Energy Secretary invokes Defense Production Act to restart Sable Offshore Santa Ynez operations, drawing sharp rebuke from Newsom
U.S. Energy Secretary Chris Wright invoked the Defense Production Act on March 13, 2026, ordering Sable Offshore Corp. to restart the Santa Ynez unit off Southern California—sparking legal fights and strong rebuke from Governor Gavin Newsom.
Key takeaways
- DPA order: Secretary Wright directed Texas-based Sable Offshore Corp. to restore the Santa Ynez unit, including three rigs, pipelines and the Las Flores Canyon Processing Facility.
- Production impact: Las Flores can produce about 50,000 barrels per day, which officials say could replace nearly 1.5 million barrels of foreign crude per month.
- Political clash: Gov. Gavin Newsom called the order unlawful and pledged legal action, citing criminal charges and court orders still in place.
- National security rationale: The Energy Department tied the move to military readiness and West Coast fuel security amid the administration’s push to expand U.S. energy production.
Main content
Key information
What happened: Energy Secretary Chris Wright used the Defense Production Act (DPA) to order Sable Offshore Corp. to restore the Santa Ynez unit — a system that includes three offshore rigs, onshore and offshore pipelines, and the Las Flores Canyon Processing Facility. Department statements and coverage are available from the U.S. Energy Department news release and related Fortune coverage.
Capacity and supply: Officials say the Las Flores facility can produce about 50,000 barrels of oil per day, and restarting the system could replace roughly 1.5 million barrels of foreign crude per month, helping to secure fuel for West Coast military installations (Energy Department release; Fortune).
Political reaction: Governor Gavin Newsom denounced the order as an unlawful attempt to restart operations while operators face criminal charges and remain subject to court orders; he pledged state litigation to protect California’s coast and economy.
What the DPA order says and who it affects
The Energy Department directive, issued March 13, instructs Sable Offshore Corp., a Texas-based oil and gas company, to restore the Santa Ynez unit and associated pipeline infrastructure in federal waters off Santa Barbara. The order specifically targets three rigs, offshore and onshore pipelines, and the Las Flores Canyon Processing Facility. Officials say the facility’s restart could add roughly 50,000 barrels of oil per day to West Coast supply lines and replace nearly 1.5 million barrels of foreign crude each month, easing concerns about fuel access for civilian and military customers (reporting and department statements; Fortune).
The Energy Secretary’s rationale
Secretary Chris Wright framed the order as necessary for America’s energy security, arguing some state leaders were not prioritizing national needs. Wright tied the move to military readiness, saying West Coast installations require reliable energy for operations. His tenure has emphasized expanding fossil-fuel production and reversing what he characterizes as regulatory constraints; his first Secretarial Order in February 2025 pushed for “American energy dominance” (Energy Department statement).
Legal and political pushback from California
Newsom’s response: Gov. Gavin Newsom called the order “an attempt to illegally restart a pipeline whose operators are facing criminal charges and prohibited by multiple court orders from restarting.” He announced plans to sue to block the DPA directive, asserting that federal action conflicts with state law, court rulings and ongoing legal processes.
“California will go to court to protect our coast, our communities and our economy,” Newsom said, placing the coastal economy value at about $51 billion.
Federal officials counter that the administration’s policy changes — including an executive order reversing previous offshore-leasing limits and a court decision invalidating a Biden-era withdrawal of 625 million acres from oil development — support federal authority for broader energy actions (reporting and background).
Environmental and safety concerns
The Santa Ynez platforms were idled after a 2015 oil spill that raised significant concerns about pipeline integrity and ecological harm. Environmental groups and independent analysts warn that reactivating offshore infrastructure risks spills and long-term damage to coastlines, fisheries and tourism. Critics argue the DPA cannot simply override court orders meant to protect public safety and the environment; public reporting has not fully detailed the criminal charges or the specific court orders Newsom cites, and those records will shape litigation outcomes (initial coverage; Fortune).
National security argument and military readiness
Department officials emphasize the action’s link to national security, saying West Coast military bases and ports need reliable fuel access and that restarting Santa Ynez would reduce dependency on foreign crude. Critics counter that alternative measures — such as tapping strategic reserves, diversifying suppliers, or investing in cleaner fuels — could mitigate supply risks without reactivating risky offshore operations. The debate underscores tension between short-term fuel security and longer-term environmental and legal considerations (official statements).
About Energy Secretary Chris Wright
Chris Wright was confirmed as Energy Secretary by the Senate in early 2025. He has pushed for expanded fossil-fuel production, sought to loosen climate-related regulations, and issued early orders to increase domestic oil and gas activity. Wright’s policy stance has been central to the administration’s efforts to prioritize energy production and reduce dependence on foreign suppliers (background: Chris Wright on Wikipedia; Energy Department).
Reporting gaps and next steps
Current reporting details the DPA order and immediate political responses, but does not fully lay out the legal record on alleged criminal charges or the exact court orders Newsom cites. Future coverage should review court dockets and company filings to clarify whether and how the DPA order can be implemented and on what timeline (available coverage; Fortune).
Implications for the Inland Empire, California
Economic impact: Restarting Santa Ynez could affect gas supply and prices across Southern California. The Inland Empire — a major trucking and logistics hub — could see ripple effects in fuel costs for commuters, fleets and businesses. Short-term restart work may create construction and maintenance jobs locally, but long-term permanent jobs tied directly to offshore production are likely limited.
Military and security effects: The Inland Empire hosts military installations such as March Air Reserve Base; federal officials say restoring domestic supply would support readiness, though military supply chains rely on multiple sources and contracts.
Environmental and public health: Increased crude movement by truck or rail through the region could raise emissions and public-health concerns in an area already challenged by air-quality issues. Local leaders may press for monitoring and safeguards if shipments rise.
Political and community response: The move will likely intensify debate in the Inland Empire as officials balance potential economic benefits against health and environmental risks. Legal challenges from California will influence local officials’ positions and public messaging.
Daily life: For commuters and small businesses, the most immediate effect would be on gas prices and delivery costs. A successful restart could stabilize pump prices; extended litigation or shutdowns could introduce volatility.
Sources and reporting
- Department statements and coverage of the DPA order
- Fortune reporting on the order, Newsom’s response, and background
- Energy Secretary Wright’s earlier policy statements
- Background on Chris Wright’s confirmation and public record
- Additional comments and related coverage, including Wright’s recent interviews
Note: Legal filings, court orders, and any official Sable Offshore statements were not fully available in initial reports. Future reporting should consult court dockets and company filings to confirm the legal status of operators and constraints on restarting the Santa Ynez unit.
