WASHINGTON (AP) — In a significant move, U.S. Energy Secretary Chris Wright directed Texas-based Sable Offshore Corp. on Friday to restore operations in waters off the southern coast of California, which were impacted by a major oil spill in 2015. This action was taken under the Defense Production Act, aiming to mitigate risks related to energy supply disruptions.
The restoration encompasses the Santa Ynez unit and pipeline, which consists of three rigs operating in federal waters, alongside significant offshore and onshore pipeline networks, including the Las Flores Canyon Processing Facility. The facility has the capacity to produce approximately 50,000 barrels of oil per day, potentially replacing almost 1.5 million barrels of foreign crude oil monthly.
Secretary Wright commented on the administration's commitment to prioritize American energy security, criticizing certain state leaders for policies that he claims jeopardize both local residents and national security. Today's order will strengthen America’s oil supply and restore a pipeline system vital to our national security and defense, ensuring that West Coast military installations have the reliable energy critical to military readiness, he stated.
Contrarily, California Governor Gavin Newsom expressed strong opposition to this directive. He labeled the order as an illegal attempt to restart a pipeline whose operators are currently facing criminal charges and are under court injunctions prohibiting such actions. He emphasized that California would not permit the federal government to compromise environmental and economic standards in pursuit of federal energy goals.
California's ongoing legal battle with the federal authorities highlights the complexities and tensions around energy regulation in the state, with Newsom reaffirming that the state's regulatory powers over its resources cannot be overridden by federal decisions. The state's Attorney General, Rob Bonta, had earlier stated that the arrangement between the federal government and Sable violates California’s regulatory authority over coastal pipelines.
