USA14 March, 20263 min read
Energy Secretary Chris Wright Orders Sable Offshore Corp. to Restart Santa Ynez Unit Offshore Operations
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Energy Secretary Chris Wright ordered Sable Offshore Corp. to restart Santa Ynez Unit and pipeline. The action invoked the Defense Production Act to compel restart.
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Federal Order Issued
U.S. Energy Secretary Chris Wright issued a directive on Friday directing Texas-based Sable Offshore Corp. to restore operations at the Santa Ynez Unit and pipeline system off Santa Barbara, California.
“U.S. Energy Secretary Chris Wright directed a Texas-based oil and gas company Friday to restore operations in waters off southern California that were damaged by a 2015 oil spill, invoking the Defense Production Act.”
The directive invokes the Defense Production Act to address what administration officials describe as supply disruption risks.
The order targets a facility that includes three rigs in federal waters, offshore and onshore pipelines, and the Las Flores Canyon Processing Facility.
The facility has been inactive since a 2015 oil spill damaged the infrastructure.
The Trump administration's action comes as part of a broader energy policy shift.
Energy Secretary Wright stated the move strengthens America's oil supply and restores a pipeline system vital to national security and defense.
The directive ensures reliable energy for West Coast military installations.
Spill History
The Santa Ynez Unit has been shut down since May 2015 when a corroded onshore pipeline ruptured and released an estimated 450,000 gallons of oil near Refugio State Beach. The 2015 spill created significant environmental damage that fouled about 150 miles of coastline. The spill killed marine mammals and birds and forced the closure of fisheries and beaches.
Texas-based Sable Offshore purchased the assets from ExxonMobil in 2024 and has since sought to revive operations. These efforts have faced widespread public opposition, multiple lawsuits, and enforcement actions.
Environmental groups including the Center for Biological Diversity, the Wishtoyo Foundation, and EDC have sued state agencies over corrosion-related waivers and permitting decisions. A preliminary injunction has been upheld to prevent a restart while legal challenges proceed.
Security Rationale
The Trump administration justifies the directive as a necessary measure for national security and energy independence. Energy Secretary Wright argues that 'The Trump Administration remains committed to putting all Americans and their energy security first'. Wright criticizes state leaders for not adhering to these principles.
“'The Trump Administration remains committed to putting all Americans and their energy security first,' Wright said in a statement. '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.'”
According to administration officials, the Santa Ynez facility can produce about 50,000 barrels of oil per day. This production would replace nearly 1.5 million barrels of foreign crude each month. The facility would provide a 15 percent increase to California's in-state oil production.
The order was issued under the Defense Production Act and Trump's executive order titled 'National Defense Resources Preparedness'. Officials emphasize ensuring West Coast military installations have reliable energy critical to military readiness.
Regulatory Obstacles
The directive faces significant legal and regulatory hurdles. Environmental groups and state regulators have raised numerous concerns about safety and environmental impact. State regulators have identified that the pipeline requires additional repairs before it can safely operate.
The California State Fire Marshal told Sable late last year that the pipeline needs additional repairs. The California Coastal Commission has cited Sable for unlawful work in sensitive coastal habitat. The California attorney general and Santa Barbara County district attorney have sued over alleged unlawful discharges into creeks and waterways.
Under California law, Sable still needs key approvals including an easement to operate through Gaviota State Park. Sable needs a new Coastal Development Permit from the Coastal Commission. Environmental groups report no comprehensive environmental review or public hearings have been conducted as required.
Political Conflict
The Trump administration's action represents a significant escalation in the federal-state conflict over energy policy and environmental regulation. Governor Gavin Newsom condemned the directive as the administration 'opening California's coast for his oil industry friends so they can poison our beaches.' The move comes just after President Trump signed an executive order on his first day of his second term.
“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.'”
The executive order reversed former President Biden's ban on future offshore oil drilling on the East and West coasts. This followed a federal court decision that struck down Biden's order to withdraw 625 million acres of federal waters from oil development. The Department of Energy did not provide a public timeline for when production or pipeline flows might resume.
The practical impact may hinge on how federal authorities implement the DPA authority. The impact also depends on how quickly courts rule on pending and likely new challenges. This is a developing story with significant implications for California's coast and federal-state relations.