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Will California lead the next Oil Boom

March 29, 2013

Will California lead the next Oil Boom

Like most states in the United States, California is experiencing financial troubles and the state’s consumers are struggling to put food on the table. However, unlike the other states, California has a vast untapped oil reserve that can help both the state and its citizens. With proper well drilling supplies and drilling fluids, California may be able to realize a significant influx of cash.

 
California’s democratic governor, Jerry Brown, and his administration aren’t sold on the idea of drilling for shale oil deposits because of environmental concerns. Not long ago the state of North Dakota faced a similar challenge that worked out well for the state, bringing in millions of dollars for the state’s coffers.
 
At issue is the 1,700 square-mile Monterey Shale which is located on California’s central coast adjacent to the San Joaquin Valley. The area holds about 60% of the country’s estimated shale oil reserves, and with high-tech well drilling supplies it could potentially help California get out of trouble. California remains one of the country’s top oil producers along with North Dakota, Alaska and Texas. In fact, it is the fourth-largest oil producer in the nation even though oil production has declined significantly since the mid-1980s.
 
One of the reasons the governor is hesitant about allowing drilling is because the state’s economy is showing signs of improvement. The state’s downward slide was caused by a set of regulations that effectively limited the ability of major corporations to produce oil in the region. Many of these corporations have threatened to leave the state entirely because of its multi-billion dollar budget deficits and high unemployment rate.
 
In an effort to help California get back on its feet, Governor Brown raised income taxes on the state’s highest earners which are the same group of people that are providing jobs. The state’s highest earners are also responsible for paying the most taxes.
 
Energy consultant Geoffrey Styles recently published a piece on the online forum ‘The Energy Collective’ outlining how, with the right well drilling supplies, the shale formation has the potential to add billions of dollars a year to the local economy and produce lots of good jobs.
 
Oil production in the region is still in the developmental stages and oil companies are working hard to overcome the areas complex structure. Only new technologically advanced well drilling supplies and drilling fluids can help engineers overcome the challenges, and possibly get the governor on board.

 

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