CRC Plans $450M-$475M California Drilling in 2027
California Resources Corporation outlines its 2027 capital plan, pipeline restart target and power partnership with Bloom Energy.
Updated on Nov. 4, 2026 in Oil and Gas
California Resources Corporation plans to spend $450 million to $475 million on California drilling in 2027. The company also targets restarting its San Pablo Bay pipeline in the first quarter of 2027.
Why it matters
The spending plan and pipeline timing set the company's California production and cost outlook for the coming year. The company's six-rig maintenance program is designed to hold gross production flat.
California Resources Corporation's planned 2027 California drilling spend is $450 million to $475 million, with each percentage-point realization improvement projected to add about $40 million in annual EBITDA. The company has not yet confirmed whether it will meet its first-quarter 2027 pipeline restart target.
The players
California Resources Corporation
California Resources Corporation is an independent oil and gas producer focused on operations in California.
Bloom Energy
Bloom Energy is a fuel cell company that develops solid-oxide power systems for commercial and utility customers.
The details
The company will run a six-rig maintenance drilling program in California aimed at holding gross production flat from the start to the end of 2027. It also outlined a multi-project power development opportunity with Bloom Energy exceeding one gigawatt, with outside developers expected to own and operate the projects.
Timeline
First quarter 2027: Target for restarting the San Pablo Bay pipeline.
2027: Planned California drilling, completions and workovers spending of $450 million to $475 million.
End of 2027: Target for gross production to remain flat compared with the start of the year.
Market Landscape
California's in-state crude output has been trending downward, and operators there have increasingly favored maintenance-level drilling over expansion. California Resources Corporation's plan to hold gross production flat with six rigs follows that pattern while positioning the company to pursue power projects alongside its core oil business.
For California fuel and energy markets, the company's flat-production plan suggests steady rather than growing in-state crude supply through 2027. Residents and businesses tracking gasoline prices may see the pipeline restart and production timing as factors shaping regional supply.
The takeaway
Companies operating mature California fields are increasingly balancing steady output with new power ventures, and the 2027 pipeline restart and production targets will show how well that balance holds.
What happens next
The company is targeting the restart of its San Pablo Bay pipeline in the first quarter of 2027, a date that will show whether the restart timeline holds.
Further reading
Explore more California oil and gas industry coverage for context on the state's production trends.
Source note: This article includes information reported by TokenPost.
