Newsom to Curb Offshore Oil in Exchange for Onshore Output (2)

Governor Gavin Newsom is seeking to impose further restrictions on California’s offshore oil industry, a setback to Sable Offshore Corp. and its controversial project off the coast of Santa Barbara County.

The legislative package Newsom is proposing would see California demand stricter testing for restarting inactive intrastate oil pipelines, according to people familiar with the negotiations, who asked not to be identified discussing private deliberations.

Such a move would directly impact Houston-based Sable’s efforts to reactivate a pipeline that once carried crude north of Santa Barbara. The conduit was shuttered in 2015 while owned and operated by Plains All American ...