Trump Uses Defense Production Act to Restart California Offshore Oil as Newsom Vows Legal Fight
Sable Offshore Corp. CEO Jim Flores says the Trump administration’s recent order under the Defense Production Act directing his company to restart the Santa Ynez Unit and Santa Ynez Pipeline off Santa Barbara will boost fuel supplies during the Iran-war oil shock, arguing it could produce enough crude to fuel about 6 million cars a month and supply roughly 50 military bases in California, Nevada and Arizona. The move follows Energy Secretary Chris Wright’s directive to restore operations as Brent crude topped $100 a barrel for the first time since 2022, with the White House framing the step as necessary to reduce reliance on foreign oil. California Gov. Gavin Newsom has condemned the order as "reckless and illegal," accusing Trump and Sable of defying multiple court orders tied to a 2015 pipeline spill of more than 140,000 gallons of crude and vowing to fight the restart in court, while his office says the output would barely affect global prices but would threaten coastal environments. Flores counters that the pipeline has been substantially upgraded since the spill and insists operations would be "very safe," highlighting a familiar clash between federal wartime energy policy and California’s aggressive anti-drilling stance. The dispute comes as California’s oil production has fallen from more than 1 million barrels per day in the 1980s to roughly 250,000 barrels today, making the state more dependent on imported crude just as war-related disruptions tighten global supply.
📌 Key Facts
- Energy Secretary Chris Wright ordered Sable Offshore Corp. to restart the Santa Ynez Unit and Santa Ynez Pipeline System off Santa Barbara under the Defense Production Act amid Iran-war oil supply concerns.
- Sable CEO Jim Flores claims the restarted operation could produce enough oil to fuel about 6 million cars a month and supply fuel for around 50 U.S. military bases in California, Nevada and Arizona.
- California Gov. Gavin Newsom called the order "reckless and illegal," says it defies multiple court orders related to a 2015 spill of over 140,000 gallons of crude, and pledged to fight the restart, arguing it will not meaningfully lower prices but will endanger the coast.
- Oil prices recently rose above $100 a barrel for the first time since 2022 amid the Iran war, and California’s oil output has fallen from more than 1 million barrels/day in the 1980s to roughly 250,000 barrels/day today.
📊 Relevant Data
California's oil production has declined from over 1 million barrels per day in the 1980s to around 250,000 barrels per day today, primarily due to missing out on the shale boom, stricter environmental regulations, and refinery outages, which have increased costs and limited expansion.
How The Californian Oil Boom Died — OilPrice.com
In the U.S. active-duty military, racial demographics show White service members at 53.6%, Black at 20.3%, Hispanic at 17.6%, Asian or Pacific Islander at 6.3%, and other groups at lower percentages, with Black and Hispanic groups overrepresented relative to their U.S. population shares of about 13.6% and 19% respectively.
Active Component Demographics — U.S. Army
Black households in the U.S. face higher energy burdens, spending a greater percentage of income on energy bills compared to White and Asian households, with Black families experiencing burdens up to twice as high in some regions like California.
Black families are the hardest hit by high energy costs — UPI.com
Oil price uncertainty increases the U.S. unemployment rate by 13 to 35 basis points overall, but the effect is about twice as large for Black and Hispanic unemployment rates compared to the general population.
Racial and ethnic disparities in unemployment and oil price uncertainty — Energy Economics (ScienceDirect)
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