In 2015, a severe environmental disaster unfolded when a corroded pipeline burst in Southern California, leading to the state’s worst oil spill in decades. More than 140,000 gallons (3,300 barrels) of crude oil spilled into the ocean, spreading across a 150-mile (240-kilometer) stretch from Santa Barbara to Los Angeles. This catastrophic event severely polluted vital habitats for endangered species, including whales, sea turtles, pelicans, seals, and dolphins, and had a devastating impact on the local fishing industry.
In 2022, Plains All American Pipeline reached a $230 million settlement with fishermen and coastal property owners without admitting to any liability. Investigations by federal inspectors revealed that the Houston-based company failed both to promptly detect the rupture and to respond quickly to the crisis. As a result of the spill, three outdated drilling platforms were shut down permanently, although a Texas-based fossil fuel company has since purchased the operation and is determined to restart oil production through the pipeline.
Sable Offshore Corp., based in Houston, is currently embroiled in multiple legal challenges but remains focused on resuming oil output, potentially confining its activities to federal waters, where state regulations hold limited authority. California maintains control of the three-mile (five-kilometer) stretch nearest to shore, while Sable’s platforms sit five to nine miles (eight to 14 kilometers) offshore.
The Trump administration viewed Sable’s intentions favorably, promoting the project as a key element of its agenda to enhance U.S. energy production by dismantling regulatory barriers. Former President Donald Trump directed Interior Secretary Doug Burgum to reverse his predecessor’s ban on future offshore oil drilling along the East and West coasts.
Environmentalists have mobilized against Sable’s plans, filing lawsuits aimed at halting the project. Alex Katz, executive director of the Environmental Defense Center in Santa Barbara, voiced concerns that the project poses the threat of another environmental catastrophe in a time when oil demand is dwindling and climate change is escalating. He stressed that there is no way to ensure the safety of the pipeline and questioned Sable’s credibility as an operator.
Julia Louis-Dreyfus, a resident and activist, joined the cause, expressing her apprehensions during a protest in March, asserting that Sable's project is inherently flawed. The California Coastal Commission penalized Sable with a historic $18 million fine for flouting cease-and-desist orders regarding unauthorized repair work. Sable countered that it possessed permits from the previous owner, Exxon Mobil, and has filed a lawsuit against the commission while work on the pipeline continues. A state judge has ordered the company to halt operations as the legal battle proceeds.
Despite these challenges, Sable continues to advance its objectives. The California Attorney General's office recently initiated legal action against Sable, accusing the firm of unlawfully discharging waste into waterways and bypassing state laws that mandate permits for work along sensitive wildlife habitats. Last month, the Santa Barbara District Attorney filed felony charges against the company for harming wildlife and polluting waterways.
Sable has argued that it has fully cooperated with pertinent local and state agencies, deeming the allegations made by the district attorney as inflammatory and misleading. The company contends that its operations were overseen by a biologist and state authorities, asserting that no wildlife was harmed. Sable is also pursuing $347 million in compensation for operational delays, proposing to transition to a floating facility to conduct activities entirely within federal waters if the state obstructs its onshore pipeline system.
The U.S. Interior Department’s Bureau of Safety and Environmental Enforcement has indicated ongoing collaboration with Sable to reactivate a second drilling rig. Kenny Stevens, the agency's deputy director, emphasized the importance of American energy resources, framing Sable's revival as a "comeback story for Pacific production." He noted significant reserves of recoverable oil in the area and highlighted improvements in spill prevention technologies.
On May 19, marking the tenth anniversary of the oil spill disaster, Sable CEO Jim Flores announced the company had successfully achieved initial production at the Santa Ynez Unit, which comprises three rigs and extensive pipeline infrastructure. However, state officials contended that the company was only involved in testing rather than actual commercial production, leading to a drop in Sable’s stock price and lawsuits from disgruntled investors.
Sable's acquisition of the Santa Ynez Unit from Exxon Mobil in 2024 cost nearly $650 million, primarily financed through a loan from Exxon. This purchase occurred following Exxon’s loss in a court case concerning the transportation of crude oil via trucks while awaiting repairs to the pipeline. Flores stated that initial well tests indicated substantial oil reserves that could potentially stabilize California's notoriously high gas prices.
As California continues to shift toward renewable energy, local officials in Santa Barbara County have recently voted to begin a progressive phase-out of onshore oil and gas operations, reflecting the state’s longstanding commitment to reducing fossil fuel dependence.
