Trump Admin Invokes Defense Production Act to Restart California Oil Operations

Energy Secretary orders oil company to resume production at offshore facilities to boost domestic supply and national security.

Mar. 15, 2026 at 1:08pm

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The Trump administration has invoked the Defense Production Act to direct Sable Offshore Corp., a Houston-based oil and gas company, to restart shuttered offshore operations in California. The move is aimed at addressing oil supply disruption risks and reducing reliance on foreign crude imports. The order prioritizes restarting oil production and pipeline capacity to transport crude from offshore facilities to inland refineries.

Why it matters

California was once a major oil-producing state, but declining domestic output and increased reliance on foreign imports have raised national security concerns. The administration argues the restart will boost domestic supply, support military readiness, and reduce vulnerability to global oil market disruptions.

The details

The Department of Energy order directs Sable to restore operations at the Santa Ynez Unit and Santa Ynez Pipeline System off the coast of Santa Barbara. The facilities can produce around 50,000 barrels of oil per day, a 15% increase in California's in-state output that could replace 1.5 million barrels of foreign crude monthly. However, California's governor has condemned the move as 'reckless and illegal', citing environmental risks and a history of oil spills in the region.

  • The Defense Production Act order was issued on Friday, March 15, 2026.

The players

Chris Wright

Energy Secretary who directed Sable Offshore Corp. to restart operations.

Sable Offshore Corp.

A Houston-based oil and gas company that operates offshore facilities in California.

Gavin Newsom

The Governor of California who condemned the Trump administration's use of the Defense Production Act as 'reckless and illegal'.

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What they’re saying

“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, Energy Secretary

“California will not stand by while the Trump administration attempts to sacrifice our coastal communities, our environment, and our $51 billion coastal economy.”

— Gavin Newsom, Governor of California

What’s next

California has pledged to fight the directive in court, setting up a legal battle over the administration's use of the Defense Production Act.

The takeaway

This order highlights the ongoing tensions between the federal government and California over energy policy, with the Trump administration seeking to boost domestic oil production while the state prioritizes environmental protection. The outcome could have significant implications for the nation's energy security and California's coastal economy.