US rubber-stamps oil transportation restart from asset offshore California

March 16, 2026, by Melisa Cavcic

Sable Offshore, a Texas-headquartered oil and gas company, has been given the thumbs-up to resume oil flow from its Santa Ynez Unit (SYU) and pipeline system off the coast of California to address supply disruption risks.

Harmony platform; Source: Sable Offshore

Chris Wright, U.S. Secretary of Energy, directed Sable Offshore to restore operations of the Santa Ynez Unit and Santa Ynez Pipeline System (SYPS) on March 13, 2026, to respond to potential supply disruption, said to be caused by California’s policies that have left the region and U.S. military forces dependent on foreign oil.

Secretary Wright highlighted: “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.”

In light of this, the Texas-based firm resumed the transportation of hydrocarbons (oil) produced at the Santa Ynez Unit on March 14, 2026, through the federally regulated and approved to operate Santa Ynez Pipeline System from Las Flores Canyon (LFC) to Pentland Station at the direction of Secretary Wright.

Sable’s facility can produce approximately 50,000 barrels of oil per day, a 15% increase in California’s in-state oil production, which can replace nearly 1.5 million barrels of foreign crude each month. The country once supplied nearly 40% of U.S. oil production.

The U.S. Department of Energy (DOE) explains that more than 60% of the oil refined in the Golden State comes from overseas, with a significant share traveling through the Strait of Hormuz, deemed to present serious national security threats.

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DOE underscored: “Unlike other regions of the country, California remains largely disconnected from interstate crude pipelines that move American oil to refineries across the United States.

“The action also prioritizes pipeline transportation capacity to ensure crude produced offshore California moves through the Las Flores Pipeline System to Pentland Station and into interstate pipelines, allowing American energy to reach domestic refineries more efficiently, while reducing California’s reliance on foreign oil vulnerable to geopolitical disruption.”

As Sable Offshore currently employs more than 100 workers and approximately 400 contractors in Santa Barbara County, restoring operations is anticipated to create hundreds of additional American energy jobs, while generating millions in local economic activity.

All federally produced barrels from the SYU now need to flow through the SYPS, up to the existing pipeline capacity of 200,000 barrels per day (b/d). Sable completed its onshore anomaly repair program and hydrotested all segments of the SYPS consistent with applicable requirements as of May 2025.

Before resuming hydrocarbon transportation from LFC to the firm’s sales point at Pentland Station, the company had approximately 540,000 barrels of processed crude oil in storage at LFC, representing more than the line fill volume for the SYPS between LFC and Pentland Station.

Sable is currently producing hydrocarbons from its Harmony platform at the SYU, with wells continuing to perform as expected. The production ramp-up is anticipated to proceed with full production resumption at the Harmony and Heritage platforms this month, followed by the Hondo platform in June 2026.

The U.S. player plans to begin first sales by April 1, 2026, at an expected gross oil rate of 50,000 barrels per day. Sable and Pacific Pipeline Company (PPC) sued California Department of Parks and Recreation (State Parks) on March 13, 2026, in the United States District Court for the Central District of California.

The lawsuit requests declaratory relief to confirm Sable and PPC’s rights and their ability to fulfill their obligations under the DPA order. The following day, State Parks sent a letter to the Texas-based player contesting the firm’s rights under the DPA order.

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While the Santa Ynez Unit restarted production in May 2025, Sable has not sold commercial quantities of hydrocarbons since the acquisition of the asset, which was shut in during June 2015, when the only onshore pipeline transporting hydrocarbons produced from the Santa Ynez Unit to market ceased transportation.

The company, which is pursuing all financing options, including federal credit support, plans to refinance its senior secured term loan, deploy its commodity hedging program, and evaluate shareholder return options shortly after starting its first sales.

Jim Flores, Sable’s Chairman and Chief Executive Officer, remarked: “Sable Offshore is putting California consumers first by increasing domestic supply of crude oil into the California market by approximately 17% and we look forward to continuing to execute as so ordered by the Defense Production Act executed on March 13, 2026.

“We look forward to working closely with the Department of Energy in fully complying with the DPA and working with the Trump administration to take all necessary steps to deliver the energy necessary for the security and defense of the country.”

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