REGULATORY · MARKET STRUCTURE · USA
President restarts Santa Ynez pipeline
Change
The president invoked the Defense Production Act to restart oil flows through the Santa Ynez offshore pipeline system in California.
Why it matters
The president used powers under the Defense Production Act to order a restart of the Santa Ynez offshore unit and pipeline system. Sable Offshore Corporation, the Houston-based owner, announced that offshore oil is now flowing through the Santa Ynez unit and pipeline. The pipeline had been closed since 2015 following a burst pipe and a large oil spill that killed hundreds of animals. Sable acquired the pipeline from ExxonMobil in 2024 and had sought to restart operations for over a year prior to the federal order.
Implications
- · State and local regulators' ability to keep the Santa Ynez system offline is overridden by the federal order.
- · Sable Offshore is conducting oil transfers through the Santa Ynez pipeline system.
- · Coastal transport capacity along the Santa Ynez route, inactive since 2015, is available again for oil movement.
Who is affected
- · Offshore oil operators
- · State environmental regulators
- · County and coastal authorities
Source
Topics
Law & Public Safety Regulatory Actions Energy & Power Oil & Gas Climate & Environment Environmental Regulation