Signal Hill Oil Boom
In the summer of 1921, the Signal Hill oil discovery will help make California the source of one-quarter of the world’s entire oil output. Soon known as “Porcupine Hill,” the town’s oil field 20 miles south of Los Angeles was producing almost 260,000 barrels of oil every day by 1923.
The Alamitos No. 1 well erupted “black gold” on June 23, 1921, announcing discovery of California’s prolific Long Beach oil field.
The natural gas pressure is so great the gusher climbed 114 feet into the air. The well produced almost 600 barrels a day when completed on June 25. It will eventually produce 700,000 barrels.
The giant oil field Alamitos No. 1 revealed still produces 1.5 million barrels of oil a year.
Signal Hill incorporated three years after the Alamitos discovery well.
Signal Hill remains the only city in America completely surrounded by another city – Long Beach. More than one billion barrels of oil have been pumped from the Long Beach oil field since the original 1921 strike.
“Signal Hill is the scene of feverish activity, of an endless caravan of automobiles coming and going, of hustle and bustle, of a glow of optimism,” reported California Oil World.
“Derricks are being erected as fast as timber reaches the ground,” the magazine adds. “New companies are coming in overnight. Every available piece of acreage on and about Signal Hill is being signed up.”
Within a year, Signal Hill – before and after a residential area – will have 108 wells, producing 14,000 barrels of oil a day.
There are so many derricks, people are calling it Porcupine Hill.
“Derricks are so close that on Willow Street, Sunnyside Cemetery graves generated royalty checks to next-of-kin when oil was drawn from beneath family plots,” notes one historian.
By the fall of 1923, production reaches 259,000 barrels per day from nearly 300 wells, writes Dave Summers in his article, “The Oil Beneath California.”
When the oil fields around Los Angeles began to develop, “Californian production became a significant player on the national stage,” Summers says in his OilPrice.com article:
By 1923 it was producing some 259,000 barrels per day from some 300 wells, in comparison with Huntington Beach, which was then at 113,000 barrels per day and Santa Fe Springs at 32,000 barrels per day… And, in a foreboding of the future problems of over production, this was the first year in a decade that supply exceeded demand.
Shell Geologists seek Signal Hill Oil
Signal Hill oil potential had drawn wildcatters south of Los Angeles since 1917, but with no success. Two Royal Dutch Shell Oil Company geologists and a driller persevered.
“This was a great exploit and economic risk for the time. Shell Oil Company had just lost $3 million at a failed drilling site in Ventura, five years before,” explains a Long Beach newspaper.
Although another “dry hole” would be expensive, Shell geologists Frank Hayes and Alvin Theodore Schwennesen spudded their well in March 1921.
Driller Frank Hays believed oil lay deeper than earlier “dusters” had attempted to reach. By summer his steam-powered cable tool rig has him close.
On June 23, 1921. at a depth of 3,114 feet, Hay’s wildcat well for Shell Oil erupted “black gold” - revealing a petroleum reserve that extended to nearby Long Beach and into the history books.
According to the Paleontological Research Institution (PRI), Signal Hill became the biggest oil field the already productive Southern California region had ever seen.
This made California, “the nation’s number-one producing state, and in 1923, California was the source of one-quarter of the world’s entire output of oil!”
Decades before Signal Hill, another giant southern California oilfield had been discovered in 1892. A struggling prospector drilled into tar seeps he found near present-day Dodger Stadium. Read Discovering Los Angeles Oil Fields.
Signal Hill Oil Park
Today, Signal Hill’s Discovery Well Park includes a community center to educate the public. Historic photos and descriptions can be found at six viewpoints along the Panorama Promenade.
There are producing oil wells throughout the hill – with the historic “Discovery Well, Alamitos Number 1″ at the corner of Temple Avenue and East Hill Street.
A monument dedicated on May 3, 1952, serves “as a tribute to the petroleum pioneers for their success here, a success which has, by aiding in the growth and expansion of the petroleum industry, contributed so much to the welfare of mankind.”
“You can see wonderful commemorative art displays of this era throughout the lush parks and walkways of Signal Hill,” explains the Long Beach Beachcomber.
A statue dedicated on September 30, 2006, “Tribute to the Roughnecks,” can be found on Skyline Drive. Signal Hill Petroleum Chairman Jerry Barto and Shell Oil employee Bruce Kerr are depicted in bronze.
Between 1913 and 1923 Hollywood used the iconic derricks on Signal Hill for making movies starring Buster Keaton and Fatty Arbuckle. In 1957, what many consider the world’s first “all jazz” radio station, KNOB (now KLAX), first transmitted from a small studio on top of the historic oil hill.
The first productive oil well in California was drilled in the northern part of the state in the Mattole River Valley in 1865, after an initial well had been tried in 1861, notes Dave Summers in his 2011 “Oil Beneath California” article.
Earlier explorers noted evidence of California’s petroleum fields by the large number of oil seeps, both onshore and offshore. California’s first commercial oil well in 1876 was drilled in Pica Canyon, well known for its asphalt seeps. Read about the state’s offshore seeps in California Oil Seeps.
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