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“Mandating a restart of these defective oil pipelines won’t curb high gas prices, but it will put coastal wildlife at huge risk of another oil spill," one advocate said.
State leaders and environmental advocates responded with outrage after the Trump administration on Friday ordered the restarting of a California pipeline that caused one of the largest oil spills in the state's history, a move that comes as oil prices have skyrocketed following President Donald Trump's launching of an illegal war against Iran and Iran's subsequent closure of the Strait of Hormuz.
After Trump issued an executive order on Friday authorizing the Department of Energy (DOE) to ramp up oil and gas development under the Defense Production Act, Energy Secretary Chris Wright ordered Sable Offshore Corp. to restart operations on the Santa Ynez Unit and Pipeline System, which include an offshore rig and a network of offshore and onshore pipelines along the Santa Barbara coast. Among them is a pipeline that ruptured in 2015, spilling around 450,000 gallons of oil into Refugio State Beach and killing hundreds of marine mammals and sea birds.
“Californians have repeatedly rejected dangerous drilling off our coast for decades," Sen. Alex Padilla (D-Calif.) said in a statement on Saturday. "Now, after dragging the US into a war with Iran and driving up oil prices, the Trump administration is trying to exploit this crisis to further enrich the oil industry at the expense of our communities and our environment."
In his statement, Wright emphasized the defense benefits of resuming drilling, arguing that "today’s order will strengthen America’s oil supply and restore a pipeline system vital to our national security and defense, ensuring that West Coast military installations have the reliable energy critical to military readiness.”
“Directing a private oil company to push its project through without safety checks and adherence to California laws that keep our coast safe is appalling and illegal."
The DOE added that "Sable's facility can produce approximately 50,000 barrels of oil per day, a 15% increase to California’s in-state oil production, that can replace nearly 1.5 million barrels of foreign crude each month."
Yet, far from a novel response to an unexpected emergency, the order is actually an escalation in a preexisting battle between California and the Trump administration over the future of the pipeline system. The state's Attorney General Rob Bonta sued to stop the administration from a federal takeover of two of the pipelines in January.
Sable also faces several lawsuits due to its attempts to restart the system after it purchased it from ExxonMobil in 2024, and has not yet cleared all of the state permitting requirements, according to the Center for Biological Diversity.
"In its latest brazen abuse of power, the Trump administration is attempting to seize exclusive federal control over two of California’s onshore pipelines," Bonta said on social media Friday evening. "We will not stand by as this administration continues their unlawful all-out assault on California and our coastlines, and we are reviewing all of our legal options."
California Gov. Gavin Newsom also spoke out against Wright's announcement.
"Trump knew his war with Iran would raise gas prices," he wrote on social media. "Now he wants to illegally resurrect a pipeline shut down by courts and facing criminal charges. And it won't even cut prices. I refuse to let Trump sacrifice Californians, our environment, or our $51 billion coastal economy."
The Center for Biological Diversity noted that this order would mark the first time that the Defense Production Act was used to force an oil company to restart out-of-use Infrastructure and to disregard the state permitting process.
“This is a revolting power grab by an extremist president. Trump is misusing this Cold War-era law just to help a Texas oil company skirt vital state laws that protect our coastline, and Californians will pay the price,” Talia Nimmer, an attorney for the center, said. “Mandating a restart of these defective oil pipelines won’t curb high gas prices, but it will put coastal wildlife at huge risk of another oil spill. Overriding state law to let an oil company restart pipelines sets a radically dangerous precedent. It’s clear that no state is safe from Trump.”
The center also promised to push back against the order.
“Directing a private oil company to push its project through without safety checks and adherence to California laws that keep our coast safe is appalling and illegal,” Nimmer said. “We’re exploring all legal avenues. This dangerous action should be swiftly blocked by the courts.”
The Center for Biological Diversity estimates that Trump's new five-year offshore drilling plan could release over 12 million gallons of oil into ocean waters around the US.
President Donald Trump's plan to dramatically expand offshore drilling could result in thousands of additional oil spills and put dozens of endangered species at increased risk, according to a new analysis by a leading conservation group.
In November, the US Department of the Interior published a draft plan to expand drilling over the next five years, replacing a more restrictive one drawn up by the Biden administration.
The proposal includes as many as 34 potential offshore lease sales across American coasts, covering approximately 1.27 billion acres, far more than previous administrations have offered.
The new plan opens up drilling in 21 areas off the coast of Alaska, seven in the Gulf of Mexico, and six along the Pacific Coast. These are in addition to 36 new offshore oil lease sales mandated in last year's Republican budget reconciliation package.
An analysis published Tuesday by the Center for Biological Diversity found that the increase in drilling could lead to an additional 4,232 oil spills and dump an extra 12.1 million gallons of oil into ocean waters.
The calculation is based on average spill rates from pipelines and platforms from 1974 to 2015. However, it does not even include catastrophic events like the 2010 BP oil spill, which resulted in more than 210 million gallons of oil being released into the Gulf of Mexico.
"Trump’s ridiculously reckless drilling plan could cause thousands of new oil spills, threatening almost every US coast,” said Kristen Monsell, the oceans legal director at the Center for Biological Diversity.
The group estimates, based on prior figures, that 2,627 of those spills—more than half—will occur in the Gulf of Mexico, releasing about 7.5 million gallons of oil into the ecosystem.
The Gulf is home to several endangered species likely to be affected by the new drilling. The black-capped petrel's population is in rapid decline as pollution has destroyed its food source. Rice's whale has only about 50 individuals remaining and lost 20% of its population in the BP spill. Kemp's ridley sea turtle, which has experienced a population rebound after dropping to near extinction, would be imperiled by another spill.
In the Pacific, sea otters are uniquely vulnerable to oil spills because they coat their fur, which acts as insulation against the cold. Killer and blue whales, whose populations have been nearly wiped out, would also be in danger.
Meanwhile, Arctic animals already affected by climate change—like bowhead whales, Pacific walruses, and beluga whales—all face potential further damage to their habitats due to drilling off the coast of Alaska.
“Nobody wants beaches and marine life coated in crude, but that’ll be our future if Trump’s scheme goes forward," Monsell said. "Every new drilling project signs us up for decades of problems, and our wildlife and coastal economies will suffer the most.”
By allowing an industry tax toward oil spill prevention and response to expire, GOP leaders are exposing the nation to the unnecessary risk of continued oil pollution, including major disasters like Exxon Valdez and Deepwater Horizon.
As Congress recesses this week without reauthorizing the Affordable Care Act subsidies needed by millions of Americans, it also quietly gave the oil industry a multimillion dollar tax break by allowing the 9 cent-per-barrel oil tax (on domestic and imported oil) into the federal Oil Spill Liability Trust Fund to expire as well on December 31. The OSLTF, administered by the Coast Guard’s National Pollution Funds Center, is the nation’s central financial instrument for oil spill prevention and response, earning about $500 million per year from the nominal excise oil tax—about 0.1% of annual US oil industry revenue.
In our current political climate prioritizing industry over public interest, many feared that Congress and the Trump administration might simply allow the oil spill tax to expire, as a “Return on Investment” for industry contributions made to their political campaigns. Congress did just that. As they increase costs for millions of Americans, the Republican congress and administration are decreasing costs for some of the richest companies in the world.
For decades, Congress and the administration have remained stubbornly resistant to using the OSLTF to fund necessary oil spill prevention measures across the nation, and as tax revenue and spill damage recoveries continued to be collected, the fund balance has now grown to over $10 billion. Since the fund’s use for a single oil spill is limited to $1.5 billion, we have long proposed that a substantial portion of the remaining balance be used to better prevent oil pollution across the nation. Instead of just leaving all of this money in the bank, it should be put to work, while saving enough (perhaps $5 billion) for conventional oil spill response activities.
A transcendent lesson learned in all major oil spills around the world is that once oil is spilled, there is precious little that can be done to limit environmental damage. Historically, an average of 2-6% of total spill volume is actually recovered in major marine oil spills (Deepwater Horizon was about 4%, Exxon Valdez about 8%). These multibillion dollar spill responses may look good for oil company and government public relations, but they are virtually irrelevant in limiting environmental harm. Prevention is key to environmental protection.
As a fundamental cause of the 1989 Exxon Valdez and the 2010 Deepwater Horizon disasters was inadequate government oversight, expanding drilling while cutting oversight is as reckless as it gets.
Spill prevention measures across the nation in need of more funding include enhanced Vessel Traffic Systems, escort-rescue tugs to prevent groundings and collisions of tankers and cargo ships in dangerous passages (e.g. the March 2024 cargo ship Dali collision with the Francis Scott Key bridge in Baltimore Harbor), enhanced inspection of oil and liquefied natural gas tankers, and so on. However, the federal government has resisted using the fund for such preventive measures.
With the OSLTF tax expiration approaching this summer, we proposed that the fund’s 9 cent-per-barrel tax on domestic and imported crude oil (less than 0.2% of today’s crude oil price, or less than one cent-per-gallon of gasoline) be fully reauthorized, and that the fund’s use for many oil spill prevention measures be significantly expanded. Congress and the administration were unresponsive, raising suspicions that they intended to allow the oil tax to expire, which they just did.
One proposed use for the fund is to safely cap and decommission the millions of derelict, abandoned oil and gas wells across the nation, both onshore and offshore. Regarding these orphaned and abandoned oil wells, a 2021 scientific paper found that, of the 4,700,000 historic and active oil and gas wells across the US, only 1 in 3 (1,500,000) are considered safely plugged. Leakage from improperly abandoned oil and gas wells causes groundwater and air pollution, ecological damage, risk of explosions, and damage to human health.
Costs for well decommissioning and abandonment have been estimated to range from $10,000-$50,000 to plug old, shallow wells; $300,000 for newer, deeper wells; and up to $1 million for more complex wells. In a 2015 study, the Government Accountability Office (GAO) estimated the cost to securely decommission the thousands of deepwater oil and gas wells in the US Gulf of Mexico (two-thirds of the 5,000 wells in the Gulf of Mexico are in deep water) at $38.2 billion. The GAO study reported that, of the $38.2 billion in decommissioning liabilities, $2.3 billion were not covered by existing financial assurances; and of the remaining $35.9 billion in decommissioning liabilities, the federal government held $2.9 billion in bonds and other assurances, while waiving the remaining $33 billion for companies that passed a “financial strength test.” The GAO expressed concern about such extensive waivers of financial assurances, as this exposes the federal government to substantial future costs.
Clearly, abandoned oil and gas wells present enormous oil pollution risk, public safety hazard, and substantial government financial liability that we as a nation have ignored for too long. We have to do better, and using the OSLTF for this purpose would clearly be in the national interest.
Further, while the Trump administration recently proposed opening virtually the entire US Outer Continental Shelf (more than 1 billion acres of the nation's offshore waters) to oil and gas drilling, it slashed the budget for the Department of Interior’s Bureau of Safety and Environmental Enforcement (BSEE) by roughly 35%, from $220 million to just $143 million. As a fundamental cause of the 1989 Exxon Valdez and the 2010 Deepwater Horizon disasters was inadequate government oversight, expanding drilling while cutting oversight is as reckless as it gets. Thus, an important use for the federal oil spill fund should be to expand BSEE's budget, as it is largely focused on preventing catastrophic oil spills from the nation's several thousand offshore oil rigs. There are countless other cost-effective pollution prevention measures as well that need OSLTF funding.
But with Congress and the Trump administration ignoring these real funding needs, and allowing the oil tax to expire (as a gift to their oil industry contributors), the nation remains exposed to unnecessary risk of continued oil pollution, including small chronic releases, as well as major disasters like the Exxon Valdez and Deepwater Horizon. So much for “government efficiency.” Hopefully Congress will come to its senses in 2026, and fix what it just broke.