Oil & Gas exploration has become a major source of employment and revenue in the United States since the industry's creation in 1858.

Oil & gas exploration in the United States began in the spring of 1858 when the Seneca Oil Company sent Col. Edwin Drake to investigate an oil spring in Titusville, Pennsylvania. Seneca Oil was seeking an alternative to whale oil for producing kerosene, which in those days was used to fuel lamps in households across America.

Drake’s Folly

Drake’s initial attempts to dig an oil well were unsuccessful because, after drilling about 15 feet, the sides of the hole would collapse. By that point, most people involved with the project were ready to give up. However, Drake came up with the idea of a “drive pipe” whereby 10-foot sections of pipe where lowered into the well, then the drilling tools were inserted through the pipe until they made contact with the rock below. Once each 10-foot-section of pipe was fully inserted into the well, another section would be added. This way, the well hole could not collapse on the drilling equipment. Unfortunately, it was slow going, and the entire project teetered on the brink of failure. Seneca Oil had abandoned the project, and Drake, who was by then personally backing the project, was almost broke. Crowds of locals gathered to jeer at the ungainly pipe contraption, which they nicknamed “Drake’s Folly”.

Then, on August 27, 1859, after drilling down 69.5 feet, the drill bit struck a crevice in the rock. When the crew arrived for work the next morning, they were delighted to see crude oil in the well. The oil was brought to the surface using a hand pitcher pump and collected in a bathtub.

Prior to Drake’s invention, oil was gathered in the United States from seeps. It was unheard of for oil to be pumped out of the ground via a system of pipes. Drake’s new technique allowed oil & gas to be gathered faster and more efficiently, opening a vast market that has continued to grow.

Oil & Gas Industry

Since that day in 1859, oil and gas exploration has become a major source of employment and revenue in the United States. There are currently approximately 6,000 oil & gas companies nationwide. Each of these companies is in search of the next great oil or gas reserve. Oil & gas exploration has exploded again in recent years due to rapidly rising oil prices globally, and the need for legal expertise for oil & gas lease owners has grown with it.

Oil & Gas Law

Oil and gas law is a specialized segment of property and contract law. In fact, in Texas and Wyoming, oil & gas law is tested on the bar exam. There are areas of the United States where landowners and mineral rights owners have a higher chance of being contacted regarding oil & gas exploration. Some of these areas have been in the sights of oil and gas companies for decades, while others have only recently become part of the never ceasing search for new sources of oil and gas. Either way, it is important for landowners and mineral rights owners to understand their rights to compensation (usually in the form of oil & gas royalties) and environmental responsibility from the oil & gas companies.

Arnold & Itkin LLP can help you in your search for a clear understanding of your rights and the oil & gas company’s responsibilities. To contact an Oil & Gas Attorney at Arnold & Itkin LLP, complete the form at right (recommended) or call us at (866)222-2606 for a FREE consultation.