Trump and Energy Secretary Wright Order Sable Offshore California Restart Under Defense Production Act Amid Investor Lobbying Disclosures
Using the Defense Production Act, President Trump and Energy Secretary Chris Wright ordered Texas-based Sable Offshore Corp.’s Santa Ynez unit — including three rigs, offshore and onshore pipelines and the Las Flores Canyon Processing Facility — restarted, with the Energy Department saying the site can produce about 50,000 barrels per day (roughly 1.5 million barrels a month) to mitigate supply‑disruption risks and support West Coast military installations; Wright tied the order to national security while acknowledging there are no guarantees it will lower prices. The decision follows a yearslong investor lobbying campaign that included golfer Phil Mickelson and has drawn fierce opposition from California officials, who say operators face criminal charges, are barred by multiple court orders, have sued the federal government over approval, and vow to take the administration and Sable back to court.
📌 Key Facts
- The Energy Department invoked the Defense Production Act to order Sable Offshore Corp. to restore its Santa Ynez unit — explicitly including three rigs, offshore and onshore pipelines, and the Las Flores Canyon Processing Facility — citing the need to address supply disruption risks.
- DOE said the Santa Ynez facility can produce about 50,000 barrels of oil per day (nearly 1.5 million barrels per month) and framed the restart as important to energy security for West Coast military installations.
- Energy Secretary Chris Wright tied the order to national security and criticized unnamed state leaders for not following what he called energy‑security principles, while also acknowledging there are "no guarantees" the policy will lower oil prices in the near term.
- California officials, led by Gov. Gavin Newsom and AG Rob Bonta, say the restart is illegal: they note the pipeline operators face criminal charges, are barred by multiple court orders from restarting, and sued the federal government in January arguing California — not Washington — regulates the relevant onshore pipelines in Santa Barbara and Kern counties; Newsom vowed to take the administration and Sable back to court.
- California’s Natural Resources Agency recently notified Sable it must remove a pipeline crossing a state park unless the company confirms it is not using that line, underscoring state efforts to keep the system shut.
- Reporting documents a yearslong investor influence and lobbying campaign by Sable investors — including golfer Phil Mickelson — aimed at courting Trump administration officials to restart the California offshore project, with investor group chats about boosting Sable’s stock and pitch tactics such as offering golf with Mickelson and other outreach.
- Investor activism included public pressure from Mickelson (an Oct. 18, 2025 post on X pressing Interior Secretary Doug Burgum about Sable and touting projected federal royalties and tax revenues) and private investor chat messages reported by Hunterbrook Media that discussed ways to woo officials and raise the company’s valuation.
📊 Relevant Data
Black households in the US experience higher energy burdens, spending a larger share of income on energy costs compared to White households, with disparities exacerbated during oil price spikes.
Race, Rates, and Energy Insecurity: Exploring Racial Disparities in Electricity Costs and Consumption in U.S. Utility Service Areas — Resources for the Future
In California, Black and Latinx residents face the highest exposure to oil and gas wells, with Black residents exposed to the most pollution from such operations compared to other groups.
Black, Latinx Californians Face Highest Exposure to Oil and Gas Wells — UC Berkeley Research
Oil price uncertainty shocks increase unemployment rates more significantly for Black workers than for White workers in the US, with the effect magnitude being larger for Blacks.
Racial and ethnic disparities in unemployment and oil price uncertainty — ScienceDirect
From 2010 to 2022, the Hispanic/Latino population in Santa Barbara County, California, grew by 28,310 individuals, increasing from 182,307 to 210,617, representing a significant demographic shift in the area affected by the offshore drilling project.
Santa Barbara County, CA population by year, race, & more — USA Facts
The Sable Offshore facility restart is projected to produce approximately 50,000 barrels of oil per day, representing a 15% increase to California's in-state oil production, but experts indicate it would not significantly lower gas prices.
Trump administration orders restart of California offshore oil operations — The Hill
📰 Source Timeline (3)
Follow how coverage of this story developed over time
- Describes a yearslong influence and lobbying campaign by Sable Offshore investors, including golfer Phil Mickelson, aimed at Trump administration officials to get the California offshore project restarted.
- Cites Hunterbrook Media reporting on an investor group chat where Sable investors discussed boosting Sable’s stock price and ways to woo Trump officials, including offering golf with Mickelson and even a tongue‑in‑cheek proposal to rename the Pacific Ocean 'Ocean America.'
- Highlights Mickelson’s public October 18, 2025 post directly pressuring Interior Secretary Doug Burgum on X about Sable, touting projected federal royalties and tax revenues and asking, 'What are you prepared to do?'
- Notes that California’s Natural Resources Agency recently notified Sable it must remove a pipeline crossing a state park unless the company confirms it is not using that line, underscoring state efforts to keep the system shut.
- Reiterates and expands on Gov. Gavin Newsom’s office’s statement accusing Trump of using a war‑driven price spike he created to justify opening California’s coast to 'oil industry friends' and labeling the restart attempt an illegal effort to revive a pipeline whose operators face criminal charges and are barred by multiple court orders.
- Adds on‑record acknowledgment from Energy Secretary Wright that there are 'no guarantees' the policy will lower oil prices anytime soon, undercutting the stated rationale of easing gas costs.
- The Energy Department news release specifies that restoring Sable Offshore Corp.’s Santa Ynez unit — including three rigs, offshore and onshore pipelines, and the Las Flores Canyon Processing Facility — is being ordered explicitly to address supply disruption risks.
- DOE states the facility can produce about 50,000 barrels of oil per day, replacing nearly 1.5 million barrels of foreign crude per month, and links this directly to energy security for West Coast military installations.
- Energy Secretary Chris Wright is quoted tying the order to national security and criticizing unnamed state leaders for not adhering to what he calls energy‑security principles.
- Gov. Gavin Newsom responds that this is an attempt to illegally restart a pipeline whose operators face criminal charges and are barred by multiple court orders from restarting, vowing to take the administration and Sable back to court.
- The article notes that California sued the federal government in January over federal approval of Sable’s restart plan, with AG Rob Bonta arguing California, not Washington, regulates the relevant onshore pipelines in Santa Barbara and Kern counties.