listen on the web
Newport Beach oil fields
NEWPORT BEACH CaliforniaNewport Beach Mayor Michael Henn discussed the operation of city owned oil fields in West Newport.
We have 16 wells, 15 of which are operating, 14 of which actually pump oil.
So, we pump about 30,000 barrels of oil a year for the benefit of Newport Beach. It benefits out tidelands fund to the extent of, in excess of a million dollars net every year.
Those fields used to pump 60,000 barrels of oil.
30,000 barrels of oil at todays price is worth a lot more than 60,000 barrels was 20 years ago.
In 1991, Texas Light Sweet Crude Oil, the kind Newport Beach pumps, was around $21 a barrel. The current price is $92.08 a barrel.
So, wed like to find a way, if we can, if it makes sense, to reestablish a better production capability out of our oil fields to the benefit of funding our huge needs for improvements in our tidelands.
Some of Newport Beachs wells are as much as sixty years old. They are slant drilled to deep under the Pacific. Redrilling can cost as much as $200,000 per well.