Sable Offshore resumes oil flow under federal order, targets 50,000 bbls/d
Sable Offshore Corp. (NYSE: SOC) resumed oil transportation through its Santa Ynez Pipeline System on March 14, 2026, following a federal order issued under the Defense Production Act.
Energy Secretary Chris Wright issued the order on March 13, 2026, after President Donald Trump signed an executive order delegating certain DPA authorities to the Energy Department. The order requires Sable to prioritize pipeline transportation services for hydrocarbons from the Santa Ynez Unit through the Santa Ynez Pipeline System to address energy supply risks in California.
The company began shipping hydrocarbons from Las Flores Canyon to Pentland Station with federal safety regulators present. Sable had approximately 540,000 barrels of processed crude oil in storage at Las Flores Canyon prior to resuming transportation.
The Houston-based company expects to achieve full production resumption at Platforms Harmony and Heritage in March 2026, with Platform Hondo following in June 2026. Sable plans to commence first sales by April 1, 2026, at an expected gross oil rate of 50,000 barrels per day.
The DPA order states that all federally produced barrels from the Santa Ynez Unit must flow through the pipeline system, up to its existing capacity of 200,000 barrels per day. Sable completed onshore pipeline repairs and hydrotesting as of May 2025.
On March 13, 2026, Sable and Pacific Pipeline Company filed a lawsuit against California's Department of Parks and Recreation seeking declaratory relief to confirm their rights under the DPA order. The state agency subsequently contested Sable's rights under the federal order in a March 14, 2026 letter.
The Santa Ynez Unit had been shut down since June 2015 when the onshore pipeline ceased transportation operations. Production restarted in May 2025, though the company has not sold commercial quantities of hydrocarbons since acquiring the unit.
