AMERICA ENERGY INDEPENDENCE: NOW THAT’S SOME FUNNY SHIT

I love all those imminent American energy independence propaganda stories reported by the corporate media, paid for by the energy industry, and stated as fact by corrupt bought off politicians across the land. The shale oil miracle is the biggest scam in energy history. The boobs spouting about shale oil saving America either have IQs of 75 or are being paid off by Wall Street shysters or the energy industry.

The nitwits spouting this gibberish always ignore the terms RECOVERABLE and ENERGY RETURN ON ENERGY INVESTED. How convenient. The story below blows a gaping hole in the bullshit spouted by these hacks and scam artists. The Monterey Shale Oil deposits were touted as saving America and generating millions of new jobs in California because it contained 67% of the entire country’s oil reserves.

One itsy bitsy problem revealed today – 96% of it is not RECOVERABLE, even with the fracking technology being employed in the Bakkan and Ford shale fields. Instead of 13.7 billion barrels of oil, we’ll be lucky to get 600 million of extremely expensive shale oil, if any at all. OOPS – missed by that much.

The boobs in Congress and in the White House will ignore these facts, just like they ignore how much energy and capital investment is needed to extract shale oil and gas. We get closer and closer to a 1 to 1 EROI. Once we reach that ratio, the game is up folks. Demographics and the depletion of cheap easy to access energy sources are leading to the Long Emergency and slow collapse of our society.

Storylines and propaganda will not change reality. Oil is $103 per barrel. All the talk of energy independence hasn’t changed the fact that you were paying $1.43 per gallon at the start of the Iraq War in 2003 and today you are paying $3.65 per gallon. What do you think you will be paying per gallon in 2020?

 

U.S. officials cut estimate of recoverable Monterey Shale oil by 96%

By Louis Sahagun

May 21, 2014, 12:00 a.m.

Federal energy authorities have slashed by 96% the estimated amount of recoverable oil buried in California’s vast Monterey Shale deposits, deflating its potential as a national “black gold mine” of petroleum.

Just 600 million barrels of oil can be extracted with existing technology, far below the 13.7 billion barrels once thought recoverable from the jumbled layers of subterranean rock spread across much of Central California, the U.S. Energy Information Administration said.

The new estimate, expected to be released publicly next month, is a blow to the nation’s oil future and to projections that an oil boom would bring as many as 2.8 million new jobs to California and boost tax revenue by $24.6 billion annually.

The Monterey Shale formation contains about two-thirds of the nation’s shale oil reserves. It had been seen as an enormous bonanza, reducing the nation’s need for foreign oil imports through the use of the latest in extraction techniques, including acid treatments, horizontal drilling and fracking.

The energy agency said the earlier estimate of recoverable oil, issued in 2011 by an independent firm under contract with the government, broadly assumed that deposits in the Monterey Shale formation were as easily recoverable as those found in shale formations elsewhere.

The estimate touched off a speculation boom among oil companies. The new findings seem certain to dampen that enthusiasm.

Kern County in particular has seen a flurry of oil activity since 2011, with most of the test wells drilled by independent exploratory companies. Major oil companies have expressed doubts for years about recovering much of the oil.

The problem lies with the geology of the Monterey Shale, a 1,750-mile formation running down the center of California roughly from Sacramento to the Los Angeles basin and including some coastal regions.

Unlike heavily fracked shale deposits in North Dakota and Texas, which are relatively even and layered like a cake, Monterey Shale has been folded and shattered by seismic activity, with the oil found at deeper strata.

Geologists have long known that the rich deposits existed but they were not thought recoverable until the price of oil rose and the industry developed acidization, which eats away rocks, and fracking, the process of injecting millions of gallons of water laced with sand and chemicals deep underground to crack shale formations.

The new analysis from the Energy Information Administration was based, in part, on a review of the output from wells where the new techniques were used.

“From the information we’ve been able to gather, we’ve not seen evidence that oil extraction in this area is very productive using techniques like fracking,” said John Staub, a petroleum exploration and production analyst who led the energy agency’s research.

“Our oil production estimates combined with a dearth of knowledge about geological differences among the oil fields led to erroneous predictions and estimates,” Staub said.

Compared with oil production from the Bakken Shale in North Dakota and the Eagle Ford Shale in Texas, “the Monterey formation is stagnant,” Staub said. He added that the potential for recovering the oil could rise if new technology is developed.

A spokesman for the oil industry expressed optimism that new techniques will eventually open up the Monterey formation.

“We have a lot of confidence in the intelligence and skill

of our engineers and geologists to find ways to adapt,” said Tupper Hull, spokesman for the Western States Petroleum Assn. “As the technologies change, the production rates could also change dramatically.”

Rock Zierman, chief executive of the trade group California Independent Petroleum Assn., which represents many independent exploration companies, also sounded hopeful.

“The smart money is still investing in California oil and gas,” Zierman said.

“The oil is there,” Zierman said. “But this is a tough business.”

Environmental organizations welcomed the news as a turning point in what had been a rush to frack for oil in the Monterey formation.

“The narrative of fracking in the Monterey Shale as necessary for energy independence just had a big hole blown in it,” said Seth B. Shonkoff, executive director of the nonprofit Physicians Scientists & Engineers for Healthy Energy.

J. David Hughes, a geoscientist and spokesman for the nonprofit Post Carbon Institute, said the Monterey formation “was always mythical mother lode puffed up by the oil industry — it never existed.”

Hughes wrote in a report last year that “California should consider its economic and energy future in the absence of an oil production boom from the Monterey Shale.”

The 2011 estimate was done by the Virginia engineering firm Intek Inc.

Christopher Dean, senior associate at Intek, said Tuesday that the firm’s work “was very broad, giving the federal government its first shot at an estimate of recoverable oil in the Monterey Shale. They got more data over time and refined the estimate.”

For California, the analysis throws cold water on economic projections built upon Intek’s projections.

In 2013, a USC analysis, funded in part by the Western States Petroleum Assn., predicted that the Monterey Shale formation could, by 2020, boost California’s gross domestic product by 14%, add $24.6 billion per year in tax revenue and generate 2.8 million new jobs.

[email protected]

Via the LA Times

15
Leave a Reply

avatar
  Subscribe  
Notify of
Persnickety
Persnickety

Actually the game is up at an EROEI of 3:1 or maybe even 4:1. Worse, for reasons Gail has explained, the game is probably up at an EROEI more like 8:1 or 10:1, because the financial system is unlikely to be able to finance exploration and production at those ratios.

I keep hoping that some magical new energy source will ride in from the west and save us.

Until then…

doom
Doom!
DOOM!!!!!!

AWD

They only missed the estimate by 96%? Close enough for government work. As if this wasn’t bad enough, Obama is getting ready to wipe out the American coal industry in total. Coal provides close to 60% of our electricity, and something of value that we export. Nope, Obama is going to kill it, which will double or triple already high electricity prices, and put hundreds of thousands coal miners and support staff out of work.

Obama, the king Midas of shit. Everything he touches turns to shit.

Stucky

A while ago we had a poster with a PhD in Geology who made quite a good case regarding abiotic oil … oil that is created by the earth’s crust and replenishes itself …. and I really think that fella hit the nail on the head, so stop worrying.

Kill Bill
Kill Bill

Many don’t even know that gasoline one of, if not the biggest, American export.

But they will still listen to some unhinged pundit reiterating the likes of Pallin, “Drill Here Drill Now” or some other media tool or politician saying, “American Energy Dependence!”

The last 8, or 9, presidents said the same thing.

On February 6, 1974, Secretary of State Henry Kissinger under President Nixon unveiled ‘Project Independence,’ a comprehensive national energy plan to achieve energy independence by the end of the decade. (Never happened)

Gerald Ford 1975 -I have set the following national energy goals to assure that our future is as secure and as productive as our past: First, we must reduce oil imports by 1 million barrels per day by the end of this year and by 2 million barrels per day by the end of 1977. Second, we must end vulnerability to economic disruption by foreign suppliers by 1985. Third, we must develop our energy technology and resources so that the United States has the ability to supply a significant share of the energy needs of the free world by the end of this century.

(Dint happen and so it goes…..http://www.wupr.org/2014/03/15/attempts-at-independence-2/ )

bb

Hey ,guess you missed the story about the mother load just found in Russia. No wonder the Russian leaders can tell the west to kiss ass.They got oil and lots of it.

MuckAbout

All this “got oil”, “don’t got oil”, “got coal”, “don’t got coal”, won’t mean doodly-squat in 50 years. Long before that 50 years is up, storm surges, wild and wooly weather of all varieties will have made a good chunk around our sea coasts useless and much current productive farmland will dry up and blow away.

Tropical bugs will invade South to North well up to the 45th parallel bringing crop failures and disease (agricultural and human).

Besides that, in order to arrest our march toward killing ourselves off, the population of the ENTIRE WORLD with all its’ billions of ignorant people must all agree to lower their standard of living, consume less of everything – especially energy – and accept a much smaller environmental footprint than that we display right now. Now what are the odds of that happening? Less than 0%.

The three Horsemen will ride along with their Dogs of War long before we even get started talking about it.

Any debate about energy other than how to reduce the use thereof is an exercise in futility and mouthing worthless noise that will accomplish nothing.

MA

Roy

The only way the US will achieve energy independence is if three quarters of the population die off and it has to be the proper three quarters.

Hollow man
Hollow man

When hyperinflation or a severe inflation begins. We will become energy independent. No one will be able to afford much even as we are drowned in dollars.

Zarathustra

Hey I’ve got a brilliant idea. Let’s frack the shit out of the San Andreas Fault!!! What could possibly go wrong?

bb

To all ,you doubt everything this government says but you believe what they say about oil recovery. I think there’s some schizophrenia going on the BF.

BamBam
BamBam

bb, I highly doubt the government would be willing to publish data that would be critical of itself unless it was true or even worse than what there saying.

Next Headline:
“Actually, there’s no oil here. Tim the intern had greasy hands from dollar Tuesday at chicken fiesta and we accidently misinterpreted his smugs as positive geological proof for oil on our survey data.”

IndenturedServant

Stucky says:
A while ago we had a poster with a PhD in Geology who made quite a good case regarding abiotic oil … oil that is created by the earth’s crust and replenishes itself …. and I really think that fella hit the nail on the head, so stop worrying.”

LOL! Fuck Mr. PhD in Geology! If we ever meet in person Stuck, remind me to lay one aside your head!

You do make me laugh!

Stucky

I_S

Thank you I_S.

That was probably my Best Ever dopplegang effort. If I recall correctly, I had Admin so pissed off and up in arms, cussin’ and a fussin’, he was about to ban me … errr, I mean, PhD in Geology.

Kill Bill
Kill Bill

bb, and you want to work for the govt.

Do you even think before you type?

But in cloud cuckoo troll world your a genius, I s’pose.

Discover more from The Burning Platform

Subscribe now to keep reading and get access to the full archive.

Continue reading