Oil production in California is on the rise, even while Sable Offshore faces challenges with its pipeline operations.
On Monday, the company revealed its plans to ramp up production at its California sites, introducing a new well and anticipating the launch of a third platform later this year.
The stock saw a 3.7% increase in pre-market trading, according to reports.
This decision comes after a pipeline connecting an offshore platform in Santa Ynez to a California refinery resumed oil flow last month, although this situation is currently entangled in legal disputes.
Recently, Santa Barbara Superior Court Judge Donna Geck stated that the state’s injunction against the company remains active, which blocks the restart and marks a win for Governor Gavin Newsom.
In response, the oil companies are preparing to contest the “show cause” process in court next month, highlighting that the president endorsed the restart.
Despite the ongoing legal battle, oil production is still increasing. Currently, Platform Harmony and Platform Heritage have 40 wells operational, with each producing roughly 750 barrels of oil each day.
When all 74 wells are active, they’re projected to yield about 700 barrels daily, as reported.
Further enhancements are expected, with Platform Hondo set to begin production in June 2026, which may add up to 10,000 barrels per day to the Santa Ynez unit’s output.
Earlier this year, President Trump signed an executive order to restart oil drilling off Southern California’s coast, citing concerns over national energy security.
This directive invoked the Cold War-era Defense Production Act, spurred by worries that a potential conflict with Iran could disrupt oil supplies.
In response to the executive order, Sable Offshore resumed its operations at the Santa Ynez offshore platform and pipeline, which had been shut down since 2015 following a significant spill into the Pacific Ocean.
Environmental advocates and some Democratic lawmakers criticized the executive order, labeling it “unlawful” and insisting that the resumption of operations would need state approval. They subsequently sought and received a preliminary injunction in February.
