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KERN BUSINESS JOURNAL
21
In the Oil Patch
‘Fracking’ brings jobs, energy independence Rock Zierman is the chief executive officer of the California Independent Petroleum Association. Based in Sacramento, the non-profit, non-partisan trade association represents more than 530 independent petroleum producers, service and supply companies, and royalty owners, including many in Kern County. “In the Oil Patch” is a regular Kern Business Journal feature that asks local industry leaders to comment on developments in Kern County’s oil field.
grown energy means less dependence on foreign oil from regimes with much less stringent environmental standards than California. In addition, the renaissance in natural gas shales in other parts of the country has opened new possibilities for the expansion of the use of CNG vehicles, such as the type that are essential to helping improve air quality throughout our state. Is fracking safe?
What is the oil-producing technique known as fracking?
Hydraulic fracturing (“fracking”) is a safe, proven and well-understood technology that has been used more than 1.2 million times in the U.S., including here in California, since the 1940s. Hydraulic fracturing is a well completion technique that involves pumping fluid (99.5 percent water and sand) at high pressure into a well to create fractures in shale formations thousands of feet (often miles) underground. This allows hydrocarbons to flow into a wellhead that otherwise couldn’t and makes the production of shale oil or shale gas economically viable. What are its benefits?
According to the U.S. Chamber of Commerce’s Institute for 21st Century Energy, shale and unconventional energy will be responsible for 2.5 million jobs by 2015 and 3.5 million jobs by 2025. Last year, shale development was responsible for $62 billion in tax revenue. Here in California, we sit on what is thought to be one of the largest shale formations on the planet, the Monterey Shale. The additional potential benefits to our employment rate, our economy, our environment and our depleted state coffers could be dramatic. The Monterey Shale is said to contain as many as 15 billion barrels of oil that are recoverable, and its development could unleash a surge in employment and revenue that would go a long way toward helping California
Henry A. Barrios / The Californian
Workers complete an oil well repair and maintenance project in the Belridge field, west of Bakersfield.
get its fiscal house in order. Though we cannot predict what will ultimately be produced, the Monterey Shale is thought to be five times larger than the Eagle Ford Shale in Texas, which generates $25 billion in economic activity, nearly 50,000 jobs, and $600 million a year in tax revenue. There are also environmental benefits. According to the International Energy Agency, the U.S. is leading the world in cutting carbon dioxide emissions largely because of increased production and use of shale gas. And more home-
Yes. The safety of hydraulic fracturing has been confirmed time and again by the scientific community and regulators from many states, as well as from Republican and Democratic administrations. Two recent examples: President Obama’s Interior Secretary Ken Salazar: “There’s a lot of hysteria that takes place now with respect to hydraulic fracking … My point of view, based on my own study of hydraulic fracking, is that it can be done safely and has been done safely hundreds of thousands of times.” (Feb. 15, 2012) President Obama’s top energy and climate adviser Heather Zichal: “We know that natural gas can safely be developed, and to the credit of the industry there are many companies that are leaning into this challenge and promoting best practices for safer and more efficient production. That’s not always widely noticed or appreciated, but it’s a fact.” (May 15, 2012) Can we have both environment protection and energy production using fracking?
Yes, we have that now. Californians have seen oil and gas production in action for more than a century. We continue to lead the nation in our stewardship of the environment and remain one of the nation’s largest energy producing states. To learn more about fracking, go to www.energyindepth.org and www.cipa.org/files/public/CIPA_HF_White_Paper.pdf
Kern Citizens for Sustainable Government Presents
An Exclusive Evening With
Frank Luntz
On Thursday, May 9, 2013 6:30 PM, VIP Reception at 5:30 PM Contact Jenifer Pitcher for more information
Jenifer@KSFSG.org or 661-331-0484 www.KernCitizens.org