California Shale oil boom apparently ended before it even started
California's oil boom has apparently ended before it even started as recent estimates suggested that the existing technologies are unable to extract previously estimated amount of shale oil.
As per the U. S. Energy Information Administration's (EIA's) estimates, more than 15 billion barrels were technically recoverable from the Monterey Shale. Those estimates were based on a report from a contractor that depended heavily on oil industry data rather than independent data.
But a new report last week reduced that estimated achievable deep shale oil by a whopping 96 per cent in California, calling into question the oil industry's claims about of a decades-long revival in U. S. oil production.
According to the previous estimates, the oil boom was supposed to generate 2.8 million new jobs in California by the year of 2020. The Golden State was also supposed to gain additional income of around $220 billion and another $24 billion in additional tax revenues in the year of 2020 alone.
But, the EIA is now preparing to cut its estimate of technically recoverable oil in the state's Monterey Shale, after taking a closer look at more precise data for already drilled wells.
However Tupper Hull, spokesperson for the Western States Petroleum Association, argued, "People forget that the boom taking place in Texas and particularly North Dakota did not happen overnight. There were decades of operators trying to understand the technology and the geology."
Nevertheless, the new estimates that suggest almost complete wipeout have put weight to skepticism that any shale oil boom will die out in the next few years.
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