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FOX Business’ Stuart Varney weighs the economic impact of rising oil prices and predicts a swift market recovery as international military and diplomatic pressure converges to reopen the Strait of Hormuz.<\/p>\n
The Trump administration invoked the Defense Production Act to order an oil company to restart shuttered offshore operations in California, saying the move is necessary to address oil supply disruption risks and reduce reliance on foreign crude.<\/p>\n
Energy Secretary Chris Wright on Friday directed Sable Offshore Corp., an oil and gas company headquartered in Houston, to restore operations at the Santa Ynez Unit and the Santa Ynez Pipeline System off the coast of Santa Barbara, according to a statement from the Department of Energy (DOE).<\/p>\n
The order prioritizes restarting oil production and pipeline capacity to move crude through the Las Flores Pipeline System to Pentland Station, a key inland hub for transporting offshore oil to refineries, and into interstate pipelines.<\/p>\n
“California once supplied nearly 40 percent of U.S. oil production, but decades of radical state policies targeting reliable energy sources have driven a decline in domestic output while fuel demand remains among the highest in the nation,” the DOE 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\u2014presenting serious national security threats.”<\/p>\n
BURGUM CALLS CALIFORNIA A \u2018NATIONAL SECURITY RISK\u2019 AS ENERGY CHIEF WARNS BLUE STATES ARE SKEWING COST AVERAGES<\/p>\n
An offshore oil and gas platform in the Dos Cuadras Field off the coast of Santa Barbara, California, on Jan. 15, 2024. (Eric Thayer\/Bloomberg via Getty Images)<\/p>\n
The agency said Sable\u2019s facility can produce about 50,000 barrels of oil per day, roughly a 15% increase in California\u2019s in-state oil production, and could replace about 1.5 million barrels of foreign crude each month.<\/p>\n
“Today\u2019s order will strengthen America\u2019s 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,” Wright said in a statement.<\/p>\n
The directive, issued under authorities delegated through the Defense Production Act and related executive orders, also seeks to ensure that oil produced off California\u2019s coast can more efficiently reach domestic refineries.<\/p>\n
NEWSOM KNOCKED FOR \u2018INSANE\u2019 CALIFORNIA GAS PRICES AFTER BLAMING TRUMP FOR RISING COSTS<\/p>\n
Satellite view of oil platforms off Santa Barbara\u2019s coast, including the Carpinteria Offshore Oil Field, Rincon Oil Field and Rincon Island, an artificial drilling site built in 1958, seen in the Santa Barbara Channel on Jan. 20, 2025. (Gallo Images\/Orbital Horizon\/Copernicus Sentinel Data 2025 via Getty Images)<\/p>\n
California Gov. Gavin Newsom condemned the order Friday, calling the Trump administration\u2019s use of the Defense Production Act “reckless and illegal” and pledging to fight the directive.<\/p>\n
His office argued that restarting the Sable Offshore pipeline would have little effect on global oil prices, citing estimates that its output would represent roughly 0.05% of total oil production.<\/p>\n
HOUSE GOP URGES TRUMP TO CHOKE OFF IRAN ALLY’S OIL PROFITS AS MIDDLE EAST TURMOIL SPIKES US GAS PRICES<\/p>\n
Oil platforms off the coast of Santa Barbara, California, on Jan. 15, 2024. (Eric Thayer\/Bloomberg via Getty Images)<\/p>\n
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The governor also pointed to the pipeline\u2019s history, noting that a 2015 spill near Refugio State Beach released more than 140,000 gallons of crude oil and caused widespread environmental and economic damage along the Santa Barbara coast.<\/p>\n
“California will not stand by while the Trump administration attempts to sacrifice our coastal communities, our environment, and our $51 billion coastal economy,” Newsom said in a statement. “The Trump administration and Sable are defying multiple court orders, and we will see them back in court.”<\/p>\n
#Trump #admin #Defense #Production #Act #restart #California #oil #operations<\/p>\n","protected":false},"excerpt":{"rendered":"
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