U.S. Secretary of Energy Chris Wright announced on Mar. 13 that Sable Offshore Corp. has been directed to restore operations at the Santa Ynez Unit and Santa Ynez Pipeline System, citing concerns about supply disruptions caused by California policies that have increased reliance on foreign oil for the region and U.S. military forces.
The directive is intended to address risks to national security and energy supply, as California's dependence on overseas oil has grown while domestic production has declined. 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 expected to produce about 50,000 barrels of oil per day, which would increase California’s in-state oil production by 15 percent and could replace nearly 1.5 million barrels of foreign crude each month. The action also prioritizes pipeline transportation capacity so that crude produced offshore can move more efficiently through the Las Flores Pipeline System into interstate pipelines.
California previously supplied almost 40 percent of U.S. oil production but now imports over 60 percent of its refined oil from overseas sources, much of it passing through the Strait of Hormuz—a route considered vulnerable from a national security perspective—according to information provided in the announcement.
Restoring operations at Sable Offshore is projected to create hundreds of new jobs in Santa Barbara County and generate millions in local economic activity.
In related Department of Energy activities, a $225 million program was launched for building energy code implementation funded by President Biden’s Bipartisan Infrastructure Law according to the Department of Energy. Additionally, Secretary Jennifer Granholm encouraged international cooperation on clean energy transitions during a video message ahead of the Global Clean Energy Action Forum as seen here. Technology development at national laboratories was highlighted as important for environmental cleanup missions before Congress according to testimony. Innovative passive energy processes are being used at Savannah River Site for groundwater remediation as reported by DOE Office of Environmental Management. The Department also announced $96 million in funding opportunities aimed at decarbonizing transportation through electric vehicle infrastructure and cleaner engines according to DOE, as well as support for 146 programs under President Biden’s Justice40 Initiative targeting investments in disadvantaged communities as detailed by DOE.
