In 2015, a catastrophic oil spill in Southern California left a devastating impact on the region’s beaches and wildlife. More than 140,000 gallons of crude oil flowed into the ocean, affecting a stretch of coastline from Santa Barbara to Los Angeles. The spill, noted as the worst in California in decades, harmed endangered species, killed hundreds of marine animals, and dealt a significant blow to the fishing industry.
In the wake of this disaster, Plains All American Pipeline reached a $230 million settlement in 2022 with affected fishers and coastal property owners, without admitting liability. Federal inspectors criticized the Houston-based company for its delayed response in detecting the rupture of the pipeline, complicating its efforts to establish a new pipeline system.
As three aging drilling platforms were decommissioned, Sable Offshore Corp., also based in Houston, has ambitions to revive those operations. Supported by the Trump administration, Sable is determined to proceed with oil extraction, even if this means operating exclusively in federal waters. The state of California maintains jurisdiction over the three miles closest to shore, while the drilling platforms sit approximately five to nine miles offshore.
The Trump administration has endorsed Sable’s plans as a means to bolster U.S. energy production amid a landscape of regulatory rollbacks. President Donald Trump instructed Interior Secretary Doug Burgum to lift the ban on offshore drilling for both the East and West coasts, paving the way for renewed fossil fuel extraction.
However, environmental organizations, including the Environmental Defense Center, have filed lawsuits against Sable to halt its project, citing concerns about potential further environmental disasters in California. Alex Katz, the center’s executive director, expressed that Sable’s operations pose a dangerous risk at a time when demand for oil is declining and the climate crisis is escalating.
At a protest against Sable, actor and activist Julia Louis-Dreyfus voiced her concerns, describing the project as a “rat” and urging officials to take action. The California Coastal Commission has taken a strong stance against Sable as well, imposing a historic $18 million fine for violating cease-and-desist orders and initiating work without the proper permits.
Sable asserts that it possesses permits from the previous owner, Exxon Mobil, and has challenged the commission’s authority in court. Recently, a state judge upheld the cease-and-desist orders, but Sable plans to appeal, seeking ways to continue its operations, even if relegated to federal waters.
The commission’s spokesperson criticized Sable as a “fly-by-night oil company” that has repeatedly jeopardized environmental protections along the Gaviota Coast.
Despite mounting legal challenges, Sable remains undaunted. The California Attorney General’s office has recently launched a lawsuit accusing the company of illegally discharging waste into sensitive waterways and neglecting vital state laws regarding permits.
The Santa Barbara District Attorney’s office has also pressed felony charges against Sable, further alleging that the company has harmed wildlife through its actions. In response, Sable has claimed that it fully cooperates with relevant authorities and denied allegations of wrongdoing, arguing that its operations have had oversight from biologists and state officials, resulting in no reported wildlife harm.
Sable is now pursuing $347 million in claims due to operational delays and has proposed a backup plan involving the use of a floating facility that would maintain its operations strictly in federal waters, shipping oil to markets outside California.
The Bureau of Safety and Environmental Enforcement, a part of the U.S. Interior Department, announced in July its collaboration with Sable to activate a second rig. Deputy Director Kenny Stevens highlighted the government’s commitment to American energy production, celebrating the potential resurgence of oil output in the Pacific region.
According to the bureau, there are significant oil reserves in the area, estimated at around 190 million barrels, representing nearly 80% of residual Pacific reserves. The agency also emphasized advancements in spill prevention and response as part of efforts to mitigate environmental risks associated with oil extraction.
On May 19, CEO Jim Flores proclaimed that Sable had achieved initial production at the Santa Ynez Unit, which encompasses multiple rigs in federal and state waters, as well as essential pipeline infrastructure. However, state officials contested this claim, stating that the company had only completed testing rather than engaging in commercial oil production, leading to a decline in Sable’s stock prices and subsequent lawsuits from dissatisfied investors.
Sable acquired the Santa Ynez Unit from Exxon Mobil in 2024 for nearly $650 million, primarily financed with a loan from the oil giant. After losing a court case in 2023 to transport crude oil via truck while awaiting pipeline repairs, Exxon opted to sell the operation.
Flores asserted that preliminary tests at the Platform Harmony rig suggested a substantial recoverable oil supply, which he believes could stabilize oil prices in California, where gas prices are among the highest in the nation. He remarked on the necessity for strong energy infrastructure, stressing the impact of recent refinery closures on California’s economy.
California has been actively reducing fossil fuel production in favor of clean energy alternatives for several years, a movement that has gained traction in Santa Barbara County, where officials voted in May to initiate the phasing out of onshore oil and gas operations.
With increasing legal pushes from the state and environmental advocates, Sable Offshore Corp. stands at a critical juncture as it tries to navigate the complex regulatory landscape and community concerns surrounding its plan to restart oil production off the coast of California.
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