California Resources reached agreement with its lenders to restructure and continue to operate as the coronavirus pandemic cut California refinery runs drastically, reducing the need for its crude oil. The company, the largest producer of crude in the state, had been severely impacted by Governor Gavin Newsom’s statewide order on March 19 ordering 40 million Californians to stay home to prevent the spread of the deadly virus.
As the state ground to a halt, most Californians — with the exception of essential workers — stopped driving, and many business operations ground to a halt. California Resources became one of the causalities of the pandemic as the state’s 1.9 million b/d of refinery capacity slowed dramatically to match falling gasoline and diesel demand. Refinery runs fell to 55.5% of capacity in the week that ended May 1, when refiners cut back crude inputs to 1.06 million b/d, according to California Energy Commission data…
