Chevron will begin purchasing oil from Sable Offshore Corp., a Houston-based company, in a move that comes as California remains locked in a legal dispute with the Trump administration over energy policy and offshore production, as reported by The New York Post.

According to Bloomberg, Chevron plans to initially buy 20,000 barrels of oil per day sourced from offshore platforms near Santa Barbara. The development follows recent federal approval allowing production to restart in the area.

Chevron executive Andy Walz confirmed the company’s plans, stating, “We’re going to run Sable’s crude at El Segundo in April.”

Trump's Sovereign Wealth Fund: What Could It Mean For Your Money?

The refinery, located in the Los Angeles area, has the capacity to process approximately 269,000 barrels per day and is expected to handle the incoming supply.

Sable Offshore Corp. announced on March 16 that it had resumed operations at its Santa Barbara offshore platforms.

The restart marked the first time oil has been sent through the region’s pipeline since 2015, a system that has faced years of environmental opposition.

The production restart followed an executive order signed by President Donald Trump invoking the Defense Production Act.

FREE Gun Law Map: Laws Don't Pause During Social Unrest

The Cold War-era law allows the federal government to accelerate production of critical resources, including oil and gas.

In response, California filed a lawsuit challenging the federal action.

State officials argued the order “illegally asserts exclusive jurisdiction over two California onshore oil pipelines” and prioritizes “donors over our people and communities.”

California Attorney General Rob Bonta addressed the legal challenge, stating, “The Attorney General is seeking to halt Sable’s unlawful restart of California’s onshore oil pipelines that are subject to State regulation and oversight.”

“California is unwavering in our commitment to protect our coastline and our public health,” the statement continued. “We’re looking forward to vigorously litigating our case in court.”

The office of Governor Gavin Newsom has not issued a public response to the latest developments.

Federal officials have said the restart of Sable’s operations is intended to reduce supply risks that have increased California’s dependence on foreign oil.

Those concerns extend beyond the state’s civilian fuel needs to include U.S. military operations.

Once fully ramped up, Sable’s output is expected to reach between 45,000 and 55,000 barrels per day.

While that volume represents a small share of the more than 20 million barrels consumed daily across the United States, officials say it provides a measurable addition to California’s supply.

California’s in-state oil production has declined significantly over the past several decades.

Production has fallen from about 1.1 million barrels per day in 1986 to approximately 246,000 barrels per day as of late 2025, representing a drop of roughly 77%.

Chevron has indicated that increased domestic production could help address fuel costs tied to reliance on imported crude.

Walz said, “We’re taking American crude oil, putting it in American pipelines, running an American refinery and selling those products to American motorists — and it’s going to be cheaper than importing.”

He added that “the Sable opportunity is a good thing for America.”

Critics of California’s current energy policies argue that recent measures have contributed to reduced refining capacity and increased reliance on imports.

The U.S. Oil and Gas Association stated, “California imports 63% of its crude from foreign countries — despite sitting on at least 1.7 billion barrels of proven reserves.”

Chevron has previously raised concerns about state policies. Earlier this month, the company warned in a letter to Governor Newsom that proposed changes to the cap-and-trade program could result in job losses and higher fuel costs.

The company described the policies as “misguided” and warned they could “cripple” remaining refineries.

The opinions expressed by contributors and/or content partners are their own and do not necessarily reflect the views of Objectivist. Contact us for guidelines on submitting your own commentary.