U.S. Secretary of Energy Chris Wright directed Sable Offshore Corp. on Mar. 13 to restore operations at the Santa Ynez Unit and Santa Ynez Pipeline System, citing risks to energy supply caused by California policies that have increased reliance on foreign oil for the region and U.S. military forces.
The Department of Energy said this action is intended to address national security concerns and ensure reliable energy for West Coast military installations. The directive was issued under authorities provided by the Defense Production Act and through an executive order amended by President Trump.
“The Trump Administration remains committed to putting all Americans and their energy security first,” 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. 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 has the capacity to produce about 50,000 barrels of oil per day, which would increase California’s in-state production by 15 percent and could replace nearly 1.5 million barrels of foreign crude each month. Over recent decades, California’s domestic oil output has declined due to state policies targeting traditional energy sources, while demand remains high; currently more than 60 percent of oil refined in California is imported from overseas, much of it passing through the Strait of Hormuz—a route considered vulnerable from a national security perspective.
California is largely disconnected from interstate crude pipelines used elsewhere in the country, making it more dependent on foreign imports. The Department of Energy said prioritizing pipeline transportation capacity will help move offshore-produced crude through the Las Flores Pipeline System into interstate pipelines for more efficient delivery to domestic refineries.
Restoring operations at Sable Offshore is expected to create hundreds of new jobs in Santa Barbara County in addition to its current workforce of over 100 employees and approximately 400 contractors.
Recent initiatives by the Department of Energy include a $225 million program funded by President Biden’s Bipartisan Infrastructure Law aimed at implementing updated building energy codes according to an announcement. In July 2022, Secretary Jennifer Granholm encouraged international cooperation on clean energy transitions during a video message ahead of the Global Clean Energy Action Forum as shown in a DOE video. Technology development efforts supporting environmental management missions were highlighted before Congress by DOE officials according to testimony.
Other DOE projects include using innovative passive processes such as crushed marble for groundwater remediation at former coal-fired power plant sites as reported by DOE Office of Environmental Management, as well as a $96 million funding opportunity announced in July 2022 for advancing clean vehicle technologies according to DOE. Additionally, there are now over 140 programs supporting President Biden’s Justice40 Initiative designed so that federal agencies deliver significant investments in clean energy and resilience projects to disadvantaged communities according to DOE.
The restoration order reflects ongoing debates about balancing local policy decisions with broader national interests related to energy independence and security.
