Energy Secretary invokes Defense Production Act for Sable Offshore

Secretary of Energy Chris Wright Friday night directed Sable Offshore (SOC) to restore operations of the Santa Ynez Unit and Santa Ynez Pipeline System to “address supply disruption risks caused by California policies that have left the region and U.S. military forces dependent on foreign oil.” Wright said, “This action issued under authorities provided by the Defense Production Act and delegated through Executive Order, ‘National Defense Resources Preparedness,’ as amended by President Trump’s Executive Order, ‘Adjusting Certain Delegations Under the Defense Production Act.'” Sable’s facility can produce approximately 50,000 barrels of oil per day, a 15% increase to California’s in-state oil production, that can replace nearly 1.5 million barrels of foreign crude each month, Wright noted. Shares of Sable Offshore rallied post-close last night 10% to $18.45 following the news.