This little-known energy company’s stock is rallying as Trump invokes 1950 powers for offshore California drilling

by Marcus Liu - Business Editor
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Trump Administration Revives California Offshore Oil Drilling Amidst Iran Tensions

President Donald Trump issued an executive order on Friday, March 13, 2026, authorizing the Secretary of the Energy Department to approve Sable Offshore’s plan to restart oil production at the Santa Ynez Unit off the coast of Gaviota, California. The move comes despite ongoing safety concerns regarding the pipeline that caused the 2015 Refugio Oil Spill and opposition from California’s Office of the State Fire Marshal. The administration cites national security interests and the demand to bolster oil supplies amid escalating global market turmoil linked to the conflict with Iran as justification for the decision.

National Security Concerns Drive Decision

The Trump administration is invoking the 1950 Defense Production Act, granting the president broad authority to allocate economic resources in the name of national security. According to the administration, restarting the Santa Ynez Unit is crucial to ensuring adequate fuel supplies for military bases in California. Bloomberg reports that this action is part of a larger effort to override state authority and facilitate Sable’s offshore oil operations.

Pipeline Safety Concerns Remain

The restart of the Santa Ynez Unit has faced significant opposition due to safety concerns surrounding the pipeline. The 2015 Refugio Oil Spill, which released thousands of barrels of crude oil into the Pacific Ocean, prompted the shutdown of the platform. The state’s Office of the State Fire Marshal has continued to raise concerns about the pipeline’s safety. However, the federal Pipeline and Hazardous Materials Safety Administration recently asserted its jurisdictional control over the pipeline restart, preempting state oversight. CalMatters details this jurisdictional shift.

Environmental Groups Criticize the Move

Environmental groups have strongly criticized the Trump administration’s decision, dismissing Sable’s claims about the necessity of the restart for military fuel supplies as “fearmongering and exaggeration.” National Today reports on this opposition, highlighting concerns about the potential environmental impact of resuming oil production.

Sable Offshore’s Position

Sable Offshore maintains that restarting operations is essential to maintain fuel supplies. Reuters confirms that the administration directed Sable Offshore to restore oil drilling operations off the southern California coast.

Looking Ahead

With the executive order in place, the Secretary of Energy now has the authority to approve Sable’s project without further presidential consultation. The resumption of oil production at the Santa Ynez Unit is expected to face continued legal and political challenges from environmental groups and potentially the state of California, setting the stage for a protracted battle over the future of offshore drilling in the region.

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