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-   -   Monterey Shale in California: 15.4 billion barrels of oil (http://www.cleanmpg.com/forums/showthread.php?t=46029)

herm 12-19-2012 09:38 PM

Monterey Shale in California: 15.4 billion barrels of oil
 
double the combined reserves of North Dakota’s Bakken Shale and Texas’ Eagle Ford Shale

http://www.cleanmpg.com/photos/data/501/moneyoilwell.jpg
Bradley Olson - BLOOMBERG - Dec 19, 2012

Convenient for export to China from the West Coast --Ed.

California, even as it seeks to be the greenest U.S. state, stands a good chance of emerging as the nation’s top oil producer in the next decade, helping America toward what once seemed an unlikely goal of energy independence.

The catalyst is the U.S. Bureau of Land Management’s sale last week of 15 leases covering about 18,000 acres of the Monterey Shale, a geologic formation whose sweet spots stretch from east of San Francisco more than 200 miles south to Monterey County. The auction was dominated by Los Angeles-based Occidental Petroleum Corp. (OXY) and smaller companies betting on a coming boom. Yesterday California regulators issued a draft of new rules to sharpen their oversight of the surge in fracking.

While shale developments have been most associated with natural gas, the ribbed-shaped Monterey could hold 15.4 billion barrels of oil, according to the federal Energy Information Administration. That amounts to 64 percent of all estimated U.S. shale oil reserves and double the combined reserves of North Dakota’s Bakken Shale and Texas’ Eagle Ford Shale, where energy companies are spending billions to ramp up output.

The leap in technology known as hydraulic fracturing, or fracking, has already found trillions of cubic feet of gas and billions of barrels of oil around the nation. The Monterey’s prospects coupled with a favorable oil price means “that renaissance is coming to California,” says Phil McPherson, a former energy analyst who is now chief financial officer of Citadel Exploration Inc. (COIL), a California-focused oil company.

In perhaps a sign of the economic times, Governor Jerry Brown, a Democrat, dismissed the state’s top two oil regulators last year after permits for new drilling and wastewater wells had slowed to a trickle. Producers including Occidental say approvals have quickened, allowing them to continue their drilling programs after a slowdown. Also buoying the Monterey’s prospects: a bill in the California legislature that would have put a moratorium on fracking failed to gain traction this year.

“You certainly won’t see enthusiasm in Napa and Sonoma, some of the bluer parts of the state,” says Berkeley’s Borenstein. “But many areas have been more depressed economically, so I think many people would welcome it.”[Read More]

ILAveo 12-19-2012 09:50 PM

Re: Monterey Shale in California: 15.4 billion barrels of oil
 
The geology in CA is a lot different from other places that are currently fracking (like Bakken). Lots of upthrusts and folds and such in the bedded rock. Gotta be a lot of technical challenges in propagating cracks in folded rock.

Jay 12-19-2012 09:56 PM

Re: Monterey Shale in California: 15.4 billion barrels of oil
 
In my area, one oil company got fed up with dealing with the local permitting bureacracy and sold their oil rights to an Australian oil company that met with similar permitting troubles. Now the Australian company is suing local officials for restricting their oil rights, and so on and so on...

We have some oil here but local attitudes must change before any of it will come to market.

phoebeisis 12-20-2012 08:11 AM

Re: Monterey Shale in California: 15.4 billion barrels of oil
 
Poor economy-few jobs-changes everything.
For many years it was just states like Louisiana-with a poor and poorly educated population-that would accept drilling etc.
Of course our pols were on the take-literally.
One family-Perez's-in Plaquamine parish-sold themselves the mineral rights-and manage to obscure what they had done by distracting folks with "integration concerns"-the OLD JUDGE PEREZ- even got himself EX-COMMUNICATED-for his racial stance-something very very tough to do in south louisiana- yeah an evil rich family "camel etc"

So CA has to make sure their local pols aren't skimming off ALL the cream! Yeah-don't let the Pols steal it! By stealing it I mean taking it for their family-I fully expect them to tax it heavily-save CA with jobs and taxes

herm 12-20-2012 09:38 AM

Re: Monterey Shale in California: 15.4 billion barrels of oil
 
It will be entertaining to watch the econutz trying to stop this.

phoebeisis 12-20-2012 09:44 AM

Re: Monterey Shale in California: 15.4 billion barrels of oil
 
$$$ and jobs trump eco concerns when the economy is poor extremely poor as it is in CA
Pols want to get re-elected
the strongest eco folks are upper middle class folks-they are greatly outweighed by less affluent

Earthling 12-20-2012 02:37 PM

Re: Monterey Shale in California: 15.4 billion barrels of oil
 
The economy isn't exactly gang-busters in rural New York but fracking is still verboten. Meanwhile PA is very busy drilling and fracking...

EdwinTheMagnificent 12-20-2012 08:20 PM

Re: Monterey Shale in California: 15.4 billion barrels of oil
 
So.................. does this mean I can go buy a Silverado for a "great" price and fill it up with $2.099/gallon fuel ? Yee Haw !

herm 12-20-2012 09:09 PM

Re: Monterey Shale in California: 15.4 billion barrels of oil
 
soon, good days are back again!

Carcus 12-20-2012 09:33 PM

Re: Monterey Shale in California: 15.4 billion barrels of oil
 
The depletion rate on these wells is high,... something on the order of 40% year over year. So the vast majority of production from a single well bore is done at about the 5 year point.

But, ... the operators may very well come back and drill multiple bores (from the same pad) over the years. They'll move out to the side about a quarter mile or go to different depths.


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