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Posts Tagged ‘Sable Offshore’

Sable restarts production!!!

Posted in California, Offshore Energy - General, pipelines, tagged , , , , on May 19, 2025| Leave a Comment »

05/19/2025

HOUSTON–(BUSINESS WIRE)— Sable Offshore Corp. (“Sable,” or the “Company”)(NYSE: SOC) today announced that as of May 15, 2025, it has restarted production at the Santa Ynez Unit (“SYU”) and has begun flowing oil production to Las Flores Canyon (“LFC”). Additionally, with the completion of the Gaviota State Park anomaly repairs on the Las Flores Pipeline System (the “Onshore Pipeline”) on May 18, 2025, Sable has now completed its anomaly repair program on the Onshore Pipeline as specified by the Consent Decree, the governing document for the restart and operations of the Onshore Pipeline.

Seven of the eight sections of the Onshore Pipeline have been successfully hydrotested. Sable will complete the final hydrotest in order to meet the final operational condition to restart the Onshore Pipeline as outlined in the Consent Decree. Sable expects to fill the ~540,000 barrels of crude oil storage capacity at LFC by the middle of June 2025 and subsequently recommence oil sales in July 2025.

Production Restart

  • On May 15, 2025, Sable initiated the flow of oil production from six wells on Platform Harmony of the SYU to LFC at a rate of ~6,000 barrels of oil per day.
  • Sable has been testing wells on Platform Harmony throughout May 2025 and the well tests have performed consistently stronger than they did at the time of shut-in on May 19, 2015 when the SYU produced approximately 45,000 barrels of oil equivalent per day.
  • Approximately 30% of the 32 producing wells at Platform Harmony have been tested as of May 18, 2025 with the remaining Platform Harmony wells projected to be tested over the course of the next several days.
  • Sable expects to initiate production from the additional 44 wells on Platform Heritage and the additional 26 wells on Platform Hondo in July 2025 and August 2025, respectively.

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Sable Offshore Sues Santa Barbara County over Blocked Transfer Permit

Posted in California, Offshore Energy - General, Regulation, tagged , , , , , on May 13, 2025| Leave a Comment »

A good Nick Welsh, Santa Barbara Independent article has been brought to my attention by John Smith. Bonus points for the baseball analogy:

“In baseball, ties famously go to the baserunner, but in county government it’s forced a legal fight in the courts.”

“The oil company Sable Offshore is insisting that when the County Board of Supervisors voted 2-2 on whether or not to allow another oil company, Exxon, to transfer its permits to Sable, the tie goes to Sable.”

“Accordingly, Sable — much in the limelight recently — just filed a lawsuit against the Santa Barbara County Board of Supervisors in federal court to make that point. Joining Sable in this dispute is ExxonMobil, the oil giant that sold Sable its three offshore platforms, its 120-mile pipeline, and its onshore oil storage and processing facilities known as the Santa Ynez Unit two years ago.”

Because the Planning Commission had voted  3-1 to allow the transfer, Sable argues that the 2-2 Supervisors vote upholds the Planning Commission decision.

Never a dull moment in the Santa Ynez Unit restart doneybrook. More on the tie vote here and here.

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Sable clears another hurdle

Posted in California, Offshore Energy - General, Regulation, tagged , , , , , , on May 12, 2025| Leave a Comment »

John Smith reports that Sable has cleared another significant hurdle in its attempt to restart production in the Santa Ynez Unit. The California DEPARTMENT OF PARKS AND RECREATION has determined that no permit is required for the pipeline anomaly digs in Gaviota State Park (see attached).

The reasons for the exemption are that the project consists of repairs to an existing facility with no expansion of use, and the footprint of the pipeline remains the same.

Maybe the SYU restart is not Mission Impossible after all.

Gaviota S.P. – Pacific Pipeline Anomalies 2025 NOEDownload

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Restraining order on Sable denied; EDC calls for “All Hands on Deck;” hedge funds are buying Sable shares

Posted in California, Offshore Energy - General, tagged , , , , on April 22, 2025| Leave a Comment »

The roller coaster ride continues!

From the Santa Barbara Independent:

California Attorney General Rob Bonta unsuccessfully requested that a Santa Barbara Superior Court judge issue a temporary restraining order on the Texas-based oil company for defying a cease-and-desist order issued last week by the California Coastal Commission.

Initially, Judge Anderle planned on granting the restraining order at Bonta’s request in his tentative ruling. However, his opinion changed after reading Sable’s opposition documents in the courtroom on April 17. 

Arguments for a preliminary injunction will be heard on May 14. 

Meanwhile, in an “All Hands on Deck” message to their mailing list, the Environmental Defense Center (EDC) predicts doom and gloom unless supporters answer their fundraising call:

This fight is now in a critical phase. We need your help to ensure EDC can continue to present the strongest defense against Sable’s dangerous proposal.

EDC photo

Lastly, Market Beat reports the following large purchases of Sable shares. Those investors better have a high risk tolerance!

  • Harraden Circle Investments LLC bought 220,000 shares of Sable Offshore stock. Sable now accounts for approximately 4.6% of Harraden’s investment portfolio, making the stock its 9th largest position.
  • State Street Corp boosted its stake in shares of Sable by 74.3% during the 3rd quarter. State Street Corp now owns 1,589,395 shares of the company’s stock after acquiring an additional 677,426 shares in the last quarter.
  • Vanguard Group Inc. boosted its holdings in Sable Offshore by 23.6% in the 4th quarter. Vanguard now owns 3,486,126 shares of the company’s stock.
  • Emerald Advisers LLC bought a new stake in shares of Sable Offshore in the fourth quarter valued at about $6,700,000.
  • Bridgewater Associates LP acquired a new position in Sable Offshore in the 4th quarter valued at approximately $4,693,000.
  • Renaissance Technologies LLC grew its holdings in shares of Sable Offshore by 313.8% during the 4th quarter. Renaissance now owns 269,800 shares of the company’s stock worth $6,178,000 after purchasing an additional 204,600 shares in the last quarter.

26.19% of Sable’s stock is owned by hedge funds and other institutional investors.

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Straight talk about the Coastal Commission

Posted in California, energy policy, pipelines, Regulation, tagged , , , on April 17, 2025| Leave a Comment »

The Santa Barbara Independent doesn’t pull any punches in this article about the once invincible California Coastal Commission. I recommend that you read the entire article, but here are some choice excerpts (emphasis added):

Lastly, it’s totally unprecedented for members of the commission to verbally eviscerate energy planners with Santa Barbara County at a public hearing for refusing to provide them requested planning documents having to do with Sable no fewer than seven times. While the county has denied this charge, no one from the county showed up for last week’s meeting to explain their actions. One commissioner termed this absence a “dereliction of duty.”

What actions and outcomes ultimately emerge from this rancor remain far from obvious. That’s in part because the political support enjoyed by the Coastal Commission — long regarded as one of California’s many “third rails” of state politics — has never been so uncertain. By “uncertain,” I mean rarely has any state agency been so reviled by such a wide swath of political players and stakeholder groups.

The question has become not so much who hates the Coastal Commission — it’s who doesn’t. Donald Trump has hated the commission since it objected to a 70-foot flagpole Trump planted on a beachfront golf course he owned back before he became president.

Elon Musk, Trump’s alter ego, sued the Coastal Commission — and lost — over the commission’s outspoken refusal to grant him the “consistency determination” he needed to increase the number of SpaceX rocket launches from Vandenberg Space Force Base from 35 to 50. Although a federal judge would rule in the commission’s favor, Governor Gavin Newsom, a noted Democrat, announced he was siding with Musk on this one. 

So, what happens if Sable doesn’t pay the fine? Or keeps on working despite three cease-and-desist orders? The key question — still loudly unanswered — is what Attorney General Rob Bonta will do. Will Bonta throw his considerable heft behind the commission? He hasn’t yet. And it’s been several months. Does the governor want to pick his battles with the Trump-Musk White House for causes that enjoy more broad public support?

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Sable fined $18 million for refusing to be bullied

Posted in California, energy policy, Offshore Energy - General, Regulation, tagged , , , , on April 11, 2025| Leave a Comment »

Sable supporter Trent Fontenot calls out the CCC for government overreach.  Daniel Green / Noozhawk photo

Yesterday, the California Coastal Commission voted 8-3 to fine Sable Offshore $18,022,500 for performing pipeline repairs necessary to minimize operating risks and comply with the FIre Marshall’s requirements.

In the minds of at least some commissioners, Santa Barbara County, which reached agreement with Sable on pipeline repairs, is also a villain in this matter. Per Commissioner Harmon:

“We have not gotten a foothold with Sable, and we’ve not gotten a foothold with Santa Barbara County either. So, we are where we are, and because of this absolute failure of communication and Sable’s, to be frank, absolute failure to follow the law, this hearing has become necessary,” Harmon said.

We’ll see how this gets sorted out in the courts. Sable appears to have a strong case against the Commission, but litigation in California courts is not exactly ideal for oil companies.

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John Smith comments on the Coastal Commission’s Staff Report on the Sable Cease and Desist Order

Posted in California, energy policy, Offshore Energy - General, Regulation, tagged , , , , , , on April 9, 2025| Leave a Comment »

BOE contributor John Smith has shared (attached) his highlighted version of the 89 page California Coastal Commission staff report recommending imposition of a $15 million fine. 

John finds it noteworthy that the report documents that Santa Barbara County did not concur with the CCC, and that the California State Lands Commission approved the span remediation work. John thinks this raises legitimate questions as to whether the CCC is overreaching in terms of asserting permitting authority for the repair and maintenance work. 

John thinks it will be interesting to see how the Courts rule on this and expects an appeal regardless of the outcome. He points to the Court ruling against the CCC on Pismo Beach offroading case as being pertinent to the Sable-CCC dispute. (“Is the Friends of Oceano Dunes court victory a good omen for Sable?“)

In particular, note the text John has highlighted in green. These issues will likely be central to the Court deliberations.

CCC Staff Report -$15 Million Penalty 032825Download

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SYU restart: Mission Impossible for Sable?

Posted in California, Offshore Energy - General, pipelines, Regulation, tagged , , , , , , on April 3, 2025| Leave a Comment »

It’s starting to look that way.

“The State Fire Marshal stated on February 25 — during a packed-house meeting at La Cumbre Junior High School — that he would not issue Sable authorization to restart production at the Santa Ynez Unit until all outstanding permit issues between Sable and the eight state agencies with oversight authority are resolved.“

Although Sable has a good defense against the Coastal Commission’s accusations, that statement by the Fire Marshal is ominous.

More bad news for Sable: The Center for Biological Diversity suit challenging the Federal government’s extension of the 16 Santa Ynez Unit leases is not going well. The government requested a voluntary remand of BSEE’s 2023 approval because “BSEE plans to reconsider its decision in light of Plaintiffs’ claims and conduct additional analysis, as warranted, under OCSLA and NEPA.”

In the attached decision, shared by John Smith, the judge denied the Federal government’s request. This does not bode well for the Federal government’s case going forward.

Court Denies BSEE Motion for Remand of SYU Lease extensions 032125Download

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Is the Friends of Oceano Dunes court victory a good omen for Sable?

Posted in California, Regulation, tagged , , , , , on March 27, 2025| Leave a Comment »

The organization Friends of Oceano Dunes is determined to preserve the long history of off-road vehicle use on Pismo-Oceano beach. See the video below and the historic photos from Bob2000.com.

The Coastal Commission, which dislikes off-road vehicles as much as they dislike offshore oil and gas operations (well maybe not quite that much! 😉) lost a court case with some similarities to the suit filed by Sable Offshore.

Noozhawk: In an opinion filed Monday, the Second Circuit Court of Appeals found that the commission’s attempt to ban off-road vehicles at the Dunes contradicts the language of the Local Coastal Plan put in place by San Luis Obispo County.

The Court ruled that the decision to open or close the Dunes to vehicles fell under the jurisdiction of the county, not the Coastal Commission.

Sable’s dispute with the Commission is similar in that Sable contends that their pipeline repair and maintenance activities are in compliance with Santa Barbara County’s Coastal Zoning Ordinance, Local Coastal Program (LCP), and the Coastal Act. Will Sable also be victorious in Court?

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Sable revises projected SYU restart date; still unrealistic?

Posted in California, Offshore Energy - General, pipelines, Regulation, tagged , , , , on March 21, 2025| Leave a Comment »

Attached is a recent Sable Offshore presentation for investors. Notably, Sable is now projecting to resume Santa Ynez Unit production in Q2 2025 (see slide below). John Smith thinks this is unrealistic, and I have to agree.

It’s tough for an offshore producer to succeed in California, but Sable is making a strong effort. Exxon must agree, because they have extended Sable’s first production deadline to 3/1/2026, which reflects a more plausible Q1 2026 restart. Additional extensions seem likely if necessary given that Exxon’s other options aren’t very attractive.

Sable-Offshore-Corp-Investor-Presentation_March-2025_v20_exportDownload

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