Interesting TV news item this morning. An industry spokesman stated that California has vast stores of oil and gas still in its established petroleum deposits. The key to exploiting these is modern technology, i.e. fracking. As I stated before, fracking is not new, having been used for over 60 years in over one million operations. However, the way fracking is used now is somewhat different thus opening many previously uneconomic deposits, e.g. the remaining ones in California.
The speaker reminded us that California was previously the second largest producer of oil among the various states and that its brillant economic growth in the 20th Century was financed by this industry. He predicted that a renewed petroleum industy in California would provide over one trillion dollars in economic benefits and more than sufficient revenues to cover the state’s financial deficits.
Of course he recognizes the state’s position as a leader in environmental concern and efforts to improve the environment. He knows that Californians will probably resist any new oil and gas development in the state and certaiinly fracking. But he believes that the enormous financial benefits to be gained and the proven track record of the new technology will overcome the environmental concerns.
Meanwhile one of Hollywood’s latest hit films is about one firm’s attempt to bring this modern technology to a quiet farming community in the Midwest. The battle between those seeking economic recovery and those defending Mother Nature in California promises to be a real humdinger.