Trump Invokes Defense Production Act for California Offshore Oil
Newsmax
Mar 14, 2026
California offshore oil rigs The Trump administration on Friday
invoked the Defense Production Act to boost oil production off Southern
California's coast as it looks to contain oil prices sent soaring by
the U.S.-Israeli war on Iran.
Global prices have surged above $100 a
barrel, the highest since 2022, driven by significant supply disruption
fears following the U.S.-Israeli conflict with Iran and threats to the
Strait of Hormuz.
The Defense Production Act, a Korean War–era
law enacted in 1950, gives the president broad authority to direct
private industry to prioritize and produce materials deemed essential
for national defense and emergency preparedness.
The law allows the federal government to
require companies to accept government contracts ahead of other orders,
allocate scarce resources, and provide financial incentives to expand
production of critical goods ranging from military equipment to energy
infrastructure and medical supplies.
It has been invoked by multiple
administrations during national crises, including wars, natural
disasters, and the COVID-19 pandemic.
Secretary of Energy Chris Wright told Sable
Offshore to restart work at the Santa Ynez Unit and Santa Ynez pipeline
"to address supply disruption risks caused by California policies that
have left the region and U.S. military forces dependent on foreign oil,"
the Energy Department said in a statement.
The Santa Ynez Unit and Santa Ynez pipeline
system have been points of contention in California. The Santa Ynez
offshore platforms were shut down in 2015 after an oil spill, but the
company has since restarted production at one of them.
A state judge last year ruled against the
Houston-based company's request to lift a cease-and-desist order on
repairs it had made to an onshore pipeline system.
The Trump administration on Friday invoked the Defense Production Act to boost oil production off Southern California's coast as it looks to contain oil prices sent soaring by the U.S.-Israeli war on Iran.
Global prices have surged above $100 a barrel, the highest since 2022, driven by significant supply disruption fears following the U.S.-Israeli conflict with Iran and threats to the Strait of Hormuz.
The Defense Production Act, a Korean War–era law enacted in 1950, gives the president broad authority to direct private industry to prioritize and produce materials deemed essential for national defense and emergency preparedness.
The law allows the federal government to require companies to accept government contracts ahead of other orders, allocate scarce resources, and provide financial incentives to expand production of critical goods ranging from military equipment to energy infrastructure and medical supplies.
It has been invoked by multiple administrations during national crises, including wars, natural disasters, and the COVID-19 pandemic.
Secretary of Energy Chris Wright told Sable Offshore to restart work at the Santa Ynez Unit and Santa Ynez pipeline "to address supply disruption risks caused by California policies that have left the region and U.S. military forces dependent on foreign oil," the Energy Department said in a statement.
The Santa Ynez Unit and Santa Ynez pipeline system have been points of contention in California. The Santa Ynez offshore platforms were shut down in 2015 after an oil spill, but the company has since restarted production at one of them.
A state judge last year ruled against the Houston-based company's request to lift a cease-and-desist order on repairs it had made to an onshore pipeline system.
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