Chevron gas prices, Sacramento, CA 9/29/2022. (Photo: Katy Grimes for California Globe)
Sable Pipeline Gets Go-Ahead to Restart California Pipeline
California is producing only 23.7% of its own in-state oil/gas needs
By Katy Grimes, January 2, 2026 7:36 am
The Federal Pipeline and Hazardous Materials Safety Administration just gave Sable Offshore Corp. a Christmas present: Sable can begin pumping oil from its three platforms off the coast of Santa Barbara, Calif., after a federal appeals court allowed the restart of a contested pipeline, Bloomberg Law reported.
“Environmental groups lost their bid at the US Court of Appeals for the Ninth Circuit to stay enforcement of the federal Pipeline and Hazardous Materials Safety Administration’s emergency special permit for the Las Flores Pipeline System,” Bloomberg reported.
“The order is the latest win for the Santa Ynez oil operation that has been battered with lawsuits and regulatory scrutiny since Exxon Mobil Corp. handed over the reins to Sable 10 years ago.”
Energy News reports on this important news:
Sable’s Las Flores Pipeline System is off the Santa Barbara coast. The decision, handed down by the Pipeline and Hazardous Materials Safety Administration allows the company to resume operations on the notorious Lines 901 and 903—pipelines shuttered since the 2015 Refugio oil spill that dumped thousands of barrels of crude into the Pacific Ocean.
This green light comes amid ongoing lawsuits from environmental groups and pushback from state regulators, who argue the restart prioritizes profits over safety.
The timing couldn’t be more charged. California is grappling with a self-inflicted energy squeeze as major refineries shutter, slashing the state’s refining capacity by an estimated 17-20%. But can Sable’s revived pipeline inject enough crude to stem the tide, or is this a symbolic win in a state hell-bent on phasing out oil? Let’s break it down, from the pipeline’s throughput to its ripple effects on refineries, investors, and everyday consumers.
As the Globe recently reported, with two California oil refineries preparing to shut down, California’s high priced gas is self-inflicted through excessive taxation and overregulation – all while the rest of the nation has been enjoying lower gas prices.
The nationwide average for regular gas is at its lowest level in 1,681 days — and trending lower, the White House announced this week… except in California, where the average price per gallon of gas is $4.43.
According to GasBuddy, average gas prices have dipped below $3 per gallon in 37 states, below $2.75 per gallon in 22 states, and below $2.50 per gallon in five states… except in California.
AAA reports the national average for a gallon of gas is $2.94… except in California.
Democrats’ and Governor Newsom’s open hostility has been directed squarely at the oil and gas industry. Experts have been calling for federal intervention in California:
According to the EIA, Retail prices for regular grade gasoline in California are consistently higher than in any other state in the continental United States, often exceeding the national average by more than a dollar per gallon because of state taxes and fees, environmental requirements, special fuel requirements, and isolated petroleum markets.
And, with two more refineries about to shutdown, it’s going to get worse and fast.
“California’s in-state oil production has declined by approximately 65% since 2001, while its dependency on foreign imports has risen by nearly 70%,” USC Professor Michael A. Mische, UC Berkeley Professors James W. Rector, and Joseph B. Silvi explain in a recent report. “At the same time, refinery capacity has fallen 21% since 2023 and gasoline demand remains largely unchanged at roughly 36–40 million gallons per day. SB 237, designed to permit up to 2,000 new wells annually in Kern County, will add some production but not enough to offset the overall statewide decline and will not adequately stabilize the state’s petroleum infrastructure.”
California’s highest-in-the-nation gas prices are self-inflected, as is the gasoline crisis in the state. This has subsequently increased dependency on foreign oil suppliers and shippers to supply fuels, and as we reportedrecently, this poses a direct threat to U.S. military force readiness on the West Coast, as California Assemblyman Stan Ellis, USC Professor Professor Michael Mische, and petroleum expert Michael Ariza warned recently in their report, “CALIFORNIA ENERGY & FUEL POLICIES: A CLEAR AND PRESENT THREAT TO NATIONAL SECURITY AND FORCE READINESS?”
California’s gas is 51% higher than the national average.
The Globe reported on the important report by oil and gas experts USC Professor Michael A. Mische, UC Berkeley Professors James W. Rector, and Joseph B. Silvi:
Our analysis indicates that California can navigate its way out of this government- created crisis and avoid supply vulnerabilities and escalating consumer prices by implementing the following action steps [emphasis the Globe]:
- California’s most immediate, viable and sustainable option is to increase in-state crude oil production. The best, and essentially only way to achieve and sustain this benefit is to reopen the Las Flores Canyon pipeline system on the Central Coast and safely increase offshore crude oil production in the Santa Ynez Unit (SYU).
Read their report here, as well as why California’s Oil And Gas Policies: A ‘Clear And Present Threat To National Security’
Unless Governor Newsom implements increases to the state’s crude-oil production, reopens the pipeline and increases offshore crude production, Californians are looking at gas prices to increase to $8.00 to $12.00.
Someone in the federal government was listening.
Energy News warns that while this decision is important, with refineries closing down, it’s not a fix-all:
However, it won’t magically sustain the closing refineries—those decisions are baked in, driven by policy rather than supply shortages.
As for staving off further closures: No. Sable’s 50,000 bpd influx might help the remaining refineries run more efficiently by displacing pricier imports, but it’s insufficient to offset the 300,000 bpd capacity loss.
However, “It signals a federal pushback against California’s anti-oil stance under the Trump administration, potentially opening doors for other offshore projects.”
Read Prof. Mische’s Ten Action Steps That California Can Take to Ensure Gasoline Security and Lower Prices for Consumers
And today, AAA reports that the national average price for a gallon of gas is $2.83 – in California that gallon of gas costs $4.27 up as high to $5.53. Notably, gas prices today are now 23 cents per gallon cheaper than they were one year ago.
A California native and Navy mom, Katy lives in Sacramento, CA.
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Great news about Sable Pipeline. But refineries are a must, as was pointed out in the article, and further loss of refineries —– understandable because of Serial Destroyer Newsom’s policies —- means further trouble. “And, with two more refineries about to shutdown, it’s going to get worse and fast.” All self-inflicted, as was also pointed out in the article, and as we know. Thanks a lot for the constant trampling and trouble and misery and the road to collapse doled out to Californians, Gavin Newsom and Dem-controlled legislature. Ridiculous and disgusting and ruinous, as usual. Good job! NOT. Enjoy your liquor!
This is somewhat encouraging!!!
California’s fuel standards and pipeline limitations mean replacement barrels must come from overseas—primarily Asia and the Middle East—at higher costs and longer transit times. “A refinery shutdown in California isn’t replaced by a refinery in Texas; it’s replaced by a tanker crossing the Pacific
not true at all:
had you been truly seeing what’s actually happening, you would see that as we speak, several oil and pieline companies are rejiggering their pipelines to deliver refined products to CA, from TX, and other facilities to the East of CA.
Regulatory approvals from federal and state agencies, including the Army Corps of Engineers and the California Energy Commission, will be required before any of that can happen. Good luck getting approval from Hair-gel Hitler Newsom’s handpicked globalist puppets that he installed in state agencies and commissions. They’ll squash all pipeline proposals with edicts and bureaucratic tyranny.
Katy – You are great and I need to make one correction. Oil imports have risen to where CA gets 70% of its oil needs for its remaining refining processing (from 5% in 1982). I might point out that the increase in imports directly affects the LA Basin smog particulates where almost half of LA smog comes from the ports. Each tanker voyage of 12,000 nm emits the equivalent of 20,000 cars. Professor Mische has pointed out that removing wells does increase the reservoir pressure so oil seeps will become more common. Those that had lived in say Orange County, in the 1960’s remember the kerosene pots to get the tar off their feet. The over 21 natural oil seeps offshore have had their pressure reduced due to the interconnectivity of the onshore giant oil fields like Huntington Beach and Wilmington. As CRC shuts down the facilities, for real estate profits (they think), those seeps will come ashore again as that is the natural state of the CA beaches. Notice how the pressure finally broke on Balboa Island last month from and old 1929 heavy oil well barely abandoned. The contractor will be on that project for months contrary to expectations. My point is if your City is built on top of oil deposits, you need more wells for observation (pressure) not less or no wells. As a third generation oilman, I see clearly how Newsom and his SAC sycophants have acted literally insane when it comes to domestic oil production and safety of the residents. Yes, CA can turn around as it has the second largest oil reserves in the US, but the political jackboot has to be removed or CA will be heading towards disaster. Me personally, I have hired an attorney to take on Newsom and CALGem for a “taking.” That is so embarrassing to admit to my compadres in Texas.
As a native son of California who is old enough to remember controlled burns being held by Los Angeles fire departments, the natural oil seeps are a factual memory of my youthful beach trips.
I vividly recall the arduous process of removing the tar from my feet, trunks and towels after my numerous trips to the beach and catching waves on my Army /Navy surplus store inflatable precursors to my first generation bodyboard that was created by Tom Morey.
Newsom is actually harming California beaches by his disastrous abandonment of local oil reserve management.
Just one facet of many MISmanagement of California’s precious natural resources.
CD9 – I also remember having to remove the tar from the natural oil seeps from my feet after beach visits as a young teenager. One summer my friends and I went to the beach almost every day, so I remember it well. Never once used a body board or a boogie board, though —– which probably would have been a good idea, ha —- just plain old body surfing, and sometimes an unexpected especially-powerful wave would slam us onto the ocean floor. No injuries, just a bit of panic that we couldn’t escape the force of it and come up for air. Ah, memories… 🙂
Any positive outcomes are “despite” the destructive efforts of Newsom and the democrat party.
Is the court simply trying to bail Newsom out before gas prices start heading upwards due to him papering the refiners until they gave up and left? Not to mention reducing the political pressure on 2028 democrat candidates for his replacement?
I would not be a bit surprised that the courts are up to their necks in democrat politics.
Can you imagine this blithering idiot of a governor, Newsom, as President of the United States? This guy is completely incompetent, and has destroyed this state as evidenced by every performance metric. We don’t need the entire country destroyed by this dummy.
We need to put commendant newSKUM 6 feet under. Who tf does he think he is?? The guy is a DICK TATER and personally, im OVER IT.
Great news for Sable…until they start getting all the fines and hassles from the California Air Resources Board and all the wacked out enviromaniacs from Santa Barbara County. They might wish that they stayed in Texas and kept their money, instead of giving to Santa Barbara County in the form of fines.