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How Many Jobs Is California Losing Since They Began Ignoring Their Natural Gas/Oil Shale Deposits?

image credit: California Natural Gas & Oil Shale
Benjamin Roussey's picture
Freelance Writer Arizona

Benjamin Roussey is from Sacramento, CA but now lives in Arizona. His bachelor’s degree is from CSUS (1999) where he was on a baseball pitching scholarship and he completed 4 years in the US...

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  • Jan 26, 2019 7:00 pm GMT

California has been an oil-rich state since 1865. But the stubborn refusal of the California state government to reap the benefits of their vast onshore oil reserves has never made economic sense.

California seems completely oblivious to the fact that the state’s aversion to tap into their natural oil wealth is making its people suffer (that’s why there is less of them!). Thanks to a green-energy agenda that shuns the oil extraction and refining prices (and billions of dollars and all those middle class jobs), California is letting an incredible opportunity go to waste.

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The higher-ups in the state need to realize that their unrealistic desire to show nothing but disdain for fossil fuels isn’t helping anyone, least of all average citizens. We don’t want to take public transportation which is a sexual harassment nightmare.

Public transportation is anti-American. One of the reasons America is the best country in the world is because of our mobility and freedom – the left wants to take that from us.

High Unemployment Rate – Courtesy of State Ignorance

There has never been a better time for California to exploit its natural gas and shale oil deposits than now. The state’s jobless rate is 3% more than the national average.

If the new drilling in the Monterey Formation were to start, it would begin in the San Joaquin Valley – which is infamous for its alarmingly high unemployment rate.

The state must realize that simply looking for oil and starting exploratory drilling right away creates jobs for the local economy.

According to Rock Zierman, head of the California Independent Petroleum Association, it takes 100 people to operate one drilling rig. As Baker Hughes (an oil-field service company) reports, there are currently 46 active rigs in California.

In the early 1980s, there were around 130 active drilling rigs in the state. If California were to return to that level and increase the number of active rigs, it would create more than 8,400 new jobs almost immediately. And we know how well the oil-field jobs pay.

According to the Bureau of Labor Statistics, the average salary of a drill operator in the Kern County oil fields in 2010 was $66,700. A derrick operator makes $46,580, and an oil-field maintenance worker makes about $36,000 on an average in the same county. This is not including the overtime, which can be pretty substantial in the oil and gas industry.

All it takes to be eligible to apply for these jobs is a high school education which is another thing that bothers liberals. Liberals believe everyone wants to go to college when this is not the case. A large percentage of people don’t like school and actually enjoy getting things done with their hands. Not everyone in society can be an office worker!

Potential Benefits for Everyone

Let’s talk about the benefits California’s government can reap with these oil reserves. First of all, oil drilling means handsome and consistent revenue for the government. All the property taxes, sales, and income paid by the oil producers can add up to a sizable amount.

Also, when state assesses a property, it takes into account the value of proved reserves and oil extraction. What does it mean? The more oil is discovered, the higher the valuation, and the higher the revenue from the tax.

Not to mention the considerable 16.67% royalty that California claims from the oil extracted from the state-owned property. In the early 2000s, the state earned a whopping $2.4 billion in royalties from its leases inside the 3-nautical-mile limit.

In addition to this, the state also takes 50% royalties on oil extracted from federal land in California, and 27% royalties from oil pumped in federal waters up to 6-nautical-miles shore side.

In 2011, Timothy Considine and Edward Manderson, energy economists at University of Wyoming, presented a study which predicted that state could make $33 billion in royalties and tax revenue over 20 years if it started developing the oil and gas reserves in the state and federal waters in the Santa Barbara Channel.

Does California want to sell natural gas to China or what?

The Ungolden State

If even now the state decides to wake up, California could become one of the most important oil states in the world – as it once was. Now it’s just a basket case ran by the poor and rich, the irresponsible and the elitists. California leads the nation in homelessness and bankrupt cities.

If California chooses not to sell oil/shale oil to Asian countries someone else will.

Where there is demand there will be a supply.

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Bob Meinetz's picture
Bob Meinetz on Jan 27, 2019

Benjamin, thanks for your suggestions on how to run our state! If only we could be more like Arizona.

Wil Burns's picture
Wil Burns on Jan 27, 2019

So, we should foster unfettered growth in greenhouse gas emissions by foregoing the use of mass transportation because of the threat of sexual harassment? I'm not sure what trains Benjamin has been riding in California, but I invite him to the Bay Area to take a ride on BART for a reality check :)

Benjamin Roussey's picture
Benjamin Roussey on Jan 28, 2019

unfettered growth in greenhouse gas emissions - clean coal is unfettered?

Benjamin Roussey's picture
Benjamin Roussey on Jan 28, 2019

Will - go plant some trees Will - what's wrong with that?

Benjamin Roussey's picture
Benjamin Roussey on Jan 28, 2019

BART = are you serious? I would not ride in that crime infested train if you paid me. I would not go in there without a handgun. 

Benjamin Roussey's picture
Benjamin Roussey on Jan 28, 2019

Don’t ride BART in the Bay Area, they allow gangsters to rob you and do not report it to the public. This happened about a year ago. That is amazing you mentioned BART. I am from Sacramento and public transportation is an excellent way to obtain a virus and/or get accosted. Public transportation is a fantastic for a woman in LA to get sexually harrassed. Public transportation is for 3rd world countries but California is pretty much a 3rd world state so I guess it fits. 

I would never ride BART and according to 60 Minutes - the New York subway system is still using technology from the 1930s. This segment was on about 3 months ago. New York has an atrocious subway system that is a danger to everyone on there and this does not even count the violence on there as portrayed in Jody Foster movies (Hollywood which is ran by liberals so denying this violence is unwise), the spread of germs, and the rampant sexual harassment that occurs on subways. 

Cheap and affordable energy is the way to go and California and New York continue to destroy themselves with ridiculous policies. 

Benjamin Roussey's picture
Benjamin Roussey on Jan 28, 2019

On top of that, I live in reality and I stay far away from the horrendous quality of life the Bay Area represents. 

Benjamin Roussey's picture
Benjamin Roussey on Jan 28, 2019

I am glad the Raiders left - 20 years too late though but good for them. The A's need to leave to. California continues to make things worse for themselves while leading the country in homelessness and bankrupt cities. 

Ignoring oil shale is just plain moronic. 

Benjamin Roussey's picture
Benjamin Roussey on Jan 28, 2019

California has not been on par with Arizona in 20 years or more. Arizona is a much better place to be and California is falling into chaos. Here are just some of the reasons:

CALIFORNIA IS DESTROYING ITSELF BECAUSE IT IS RAN BY DEMOCRATS…1. One survey of business executives has ranked California as the worst state in America to do business for 8 years in a row.2. In 2011, the state of California ranked 50th out of all 50 states in new business creation.3. According to one recent study, California is the worst-governed state in the entire country in 2011.4. Thanks to Proposition 30, California now boasts the highest state income tax rate in the nation.5. Even though California just raised taxes dramatically on the wealthy, state revenues are falling like a rock.  State revenue for November 2012 was 10.8 percent below projections. Businesses are leaving!!!!!!!!!!!6. California has the highest sales tax rate in the United States.7. California has the 8th highest corporate income tax rate in the country.

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