Controversial California oil pipeline can continue to operate, judge rules

A controversial oil pipeline can continue to operate off the California coast after a judge gave it the green light this week, despite the opposition of state regulators and environmental groups.

The system off the coast of Santa Barbara resumed operations earlier this year for the first time in more than a decade after Donald Trump ordered Sable Offshore Corporation to reopen it, citing US energy needs during the war in Iran. It had been closed since 2015 when a burst pipe caused one of California’s worst oil spills, and its reopening was supposed to be governed by a federal consent decree.

For months, California has sought to stop Sable from moving oil through pipelines, describing the company’s actions as an “egregious trespass on public land” that would cause irreparable harm. The Trump administration invoked the Defense Production Act (DPA), which grants the president authority over industries in the interest of national defense, and the company said the directive from the federal government superseded the orders of state regulators.

This week, Judge Stephen Wilson ruled that the pipelines can remain in operation and shifted oversight to federal authorities.

“Finally, as the Court has now discussed, the DPA Order does, as a matter of law, preempt the enforcement of any state law that conflicts with Sable’s ability to operate the Onshore Pipeline, including the trespass claim,” Wilson wrote in his ruling.

In the ruling, Wilson also fined Sable $1.5m for violating the consent decree without authorization and approval from a state agency or petitioning the court on the matter.

Sable bought the pipeline from ExxonMobile in 2024 and for more than a year was seeking to restart offshore oil production. In March, the Trump administration invoked the emergency powers of the DPA to order the company “restore operation” to address “supply disruption risks” that it said were caused by California policies.

Chris Wright, the US energy secretary, argued it would improve the US oil supply and restore a system “vital to our national security and defense”.

“The Trump administration remains committed to putting all Americans and their energy security first,” Wright said. “Unfortunately, some state leaders have not adhered to those same principles, with potentially disastrous consequences not just for their residents, but also our national security.”

Gavin Newsom, California’s governor, said Trump’s moves in the Middle East had caused gas prices to surge and that he was “using this crisis of his own making to attempt what he’s wanted to do for years: open California’s coast for his oil industry friends so they can poison our beaches”.

The matter has been working its way through the courts for months.

The California attorney general’s office did not immediately respond to a request for comment.