Outer Continental Shelf (OCS) oil and gas exploration and development have been under way in the Pacific (Southern California) Region since 1966. During that time, there have been four Federal lease sales: in 1966, 1968, 1975 (Sale 35), and 1979 (Sale 48). Oil and gas production from three leases has been going on since 1968. It peaked in 1971 and now averages around 31,400 barrels of oil and 15.4 million cubic feet of gas per day. Discoveries on areas leased in the 1968 and 1975 sales have led to plans for eight new platforms to begin production in the early 1980's. Five platforms are in the eastern end of Santa Barbara Channel, one is in the western Channel, and two are in San Pedro Bay, south of Long Beach. Three rigs are doing exploratory drilling in the Region.

The most recent estimates by the U.S. Geological Survey of remaining reserves for all identified fields in the Southern California Region are 695 million barrels of oil and 1,575 billion cubic feet of gas (January 1979). The USGS has also made risked estimates of economically recoverable oil and gas resources for all the leased tracts in the Region (March 1980). These risked estimates of economically recoverable resources are 394 billion barrels of oil and 1,295 billion cubic feet of gas. The USGS estimates of undiscovered recoverable resources for the entire Southern California OCS Region (January 1980) are 3,200 million barrels of oil and 3,400 billion cubic feet of gas.

Because of the long history of oil and gas production in Southern California from wells onshore and in State waters, there are many existing facilities for the transportation, processing, and refining of oil and gas. Some of the expected new OCS production can be accommodated in these facilities. Four new onshore projects will be required. Two of these are under construction: (1) a 9.6-km (6-mi) onshore oil pipeline (capacity: 60,000 bpd) between Carpinteria (Santa Barbara County) and the existing Mobil-Rincon separation and treatment facility (Ventura County), and (2) a small supply base and dock (upgrade of existing facility) and a 0.4-hectare (1-acre) crude oil distribution facility in Long Beach (Los Angeles County), connected to landfall by a 3-km (1.8-mi) onshore pipeline. The two other facilities are awaiting permit approval: (1) a gas treatment plant at Las Flores Canyon (Santa Barbara County) and (2) a separation and treatment plant at Mandalay Beach (Ventura County) with 4 km (2.5 mi) of onshore pipeline on the same right-of-way from landfall to the plant and from the plant to an existing gas transmission line.