🕒 Last updated on September 9, 2025
California’s governor is moving ahead with a plan that could make it harder for offshore oil projects to restart. A new legislative package is being prepared that would place tougher rules on inactive oil pipelines in the state.
New restrictions on offshore oil pipelines
The main focus is on pipelines that carry crude oil from offshore fields to refineries on land. Under the proposal, any company wanting to restart an idle pipeline would need to undergo stricter safety testing. The idea is to ensure that the aging pipes do not pose risks of spills or leaks.
This would have a direct effect on a controversial project off the Santa Barbara County coast. The pipeline there has been out of service since 2015, when a major rupture released more than 140,000 gallons of crude oil into the ocean. The spill badly damaged the shoreline, harmed wildlife, and triggered public outrage. The line was shut down and has remained idle since then.
Now, a Texas-based company wants to bring that same pipeline back to life. But if the new law passes, the restart would face extra hurdles. It would likely require more inspections, pressure tests, and safety upgrades before any oil could flow again.
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Officials say these rules are being put forward to reduce the chance of another disaster along the coast. They argue that offshore pipelines are particularly risky because leaks can quickly spread in the ocean and are harder to control than spills on land.
A balancing act with onshore drilling
While tougher restrictions are planned for offshore operations, the same package includes changes that could actually make it easier to drill for oil inland. The governor has been working on a plan to streamline certain permits for onshore wells in California’s interior.
This means companies drilling away from the coast—in fields scattered across the state’s valleys and deserts may get faster approval to expand production. The state’s largest onshore producers include well-known energy companies that have been active in California for decades.
The move reflects a balancing act. On one side, leaders want to protect the coastline and prevent another high-profile spill. On the other, they are trying to stabilize the state’s petroleum market and keep gasoline supplies steady.
Gasoline prices in California are already the highest in the country. Over the years, tighter rules and refinery closures have reduced local output. That has raised fears of shortages and cost spikes for drivers. By allowing more inland drilling, officials hope to prevent prices from rising even further.
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The proposal has already drawn attention from local representatives in coastal areas. Some have pointed out that offshore oil has historically posed serious dangers to both people and the environment. They believe stronger safeguards are overdue and welcome the chance to strengthen protections.
Industry and political reactions
The energy industry has been watching these changes closely. Companies hoping to restart pipelines or drill new wells are weighing the costs of new requirements against the potential benefits of increased production. Some businesses worry that additional restrictions could slow projects to the point of making them unprofitable.
The governor’s office has emphasized that the overall goal is to strike a balance. A spokesperson explained that the administration is working with lawmakers on policies that ensure California has a safe, reliable, and affordable supply of fuels while still protecting communities.
This is not the first time that state leaders have shifted their approach to oil and gas. Over the years, regulatory pressure has grown, leading to falling production levels. At the same time, demand for fuel has remained strong, leaving the state to import more oil from other regions.
The debate has also stirred reactions among environmental groups. Some have criticized the idea of loosening rules for inland drilling, saying it undercuts efforts to fight pollution and climate change. Others see the tougher offshore restrictions as a positive step but want the state to go further.
Lawmakers representing coastal regions have said they support measures that safeguard communities from pollution and economic damage linked to spills. They argue that the health of people, local businesses, and the environment should come before expanding oil output.
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As the negotiations continue, the proposed package is expected to be included in legislative text this week. Once written into the bill, it will move forward for formal debate. The decisions made in this process will directly shape the future of offshore and onshore oil in California.