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Home » Stunning turnaround for California’s oil industry after Trump’s surprise executive order to help ease gas prices
Stunning turnaround for California’s oil industry after Trump’s surprise executive order to help ease gas prices
Politics

Stunning turnaround for California’s oil industry after Trump’s surprise executive order to help ease gas prices

News RoomBy News RoomMarch 14, 20264 ViewsNo Comments

Oil pumping operations are expected to begin imminently off the coast of California after President Trump issued an executive order Friday to resume oil drilling operations near Santa Barbara, The Post has learned.

Officials for Sable Offshore Corp. informed local fire officials of their intent to “resume pumping operations within 24 hours.”

The notification is a standard protocol for industrial activities involving hazardous materials pipelines.

“This coordination allows the department to maintain readiness for potential emergency response, including resource staging, personnel alerting, and collaboration with other agencies, in the event of any incident such as a leak, spill, or fire,” Fire Chief Garrett Huff said in a statement to The Post.

“The department’s role remains focused on first-response emergency services for incidents within Santa Barbara County.”

The Santa Barbara News-Press was first to report the resumption of oil pumping operations.

Trump’s order has enraged California Democrats while industry insiders and Republicans applauded the move. But questions remain on how soon will drivers could notice a drop in gas prices at the pump.

An industry source with direct knowledge about the Santa Ynez offshore platforms and pipeline near Santa Barbara, which are controlled by Sable, said the president’s order will have a significant impact on California’s oil supply .

“It would add about 10% to the state’s crude oil production,” the source said. “That’s a meaningful number for production.”

However, even if drilling resumes quickly, the impact on consumers may take longer to materialize.

“It will take time until it filters into actual products that people buy,” the source said. “It has to make it to the consumer to really address energy prices.”

California consistently has the highest gasoline prices in the nation, often more than $2 per gallon above the national average due to the state’s declining in-state production and reliance on imported crude.

Sable has to restart work at the Santa Ynez unit and Santa Ynez pipeline “to address supply disruption risks caused by California policies that have left the region and U.S. military forces dependent on foreign oil,” the Energy Department said in a statement.

The department said Sable’s facility could produce approximately 50,000 barrels of oil per day.

The Santa Ynez offshore oil platform and pipeline were shuttered in 2015 after a spill released thousands of barrels of crude into the Pacific Ocean. Sable Offshore, which is based in Houston, has been pressing for operations to resume after it bought the system from ExxonMobil in 2024, according to Cal Matters.

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Officials for Sable did not respond to requests for comment.

Gov. Gavin Newsom accused Trump of manipulating the war in Iran and a global crisis around surging gas prices to “open California’s coast for his oil industry friends so they can poison our beaches.”

“Donald Trump started a war, admitted it would spike gas prices nationwide, and told Americans it was a small price to pay,” Newsom said.

The governor said he intends to take the Trump administration to court to block the executive order.  

Steve Hilton, a former Fox News host who is running for governor, applauded the administration’s move and said the state should go much further in expanding oil and gas production.

“I totally support this and would go much further ramping up California oil and gas production,” Hilton said. “Given that we have abundant gas and oil reserves, it makes no sense to import from around the world.”

Hilton said he met with federal officials Friday, just hours before the drilling authorization was announced. He has previously written to oil industry leaders urging them not to abandon the California market despite strict environmental regulations.

“The main reason that gas prices are so high in California — $2 higher than the national average — is the refusal to produce oil and gas and importing it from around the world,” Hilton said. “It’s all totally insane and doesn’t help the climate at all. All it does is cause pain to working Californians.”

Hilton argued that offshore platforms and drilling operations in Kern County represent “huge opportunities” for expanding domestic production, and the dormant Santa Ynez operations have actually created environmental damage through seepage.

“Anywhere this is underground oil reservoirs, you get seepage and tar balls on the beach,” the industry source said. “If you take that oil reservoir and use it for production, you reduce the seepage to the local environment.”

The campaign of San Jose Mayor Matt Mahan, who’s also running for governor, panned the federal order in a statement to The Post.


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“Californians need relief at the pump now. President Trump’s decision won’t deliver anything but another divisive political conflict that will do nothing to lower gas prices,” the campaign said. “Mayor Mahan supports a temporary suspension of California’s high gas taxes to give families the help they need need right now.”

Trump’s order comes just weeks after a judge ruled against Sable restarting the Santa Ynez pipeline.

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