U.S. Energy Secretary Chris Wright has directed a Texas-based oil company to restore operations off the coast of southern California, invoking the Defense Production Act to address supply disruption risks. The order, issued on Friday, targets Sable Offshore Corp.'s Santa Ynez unit and pipeline near Santa Barbara, which were damaged by a 2015 oil spill.
The Santa Ynez unit includes three rigs in federal waters, offshore and onshore pipelines, and the Las Flores Canyon Processing Facility. According to the Department of Energy, the facility can produce about 50,000 barrels of oil per day, replacing nearly 1.5 million barrels of foreign crude each month.
“The Trump Administration remains committed to putting all Americans and their energy security first,” Wright said in a statement. He added that the order would strengthen America's oil supply and restore a pipeline system vital to national security, ensuring reliable energy for West Coast military installations.
California Governor Gavin Newsom criticised the move, calling it an illegal attempt to restart a pipeline whose operators face criminal charges and are prohibited by multiple court orders from restarting. “California will not stand by while the Trump administration attempts to sacrifice our coastal communities, our environment, and our $51 billion coastal economy,” Newsom said in a statement.
The state sued the federal government in January over its approval of Sable's plans to restart pipelines along the coast. Democratic Attorney General Rob Bonta argued that the state oversees the pipelines through Santa Barbara and Kern counties and that the federal government has no right to usurp California's regulatory authority.
