Black Gold Beach: How Oil Transformed Long Beach and Built the Southern California Economy

Signal Hill oil development (Photo: The Huntington Library, Art Museum, and Botanical Gardens)

Southern California, a region synonymous with sandy beaches and Hollywood glitz, harbors a lesser-known but equally dramatic history – its rise and reign as an oil kingdom. This is not the story many people know, even Californians, but the rise and fall of the Southern California oil industry story is a fascinating tale of gushers, fortunes made and squandered, and numerous characters right out of a movie script. If not for oil, Los Angeles — and Southern California as a whole — would be different places today.

The story of oil in Southern California is inextricably linked to the Long Beach fields, an area that once seemed more like a scene from Texas or There Will Be Blood than the Golden State. The discovery of oil in this region wasn’t just a footnote in economic journals; it was a seismic event that transformed the landscape, both literally and metaphorically. And it provided an industrial center of gravity to a region of the state that was just beginning to emerge as one of the world’s great gateways of commerce.

Signal Hill, 1926 (Public Domain)

The early 20th century was the beginning of the era of oil in California. On June 23, 1921 at 9:30 a.m., the Alamitos No. 1 oil well on Signal Hill in Long Beach was drilling 2,765 feet beneath the surface when the drill struck an underground oil deposit. This oil was under high pressure due to natural gas, blowing a gusher of oil over 100 feet high, and heralding the start of the Long Beach oil boom.

This event marked the discovery of one of the most prolific oil fields in the Los Angeles basin. Throughout the 1920s, Signal Hill, along with the nearby Santa Fe Springs field, experienced numerous blowouts, which erupted into dramatic pillars of flame that could be seen for miles. These incidents eventually prompted calls for stricter safety regulations. Consequently, in 1929, the state mandated the use of blow-out prevention equipment on all oil wells drilled in California.

Signal Hill quickly mushroomed into a forest of oil derricks, with fortunes being made overnight. As one of the most productive oil fields in the world, the Long Beach field was at one point yielding a staggering one-third of California’s total oil production. By the mid-1920s, California was producing nearly a quarter of the world’s entire petroleum supply, much of it from the Long Beach area.

Signal Hill, Long Beach oil development. (Public domain)

That so much oil is present beneath the surface of this stretch of Southern California is a gift of geology. Millions of years ago, the area that is now Long Beach was covered by the ocean. This marine environment was ideal for the accumulation of organic material, such as the remains of tiny plants and animals, on the ocean floor.

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Over time, layers of sediment buried this organic matter. The high pressure and temperatures associated with deep burial initiated the transformation of this organic material into hydrocarbons – essentially, the formation of oil. Southern California is, of course, known for its active tectonics, influenced by the Pacific and North American Plate boundary. This tectonic activity has created a complex network of faults and folds in the earth’s crust in the Long Beach area.

The folding of the earth’s layers into anticlines (a type of fold that is convex up and has its oldest beds at its core) and the formation of fault traps (where displaced rocks create a seal that traps oil) are particularly important. These structures create reservoirs where oil can accumulate and be preserved over geological time scales.

Map of the Long Beach oil field.

As the oil flowed, so did the stories of those who sought their fortune in black gold. Perhaps the most famous of these was Edward L. Doheny, a name synonymous with California oil. Doheny, an ambitious prospector, was one of the first to recognize the potential of the Los Angeles Basin’s oil fields. His success in the oil industry was meteoric, but it was not without controversy, as he was later embroiled in the infamous Teapot Dome scandal.

Portrait of oil magnate Edward L. Doheny (Wikipedia)

The impact of oil production in Southern California extended beyond economics. It reshaped the region’s landscape, both physically and culturally. Towns sprung up around oil fields, and workers flocked to the area, drawn by the promise of jobs and prosperity. Long Beach, once a sleepy coastal town, burgeoned into a bustling city.

During the 1920s, regulations on well spacing were minimal, allowing Signal Hill to market narrow town lots. These lots were swiftly purchased by aspiring oil tycoons who installed wells so close to each other that they almost touched. Despite the dense placement, the wells generally remained profitable, though they rapidly depleted the oil field. The hill earned the nickname “Porcupine Hill” due to its appearance from afar, bristling with numerous wooden oil derricks since the more compact “nodding-donkey” pumpjack had not yet been developed.

The booming oil industry in the region attracted a massive influx of workers and investments. As oil fields expanded, Long Beach rapidly transformed from a seaside resort into an industrial powerhouse. The surge in economic activity and the availability of abundant oil fueled the growth of industries in and around Long Beach, including the burgeoning shipping and maritime sectors.

Container ships outside the Port of Los Angeles during the Covid lockdown in 2020. (Photo: Erik Olsen)

The construction of the Port of Los Angeles, which began in earnest in the early 1900s, was driven by the need to support the growing economic activities in Southern California, including agriculture, manufacturing, and oil. The proximity of Long Beach to the port, only about 20 miles south, meant that it was strategically positioned to benefit from and contribute to the port’s activities. The port served as a critical node for shipping oil, among other goods, which further integrated Long Beach, and Southern California as a whole, into the global trade system.

Signal Hill in Long Beach today. (Erik Olsen)

Moreover, the infrastructure developments necessary to support the oil industry, such as roads, railroads, and later pipelines, also facilitated the growth of the port. These developments enhanced the logistical capabilities of the region, making it more attractive for commercial and industrial activities. The oil boom thus not only transformed Long Beach but also had a cascading effect on the development of the Port of Los Angeles, cementing the region’s role as a vital hub in international trade and commerce.

As big and diverse in industry Los Angeles has become, it mostly started with oil. The fact that Los Angeles is now hardly known for oil, but better known for its massive entertainment and tourism economies is an astonishing transformation.

Of course, the influx of wealth and people also brought challenges, including environmental concerns and the need for regulatory oversight. It is well known that several major oil spills have taken place off the coast, ruining beaches and killing animals by the millions. In 1969, the Santa Barbara oil spill released vast quantities of oil into the ocean, creating an environmental disaster along the California coastline. This catastrophic event galvanized public awareness and activism, leading to the creation of the first Earth Day, as well as significant environmental legislation, including the establishment of the U.S. Environmental Protection Agency.

The oil slick visible around Platform A in the Santa Barbara Channel emanated from fissures in the seabed. (Photo: USGS)

Oil spills continue to take place in Southern California and the existence of 26 rigs off the coast are a reminder of that oil boom era. Those rigs are coming to the end of their productive life, however, and an on-gong controversy is what to do with them. Remove them or leave them — or part of them — as artificial reefs?

Over time, oil production in Southern California has waxed and waned. The easily accessible oil has largely been extracted, and production has declined from its mid-20th-century peak. Yet, the legacy of this era persists. It’s etched into the region’s physical and cultural landscape, from the bobbing oil derricks still dotting Signal Hill to the fortunes and institutions built on oil money.

The story of oil in Southern California, particularly the Long Beach fields, is a saga of geologic luck, ambition, ingenuity, and, at times, dangerous greed. It’s a chapter in the state’s history that’s as rich and complex as the oil that still lies beneath its surface, and yet it remains largely unknown to many people who think of Southern California as a paradise of sand and rolling waves.

 

 

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