Late in the evening on Friday, March 16, the Trump administration issued an executive order authorizing the resumption of offshore oil production in Santa Barbara. This move invoked the Defense Production Act, passed in 1950 for the purpose of national emergencies.
This move comes at a time when the war in Iran has caused oil prices to spike nearly 80 cents per gallon across the nation, a consequence that could drive up costs, increase unemployment and slow economic growth.
California officials, including Governor Gavin Newsom and the California Department of Parks and Recreation, have reacted strongly to the federal command.
In a statement issued later on March 16, Newsom stated, “Donald Trump started a war, admitted it would spike gas prices nationwide and told Americans it was a small price to pay … Now he’s using this crisis of his own making to attempt what he’s wanted to do for years: open California’s coast for his oil industry friends.”
While the LA Times shared how “Sable and the Trump administration argue the restart is essential for national security and will boost California’s domestic oil supply by approximately 17 percent,” the exact amount of benefit is unclear at the moment, as state officials claim that the production would actually amount to less than one percent of global crude oil production.
Further inflaming the situation is the Santa Barbara pipeline’s dark legacy: a 2015 oil leakage that went down as one of California’s worst oil spills. More than 100,000 gallons of oil had spilled onshore of Refugio State Beach, the aftermath of which killed not only the wildlife and damaged the ecosystem, but also affected the seaside community’s businesses and fisheries.
Sable Offshore Corp., a Texas-based oil and gas company, bought the damaged pipeline system from ExxonMobil in 2024, but hopes of production were halted when California regulators held back from giving the appropriate permits allowing them to resume operations.
Trump’s recent executive order gave Sable an opportunity. On March 16, the company sued the California parks department, “asking a judge to declare that the federal orders overrode any state requirements for further environmental testing or review,” according to the New York Times.
The state department responded by demanding that Sable immediately remove the pipeline, which crosses through a state park, or else be met with legal action.
At present, Sable stated that they plan to begin sales by April 1, 2026, despite the threats from state officials and agencies.
