Democrat Lawmakers Probe Sable Campaign to Restart Santa Ynez Oil Flows

A group of Democrat members of congress from California has launched an inquiry into Sable Offshore Corp's "politicized efforts" to resume production at its Santa Ynez Unit (SYU) project in the state.

In a letter to Sable chief executive and chair Jim Flores, the lawmakers alleged the Houston, Texas-based company had pushed for the invocation of presidential emergency powers to get the production facility and the associated pipeline system reactivated.

Sable said March 30 it had restarted oil sales from the offshore SYU. That was after the company obtained an order from Energy Secretary Chris Wright to restart SYU and the pipeline system.

In issuing the order March 13 the Energy Department cited energy security risks amid the disruption of oil shipping via the Strait of Hormuz. The Trump administration, however, had already expressed support for SYU's restart before the Iran war, amid Sable's regulatory disputes with authorities in California and the county of Santa Barbara.

SYU, then owned by Plains Pipeline LP, stopped production 2015 after an oil spill that according to the California Coastal Commission released 123,000 gallons of oil and caused environmental damage to 150 miles of coastline. Exxon Mobil Corp acquired the assets 2022 and sold them to Sable 2024.

Under Donald Trump's second nonconsecutive term as president, Sable has so far restarted two of SYU's three production platforms, Harmony and Heritage. It expects the third, Hondo, to restart June.

"The administration’s reliance on the Defense Production Act - no doubt in consultation and coordination with lawyers representing Sable - is a serious misuse of a federal law meant to be invoked for national security reasons, not to enrich an industry already making record profits", the group of representatives and senators told Flores.

"To help Congress better understand this effort to circumvent California law and coastal protections, we seek detailed information on the company’s role in this decision, and your communications with the Trump administration in relation to Sable Offshore’s SYU project", stated the letter, shared online by Rep Salud Carbajal, one of the signatories.

The Trump administration showed it was "willing to circumvent state laws to benefit industry partners and preferred energy sources, and you appear to be a willing partner in its efforts", the letter told Flores.   

Pointing to electoral campaign donations by Sable executives, the letter went on to argue the Trump administration's support for the restart indicated "a fulfillment of that 'pay to play' promise".

"We urge you to pause and consider the long-term legal and financial ramifications of collaborating with the Trump administration to circumvent California law", the letter warned the Sable leader. "We also advise you that we will continue our oversight and investigative efforts in the next Congress.

"We look forward to your response and acknowledgement of compliance with this preservation request by June 10, 2026".

The other signatories in the letter were Senators Alex Padilla and Adam Schiff, as well as Reps Julia Brownley, John Garamendi, Jared Huffman, Mike Levin, Dave Min, Jimmy Panetta, Nancy Pelosi and Mike Thompson.

Sable and the White House have yet to reply to Rigzone's requests for comment on the issues raised in the probe.

DOE had said its restart order sought to "address supply disruption risks caused by California policies that have left the region and U.S. military forces dependent on foreign oil".

"Sable's facility can produce approximately 50,000 barrels of oil per day, a 15 percent increase to California's in-state oil production that can replace nearly 1.5 million barrels of foreign crude each month", it said.

"Today, more than 60 percent of the oil refined in California comes from overseas, with a significant share traveling through the Strait of Hormuz - presenting serious national security threats", DOE claimed.

"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".

In response, the state sued Wright and his department on March 30, challenging the order's legality.

To contact the author, email jov.onsat@rigzone.com