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Oil extraction off the California Coast is set to start following Trump’s directive. Will gas prices rise?

Oil extraction off the California Coast is set to start following Trump's directive. Will gas prices rise?

Crude oil pumping off the California coast is set to resume shortly following President Trump’s recent executive order enabling drilling near Santa Barbara. Officials from Sable Offshore Corporation have notified local fire authorities that they plan to “resume pumping operations within 24 hours.” This is part of the standard procedure for industrial activities that involve pipelines carrying hazardous materials.

Fire Chief Garrett Huff explained that this collaboration ensures the department can efficiently respond to emergencies like leaks or spills. He emphasized their role in maintaining readiness for various potential incidents.

Trump’s directive has drawn sharp criticism from California Democrats, but several industry officials, along with Republican leaders, praised the decision. Still, it remains uncertain how swiftly this will result in lower gas prices for consumers.

Industry insiders familiar with the Sable-managed Santa Ynez offshore platform indicated that the president’s order could noticeably boost California’s oil output. It’s projected that crude oil production could increase by around 10%, which is significant.

However, even if operations restart quickly, consumers might not see the benefits immediately. A source noted that it will take time for this to translate into products available for purchase, stating that true relief at the pump would require getting the oil to consumers.

Gas prices in California are among the highest nationwide, often surpassing the national average by over $2 due to the state’s limited production and dependence on imported oil. The Department of Energy remarked that Sable needs to resume operations at the Santa Ynez plant to mitigate risks posed by California’s policies that have led to reliance on foreign oil.

The Sable facility reportedly has a daily production capacity of about 50,000 barrels of oil. It was previously shut down in 2015 following a significant spill that affected the Pacific Ocean. Sable Offshore acquired the system from ExxonMobil in 2024 and has been looking to restart operations.

Governor Gavin Newsom has publicly criticized the president, alleging that Trump’s order serves the interests of the oil industry at the expense of California’s coastal environment. Newsom plans to counter this executive order legally.

Some, like former Fox News host Steve Hilton, support the administration’s actions, suggesting California should enhance its oil and gas production considering the country’s resources. Hilton indicated that high gas prices stem from the state’s reluctance to produce oil, which he sees as an absurd situation that doesn’t assist climate goals and harms Californians.

He also described California’s Kern County offshore platforms as a considerable opportunity for domestic production, claiming that the inactive Santa Ynez operation leads to environmental damage through oil seepage.

This executive order followed a recent court ruling against Sable’s request to initiate drilling operations again.

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