Sable Offshore Advances Oil Drilling in California Amid Legal Dispute

Sable Offshore announced it is increasing oil output at its sites off the California coast, with new wells beginning operations on Monday. The company stated that a third platform will start production later this year. This development comes after the restart of oil flows through a pipeline system last month, which connects the Santa Ynez offshore platforms to refineries in the state.

A judge in Santa Barbara Superior Court ruled last week that a state injunction remains in effect, preventing the company from resuming operations. The ruling handed a win to Gov. Gavin Newsom. The company stated it will challenge the court's process in a hearing next month and noted that the president authorized the reopening.

The executive order, signed in March, directed the resumption of oil drilling operations off Southern California, citing concerns about national energy security. The order referenced the Defense Production Act and was issued amid limited oil supplies related to the U.S. war with Iran.

The pipeline had been shut down since 2015 after a spill that released thousands of barrels of crude oil into the Pacific Ocean.

Forty wells on Platform Harmony and Platform Heritage are currently active, each producing about 750 barrels of oil per day. Once all 74 wells are operational, average output is projected at around 700 barrels per day per well. Platform Hondo is scheduled to begin production in June 2026, with expected output of approximately 10,000 barrels per day, increasing volumes from the Santa Ynez Unit.

Environmental groups and state officials argued that the executive order lacked required state approvals and sought the injunction, which was granted in February. The company resumed operations at the Santa Ynez offshore oil platform and pipeline in response to the order.