A Very Brief History of Offshore Drilling

A Very Brief History of Offshore Drilling

1886: Offshore drilling commenced off the coast of Summerfield, California, near Santa Barbara. Wooden piers extended up to 1,350 feet from the shore, reaching down nearly 35 feet to the Pacific Ocean floor. Employing onshore drilling techniques, steel pipes were driven 455 feet beneath the seabed. Although it produced oil modestly, the yield peaked in 1902 and the site was later abandoned. The aftermath included a beach tainted with oil, decaying piers, and derricks. A 1903 winter storm and a 1942 tidal wave obliterated the remnants of this pioneering project.

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Key Milestones

1947: The First Floating Well

Kerr-McGee Oil Industries marked a significant offshore milestone by drilling the first successful well out of sight of land, located 10.5 miles off Louisiana's coast in shallow water. This achievement signaled the beginning of deeper offshore explorations.

1950: Legislative Stalemate

Efforts to authorize federal leasing of subsea drilling failed to pass Congress, halting offshore drilling expansions. Individual states had leased their coastal areas, but President Truman's 1945 assertion of exclusive federal jurisdiction over the continental shelf prevailed without enabling federal legislation.

1953: Legislative Progress

The Submerged Lands Act and the Outer Continental Shelf Lands Act were enacted, resolving past legislative disputes. States gained leasing rights within three nautical miles of their coasts, extending to nine miles for Florida and Texas, while the federal government obtained leasing authority in areas beyond state jurisdiction, forming the Outer Continental Shelf (OCS) legally.

1954: Modest Production

Oil production in federal waters was modest, reaching only 133,000 barrels per day—approximately 2% of the U.S. total production at the time.

1968: Largest Oil Field Discovery

The discovery of Prudhoe Bay State No. 1 in Alaska’s North Coast waters revealed North America’s largest oil field. Production began the following year, surpassing 1 million barrels per day by 1978.

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Significant Events

1969: Major Blowout

A blowout at Union Oil Co.'s well in the Santa Barbara Channel resulted in an 800-square-mile oil slick, affecting around 30 miles of Southern California beaches and disrupting marine life. This event spurred stricter federal protections and was partly responsible for the inception of Earth Day.

1971: Rising Production

Offshore oil production in federal waters increased significantly to 1.7 million barrels per day, roughly 20% of U.S. production. This reflected the growing capabilities and significance of offshore drilling operations.

1975: Deep Water Discoveries

Shell Oil Co.'s Cognac Field in the Gulf of Mexico marked the first deep-water discovery at depths exceeding 1,000 feet. Technological advances throughout the 1980s facilitated the transition from shallow to deep water drilling.

Modern Transformations

Throughout the 1980s and 1990s, regulatory and technological evolutions continued to shape the industry. While Congress placed restrictions on offshore drilling, technological improvements, particularly in 3-D seismic technology, increased the success rate of exploratory wells.

The late 1990s saw deep water production surpass shallow water for the first time, and by 2002, offshore production in federal waters reached over 2 million barrels a day.

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