Sable Offshore struggles to maintain operations as California's refining sector consolidates to 11 sites, forcing the company to seek new buyers for its heavy crude while managing a precarious $38 million cash balance.
Sable bought the Santa Ynez complex from ExxonMobil in 2024 for $643 million, restarted Harmony production in May 2025, but faces a cash crunch, and California's refining sector has shrunk to 11 sites with 1.34 million b/d capacity, with foreign suppliers at 61% of refinery feedstock in 2025. This narrows outlets for Sable's local crude, raising the risk it must export its crude, undermining the project's economics.
Sable Offshore is navigating a severe liquidity crisis after its sole crude buyer, Chevron, halted purchases in October. Despite securing new agreements with Marathon and PBF Energy, the company faces significant operational hurdles, including a $165 million to $175 million Q4 spending requirement and the challenge of selling heavy, high-sulfur crude in a shrinking California market.
California is closing refineries, so there are fewer local buyers for the crude Sable produces offshore Santa Barbara, and the company already has liquidity problems. If it has to ship its oil away instead of selling locally, the project makes less money.
Yes, the company announced in May 2025 that it restarted production from the Harmony platform, after buying the assets from ExxonMobil in 2024 for $643 million.