The Belridge Oil Field is home to the hydraulic fracking site and pump jacks. It is California's fourth-largest oil field.
Oil bulls are looking very good in the current energy market.
Brent crude oil, an international benchmark, passed the $80 per barrel threshold on Tuesday. However, it has since fallen back to $78.47 by Wednesday morning in London. Around the same time, West Texas Intermediate was trading around $74.73 per bar.
The demand picture looks promising with winter approaching and Europe facing a gas shortage. Experts warn that price rises could lead to demand destruction.
"Oil prices are no longer linked to the marginal cost supply. They are instead moving to the point where demand destruction kicks into, which we estimate at $80/bbl. Morgan Stanley stated this in June. Tuesday's note from the bank said that "This remains our thesis."
However, it stated that the price at which demand destruction kicks into effect can be fiendishly hard to predict. Our price forecast is unchanged, but we recognize that the upside to our bull scenario of $85/bbl on current trends clearly exists."
Morgan Stanley predicts that the global oil supply will become more tight. They cite an average of 3,000,000 barrels of crude per daily inventory draws in the past month, as opposed to 1.9million barrels per-day drawn in the previous months.
Martijn Rats, Amy Sergeant and Amy Sergeant of the bank said that these draws were high and suggested that the market was more undersupplied then generally believed.
