NEW ORLEANS – U.S. Energy Secretary Chris Wright has ordered a Texas oil company to restart a pipeline system off the coast of Southern California using the authority of the Defense Production Act, a rare use of the Cold War–era law in the energy sector.
The Defense Production Act allows the federal government to direct private companies to prioritize projects considered critical to national security or energy supply, giving Washington unusual authority to accelerate industrial activity that might otherwise face regulatory or legal delays.
“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,” Energy Secretary Chris Wright said in a Department of Energy statement.
But California Gov. Gavin Newsom opposes the order. “California will not stand by while the Trump administration attempts to sacrifice our coastal communities, our environment, and our $51 billion coastal economy,” he said.
Environmental groups also strongly oppose the decision to invoke the Defense Production Act, saying the action sets a precedent for the federal government to override state laws.
Pipeline Linked to 2015 Refugio Spill
The directive applies to a pipeline system operated by Sable Offshore Corp., which acquired the Santa Ynez Unit from ExxonMobil in 2024. The pipeline runs along the Santa Barbara coast and was previously owned by Plains All American Pipeline at the time of the 2015 spill.
The system has been largely idle since the 2015 Refugio oil spill when a corroded pipeline ruptured near Refugio State Beach. The spill released roughly 142,000 gallons of crude oil, contaminating miles of coastline, killing marine wildlife and shutting down offshore oil operations connected to the line.
Pointing to the pipeline’s role in the 2015 spill, Newsom said the restart attempt raises serious environmental and legal concerns.
"Donald Trump started a war, admitted it would spike gas prices nationwide, and told Americans it was a small price to pay. Now he’s using this crisis of his own making to attempt what he’s wanted to do for years: open California’s coast for his oil industry friends so they can poison our beaches. This wouldn’t lower prices by a cent," said Gov. Newsom. "This is an attempt to illegally restart a pipeline whose operators are facing criminal charges and prohibited by multiple court orders from restarting."
What the Federal Defense Production Act Order Does
Secretary Wright’s order requires the company to repair and restore the pipeline and associated offshore facilities so oil production can resume from several federal offshore leases in the Santa Barbara Channel.
Federal officials say restoring the system could return tens of thousands of barrels of oil per day to the market, potentially boosting California’s in-state production and reviving operations tied to offshore leases that have remained largely idle since the 2015 spill.
Normally, restarting an offshore oil pipeline like the one connected to the 2015 Refugio oil spill would require a chain of approvals involving multiple regulators. Invoking the DPA allows the federal government to intervene directly.
With the pipeline shut down, several offshore fields have remained largely idle, production in the region dropped significantly, and companies holding federal leases have been unable to move oil to market. Restarting the line could allow those offshore platforms to resume producing tens of thousands of barrels per day according to industry estimates.
State’s Rights and Environmental Protections
Environmental organizations argue the pipeline has a history of safety problems and say restarting offshore drilling off Santa Barbara could increase spill risks.
“Directing a private oil company to push its project through without safety checks and adherence to California laws that keep our coast safe is appalling and illegal,” said Talia Nimmer, an attorney at the Center for Biological Diversity. “We’re exploring all legal avenues. This dangerous action should be swiftly blocked by the courts.”
The group warns that the action could be applied in other states against their interests.
“Mandating a restart of these defective oil pipelines won’t curb high gas prices, but it will put coastal wildlife at huge risk of another oil spill. Overriding state law to let an oil company restart pipelines sets a radically dangerous precedent. It’s clear that no state is safe from Trump,” said Nimmer.
