Energy Leadership

California Resources Corporation’s (CRC’s) operations comprise tens of billions of dollars of private investment in our state over 20 years to meet Californians’ energy needs by acquiring and modernizing oil and natural gas fields with substantial resources and integrating these fields with electricity generation and infrastructure. These investments enable us to serve Californians both as the state’s largest oil and natural gas operator and as a net supplier of affordable, reliable electricity.

The advanced natural gas processing and electric generating plants at Elk Hills and in Long Beach are highly efficient, utilizing locally produced natural gas to generate electricity that powers our operations and can supply over 300,000 homes in the surrounding region. In 2016, these facilities delivered nearly 2.3 million megawatt hours (MWh) of electricity to a local utility and California’s power grid – 60 percent more than the total amount of electricity we purchased for our statewide operations. The integrated gas processing and power plants have also enabled our operations to dramatically expand our use of electric-powered equipment to increase efficiency and reduce air emissions. For example, CRC’s THUMS subsidiary is one of the leading users of electrical submersible pumps to produce oil from the Wilmington Field in Long Beach.

In 2016, the power plants at our Elk Hills and Wilmington Fields used local natural gas to generate 3.73 million MWh of electricity, 60 percent of which was supplied to a utility or the power grid. We consumed 2.89 million MWh of electricity in our operations in 2016, meaning that we produced 29 percent more electricity than we consumed. Our investments in electricity generation demonstrate CRC’s commitment to making California more energy efficient, and ensure that our operations increase affordable and reliable energy supplies for the communities where we live and work.

In 2016, we purchased 1.41 million MWh for our operations, primarily from Southern California Edison and Pacific Gas and Electric. Approximately 0.41 million MWh, or 30 percent of our purchased electricity, comes from renewable sources. Although we primarily self-generate electricity using local natural gas, renewable sources comprised 14 percent of our total electricity consumption in 2016. The estimated 2016 breakdown of our purchased renewable electricity is as follows:

2016 State Renewable Power Mix

Solar 36.0%
Wind 31.5%
Geothermal 23.4%
Biomass 5.3%
Hydro 3.8%

Source: California Renewable Portfolio Standard Annual Report to the Legislature, November 2017.

The following table summarizes our electricity generation, supply to utilities and the state’s power grid, consumption and purchased electricity from 2014 through 2016.

Year Electricity produced onsite(MWh) Electricity supplied to utilities or the grid (MWh) Electricity consumed (MWh) Electricity produced and consumed onsite (MWh) Consumed electricity that is purchased (MWh) Purchased renewable electricity consumed (MWh) Percent of renewable electricity purchased
2014 4,413,300 2,849,339 2,216,437 1,563,961 652,476 171,697 26.3%
2015 4,399,867 2,589,118 2,477,272 1,810,749 666,523 187,319 28.1%
2016 3,733,766 2,254,069 2,892,176 1,479,697 1,412,479 417,954 29.6%

CRC’s energy leadership extends well beyond our service as a net electricity supplier to Californians. Our 2030 Sustainability Goals for methane, renewables and carbon all relate directly to energy production at our oil and gas fields. In particular, our carbon goal is to design and permit the state’s first carbon capture and storage system at Elk Hills. The system would collect carbon dioxide from the Elk Hills Power Plant and inject it into underground oil and natural gas formations for enhanced oil recovery and long-term carbon sequestration. If permitted, funded and installed, the project would effectively make the Elk Hills Power Plant carbon-neutral and reduce CRC’s GHG emissions by 30 percent against a 2013 baseline.