A Current Overview of Nevada's Petroleum Activity

Scott Byron McDaniel

The oil industry in Nevada had its origin in August 1907, when Dr. Tibbetts of Washoe Oil and Development, spudded an 1,890-ft well in the terraces overlooking the Truckee River, due west of Reno. Continued pioneer exploration led to the 1954 discovery of the Eagle Springs field by Shell Oil Company in Railroad Valley, Nye County, Nevada. By 1984, four additional oil fields were discovered and the number of permits to drill issued by the Nevada Department of Minerals rose to 69 (versus 11 issued in 1983). This phenomenal increase is attributed to the discovery of the Grant Canyon field in Railroad Valley by Northwest Exploration in September 1983. Presently, the 3 Grant Canyon well is one of the most prolific in the lower 48 states. This well has the capacity to flow more than 3,000 BOPD from the Devonian Simonson Formation at approximately 4,300 ft depth. Two other fields, the Trap Spring and Bacon Flat, are also located in Railroad Valley. The Blackburn field (operated by Amoco Production Company) also has prolific reef production from the Devonian Nevada Formation. This field is located in Pine Valley, Eureka County, Nevada. Although the present rig count is low, owing to world economics, Nevada's vast frontier potential continues to merit consideration as a major exploration target area for the late 1980s. Nevada had a peak production of 3.04 million barrels of oil in 1985. Future activity is expected to surpass this figure.

AAPG Search and Discovery Article #91040©1987 AAPG Rocky Mountain Section Meeting, Boise, Idaho, September 13-16, 1987.