U.S. Secretary of Energy Chris Wright directed Sable Offshore Corp. on Mar. 13 to restore operations at the Santa Ynez Unit and Santa Ynez Pipeline System, citing risks to energy supply caused by California policies that have increased reliance on foreign oil for the region and U.S. military forces.
The directive was issued under the Defense Production Act and an executive order, with the goal of strengthening domestic oil supply and supporting national security. Wright said, “The Trump Administration remains committed to putting all Americans and their energy security first. 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.”
Sable’s facility is capable of producing about 50,000 barrels of oil per day, which would increase California’s in-state production by 15 percent and could replace nearly 1.5 million barrels of imported crude each month. The move comes as more than 60 percent of oil refined in California is now sourced from overseas, much of it passing through the Strait of Hormuz—a route considered vulnerable from a national security perspective.
California once supplied nearly 40 percent of U.S. oil production but has seen domestic output decline due to state policies targeting traditional energy sources while demand remains high, according to the Department of Energy. Unlike other regions in the country, California is largely disconnected from interstate crude pipelines that transport American oil across states.
The action also prioritizes pipeline transportation capacity so that crude produced offshore can move efficiently through the Las Flores Pipeline System into interstate pipelines for refining within the United States rather than relying on foreign imports susceptible to geopolitical disruptions.
Sable Offshore currently employs over 100 workers along with about 400 contractors in Santa Barbara County; restoring operations is expected to create hundreds more jobs and generate significant local economic activity.
Broader efforts by the Department of Energy include programs such as a $225 million initiative funded by President Biden’s Bipartisan Infrastructure Law for implementing new building energy codes according to DOE, support for clean vehicle technologies with $96 million in funding as announced by DOE, technology development at national laboratories for environmental management missions according to testimony before Congress, innovative groundwater cleanup processes at Savannah River Site as reported by DOE Office of Environmental Management, and more than 140 programs supporting President Biden’s Justice40 Initiative aimed at delivering clean energy investments to disadvantaged communities according to DOE.
Looking ahead, federal officials continue efforts both on securing traditional energy supplies vital for defense needs as well as advancing clean energy initiatives nationwide.
