US Officials Cut Estimate of Recoverable Monterey Shale Oil By 96%

First time accepted submitter steam_cannon (1881500) writes "The U.S. Energy Information Administration (EIA.gov) is planning to release a major 96% reserve downgrade to the amount of oil and gas recoverable from the Monterey Shale formation, one of the largest oil/gas reserves in the United States. After several years of intensified exploration the Monterey oil shale play seems to have much less recoverable oil and gas then previously hoped. This is due to multiple factors such as the more complex rippled geology of the shale and over-hyped recovery estimates by investors. By official estimates the Monterey Shale formation makes up 2/3 of the shale reserves in the US and by some estimates 1/3 of all crude reserves in the US. Not a drop in the bucket. Next Month the EIA.gov will be announcing cutting it's estimates for Monterey by 96%. That's a huge blow to the US energy portfolio, trillions of dollars, oil and gas the US might have used for itself or exported. Presently the White House is evaluating making changes to US oil export restrictions so this downgrade may result in changes to US energy policy. As well as have a significant impact on US economy and the economy of California."

Comments

When it comes to "big money"

[anubi]

First, I will say I have worked for a major oil company.

Second, I will say I have read "Twilight in the Desert" by Matthew Simmons, was an ardent follower of The Oil Drum petroleum web site - was more active there than I am here.. That site was full of petroleum engineers and field guys - and I trusted their insight far more than I trust words from any investment advisor sitting behind desk whose job it is to influence my decisions of how to allocate my retirement savings.

And Third, I will say I swallowed the "Peak Oil" paradigm hook line and sinker. Apparently messed up my retirement savings big time by investing in the energy sector as I believed with all my heart that we were in serious decline.

Suddenly fracking made the scene and all the investment buyers saw energy as plentiful again. And the price dropped, And many of the smaller guys sold out.

I cannot help but wonder if all this panic talk is them yet rounding up another round of panicky people and investors to make a poor investment.

I can't help but remember all this talk about how dire our energy situation was coming from our leaders. Then there is no energy crisis, Then there is.

Almost sounds like Donovan singing about petroleum. First there is a crisis, then there is no crisis, then there is.

We pay countless taxes into our government, and countless well-paid bureaucrats are supposed to be leading us, but does anyone up there really know what's going on?

So far, they seem to rank about as reliable as an ouija board.

How in the hell can anyone make rational decisions when no-one seems to take this stuff seriously? It seems lately all our government has wanted to so is snoop. 96% is a helluva big number.

I believe special interest tie guys have the government release all these "facts" in order to manipulate the market.

When I saw fracking, I was and still am concerned that was equivalent to "blowing the gas cap" on a dying oil well as once we relieved the subterranean pressure that was helping to push what was left of the liquid oil to the surface, we were draining the last "fart" from the earth before there was no longer enough energy recoverable from the lift effort than we were able to recover from the oil lifted. It meant the show was over.

I remain very concerned this whole fracking "happy days are here again" thing has been nothing more than a ploy to get control of the remaining oil reserves at a bargain basement price.

Re:Keystone XL

[thegarbz]

Obama is looking to the future of death by oil carrying rail car.

Seriously I work in oil and gas. There pipeline will do NOTHING to hinder or advance the state of green energy. People have product and will sell product and there are plenty of people who want the product given it is sold at an incredible discount to standard oil. One way or the other the oil will get to its customers.

And the result is:
2008: 9500 railcar loads of oil in the USA.
2014: forward estimates indicate 650000 railcar loads of oil in the USA.

No that wasn't a typo. If you're going to transport oil you may as well do it safely. If Obama wants to actually push an environmental agenda then do so economically rather than playing with people's lives and potential oil spills.