By Eliyahu Kamisher and Nathan Risser, Bloomberg

California’s largest inland oil pipeline is in danger of closing within months without state approval for a rate increase and other measures, a shutdown that would choke off some crude supplies to at least two San Francisco-area refiners.

Crimson Midstream LLC’s San Pablo Bay Pipeline that hauls oil from the Bakersfield area to Northern California refiners is losing $2 million a month, creating “severe financial distress” for the company, Robert Waldron, CEO of Crimson’s parent CorEngery Infrastructure Trust, wrote in a letter to Governor Gavin Newsom’s office this week.

The pipeline’s fortunes have waned amid a “sudden and unexpected shift” of regional oil production to rival pipelines serving Los Angeles-area fuel makers, Waldron wrote.

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