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Oil production operations in Virginia reported 7,104 barrels in 2017 with an estimated market value of $341 thousand. Oil production was about 5 percent lower than production reported for the previous year.

Crude oil production locations

Figure 1. Crude oil production locations.

"Oil" refers to two types of hydrocarbons, crude and condensate.  Crude oil is produced at the wellhead in liquid form at atmospheric pressures and temperatures.  Condensate is recovered as a byproduct of natural gas production.  The major uses for petroleum products are gasoline, diesel fuel, fuel oil (often used for heating homes), propane, aviation fuel, petrochemical feedstocks, kerosene, lubricants, waxes, and asphalt.

Year of first production in Virginia:  1942
Location of first production in Virginia: Lee County
Year of last production in Virginia: currently producing
Location of last production in Virginia: Buchanan, Russell, Lee, and Wise counties
Total cumulative production: about 958 thousand barrels since 1942
Oil In Virginia Fact Sheet

In 2017, the estimated value of crude oil produced in Virginia ($341 thousand) was calculated using the average domestic crude oil first purchase price of $48.05 per barrel reported by the U.S. Energy Information Administration (EIA).

In the past, crude oil has been produced in Buchanan, Lee, Russell and Wise counties in southwest Virginia.  During 2017, there were 83 permitted wells located in Lee and Wise Counties operated by four companies.

Oil production in Virginia reached its peak level in 1983, with 65,400 barrels produced during that year.  From 1983 to 1999, reported annual production generally declined  reaching the lowest level in 1999 with about 8,804 barrels.  Between 1999 and 2005, annual production increased 200 percent, to a high of 26,417 barrels.  Much of this increase reflected production from several gas wells that, although classified as gas wells because of their high gas to oil production ratio, were also capable of producing oil. In 2017, production was down by 73 percent from the level in 2005.



Virginia oil production

Figure 2. Crude oil production (barrels) and estimated value.


Data sources: Production from the Virginia Department of Mines, Minerals and Energy, Division of Gas and Oil, Abingdon, Virginia (updated yearly). Unit price from the U.S. Department of Energy, Energy Information Administration, Washington, D.C. (updated yearly). Data available upon request.


Other Links:

Virginia Division of Gas and Oil

U.S. Energy Information Administration

Virginia Energy Patterns and Trends


Selected References:
Gilmer, Amy K., Enomoto, Catherine B., Lovett, James A., and Spears, David B., 2005, Mineral and Fossil Fuel Production in Virginia (1999-2003): Virginia Division of Mineral Resource Open File Report 05-04, 77 p.

LeVan, D. C., and Rader, E. K., 1983, Relationship of Stratigraphy to Occurrences of Oil and Gas in Western Virginia; VDMR Publication 43, one sheet.

Milici, Robert C., and Upchurch, Michael L., 1991, VDMR Brochure “Oil and Gas in Virginia” revised 2007.

Miller, R. L., and Fuller, J. O., 1954, Geology and Oil Resources of the Rose Hill District – the Fenster Area of the Cumberland Overthrust Block – Lee County, Virginia; VDMR Bulletin 71, 383 p., 50 pls., 17 figs., 17 tables, 11 geologic sections.

Nolde, J. E., 1992, Oil and Gas Well Data and Geology, Lee County, Virginia; VDMR Publication 113, 13 p., 2 maps, scale 1:50,000.