Okay, before we get ahead of ourselves, let's first clarify this is not Prudhoe Bay, the East Texas Oil Field, Wilmington or even Thuderhorse. But it's a respectable find, particularly for a state long past its oil glory: 150 million to 250 million barrels of oil equivalent reserves, the bulk of it in natural gas. Located in Kern County, it's the state's largest find in over 35 years.
Occidental reported earlier they were bucking conventional wisdom, looking for California crude where others saw dirt. That was July 25; who would have guessed they would strike this lucky, this quickly? And good timing, too: their second-quarter profit slumped 70%.
California-based Occidental Petroleum Corp. announced a significant discovery in the south of the state that it says is among the largest finds in 35 years.
Occidental said it made new discoveries in Kern County, Calif. The U.S. energy giant said it believes there are between 150 million and 250 million barrels of oil equivalent reserves in the discovery area.
Ray Irani, chairman and chief executive officer at Occidental, said it is "probable" there are additional resources in place outside the delineated area, which it plans to explore within the next five years.
The bulk of the reserves in the discovery zone are in natural gas. Irani lauded the discovery as one of the biggest finds in decades.
"We believe this to be the largest new oil and gas discovery made in California in more than 35 years," he said.