Oil and Gas Developments in West Coast in 1986

ABSTRACT Drilling activity in the West Coast region fell sharply in 1986 in response to plummeting crude oil and gas prices. Only 2,289 wells were drilled in the region, 32% less than in 1985. Total footage was also down, 39% less than the 1985 level. Explorationists drilled 36% fewer wells than in 1985 yet logged a 33% success rate, much improved over the 25% success rate of 1985. Oil production declined in the region for the first time since 1978, dropping to 1983 levels. The crude oil price collapse hit hard in mid 1986, and over 5,000 wells were shut in in California. More than 10,000 oil industry-related jobs were lost. Operators in offshore California shifted their emphasis away from high cost exploratory wells, and only 5 wells were drilled. Operators focused on development programs stemming from the highly successful exploratory drilling of the early 1980s. The Santa Maria offshore basin received its fourth platform, and the first development drilling began at Point Pedernales and Point Arguello fields. The Santa Maria offshore basin’s first production is planned for 1987, 6 years after its discovery. Platform Gail was also installed in 1986, bringing the Santa Barbara offshore platform count to 20. Operators in onshore California drilled 37% fewer total wells than in 1985 and 33% fewer exploratory wells. Explorationists were successful in 9 of 88 new-field wildcats, and 64 of 189 field extensions or new-pool tests. No major new fields were discovered, however, and most reserve additions were from field extensions and new pools. Development drilling in the state’s largest fields could not keep pace with lost production from shut-ins and decline, and oil production decreased by over 50,000 b/d. Drilling in Oregon declined by over 50% to just 11 wells drilled. Only 1 new-field wildcat was drilled, and results were pending at year end. Ten wells were drilled at Oregon’s only producing field, with just 2 successes. Only 1 well was drilled in Washington. Geothermal activity decreased only slightly with 13% fewer wells drilled in California in 1986 than in 1985. In Oregon, several new areas were explored, and 7 wells were drilled.