NEWS: Hot Intel on Monterey Shale – Video, Media, Executive Summary of BizFed Forum

Posted June 5th, 2015

The BizFed Institute convened more than 100 top business leaders at Woodbury University in Burbank for a frank and spirited discussion of the opportunities and challenges associated with accessing the massive oil and gas deposits contained in the Monterey Shale formation, located primarily in California’s Central Valley.

Participants heard directly from leading economic, regulatory, environmental, and industry experts.  As a service to business and community leaders, policy makers, and other interested stakeholders, we have assembled this electronic document as a one-stop source of critical intelligence resulting from those proceedings.  By bringing together diverse – and even conflicting – voices, our goal is to move beyond rhetoric and contribute to informed decision making for California’s future.

Key Points from Expert Speakers and Panelists

  • While hydraulic fracturing has been happening in California for decades, the Brown Administration is working to ensure new regulations will continue to protect the environment while enabling access to this California formation that constitutes two-thirds of all shale reserves in the United States. – Mark Nechodom, Director, California Department of Conservation
  • Allowing access to the Monterey Shale reserves would create millions of new jobs. – Catherine Reheis-Boyd, President, Western States Petroleum Association
  • Before addressing the details of hydraulic fracturing, or fracking, California must first decide whether to extract its own oil and gas resources or continue to import them from other countries.  It was noted that over 60 percent of California’s transportation fuel energy comes from outside of the state and the country. – Susan Kennedy, Alston & Bird, LLP
  • Rather than initially seeking a ban or moratorium on hydraulic fracturing, the Environmental Working Group is first trying to ensure the state regulates the practice in a way that promotes transparency and accountability and protects public health and safety. – Bill Allayaud, California Director of Governmental Affairs, Environmental Working Group
  • The legislative mandate of the Department of Gas and Geothermal Resources is to ensure public and environmental safety while also enabling access to California’s oil, gas, and geothermal sources. – Tim Kustic, California Division of Oil, Gas, and Geothermal Resources
  • The industry has a long history and strong safety record of hydraulic fracturing in California, including voluntary efforts to publicize the chemicals used in the process. – Catherine Reheis-Boyd, President, Western States Petroleum Association
  • After 60 years of hydraulic fracturing in California, state regulators are not aware of any incidentsof groundwater pollution or any other ill effects. – Tim Kustic, California Division of Oil, Gas, and Geothermal Resources
  • Environmentalists are not responding to reported problems from hydraulic fracturing in California.  Rather, they are seeking to ensure we get on top of the process to avoid any chemical pollution or water supply issueswith a possible increased use of hydraulic fracturing or other forms of well stimulation, such as acidizing. – Bill Allayaud, California Director of Governmental Affairs, Environmental Working Group
  • State regulators have not done enough over the years to identify where fracking is occurring and what chemicals are used in the process.  Without knowing what chemicals to look for, how can the state can really say that there have been no cases of environmental contamination? – Bill Allayaud, California Director of Governmental Affairs, Environmental Working Group
  • Nearly all oil and gas produced in California is used in California, and the current demand far outpaces the in-state supply. – Catherine Reheis-Boyd, President, Western States Petroleum Association
  • Hydraulic fracturing is merely one method of accessing shale reserves, as is horizontal drilling. The combination of the two technologies makes accessing the Monterey Shale more viable. – Catherine Reheis-Boyd, President, Western States Petroleum Association
USC/TCI Report Highlights Economic Potential of Monterey Shale

The Monterey Shale & California's Economic Future

According to the report, Powering California: The Monterey Shale & California’s Economic Future, cosponsored by the USC Viterbi School of Engineering and the Price School of Public Policy with The Communications Institute, the economic potential of the Monterey Shale includes:

• $24.6 billion in new state revenue
• 2.8 million new jobs
• $222.3 billion in new personal income
• 14.3% increase in state GDP

Click here  to download a full copy of the report.

Virtual Forum: Experience the Entire Event Online Here

You can watch the BizFed Institute’s Monterey Shale Business Forum in its entirety online via YouTube. Simply click any of the following links for the segment you wish to view:

1.     Opening Remarks and Introductions by Tracy Rafter, BizFed CEO

2.     Welcoming Remarks by Dr. Luis Calingo, President, Woodbury University

3.     Presentation: Brown Administration’s Regulatory Proposal, by Mark Nechodom, Director, California Department of Conservation

4.     Audience Q&A with Mark Nechodom, Director, California Department of Conservation

5.     Presentation: Understanding the Economic Impact of Monterey Shale, by Kevin Hopkins, Director of Research, The Communications Institute

6.     Audience Q&A with Kevin Hopkins, Director of Research, The Communications Institute

7.     Expert Panel Discussion

o    Moderator: Susan Kennedy, Alston & Bird, LLP

o    Catherine Reheis-Boyd, President, Western States Petroleum Association

o    Tim Kustic, California Division of Oil, Gas, and Geothermal Resources

o    Bill Allayaud, California Director of Governmental Affairs, Environmental Working Group

8.     Audience Q&A with Expert Panel

9.     Closing Remarks by Don St. Clair, Woodbury University, BizFed Chair-Elect

The Experts: Diverse Points of View Illuminate the Issue

The following individuals with diverse backgrounds and points of view came together to drive the discussion and share their expertise.

https://i2.createsend1.com/ei/r/BB/40C/901/csimport/kennedy.140802.jpgSusan Kennedy, Senior Policy Advisor, Alston & Bird, LLP

The Los Angeles Times called Kennedy “the most enduring force in state government of the last decade.” She has been recognized by Democrats and Republicans, as well as business and labor unions, as a key factor in “getting it done” in Sacramento.  Kennedy has built a formidable reputation over two decades at the highest levels of state and federal government, most recently as chief of staff to Republican Governor Arnold Schwarzenegger, as deputy chief of staff and cabinet secretary to Democratic Governor Gray Davis, and as communications director for California’s senior U.S. Senator, Dianne Feinstein. Kennedy also served for three years on California’s Public Utilities Commission, where she led groundbreaking efforts to streamline government regulation and promote investment in California businesses.

https://i3.createsend1.com/ei/r/BB/40C/901/csimport/bill.144220.jpgBill Allayaud, California Director of Governmental Affairs, Environmental Working Group

The Environmental Working Group is the nation’s leading environmental health research and advocacy organization.  Their mission is to serve as a watchdog to see that Americans get straight facts, unfiltered and unspun, so they can make healthier choices and enjoy a cleaner environment.  As their California Director of Governmental Affairs, Allayaud brings to his work a career of environmental protection that includes: 20 years with the California Coastal Commission as a planner, permit analyst, and legislative liaison; service as an urban planner with two cities; service as the state director of Sierra Club California.  He has a B.A. from U.C. Santa Cruz in Environmental Studies and Politics and a Master’s from Cornell University in Regional Planning.

https://i4.createsend1.com/ei/r/BB/40C/901/csimport/cathy.140921.jpgCatherine Reheis-Boyd, President, Western States Petroleum Association

As President of the Western States Petroleum Association since January 1, 2010, Reheis-Boyd oversees the trade organization’s operations and advocacy in six Western states – California, Arizona, Nevada, Washington, Oregon and Hawaii.  She has been affiliated with WSPA since 1990 and previously was the Association’s Executive Vice President.  Reheis-Boyd manages a broad range of Association activities, including legislative and regulatory issues associated with transportation fuels policy, air and water quality, climate change, renewable fuels and alternative energy issues, crude oil and natural gas production and many other issues in WSPA’s six states, and beyond those borders into Canada and abroad.

https://i5.createsend1.com/ei/r/BB/40C/901/csimport/nechodom.140953.jpgMark Nechodom, Director, California Department of Conservation

Nechodom has dedicated his professional life to integrating conservation, regulation and development on the land, on the farm, and in the forest to inspire sustainable production and practices while maintaining a sensible balance between economic opportunities, environmental health and human well-being. Prior to his appointment as DOC Director, he was a Senior Policy Advisor to the Secretary of the US Department of Agriculture (USDA), which he represented on the team that negotiated California’s greenhouse gas reporting protocol for forestry, and he provided scientific and technical support to the California Air Resources Board and the Board of Forestry in the development of the AB 32 state climate strategy.

https://i6.createsend1.com/ei/r/BB/40C/901/csimport/hopkins.144252.jpgKevin Hopkins, Director of Research, The Communications Institute

Hopkins was coauthor of Powering California: The Monterey Shale & California’s Economic Future, an in-depth research study on California’s energy future cosponsored by the USC Viterbi School of Engineering and the Price School of Public Policy with The Communications Institute.  He previously served as Director of the White House Office of Policy Information and Research Counsel for the White House Office of Science and Technology Policy, and was a Senior Fellow at the Hudson Institute, a public policy research center, where he directed numerous large-scale economic research studies for agencies and departments of the U.S. government.  He has also been a Senior Contributing Editor at Bloomberg Business Week.

https://i7.createsend1.com/ei/r/BB/40C/901/csimport/kustic.141052.jpgTim Kustic, State Oil and Gas Supervisor, Division of Oil, Gas, and Geothermal Resources

Working for the California Department of Conservation for nearly 30 years, Kustic has a keen understanding of the complex challenges faced by the oil, gas, and geothermal industries as well as by the Division, which is mandated to encourage the wise development of California’s energy resources while protecting the environment. Most recently, Kustic served as the Division’s Technical Service Manager, but he has also served as a field engineer in the Bakersfield and Santa Maria district offices, as manager of the Sacramento district office, and as the Division’s Facilities Program Manager.  He began his career in the petroleum industry.

Additional Resources

·         Fracking Across the United States – Interactive Map of “Fraccindents” by Earthjustice

·         A Balanced Approached to Fracking and the Monterey Shale by Steve Bullock, Cerrell Associates, Inc.

·         Monterey Shale and the Future of California by Joel Fox, Fox & Hounds

·         Gov. Brown signs oil fracking regulation bill by Marc Lifsher, Los Angeles Times

·         Looking Forward on Hydraulic Fracturing In California by Catherine Reheis-Boyd, Western States Petroleum Association

·         California Regulators: See No Fracking, Speak No Fracking by the Environmental Working Group

Copyright © 2017 BizFedInstitute. Website designed and built by