In brief
US Energy Secretary Chris Wright has directed the Sable Offshore Corporation to restore operations of its Santa Ynez oil unit in California, citing the Defense Production Act. This order is meant to enhance domestic oil supply and address energy security concerns. However, it has provoked strong pushback from California Governor Gavin Newsom, who argues it undermines state authority and environmental safety.
WASHINGTON (RTW News) — In an effort to bolster domestic oil production, US Energy Secretary Chris Wright has ordered the Texas-based Sable Offshore Corporation to restore operations at its Santa Ynez unit off the southern coast of California. The directive, announced on Friday, invokes the Defense Production Act, which aims to enhance national energy security.
The restoration of the Sable unit, which includes vital infrastructure for producing up to 50,000 barrels of oil per day, addresses concerns about disruptions in domestic supply, particularly in light of the ongoing global energy crisis. The pipeline system is anticipated to replace nearly 1.5 million barrels of foreign crude oil each month.
“The Biden Administration prioritizes energy security for American families,” Wright emphasized in a statement. “In contrast, some state leaders risk endangering our energy independence, potentially harming both their constituents and our national security. This action will reinforce America’s oil supply and restore a critical infrastructure for military readiness along the West Coast.”
On his first day in office, President Donald Trump had already reversed previous administrations' restrictions on offshore drilling, which further escalated the debate around energy extraction regulations. His administration’s approach was met with legal challenges, leading to a federal court ruling that supported oil development in several federal waters previously withdrawn from production.
California Governor Gavin Newsom has strongly opposed this move, declaring it an illegal attempt to restart a pipeline under criminal investigation and court restrictions. “This is not just risking our environment but also endangering the coastal economy,” Newsom stated. He asserted that California would not hesitate to challenge federal actions that undermine state protections.
In response to the federal order, California has previously filed lawsuits objecting to the Sable Corporation’s pipeline plans, reinforcing its regulatory authority over coastal energy production. Attorney General Rob Bonta reminded that the state maintains oversight of energy operations essential for both environmental and economic stability.
