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SHP was featured on the cover of the Long Beach Business Journal for the recent 2014 Oil and Gas E&P Company of the Year award. Read the following excerpt from the Long Beach Business Journal’s November 11-24, 2014 issue to see why they dubbed Signal Hill Petroleum “#1 On West Coast”.
#1 On West Coast – Signal Hill Petroleum Names Top Exploration/Production Company
Pictured near one of their drilling sites with Signal Hill Petroleum President and CEO Craig Barto, center, are David Slater, left, the firm’s executive vice president and chief operating officer, and Kevin Laney, vice president of rig operations for the company. (Photograph by the Business Journal’s Thomas McConville)
Long Beach Business Journal – November 11-24, 2014
By Michael Gougis, Contributing Writer
Beautiful, high-end condominiums with a view of blue-green Pacific Ocean waters and crude oil drilling and pumping rigs would seem to go together like – well, water and oil.
But not only has Signal Hill Petroleum managed to look for, ding and extract thousands of barrels of crude oil a day in such a challenging environment, it has performed the task so well that it was named the TEEMCO E&P Company of the Year for 2014 at the recent West Coast Oil And Gas awards ceremony.
“A lot of people in the industry thought this field was dead,” says David Slater, executive vice president and CEO of Signal Hill Petroleum. “But it’s a huge remaining resource. It took technology to economically unlock it.”
A combination of cutting-edge technology and old-fashioned public relations outreach has allowed the company to flourish in a potentially difficult environment, said the judges who awarded the firm the Exploration & Production Company of the Year award.
“Through use of sustainability programs, innovative exploration and extraction techniques, environmental/emission controls and community enhancement programs, the company appears to be able to work very successfully in an urban environment where other companies may struggle,” the judges said.
Founded in 1984, the company started with the acquisition of Shell’s assets on Signal Hill. Shell was repositioning in oil extraction operations elsewhere, and had put the Signal Hill assets up for sale. The field actually was owned by three large companies – Shell, ARCO and Texaco – and Signal Hill Petroleum spent the next two decades consolidating those properties into a single company.
“It was a very, very major accomplishment to aggregate ownership,” Slater says. “What that did was open the economic possibility of applying technology and doing a lot of things that had not been done before because of the fragmented ownership.
As a more mature asset, the field relies on salt water injection to make the field productive, Slater says. Salt water injection is done “to re-pressurize it (the underground reserves) and mobilize the remaining oil,” he says.
But drilling injection wells and extraction wells accurately relies on a thorough, detailed understanding of the subsurface soil formations. The high-end technology used by the company involves the three-dimensional mapping of the sub-strata in a way that Signal Hill Petroleum helped develop, a method of subsurface imaging that met the needs of an oil producing company trying to work in an urban environment.
Traditional three-dimensional imaging “is not very urban-friendly.” Slater says. “Lots of equipment, lots of cable.” Basically, the process relies on thousands of sensors that detect minute vibrations – but those sensors had to be connected together via cables. Signal Hill Petroleum began working with a company that was developing a system that collected the data wirelessly. When the wireless data gathering was perfected, Signal Hill Petroleum became the first oil company in the world to put such a system into field operation.
What the data shows the company “is how the earth is cracked and bent. It’s similar to what people who study earthquakes are interested in,” Slater says. The data has, in fact, been shared with institutions and universities across the nation. And it has given the company a clearer view of the cracks, bends and folds of the earth’s crust – data that the company uses to drill for crude. It has worked so well that the company actually is drilling new wells in the field – the first new wells in decades.
Currently, the company operates about 450 wells and produces about 3,500 barrels per day. And it does so largely in harmony with its neighbors. Debra Montalvo Russell, director of community relations, says Signal Hill Petroleum is a visible, accessible member of the community, and that helps maintain positive relations with the people who live and work near the company’s operations.
“We are out there so much, and we are giving information, and we are so accessible,” she says. “The difference about our company is that we put a face to the name,” she says. “Most of our employees are local residents. They are faces that people will recognize in the store, in the community. So people know and trust us. We’re here as members of the community.”
“We work really hard to be transparent, to be face-t-face, to provide real information, to open the gates,” Slater says. “Come on in and take a look – we’ll show you what we do and how we do it.”
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(Front row from left to right): Signal Hill Police Captain Christopher Nunley, Mayor Ed Wilson, Starbucks District Manager Fauzia Adams, Councilwoman Lori Woods, Signal Hill Petroleum Executive Vice President & CEO David Slater and Signal Hill Petroleum Real Estate Manager Ashley Schaffer
November 14, 2014 – Signal Hill, CA –The Signal Hill Gateway Center, operated by Signal Hill Petroleum, celebrated the grand opening of a drive-thru Starbucks Reserves store, with a ribbon-cutting ceremony and reception on Wednesday, November 12th, 2014.
Starbucks, located at the corner of E. Spring St. and California Ave., is the most recent business to open at the 24-acre retail shopping center. Attendees included Signal Hill Mayor Ed Wilson, Councilmembers Tina Hansen and Lori Woods, Signal Hill Police Chief Michael Langston, Signal Hill Chamber of Commerce President Terry Rogers, Planning Commissioners Jane Fallon, Shannon Murphy, Rose Richard and Devon Austin, as well as Randy Wilson, owner of the general contractor company, Norm Wilson and Sons.
“We are so pleased to have the newest Starbucks in the city and look forward to a long, lasting relationship,” said Mayor Wilson at the reception.
This is the first Starbucks in the City of Signal Hill to boast the brand’s new Reserve experience, with an interactive roastery and tasting bar as well as exclusive blends and premium brewing equipment.
“We’re excited to welcome Starbucks to the Gateway Center,” said David Slater, Executive Vice President and Chief Operating Officer at Signal Hill Petroleum. “The enthusiasm and support from the community has been overwhelming and we look forward to enjoying an excellent cup of coffee with our neighbors and friends at this great new location.”
The new 1,700 square foot store, located at 999 E. Spring St., is now open daily from 4:30 am – midnight and features an outdoor patio area.
The Signal Hill Gateway Shopping Center will also be celebrating the opening of a new Sprint store on Saturday November 15th, as well as a Chipotle Mexican Grill in early December 2014.
About Signal Hill Petroleum
Signal Hill Petroleum is a privately owned California-based energy specializing in sustainable real estate redevelopment within Long Beach and Signal Hill. Through its decades of operating experience, SHP has developed a unique expertise not only in urban oil and gas production operations, but also in in the renewal of oil-impacted land acquisitions. The Signal Hill Gateway Center is home to several operating oil wells and anchored by a Home Depot, Petco, and Ross Dress For Less.
It was an honor to attend the 2014 West Coast Oil and Gas Industry Summit and Awards on Tuesday, October 21th, in Bakersfield, California. Hundreds of oil and gas professionals from across the West Coast came together to discuss the challenges, opportunities, and achievements within the industry. The Summit offered various panel discussions led by industry leaders from Exploration and Production, Midstream, and the Vendor community who shared strategic ideas and offered operational insight. Signal Hill Petroleum’s Chief Operating Officer and Executive Vice President, David Slater, was honored by the invitation to speak on the topic of Corporate Social Responsibility. With more than 30 years of experience within the oil and gas industry, Slater offered valuable insight including the value of serving the community as an excellent neighbor and partner.
“We believe that it’s our responsibility to give back to the community in which we operate and call home. Investing in opportunities that have a meaningful, direct impact within our community allows us to meet the people who are being affected by our efforts.”
– Dave Slater, EVP and COO, Signal Hill Petroleum
Dave Slater has served as the Executive Vice President and Chief Operating Officer for Signal Hill Petroleum, Inc. since 1998. He guides a team of more than 100 employees in the areas of production operations, drilling, exploration, real estate management, and community relations.
Signal Hill Petroleum was featured in two recent editions of the Signal Tribune. Both articles highlighted presentations made by the Mayor of Signal Hill, Ed Wilson to SHP for their sponsorship of the 2014 Concerts in the Park series and their 30 year anniversary.
The following is an excerpt from the Signal Tribune.
September 19, 2014
Photos by Sean Belk/Signal Tribune
Signal Hill Mayor Ed Wilson (left) recognizes Dave Slater, executive vice president and chief operating officer of Signal Hill Petroleum, and Stefanie Gillett, communications specialist for Signal Hill Petroleum for being a sponsor headliner sponsor of the City’s 2014 Concert in the Park series during the City Council meeting on Tuesday, Sept. 16.
Presentations: Mayor Ed Wilson recognized sponsors of the City’s 2014 Concerts in the Park series. Headliner sponsors included Los Angeles County Supervisor Don Knabe’s office, Signal Hill Petroleum, Graner Oil Company and Mason Environmental. “Rockstar” sponsors included Aleshire and Wynder LLP, EDCO, the Signal Tribunenewspaper and the Signal Hill Chamber of Commerce. Terry Rogers of Coldwell Banker was recognized as the lead senior sponsor. A presentation to give In-N-Out Restaurant a sustainability award was tabled until another meeting.
September 5, 2014
Photos by Sean Belk/Signal Tribune
Signal Hill Mayor Ed Wilson (left) presents a proclamation to representatives of Signal Hill Petroleum, Inc. (SHP) in recognition of the company’s 30th anniversary. Pictured from left are SHP Land Manager Sarah Bobbe, SHP Director of Community Relations and Business Development Debra Russell and SHP Executive Vice President and Chief Operating Officer Dave Slater
Presentations and introductions Mayor Wilson presented a proclamation to representatives of Signal Hill Petroleum in recognition of the company’s 30th anniversary.
The Long Beach Grunion Gazette summarized the thirty year history of Signal Hill Petroleum, with its grassroots beginning to its current leading stance in technology and community outreach.
The following is an excerpt from the August 7, 2014 Grunion Gazette Newspaper.
Photo courtesy of Long Beach Grunion Gazette: OIL & GAS ENTREPRENEURS. Craig Barto, Debra Montalvo Russell and David Slater stand by the Signal Hill Petroleum office
Signal Hill Petroleum Pumps Into 30th Year
Grunion Gazette, August 7, 2014
By Ashleigh Ruhl Editor
When father and son real estate developers Jerry Barto and Craig Barto purchased a piece of land in Costa Mesa in 1979, their intention was to build condos there.
Instead, they wound up in the oil and gas business.
“We just sort of fell into it,” Craig Barto said, adding that he and his father hired the best people they could to teach them all about oil and gas. “Oil prices spiked upwards, so instead of building condos, we ended up drilling 12 wells – years later, we did build homes there too.”
Soon after that Costa Mesa purchase, when Shell’s lands and leases in Signal Hill were put up for sale in 1982, the father and son owners of Barto Oil Company saw an opportunity that others didn’t. They made the purchase, for an undisclosed amount, and formed Signal Hill Petroleum in 1984; the company is celebrating its 30th anniversary.
“It was a big deal, an icon (Shell) coming up for sale,” Craig Barto explained. “At that time, the 100 acres was mostly not developed, and we looked at it as an oil field as well as a real estate opportunity; whereas, others didn’t look at the property, didn’t look at this urban area as a positive thing, they saw it as a negative.”
They decided to find a way to integrate their background in real estate development into the business model, even though no one had done such a thing before. They wanted their drilling operations – which now include 400 wells and the 90-year-old Discovery Well – to be good, close neighbors with Long Beach and Signal Hill residents and business.
“Shell was focused on offshore projects, and they left this tremendous asset,” Craig Barto said. “Today, we’re producing one million barrels a year and employ 165 people… This spot, Signal Hill, has th most oil per acre, or square foot, than anywhere in the world.”
He added; “We are proud to be a local producer of oil, providing jobs in our communities and strengthening the American economy as a whole. It’s very important for our company in both the long and short term to keep growing, to be a better company, and to be the best neighbor we can be. We are proud to be helping America be more energy independent.”
Dave Slater, who serves as the executive vice president and COO for the privately-owned company, shared similar sentiments. He explained that Signal Hill Petroleum owns 95% of the wells in the Long Beach/Signal Hill Oilfield, which is one of 28 super fields in the continental United States.
“It’s always been an urban field with no fence around it,” Slater said. “That’s not always easy, but we’ve learned by necessity how our workplace can be someone else’s backyard or next door neighbor.”
What sets Signal Hill Petroleum apart from other energy companies, he said, is the company’s commitment to the community and to pioneering new technology – such as the first three-dimensional imaging system that wirelessly measure underground oil levels and seismic activity – as well as hiring innovative employees who find ways to effectively operate in close proximity to homes and businesses in a way that is unprecedented in the industry.
Other energy companies have tried to copy what Signal Hill Petroleum has done, but Slater said none have had the same success. He emphasizes that Signal Hill Petroleum’s best assets are the people who work there, not the minerals in the ground.
One such employee is Debra Montalvo Russell, the director of business development and community relations. She is charged with helping Signal Hill Petroleum give back. For the philanthropic work done by the company, Signal Hill Petroleum was named the 2013 winner of the Oil & Gas Award in Corporate Social Responsibility, among other honors.
Montalvo Russell said Signal Hill Petroleum helps causes that touch the hearts of the employees there. That ranges from preserving the Los Cerritos Wetlands to sponsoring summer concert and movie series to working with local police officers to deliver holiday gifts to the needy, among other causes. The company also supports the geoscience laboratory at CSULB.
“We like to invest in our backyard, in cases that we can feel good about,” Slater said, noting a large bookshelf full of thank you notes and thank you plaques displayed at the entrance to the company’s Signal Hill offices.
“Working so close to homes and businesses, it’s important that we are neighbor-friendly and involved in the community, which is our workplace,” Barto said. “Through our employees – from top, down – we stress the importance for all of us to be good neighbors.”
For more details about Signal Hill Petroleum, including a timeline of the company’s past 30 years, visit www.shpi.net.
Ashleigh Ruhl can be reached at aruhl@gazettes.com