Trump turns to California offshore oil to help with Iran war

"The use of the Defense Production Act would preempt state laws and speed permitting for Sable Offshore Corp., a Houston company that has sought to restart production from California offshore platforms. The Santa Ynez Unit consists of three offshore oil platforms that produce crude oil and natural gas off the coast of Santa Barbara, along with an onshore processing facility."

"Sable has estimated it could quickly pump 45,000 to 55,000 barrels per day of crude once restarted, with production climbing as high as 60,000 barrels per day by the end of the decade. That's a tiny fraction of the estimated 20 million barrels a day currently affected by closure of the Strait of Hormuz."

"If Trump thinks he can override California law and an existing federal court order with the stroke of his pen, we look forward to hearing what that federal court he's defying has to say. The company faces a criminal prosecution by a local district attorney, a federal securities inquiry, two court injunctions and findings by county officials of a pattern of noncompliance."

The Trump administration is using the Defense Production Act to override California state laws and expedite permitting for Sable Offshore Corp. to restart production from the Santa Ynez offshore oil complex off Santa Barbara. Sable acquired these assets from ExxonMobil in February 2024 and aims to produce 45,000 to 55,000 barrels daily, potentially reaching 60,000 by decade's end. California regulators have objected to the restart plans. Governor Newsom's office characterizes the move as a political stunt contributing only 0.05% to crude oil production without lowering prices. Sable faces criminal prosecution, federal securities inquiry, court injunctions, and county findings of noncompliance. Environmental groups oppose the pipeline restart due to a 2015 rupture causing a 100,000-gallon spill.

Read at Axios