Energy Secretary Chris Wright revealed Sunday that the federal government is intervening in California’s offshore energy sector as part of a broader strategy to stabilize skyrocketing fuel prices. Appearing on NBC’s “Meet the Press,” Wright detailed several “actions” intended to offset supply disruptions caused by the ongoing conflict in Iran and the subsequent bottleneck in the Strait of Hormuz.
The regional instability began following “Operation Epic Fury” on February 28. In response to military strikes, Iran attempted to block transport vessels from the Strait of Hormuz, a critical maritime corridor that handles roughly 20% of global oil demand. The resulting reduction in shipping volume pushed crude prices above $103 a barrel by Friday.
To counter the surge, Wright highlighted a coordinated global effort involving more than 30 nations to release 400 million barrels of oil. However, the administration’s most pointed move involves a direct confrontation with California’s environmental policies.
“Heck, we just announced yesterday bringing on a meaningful amount of oil production in the state of California from offshore that California has fought foolishly to prevent,” Wright told host Kristen Welker. “We said, ‘Enough is enough.’”
READ: Iran Says “Strait Of Hormuz Is Open,” But Blocking U.S. And Israeli Ships
On Friday, the Department of Energy (DOE) ordered Texas-based Sable Offshore Corp. to restart a California pipeline system. The DOE stated the move was necessary to address “supply disruption risks” and claimed that the state’s reliance on foreign oil—over 60% of which is refined in-state from overseas sources—poses a national security threat. The department noted that while California once provided nearly 40% of U.S. production, output has plummeted due to state-level restrictions.
California Governor Gavin Newsom immediately challenged the federal order. Newsom characterized the maneuver as an “illegal” attempt to restart a pipeline currently entangled in criminal charges and court prohibitions.
“California will not stand by while the Trump administration attempts to sacrifice our coastal communities, our environment, and our $51 billion coastal economy,” Newsom said in a Friday statement.
Despite the friction and Iranian threats of $200-per-barrel oil, Wright expressed optimism regarding the duration of the conflict. He dismissed Iranian price projections, citing the country’s long-standing hostility toward the U.S., and suggested a “likely time frame” of a few weeks for the conflict to conclude.
“Depending upon the timing and the manner in which this conflict comes to an end, we’re going to see some elevated pricing until we get there,” Wright acknowledged, though he maintained that domestic and coordinated international actions would serve as a “trick up the sleeve” to prevent a total price collapse.
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