Geology, regulations make it tough to unlock California's Monterey shale


California's Monterey Shale formation is estimated to hold as much as two-thirds of the recoverable onshore shale oil reserves in the continental U.S., but there's a big catch: It is proving very hard to get.

Monterey holds an estimated 15.4B barrels of recoverable shale oil vs. 3.6B barrels in the Bakken shale, but fracking and other techniques that have worked elsewhere don’t work as well and are more expensive.

On Friday, California Gov. Jerry Brown signed into law tough restrictions on fracking, which immediately drew criticism from the oil industry for being too restrictive and from environmentalists for being short on protections.

Comments (9)
  • saratogahawk
    , contributor
    Comments (2534) | Send Message
     
    The rule should be that if you impose undue burden on accessing the hydrocarbon source you are restricted from participating in the receipt of hydrocarbons from other US states. Simple, just like the removal of interstate barriers to the disposal of solid and hazardous waste. California should stew for a while in its own juices and not get Bakken or other US oil and gas. That would serve them right.
    23 Sep 2013, 06:51 PM Reply Like
  • SoldHigh
    , contributor
    Comments (991) | Send Message
     
    These dangerous environmentalists won't be happy until we're all living in caves
    23 Sep 2013, 10:03 PM Reply Like
  • john001
    , contributor
    Comments (1201) | Send Message
     
    Don't call it "recoverable onshore shale oil reserves" if it is not economic to produce. That is totally incorrect, albeit good press.
    24 Sep 2013, 12:08 AM Reply Like
  • saratogahawk
    , contributor
    Comments (2534) | Send Message
     
    The oil companies wont go for it unless it IS economic to produce.
    24 Sep 2013, 08:52 AM Reply Like
  • john001
    , contributor
    Comments (1201) | Send Message
     
    he classification as "reserves" carries very specific requirements.
    24 Sep 2013, 09:25 AM Reply Like
  • saratogahawk
    , contributor
    Comments (2534) | Send Message
     
    Here's a link showing the major California fields with proved and probable reserves.

     

    http://bit.ly/xG4SQ6
    24 Sep 2013, 09:42 AM Reply Like
  • saratogahawk
    , contributor
    Comments (2534) | Send Message
     
    Proved reserves in Ca are down from 2007 base year vs up nationwide. No new field discoveries since 2008 vs new fields and new reservoirs in old fields nationwide. It sure appears that Cal is killing its energy industry.

     

    http://1.usa.gov/16wfmMw
    24 Sep 2013, 10:36 AM Reply Like
  • bankstocks
    , contributor
    Comments (1604) | Send Message
     
    SaratogaHawk:

     

    You should read the OXY 2Q conference call, particularly the Q&A to follow. Sounds to me like they are going to spin the CA assets into a stand alone E&P in 2014. SELF FUNDING and growing TOO!

     

    They are saying they have like 6B recoverable resource in CA alone. They ARE the largest producer and largest landowner in CA.

     

    Hopefully the teachers at CALPERS get greedy to fund their retirements and jump all over the SPINCO and then pressure Sacramento to go lighten up on the fraccing.

     

    There is a funny IRONY to all this, OXY does a pant load of steam, waterflood, and CO2 already in CA to keep the existing conventional all going. This is already in place and much more unclean and hazardous than FRACCING.

     

    So, where's the BEEF?
    27 Sep 2013, 06:53 PM Reply Like
  • saratogahawk
    , contributor
    Comments (2534) | Send Message
     
    bankstocks I so totally agree. Fracking is so much better than some of the older techniques. I really can't see the objections from a technical viewpoint. However, 40 years working in environment and energy has taught me that issue oriented opposition groups will spring up on anything and everything. I have even been shot at more than once in my work by wild eyed econuts and I was one of the very early environmental engineers in the business so I have always been vested in blending balanced development with environmental protections. However, some of these wackos only see it their way.
    28 Sep 2013, 11:00 AM Reply Like
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