California Fracking May Boost State Economy 14%, USC Says

◼ Such drilling in the Monterey Shale Formation, in addition to increasing per-capita gross domestic product, may add as much as $24.6 billion in state and local tax revenue and as many as 2.8 million jobs by 2020, according to the report released yesterday by the Los Angeles-based university. - Bloomberg

“Based on the experience of other states, not only would state unemployment fall, but significant migration of properly skilled workers into California would occur,” according to the study. “More job gains can be captured by Californians with appropriate education and training.”

Unlocking the oil within the 1,750-square-mile (4,532- square-kilometer) swath of rock southeast of San Francisco could require hydraulic fracturing, which injects water and chemicals into the shale. Environmentalists say it may damage water supplies.

The Monterey Shale may hold 15.4 billion barrels of oil, two-thirds of the nation’s shale-oil reserves, according to the U.S. Energy Information Administration.

California Governor Jerry Brown, a 74-year-old Democrat, said yesterday that he would defer to state regulators to develop a fracking policy.

“Between now and development lies a lot of questions that need to be answered, and I feel confident that the people are in place in my administration to handle the issues as they come up,” Brown said at a news briefing on renewable energy.