Wednesday, October 30, 2013

For Archival Purposes: Analyst Thinks California Is Back In The Oil / Fracking Business; If So, It Won't Be Any Time Soon

Rigzone posts an analysis by John Kemp, a market analyst. He thinks now that California has approved fracking with stricter regulation, the state is back in the oil / fracking business.

The first few paragraphs of this five-page internet article:
LONDON, Oct 30 (Reuters) - California's lawmakers have ensured the state will remain a major oil and gas producer by approving new legislation allowing hydraulic fracturing and acid treatments to rejuvenate its ageing wells in exchange for strict controls and tougher enforcement. 
Senate Bill No 4 (SB 4), which Governor Jerry Brown signed into law on Sept. 20, directs the state Department of Conservation and other agencies to adopt new rules and regulations covering well construction, fracturing and other well stimulation treatments by the start of 2015
The chemicals used will have to be disclosed to regulators and published, subject to special treatment for trade secrets. Penalties for violating certain regulations on oil and gas operations were increased from $25,000 per violation to between $10,000 and $25,000 per violation per day. 
In another concession to environmental and community groups worried about the safety of fracturing and acidizing, the law directs the state's Natural Resources Agency, which focuses on environmental protection rather than oil and gas production, to conduct an independent scientific study into the hazards and risks.
I'm sure the anti-oil lobby can delay the publishing of these "new rules and regulations" well past the "start of 2015."

Posted for archival purposes only.

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