March 15, 2026 6:24 am

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Energy Secretary invokes Defense Production Act to restart CA Oil Operations

WASHINGTON—U.S. Department of Energy on March 13 directed Sable Offshore Corporation to restore operations of the Santa Ynez Unit and Santa Ynez Pipeline System to address supply disruption risks caused by California policies that have left the region and U.S. military forces dependent on foreign oil.

Oil
Energy Secretary Chris Wright Directs Sable Offshore to Restore Santa Ynez Pipeline Under Defense Production Act. Source: Sable Offshore Corporation.

Energy Secretary Chris Wright invoked the Defense Production Act and executive order, “National Defense Resources Preparedness,” as amended by President Trump’s Executive Order signed on Friday, “Adjusting Certain Delegations Under the Defense Production Act to restore these operations.

“The Trump Administration remains committed to putting all Americans and their energy security first,” Secretary Wright said. “Unfortunately, some state leaders have not adhered to those same principles, with potentially disastrous consequences not just for their residents, but also our national security. Today’s order will strengthen America’s oil supply and restore a pipeline system vital to our national security and defense, ensuring that West Coast military installations have the reliable energy critical to military readiness.”

California Gov. Gavin Newsom condemned the action saying the Trump administration is opening “California’s coast for his oil industry friends so they can poison our beaches.”

Sable’s facility can produce approximately 50,000 barrels of oil per day, a 15 percent increase to California’s in-state oil production, that can replace nearly 1.5 million barrels of foreign crude each month.

California once supplied nearly 40 percent of U.S. oil production, but decades of state policies targeting fossil fuel energy sources have driven a decline in domestic output while fuel demand remains among the highest in the nation.

Today, more than 60 percent of the oil refined in California comes from overseas, with a significant share traveling through the Strait of Hormuz—presenting serious national security threats.

Unlike other regions of the country, California remains largely disconnected from interstate crude pipelines that move American oil to refineries across the United States.

The action by the Trump administration also prioritizes pipeline transportation capacity to ensure crude produced offshore California moves through the Las Flores Pipeline System to Pentland Station and into interstate pipelines, allowing American energy to reach domestic refineries more efficiently, while reducing California’s reliance on foreign oil vulnerable to geopolitical disruption.

Sable Offshore currently employs more than 100 workers and approximately 400 contractors in Santa Barbara County, and restoring operations is expected to create hundreds of additional American energy jobs while generating millions in local economic activity.

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