 fire and concerns about California's emissions regulations. With two refineries closing recently and California's remaining refineries heavily reliant on Middle Eastern oil imports, producers face squeezed margins and an uncertain future for Kern oil flows.