In a resounding victory for American energy independence, the Department of the Interior (DOI) has successfully facilitated the restart of oil production at the Santa Ynez Unit (SYU) off the coast of California. This achievement, announced on July 25, 2025, marks a pivotal step in the Trump-Vance Administration’s push for Energy Dominance, emphasizing the safe and efficient utilization of domestic resources to reduce reliance on foreign oil. After a decade-long shutdown following a 2015 oil spill, the SYU—home to platforms Harmony, Heritage, and Hondo—is poised to unlock approximately 190 million barrels of recoverable oil reserves, representing nearly 80% of remaining Pacific reserves and about 3% of the total U.S. production potential.
The restart, led by Sable Offshore Corp after acquiring assets from ExxonMobil in February 2024, has already seen production resume at Platform Harmony, with plans to bring Heritage online by October 2025 and all three platforms fully operational by year’s end. Each platform could yield up to 10,000 barrels per day (bpd), potentially adding 30,000 bpd to U.S. output in a matter of months.
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BSEE Principal Deputy Director Kenneth Stevens hailed this as a “comeback story for Pacific production,” crediting President Trump’s leadership for turning “a decade-long shutdown into results, not delays.”
This move aligns perfectly with the administration’s goal of unleashing American energy safely and timely, ensuring environmental protections while bolstering domestic supply.
The Shadow of California’s Energy Policies: Shutdowns Under Governor Newsom
This federal win stands in stark contrast to the restrictive energy policies implemented under California Governor Gavin Newsom, which have systematically curtailed domestic oil production on the West Coast. Since Newsom took office, drilling permits have plummeted from thousands annually to mere dozens, with many focused on maintenance rather than new wells.
This has accelerated the decline in California’s oil output, which dropped by 40% since 2000, transforming the state from a self-sufficient producer—once meeting 95% of its demand domestically alongside Alaska—to one importing over 65% of its crude from foreign sources.
Key refinery shutdowns, such as those at Benicia Valero and Wilmington Phillips 66, further exacerbate the crisis, leaving Northern California vulnerable with limited facilities and only 11-13 days of fuel inventory in case of disruptions like earthquakes.
Newsom’s net-zero emissions plan, including aggressive EV mandates (51% by 2026 and 100% by 2035), has strained the economy and logistics, prompting threats from major companies to relocate.
These policies not only hinder production but also inflate energy costs, contributing to national inflation given California’s role in handling 40% of U.S. imports through its ports.
National Security Risks: From Self-Reliance to Foreign DependenceThe fallout from these state-level decisions extends far beyond California, posing significant national security risks. With 34 military bases in the state relying on diesel and jet fuel, the increased dependence on imports—from nations like Russia, Iran, Ecuador, Saudi Arabia, Iraq, and Colombia—creates vulnerabilities in supply chains.
California’s transportation fuel demands are massive: 13 million gallons of aviation fuel, 10 million gallons of diesel, and 42 million gallons of gasoline daily, while also supplying much of Arizona and Nevada’s needs.
The lack of pipelines across the Sierra Mountains isolates markets, amplifying risks from foreign disruptions or global shipping emissions.In 2024, California refineries sourced only 23.3% of their crude from in-state production (118,733 thousand barrels annually) and 13.3% from Alaska (67,879 thousand barrels), leaving 63.5% (324,037 thousand barrels) from foreign countries.
Nationally, while the U.S. achieved record production of 13.3 million bpd in 2024 and became a net exporter, regional dependencies like California’s undermine overall energy security.
Experts argue that California’s net-zero push, contributing just 0.75% to global emissions, unjustifiably exports “bad policy” to states like Colorado, eroding U.S. energy dominance.
Untapped Potential: Boosting Production in Alaska and California to Cut Imports
To counter this, the U.S. must ramp up production in Alaska and California, where vast reserves remain untapped. California’s in-state production supplied only about 25.8% of refinery needs in 2022, but with policy reversals, subsurface resources could be leveraged for increased output and even innovative solutions like geologic thermal energy storage.2 sources
Alaska, despite a recent CNBC ranking as the 50th state for business due to oil price volatility and a 1.5% GDP growth in 2024, holds immense promise.
The state produced 461,000 bpd in fiscal 2024, with 40-50 billion barrels of conventional oil remaining and 125 trillion cubic feet of natural gas reserves—second only to Texas.
New projects like ConocoPhillips’ Nuna and Pikka could boost output by 16,000 bpd in 2026, with forecasts showing growth to 422,000 bpd in 2025.
Increasing Alaskan production could generate $30 billion annually at $70 per barrel, double state revenues, and directly supply California, reducing its foreign imports by displacing up to 70% of current crude needs.
Combined, enhanced production from these states could replace a substantial portion of California’s 324 million barrels of annual foreign imports, enhancing U.S. security and economic benefits like higher Permanent Fund dividends for Alaskans ($5,000-$6,000 per resident) and job creation.
Federal interventions, such as removing tax-exempt status from obstructive NGOs and prioritizing domestic drilling, are essential to realize this potential.
A Path Forward: Energy Dominance Through Domestic Strength
The DOI’s swift action on the SYU restart exemplifies how safe, timely policies can reclaim American energy leadership. By reversing the damaging effects of state-level restrictions and tapping into Alaska and California’s reserves, the U.S. can significantly reduce foreign imports, strengthen national security, and foster economic growth. As Stevens aptly put it, “American energy should come from American resources.”
It’s time for more such wins to ensure a secure, prosperous energy future. How the Trump adminstration handles the California National Security Risk imposed on the rest of the country by Gavin Newsom has yet to be played out. This is one of the critical stories for how the Trump Administration’s economy will unfold. This is as significant as the tariff wars, as it has the potential to revive inflation and undermine the vision of “Energy Dominance”.
My bet is on the Trump Adminstration’s key leaders in the Department of the Interior, Department of Energy, and the EPA.
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