Trump Clears Path For Sable To Restart California Operations Amid Ongoing Iran War

• Sable's onshore pipelines have been shut down for a decade since the 2015 Refugio Beach oil spill.
• California Attorney General Rob Bonta had filed a lawsuit against the Trump Administration in January, challenging the PHMSA orders that“illegally assert” exclusive jurisdiction over two California onshore oil pipelines of Sable offshore.

Sable Offshore shares rallied nearly 10% on Friday after White House invoked Defense Production Act aimed at bypassing California state regulations to allow oil production off the state coast in bid to ease global oil supply pressures created due to the ongoing Iran war. 

“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”, Energy Secretary Chris Wright reportedly said. It was followed by an executive order by Donald Trump adjusting certain delegations under the U.S. Defense Production Act. 

Energy Secretary Chris Wright directed Sable Offshore Corp. to begin restoring operations for the Santa Ynez Unit and Santa Ynez Pipeline System in California, Bloomberg News report said.

Sable-California 

Sable's onshore pipelines have been shut down for a decade since the 2015 Refugio Beach oil spill, when a corroded segment of one pipeline ruptured and released hundreds of thousands of gallons of oil near Santa Barbara.

California Attorney General Rob Bonta in January had filed a lawsuit against the Trump Administration, challenging the Pipeline and Hazardous Materials Safety Administration's (PHMSA) orders that“illegally assert” exclusive jurisdiction over two California onshore oil pipelines of Sable offshore which are known as the Las Flores Pipelines or lines CA-324 and CA-325, and allow them to restart operations. 

Iran's War Hitting Oil Supplies

The efforts come at a time when the U.S.-Israel war with Iran has disrupted global supply of oil and other key energy products due to the blockade of Strait of Hormuz by Iran.

The International Energy Agency this week announced it will release 400 million barrels of oil from their emergency reserves to help address disruptions in oil markets caused by the war in the Middle East. 

Retail sentiment around SOC trended in 'extremely bullish' territory amid 'extremely high' message volume. 

Shares in SOC have jumped 72% so far in 2026.

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