by Bruce Wells | Jan 20, 2024 | 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 | Jan 1, 2024 | Petroleum Companies
The rush for “black gold” 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 Oil Company), revealed the Puente oilfield. News spread, launching a drilling boom.
By 1912, a host of inexperienced exploration companies were drilling more than 100 wells in the Fullerton area alone. According to reports, two of the inevitable dry hole holes that resulted were drilled by a new venture, the Puente Crude Oil Company.
Puente Crude Oil Company was one of many small ventures that hoped to find oil in southern California’s prolific oil fields near Brea Canyon and Fullerton at the turn of the century.
Puente Crude Oil Company was capitalized at only $500,000 and 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.
Enthusiastic advertisements solicited investment. Some ads referred to the better known Sunset oil field, 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.
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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The American Oil & Gas Historical Society preserves U.S. petroleum history. Join today as an AOGHS supporting member. Help maintain this energy education website and expand historical research. For more information, contact bawells@aoghs.org. Copyright © 2021 Bruce A. Wells. All rights reserved.
Much of the Puente Oil’s former oil producing land has long since been managed by the Puente Hills Landfill Native Habitat Preservation Authority, and in 2022 the Port of Los Angeles handled more than 220 million metric tons — 20 percent of all incoming cargo for the United States.
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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. 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 © 2024 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 4, 2024. Original Published Date: July 2, 2013.
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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.
