Signal Hill Oil Boom

Cemetery generated royalty checks to next-of-kin when oil was drawn from beneath family plots.

 

In the summer of 1921, the Signal Hill oil discovery would help make California the source of one-quarter of the world’s entire oil output. Soon known as “Porcupine Hill,” the town’s Long Beach oilfield produced about 260,000 barrels of oil a day by 1923.

The Alamitos No. 1 well, drilled on a remote hilltop south of Los Angeles, erupted a column of “black gold” on June 23, 1921. Natural gas pressure was so great that the oil geyser climbed 114 feet into the air.

Postcard of oil derricks on Signal Hill, CA, circa 1930.

After the June 1921 oilfield discovery, Signal Hill had so many derricks that people called it Porcupine Hill. Circa 1935 postcard courtesy Boston Public Library, Digital Commonwealth.

The oilfield discovery well, which produced almost 600 barrels a day, would eventually produce 700,000 barrels of oil. Signal Hill incorporated three years after its Alamitos discovery well made headlines.

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In 1923, Signal Hill’s petroleum field produced more than 68 million barrels of oil. The community of Signal Hill later became one of the first U.S. cities to be surrounded by another city, Long Beach.

Modern view of Signal Hill oilfield in California.

Signal Hill, a residential area before the 1921 discovery of the Long Beach oilfield, became covered in derricks. “Today you can see wonderful commemorative art displays of this era throughout the lush parks and walkways of Signal Hill,” notes a local newspaper.

By the 2000s, more than one billion barrels of oil were pumped from the Long Beach oilfield 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.

historic photo of signal hill oil derricks circa 1930

Signal Hill circa 1930 — at the corner of 1st Street and Belmont Street. Photo courtesy of Los Angeles Museum of Natural History.

“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.”

Derricks at Signal Hill, California with building in foreground, circa 1930.

Signal Hill helped make California the source of one-quarter of the world’s oil. “Porcupine Hill” and the Long Beach field produced 260,000 barrels of oil a day by 1923.

Within a year, Signal Hill — before and after a residential area — will have 108 wells, producing 14,000 barrels of oil a day. There were so many derricks, people started 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,” noted one historian.

panorama of hundreds of oil derricks on signal

Derricks were so close to one cemetery that graves “generated royalty checks to next-of-kin when oil was drawn from beneath family plots.” By 1923, production would reach 259,000 barrels per day from nearly 300 wells. Photo is part of a panorama in the Library of Congress.

Dave Summers explained in his 2011 article, “The Oil Beneath California,” that when oilfields around Los Angeles began to develop, “Californian production became a significant player on the national stage.” The OilPrice.com article continued:

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 overproduction, this was the first year in a decade that supply exceeded demand.

Shell Oil Geologists

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.

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“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,” reported a Long Beach newspaper.

Alamitos No. 1 well at Signal Hill in 1954

A 1954 photograph of the Alamitos No. 1 well — and the monument dedicated on May 3, 1952, “as a tribute to the petroleum pioneers for their success here…”

Although another “dry hole” would be expensive, Shell geologists Frank Hayes and Alvin Theodore Schwennesen spudded their well in March 1921. Driller O.P. “Happy” Yowells believed oil lay deeper than earlier “dusters” had attempted to reach.

By summer the steam-powered cable tool rig had Yowells close to making oilfield history. On June 23, 1921, at a depth of 3,114 feet, his wildcat well for Shell Oil erupted, revealing a petroleum reserve that extended to nearby Long Beach.

According to the Paleontological Research Institution, 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 (see Discovering Los Angeles Oilfields).

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.”

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Visitors to the area can see “wonderful commemorative art displays of this era throughout the lush parks and walkways of Signal Hill,” reported the Long Beach Beachcomber. Dedicated on September 30, 2006, the statue “Tribute to the Roughnecks” can be found on Skyline Drive. 

Statue of oil workers on Signal Hill, California.

“Tribute to the Roughnecks” by Cindy Jackson stands atop Signal Hill. Long Beach is in the distance. Signal Hill Petroleum Chairman Jerry Barto and Shell Oil employee Bruce Kerr are depicted in bronze.

The first California oil wells were drilled near oil seeps in the northern part of the state around the time of the Civil War. These Pico Canyon wells produced limited amounts of crude oil, but there was no market for the oil. Larger oilfields would be revealed in the early 1890s about 35 miles to the south. 

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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. 

Between 1913 and 1923 Hollywood used the derricks on Signal Hill in 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.

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Recommended Reading:  Signal Hill, California, Images of America (2006); Huntington Beach, California, Postcard History Series (2009); Black Gold in California: The Story of California Petroleum Industry (2016). Your Amazon purchase benefits the American Oil & Gas Historical Society. As an Amazon Associate, AOGHS earns a commission from qualifying purchases.

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The American Oil & Gas Historical Society (AOGHS) preserves U.S. petroleum history. Please become an AOGHS annual supporter and help maintain this energy education website and expand historical research. For more information, contact bawells@aoghs.org. © 2025 Bruce A. Wells.

Citation Information – Article Title: “Signal Hill Oil Boom.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/petroleum-pioneers/signal-hill-oil/. Last Updated: June 18, 2025. Original Published Date: April 29, 2013.

Discovering Los Angeles Oilfields

Natural oil seeps, giant oilfields, and the beginning of the California petroleum industry.

 

“Everyone thinks of Los Angeles as the ultimate car city, but the city’s relationship with petroleum products is far more significant than just consumption.” — Center for Land Use Interpretation

When struggling prospector Edward L. Doheny and his mining partner Charles Canfield decided to dig a well in 1892, they chose a site already known for its “tar” pools that bubbled to the surface. (more…)

THUMS – California’s Hidden Oil Islands

Wells on manmade islands save “America’s Sinking City.”

 

Reversing an earlier ban, voters in Long Beach, California, in 1962 approved petroleum exploration in their harbor. Five major oil companies formed a company called THUMS and built four artificial islands to produce the oil.

California’s headline-making 1921 oil discovery at Signal Hill launched a drilling boom that transformed the quiet residential area. So many derricks sprouted it became known as “Porcupine Hill.”

One of the California THUMS islands hidden oil derricks in landscaped setting.

Island Grissom, one of the four THUMS islands at Long Beach, California, was named after NASA astronaut Col. Virgil “Gus” Grissom, who died in 1967 in the Apollo spacecraft fire. Photo courtesy U.S. Department of Energy.

With many homeowners aspiring to become drillers and oilfield speculators, much of Signal Hill’s land was sold and subdivided in real estate lots of a size described as “big enough to raise chickens.”

Derricks were so close to one cemetery that graves “generated royalty checks to next-of-kin when oil was drawn from beneath family plots,” noted one historian. Neighboring Long Beach joined the drilling boom.

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By 1923, oil production reached more than one-quarter million barrels of oil per day. When Long Beach instituted a per-barrel oil tax, Signal Hill residents voted to incorporate in 1924.

At the time, “the law of capture” for petroleum production ensured the formerly scenic landscape would be transformed. Competing exploration and production companies crowded around newly completed wells and chased any signs of oil to the Pacific Ocean.

THUMS island illustration of oil reservoir beneath Long Beach

The islands are among the most innovative oilfield designs in the world. Circa 1965 illustration courtesy Oxy Petroleum.

By the early 1930s, the massive Wilmington oilfield extended through Long Beach as reservoir management concerns remained in the future. Naturally produced California oil seeps had led to many discoveries south of the 1892 Los Angeles City field.

Onshore and offshore tax revenues generated by production of more than one billion barrels of oil and one trillion cubic feet of natural gas helped underwrite much of the Los Angeles area’s economic growth. But not without consequences.

Long Beach: A Sinking City

The U.S. Army Corps of Engineers reported, “Subsidence, the sinking of the ground surface, is typically caused by extracting fluids from the subsurface.”

Long Beach CA oil derricks circa 1923 panorama.

Petroleum reserves brought drilling booms to southern California. By 1923, oil production reached more than one-quarter million barrels of oil per day from Signal Hill, seen in the distance in this detail from a panorama from the Library of Congress.

Californians had a lot  of experience dealing with groundwater induced subsidence and the building damage it caused, but by 1951, Long Beach was sinking at the alarming rate of about two feet each year.

Earth scientists noted that between 1928 and 1965, the community sank almost 30 feet. TIME magazine call the bustling port “America’s Sinking City.”

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After decades of prospering from petroleum production, the city prohibited “offshore area” drilling to slow the subsidence as the community looked for a solution.

On February 27, 1962, Long Beach voters approved “controlled exploration and exploitation of the oil and gas reserves” underlying their harbor. The city’s charter had prohibited such drilling since a 1956 referendum. Advancements in oilfield technologies enabled Long Beach to stay afloat.

Directional drilling and water injection opened another 6,500 acres of the Wilmington field — and saved the sinking city.

THUMS: Texaco, Humble, Union, Mobil and Shell

Five oil companies formed a Long Beach company called THUMS: Texaco (now Chevron), Humble (now ExxonMobil), Union Oil (now Chevron), Mobil (now ExxonMobil) and Shell Oil Company. They built four artificial islands at a cost of $22 million in 1965 (more than $200 in 2024 dollars).

The islands — named in 1967 Grissom, White, Chaffee, and Freemen in honor of lost NASA astronauts would include 42 acres for about 1,000 active wells producing 46,000 barrels of oil and 9 million cubic feet of natural gas a day.

THUMS Long Beach CA sinking image

The prospering but “sinking city” of Long Beach would solve its subsidence problem with four islands and advanced drilling and production technologies. Photo by Roger Coar, 1959, courtesy Long Beach Historical Society.

To counter subsidence, five 1,750-horsepower motors on White Island drive water injection pumps to offset extracted petroleum, sustain reservoir pressures, and extend oil recovery. The challenge was once described as “a massive Rubik’s Cube of oil pockets, fault blocks, fluid pressures and piping systems.”

Meanwhile, all of this happens amidst the scenic boating and tourist waters in Long Beach Harbor.

The California Resources Corporation operates the offshore part on the islands of the Wilmington field, the fourth-largest U.S. oilfield, according to the Los Angeles Association of Professional Landmen, whose members toured the facilities in November 2017.

Producing in Plain Sight

“Most interestingly, the islands were designed to blend in with the surrounding coastal environment,” explained LAAPL Education Chair Blake W.E. Barton of Signal Hill Petroleum. “The drilling rigs and other above-ground equipment are camouflaged and sound-proofed with faux skyscraper skins and waterfalls.”

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Most people simply do not realize the islands are petroleum production facilities. From the shore, the man-made islands appear occupied by upscale condos and lush vegetation. Many of the creative disguises came courtesy of Joseph Linesch, a pioneering designer who helped landscape Disneyland.

The THUMs islands required exceptional designs, and “the people who were involved at the time were very creative visionaries,” said Frank Komin, executive vice president for southern operations of the California Resources Corporation (CRC), owner of the islands.

About 80 percent of the company’s properties would overlie the Wilmington oilfield, according to CRC, noting that from 2003 to 2018, CRC operations generated over $5.2 billion in revenues, taxes and fees for the City of Long Beach and the state.

THUMS oil platorms picture from above

THUMS Island White, named for Col. Edward White II, the first American to walk in space, who died in 1967 along with NASA astronauts “Gus” Grissom and Roger B. Chaffee. A fourth island was named for NASA test pilot Ted Freeman, who in 1963 was the first fatality among the astronauts. Photo courtesy UCLA Library.

“Even today, those islands are viewed as one of the most innovative oil field designs in the world,” CRC executive Komin declared in a 2015 Long Beach Business Journal article. “The islands have grown to become icons in which the City of Long Beach takes a great deal of pride.” 

The Journal explained that 640,000 tons of boulders, some as large as five tons, were mined and placed to build up the perimeters of the islands. “Concrete facades constructed for aesthetic purposes also divert industrial noise away from nearby residents,” the article added.  For more noise abatement, electricity has provided nearly all the power for the islands.

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The THUMS aesthetic integration of 175-foot derricks and production structures has been described by the Los Angeles Times as, “part Disney, part Jetsons, part Swiss Family Robinson.”

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Recommended Reading: An Ocean of Oil: A Century of Political Struggle over Petroleum Off the California Coast (1998); Black Gold in California: The Story of California Petroleum Industry (2016); Early California Oil: A Photographic History, 1865-1940 (1985). Your Amazon purchases benefit the American Oil & Gas Historical Society. As an Amazon Associate, AOGHS earns a commission from qualifying purchases.

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The American Oil & Gas Historical Society (AOGHS) preserves U.S. petroleum history. Please become an AOGHS annual supporter and help maintain this energy education website and expand historical research. For more information, contact bawells@aoghs.org. Copyright © 2025 Bruce A. Wells. All rights reserved.

Citation Information – Article Title: “THUMS – California’s Hidden Oil Islands.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/technology/thums-california-hidden-oil-islands. Last Updated: February 25, 2025. Original Published Date: March 8, 2018.

Puente Crude Oil Company

Rise and fall of a California oil exploration company.

 

A new “black gold” rush in California took off in 1886 after William Rowland and partner William Lacy completed several producing oil wells at Rancho La Puente. Their company, Rowland & Lacy (later called the Puente Crude Oil Company), helped reveal the Puente oilfield.

The exploration venture — and a more successful one with a similar name, the Puente Oil Company — were among those seeking oil in southern California at the turn of the century. By 1912, many inexperienced companies had drilled more than 100 wells in the Fullerton area southeast of the Los Angeles field. Two expensive “dry holes” were completed by the Puente Crude Oil Company.

Puente Crude Oil Company

Puente Crude Oil Company was one of many small early 20th-century ventures hoping to find oil in southern California’s prolific oilfields at Brea Canyon and Fullerton.

Initially capitalized with $500,000, Puente Crude Oil offered stock to the public at 10 cents a share in 1900, but its two unsuccessful wells in the Puente field’s eastern extension brought the company to a quick financial crisis.

One well was lost to a “crooked hole” and the other found only traces of oil and natural gas as enthusiastic advertisements continued to solicit investment. Some ads referred to the widely known Sunset oilfield, discovered in 1892 in Kern County to the north.

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By May 1901 company stock was offered at two cents per share to relieve indebtedness and enable further drilling on the company’s 870 acres in Rodeo Canyon. One year later, San Bernardino newspapers reported the company in trouble.

“This history of misadventure has not been pleasing to the stockholders of the Puente Crude Oil Company,” noted one article. “An auditing committee was appointed for the purpose of examining the books and accounts of the company,” it added.

Further reports in 1902 noted the company had issued no statements, “financial or otherwise,” for a year. Puente Crude Oil Company is absent from records thereafter.

South of Los Angeles, in Orange County, the Brea Museum and Heritage Center tells the story of the Olinda Oil Well No. 1 well of 1898 – one of many important California petroleum discoveries. Visit the Olinda Oil Museum and Trail at 4025 Santa Fe Road in Brea.

Much of Puente Oil’s former oil-producing land would later be managed by the Puente Hills Landfill Native Habitat Preservation Authority. In 2022, the Port of Los Angeles handled more than 220 million metric tons — 20 percent of all incoming cargo for the United States. 

The stories of exploration and production (E&P) companies joining U.S. petroleum booms (and avoiding busts) can be found updated in Is my Old Oil Stock worth Anything?

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Recommended Reading:  Los Angeles, California, Images of America (2001). Your Amazon purchase benefits the American Oil & Gas Historical Society. As an Amazon Associate, AOGHS earns a commission from qualifying purchases.

_______________________

The American Oil & Gas Historical Society (AOGHS) preserves U.S. petroleum history. Please become an AOGHS annual supporter and help maintain this energy education website and expand historical research. For more information, contact bawells@aoghs.org. Copyright © 2025 Bruce A. Wells. All rights reserved.

Citation Information – Article Title: “Puente Crude Oil Company.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/old-oil-stocks/puente-crude-oil-company. Last Updated: January 30, 2025. Original Published Date: July 2, 2013.

 

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