A Texas oil firm, Sable Offshore Corp, is facing legal battles with California to restart crude oil production in federal waters off Santa Barbara. Despite Trump administration support, Sable is struggling with lawsuits and financial challenges, risking default on a $625 million loan from ExxonMobil for platforms bought in 2021.

Sable’s alternative plan to use shuttle tankers for oil transport in federal waters only is met with California’s opposition, leading to lawsuits for environmental violations. The company’s stock price has plummeted by 68% amid allegations of insider trading. Sable seeks federal approvals to bypass California regulations for economic relief.

California continues to file lawsuits against Sable, including alleged water law violations during pipeline repairs. Attorney General Rob Bonta accuses Sable of prioritizing profits over environmental protection. Sable is entangled in litigation with the California Coastal Commission over pipeline work fines and delays, seeking over $347 million in damages.

Sable is concerned about California’s energy sector decline and aims to stabilize local refineries. Industry executives find Sable’s persistence puzzling, citing regulatory and reputational risks. Experts warn of prolonged legal battles with California agencies and regulators. Offshore oil production in California remains challenging, with uncertainties about Sable’s future in the state.

Read more at Yahoo Finance: Texas Producer Battles California to Restart Offshore Oil Platforms