The Trump administration invoked the Defense Production Act to order an oil company to restart operations in California. By directing Sable Offshore Corporation to restore its operations of the Santa Ynez Unit and Santa Ynez Pipeline System, potential supply disruptions due to California policies can be mitigated.
Such action was taken in alignment with President Trump’s order adjusting a 2012 defense policy, granting the Secretary of Energy authority to prepare resources. The Department of Energy explained that California once supplied nearly 40% of the nation’s oil production, although now more than 60% of the oil refined in the state comes from overseas. The reopening of Sable’s operations allows for the production of approximately 50,000 barrels of oil each day, replacing nearly 1.5 million barrels of foreign crude oil each month.
“The Trump Administration remains committed to putting all Americans and their energy security first,” Energy Secretary Chris Wright said. “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.” He added that the 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.”
California Governor Gavin Newsom (D) condemned the action, claiming that the Trump administration is attempting to “illegally restart a pipeline whose operators are facing criminal charges and prohibited by multiple court orders from restarting.”
“California will not stand by while the Trump administration attempts to sacrifice our coastal communities, our environment, and our $51 billion coastal economy,” said Newsom. “The Trump administration and Sable are defying multiple court orders, and we will see them back in court.”
Meanwhile, President Trump announced last week that Texas will be the site of the United States’ first new oil refinery in fifty years. He revealed the project in a statement on Truth Social, writing that “America First Refining is opening the FIRST new U.S. Oil Refinery in 50 YEARS in Brownsville, Texas.”
