Energy Secretary Invokes Defense Production Act to Restore California Oil Operations

California Governor Newsom condemns the move as an illegal attempt to restart a pipeline facing criminal charges and court orders.

Mar. 14, 2026 at 10:11pm

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U.S. Energy Secretary Chris Wright directed a Texas-based oil and gas company, Sable Offshore Corp., to restore operations in federal waters off the coast of southern California that were damaged by a 2015 oil spill. Wright invoked the Defense Production Act, citing the need to address supply disruption risks and strengthen America's oil supply. However, California Governor Gavin Newsom condemned the move, calling it an illegal attempt to restart a pipeline that is facing criminal charges and prohibited by multiple court orders.

Why it matters

This move by the federal government sets up a clash with the state of California over the control and regulation of offshore oil operations. It raises questions about the balance of power between federal and state authorities when it comes to energy and environmental issues, especially in light of the ongoing legal battles over the pipeline's operations.

The details

The Sable Offshore Corp. unit includes three rigs in federal waters, offshore and onshore pipelines, and the Las Flores Canyon Processing Facility, which can produce about 50,000 barrels of oil per day. The federal government claims this would replace nearly 1.5 million barrels of foreign crude each month, making it vital to national security and military readiness. However, California has sued the federal government for approving Sable's plans to restart the pipelines, arguing that the state oversees the pipelines and the federal government has no right to usurp its regulatory authority.

  • On the first day of his second term, President Donald Trump signed an executive order to reverse former President Joe Biden's ban on future offshore oil drilling on the East and West coasts.
  • In January, California sued the federal government for approving Houston-based Sable's plans to restart pipelines along the coast.

The players

Chris Wright

U.S. Energy Secretary who directed Sable Offshore Corp. to restore operations in federal waters off the coast of southern California.

Gavin Newsom

Governor of California who condemned the federal government's move as an illegal attempt to restart a pipeline facing criminal charges and court orders.

Sable Offshore Corp.

A Texas-based oil and gas company that operates the offshore unit and pipelines in southern California that were damaged by a 2015 oil spill.

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What they’re saying

“The Trump Administration remains committed to putting all Americans and their energy security first. Unfortunately, some state leaders have not adhered to those same principles, with potentially disastrous consequences not just for their residents, but also our 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.”

— Chris Wright, U.S. Energy Secretary

“This is an attempt to illegally restart a pipeline whose operators are facing criminal charges and prohibited by multiple court orders from restarting. California will not stand by while the Trump administration attempts to sacrifice our coastal communities, our environment, and our $51 billion coastal economy. The Trump administration and Sable are defying multiple court orders, and we will see them back in court.”

— Gavin Newsom, Governor of California

What’s next

The judge in the case will decide on Tuesday whether or not to allow Sable Offshore Corp. to resume operations despite the multiple court orders prohibiting them from doing so.

The takeaway

This clash between the federal government and the state of California highlights the ongoing tensions over the balance of power and regulatory authority when it comes to energy and environmental issues. It raises concerns about the potential for further legal battles and the impact on California's coastal communities and economy.