California U.S. Senator Alex Padilla Presses Trump Administration on ‘Corrupt’ Plan to Establish New Strategic Petroleum Reserve with Sable Offshore Corporation Off Santa Barbara Coast
Oil Platform file photo June 18, 2026 - WASHINGTON, D.C. — U.S. Senators Alex Padilla (D-Calif.), member of the Senate Energy and Natural Resources Committee, and Patty Murray (D-Wash.), Vice Chair of the Senate Appropriations Committee, are pushing the Trump Administration for answers about Energy Secretary Chris Wright’s comments suggesting the Administration is pursuing a West Coast Strategic Petroleum Reserve (SPR) in direct coordination with Sable Offshore Corporation (Sable). During a recent visit to one of Sable’s units in California, Secretary Wright said the Department of Energy (DOE) is in “active dialogue” with the company about a new West Coast SPR, despite the significant shortfalls in existing reserves because of Donald Trump’s war in Iran and the immense cost of refilling existing SPRs. The announcement came shortly after the Trump Administration overrode California’s opposition to Sable restarting an oil pipeline responsible for the 2015 Refugio oil spill, which cost more than $250 million to clean up and an estimated $75 million in lost revenue. In their letter, the Senators express concern with the Secretary’s statements regarding the Administration’s direct coordination with Sable and highlight Congress’ longstanding and explicit prohibition on the establishment of any new regional petroleum product reserves unless funding is explicitly requested in advance and approved by Congress. No such consultations with Congress have occurred. “[Sable] sent a proposal to the Department of Energy which calls for the establishment of a West Coast Petroleum Reserve in California. Sable proposed the new petroleum reserve ‘in response to the inquiries made by the Trump Administration,’” wrote the Senators. “The Department of Energy’s FY26 budget request, released in May of last year, contained no request for funds to establish or plan for any new regional petroleum reserve, let alone the new West Coast reserve that seems to be under active discussion. As such, any establishment of a new reserve this fiscal year would violate Congressional intent.” The Senators further requested more information on the Administration’s potential plan to establish a West Coast SPR and demanded they turn over all correspondence with Sable relating to the plan. They also insisted the Administration cease plans to establish a new SPR until the appropriate consultations and approvals from Congress have been secured. “We seek a full description of any current and planned activities to set up a new regional petroleum reserve as well as all correspondence with Sable Offshore Corp. regarding the issue of a new regional reserve,” continued the Senators. “We also request that the Department cease all work to establish any new West Coast Strategic Petroleum Reserve until it has followed the process Congress has laid out for establishing any new petroleum reserve.” Earlier this month, Padilla and Senator Adam Schiff (both D-Calif.) introduced legislation to establish strict standards for offshore oil and gas operators and set requirements to hold them responsible for decommissioning and cleanup efforts off the coast. Last month, Padilla and Schiff launched an investigation into Sable’s politicized efforts to restart oil drilling operations off the Santa Barbara coast, and pointed to concerning financial ties between Sable and President Trump, including executives at Sable directly contributing to the president’s campaigns. In December, Padilla and Ranking Member of the House Committee on Natural Resources Jared Huffman (D-Calif.-02) led 26 members of the California Democratic Congressional delegation in condemning the Trump Administration’s official draft 2027-2032 Outer Continental Shelf Oil and Gas Leasing Program that includes six lease proposals off the coast of Northern, Central, and Southern California. Last year, Padilla and Huffman, along with Senator Cory Booker (D-N.J.), Senator Jack Reed (D-R.I.), and Representative Frank Pallone (D-N.J.-06), announced the West Coast Ocean Protection Act and the Clean Ocean and Safe Tourism (COAST) Anti-Drilling Act, a pair of bills to permanently protect the Pacific and Atlantic Oceans from the dangers of fossil fuel drilling. Full text of the letter is available here and below: Dear Secretary Wright, We write to express our concerns regarding recent statements indicating the Administration may be pursuing a West Coast Strategic Petroleum Reserve. We also wish to highlight the clear congressional direction in the enacted Fiscal Year 2026 appropriations law foreclosing such an action. On June 2, 2026, oil producer Sable Offshore Corp., which owns three oil platforms off the coast of California, sent a proposal to the Department of Energy which calls for the establishment of a West Coast Petroleum Reserve in California. Sable proposed the new petroleum reserve “in response to the inquiries made by the Trump Administration.” The Strategic Petroleum Reserve is an emergency stockpile of crude oil established to protect the U.S. economy and national security from major energy supply disruptions. Its needs, expansion, or operation should not be dictated by any one commercial entity. While Congress has consistently provided, in bipartisan fashion, funding to operate and maintain existing petroleum reserves, the establishment of a new reserve is subject to a clear and specific restriction laid out in annual spending bills. The Fiscal Year 2026 Energy and Water Appropriations bill’s accompanying report, as a condition of funding the Strategic Petroleum Reserve, explicitly prohibits the establishment of “any new regional petroleum product reserves unless funding for such a proposed regional petroleum product reserve is explicitly requested in advance in an annual budget request and approved by Congress in an appropriations act.” The Department of Energy’s FY26 budget request, released in May of last year, contained no request for funds to establish or plan for any new regional petroleum reserve, let alone the new West Coast reserve that seems to be under active discussion. As such, any establishment of a new reserve this fiscal year would violate Congressional intent. Furthermore, your department once again omitted any mention of or proposal for a new petroleum reserve in its Fiscal Year 2027 budget request. Considering this, we seek a full description of any current and planned activities to set up a new regional petroleum reserve as well as all correspondence with Sable Offshore Corp. regarding the issue of a new regional reserve. We also request that the Department cease all work to establish any new West Coast Strategic Petroleum Reserve until it has followed the process Congress has laid out for establishing any new petroleum reserve. Given the current strains on our nation’s energy security caused by this Administration’s actions, the Department should be focused on reinforcing existing reserves, which are reaching historic lows due to announced withdrawals, not pursuing costly new proposals driven by political considerations rather than strategic need. We look forward to your prompt response with requested information, including what authorities and funding the Department is relying on to establish a new reserve, absent Congressional approval or consent. Sincerely, Source: Senator Alex Padilla
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