Santa Barbara and The Defense Production Act: Opinions are like...well you know, but they are wanted!
Sable Offshore has been directed by the Trump Administration to restore operations off the Santa Barbara coast and reopen the Santa Ynez pipeline system. Asking people smarter than me (especially Professor Shellman) their opinion on if this is a wise move or not. I think it could be IF it is used to keep our emergency stockpile filled, but I am just a lowly peon in this area.
516 Views
Hi, Sean thanks for the compliment.
The Inez Unit has three platforms in it and appx. 100 producing wells, I recall. At 80% of operational capacity, it will only produce 28-30,000 BOPD, but that is certainly nothing to sneeze at. Sable has been trying to get back up and running but runs into regulatory roadblocks constantly. Interestingly I recall reading re-assignment provisions in the Sale Agreement that would allow Exxon to take the Unit back over from Sable after some time in 2026 if it does not have all three platforms producing.
I think this "order" is mostly political chicken fighting but having said that California has been oil stupid for decades. It now imports a lot of refined products from China, I think.
This should be done. California has the resources to be self-sufficient as a state. We should also, as you might expect me to say, start choking back U.S. exports, even if it means keeping it in the ground until America needs it. The pissing match with Canada is stupid and because it's lost its U.S. market, it's now trying to get its oil to China. Imagine fighting over Venezuela while watching Canadian oil sail away to Asia? It's like watching Twilight Zone reruns.
I hope you are well.