Sable Offshore Resumes Oil Transport After Trump Administration Emergency Order — Update
By Nicholas G. Miller
Sable Offshore resumed the transportation of oil through the Santa Ynez pipeline system off the California coast, following a Defense Production Act emergency directive from the Trump Administration.
Shares were recently up 7.0% at $18.00 in premarket trading.
Last week's directive from the federal government intended to ease permitting for Sable, which has been battling with California regulators to reopen the Santa Ynez pipelines. The order, which relied upon the Cold War-era Defense Production Act, directed Sable to prioritize and allocate pipeline-transportation services to pump oil through the system.
It came as the Trump administration attempts to bring down oil prices that have surged due to the conflict in the Middle East.
Energy Secretary Chris Wright said the resumption of Sable's operations off the California coast would reduce the state's reliance on foreign oil.
California Governor Gavin Newsom criticized the Energy Department's order, saying it would put California's coastal communities and environment at risk, while providing no tangible impact on gas prices. Newsom said California would take legal action to challenge the administration's emergency directive.
Sable said it began shipping oil soon after the directive was issued. It plans to begin its first sales by April 1 at a rate of 50,000 barrels a day.
The company said it is pursuing all financing options, including federal credit support. It also plans to refinance its senior secured term loan, use its commodity-hedging program and evaluate shareholder returns shortly after beginning first sales.
The pipeline system has been shut down since an oil spill in 2015 released over 100,000 gallons of oil near Santa Barbara.
Write to Nicholas G. Miller at nicholas.miller@wsj.com.
(END) Dow Jones Newswires
March 16, 2026 08:38 ET (12:38 GMT)
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