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	<title>fracking rules &#8211; CalWatchdog.com</title>
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		<title>Why hope for CA oil boom is fading fast</title>
		<link>https://calwatchdog.com/2016/09/11/hope-ca-oil-boom-fading-fast/</link>
					<comments>https://calwatchdog.com/2016/09/11/hope-ca-oil-boom-fading-fast/#comments</comments>
		
		<dc:creator><![CDATA[Chris Reed]]></dc:creator>
		<pubDate>Mon, 12 Sep 2016 02:16:43 +0000</pubDate>
				<category><![CDATA[Blog]]></category>
		<category><![CDATA[$20 billion in new tax revenue]]></category>
		<category><![CDATA[Chris Reed]]></category>
		<category><![CDATA[Judge Michael Fitzgerald]]></category>
		<category><![CDATA[environmentalists]]></category>
		<category><![CDATA[fracking rules]]></category>
		<category><![CDATA[fracking]]></category>
		<category><![CDATA[California reserves]]></category>
		<category><![CDATA[hydraulic fracturing]]></category>
		<category><![CDATA[estimated revised down]]></category>
		<category><![CDATA[Jerry Brown]]></category>
		<category><![CDATA[Monterey Shale]]></category>
		<category><![CDATA[Sally Jewell]]></category>
		<category><![CDATA[2011 report]]></category>
		<category><![CDATA[15 billion barrels]]></category>
		<category><![CDATA[2013 USC report]]></category>
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					<description><![CDATA[It took some time, but a 2011 report by the Federal Energy Information Administration that estimated that California’s Monterey shale underground land mass formation had 15.4 billion barrels of accessible]]></description>
										<content:encoded><![CDATA[<p><span style="font-weight: 400;"><img fetchpriority="high" decoding="async" class="alignnone size-full wp-image-50632" src="http://calwatchdog.com/wp-content/uploads/2013/10/Fracking-ban1-300x248.jpg" alt="Fracking-ban1-300x248" width="300" height="248" align="right" hspace="20" />It took some time, but a 2011 report by the Federal Energy Information Administration that estimated that California’s Monterey shale underground land mass formation had 15.4 billion barrels of accessible oil and a follow-up study that put the figure at 13.7 billion barrels of oil &#8212; about twice as much as the rest of the nation combined &#8212; got plenty of folks’ attention. Advances in hydraulic fracturing, known as fracking, made extracting the oil cost-effective.</span></p>
<p><span style="font-weight: 400;">Excitement about a possible oil bonanza was stoked by a 2012 City Journal </span><a href="http://www.city-journal.org/html/california-needs-crude-awakening-13489.html" target="_blank" rel="noopener"><span style="font-weight: 400;">analysis</span></a><span style="font-weight: 400;">. That continued to build in early 2013 after word spread that oil companies were already </span><a href="http://www.cnbc.com/id/100480051" target="_blank" rel="noopener"><span style="font-weight: 400;">buying land</span></a><span style="font-weight: 400;"> above the 1,750-square-mile shale formation, which extends across much of central California to the Santa Barbara-San Luis Obispo coast. Then came a 2013 USC </span><a href="http://gen.usc.edu/assets/001/84955.pdf" target="_blank" rel="noopener"><span style="font-weight: 400;">study</span></a><span style="font-weight: 400;"> that estimated development of the Monterey shale could boost the state’s economic activity by 14.3 percent and had the potential to generate nearly $25 billion in new state tax revenue by 2020.</span></p>
<p><span style="font-weight: 400;">In January 2014, Gov. Jerry Brown made headlines when he said he was open to allowing fracking in California, getting </span><a href="https://www.thenation.com/article/if-jerry-brown-so-green-why-he-allowing-fracking-california/" target="_blank" rel="noopener"><span style="font-weight: 400;">blasted</span></a><span style="font-weight: 400;"> by environmentalists as a result. Fracking, which involves the use of underground water cannons to eradicate rock formations and allow access to previously unreachable oil and natural gas reserves, has been targeted by green groups on safety and health grounds for a decade.</span></p>
<p><span style="font-weight: 400;">But it’s been all downhill ever since for those enthusiastic about oil exploration in the Golden State. It’s not just that low oil prices have left energy companies facing a </span><a href="http://www.houstonchronicle.com/business/energy/article/World-of-hurt-for-energy-industry-8770263.php" target="_blank" rel="noopener"><span style="font-weight: 400;">“world of hurt,”</span></a><span style="font-weight: 400;"> in the words of the Houston Chronicle, and without the resources to pursue large new drilling programs in California or elsewhere. It’s specific, daunting developments.</span></p>
<p><span style="font-weight: 400;">Last week, Los Angeles-based U.S. District Judge Michael Fitzgerald </span><a href="http://www.reuters.com/article/us-california-fracking-idUSKCN11D2N6" target="_blank" rel="noopener"><span style="font-weight: 400;">halted plans </span></a><span style="font-weight: 400;">to allow fracking of the Monterey shale on public lands in central California and rebuked the U.S. Bureau of Land Management for failing to do a full review of the environmental effects of the extraction technique.</span></p>
<p><span style="font-weight: 400;">In July 2015, state officials released final rules on fracking that were billed as the </span><a href="http://www.latimes.com/local/lanow/la-me-ln-state-issues-fracking-rules-20150701-story.html" target="_blank" rel="noopener"><span style="font-weight: 400;">toughest</span></a><span style="font-weight: 400;"> in the nation. They were seen as much more onerous than the tough-but-manageable draft rules released in fall 2013 to the </span><a href="http://www.breitlingenergy.com/phillyburbs-com-tough-fracking-law-embraced-by-oilman/" target="_blank" rel="noopener"><span style="font-weight: 400;">applause</span></a><span style="font-weight: 400;"> of energy companies.</span></p>
<p><span style="font-weight: 400;">And in May 2014, the federal Energy Information Administration &#8212; the same agency that triggered the interest in the Monterey shale in the first place &#8212; </span><a href="http://www.latimes.com/business/la-fi-oil-20140521-story.html" target="_blank" rel="noopener"><span style="font-weight: 400;">cut its estimate</span></a><span style="font-weight: 400;"> of how much oil could be recovered from the underground rock formation by 96 percent, to 600 million barrels.</span></p>
<h4>Obama administration still backs fracking in state</h4>
<p><span style="font-weight: 400;"><img decoding="async" class="alignnone size-full wp-image-55127" src="http://calwatchdog.com/wp-content/uploads/2013/12/sally.jewell.jpg" alt="sally.jewell" width="354" height="297" align="right" hspace="20" srcset="https://calwatchdog.com/wp-content/uploads/2013/12/sally.jewell.jpg 354w, https://calwatchdog.com/wp-content/uploads/2013/12/sally.jewell-300x251.jpg 300w" sizes="(max-width: 354px) 100vw, 354px" />Who remains enthusiastic about oil exploration in California? U.S. Interior Secretary Sally Jewell, who last year criticized local governments in the Golden State for adopting fracking bans. </span></p>
<p><span style="font-weight: 400;">“There is a lot of misinformation about fracking,” Jewell </span><a href="https://ww2.kqed.org/science/2015/01/02/interior-secretary-local-fracking-bans-are-wrong-way-to-go/" target="_blank" rel="noopener"><span style="font-weight: 400;">told KQED</span></a><span style="font-weight: 400;"> in an interview. “I think that localized efforts or statewide efforts in many cases don’t understand the science behind it and I think there needs to be more science.”</span></p>
<p><span style="font-weight: 400;">That may surprise some, given the Obama administration’s aggressive pursuit of a global climate-change strategy that is based on much less use of fossil fuels. </span><span style="font-weight: 400;">But President Obama campaigned for re-election in 2012 on an “all of the above” strategy for energy production and has continued with the </span><a href="https://www.whitehouse.gov/blog/2014/05/29/new-report-all-above-energy-strategy-path-sustainable-economic-growth" target="_blank" rel="noopener"><span style="font-weight: 400;">approach</span></a><span style="font-weight: 400;"> in his second term.</span></p>
<p><span style="font-weight: 400;">Jewell endorsed the fracking plan for California public land that was blocked last week by the Los Angeles federal judge. The Bureau of Land Management, the agency the judge criticized, is part of the Interior Department.</span></p>
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