Strategic Focus on Carbon Capture and Power Generation
CRC is advancing its first CCS project in California, with construction authorization received from EPA, and expects to start injection early 2026.
The company is exploring opportunities to supply power with pathways to CCS, including discussions with potential counterparties for Elk Hills power plant and CO2 storage reservoirs.
California's support for clean power procurement, including potential new markets, positions CRC to expand its decarbonization solutions and leverage its assets in a changing energy landscape.
California Regulatory Developments and Permitting Outlook
The Kern County Board of Supervisors approved the recertification of the EIR, enabling permitting to resume, with a court review pending expected decision before year-end.
Management expressed strong confidence that the revised EIR addresses previous deficiencies, supporting a positive outcome for permitting in California.
California's regulatory environment has shown a constructive shift over the past five years, with recent policies aimed at stabilizing in-state production and codifying the EIR into state law to streamline permitting.
The company already holds permits supporting development into 2027, providing operational certainty regardless of the court's ruling.
California's legislative efforts, including the Energy Commission's response to Governor Newsom, aim to increase in-state oil production, which aligns with Berry's strategic interests.
The potential legislative reforms could benefit Berry's C&J Well Services business by increasing demand for P&A services due to new plug-to-drill requirements.
Dafinchi