WESTERN STATES PETROLEUM ASSOCIATION
Monterey Shale & Hydraulic Fracturing
Myths and Facts
Catherine Reheis-Boyd
Western States Petroleum Association
August 16, 2013
WESTERN STATES PETROLEUM ASSOCIATION
Hydraulic Fracturing Safety: Myths and Facts
Myth: Hydraulic fracturing is unsafe and has been linked to
groundwater contamination
Fact: “In no case have we made a definitive
determination that the fracking process has caused
chemicals to enter groundwater.”
U.S. Environmental Protection Agency Administrator Lisa Jackson, April 30, 2012
“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.”
Former Secretary of the Interior Ken Salazar, February 15, 2012
“The Water Boards generally consider hydraulic
fracturing a low threat to groundwater . . .”
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State Water Resources Control Board, Executive Director, Thomas Howard,
February 8, 2013.
WESTERN STATES PETROLEUM ASSOCIATION
Hydraulic Fracturing Safety: Myths and Facts
Myth: Hydraulic fracturing is or has
been unregulated in California
Fact: Hydraulic fracturing in CA
has been used for more than 60
years, has never been linked to any
environmental harm in CA
Oil and gas drilling and production
activities are closely regulated in
CA. The primary regulations that
protect groundwater are the state's
well construction and testing
standards, which are among the
strictest in the U.S.
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Source: FracFocus, Courtesy of Texas Oil and Gas Association
WESTERN STATES PETROLEUM ASSOCIATION
Hydraulic Fracturing Safety: Myths and Facts
Myth: There is a lack of science-based
information about hydraulic fracturing in
California
Fact: In October, 2012, an exhaustive yearlong study at Inglewood Oil Field in Los
Angeles looked at 14 environmental issues,
including public health, groundwater, air
quality, seismic, noise, vibration
All fractures separated from fresh water by
at least 7,700 feet (1.5 miles) or more
No impacts to any of the 14 areas studies
October 10, 2012
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WESTERN STATES PETROLEUM ASSOCIATION
Hydraulic Fracturing Safety: Myths and Facts
Myth: Hydraulic fracturing uses
millions of gallons of water
Fact: In 2012, the average volume
of water used during hydraulic
fracturing operations of a production
well in CA was 116,000 gallons
The total volume of water used in the
528 wells hydraulically fractured in
2012 in CA was 202 acre feet
The average golf course uses 312,000 gallons every day, corresponding
to 350 acre feet per year. Farming in CA in 2012 used approximately
34 million acre feet of water annually
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Source: FracFocus; California Department of Water Resources
WESTERN STATES PETROLEUM ASSOCIATION
Hydraulic Fracturing: How Much, Where
Myth: We don’t know how much or where
hydraulic fracturing is occurring
Fact: California closely regulates oil
and gas drilling and production activities,
and maintains a database with the
locations of all oil and gas wells.
 2,705 well permits issued in 2012
 48,970 wells currently producing
oil and/or gas in CA
 A total of 568 wells were fractured in 2012 (FracFocus), and 97
percent of fracturing operations were in Kern County
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Source: WSPA survey of FracFocus website 2012 data
WESTERN STATES PETROLEUM ASSOCIATION
Shale Oil Resources in the United States
Monterey
15.4 Billion
Barrels
63% of US
Shale Oil
Avalon/Bone
Springs
2 Billion Barrels
8% of US Shale
Oil
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Bakken
4 Billion Barrels
17% of US Shale
Oil
Eagle Ford
3 Billion Barrels
12% of US Shale Oil
WESTERN STATES PETROLEUM ASSOCIATION
An Extraordinary Opportunity
 “The fossil fuel deposits in California are incredible.”
 “The potential is extraordinary,
but between now and their
development lies a lot of
questions that need to be
answered.”
 “I support our Division of Oil
and Gas. They are excellent
people and I look for them to
navigate the issues as we go
forward.”
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WESTERN STATES PETROLEUM ASSOCIATION
A San Joaquin Valley California Opportunity
 According to the EIA, 15.4 billion
barrels of oil trapped in the pores
of shale rocks in the San Joaquin
Valley
 Advanced-extraction oil
technology: potential in CA
 1,750 square mile area
represents 2/3rds of U.S. shale
resources
 Hydraulic fracturing used
extensively in other states and in
California for 60 years without
harm to the environment
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WESTERN STATES PETROLEUM ASSOCIATION
The Monterey Shale & California’s Economic Future
 512,000 Jobs by 2015 and
2.8 million by 2020
 2.6% to 14.3% State GDP
Increase
 $40.6 billion to $222.3 billion
personal income increase
 $4.5 - $24.6 billion state and
local tax revenues increase
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WESTERN STATES PETROLEUM ASSOCIATION
Ongoing Developments – Regulations
California Division of Oil, Gas & Geothermal Resources (DOGGR)
proposed regulations
 Draft regulations require:
 Advance notice to DOGGR before a well is fractured
 Enhanced testing and
monitoring of fractured wells
 Safe storage and handling
requirements of fracturing fluids
 Disclosure of chemicals used on FracFocus website
 Provides protection of trade secrets
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WESTERN STATES PETROLEUM ASSOCIATION
WESTERN STATES PETROLEUM ASSOCIATION
Ongoing Developments - Legislation
SB 4 (Pavley) requires the state’s Natural
Resources Agency to conduct a study of
hydraulic fracturing and mandates regulation
of that practice. Sen. Pavley removed
moratorium language and indicated she
would work with the oil industry to develop
comprehensive bill to regulate hydraulic
fracturing activities.
Sen. Fran Pavley
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WESTERN STATES PETROLEUM ASSOCIATION
WSPA Supports Comprehensive, Balanced Regulation
 Legislature needs to take a measured and responsible approach to
hydraulic fracturing
 All parties have a responsibility to acknowledge that:
 There are legitimate issues related to hydraulic fracturing that
must be addressed by regulators and the Legislature
 Production of petroleum energy is a vital and necessary part of
the California economy
 A comprehensive regulatory package will sufficiently ensure that our
state’s environmental health and natural resources are protected
while safely using hydraulic fracturing technologies for energy
production in California
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WESTERN STATES PETROLEUM ASSOCIATION
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