Chevron will begin purchasing oil from Sable Offshore Corp., a Houston-based company, in a move that comes as California remains locked in a legal dispute with the Trump administration over energy policy and offshore production, as reported by The New York Post.
According to Bloomberg, Chevron plans to initially buy 20,000 barrels of oil per day sourced from offshore platforms near Santa Barbara. The development follows recent federal approval allowing production to restart in the area.
Chevron executive Andy Walz confirmed the company’s plans, stating, “We’re going to run Sable’s crude at El Segundo in April.”
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The refinery, located in the Los Angeles area, has the capacity to process approximately 269,000 barrels per day and is expected to handle the incoming supply.
Sable Offshore Corp. announced on March 16 that it had resumed operations at its Santa Barbara offshore platforms.
The restart marked the first time oil has been sent through the region’s pipeline since 2015, a system that has faced years of environmental opposition.
The production restart followed an executive order signed by President Donald Trump invoking the Defense Production Act.
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The Cold War-era law allows the federal government to accelerate production of critical resources, including oil and gas.
In response, California filed a lawsuit challenging the federal action.
State officials argued the order “illegally asserts exclusive jurisdiction over two California onshore oil pipelines” and prioritizes “donors over our people and communities.”
California Attorney General Rob Bonta addressed the legal challenge, stating, “The Attorney General is seeking to halt Sable’s unlawful restart of California’s onshore oil pipelines that are subject to State regulation and oversight.”
“California is unwavering in our commitment to protect our coastline and our public health,” the statement continued. “We’re looking forward to vigorously litigating our case in court.”
The office of Governor Gavin Newsom has not issued a public response to the latest developments.
Federal officials have said the restart of Sable’s operations is intended to reduce supply risks that have increased California’s dependence on foreign oil.
Those concerns extend beyond the state’s civilian fuel needs to include U.S. military operations.
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