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Trump administration orders restart of California offshore oil operations

The order aims to boost domestic oil supply by restarting a system shut down since 2015, potentially increasing California’s production by 15%, officials said.

  • On Friday, Energy Secretary Chris Wright ordered Houston-based Sable Offshore Corp. to restart the Santa Ynez Unit and pipeline under the Defense Production Act, citing national security and energy supply needs.
  • President Donald Trump invoked the 1950 Defense Production Act to expand domestic energy supplies, arguing that foreign crude reliance amid the conflict with Iran threatens national security and West Coast military readiness.
  • The Santa Ynez system has been dormant since the 2015 Refugio spill released more than 100,000 gallons of crude oil, triggering court orders and regulatory restrictions that California officials argue the federal directive now overrides.
  • California Governor Gavin Newsom called the order an "attempt to illegally restart a pipeline whose operators are facing criminal charges" and pledged to sue, vowing to protect the state's $51 billion coastal economy.
  • Analysts expect the legal battle to reach the Supreme Court, while critics argue the project contributes just 0.05 percent to global crude output, raising questions about using the statute to override state environmental authority.
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US Energy secretary directs oil company to restore operations off California

U.S. Energy Secretary Chris Wright has directed a Texas-based oil and gas company to restore operations in waters off southern California that were damaged by a 2015 oil spill, invoking the Defense Production Act.

·United States
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Reuters broke the news in United Kingdom on Friday, March 13, 2026.
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