Monterey Shale

Thu, 2014-10-16 13:04Steve Horn
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Court Files: Coal CEO Robert Murray Unearths Lease from Aubrey McClendon's New Fracking Company

Robert E. Murray, CEO Murray Energy Corporation

DeSmogBlog has obtained a copy of a sample hydraulic fracturing (“fracking”) lease distributed to Ohio landowners by embattled former CEO and founder of Chesapeake Energy, Aubrey McClendon, now CEO of American Energy Partners

Elisabeth Radow, a New York-based attorney who examined a copy of the lease, told DeSmogBlog she believes the lease “has the effect of granting American Energy Partners the right to use the surface and subsurface to such a great extent that it takes away substantially all of the rights attributable to homeownership.”

The American Energy Partners fracking lease was shaken loose as part of the discovery dispute process in an ongoing court case pitting coal industry executive Robert E. Murraycontroversial CEO of Murray Energy Corporation and American Energy Corporation — against McClendon in the U.S. District Court for the Southern District of Ohio Eastern Division

Murray brought the suit against McClendon back in August 2013, alleging McClendon committed trademark and copyright infringement by using the “American Energy” moniker. Murray’s attorneys used the lease as an exhibit in a Motion to Compel Discovery, filed on September 8, over a year after Murray brought his initial lawsuit. 

The case has ground to a slow halt as the two sides duke it out over discovery issues and related protective order issues, making a large swath of the court records available only to both sides’ attorneys and causing many other records to be heavily redacted.

Out of that dispute has come the American Energy Partners lease, published here for the first time.

Wed, 2014-05-21 16:14Mike G
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Estimates of Recoverable Oil in California's Monterey Shale Slashed 96%

Last year, a post here on DeSmog asked: “Could California's Shale Oil Boom Be Just a Mirage?

For now, the answer appears to be a resounding yes.

According to the LA Times, the US Energy Information Administration (EIA) is set to announce next month that it is officially downgrading its estimate of the oil reserves in California's Monterey Shale from 13.7 billion barrels to 600 million barrels — a 96% decrease.

Modern technology, it seems, is just not up to the task. The EIA will issue its new estimate after reviewing output from oil operations using the latest technologies like fracking and acidization, which eats away rock.

“From the information we've been able to gather, we've not seen evidence that oil extraction in this area is very productive using techniques like fracking,” said John Staub, a petroleum exploration and production analyst with the EIA, according to the LA Times.

At one point, the Monterey Shale was expected to fuel a new “black gold rush” in the Golden State. Initial estimates in 2011 put the amount of recoverable oil from the Monterey Shale at 15.4 billion barrels. The EIA revised this number down to 13.7 billion in 2012, which was still some two-thirds of shale reserves in the entire US.

As the LA Times notes, “The estimate touched off a speculation boom among oil companies. The new findings seem certain to dampen that enthusiasm.”

Environmentalists reacted to news of the downgrade with some relief but little surprise. 

“The oil had always been a statistical fantasy,” says geoscientist J. David Hughes of the Post Carbon Institute, who published a report last December that was critical of the EIA estimates. Hughes' findings were based on an analysis of actual oil production data from the Monterey Shale, which drastically underperformed the industry's projections.

While several of the major oil companies have been wary all along, not everyone is giving up so easily. It's not that the oil isn't there, it's just that the Monterey Shale's unique geography presents challenges for which existing methods have no answer, and there may yet be a technological innovation that will allow the exploitation of the Monterey Shale's reserves.

“As the technologies change, the production rates could also change dramatically,” Tupper Hull, a spokesman for the Western States Petroleum Assn., told the LA Times

Thu, 2013-11-07 09:00Sharon Kelly
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Could California's Shale Oil Boom Be Just a Mirage?

Since the shale rush took off starting in 2005 in Texas, drillers have sprinted from one state to the next, chasing the promise of cheaper, easier, more productive wells. This land rush was fueled by a wild spike in natural gas prices that helped make shale gas drilling attractive even though the costs of fracking were high.

As the selling price of natural gas sank from its historic highs in 2008, much of the luster wore off entire regions that had initially captivated investors, like Louisiana’s Haynesville shale or Arkansas’s Fayetteville, now in decline.

But unlike natural gas prices, oil prices remain high to this day, and investors and policymakers alike remain dazzled by the heady promise of oil from shale rock. Oil and gas companies have wrung significant amounts of black gold from shale oil plays like Texas’s Eagle Ford and North Dakota’s Bakken.

Shale oil, they say, is the next big thing.

“After years of talking about it, we’re finally poised to control our own energy future,” President Obama said in his most recent State of the Union address. “We produce more oil at home than we have in 15 years.”

But once again, the reality may be nothing like the hype. Consider California.

Wed, 2013-11-06 17:44Mike G
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Oil Industry Spending Big To Win Unfettered Fracking Rights In The Golden State

There’s a lot of money at stake for oil companies that want to frack California’s Monterey Shale, so it’s no wonder Big Oil is spending big to forestall any new environmental regulations from biting into profits.

Here’s a particularly striking case in point: Just a week before the California State Senate voted on a bill that would impose new regulations on fracking activities, the Western States Petroleum Association (which represents the likes of Exxon, Chevron, BP, Occidental, Valero, Phillips 66, etc.) treated a dozen lawmakers to a lavish $13,000, 5-course meal at The Kitchen, one of Sacramento’s fanciest restaurants.

Two weeks later, the bill was signed into law by Gov. Jerry Brown, but by then lobbyists had managed to weaken the bill to the point that many environmentalists had withdrawn their support.

Before they passed [the bill], lawmakers accepted new amendments from the oil and gas industry – amendments that undermine the original intent… changing it into a bill we simply can’t support,” said the California League of Conservation Voters.

That $13,000 dinner is a drop in the bucket, of course.

So far in 2013, the oil and gas industry has already spent over $11.5 million on lobbying efforts in California, and it’s not just fracking regulations that are in Big Oil’s crosshairs.

Fri, 2013-06-21 04:00Sharon Kelly
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A Gamble on Shale Job Growth Fails to Pay Off for Governor Corbett, as Fracking Worries Grow Nationwide

Last Friday in Philadelphia, a small crowd gathered outside the Franklin Institute, protest signs in hand. Only a few days before, word went out that Governor Tom Corbett, one of the nation’s least popular governors, would be in Philadelphia, a city that has borne the brunt of many of Mr. Corbett’s crippling budget cuts, and protest organizers said they had mobilized fast.

Inside the museum, Mr. Corbett was speaking at a shale gas summit sponsored by the Keystone Energy Forum, and he was once again touting the benefits of the Marcellus fracking boom.

 “The shale gas industry is helping to sustain more than 240,000 jobs in every corner of our state,” Corbett said. (Many analysts say these numbers are overblown and the impact on the state’s employment has been negligible.)

The speech was textbook Corbett — unapologetic championing of the oil and gas industry, puzzlement at the mounting tide of opposition to fracking, a deep-seated faith in the good intentions of drillers and the benefits they want to bring to Pennsylvania and America.

During this speech, Mr. Corbett made no mention of one drilling services company — Minuteman Environmental Services — that he had extolled as “an American success story” a year ago in a similar speech only to see the company raided by the FBI months later.

And for all the talk about jobs and drilling, no one in the crowd asked him about the recent ranking of Pennsylvania as 49th of 50 states in terms of new job creation.

Thu, 2013-03-14 17:42Steve Horn
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"Frackademia" Strikes Again at USC with "Powering California" Study Release

Frackademia” - shorthand for bogus science, economics and other research results paid for by the oil and gas industry and often conducted by “frackademics” with direct ties to the oil and gas industry - has struck again in California.

It comes in the form of a major University of Southern California (USC) report on the potential economic impacts of a hydraulic fracturing (“fracking”) boom in California's Monterey Shale basin that's hot off the presses, “Powering California: The Monterey Shale and California's Economic Future.”

California Democratic Gov. Jerry Brown recently gave his cautious support to fracking, the toxic process via which oil and gas embedded deep within shale rock basins made famous by the documentary film “Gasland,” currently a topic of contention in California. The new report gleefully says we could be witnessing 1849 all over again, the second-coming of a “Gold Rush,” a term the co-authors utilize 9 times in the Preface. 

The report, co-authored by a Los Angeles-based public relations firm, The Communications Institute (TCI), concludes that “development of the 1,750-square-mile formation in central California could generate half a million new jobs by 2015 and 2.8 million by 2020,” as reported by The Los Angeles Times, which blared the headline, “Tapping California shale oil could add millions of jobs, study says.”  

Given California's population of 37,683,933 people, this would mean 7.4 percent of the state's citizens can gain employment and economic uplift from the industry. It would also shrink the 20.3-percent unemployment rate in the Golden State down drastically, to 12.9 percent. 

“The Monterey shale would help stimulate the California economy to a significant extent,” USC professor and co-author Adam Rose told The Times. “It's not just a benefit to the oil industry. These impacts ripple throughout the economy.”  

While a nice sentiment, the age-old questions quickly arise: who are the authors and who funded this study? 

The answers to these questions, a DeSmogBlog investigation has revealed, paints an entirely different picture of the report's findings and how it came to such rosy conclusions. 

Mon, 2012-10-15 10:52Steve Horn
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Keystone XL Contractor and SUNY Buffalo Shale Institute Conduct LA County's Fracking Study

A huge report was published on Oct. 10 by Los Angeles County that'll likely open the floodgates for hydraulic fracturing (“fracking”) for unconventional oil and gas in the Monterey Shale basin. The report, as it turns out, was done by LA County in name only. 

As the Los Angeles Times explained, the study found “no harm from the method” of fracking as it pertains to extracting shale gas and oil from the Inglewood Oil Field, which the Times explains is “the largest urban oil field in the country.”

In the opening paragraphs of his article, Ruben Vives of the Times wrote,

A long-awaited study released Wednesday says the controversial oil extraction method known as hydraulic fracturing, or fracking, would not harm the environment if used at the Inglewood Oil Field in the Baldwin Hills area.

The yearlong study included several issues raised by residents living around the field, such as the potential risks for groundwater contamination, air pollution and increased seismic activity. 

It's not until the middle of the story that Vives says the study wasn't done by LA County itself, but rather what he describes as a “consulting firm that conducted the study” by the name of Cardno Entrix.

Cardno Entrix isn't any ordinary “consulting firm.”

Sun, 2012-10-14 09:06Steve Horn
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Whitewash: SUNY Buffalo Defends Controversial Shale Gas Institute

On Friday, SUNY Buffalo's President's Office released a lengthy and long-awaited 162-page report upon request of the SUNY System Board of Trustees that delved into the substantive facts surrounding the creation of its increasingly controversial Shale Resources and Society Institute (SRSI).

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