The Yates Oil Field, located in the heart of the Permian Basin, remains one of the most iconic and prolific oil fields in U.S. history. Discovered in 1926 on the ranch of Ira G. Yates, the field straddles Pecos and Crockett counties in West Texas. Nearly a century later, Yates continues to attract attention from oil and gas professionals, investors, and mineral owners alike. With over one billion barrels of oil produced, its historical significance and operational longevity reflect the broader resilience and strategic importance of mature fields in today’s energy landscape.
While many oil fields have seen their production peak and fade, Yates stands out for its exceptional lifespan, ability to evolve with technology, and geological richness. As the Permian Basin continues to anchor U.S. oil production, understanding the past and future of Yates is critical for stakeholders assessing long-term asset value in West Texas.
A Giant Born from West Texas Grit
The discovery of the Yates Oil Field in 1926 marked a transformative moment in Permian Basin development. The field emerged from a lease between Ira G. Yates, a local rancher, and the Transcontinental Oil Company. Their collaboration led to the drilling of the Ira G. Yates 1-A well, which struck oil in the San Andres Formation at a relatively shallow depth and exceeded early production expectations.
The Yates 30-A well, drilled to a depth of just 1,070 feet, produced a staggering 204,672 barrels of oil per day, or about 8,528 barrels per hour, making it the most productive single well in U.S. history up to that time.
But it was on September 14, 1929, that Yates truly made national headlines. The Yates 30-A well, drilled to a depth of just 1,070 feet, produced a staggering 204,672 barrels of oil per day, or about 8,528 barrels per hour, making it the most productive single well in U.S. history up to that time. This extraordinary well, operated jointly by Transcontinental Oil Company and Mid-Kansas Oil and Gas Company (then a subsidiary of Ohio Oil Company), was located only a few hundred yards from the original 1926 discovery.
According to the Handbook of Texas Online, the Yates 30-A well remains one of the most impressive feats in early U.S. petroleum history. Its explosive productivity triggered a rapid economic boom in Midland and Odessa, transforming the region almost overnight. Oil-related infrastructure, housing, and services expanded, and both towns would go on to become central hubs of Permian oil activity.
While the Yates Field was officially discovered in 1926, it built upon earlier indications of hydrocarbons in the basin. The Permian Basin’s massive resource potential was first validated by the drilling of Santa Rita No. 1 in 1923 in Reagan County. That well confirmed the basin’s commercial viability and laid the foundation for West Texas’s emergence as a petroleum super-region.
The early success of Yates, combined with shallow drilling depths and high-pressure zones, allowed for exceptionally high-margin production. This drew the interest of major oil operators and helped establish a legacy of profitability that still benefits mineral owners and producers to this day.
Engineering Innovation and Reservoir Management
One reason the Yates Field continues to produce after nearly a century is its reservoir quality and the use of advanced recovery techniques. After decades of primary production, operators introduced pressure maintenance strategies, including waterflooding in the 1970s and CO₂ injection programs that began in earnest in the 1980s and 1990s.
The San Andres Formation, which underlies most of the field, features excellent porosity and permeability. This made it ideal for enhanced oil recovery (EOR). CO₂ injection has been particularly successful in unlocking additional volumes of trapped oil, with tens of millions of barrels produced through tertiary recovery.
More recently, digital tools such as 3D seismic imaging, reservoir simulation, and real-time production analytics have been applied to the field. These technologies help optimize infill drilling and maximize recovery while minimizing costs and environmental impact. Even in such a mature field, the use of horizontal wells and modern analytics continues to uncover bypassed zones of oil.
Over the decades, the Yates Field has passed through the hands of several operators. Marathon Oil and Kinder Morgan previously held significant positions, but the most recent transition occurred in 2019, when Occidental Petroleum acquired Anadarko Petroleum, and with it, operational control of Yates. Oxy has focused on maximizing value through improved CO₂ injection strategies and disciplined capital management.
For mineral owners, the consistent investment in Yates has meant a long-running source of royalty income. As CO₂ EOR operations improve and prices stabilize, the field offers reliable and relatively low-risk returns for royalty holders and working interest partners alike.
The Role of Yates in a Transitioning Energy Economy
As the energy sector moves toward decarbonization, mature oil fields like Yates offer a practical bridge between current demand and future sustainability. Unlike new developments, legacy fields often rely on existing infrastructure, minimizing surface disruption and capital costs. This not only makes them economically attractive but also reduces the environmental footprint per barrel of oil produced.
Furthermore, CO₂ injection—an essential EOR method at Yates—can contribute to carbon sequestration efforts. Injected CO₂ remains trapped in the formation, effectively removing it from the atmosphere. This dual benefit of increasing oil recovery and reducing net emissions gives fields like Yates a unique place in emerging carbon management strategies.
With lifting costs significantly lower than those in unconventional shale plays, Yates remains a profitable asset even during periods of price volatility. The field’s predictable behavior and abundant production history also make it a model for effective long-term reservoir management.
For professionals evaluating asset portfolios, and mineral owners seeking enduring value, Yates is more than a legacy—it’s a long-term performer. Its resilience, combined with modern recovery techniques and potential carbon benefits, reinforces its strategic importance in the broader Permian Basin narrative.
Conclusion
The Yates Oil Field is a monument to West Texas ingenuity, endurance, and geological wealth. From the early success of the 1926 discovery to the staggering output of the Yates 30-A well in 1929, the field has remained an integral part of America’s oil story. With more than one billion barrels of oil produced and new technologies unlocking even more, Yates continues to generate value nearly 100 years after its discovery.
In an era where operators seek efficiency, environmental stewardship, and long-term returns, fields like Yates offer a clear path forward. For mineral owners and oil and gas professionals alike, its story is far from over.
Some historical references are attributed to the Texas State Historical Association and public company filings. Data regarding enhanced recovery sourced from the U.S. Department of Energy.
Summary
Discovery and Early History
🔘Discovery on Yates Ranch: In 1915, Ira G. Yates purchased a 20,000-acre ranch in an arid part of Texas. Years later, after facing financial difficulties, Yates leased his land to Mid-Kansas Oil and Gas Company (later Marathon Oil) and Transcontinental Oil Company.
🔘A sensational strike: The discovery well, Yates “A” No. 1, was drilled in 1926. It initially produced a large volume of gas and some oil at a shallow depth of about 1,000 feet. After being deepened, it became a massive gusher, setting off a drilling boom.
🔘First proration plan: To manage the immense production and prevent a collapse in oil prices, Yates field operators voluntarily adopted Texas’s first complete proration plan in 1927. The Texas Railroad Commission officially approved and administered this conservation effort starting in 1928.
🔘Record-breaking well: In 1929, the Yates “30-A” well set a world record for single-well production, flowing at a rate of 204,672 barrels of oil per day.
Geology and Production
🔘Permian Basin setting: Yates field sits on a domal fold at the southeastern end of the Permian Basin’s Central Basin Platform.
🔘Karst-carbonate reservoir: The oil is trapped within highly porous, Permian-age carbonate rock formations, including the San Andres and Grayburg Dolomite. Over time, fresh water dissolved portions of the limestone, creating an extensive karst system of caves and fractures that facilitated oil accumulation.
🔘Exceptional productivity: The field’s extremely high porosity and natural pressure allowed for prolific initial production at a shallow depth.
🔘Enhanced oil recovery: After production began to decline, operators, including Marathon Oil and later Kinder Morgan, implemented advanced recovery techniques such as gas injection, waterflooding, polymer flooding, and carbon dioxide (CO2) injection. These methods increased reservoir pressure and maximized oil recovery.
🔘Long-term production: The field produced its billionth barrel of oil in 1985 and has proven to be one of the longest-producing fields in the country.
Legacy
🔘Economic impact: The Yates field played a key role in the economic development of West Texas during the 1920s boom. The town of Iraan was named for Ira and Ann Yates.
🔘Conservation milestone: The cooperative proration effort at Yates field set a precedent for oil and gas conservation regulation in Texas.
🔘Ongoing activity: Although now mature, the field remains active, with new techniques, such as hydraulic fracturing, continuing to revitalize production in the Permian Basin.
