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Defense Production Act · Energy Policy · Environmental Litigation · Oil Production
Sable Offshore has resumed oil production in Santa Barbara County, California, following an executive order from the Trump Administration under the Defense Production Act of 1950.
This directive compels the Houston-based energy company to restart operations, including the use of onshore pipelines dormant since a 2015 oil spill, bypassing state environmental and safety regulations. The restart is critical for Sable Offshore to retain ownership of the Santa Ynez Unit, which it acquired from ExxonMobil in February 2024 via a $622 million loan contingent on bringing oil to market.
The company expects to ramp up to 50,000 barrels of oil per day from platforms Harmony and Heritage by month-end, with sales commencing April 1, 2026, projecting a 17% increase in California's domestic crude supply. However, the move faces intense opposition. Environmental groups, led by the EDC, and state officials are pursuing legal challenges, citing unresolved safety issues with the pipeline (Line CA-324, formerly Line 901) and an alleged abuse of presidential power.
The California Office of State Fire Marshal had previously identified outstanding repairs needed for safe operation. Federal regulators, including the Department of Transportation, asserted authority over the pipelines, overriding state oversight.
Despite a federal court declining to halt the restart, expedited processing for lawsuits continues, with new state laws potentially requiring additional permits. The California Department of Parks and Recreation has also demanded pipeline removal from its jurisdiction, adding another layer of legal complexity.
