Energy Secretary Orders California Oil Firm to Resume Operations

Citing national security concerns, the move aims to address supply disruptions and foreign oil dependence.

Mar. 15, 2026 at 2:21pm

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Energy Secretary Chris Wright has directed the Texas-based oil company Sable Offshore Corp. to restore operations in waters off the coast of southern California. Wright invoked the Defense Production Act, stating that the shutdown of Sable's Santa Ynez Unit and Pipeline System near Santa Barbara has left the region and U.S. military forces dependent on foreign oil, posing supply disruption risks.

Why it matters

The order comes as oil prices have skyrocketed to over $98 per barrel, the highest level since the 2022 price surge after Russia's invasion of Ukraine. The move is intended to bolster domestic energy production and reduce reliance on foreign oil sources, which is seen as a national security priority.

The details

Sable Offshore Corp., a Texas-based oil company, was directed by Energy Secretary Chris Wright to resume operations at its Santa Ynez Unit and Pipeline System near Santa Barbara, California. Wright cited the Defense Production Act, stating that the shutdown of these facilities has left the region and U.S. military forces dependent on foreign oil, creating supply disruption risks.

  • Oil prices reached over $98 per barrel on March 15, 2026, the highest level since the 2022 price surge.
  • On March 13, 2026, Energy Secretary Chris Wright issued the directive to Sable Offshore Corp.

The players

Chris Wright

The Energy Secretary who directed Sable Offshore Corp. to resume operations in California, citing national security concerns.

Sable Offshore Corp.

A Texas-based oil company that operates the Santa Ynez Unit and Pipeline System off the coast of southern California.

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What they’re saying

“The shutdown of Sable's Santa Ynez Unit and Pipeline System near Santa Barbara has left the region and U.S. military forces dependent on foreign oil, posing supply disruption risks.”

— Chris Wright, Energy Secretary

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This order highlights the Biden administration's focus on bolstering domestic energy production and reducing reliance on foreign oil sources, which is seen as a national security priority amid rising global energy prices.