Monterey Shale oil estimates cut by 96%!

[Adeptus]

And remember kids... "Nobody could have seen this coming!". /sarc
One more point for EJ on the ol' scoreboard.

Source: http://news.slashdot.org/story/14/05...hale-oil-by-96

"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."

[vt]

Re: Monterey Shale oil estimates cut by 96%!

http://www.theguardian.com/environme...-fracking-myth

http://www.latimes.com/business/la-f...521-story.html

http://en.wikipedia.org/wiki/Monterey_Formation

[Slimprofits]

Re: Monterey Shale oil estimates cut by 96%!

And remember kids... "Nobody could have seen this coming!". /sarc One more point for EJ on the ol' scoreboard. Source: http://news.slashdot.org/story/14/05...hale-oil-by-96 This is due to multiple factors such as the more complex rippled geology of the shale

Also points to David Hughes, he nailed this one in December 2013: http://www.postcarbon.org/report/197...ality-check-on

The target strata in the Bakken and the Eagle Ford plays are less than a few hundred feet in thickness and are flat-lying to gently dipping. The shale deposits of the Monterey are much thicker and much more complex, with target strata up to 2,000 or more feet in thickness, and at depths that can range from surface outcrops to more than 18,000 feet within a span of forty miles or less.

[Slimprofits]

Re: Monterey Shale oil estimates cut by 96%!

It's interesting to note in a 24/7 total coverage environment that total lack of coverage of this story today. It was one and done cycle of reporting. Also interesting to note that it doesn't appear Monterey played a significant role in the "100 year supply" meme that was initially invented by this group: http://potentialgas.org/press-release scroll down to table 2

[Adeptus]

Re: Monterey Shale oil estimates cut by 96%!

It's interesting to note in a 24/7 total coverage environment that total lack of coverage of this story today.

Hey come on now, clearly they are still very busy looking for flight 370!!

[Slimprofits]

Re: Monterey Shale oil estimates cut by 96%!

Shale debt has almost doubled over the last four years while revenue has gained just 5.6 percent, according to a Bloomberg News analysis of 61 shale drillers. A dozen of those wildcatters are spending at least 10 percent of their sales on interest...

In a measure of the shale industry’s financial burden, debt hit $163.6 billion in the first quarter, according to company records compiled by Bloomberg on 61 exploration and production companies that target oil and natural gas trapped in deep underground layers of rock.

Spending tumbled at 26 of the 61 firms examined.

Chauhan wrote a report last year titled “The Other Tale of Shale” that showed interest expenses are gobbling up a growing share of revenue at 35 companies he studied. Interest expense for the 61 companies examined by Bloomberg totalled almost $2 billion in the first quarter, 4.1 percent of revenue, up from 2.3 percent four years ago.

http://www.bloomberg.com/news/2014-0...for-broke.html

By Asjylyn Loder May 26, 2014 7:00 PM ET

[Slimprofits]

Re: Monterey Shale oil estimates cut by 96%!

The other tale of shale

Published 16 Oct 2013 by Amrita Sen, Virendra Chauhan, Maarten van Mourik

https://www.energyaspects.com/public...-tale-of-shale