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Exxon Mobil's Offshore Restart Thwarted: Trucking Crude Plan Rejected

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Exxon Mobil (XOM) faces a significant setback in its bid to revive oil platforms off California's coast. The company's offshore platforms, part of the Santa Ynez Unit, have been inoperable since a 2015 pipeline rupture resulted in the state's largest coastal oil spill in 25 years. With a projected five years required for pipeline repair or replacement, Exxon had proposed an interim solution: shipping crude to onshore refineries via trucks. This would involve dispatching almost 25,000 tanker trucks yearly on the coastal Highway 101 and State Route 166.

In 2022, the Santa Barbara County Board of Supervisors had turned down Exxon Mobil's trucking plan with a 3-2 vote. This week, US District Judge Dolly M. Gee in Los Angeles upheld the board's decision. Judge Gee emphasized that while Exxon is entitled to operate its offshore platforms, this does not confer a right to transport the crude via trucks, especially considering the potential safety hazards on Route 166.

The oil conglomerate had argued that the board's decision was essentially a referendum on offshore production. Joan Hartmann, the Board Chair, however, highlighted the broader implications of the climate crisis as a rationale for her dissenting vote.

Various stakeholders weighed in post-judgment. While Exxon refrained from immediate comment, environmental advocates lauded the verdict. Liz Jones from the Center for Biological Diversity remarked, "It’s time for Exxon to accept that the community won’t support drilling and transporting oil in their backyard." She emphasized the environmental risks, asserting that "the costs of oil spills are too high to risk."

About the Author

David Love is an editor at Quiver Quantitative, with a focus on global markets and breaking news. Prior to joining Quiver, David was the CEO of Winter Haven Capital.

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