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Could Monterey Shale Save California?
Investor's Business Daily ^ | February 5, 2013 | IBD EDITORIALS

Posted on 02/05/2013 4:26:07 PM PST by raptor22

Energy: The former Golden State is floating in debt, even as it sits on two-thirds of America's shale oil reserves locked in a formation four times the size of the one that sparked North Dakota's economic boom.

North Dakota is now the largest oil producer in the country after Texas with a monthly oil output of about 20 million barrels. North Dakota's oil boom accounts for 11% of U.S. oil production, and it is the impetus behind the state's $3.8 billion surplus and an unemployment rate of just 3.2%, the lowest in the nation.

California is not running a surplus, but it is sitting on a lot more oil than is contained in the Bakken shale formation North Dakota straddles. Covering 1,750 square miles from southern to central California, the Monterey shale formation has untapped deposits estimated at 15.4 billion barrels, according to the United States Energy Information Administration.

Until recently, the complex geology of the formation has made exploration and extraction prohibitively expensive.

But as with oil from the Bakken shale in North Dakota and natural gas extracted from the Marcellus formation in the Northeast, technological advances have unleashed a bounty of riches, pushing proven reserves upward and smashing the myth of peak oil.

The key technology behind the boom is hydraulic fracturing, or fracking, in which fluids are injected into the porous rock under high pressure to fracture the rock and release the oil or natural gas, which can then be pumped to the surface.

Combined with horizontal drilling, great stores of energy can be released with a minimal footprint.

(Excerpt) Read more at news.investors.com ...


TOPICS: Business/Economy; Editorial; Government; US: California; US: North Dakota
KEYWORDS: bakken; california; energy; fracking; ibd; ibdfracking; ibdibdenergy; marcellus; montereyshale; shale

1 posted on 02/05/2013 4:26:22 PM PST by raptor22
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To: raptor22

It would if they would DRILL BABY DRILL, but they will not.


2 posted on 02/05/2013 4:28:29 PM PST by EXCH54FE (Hurricane 416 "It’s one thing to make a law, It’s another to enforce it.")
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To: raptor22

Brown will issue a 100 year moratorium on harvesting any shale resources .... there, fixed that. Now back to watching the golden state disintegrate.


3 posted on 02/05/2013 4:31:16 PM PST by RS_Rider (I hate Illinois Nazis)
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To: EXCH54FE
They will build windmills and solar "farms" on top of it though.
4 posted on 02/05/2013 4:33:22 PM PST by hinckley buzzard
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To: raptor22

Hollywood does not like fracking. Let’s tax the rich and pursue solar energy instead. /s


5 posted on 02/05/2013 4:34:06 PM PST by forgotten man (forgotten man)
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To: raptor22
Does anyone seriously believe that Kalifornia would allow oil or natural gas to be drilled for? They'd sit in the dark roasting or freezing to death before they'd even consider the idea.
6 posted on 02/05/2013 4:35:32 PM PST by bitterohiogunclinger (Proudly casting a heavy carbon footprint as I clean my guns ---)
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To: raptor22

We have laws against profitable stuff like this.


7 posted on 02/05/2013 4:39:11 PM PST by sasquatch
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To: raptor22

All hype aside, California produces about as much as Texas right now, but I doubt they would increase it, especially offshore.


8 posted on 02/05/2013 4:42:56 PM PST by Vince Ferrer
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To: Nachum; markomalley; Clairity; Carlucci; grey_whiskers; meyer; WL-law; Para-Ord.45; ...

IBD EDITORIAL PING


9 posted on 02/05/2013 4:43:26 PM PST by raptor22 (Visit my blog at True Conservatives on Twitter: http://t.co/IKpP3cwq)
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To: raptor22

We don’t call him Governor Moonbeam for nothing.


10 posted on 02/05/2013 4:43:41 PM PST by Argus
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To: raptor22
California holds the record of the most ignorant ass hats in the Country. The collection of the most stupid, Hollywood holds the record. Sacrament’s foundation is so pure hard left of the left that the entire city stinks. Could have been the greatest State in the Country but will never come back. Can’t get rid of the garbage. Sorry so hard on this bunch is ignorant nitwits but had to be said.
11 posted on 02/05/2013 4:53:56 PM PST by Logical me
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To: thackney

Ping.


12 posted on 02/05/2013 4:58:38 PM PST by Army Air Corps (Four Fried Chickens and a Coke)
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To: Grampa Dave; granite; GreenFreeper; grjr21; I got the rope; IchBinEinBerliner; jaredt112; JayB; ...

IBD EDITORIAL PING


13 posted on 02/05/2013 4:59:24 PM PST by raptor22 (Visit my blog at True Conservatives on Twitter: http://t.co/IKpP3cwq)
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To: forgotten man

I live here in CA, and unfortunately the radical left Dems control the state. They will probably ban any increase in Fracking in CA, to appease Matt Damon.


14 posted on 02/05/2013 5:01:28 PM PST by kgrif_Salinas
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To: raptor22
More like 500 Billion barrels.

Covering 1,750 square miles from southern to central California, the Monterey shale formation has untapped deposits estimated at 15.4 billion barrels, according to the United States Energy Information Administration.


15 posted on 02/05/2013 5:08:55 PM PST by spokeshave (The only people better off today than 4 years ago are the Prisoners at Guantanamo.)
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To: bitterohiogunclinger

California has ALWAYS had the means to create their own prosperity, they just WON’T.

Blessed with the broadest array of natural resources any political subdividion on the planet enjoys, somehow they have attracted a mind-set that gleefully proceeds to deny the exploitation of even one bit of it. True, in the earlier rush to make the most of what they could extract from the earth and mold into new fabrications, they went to some excesses that for a time made the LA Basin almost uninhabitable, what with the overcrowding and poor control of industrial wastes, and caused whole mountains to be washed away in the haste to extract gold, but now, with time to reflect on how to proceed a little more prudently and with attention to secondary consequences, all of the extraction industries and processing of the materials may be done with an acceptable level of by-products, which in themselves can be turned into an additional source of new products and services.

But like sulking children, the residue left with the earlier widespread exploitations is now “somebody else’s” problem, and they won’t, they just WON’T, allow it to happen again.

Just as a single example, California is no longer self-sufficient in production of electric power, refusing to build generation plants within the state, but preferring to buy power generated elsewhere, some from as far away as Canada. This necessarily drives up the price in the surrounding states, as they must compete for the available killowatts on the grid, and since electric power cannot be stored, that puts stress on the entire grid as distant plants are called in for additional power, or switched off because of a fluctuation in demand.

Natural gas power generation plants COULD be set up, on the ready, and would supply the peak power demands. The nature of their operation is such that these plants can spool up and be on line in MINUTES, where it may take a day or more for more conventional steam plants to pick up the load. More importantly, the same fast-response generation stations can be cut out of the grid as the demand drops, also unlike a steam plant, which takes another day to cool out.

But no, there is a superstitious fear of C-A-R-B-O-N D-I-O-X-I-D-E, a mysterious demon that will cause everybody to drop writhing on the ground and gasping for breath.

These people are so ducking fumb, it is to make heads explode.


16 posted on 02/05/2013 5:11:32 PM PST by alloysteel (If conspiracy does not exist everywhere, it exists nowhere.)
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To: raptor22
NO... because they won't let it
17 posted on 02/05/2013 5:13:24 PM PST by Chode (Stand UP and Be Counted, or line up and be numbered - *DTOM* -ww- NO Pity for the LAZY)
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To: raptor22
I believe that the global Left does want these energy resources in the United States, but that they are hiding behind environmental groups to stop the current constitutional republic that is occupying this continent from exploiting the resources.

They are using environmental extremism to, one-by-one, close off America's natural resources from our own use, strangling our economy and crippling our growth. If America were ever driven to finally use our resources, we'd grow strong again - on our terms - which the global Left cannot allow.

Just watch. If the United States as it is currently constituted ever falls, the Left will rush in to take those natural resources for themselves, that they denied us.

That's my conspiracy theory.

-PJ

18 posted on 02/05/2013 5:14:30 PM PST by Political Junkie Too (If you are the Posterity of We the People, then you are a Natural Born Citizen.)
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To: Still Thinking; StopGlobalWhining; Straight Vermonter; Tampa Caver; TChris; ...

IBD EDITORIAL PING


19 posted on 02/05/2013 5:19:03 PM PST by raptor22 (Visit my blog at True Conservatives on Twitter: http://t.co/IKpP3cwq)
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To: raptor22

The Monterey/Santos shale formations span an area of about 1,750 square miles and hold 1,000 – 3,000 feet thick shale deposits, located 8,000 to 14,000 feet underground. These formations hold an estimated 15.4 billion barrels of oil.

20 posted on 02/05/2013 5:51:23 PM PST by concentric circles
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To: Political Junkie Too

At some point in the next four years or perhaps a little longer if the Left things they have sufficient control of the voting machines, I expect nationalization of energy so that the Government can get the total income from it. Of course that revenue will begin an incessant decline at that point as Enco et al become PEMEXUSA.


21 posted on 02/05/2013 6:08:07 PM PST by arthurus (Read Hazlitt's Economics In One Lesson ONLINE www.fee.org/library/books/economics-in-one-lesson)
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To: Political Junkie Too

At some point in the next four years or perhaps a little longer if the Left thinks they have sufficient control of the voting machines, I expect nationalization of energy so that the Government can get the total income from it. Of course that revenue will begin an incessant decline at that point as Enco et al become PEMEXUSA.


22 posted on 02/05/2013 6:08:25 PM PST by arthurus (Read Hazlitt's Economics In One Lesson ONLINE www.fee.org/library/books/economics-in-one-lesson)
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To: raptor22

Dear fellow Friends of the Shales: for far too long, the innocent shales have been locked up underground! It is time for them to be set free! Free the shales! Free the shales! Free the shales!


23 posted on 02/05/2013 6:17:54 PM PST by blueunicorn6 ("A crack shot and a good dancer")
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To: spokeshave

The high speed rail (to nowhere) runs right through it. Hmm...


24 posted on 02/05/2013 6:27:09 PM PST by Selene
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To: raptor22
Could Monterey Shale Save California?

Until blatant stupidity and/or incompetence is completely excised from elected and bureaucratic government, NOTHING CAN SAVE CALIFORNIA.

Is that stating the obvious?

25 posted on 02/05/2013 6:34:29 PM PST by publius911 (Look for the Union Label -- then buy something else)
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To: bitterohiogunclinger

“Does anyone seriously believe that Kalifornia would allow oil or natural gas to be drilled for? They’d sit in the dark roasting or freezing to death before they’d even consider the idea.”

Absolutely correct in your assessment.

However, Kalifornia won’t _be_ Kalifornia forever. Eventually it may become part of a “Greater Mexico” (at least the southern half).

If that happens, the influence of the gringos will mean nuthin’, and the drills will drill.


26 posted on 02/05/2013 8:02:22 PM PST by Road Glide
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To: Vince Ferrer
California produces about as much as Texas right now,

These figures would indicate otherwise. Do you have a source that contradicts this?

27 posted on 02/05/2013 8:43:51 PM PST by Michael.SF. (Obama lied, Stevens died.)
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To: bitterohiogunclinger

What’s that quip:there’s nothing that concentrates the mind more than the thought of being hung in the morning. Even in California it gets close to dawn.


28 posted on 02/05/2013 10:47:39 PM PST by RobbyS (Christus rex.)
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To: Michael.SF.

And the potential production in Texas is huge. There’s a huge shale formation in the Permian Basin. My guess is that in the near future, Texas reserves will exceed those of the Persian Gulf.


29 posted on 02/05/2013 10:51:52 PM PST by RobbyS (Christus rex.)
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To: raptor22
Could Monterey Shale Save California?

I certainly hope not. As it is, Kali's current condition is a good case study in collectivism and mushy liberal feel-thinking as applied to policy. It would be a shame if something capitalistic showed up at the last minute and saved them in such a way that it made collectivist central planning look better than it really is. People are stupid. They need their lessons to be crystal clear with no possibility of confusion.

30 posted on 02/05/2013 11:20:51 PM PST by Still Thinking (Freedom is NOT a loophole!)
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To: Vince Ferrer

California produces about a quarter of Texas Oil Production.

In Nov 2012 it was 2,139 MBPD to 533 MBPD.

On top of that Texas is climbing fast while California continues to fall in production rates.

Texas Field Production of Crude Oil
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPTX2&f=M

California Field Production of Crude Oil
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPCA2&f=M


31 posted on 02/06/2013 5:44:55 AM PST by thackney (life is fragile, handle with prayer)
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To: Vince Ferrer
Image and video hosting by TinyPic

Image and video hosting by TinyPic

32 posted on 02/06/2013 5:48:01 AM PST by thackney (life is fragile, handle with prayer)
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To: raptor22

Look at where this shale is. Can you imagine the NIMBY screams? It'll never happen, no matter how bad CA's budget issues get.

33 posted on 02/06/2013 5:52:03 AM PST by Future Snake Eater (CrossFit.com)
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To: bitterohiogunclinger; Road Glide
Does anyone seriously believe that Kalifornia would allow oil or natural gas to be drilled for?

While California throws up a lot of road blocks to oil/gas drilling, they have not completely shut it down. There are currently 32 rigs drilling for oil in the state, one of those is offshore near long beach. The links below show 34 but if you look on the map two are geothermal wells.

Rig Count by state
http://files.shareholder.com/downloads/BHI/2187729679x0x632433/1D53425D-5782-4820-A7A4-422FF8466F4A/Rigs_by_State_020113.pdf

Interactive map of drilling rigs
http://gis.bakerhughesdirect.com/RigCounts/default2.aspx

34 posted on 02/06/2013 6:17:52 AM PST by thackney (life is fragile, handle with prayer)
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To: Future Snake Eater

Interacting North America Current Drilling Map
http://gis.bakerhughesdirect.com/RigCounts/default2.aspx

Click on the above link and you will find 32 oil drilling rigs working in the general area.


35 posted on 02/06/2013 6:25:49 AM PST by thackney (life is fragile, handle with prayer)
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To: Future Snake Eater
You are correct in that it will not happen as in the Bakken region, but the NIMBY syndrome will not come from those who live within the oval drawn, as that area is both desolate and more conservative then the rest of the state. The Nimby syndrome will emanate from the red areas:


36 posted on 02/06/2013 4:25:06 PM PST by Michael.SF. (Obama lied, Stevens died.)
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To: Michael.SF.
These figures would indicate otherwise. Do you have a source that contradicts this?

I was going from memory from something I read six months ago. I looked around the internet, but couldn't find anything like I had remembered, so I may have remembered it wrong.

37 posted on 02/06/2013 6:01:36 PM PST by Vince Ferrer
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To: Vince Ferrer
Memory, they say that is the second thing to go as we age. The first of course is............ damn, I forgot.

;)

38 posted on 02/06/2013 6:38:54 PM PST by Michael.SF. (Obama lied, Stevens died.)
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To: Vince Ferrer

Nope. Texas is in first place, North Dakota second. California is in the top five or six, though.


39 posted on 02/07/2013 6:51:42 AM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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To: spokeshave

A lot depends on who is doing the estimates. The EIA has been wildly inaccurate in the past, pump and dump stock hypesters have been worse, and the USGS tends to be conservative in their estimates (they have a scientific reputation to maintain, unlike the others) until given reason to revise those estimates upward. It was so with the Bakken with the USGS, but if I was going to be venturing capital, I’d take USGS estimates over the others in a heartbeat.


40 posted on 02/07/2013 6:56:11 AM PST by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing)
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