When a pipeline ruptured in 2015, more than 140,000 gallons of oil spilled along the Southern California coast, impacting beaches from Santa Barbara to Los Angeles. The spill affected marine habitats and local wildlife and caused significant harm to the fishing industry.
In 2022, Plains All American Pipeline reached a $230 million settlement with those affected by the spill but did not admit liability. Federal inspectors cited failures in detecting and responding to the rupture.
Afterward, three drilling platforms were shut down. Sable Offshore Corp., a Texas-based company, later acquired the operation with plans to restart oil production using the same pipeline. The Trump administration has expressed support for Sable’s efforts as part of its broader push to increase domestic energy production by easing regulatory restrictions. President Donald Trump instructed Interior Secretary Doug Burgum to reverse previous bans on offshore drilling along both U.S. coasts.
Environmental groups have opposed Sable’s plans and filed lawsuits to stop the project. “This project risks another environmental disaster in California at a time when demand for oil is going down and the climate crisis is escalating,” said Alex Katz, executive director of Environmental Defense Center. He added: “Our concern is that there is no way to make this pipeline safe and that this company has proven that it cannot be trusted to operate safely, responsibly or even legally.”
Actor Julia Louis-Dreyfus spoke against Sable at a protest earlier this year: “I can smell a rat. And this project is a rat.”
The California Coastal Commission fined Sable $18 million for unauthorized repair work on the pipeline route. The company argued it was operating under permits from Exxon Mobil, its predecessor owner, but state officials disagreed and obtained a court order halting work while legal proceedings continue.
Joshua Smith, spokesperson for the commission, stated: “This fly-by-night oil company has repeatedly abused the public’s trust, racking up millions of dollars in fines and causing environmental damage along the treasured Gaviota Coast.”
Sable faces further legal action from state authorities over alleged illegal waste discharges into waterways and failure to obtain necessary permits for work affecting sensitive wildlife areas. The California Attorney General’s office said: “Sable placed profits over environmental protection in its rush to get oil on the market.” Last month, felony criminal charges were also filed by Santa Barbara County prosecutors related to pollution and harm to wildlife.
Sable responded that it has cooperated fully with regulators including California Department of Fish and Wildlife; it called some allegations misleading and stated that no wildlife was harmed during their activities.
The company claims delays have cost $347 million and warns it may move operations entirely into federal waters if blocked by state agencies—using tankers instead of pipelines—to avoid state oversight.
Federal regulators are working with Sable on bringing another rig online offshore California waters. Kenny Stevens of the Bureau of Safety and Environmental Enforcement said: “President Trump made it clear that American energy should come from American resources,” calling developments “a comeback story for Pacific production.” The agency estimates about 190 million barrels remain recoverable in these fields—almost 80% of remaining Pacific reserves—and pointed out new monitoring technology reduces risk compared with past incidents.
On May 19—the tenth anniversary of the original spill—CEO Jim Flores announced initial production at Santa Ynez Unit platforms had begun safely: “Sable is very concerned about the crumbling energy complex in California,” he said. “With the exit of two refineries last year and more shuttering soon, California’s economy cannot survive without the strong energy infrastructure it enjoyed for the last 150 years.”
State officials disputed Flores’ announcement as only testing rather than commercial output; following this news Sable’s stock price fell amid investor lawsuits alleging misleading statements.
California continues moving toward reducing fossil fuel use statewide while supporting clean energy initiatives—a trend led by local governments such as Santa Barbara County voting recently to phase out onshore oil operations.
