Huntington Beach Boom
A very interesting article by Gillian Flaccus makes page B3 of The Globe and Mail.
Surf City here we come!
Terra Exploration & Production Co. believes that up to two billion
barrels of oil remain hidden beneath Signal Hill, once nicknamed
"Porcupine Hill" for its crown of oil derricks before developers
planted gated communities and strip malls.
Here are a couple of historic photos from Huntington Beach showing historical oil development. Close spaced oil wells and human activity have coexisted for over 80 years now. This trend is likely to continue (albeit with a more stringent regulatory system) given that $200 billion worth of oil is still up for grabs.
The article also explains the economics of "stripper wells" in Oklahoma.
They are now producing one, two, five barrels a day, five a day
doesn't seem like a lot, but ... that's 150 barrels a month times $100
and you're looking at $15,000 a month for a well.
Increasing the production from these kinds of wells can be a low risk way to increased production and higher profits.