Fraser island for By late 1860, there were some 75 wells producing oil in a part of the state known as the Oil Regions. There were also at least 15 refineries in the area and more in nearby Pittsburgh. The region produced 450,000 barrels in 1860. Production increased with the discovery of the first flowing well in 1861 and by 1862, output was 3 million barrels. Stories of instant wealth attracted many who sought to make their fortune. However, the early oil industry already demonstrated a tendency to be subject to great price fluctuations. Thus, while prices had reached $10 per barrel in January 1861, by the end of the same year prices had declined to a mere 10 cents per barrel. Fraser island 2016.