Why These Energy Stocks are Gaining This Week

1. Sable Offshore Corp. (NYSE:SOC) 

Share Price Gains Between Dec. 12 and Dec. 19: 26.3%

Topping our list of Energy Stocks that Gained the Most This Week is Sable Offshore Corp. (NYSE:SOC), an independent upstream company focused on developing the Santa Ynez Unit in federal waters offshore California.

There were reports earlier this month that Sable Offshore Corp. (NYSE:SOC) was seeking federal approval to restart its controversial oil and gas pipeline near Santa Barbara after hitting a roadblock with California state authorities. As such, the company formally requested that the U.S. Pipeline and Hazardous Materials Safety Administration (PHMSA) shift the pipeline from state to federal oversight, as it meets the definition of an interstate pipeline facility under the Pipeline Safety Act.

Therefore, Sable Offshore Corp. (NYSE:SOC) soared on December 18 after the company disclosed that the regulator had approved its request, determining that the key California pipeline falls under federal oversight and potentially overriding local opposition to the project. Moreover, PHMSA determined that the pipeline should be treated as an ‘active’ line under federal safety rules.

The reclassification is expected to significantly streamline the regulatory uncertainty surrounding Sable Offshore Corp. (NYSE:SOC) and marks the first tangible sign of federal support for its Santa Ynez project, greatly restoring investor confidence.

While we acknowledge the potential of SOC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SOC and that has 100x upside potential, check out our report about this cheapest AI stock.

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