Burgess COMMENTARY

Peter Burgess

California: Governor Brown Open to Science-Based Fracking Study

It may take up to 18 months for California, the nation's third-largest oil producing state, to complete an environmental review of fracking, Governor Jerry Brown said.

California lawmakers are looking to other areas of the country, such as Texas and North Dakota, as exemplars of the possibilities of shale gas and unconventional oil exploration.

But California is heavy-laden with environmental activism, and consequent regulations, which have inhibited the state's utilization of the technological advancements that have yielded abundant fruit in shale and unconventional oil plays throughout the country. In September, California legislators passed regulations for state oversight of fracking.

Particularly enticing is the Monterey Shale field, which may hold 15.4 billion barrels, or 64% of the nation's shale-oil reserves, according to U.S. estimates. By comparison, the Bakken Shale is estimated to hold 3.59 billion barrels and the Eagle Ford 3.35 billion. In other words, the Monterey Shale could potentially hold twice as much recoverable shale as the Bakken and Eagle Ford combined.

The Monterey Shale area is approximately 1,750 square miles in the San Joaquin and L.A. basins, according to the EIA. In the play region, the shale is 1,000-3000 feet thick at depths of 8,000-14,000 feet. The shale is organically rich, easily recognized, and widespread in and around the play area.

Several companies, most notably Occidental, are viewing the Monterey Shale as a resource play, and trying to address the aforementioned challenges inherent in the region. But no company has yet been able to consistently characterize the Monterey's geology and develop a fully successful means of tapping its potential.

Occidental owns 1.7 million acres of land in California, of which 1.2 million are in the Monterey region and approximately 900,000 net acres contain shale formations. Other companies involved include Plains E&P, National Fuel Gas Co., and Venoco.

But many analysts express doubt as to the possibility of exploiting the Monterey Shale, primarily because of the inconsistent stratigraphy and geological complexity of the play, as well as the severe regulations governing oil extraction in the state. Thus far, no company has been able to 'crack the code' of the play, and only a handful of exploratory wells have been drilled.

Governor Jerry Brown, whose liberal bona fides are indisputable, has been refreshingly open to the possibility of shale exploration in the state. 'I think we ought to give science a chance before deciding on a ban on fracking.'

California Governor Jerry Brown defies ideological stereotypes

While many pro-fracking observers are positively surprised by the governor's willingness to allow reason and objectivity to guide his own thoughts on the practice, Governor Brown's career has been characterized by episodes of independence that have alternately raised the ire of both the left and the right.

When this writer resided in Oakland, California, in the early 2000s, then-Mayor Brown forged productive alliances with local businesses in order to spur the city's economic growth and address crime, angering the city's progressive elements because of his willingness to work closely with 'capitalists.' Brown also attacked Bill Clinton from the left in the 1992 presidential campaign. Neither has Brown concealed the central role of Jesuit spirituality in his life. He has always been a wild card.

And this time it's the left that feels spurned by Brown's independence. Environmental groups such as the Center for Biological Diversity's Climate Law Institute say fracking poses dangerous risks of air and water contamination. Brown counters that the U.S. drilling boom has also helped reduce U.S. emissions as companies switch from burning coal to cheaper and less pollutant gas.

'So this is a very complicated equation,' Brown said. 'You can be sure that California is doing everything it can to reduce greenhouse gases and support a sustainable economy.'

And, as always with Brown, the key word here is the conjunction and.

There are a lot of unknowns characterizing shale exploration in California. At least the governor is open to exploring whether these unknowns can become knowns.

Jeff Reed Jeff Reed is a native of Houston, TX. and holds a BA in Political Science, M.Div, and MA in Theology. I have a special interest in the politics of energy.