There was some recent press about the number of oil spills in Colorado. They have about 2 spills a day. California has a much lower oil production rate than Colorado, but there still are a lot of spills here, according to the California Emergency Management Agency. The Final Environmental Impact Report says that there is a 34% likelihood of an oil spill during the proposed Hermosa Beach project’s life.
California HazMat Spills (Click image for larger view)
The Hermosa Beach Oil Drilling Project would be illegal in Colorado, since they require a minimum distance of 500 feet between a oil well and homes. Click here for more information the location of this project. Click here for E&B spill statistics.
Attention homeowners and renters, IF the city decides to add a supplemental property tax to pay off E&B when the voters no on oil drilling in Hermosa Beach, it will be a very small amount of money, according to the Final Cost Benefit Analysis @ $150 per year per $1M of assessed property value. It also states that Hermosa Beach can handle the pay off without raising property taxes.
The city manager has also said that the city can pay off E&B without raising property taxes as well.
Supplemental Property Tax “What If” Scenario from Final Cost Benefit Analysis
— Busting the “rents and taxes will sky rocket” myth…
Independent, 3rd party sources contradict E&B’s advertising and website claims. When analyzing the Environmental Impact Report (EIR), the Health Impact Assessment (HIA), and Cost Benefit Analysis (CBA), the devil is in the details. And the details say…”E&B’s pants on are fire”. They are overstating revenue and downplaying risk. Here’s the reality.
E&B is Misleading Us to get Our VOTE. Click on image for larger view.
Comparing the estimated oil produced from the Hermosa Beach Oil Drilling and Production Project compared to U.S. Oil Production over the length of the 35 year project. (Click Image for larger view)
There have been a few people saying that the country needs this project because we are in such dire need of oil. Let’s do the math…The Hermosa Beach Oil Drilling Project will represent approximately 0.011% of the total United States oil production over the 34 years of the project. Another way to look at it… More oil was produced in the U.S in 2 days in 2013, than will be produced in the life of this project.
It seems that the U.S. will not even notice if we leave this oil nice and safe, in the ground, where it is now.
…And now the U.S. is now exporting oil.
And… It’s the oil production volume that drives the royalties paid.
These numbers use 2013 actual oil production numbers from the U.S. Energy Information Administration, which is a low number, since oil production is currently increasing in the U.S.
In 2013 the U.S. produced 7.441M barrels of crude oil per day. This number was compared to the “low” oil production levels from the final cost benefit analysis (CBA) of 10.9M total barrels of oil over the life of the 35 year project.
NOTE: The “low” oil production levels were used in the CBA since it has a likelihood of attainment of 90%, which is the most realistic estimate presented in the CBA. Some argue that this “low” estimate is still too high. The “expected” numbers are at 50% likelihood of attainment, and therefore, was not used.