Sable Offshore Corp ( SOC ) shares are surging Wednesday afternoon after Bloomberg reported that President Donald Trump is preparing to invoke the Defense Production Act to override state-level barriers and ease permitting for Sable's offshore California operations, a potential breakthrough for a company whose restart plans have long been stalled.

Here’s what investors need to know.

Sable Offshore ( SOC ) stock is among today’s top performers. Why is SOC stock up today?

Trump Move Could Revive Sable's Stalled California Oil Production

According to Bloomberg, the administration's move would aim to help revive production from Sable's offshore platforms near the Santa Barbara coast as the White House looks for ways to ease an oil supply crunch tied to the war in Iran and disruptions in the Strait of Hormuz.

Bloomberg said California depends heavily on foreign crude, with roughly 30% of those imports normally moving through Hormuz, making any new in-state supply politically and economically significant.

Investors likely see Bloomberg's report as improving Sable's chances of restarting operations, regaining access to key infrastructure and eventually producing revenue.

Sable has said initial output could reach roughly 45,000 to 55,000 barrels a day, which would matter for California supply even if it would remain modest relative to nationwide consumption. The rally also suggests investors believe federal support could overcome years of regulatory resistance and a recent federal investigation.

Hunterbrook Previously Warned Sable Facing Cash Burn, Liabilities

Still, the excitement comes after Hunterbrook reported in November that Sable was burning cash rapidly, faced major liabilities and still needed billions to reach full commercial production.

SOC Stock Surges Wednesday Afternoon

SOC Price Action: Sable Offshore ( SOC ) shares were up 12.35% at $16.19 at the time of publication on Wednesday, according to Benzinga Pro data.

Image: Shutterstock