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Friday, May 23, 2014

EIA Reduces California Shale Oil Reserve Estimate

There's good news on fossil fuels. The government has reduced its estimate of how much oil is extractable from the Monterey Shale formation in California from its initial estimate of 15.4 billion barrels to 0.6. Now, there's a magnificent error. Wonder how much they're off on other estimates?

The LA Times reports:
The new estimate, expected to be released publicly next month, is a blow to the nation's oil future and to projections that an oil boom would bring as many as 2.8 million new jobs to California and boost tax revenue by $24.6 billion annually.

At least investors won't be losing asset value: there was never the amount of oil there that had been estimated. Consequently, when politicians wake up and pass a law banning extraction of fossil fuels, it won't be a big hit.