The U.S. shale oil boom has hit Texas and North Dakota – and is now looking to take over the Golden State of California.
California's Monterey Shale formation covers 1,750 square miles from southern to central California and is believed to contain more shale oil than North Dakota's Bakken and Texas's Eagle Ford combined.
The potential of the Monterey Shale formation is enormous. According to IHS Cambridge Energy Research Associates, Monterey may hold about 400 billion barrels of oil – roughly half the amount of conventional oil that Saudi Arabia has.
The energy research director at IHS, Stephen Trammel, told CNNMoney, "Four-hundred-billion barrels, that doesn't escape anyone in this [oil] business."
Even if that is an overly optimistic estimate, there is enough recoverable oil there to make it worthwhile.