Important news.--Tom Mathews
-----Original Message-----
From: Asher Miller, Post Carbon Institute <[log in to unmask]>
To: Friend <[log in to unmask]>
Sent: Wed, May 21, 2014 1:20 pm
Subject: BREAKING: EIA downgrades Monterey Shale estimate by 95%
FOR IMMEDIATE RELEASE: MAY 21, 2014
Contact: Asher Miller
POST CARBON INSTITUTE
Contact: Dr. Seth Shonkoff
PSE HEALTHY ENERGY
BREAKING: Gov’t Slashes Calif. Oil Estimate
Federal Government Reduces Monterey Tight Oil Estimate by Over 95%
Oakland, California (May 21, 2014) — In an article released last night, the Los Angeles Times reports that the Energy Information Administration (EIA) has drastically 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 downgrade has major implications for California’s energy and economic future, as well as the debate over hydraulic fracturing (“fracking”) and other forms of well stimulation-enabled oil development. The perception of an impending oil boom has dominated energy policy discussions in California since the release of a 2011 report by EIA which had estimated up to 15.4 billion barrels of recoverable tight oil—64% of the nation’s total—in the state’s Monterey shale formation. The estimate was widely cited by drilling proponents, and economic forecasts based on it projected millions of new jobs and billions in new tax revenue.
“The oil had always been a statistical fantasy,” said geoscientist J. David Hughes, author of Drilling California: A Reality Check on the Monterey Shale, an influential report critical of the EIA’s original Monterey estimates. “Left out of all the hoopla was the fact that the EIA’s estimate was little more than a back-of-the-envelope calculation.”
Hughes’s report, published by PSE Healthy Energy and Post Carbon Institute in December 2013, was the first public analysis of actual oil production data from the Monterey Shale and the formation’s geological characteristics. The report found that all data suggested that the EIA estimates were wildly over-optimistic. INTEK, Inc., the source of the EIA’s original estimate, has since admitted that its Monterey figures were derived from technical reports and presentations from oil companies rather than hard data.
“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.”
“Now that Californians have a far more accurate idea of what promise the Monterey Shale does and does not hold,” added Dr. Seth B. Shonkoff, Executive Director of Physicians, Scientists and Engineers for Health Energy (PSE), “we must carefully weigh the benefits against the costs associated with fracking and other well stimulation-enabled oil and gas development.”
###
ABOUT J. DAVID HUGHES
J. David Hughes is a geoscientist who has studied the energy resources of Canada and North America for nearly four decades, including 32 years with the Geological Survey of Canada as a scientist and research manager. Over the past decade, Mr. Hughes has researched, published and lectured widely on global energy and sustainability issues in North America and internationally. He is a Fellow of the Post Carbon Institute and a board member of Physicians, Scientists & Engineers for Healthy Energy (PSE).
http://bit.ly/PCIhughes
ABOUT PSE HEALTHY ENERGY
Physicians, Scientists & Engineers for Healthy Energy (PSE) is a science-based organization dedicated to bringing scientific transparency to energy policy issues. PSE Healthy Energy empowers citizens and policymakers by generating, translating, and disseminating evidence-based scientific information.
http://www.psehealthyenergy.org
ABOUT POST CARBON INSTITUTE
Post Carbon Institute provides individuals, communities, businesses, and governments with the resources needed to understand and respond to the interrelated economic, energy, and environmental crises that define the 21st century. PCI envisions a world of resilient communities and re-localized economies that thrive within ecological bounds.
http://www.postcarbon.org
###
Share
Tweet
Forward
Copyright © 2014 Post Carbon Institute, All rights reserved.
You are receiving this email because you subscribed to one of Post Carbon Institute's mailing lists by signing up at our website or an event, or by requesting a sample publication. If you'd like to cut down on your inbox clutter, we understand. Simply hit the unsubscribe link below and have a great day.
Our mailing address is:
Post Carbon Institute
613 4th Street, Ste 208
Santa Rosa, California 95404
Add us to your address book
unsubscribe from this list update subscription preferences
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
To unsubscribe from the IOWA-TOPICS list, send any message to:
[log in to unmask]
Check out our Listserv Lists support site for more information:
http://www.sierraclub.org/lists/faq.asp
To view the Sierra Club List Terms & Conditions, see:
http://www.sierraclub.org/lists/terms.asp