jerry brown

Thu, 2013-11-07 09:00Sharon Kelly
Sharon Kelly's picture

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.

Mon, 2013-06-17 12:03Mike G
Mike G's picture

Who Is Fracking With California?

California has become the newest battleground state in the fracking fight that is already being waged in states like Pennsylvania and New York. Why?

The short answer is the Monterey Shale. It’s a massive oil deposit that is trapped in the shale formations underneath Los Angeles and most of California’s Central Coast and Central Valley regions (as well as all of the sources of drinking water for the people living in those regions). It was considered too difficult to reach to be worth it until fracking technology came along.

The rush to exploit the Monterey Shale’s reserves has spurred three bills moving through the California state legislature that would halt all fracking in the Golden State until its impacts can be studied more fully, not unlike what has happened in New York and New Jersey. Unlike New Jersey’s ban, which expired in January, the California legislation would require further legislative action to lift. It also stipulates that fracking cannot be done close to valuable water sources, and that all chemicals used in the process must be disclosed.

Environmentalists oppose fracking because of the many dangers, known and unknown, that it poses to the environment and human health. Contamination of water supplies is the major concern, as is the amount of fresh water required by fracking operations, and the fact that injecting water and chemicals to fracture the ground is maybe not a great idea in earthquake-prone California.

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