Yes and they had to pay to offload (lighter) the oil from one side to the other plus I think a dollar a barrel fee to Panama. A pipeline was proposed from Long Beach to Midland Texas but couldn't get through the myriad California environmental permits that ever local government required.
The lightering was done before the trans Panama pipeline was built. In fact, non-US flag tankers with Jones Act waivers initially brought the crude to Panama where it was lightered to US ships for the canal transit.
I transported Alaskan crude to Panama after the pipeline was built.