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El Segundo Today
By the People, for the People
Chevron to Buy Oil Drilled Off Santa Barbara Coast
Oil giant plans to purchase 20,000 barrels per day from Sable Offshore platforms
Mar. 26, 2026 at 11:47pm
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Chevron has announced plans to purchase oil drilled off the coast of Santa Barbara from Sable Offshore, after the company threatened to close its California refineries due to overregulation. The move comes after President Trump directed Sable Offshore to resume oil production in the area under the Defense Production Act, sparking a battle with California regulators.
Why it matters
This deal highlights the ongoing tensions between the oil industry, the state of California, and the federal government over oil production and regulations. It also raises questions about California's reliance on imported oil and the potential impact on gas prices.
The details
Chevron plans to initially purchase 20,000 barrels of oil per day from Sable Offshore's platforms off the Santa Barbara coast, which it will then process at its El Segundo refinery. Sable Offshore has been unable to produce oil due to disagreements with California regulators over permitting its Santa Ynez pipeline, which is needed to transport the crude. President Trump's use of the Defense Production Act to order Sable Offshore to resume production has further escalated the conflict.
- In March 2026, Chevron announced plans to purchase oil from Sable Offshore.
- Earlier in March 2026, President Trump directed Sable Offshore to resume oil production off the Santa Barbara coast under the Defense Production Act.
The players
Chevron
An American oil and gas company that is one of the largest energy corporations in the world.
Sable Offshore
An oil and gas company that operates platforms off the coast of Santa Barbara, California.
Gavin Newsom
The Governor of California, who has condemned President Trump's orders to restart the Sable Offshore pipeline.
Donald Trump
The former President of the United States, who directed Sable Offshore to resume oil production under the Defense Production Act.
What’s next
The judge in the case will decide on Tuesday whether or not to allow Sable Offshore to restart its Santa Ynez pipeline, which is needed to transport the crude oil from the offshore platforms to a refinery.
The takeaway
This deal highlights the ongoing tensions between the oil industry, the state of California, and the federal government over oil production and regulations. It also raises questions about California's reliance on imported oil and the potential impact on gas prices, as well as the broader implications of the president's use of the Defense Production Act to intervene in state-level energy disputes.
