Little further economic development took place until the discovery of oil in 1948 at the Russell Ranch Oil Field, and more significantly, in 1949 at the much larger South Cuyama Oil Field.
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This stretch follows the Cuyama River through a canyon separating the Sierra Madre Mountains from mountains in San Luis Obispo County, and then opens out into the Cuyama Valley, passing cattle ranches, going through the Russell Ranch Oil Field, and passing Aliso Canyon Road, the turnoff to the South Cuyama Oil Field.