The fracking boom is over

November 28, 2014

Friday, November 28, 2014

Good afternoon:

I write today to advise everyone that the oil shale extraction business (i.e., fracking) is in deep trouble. The Saudis and OPEC have voted to maintain current production levels despite a glut. The price of Brent crude, which is the highest grade of oil, has dropped below $80 per barrel to $78.33 per barrel. OPEC’s decision to maintain production levels despite the glut assures that the price will continue dropping.

I mentioned the $80 per barrel price because fracking is expensive and the companies that frack cannot make a profit unless they can sell their oil for more than $80 per barrel. That is no longer possible.

Saudi Arabia and OPEC have started a price war to drive the frackers out of business by shutting down the oil shale market.

This means that the price of gas at the pump will continue to drop and it provides an opportunity for solar and wind to take hold.

Meanwhile, the outrage against Robert McCulloch’s blatant abuse of the grand jury continues to grow as prosecutors and defense counsel have joined to condemn the process. Even Nancy Grace jumped on the bandwagon.

I am pleased to see the pushback. For awhile seemed like I was the only one.

Hope y’all had a good Thanksgiving.


Santa Cruz County bans fracking

May 21, 2014

Wednesday, May 21, 2014

Good afternoon:

Good news for the drought ridden environment in California today.

The Monterey Shale is a vast geological formation that runs through most of central California and parts of the coast. The Government and the oil companies say it contains 2/3 of the nation’s supply of oil, or about 13.7 billion barrels of oil. They want it and they intend to get it by fracking, an extraction process that involves injecting a mixture of water, sand and rock-dissolving chemicals under high pressure into seams in a rock formation in order to force the oil and natural gas out of the formation where they can be collected and processed.

Because enormous quantities of clean water are required to produce relatively small quantities of oil and natural gas, fracking in a drought stricken area is insane.

It’s a terrible idea anyway because it poisons the ground water, destabilizes geological formations resulting in earthquakes, and it causes environmental damage. The oil and natural gas contribute to global warming and climate change.

U.S. officials announced today that the Monterrey Shale can only supply about 600 million barrels (4% of the projected amount) by fracking because most of the formation has been deformed and broken by geological activity. Therefore, the oil companies are not going to be competing for much of the scarce water in California and that is good news for farmers and consumers.

The second item of good news is the Board of Supervisors for Santa Cruz County voted 5-0 last night to ban the use of fracking. Santa Cruz County is the first county in California to ban fracking.

Butte, Mendocino, Monterey, Santa Barbara, San Benito and Orange counties are also considering their own fracking and oil bans.

The third item of good news is the Beverly Hills City Council vote unanimously to ban fracking on May 6th. Beverly Hills is the first city in California to ban fracking.

The City of Los Angeles also may ban fracking.

Still no donations to report. The total for the month is $45. Last donation was over a week ago.


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