Commercial crude oil reserves are virtually nonexistent in Iowa. While the state possesses vast energy resources, particularly coal, biofuels, and wind power, crude oil is not a viable component of its energy portfolio. The state’s geology does not contain the necessary structures to have formed or retained petroleum deposits in quantities that would justify commercial extraction. The historical and modern geological verdict confirms that Iowa is not an oil-producing state.
The Geological Verdict
The formation of commercial oil deposits requires a specific combination of source rock, heat, pressure, and a geological trap to prevent migration. Iowa’s geology, primarily characterized by Paleozoic sedimentary rock, misses some of these requirements, particularly the necessary thermal history. Sedimentary basins in the state, such as the Forest City Basin in the southwest, were not buried deeply enough or heated sufficiently to convert organic matter into large volumes of crude oil.
The northern two-thirds of the state is considered largely negative for oil potential, as the sedimentary layers are too thin. While some black shales suggest the past formation and migration of hydrocarbons, the necessary caprock and reservoir formations are mostly absent or compromised. The state’s rocks were deposited on a stable, shallow shelf environment, which contrasts with the deep, subsiding basins found in major oil-producing regions.
History of Oil and Gas Exploration
Despite the poor geological prognosis, exploratory drilling for oil and gas has been undertaken in Iowa for more than a century. Early efforts date back to the beginning of the 20th century, with State Geologists cautioning against an “oil rush” as early as 1901. Exploration continued through the mid-20th century, culminating in over 120 known exploratory wells drilled across the state by the 1990s.
These drilling efforts yielded only minor traces of oil, which were never sustained for commercial viability. The first and most significant discovery occurred in 1963 in Washington County, which produced a small amount of crude oil. Compared to neighboring oil-producing states, Iowa has one of the lowest numbers of deep exploratory wells, reflecting the long-standing negative assessment of its subsurface potential.
Current Production and Commercial Status
Iowa has essentially zero crude oil production and is one of the only states among the top ten in total energy consumption per capita that does not produce crude oil. The total historical oil production for the entire state amounts to approximately 500 barrels from just three wells, all located in Washington County. These wells are no longer in production, and currently, no producing oil or gas fields exist within the state’s borders.
The U.S. Energy Information Administration (EIA) reports Iowa’s annual crude oil production as zero barrels. This lack of oil activity contrasts sharply with the prolific production seen in bordering states like Illinois, Kansas, and Nebraska, which possess more favorable basin structures. Consequently, there is virtually no ongoing commercial exploration interest in Iowa, as the economic reality does not support the high cost of drilling for tiny, unprofitable reserves.