Oil Firm Seeks Federal Help to Restart California Offshore Project

U.S. oil firm Sable Offshore Corp, which seeks to restart production offshore California via a pipeline to the coast, has unveiled an alternative offtake strategy after being sued by the Santa Barbara County District Attorney for environmental violations.

This alternative strategy, a so-called Offshore Storage and Treating Vessel (OS&T) strategy, would entail seeking federal clearance to transport the oil from the offshore platforms via shuttle tankers. The strategy, aimed to provide access to domestic and global markets for federal crude oil produced from the Santa Ynez Unit (SYU) offshore Santa Barbara, is pursued simultaneously with the company’s formal request for approval of restart plans to the California Office of the State Fire Marshal (OSFM) for the Las Flores Pipeline System.

“Sable continues to work diligently with the State of California to safely and responsibly resume petroleum transportation through the Onshore Pipeline in accordance with its Federal Consent Decree, which was entered into by several state and federal agencies,” the company said in a statement.

Earlier this month, Santa Barbara County District Attorney John T. Savrnoch filed criminal charges against Sable Offshore in Santa Barbara County Superior Court for environmental violations.

The complaint alleges that Sable Offshore committed five felony violations of the California Water Code for knowingly discharging dredged or fill material into waters of the United States; 11 misdemeanor violations of the California Fish and Game Code; and five misdemeanor violations of the Fish and Game Code.

Sable responded to the charges saying that “The allegations from the Santa Barbara County District Attorney’s Office are inflammatory and extremely misleading.”

Sable says that all of the repairs and excavations were supervised by a certified independent biologist and cultural resource professional and Office of State Fire Marshal personnel, no wildlife were adversely affected, and previously disturbed areas have been or are being remediated in accordance with state and local erosion control mitigation measures.

The oil company noted this week that the onshore pipeline would provide “immediate economic relief to California residents and will play a large role in stabilizing local refineries.”

In the option to seek federal nod for using shuttle tankers to ship the oil, the company “would have the freedom to market its production outside of the State of California,” Sable said, adding that it plans “to aggressively pursue all legal remedies” in the litigation in California.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com

 

  • Related Posts

    China’s Teapot Refineries Cut Operations to Their Lowest Level Since 2017

    The independent refiners in China, the so-called teapots, have slashed their refinery run rates to the lowest level since 2017, as high feedstock prices, weak domestic fuel consumption, and restricted…

    India Cuts Coal Imports as Power Plants Turn to Domestic Fuel

    India is boosting the share of domestic coal used in power plants designated to run on imported fuel, as rising local coal production and expanding renewables have helped to cut…

    Have You Seen?

    Oil Extends Losses on Expectations of Smoother Crude Flows via Hormuz

    • June 24, 2026
    Oil Extends Losses on Expectations of Smoother Crude Flows via Hormuz

    US CFOs in Survey Say Firms Mostly Absorbed Oil Price Shock

    • June 24, 2026
    US CFOs in Survey Say Firms Mostly Absorbed Oil Price Shock

    Global Physical Crude Markets Mired in Discounts as Middle East Ramps Up Supply

    • June 24, 2026
    Global Physical Crude Markets Mired in Discounts as Middle East Ramps Up Supply

    CarbonX CO2 electrolysis prize fund winner plots scale up timelines

    • June 24, 2026
    CarbonX CO2 electrolysis prize fund winner plots scale up timelines

    ITM, Gore eye 80,000-hour PEM life with ultra-thin membrane

    • June 24, 2026
    ITM, Gore eye 80,000-hour PEM life with ultra-thin membrane

    Analysis: Will Australia become a force in helium?

    • June 24, 2026
    Analysis: Will Australia become a force in helium?

    US Crude Oil Inventories Continue To Falter, SPR Struggling To Pick Up the Slack

    • June 24, 2026
    US Crude Oil Inventories Continue To Falter, SPR Struggling To Pick Up the Slack

    Trump Orders Gas Price Gouging Probe

    • June 24, 2026
    Trump Orders Gas Price Gouging Probe

    Malaysian Major Makes Gas Discovery in Suriname

    • June 24, 2026
    Malaysian Major Makes Gas Discovery in Suriname

    Qatar Says LNG Exports Could Return to Normal Within Weeks

    • June 24, 2026
    Qatar Says LNG Exports Could Return to Normal Within Weeks