ELK HILLS, Calif. -- It's being hailed as California's biggest oil discovery in more than 35 years, and it could provide millions of barrels of oil to meet energy demand for years to come.

Occidental Petroleum announced the discovery of the new oil reserve at the Elk Hills oil field, which is the fifth-largest oil field in California and the highest-producing natural gas reserve in the state.

"We see additional potential in our California holdings," said Ray Irani, Oxy's president and CEO. "We are applying current technologies and the newest thinking to exploration and production."

The find holds an estimated 150 million to 250 million barrels of oil equivalent. Approximately two-thirds of that is natural gas, while the remainder is oil.

Officials would not disclose where on the field the discovery was made, but Oxy has drilled six wells to distinguish the location, and it will drill 17 more to help extract the oil and natural gas, along with expanding a processing facility at Elk Hills.

"The aerial geologic extent, which is still being defined, consists of both conventional oil and conventional gas-bearing zones," said Steve Chazen, Oxy's chief financial officer. "It is probable that there are additional reserves outside the currently defined area as the field limits have not yet been seen."

Oxy owns an 80 percent interest in the discovery, while Chevron owns the rights to the remainder of the find.

The expected benefits of the find to Kern County's economy are substantial, including the potential for hundreds of new jobs.

"There's a boatload of engineers that have to be out there, making sure everything's done right," said Les Clark, the executive vice president of the Kern Independent Producers' Agency. "Then you work on down through the pipe fitters, the roustabouts, the roughnecks, the drilling rigs, the welders, it just goes on and on."

Experts say the find could also reduce dependence on imported oil, and increased tax revenue to the county.

"This is exciting," Clark said. "There's a lot of people that would be more than happy for this type of find."

Oxy hopes this will only be the beginning of new oil discoveries in Kern County. It has commissioned a three-dimensional seismic study of the Buena Vista oil field, which neighbors the field in Elk Hills and covers much of the area immediately north and east of Taft to discover potential oil reserves there.