California reduces recoverable shale oil by 96%

The U.S. Energy Information Administration (EIA) has reduced its estimate of recoverable oil in California’s Monterey shale formation from 13.7 billion barrels to just 0.6 billion barrels—a reduction of over 95%.

The original estimate were based on figures release in a 2011 report by the EIA which had stated that there was up to 15.4 billion barrels of recoverable tight oil in the state’s Monterey shale formation, 64% of the nation’s total.

monterey

The over inflated figures figures sparked optimism for financial analysts over the state of California’s energy future.

The reduction in recoverable estimates were previously highlighted in a report, “Drilling California: A reality check on the Montery Shale” by geoscientist David Hughes. The report utilised empirical analysis of actual shale oil production data from the Monterey shale formation, basing its figures on data, rather than assumptions.

“We’re pleased that the EIA has corrected what was a groundless and highly misleading over-estimation of the potential of the Monterey,” said Asher Miller, Executive Director of Post Carbon Institute. “We hope that everyone—from the EIA to policymakers and the media—will learn a cautionary lesson from what transpired here in California as we wrestle with questions about what the future of American energy policy can and should be.

Judge rules that fracking risks were illegally overlooked

A court in California has ruled that the issuing of oil and gas leases broke the law because it did not take into account the dangers of fracking, including potential water contamination .  The leases cover 2500 acres of land and are estimated to contain 64% of the United States’ shale oil reserves.  Like shale gas, shale oil is only economically obtainable by using high volume hydraulic fracturing (fracking).  The court found that the Bureau of Land Management violated US environmental law by not carrying out a full environmental impact study.  It was also pointed out that the exploitation of fossil fuels such as shale oil and gas are in conflict with California’s policies to reduce greenhouse gas emissions and slow down catastrophic climate change.

We hope that this cautionary tale will warn our own administration not to make hurried, costly and dangerous decisions that will threaten the economic, health and environmental futures of the people of Fermanagh and Northern Ireland.  Visit our What can I do? page to find out more about how you can make your voice heard.

Read the full article here: Judge rules administration overlooked fracking risks in California mineral leases | Reuters.

[picture from the Reuters article, copyright Reuters/Marco Anzuoni]