Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)
Summary
Legal disputes flared up again as Trump tries to impose his fossil-fuel wills on California. The state’s leader says he needs to for starting an “unnecessary” war against Iran.
Santa Ynez Pipeline Center of Disputes
California is once again the center of a legal battle with the Trump administration’s efforts to prop up the state’s oil industry. The latest issue centered on the offshore Santa Ynez Pipeline System (SYPS).
Based on Industrial Info Resources data, restarting the unit would be complex. It includes the restart of three offshore platforms, an associated processing plant and pipeline work.
According to Industrial Info Resources data, the facilities were closed in 2015 following the release 2,800 barrels of oil. Some 500 barrels made it into the Pacific Ocean, while an estimated 1,500 acres of shoreline impacted.
For details on major aspects of the SYPS, subscribers to the Industrial Info Resources Global Market Intelligence (GMI) Oil & Gas Project Database can read detailed reports on the offshore platforms, processing plant and pipeline.
Last week, representatives for asset owner Sable Offshore said the pipeline component of the unit was operational, according to orders delivered by U.S. Energy Secretary Chris Wright.
“The previously announced resumption of oil transportation through segments 324 and 325 of the Santa Ynez pipeline was executed in compliance with all applicable safety standards through our comprehensive pipeline integrity management program,” the company said on Monday.
Sable added that 40 wells at the offshore Harmony and Heritage platforms are each producing about 750 barrels of oil per day. The other platform, Hondo, should be online by June, with a peak capacity of 10,000 BBL/d.
The U.S. Justice Department backed the project, arguing U.S. President Donald Trump can use the Defense Production Act of 1950 to fast-track industrial projects and bypass California laws.
“Sable is coordinating with the federal government in various legal matters to defend its vested rights to operate its assets and ensure compliance with certain federal mandates, including the Defense Production Act,” the company said. “Sable is also actively pursuing damages and taking proactive legal action to curb state and county regulatory overreach.”
Industrial Info is tracking developments across California, from the decline of the state’s refinery sector to its fight against the Trump administration. Some $2.2 billion in total investment value is spread out over 18 projects associated with fossil fuels, while $6.9 billion covers 33 projects associated with alternatives such as natural gas derived from the decomposition of organic matter.
For more information, readers can consult a list of detailed reports for California’s fossil fuel and alternative projects.
By the Numbers
- 50,000 BBL/d to offset foreign supplies
- 2,800 barrels of oil released from system in 2015
Trump Needs War Cover, Newsom Claims
Last week, California Gov. Gavin Newsom, a potential presidential candidate for the Democratic Party, said Trump needed to work to prop up the domestic energy sector because of the supply-side shortages stemming from the war in Iran.
“When there’s money to be made and a scapegoat to blame, Trump never lets a crisis of his own making go to waste,” he said.
A coalition of environmental advocacy groups filed lawsuits against California regulators in early 2025, arguing that Sable, which took over operations the prior year, was issued illegal waivers to run the pipelines without corrosion protection.
Sable has since leaned on the Trump administration for support, but a court last week ruled the use of the Defense Production Act was questionable. Another hearing is set for May 22 to consider whether Sable is in contempt of court orders for continuing with its operations.
The U.S. Energy Department claims Sable Offshore can produce about 50,000 BBL/d per day from California’s waters. That, the government said, would replace equivalent barrels in foreign imports.
Key Takeaways
- California continues to fight against Trump’s plans for fossil fuels
- Gov. Newsom said the administration is trying to cover for mistakes in the Middle East
About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news, and analysis on the industrial process, manufacturing, and energy-related industries. IIR’s Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified, and verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).
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