Offshore oil drilling started in the late 1890s off the coast of California and moved into the Gulf of Mexico in 1938. The Gulf of Mexico currently provides 15 percent of the nation’s oil.
The exploration history of the U.S. offshore oil and natural gas industry began in the Pacific Ocean at the end of the 19th century. In 1896, a 300-foot pier was built off the Santa Barbara Channel in California and a standard cable-tool rig was mounted on it. By 1897, this first offshore well was producing oil, which lasted for 25 years. Another 22 companies joined in, constructing 14 more piers and over 400 wells within the next five years. Early explorers noticed bubbles in the water from natural seeps of oil that gave them clues that oil might lie beneath the ocean. In 1911, Gulf Refining Company abandoned the use of piers, drilling in Caddo Lake, Louisiana, using a fleet of tugboats, barges, and floating pile drivers. The well (Ferry Lake No. 1) was drilled to a depth of 2,185 feet and produced 450 barrels per day.
