California’s Rising Gas Prices and the Santa Ynez Refinery’s Reopening

Californians are currently grappling with higher gasoline prices as the Santa Ynez refinery has resumed operations, now producing 60,000 barrels of oil daily.

During a visit to this recently reopened site, where oil is now being channeled to Santa Barbara’s onshore pipeline following an executive order from President Trump, executives provided insights into their operations. They responded, albeit cautiously, to the Democratic critiques surrounding the facility’s reopening, which is currently under legal scrutiny.

J. Caldwell Flores, the president and CEO of Sable Offshore Corporation, stated, “The pipeline can be fully and safely reopened.” He also emphasized, “We recognize that we provide a needed service to California and the entire country.”

While about 100 new jobs have been created, Sable anticipates another 200 positions once all three platforms—Hondo, Harmony, and Heritage—are fully operational. This reopening is also projected to generate around $5 million annually in tax revenue, which the state could surely benefit from.

The brief helicopter ride from the land base in Las Flores Canyon to the Harmony Platform included two pilots, six passengers, and a reporter. Normally, around 35 crew members work in shifts lasting two weeks on the platform, which operates offshore in federal waters along Santa Barbara’s coast.

U.S. Representative Vince Fong, whose district includes significant oil reserves, participated in the tour and was quite critical of Governor Gavin Newsom’s oil policies, viewing the refinery’s reopening as a crucial move to alleviate fuel costs. “This is American oil made on American soil,” he remarked while observing operations.

Despite Sable’s output being relatively modest in comparison to the nationwide consumption, it holds importance for California, especially given a significant decline in the state’s oil production since the 1980s. The Department of Energy estimates that reopening the Santa Ynez pipeline could increase oil production in California by 15%, potentially replacing about 1.5 million barrels of foreign crude oil each month.

Fong voiced a strong stance, saying, “We need more production. Look at the current energy crisis in California. It’s because of bad policy.” He pointed specifically to actions by Newsom, claiming they have increased reliance on foreign oil.

Currently, California has one of the highest gas taxes in the United States, translating to about 90 cents per gallon when combining state and federal levies. Flores echoed concerns, stating that the refinery’s production could significantly impact prices, albeit the exact extent remains challenging to quantify.

The Santa Barbara facility was previously shut down following a notable oil spill in 2015, linked to a corroded pipeline. After more than a decade of halted operations due to environmental issues and regulatory challenges, the facility’s revival is gaining momentum under a federal emergency order.

In March 2026, oil from six wells at the Harmony Platform began being directed to Las Flores Canyon pending pipeline approval. Citing national security and energy supply worries, President Trump issued an executive order to support the resumption of operations.

Flores remarked on California’s geographic isolation, noting its role in national security because of various military bases relying directly on local oil production. He also emphasized the risks of depending on foreign oil imports.

With the lawsuit against the refinery still ongoing, Sable has already secured contracts for its oil. Flores is optimistic about future production goals. “Every barrel produced will replace one barrel of oil imported into California from abroad,” Fong stated.

In response to criticisms, Newsom’s office mentioned that the challenges with oil prices stem from external factors, including international tensions affecting supply routes. They noted the complexities surrounding oil pricing in the global market, particularly how domestic crude often sells to the highest bidder.

As some refineries, like Phillips 66 and Valero, pull back operations in California, critics argue that Newsom’s stringent regulations are compelling more closures and necessitating increased oil imports.

Fong concluded that the state’s energy crisis could have been less severe had the governor allowed local production to continue without requiring an executive order. Meanwhile, the debate continues, with tensions highlighted over the responsibility for rising fuel costs and declining local production.

The California Post sought comments from Newsom’s office regarding the state’s drop in oil production during his administration.