Speedier regulation will push California’s energy progress
California’s energy market is at a sensitive point. Several fuelmakers have closed operations in recent years, and the resulting supply issues and compliance costs are driving high consumer prices.1
However, Clio Crespy sees growing momentum for improvement, not least in California Governor Gavin Newsom’s recent call for the California Energy Commission to help keep in-state refiners operational.2
The recently-appointed CFO at energy and carbon management company California Resources Corporation (CRC) is looking forward to the possibility of accelerated permitting regimes for upstream oil and gas projects and carbon capture and storage (CCS) – both of which are now relevant to the company.
“Those would allow developers and customers to sign long-term contracts with a greater level of confidence on both sides, which will foster long-term investment into these projects,” Crespy says. She is also encouraged by the progress of a state bill to support CO2 transport infrastructure.
Crespy and CRC continue to see California as rich in opportunities: “It does have a high barrier to entry, but it really has the ability to be a leading market in CCS. Getting from that ambition to action is going to require close collaboration between industry regulators and communities.”
“California does have a high barrier to entry, but it really has the ability to be a leading market in CCS.”
Clio Crespy, CFO, California Resources Corporation
Green light for carbon capture ‘proof point’
The company has gained a head start in the field. In December CRC and its carbon management business, Carbon TerraVault, received California’s first permits from the Environmental Protection Agency (EPA) for underground CO2 injection and storage into depleted oil and gas reservoirs.
The permits relate to the company’s Elk Hills Field site in Kern County, where the project will sequester CO2 from a cryogenic gas plant.3
While relatively small compared to other CRC projects, the scheme is “a critical proof point for our customers, for regulators and for capital markets”, Crespy notes.
The project is being advanced in conjunction with CRC’s joint venture with Brookfield, which includes a commitment of up to $500 million for joint carbon capture and storage (CCS) initiatives. This partnership underscores strong momentum behind CRC’s carbon management strategy and establishes a credible platform for growth in CCS—an area that requires a disciplined approach, says Crespy.
“We’re looking at long-duration infrastructure with a very different risk-reward profile from oil and gas,” she explains.
In a still-emerging market, CRC plans to prioritize the strongest CCS schemes, whether through increased ownership and control, customer pre-commitments, or third-party capital. “The end goal for us is to scale a portfolio that delivers a real decarbonization impact but also meets our return thresholds, and we’ll stay very disciplined on that.”
“We’re looking at long-duration infrastructure with a very different risk-reward profile from oil and gas.”
Clio Crespy, CFO, California Resources Corporation
Merger bolsters finances and portfolio
Alongside scaling the CCS business, Crespy’s mandate is to continue to strengthen CRC’s financial foundation.
In part, that includes delivering synergies through last year’s merger with Aera Energy, which effectively doubled the company’s size while strengthening its portfolio. Operational and capital efficiency gains are expected to realize $185m in savings this year, Crespy says.
Over the next year, while moving to commercialization of its first CCS project, CRC will focus on execution in its upstream business.
“We’re continuing to deliver on cost discipline, on margin optimization, on free cashflow generation from our expanded assts,” Crespy says. “We also anticipate next steps in well permitting environment in the second half of the year.”
This content was recorded at RBC's Global Energy, Power and Infrastructure Conference in New York on June 3rd 2025.
