Trump Orders Restart of Offshore Drilling in California, But No Relief for Gas Prices

Experts say lawsuits and regulatory hurdles will delay any impact on oil production and prices.

Mar. 16, 2026 at 12:27am

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Although President Donald Trump issued an executive order to resume offshore drilling in California, experts say it won't have any immediate effect on gas prices. The order directed the restart of the Santa Ynez offshore platforms and pipeline near Santa Barbara, which are controlled by Sable Offshore Corp. However, the company's previous attempts to resume operations were blocked due to lawsuits and environmental concerns after a major oil spill in 2015. Experts predict the new order will also face legal challenges, and it could take weeks or months for any additional oil production to reach the market and potentially lower prices.

Why it matters

California is heavily dependent on foreign oil imports, and the state's strict environmental regulations have made it difficult for domestic oil producers to increase output. The Trump administration's move is an attempt to boost domestic oil production, but experts say the regulatory and legal hurdles will prevent any short-term impact on gas prices that have been rising due to global supply disruptions.

The details

The Trump administration used emergency powers under the Defense Production Act to direct the restart of the Santa Ynez offshore platforms and pipeline near Santa Barbara, which are controlled by Sable Offshore Corp. However, the company previously was blocked from resuming operations after a major oil spill in 2015. Experts say the new order will likely face similar legal challenges from California's governor and environmental groups, delaying any potential increase in oil production. The administration also announced plans to tap into the strategic oil reserves, but experts say that move will only have a minor and temporary impact on prices.

  • On Friday, President Trump issued the executive order to resume offshore drilling in California.
  • Sable Offshore Corp. informed local fire officials of their intent to 'resume pumping operations within 24 hours' of the order.
  • The Trump administration also announced plans to release 172 million barrels from the strategic oil reserves starting next week.

The players

President Donald Trump

The President of the United States who issued the executive order to resume offshore drilling in California.

Sable Offshore Corp.

The company that controls the Santa Ynez offshore platforms and pipeline near Santa Barbara, which were ordered to resume operations.

Steve Borenstein

The faculty director of energy at UC Berkeley's Haas School of Business, who stated that resuming offshore drilling won't have any immediate effect on oil prices.

Gavin Newsom

The Governor of California who vowed to sue the Trump administration over the order to resume offshore drilling.

Peter Leidel

The founder of Yorktown Partners LLC, a private equity firm, who stated that the administration's plan to release oil from the strategic reserves likely won't result in much relief at the pumps.

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What they’re saying

“It's not going to have any effect on oil.”

— Steve Borenstein, Faculty Director of Energy, UC Berkeley Haas School of Business

“To get it back down, that we could stay at $3.50, you got to get lower than $83 oil prices.”

— Peter Leidel, Founder, Yorktown Partners LLC

“Oil is a global commodity, you know 100 million barrels a day might have a very minor impact for a few weeks, but I don't think that's truly going to be that consequential.”

— Peter Leidel, Founder, Yorktown Partners LLC

What’s next

The judge in any lawsuits filed by California against the Trump administration's order will decide whether to allow the offshore drilling to resume.

The takeaway

Despite the Trump administration's efforts to boost domestic oil production, the regulatory and legal hurdles in California will prevent any short-term relief for drivers facing high gas prices. The state's strict environmental policies and dependence on foreign oil imports make it difficult to quickly increase supply, underscoring the challenges in addressing the current energy crisis.