Governor Gavin Newsom criticized President Trump and White House Press Secretary Karoline Leavitt for claiming energy dominance while fuel prices surge, with gas prices up 94 cents per gallon over the past year. The dispute involves competing proposals to address fuel costs, including Illinois Governor Pritzker's support for E15 biofuel and Transportation Secretary Sean Duffy's defense of reopening Sable Offshore Corp's pipeline off California's coast.

Illinois Governor JB Pritzker is pushing Congress to make E15 fuel available year-round to lower gas prices and support corn farmers, while criticizing President Trump for prioritizing corporate donors over consumers. The move comes amid escalating Middle East tensions and rising fuel costs, with national gas prices averaging $4.118/gallon. E15 sales surged 23% in 2025 to 1.52 billion gallons, though the fuel blend has drawbacks including lower fuel economy and potential engine damage.

The Trump Administration issued an emergency order to restart the Santa Ynez Pipeline System in California, owned by Sable Offshore, to increase U.S. oil supplies amid the Iran war and constrained global markets. The pipeline, shut down since a 2015 oil spill, is expected to deliver 50,000 barrels per day by April 1. However, Sable faces significant legal and regulatory risks as California seeks to block the project, creating uncertainty for the company's operations.

Sable Offshore (NYSE:SOC) faces a pivotal moment as President Trump considers using Defense Production Act powers to restart its California offshore oil pipeline, which has been offline since a 2015 spill. While the DOJ opinion supporting federal preemption of California regulations has boosted the stock, California's lawsuit and allegations of insider trading involving CEO Jim Flores and golfer Phil Mickelson create significant headwinds. Short sellers argue the company is running out of cash, while the stock experiences extreme volatility amid overlapping legal and political battles.

Sable Offshore Corp. (NYSE:SOC) disclosed that the SEC and federal prosecutors in New York have issued subpoenas for company documents regarding allegations that the company shared sensitive non-public information with select high-profile investors, including Phil Mickelson, while excluding others. The company faces potential civil and criminal penalties. SOC shares have dropped over 70% in the past six months and were trading down 8.88% at $8.22.

Sable Offshore's stock surged 30% following a December 31, 2025 U.S. Court of Appeals ruling that denied environmental groups' request to halt the Las Flores pipeline restart. The 9th Circuit decision, combined with a federal permit issued by PHMSA on December 22, allows the company to resume oil production from its Santa Ynez Unit facility, potentially generating 45,000 barrels per day. This removes the company's pre-revenue status and enables refinancing of its $900 million ExxonMobil loan at lower rates. Analysts project 60-70% upside potential, though execution risks and continued legal challenges remain.

U.S. stock futures showed mixed performance on Monday with the Dow rising 0.03% while S&P 500 and Nasdaq 100 declined 0.22% and 0.42% respectively. The market faces a light week with New Year's Day closure on Thursday. Key movers include Target (activist investor stake), Coupang (data breach settlement), Taiwan Semiconductor (earthquake concerns), Bolt Projects (strong revenue growth), and Sable Offshore (pipeline lawsuit). Treasury yields held steady at 4.11% (10-year) and 3.47% (2-year), with markets pricing an 82.8% probability of unchanged Fed rates in January.

Sable Offshore's stock plummeted 13.49% on December 26, 2025, after environmental groups including the Sierra Club filed a lawsuit to challenge a federal regulator's decision approving the restart of the Las Flores pipeline in California. The Department of Transportation's Pipeline and Hazardous Materials Safety Administration had ruled that the pipeline falls under federal rather than state oversight, but the lawsuit seeks an emergency stay to halt the restart. The pipeline has a troubled history, including a 2015 spill of over 100,000 gallons of oil.

Sable Offshore surged 36% on December 23, 2025, after federal regulators approved the restart of its Las Flores Pipeline System in California. The approval shifts oversight from California to federal regulators, providing more certainty for the company's operations. However, the ruling is expected to face challenges from lawmakers and environmental groups. The broader market saw modest gains with the S&P 500 up 0.44% and Nasdaq up 0.57%.

Sable Offshore's stock surged 68% after-hours following federal confirmation that its Las Flores Pipeline qualifies as an interstate pipeline facility, transitioning regulatory oversight from California to the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Law firm Bragar Eagel & Squire is investigating Sable Offshore Corporation for potential breaches of fiduciary duties related to a stock offering and claims about oil production restart, following a class action lawsuit filed in July 2025.

Multiple energy stocks experienced significant price movements during Monday's after-market trading session, with some stocks seeing notable gains and others experiencing declines.