The Trump administration is using the Defense Production Act to restart California oil production

The Trump administration has invoked the Defense Production Act to order the oil company to restart closed offshore operations in California, saying the move is necessary to address the risks of oil supply disruptions and reduce dependence on foreign crude.

Energy Secretary Chris Wright on Friday ordered Sable Offshore Corp., an oil and gas company headquartered in Houston, to restore operations at the Santa Ynez Unit and the Santa Ynez Pipeline System off the coast of Santa Barbara, according to a statement from the Department of Energy (DOE).

The order prioritized the resumption of oil production and capacity to move crude oil through the Las Flores Pipeline System to Pentland Station, the main inland hub for transporting offshore oil to refineries, and inland pipelines.

“California once provided nearly 40 percent of US oil production, but decades of strict state policies aimed at reliable energy sources have caused domestic production to decline while the nation’s demand for gasoline remains high,” the DOE said. “Today, more than 60 percent of California’s refined oil comes from offshore, and much of it goes through the Strait of Hormuz—presenting major national security threats.”

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The agency said the Sable field could produce about 50,000 barrels of oil per day, which is about a 15% increase in oil production in California, and could replace about 1.5 million barrels of crude oil every month.

“Today’s order will strengthen America’s oil supply and restore a pipeline system critical to our nation’s security and defense, ensuring that military installations on the West Coast have the reliable capabilities critical to military readiness,” Wright said in a statement.

The order, issued under the authority delegated by the Defense Production Act and related executive orders, also seeks to ensure that oil produced off the coast of California can more effectively reach domestic refineries.

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A satellite view of the Santa Barbara offshore oil platforms, including the Carpinteria Offshore Oil Field, Rincon Oil Field and Rincon Island, a drilling site built in 1958, seen in the Santa Barbara Channel on Jan. 20, 2025. (Gallo Images/Orbital Horizon/Copernicus Sentinel Data 2025 via Getty Images / Getty Images)

California Gov. Gavin Newsom criticized the order on Friday, calling Trump’s use of the Defense Production Act “reckless and illegal” and vowing to fight the order.

His office said restarting the Sable Offshore pipeline would have little impact on global oil prices, citing estimates that its production would represent about 0.05% of total oil production.

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Oil rigs stand off the coast of Santa Barbara, California, on Jan. 15, 2024. (Eric Thayer/Bloomberg via Getty Images/Getty Images)

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The governor also pointed to the pipeline’s history, noting that a 2015 spill near Refugio State Beach released more than 140,000 gallons of crude oil and caused widespread environmental and economic damage along the Santa Barbara coast.

“California will not stand by while the Trump administration tries to sacrifice our coastal communities, our environment and our $51 billion coastal economy,” Newsom said in a statement. “The Trump administration and Sable are defying multiple court orders, and we’re going to see them back in court.”