Posted by Andrew Riggles at 1:00:26This year, the state of California has seen some of the biggest spikes in oil drilling activity in the country, with nearly 10 billion cubic feet of oil drilling in 2017 alone.
That’s a whopping 25 percent increase in oil production, according to data from the Oil & Gas Journal.
“The price of oil has surged,” said David Litt, chief executive officer of the California Oil and Gas Association.
“We have seen this before and this time around we have a lot of things in place to address the price.”
But the industry isn’t just focused on the West Coast, with some companies drilling off the coasts of the Atlantic Ocean, as well.
In New Jersey, for instance, the company is drilling off of the shore of Long Island to find oil.
“This is the perfect storm for a boom,” said Michael Krieger, senior vice president of the company, Global Energy Capital.
“This is a natural boom in North America.”
Litt said that many of the companies that are drilling off North America are also drilling in Alaska, Canada, Brazil and the United Kingdom.
In the United States, Litt said, there are a number of factors that are helping the industry to see more growth.
“We are seeing more people wanting to drill wells,” he said.
“There is a lot more money in the world, and there are less regulations around the world.”
Lott said that the industry is also looking to expand in Europe, with several of the drilling sites in the European Union.
“They are looking to tap into the European market,” he explained.
“The demand is really there and they are just seeing a lot in terms of growth.”
The rise in oil is only the tip of the iceberg, however.
There are also many natural gas drilling projects in California that are being developed, as wells are drilled to tap the natural gas that is stored in shale formations in the state.
In 2016, California approved $5 billion in drilling permits, and the industry was expected to produce an estimated $25 billion in revenues by 2020.
“California has a lot to offer, including natural gas and natural gas-rich shale resources,” Litt explained.