Trump Uses Defense Production Act to Boost California Offshore Oil Output

Key Details President Trump is invoking Cold War-era Defense Production Act powers to bypass California state laws and expedite permitting for Sable Offshore Corp. The Houston-based company seeks to restart significant oil production from offshore platforms along the Southern California coast. Sable's stock jumped 34% on the announcement before trading was halted. Why It Matters California refineries depend on foreign crude for about 61% of their oil supply, with roughly 30% passing through the Strait of Hormuz. Ongoing conflicts have disrupted that critical shipping corridor, causing fuel prices to spike nationally. Drivers are feeling the pain at the pump, threatening economic messaging ahead of midterm elections. What's Next The White House is expected to formally announce the policy from the president soon. So far, other oil relief measures like government-backed maritime reinsurance and Navy escorts through the Strait of Hormuz have not yet materialized. The International Energy Agency authorized its largest emergency oil reserve release on March 11 to help stabilize global markets.