The Long Beach Business Journal published their annual Focus on Signal Hill edition stating that “With Numerous Projects Underway And A Balanced Budget, City Officials Optimistic About The Future […] Smack-dab in the middle of Long Beach sits the 2.2-square-mile City of Signal Hill. Considering its size, the old oil town is undergoing massive amounts of development, with three residential projects underway and one more in the works, as well as plans for two parks and a new 12,000-square-foot public library. On top of booming development, the city is well positioned financially.” For entire article continuing reading below.
Focus on Signal Hill
July 17, 2017 Brandon Richardson, Senior Writer
With Numerous Projects Underway And A Balanced Budget, City Officials Optimistic About The Future
Volatile Oil Prices Keep Well Drilling On Hold
Even though it’s not covered in oil derricks as it was in years long passed, Signal Hill still produces its fair share of oil through Signal Hill Petroleum (SHP). However, continuously low oil prices have put a stop to the company’s drilling activities.
“Our oil production is stable, but based on where current oil prices are, we are delaying our plans for more significant reinvestment,” David Slater, SHP chief operating officer and executive vice president, said. “We do have projects planned. We’d just like to see a little bit better margin before we make that capital commitment.”
Slater said the industry saw a sag in prices recently, down to around $44 per barrel from $50 per barrel a short time ago, according to the West Texas Intermediate benchmark. He explained that the current market is very volatile, with price swings between $10 and $12.
David Slater, chief operating officer and executive vice president of Signal Hill Petroleum, said discretionary spending is at a minimum due to low and volatile oil prices, which means all drilling operations are on hold. He said he is optimistic that drilling activity can resume in the next six months or so. (Photograph by the Business Journal’s Larry Duncan)
Despite market volatility, Signal Hill Petroleum’s more than 400 wells continue to produce approximately 1 million barrels of oil per year, which comes out to more than 2,700 barrels per day.
During times of moderate gas prices, Slater said when discretionary spending is low and the company’s two drilling rigs are mothballed, SPH focuses on its infrastructure to ensure it continues to operate in a neighborhood-friendly manner. As a member of a small community, Slater said this is important for the company’s relationship with residents living near active wells.
The company is continuously working to maintain pipelines, tanks, pumps and all other infrastructure to ensure their capability when drilling activities resume. Signal Hill Petroleum is also a prominent landowner and developer in Signal Hill, which helps offset low oil prices.
The City of Signal Hill taxes each barrel of oil produced in the city, which generated $1.1 million in tax revenue during the 2015-2016 fiscal year. However, with the drop in oil prices and halting of drilling operations, tax revenue has been cut by almost half.
Despite the freeze on drilling operations, Slater noted that the Long Beach Oil Field – a super giant, meaning it has produced over 1 billion barrels of oil – still has plenty of oil for the urban oil company to tap into, hopefully in the near future.
“But we’re optimistic that we’re going to be reinvesting and having drilling activity in the next six months or so,” Slater said. “There’s a lot of oil and gas opportunity. The life of the oil and gas field has got a long, long way to go. And there’s still a lot of oil to be produced and a lot of wells still to be drilled.”
The Long Beach Business Journal published an article, Economic Outlook Oil and Gas: Despite Opportunities To Be Energy Independent, California Is Importing Two-Thirds Of Its Oil, which explains the challenges faced by the California Oil industry while trying to provide California with energy independence.
David Slater, Executive Vice President and COO for SHP states, “Our pitch is always, we need the energy and the access. The clean, affordable energy is what differentiates our society from a lot of other places in the world,” Slater said. “And it is just an all-around winner if we could just produce that energy right here in our own backyard.” For the complete article continue reading below.
Economic Outlook Oil and Gas: Despite Opportunities To Be Energy Independent, California Is Importing Two-Thirds Of Its Oil
July 5, 2017, Brandon Richardson, Senior Writer
The oil and gas industry is a leading economic driver and major employer in the State of California, creating more than 368,000 jobs, according to a June report by the Western States Petroleum Association. The report also states that the industry produces $33 billion in labor income, $148 billion in total economic output and more than $50 billion in local, state and federal taxes.
Oil
While oil-drilling activity has increased dramatically nationwide, according to Bob Barnes, executive vice president of operations for California Resources Corporation, activity in California remains low.
“California has been the third-largest oil producing state for decades, but domestic statewide production levels are decreasing,” Barnes said. “At a time when our state is embracing the mantle of environmental leadership for America, California is missing an opportunity to be a shining example that a state or country can achieve energy self-sufficiency while applying the most stringent standards in the world.”
Instead, Barnes explained that California is becoming increasingly dependent on oil produced in areas with lesser environmental, labor, human rights and safety standards. In 2016, Barnes said California imported a record 67% of its oil from other countries and Alaska to meet the ever-increasing demand.
The growing dependence means California’s working families are subsidizing energy development, jobs and taxes in other states and foreign countries, according to Barnes.
“In an ever-changing and uncertain world, increasing California’s energy supply is the best way to ensure that all Californians have access to affordable and reliable energy,” Barnes said. “Our mantra is ‘Energy for California by Californians,’ and we are dedicated to ensuring that California has a vibrant and sustainable future by all measures – environmental, economic and social.”
Catherine Reheis-Boyd, president of the Western States Petroleum Association, said that while the prominent political atmosphere in California is promoting a well-funded off-oil agenda, residents in the state consume approximately 2 million gallons of gasoline and diesel fuel per hour. According to the California Department of Motor Vehicles, as of December 2016, there were about 32 million registered vehicles on the road.
California oil producers must be more calculating when it comes to exploration and drilling activity due to stringent regulation. Reheis-Boyd explained that it is a major challenge to comply with state regulations and still remain competitive in the open market.
The fees associated with the oil industry are not restricted to producers, Reheis-Boyd noted, but are also felt by consumers at the pumps. Prior to Senate Bill 1, the cost of gasoline included 74.83 cents per gallon and the cost of diesel included 82.71 cents per gallon in taxes for low carbon fuel standard, cap and trade, underground storage tanks, and state and federal taxes. Beginning November 1, SB 1 increases gasoline tax by 12 cents per gallon and diesel tax by 20 cents per gallon for road maintenance and rehabilitation.
According to Reheis-Boyd, there are opportunities in the state to ramp up exploration and production, which would mean less imported oil brought in on tankers and trains, thereby reducing emissions harmful to the environment.
“So we would love to do more exploration and production in California if the regulatory environment would allow us,” Reheis-Boyd said. “I’m not going to say that it’s just the regulations, because one of the biggest factors for producing crude oil is the price you get for it when you sell it.”
Currently, oil prices are in the low $40 range, according to David Slater, executive vice president and chief operating officer of Signal Hill Petroleum (SHP). Slater said that for SHP, current prices mean they can maintain current operations and remain profitable, but both the company’s drilling rigs have been mothballed for the time being.
“We’re definitely in a lower activity mode as far as discretionary spending,” Slater said. “But we’re maintaining our high-caliber operations and keeping our focus on safety and keeping a focus on being environmental and neighbor friendly.”
While SHP’s and other California companies’ activities are low, Slater said that United States production has essentially doubled with recent drilling of shale plays in Texas and other states. This introduction of millions more barrels of oil per day into a full market is what is creating price volatility, which Slater said is likely to continue through the year.
Slater said he hopes prices at least swing up into the low $50 range so that California companies can begin ramping up activity to help meet the demands of residents.
“Our pitch is always, we need the energy and the access. The clean, affordable energy is what differentiates our society from a lot of other places in the world,” Slater said. “And it is just an all-around winner if we could just produce that energy right here in our own backyard.” […]
Click here to visit website to read digital version
Signal Hill Petroleum was honored today, Thursday, April 27th, to receive the Corporate Citizen of the Year Award from the Long Beach Chamber of Commerce. David L. Slater, Exec VP and COO of SHP, accepted the award on behalf SHP. While accepting the award David stated,
“We see ourselves as not just an oil company, but more so as a provider of sustainable and environmentally sound energy and jobs for California. We believe that sustainability includes meaningful investments of not just money, but also our time in the communities in which we do business. A key factor in our success in doing this is the character and the quality of people who work at, lead and believe in our company. Some think that the value of an oil company is their oil reserves in the ground, but we know that our prime asset is our people.”
Below is the article written by the Chamber explaining the many reasons why SHP was chosen for this award. Thank you to all who have helped us earn this award. We are proud to be a contributing partner in our communities.
As the City of Signal Hill says good bye to a long time city leader, Micheal Noll, new city councilmembers are sworn in. Additionally, Mayor Lori Woods was acknowledged and thanked for the completion of her first term as Mayor. Edward Wilson was appointed as the new Mayor and Tina Hansen will remain Vice Mayor for the second consecutive year.
Below is the Signal Tribune’s article explaining the changing dynamics of the Signal Hill City Council. The article has statements from David Slater, Executive VP and COO for SHP, about Mayor Woods’ term as Mayor. (See section in bold)
By: Anita W. Harris
Staff Writer
City council reorganization
At its March 21 meeting, the Signal Hill City Council voted unanimously for Councilmember Edward Wilson to serve as mayor, replacing Lori Woods, whose one-year term as mayor has ended. There were no other nominations.
Tina Hansen will continue as vice mayor for another one-year term after a unanimous council vote and no other nominations.
Hansen expressed her wish to defer becoming mayor until next year, though she was up for that position having served as vice mayor for a year.
“Everyone knows that my passion is the [new Signal Hill public] library, and I want to be assured that I will be mayor when the library opens,” she explained. She further expressed appreciation that Wilson agreed to bypass a year of being vice mayor before accepting the nomination for mayor.
Woods will remain on the council as a member, having won a new four-year term in the March 7 municipal election, as did Wilson and former City Clerk Robert Copeland. Larry Forester is continuing in his term as a fifth council member.
The three newly elected members of the council were sworn in by Deputy City Clerk Kimberly Boles amid public applause. Copeland made a few remarks as the newest member, indicating his excitement about serving on the city council.
“I’m looking forward to helping to influence the direction of the city and to talk to the residents about what they’re looking for in the city and figure out how we can satisfy those wants,” Copeland said.
The overall mood during the formalities was light-hearted among the members and the public audience alike, with council chamber at nearly full capacity. During the mayor’s initial roll call, outgoing Councilmember Michael Noll embellished his response. “Still here for a little while,” he said, eliciting chuckles all around.
Noll acknowledgements
In one of her final acts as mayor, Woods presented a proclamation to Noll, who has served on the council for 25 years, including five terms as mayor.
“Michael’s vision and leadership helped transform Signal Hill from a rustic oil town to a vibrant community,” she said. Woods further listed his accomplishments for the city, citing his fiscal responsibility and commending his efforts to foster an inclusive community.
Noll’s subsequent remarks included affirming the commitment of the entire council.
“We don’t always agree. Sometimes we disagree,” he said. “But after the vote, we all get on board and make it happen.”
After taking his seat as mayor, Wilson further acknowledged Noll’s service instead of making a formal speech.
“It is really important that we recognize him for all he’s done for this city,” Wilson said. “It look a lot of time, a lot of dedication […] and you have to be committed to the betterment of your community to […] serve that long, and so I want to personally commend Mike for all he’s done.”
Woods presentations
Wilson presented Woods with a City proclamation, emphasizing her dedication.
“Because [Signal Hill has] been very successful, it really looks easy, but there is a lot of work that goes on, and you have to dedicate yourself to learning not only about the city but everything that’s going on around you,” he said, referring to LA County and the state as a whole.
Wilson then read from the proclamation.
“Lori Woods has served this office with distinction and has earned respect and admiration for her integrity and for her personal and professional dedication as mayor,” he read.
The proclamation especially focused on Woods’s prioritizing of emergency preparedness for the city, among her other accomplishments. Wilson led the audience in chanting “Go, Signal Hill” three times, referring to the mobile app that Woods spearheaded to connect the City with its residents and visitors.
Not insignificantly, Wilson read from the proclamation that under Woods’s mayorship, the City adopted a balanced budget with sound reserve measures.
Woods was also given formal presentations for her work and service by: representatives from Signal Hill Petroleum; the Signal Hill Chamber of Commerce; and the offices of U.S. Rep. Alan Lowenthal, State Sen. Ricardo Lara and Los Angeles County Supervisor Janice Hahn.
Representing Signal Hill Petroleum and the Signal Hill Police Foundation, David Slater thanked Woods for her accomplishments.
“Your leadership has been characterized by your compassion, dedication to learning, strategic thinking and […] tireless efforts to improve the quality of life for […] residents and businesses alike,” he said. “The time and energy you’ve given to this city is remarkable.”
He further chronicled a list of Woods’s specific successes. “Lori, you’re a class act,” he said.
For her part, Woods acknowledged the dedication of City staff members and asked them to stand. “We have a highly professional staff here at Signal Hill,” she said. “The staff makes us look really good.”
Election certification
Before its reorganization, the council had voted 5-0 to adopt a resolution prepared by City Manager Charlie Honeycutt certifying the results of the March 7 municipal election, including the failure of Measure F, the medical-marijuana tax measure.
Later, as part of new business, Forester and Wilson both thanked the residents and businesses of Signal Hill for their participation in the election, reaffirming the importance of voting, noting the relatively high voter turnout compared to recent years.
“One of the […] most important things in government is for people to vote,” Wilson said. “When people are participating, we (the council) can do things a lot better. As people fall out of the fold, then we don’t get as much feedback from all the different sectors of our community.”
Mayor’s reception
After the meeting was adjourned, council members, staff and meeting attendees reconvened for the annual mayor’s reception, this year held at the Alpert Jewish Community Center in Long Beach.
During the reception, Hansen announced that because election results are sometimes delayed until soon before they are finalized, as was the case this year, the function of the mayoral reception would be expanded beginning that night to not only welcome the new mayor, vice mayor and any newly elected council members, but also to mark the accomplishments of the outgoing mayor and retiring council members.
“So, tonight we gather to celebrate the accomplishments of outgoing Mayor Lori Woods,” she said.
Woods then made closing remarks about her accomplishments as mayor, especially regarding city-wide emergency preparedness. She also looked to the future, listing several projects that are in development, including the new library, the former Fresh & Easy site being developed into a Mother’s Market and resident gathering center, a dog park, new housing at Gundry Avenue and Hill Street opening in June or July, plus 24 new three-story homes near the Food 4 Less on Willow Street.
She concluded by encouraging the public to attend the annual City budgeting council meeting held in late May or early June.
“If you could only attend one council meeting a year, the budget workshop would be the one I’d choose,” she said. “It is the ‘State of the City’ update of the year. You should plan to attend.”
The Signal Hill Police Foundation, represented by Dave Slater of Signal Hill Petroleum (right), and Signal Hill Police Chief Michael Langston (center) presented Fredy Dominguez, president of the Rotary Club of Signal Hill (left) with a donation of $1,500 on July 28 for the club’s 2016 community service project – school supplies for 2,220 students in three Signal Hill schools. The Rotary Club of Signal Hill has partnered with individuals and organizations to provide school supplies to local students for over 15 years, according to club’s members. In 2015, the membership of the club increased, allowing it to expand distribution to Jesse Nelson Academy. This year the club will donate over $25,000 in school supplies and backpacks thanks to donations from individuals and businesses in Signal Hill and Long Beach. The club is seeking volunteers to meet at the Signal Hill Police Department, 2745 Walnut Ave., each day from Aug. 21 to Aug. 30 to assemble the thousands of individuals pieces. Additional information is available at hhttp://signup.com/go/18ACj8.
Article posted by the Signal Tribune August 12, 2016
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