Sable Offshore Shares Surge as Energy Secretary Orders Restart of Oil Production

Sable Offshore Corp's shares surged over 16% in pre-market trading after CEO Jim Flores announced that the company has restarted oil production at its Santa Ynez Unit (SYU) following an order from Energy Secretary Chris Wright.

The order, issued on March 13, directed Sable to prioritize pipeline transportation services for hydrocarbons between SYU and Pentland Station in California. Wright stated that this move will strengthen America's oil supply and restore a vital pipeline system critical to national security and defense.

Sable expects the first sale of hydrocarbons produced at its Santa Ynez Unit in April 2026 at an expected gross oil rate of 50,000 barrels per day. The company anticipates a ramp-up in production, with full resumption at Platforms Harmony and Heritage this month and at Platform Hondo in June 2026.

The Energy Secretary added that Sable's production capacity could contribute to a 15% increase in California's in-state oil production, replacing nearly 1.5 million barrels of foreign crude each month. Wright emphasized the importance of increasing domestic supply, citing California's reliance on imported oil and the national security threats posed by blockages such as the Strait of Hormuz.