by Bruce Wells | Jan 22, 2025 | Petroleum Companies
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 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.
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.
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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: “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.
by Bruce Wells | Jan 22, 2025 | Offshore History
Exploring the 1969 offshore disaster and the geology of ancient natural petroleum seeps.
A 1969 oil spill from a California offshore platform transformed the public’s view of the U.S. petroleum industry and helped launch the modern environmental movement — and the Environmental Protection Agency. Ancient natural seeps continue to produce thousands of tons of oil every day.
On January 28, 1969, after drilling 3,500 feet below the ocean floor, a Union Oil Company drilling platform six miles off Santa Barbara, suffered a blowout. Between 80,000 and 100,000 barrels of oil flowed into the Pacific Ocean and onto beaches, including at Summerland, where the U.S. offshore industry began in 1896 with drilling on oil well piers. (more…)
by Bruce Wells | Sep 19, 2024 | Petroleum Pioneers
Pico Canyon oilfield brought pipelines, refineries and Chevron.
Following the 1859 first commercial U.S. oil discovery in Pennsylvania, the earliest petroleum exploration companies were attracted to California’s natural oil seeps. Small but promising discoveries after the Civil War led to the state’s first gusher in 1876 — and the launching of a new California industry.
Pico Canyon, less than 35 miles north of Los Angeles, produced limited amounts of oil as early as 1855, but there was no market for the petroleum found near natural oil seeps. The first California drilling boom arrived a decade later in the northern part of the state with an oilfield also found near seeps.
Humboldt County Oil
Completed in 1865 by the Old Union Matolle Oil Company, the Humboldt County well produced oil near the aptly named Petrolia. The oilfield discovery quickly attracted some of America’s earliest exploration companies.
Detail of a 1908 “Map of Humboldt County Oil Lands” includes post-Civil War commercial oil wells that attracted more drilling to northern California. Map courtesy Humboldt County Map Collection, Cal Poly Humboldt Library Special Collection.
A California historical marker (no. 543) dedicated on November 10, 1955 declared:
California’s First Drilled Oil Wells — California’s first drilled oil wells producing crude to be refined and sold commercially were located on the north fork of the River approximately three miles east of here. The Old Union Mattole Oil Company made its first shipment of oil from here in June 1865 to a San Francisco refinery. Many old wellheads remain today.
Although the “Old Union well” initially yielded about 30 barrels of high-quality oil, production declined to one barrel of oil per day and the prospect was abandoned, according to K.R. Aalto, a geologist at Humboldt State University.
The Humboldt County well in what became the oilfield, “attracted interest and investment among oilmen because of the abundance of oil and gas seeps throughout that region,” Aalto noted in his 2011 article in Oil-Industry History. But the California petroleum industry truly began to the south, at Pico Canyon Oilfield, a few miles west of Newhall.
Pico Canyon Well No. 4
In Pico Canyon of the Santa Susana Mountains, Charles A. Mentry (1847-1900), who had formed a partnership establishing the California Star Oil Works Company, drilled three exploratory wells between 1875 and 1876. All showed promise and the first West Coast oil gusher arrived with his fourth well. The oilfield discovery would lead to creation of major oil company.
The steam boiler and cable tools, including the “walking beam,” of Pico Well No. 4 in 1877. Photo by Carleton Watkins courtesy Los Angeles Public Library Photo Collection.
Drilling with a steam-powered cable-tool rig in an area known for its many oil seeps, Mentry discovered the Pico Canyon oilfield north of Los Angeles. California’s first truly commercial oil well, the Pico Well No. 4 gusher of September 26, 1876, prompted more development, including pipeline construction and an oil refinery for producing kerosene.
According to an article in the Los Angeles Times, the well initially produced 25 barrels a day from 370 feet. Mentry improvised many of his cable tools, including making a drill stem out of old railroad car axles he welded together.
“The railroad had not then been completed, there was no road into the canyon, water was almost unattainable, and there were no adequate tools or machinery to be had,” noted the Times article.
Charles Mentry, already had successfully drilled 42 wells near Titusville, Pennsylvania, before exploring in the Santa Clara Valley — and launching California’s petroleum industry. Photo courtesy KHTS Radio, Santa Clara.
Mentry persevered and his success in Pico Canyon led to the founding of “Mentryville,” the onetime drilling boom town today site of Stevenson Ranch.
“Although his life was tragically cut short by illness on October 4, 1900, from typhoid fever, Mentry’s legacy as a pioneer in California’s oil industry endures,” noted KHTS Radio, Santa Clara. “His work in Pico Canyon not only made him a key figure in the region’s development but also set the stage for California’s future as an oil-rich state,” KHTS reported in 2025.
Visit the Santa Clarita Valley Historical Society website to learn more Pico Canyon petroleum exploration and production history.
First Refinery
California Star Oil Works deepened the well to 560 feet, increasing daily production by 125 barrels, and constructed its pipeline from Pico Canyon to the newly built refinery in Newhall, just south of Santa Clarita.
By 1880, California’s first commercial refinery processed oil from its first commercial oil well to make kerosene and other products. Photo courtesy the Santa Clarita Valley Historical Society.
Producing kerosene and lubricants, Newhall’s Pioneer Refinery on Pine Street would become the first successful commercial refinery in the West. Giant stills set on brick foundations included two capable of producing 150 barrels a day each. The city of Santa Clarita received California’s first successful refinery as a gift from Chevron in 1997.
The Santa Clarita refinery, today preserved as a tourist attraction, is among the oldest in the world. The major oil company can trace its beginnings to the 1876 Pico Canyon oil well, which has been designated a historic site by the California Office of Historic Preservation.
Chevron Corporation, once the Standard Oil Company of California, in 1900 acquired Pacific Coast Oil Company. Pacific Coast had become majority owner of California Star Oil Works in 1879.
Santa Clarita acquired California’s first refinery as a gift from Chevron in 1997. It is one of the oldest existing oil refinery sites in the world. Photo by Konrad Summers.
Refining Kerosene for Lamps
California’s commercial refineries were among the first in America, where the industry began with small refineries in Pittsburgh, Pennsylvania, producing kerosene for lamps. The oil came from Titusville area oilfields — and a giant 1871 field discovered at Bradford, about 70 miles to the northeast.
The Bradford oilfield, which became known as America’s “first billion-dollar oilfield,” launched many Pennsylvania refineries, including the still-operating American Refining Group. The field’s first well produced just 10 barrels a day from 1,110 feet.
By 1875. Bradford leases reached as high as $1,000 per acre. A decade later, a sudden decline in the oilfield’s production led to a technological breakthrough. Pioneers in the new science of petroleum geology suggested that water pressure on oil sands could be used to increase oil production — “waterflooding” the geologic formation.
The oldest operating U.S. oil refinery began in 1881 in Bradford, Pennsylvania.
In Neodesha, Kansas, the Norman No. 1 well of 1892 well revealed a petroleum-rich geologic region that would extend across Oklahoma, Texas and Louisiana. Standard Oil built a refinery in Neodesha in 1897 that refined 500 barrels of oil a day. Standard was the first to process oil from the giant Mid-Continent field (learn more in Kansas Well reveals Mid-Continent).
As of January 1, 2022, there were 130 operable petroleum refineries in the United States, according to the Energy Information Administration (EIA), down from 141 refineries in 2017.
Built in 1897, a Standard Oil refinery in Neodesha, Kansas, refined 500 barrels of oil per day – the first to process oil from the Mid-Continent field. From “Kansas Memory” collection of the Kansas Historical Society.
For an investigation into which California oil well was the first, see this 2011 SearchReSearch blog of Dan Russell.
Learn more California petroleum history in the Signal Hill Oil Boom.
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Recommended Reading: California State University, Dominguez Hills
(2010); Pico Canyon Chronicles: The Story of California’s Pioneer Oil Field
(1985). 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. Copyright © 2025 Bruce A. Wells.
Citation Information: Article Title: “First California Oil Well.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/petroleum-pioneers/first-california-oil-well. Last Updated: April 10, 2025. Original Published Date: September 9, 2015.
by Bruce Wells | Dec 4, 2023 | Petroleum Companies
Oilfield discovery in 1908 at Cat Canyon, California, began company’s lengthy corporate convolution.
In the Solomon Hills of central Santa Barbara County, California, the search for oil and natural gas began in 1904 at Cat Canyon. Exploration companies unsuccessfully drilled there for four years before Palmer Oil Company discovered an oilfield about 10 miles southeast of Santa Maria.
Palmer Oil Company derricks and refinery in Santa Barbara County, California, circa 1920s.
Palmer Oil’s Santa Maria well initially produced 150 barrels of oil a day, but within a few months it jumped to 10,000 barrels a day. The company completed a second well that also proved to be a true gusher. With it and other 1908 discoveries, Palmer Oil opened the Cat Canyon oilfield — the largest in Santa Barbara County at the time.
“The Palmer Oil Company is generally concluded to have opened one of the biggest and richest oil fields in California by the bringing in of its two gushers in the Cat Canyon District, now doing 10,000 barrels per day between them,” declared the trade publication “Oil Age Weekly” on September 9, 1910.
Although the Cat Canyon oilfield produced “heavy oil” with a high sulfur content, the success of Palmer Oil brought new investors, and the company was capitalized at $10 million by the beginning of 1911. The latest oil boom (see First California Oil Wells) attracted 26 exploration companies that completed 35 producing wells.
By 1927, Palmer Oil Company had reorganized into Palmer Union Oil Company as it continued to drill on Santa Barbara, California, leases.
By 1927, despite Cat Canyon’s proven oil reserves, drilling and production challenges of the heavy, high sulfur content prompted investors to look for better returns on their investments.
Palmer Oil to Coca-Cola
New drilling in Cat Canyon stalled — as did Palmer Oil, which began the first of its many corporate convolutions by becoming the Palmer Union Oil Company.
In January 1932, Palmer Union Oil became Palmer Stendel Oil Corporation, beginning decades of mergers and acquisitions: Palmer Stendel Oil Company – Petrocarbon Chemicals Incorporated – Great Western Producers – Pleasant Valley Wine Company – Taylor Wine Company – Coca-Cola Company.
After the Great Depression and World War II, water-flooding technology resurrected the Cat Canyon field’s production capability to a peak in 1953. Millions of barrels of oil were recovered and even in 1983, production was still about 350 barrels a day.
One century after its discovery by Palmer Oil Company, the Cat Canyon oilfield had 243 active oil wells. In a state long known for its natural oil seeps, enhanced recovery technologies revived oil production in Santa Barbara County and California’s other heavy oil-producing regions.
To extract reserves previously considered unrecoverable, companies like HVI Cat Canyon (Greka Energy), ERG Resources, and others used tertiary thermal recovery techniques. Improved technologies have dramatically lessened dangers to the environment, but not eliminated them.
A 1927 Palmer Union Oil Company stock certificate purchased at a garage sale in 2008 sparked a legal battle with Coca-Cola.
In 2023, a U.S. District Court found HVI Cat Canyon Inc. (formerly Greka Oil & Gas Company) liable for oil spills and ordered the company to pay $40 million in civil penalties for the spills; $15 million for violations of federal regulations, and $2.5 million in cleanup costs.
The U. S. Energy Information Administration in 2013 ranked Cat Canyon as 17th on its list of the nation’s top 100 producing oilfields — with no company having partial ownership in Coca-Cola Company (see Not a Millionaire from Old Oil Stock).
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The American Oil & Gas Historical Society (AOGHS) preserves U.S. petroleum history. Become an AOGHS annual supporting member and help maintain this energy education website and expand historical research. For more information, contact bawells@aoghs.org. Copyright © 2023 Bruce A. Wells. All rights reserved.
Citation Information – Article Title: “Palmer Oil Company.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL:https://aoghs.org/old-oil-stocks/palmer-oil-company. Last Updated: December 7, 2023. Original Published Date: December 7, 2023.
