Trump orders restart of California offshore oil transport to support US military operations in Iran

Sable Offshore Corp. restarted operations at Santa Ynez Unit and Santa Ynez Pipeline System off southern California Mar. 14, a day after the US Energy Department (DOE) directed it to do so in response to a new executive order by President Donald Trump.

The order allows both the Energy Secretary and the Commerce Secretary to invoke the Defense Production Act (DPA) to take necessary actions to support US military operations in Iran.

Energy Secretary Chris Wright said he ordered the restart of the Sable Offshore infrastructure—halted after a 2015 oil spill—to ensure adequate oil supply to West Coast military installations.

“The Trump administration remains committed to putting all Americans and their energy security first,” Energy Secretary Wright said in a Mar. 13 release.

Sec. Wright blamed California’s energy policies for putting US national security at risk and said the order would “strengthen America’s oil supply and restore a pipeline system vital to our national security and defense.”

DOE estimated that more than 60% of the oil refined in California comes from overseas, with “a significant share” traveling through the Strait of Hormuz, “presenting serious national security threats.”

California challenges restart

California politicians and environmental groups condemned the move. “This is an attempt to illegally restart a pipeline whose operators are facing criminal charges and prohibited by multiple court orders from restarting,” California Governor Gavin Newsom said in a statement. “California will not stand by while the Trump administration attempts to sacrifice our coastal communities, our environment, and our $51 billion coastal economy. The Trump administration and Sable are defying multiple court orders, and we will see them back in court.”

In a statement, Sable Offshore said it “immediately complied with the federal DPA order” and began shipping oil from the Las Flores Canyon processing plant to Pentland Station.

After a decade of halted operations, Sable started work to bring the systems online last year following the federal government’s approval of its restart plans.

The Trump administration said that the DPA enables the president to preempt conflicting state laws and other barriers, potentially allowing Sable to accelerate the restart despite ongoing legal challenges. California filed a lawsuit in January contesting the federal government’s authority to approve the project and a judge ordered that operations not resume while the legal cases play out.

For its part, Sable and Pacific Pipeline Co. filed a lawsuit Mar. 13 in the US District Court for the Central District of California to confirm their rights and ability to fulfill their obligations under the DPA order.

The DPA states that all San Ynez Unit oil must flow through the 200,000-b/d San Ynez Pipeline System. Sable said it completed an anomaly repair program and hydrotested all segments of the pipeline in mid-2025.

Prior to resuming oil transport, Sable said it had about 540,000 bbl of processed crude oil in storage at Las Flores Canyon.

The company expects its three platforms in the Santa Barbara Channel to resume full production in the next few months, with its Harmony and Heritage platforms up in March and its Hondo platform hitting maximum output in June. First sales are expected by Apr. 1, at a rate of 50,000 b/d.

Sable said it was pursuing all financing options, including federal credit support.

“Sable Offshore is putting California consumers first by increasing domestic supply of crude oil into the California market by approximately 17%,” said Jim Flores, Sable’s chairman and chief executive officer.