Trump considers invoking emergency powers to revive offshore oil production in California as the Iran conflict pushes crude prices higher.

Summary:

• President Trump is preparing to invoke the Defense Production Act to revive offshore oil production in southern California.

• The move would ease permitting and potentially override some state restrictions.

• Houston-based Sable Offshore Corp. is seeking to restart production from dormant offshore platforms.

• The initiative comes as oil prices rise amid the conflict with Iran and concerns over global supply disruptions.

• California relies heavily on imported crude and faces some of the highest fuel prices in the U.S.

• The proposal also reflects political pressure ahead of the November midterm elections.

nfo via a Bloomberg (gated) report)

U.S. President Donald Trump is preparing to invoke Cold War-era emergency powers in an attempt to revive offshore oil production off the southern California coast, a move aimed at easing pressure on global crude supplies following the energy shock triggered by the conflict with Iran.

According to people familiar with the plan, the administration is considering using the Defense Production Act (DPA) to override certain state-level restrictions and accelerate permitting for offshore drilling projects. The measure would specifically benefit Houston-based Sable Offshore Corp., which is seeking to restart production from a cluster of dormant offshore platforms in California waters.

The proposal reflects growing concern within the administration over rising energy prices and tightening global oil supply. The war with Iran has pushed crude prices sharply higher and heightened fears of disruptions to shipping routes in the Gulf, prompting policymakers to explore domestic supply options to stabilise markets.

By invoking the Defense Production Act, a law originally designed during the Cold War to mobilise industry in the interest of national security, the White House could potentially fast-track approvals and sidestep some state regulatory barriers that have historically limited new drilling activity along California’s coastline.

With the November midterm elections approaching, rising living costs, particularly fuel prices, have become a major political issue for voters. Expanding domestic oil production is being considered as one possible tool to help stabilise supply and reduce price pressures.

Even so, analysts say restarting offshore platforms would take time and may have only a modest impact on global supply, making the initiative more symbolic of the administration’s push to increase domestic energy output than an immediate solution to the global oil crunch.