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Signal Hill’s 90 year-old Discovery Well
July 16, 2014 – Signal Hill, CA – Signal Hill Petroleum, Inc., a privately-owned energy company based in Signal Hill recently celebrated its 30-year anniversary. The company, which specializes in urban oil and gas operations, was founded in 1984 by Jerry Barto and his son Craig Barto. Signal Hill Petroleum, which started as a small operation with four employees, now owns and operates approximately 95% of the wells in the Long Beach/Signal Hill Oilfield, locally producing over one million barrels of crude oil annually.
“We are proud to be a local producer of oil, providing jobs in our communities and strengthening the American economy as a whole,” said Craig Barto, President of Signal Hill Petroleum. “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 possibly be.”
Their ability to successfully operate in such close proximity to homes and businesses is entirely unique and unprecedented within the industry. Signal Hill Petroleum has developed in-house production equipment and technology that has allowed for safe drilling in the most urban environments.
“We’ve invested heavily in cutting-edge technology and exceptional talent among our employees,” said Dave Slater, Executive Vice President and Chief Operating Officer at Signal Hill Petroleum.
As the first company to apply modern 3-D data to the Los Angeles Basin, Signal Hill Petroleum is the industry leader in oil exploration and extraction in urban environments, constantly pursuing in-field as well as green-field availability. The success of their technological advancements relies on recruiting the best talent to operate it.
“What differentiates us is the depth, the character and quality of the people who work for our company. Many oil and gas companies think that their assets are in the ground; our assets are in our people,” added Slater.
In addition to their commitment to being a leader in technology, Signal Hill Petroleum has also made giving back to the community a priority. The company’s commitment to serving their community through investing in education, community programs and philanthropic initiatives made Signal Hill Petroleum the 2013 winner of the Oil & Gas Award in Corporate Social Responsibility.
About Signal Hill Petroleum
Signal Hill Petroleum is a privately owned California-based energy company that specializes in the exploration, development and production of crude oil and natural gas in urban areas. The company’s core assets in Long Beach and Signal Hill include more than 400 wells, including the 90-year-old Discovery Well. With a set of core values rooted in a transparent business philosophy, honest approach, and concern for the environment, the company strives to be an excellent neighbor and community partner.
The Long Beach Business Journal’s Annual Focus on Signal Hill highlights SHP’s role in supporting the economic development for the community.
The following is an excerpt from the June 10th community-focused issue, which discussed the local production of oil in Signal Hill.
Written by Samantha Mehlinger
The oilfield under Signal Hill continues to produce more than one million barrels of oil per year, which should generate about $1.2 million in tax revenues in the 2014 to 2015 fiscal year, according to city estimates. This equates to about a 33 percent increase in oil tax revenue from the previous fiscal year. Oil production taxes are the second largest generator of tax revenue for the city, following a sales and use tax.
Signal Hill Petroleum (SHP) has increased oil production this past year through the use of modern technology. A couple of years ago, residents may have noticed trucks driving slowly through the streets, vibrating the ground as they rolled by. These trucks contained SHP employees who were conducting a geological survey of the ground beneath the city and looking to find oil resources through a process called 3D seismic imaging. Using data gathered through this survey, SHP has increased its daily oil production to 3,500 barrels, according to COO and Executive Vice President David Slater.
The production increase has led to an increase in revenues, Slater said. “With the increased revenues, it does give us the opportunity to invest more into the company. It has allowed us to expand and add new jobs,” he said. In the past year, SHP added about 25 additional jobs to its local operations, about 90 percent of which are field operations positions, Slater said. The remaining jobs are engineering and geology-related technical assignments.
“If we have the success we think we’re going to have in the next six months, continuing to grow the company as far as staffing is highly likely,” Slater said. “We’re at a juncture right now where we have staffed up. We’re investing [and] production and revenue are increasing, but we need to see a longer history of successful results before we take another step,” he noted.
California’s regulatory environment is the biggest challenge to business, Slater said. “Our biggest impediment to continuing to grow the business is regulatory permits and specifically [those required by] South Coast Air Quality Management District [SCAQMD],” he explained. “The amount of work preparing permit packages and the time frame to get permits approved is long,” he added. SCAQMD recently implemented reporting requirements for oil and gas companies engaged in well completion or well reworking activities. Under these requirements, companies must notify SCAQMD of the activities and disclose the names and quantities of chemicals used.
Click Here to Read Online Version of the Long Beach Business Journal: Focus on Signal Hill
