Category Archives: Canada

The energy revolution [cont.]


“You and me we sweat and slave, but that old man energy just keeps rolling along”. Good news to sing about!

In one of that witches ’ brew that come out of the Congress and are called “compromise”, a bill seems to be working its way through the toils of the legislative process to end the four-decades-old ban on oil exports. In exchange, the Republicans and oil companies have agreed to put more money into the so-called green energy subsidies.

It’s not the best of solutions. But the possibility of shoving the growing gas and oil surpluses in the U.S. – a product of the Shale Revolution – on the world market argues well for the American economy. We hope it makes it.

The ban on exports – proving again when a law gets into place it is hard to dislodge even in the face of revolutionary changing conditions – dates back to the 70s. That’s when our growing imports were hit by the price-fixing Persian Gulf and others’ monopoly, the Organization of Petroleum Exporting Countries [OPEC]. But OPEC, despite recent huffing and puffing, has been dying on the vine, or rather swamped by the world energy glut.

The leading OPEC producers are now pumping violently, even though it is tearing the world energy price to shreds, in order to garner more market share. They obviously see the possibility of the Americans reentering the market, particularly in Western Europe. The Saudis, particularly, see their once catbird seat as the arbiter of world oil pricing dissolving in the American technology which has opened up enormous new possibilities in gas and oil in shale deposits worldwide once beyond the bit of the drills. [Don’t look now but that may also affect how the rest of the world views the Saudis’ sponsorship of reactionary Islamic religio-political movements.]

The U.S. production boom in Texas and the Dakotas and Montana, is cranking out more than one million barrels of crude a day. Current law does permit the export of half a million barrels a day from Alaska to Asian customers and exchanges with Canada. And as the largest consumer in the world, the U.S. even during an economic downturn is burning 19 million barrels a day according to the U.S. Energy Information Administration.

So far, at least, although the Saudis have oil that can be produced at a few cents a barrel, their gushers have not totally crippled the American shale producers. Good old American technological innovation continues to make leaps in shale productivity – and moderate world demand in a period of economic “malaise” – has so far saved a good part of the new industry.

Still, the glut causing low prices is keeping a lot of rigs from pumping full blast. Luckily for all concerned, the new crudes are mostly light, not the kind of heavy oil the huge Texas refineries were geared to handle from older U.S. fields and Caribbean imports but are welcomed by foreign refineries. The lifting of the export ban would produce an immediate spurt in jobs for the oil transportation systems and suppliers of their equipment needed for the new export capacity. The Aspen Institute says that means adding 630,000 new jobs and an additional $165 billion annually to the Gross Domestic Product for the next six years.

Hopefully, this deal is not going to get sidetracked as the Congress winds down for the holidays.

Not everyone is happy about the new developments, of course. Some investors in oil stocks are holding their heads. But we have always argued that cheap energy is the soul of American economic progress and development and that hasn’t changed, even if some of the players have. [Electricity producers are turning from coal to gas, or combinations of natural gas and coal gas – switches that probably are still in their infancy and too early to judge. But the gains in trimming emissions are already obvious.]

So bring on the oil – and gas [liquidifed natural gas] – exports!

sws-12-16-15

 

 

 

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Energy: let’s go!


The markets – including old-fashioned American technological know-how – has almost turned the Obama Administration’s original energy policies 180 degrees.
But there is still a lot to be done. And it will require the cooperation of a Congress, too long besotted with narrow-minded subsidies for powerful lobbies.
The Obama Administration which started out six years ago calling for outrageous gasoline prices to force the country into so-called new, green energies, has lost the game. That’s been acknowledged by several recent quiet White House decisions along the way toward an enlightened energy strategy, the basis, of course, of all economic and most of our social activity.
With the growing technological breakthrough in shale gas and oil, the U.S. again has the potential to be a net exporter. And letting the markets – rather than government fiat – decide which and where would be a major step in energy rationalization is obviously the way to go. Along the way, we would joint Gov. Rick Perry and others who have called for dismantling the Energy Department, which, where effective, duplicates other federal government activities.
New and hugely important developments are popping up everywhere:
The White House has just okayed a swap of lighter American crudes for Mexican heavier petroleum for which we have refinery capacity in the southwest [designed originally and still working on similar Venezuelan imports]. That’s not the lifting of all export controls which ought to be a high priority, their heritage going back to the 1970s embargos and our dependence on foreign oil.
The Sabine Pass, Texas, liquified natural gas facility, originally designed for imports, has signed a deal on 2011 permits to ship LNG to France. With U.S. domestic gas prices a fraction of LGP delivered prices in East Asia, there are a dozen applications for the expensive export facilities to cash in on the global market, now Europe too reinforced with the US-EU sanctions against Vladimir Putin’s machinatioins in Ukraine menacing his high-cost oil and gas exports..
Dutch Shell, which has already spent $7 billion looking for oil and gas off the Arctic coasts of Alaska, has now received permission for offshore deep drilling for gas. Later this month Alaska Governor Bill Walker argue in a personal session with Obama l that his state’s LNG and natural gas development is a main strategy to cut carbon emissions and lower energy costs. With proposals for his state to take 51% of some new oil and gas developments, he has a sheaf of proposals for a huge boost for Alaska’s revenues, impacted by the general economic downturn.
Looking back, luckily there were enough private shale holdings to develop the technologies which have brought about the whole energy revolution. And kudos again go to the industry for meeting – at least so far – Saudi efforts to undercut American shale production by going full blast in their own production and export to keep world prices low.
Yet several factors have so far defeated the Saudis in their effort to sabotage American selfsufficiency: the increasing skills of American technology, the cutbacks in China’s imports because of a rapidly declining economy and a moderation in the anticipated Indian takeoff, and the cutback in American imports because of the shale bonanza.
The Obama Administration has even timidly announced what could be one of the most important reforms in the domestic economy: removing the forced use of grain alcohols [ethanol] in gasoline sold gasoline sold at domestic pumps. Although ethanol has been a hallowed icon for some enviromentalists, its actual application has been a $10 billion a year bill for the taxpayer. Furthermore, the process distorts the food chain: making ethanol of corn requires huge tracts of land, fertilizers, pesticides, tractor and truck fuel, and natural gas for processing. That’s even a pretty strong argument against forcing the motorists to use it for the dedicated enviromentalist.
There is a worldwide economic and moral issue as well. Turning corn into ethanol raises feed prices and thereby the cost of beef, pork, chicken, eggs, fish and international food aid. It raises world food prices, a critical problem for many in the backward parts of the world who are food importers. So in addition to other concerns, there is a humanitarian aspect as well.
Ethanol is a bobanza of course, for the auto repairman. It wreaks havoc on the automobile itself, especially older cars. It can cause gaskets and other rubber parts to fail, causing fuel leaks and even engine failure or fires. With every prospect of American fossil fuel surpluses for the foreseeable future it is time to step back to the market and end required ethanol additives for gasoline and diesel fuel.
sws-09-18-15

Canadian cousins: stick with Harper!


You wouldn’t know it from the American media, of course, but Canada too is headed into a national election. And they also just had their first debate.
Among the 35 million Canadians, of course, many welcome the fact we don’t take more interest in their affairs. For when we do, it often is a disaster. Note the continuing schmoozle over the Keystone XL Pipeline that even snuck into our national presidential debate. It has become symbolic as well as a practical concern for us down here as well as for Canadian oil and gas. For Americans, it represents an aggressive energy policy and jobs versus supposed environmental concerns. For the Canadians, it is another example of how common North American interests are hostage to domestic political concerns, especially in the U.S., critical to Canada’s expanding exports markets especially at a time of falling oil prices.
There was some irony, too, in the fact that some of the basic points in their debate were not too far from our own. Prime Minister Stephen Harper was under attack as the Canadian economy sags, intertwined with the slow American recovery. The North American Free Trade Agreement [NAFTA] among the United States, Canada, and Mexico has spurred the largest trading relationship in the world, running well over $2 billion daily. With one in every seven jobs in Canada depending on U.S. trade, no wonder the ups and downs of the U.S. economy have almost immediate impact north of the border.
Critics say Harper, running for another four-year term subject to parliamentary support, has pushed up the national debt by $150 billion and that despite his tax cuts private sector investment founders. Harper’s response is that they want to raise taxes and create bigger deficits which would only make things worse. Sound familiar?
Harper hints he won’t seek another term after this one. Of course, in one of the world’s most complicated parliamentary systems, he could drop through an unforeseen parliamentary trap door at almost any time. Furthermore, Canada has its own peculiar longer term national issues. And they were brought up in the complicated debate that tangles four different national parties – with strong regional interests. Harper’s three opponents, young [44] Liberal Party Leader Justin Trudeau, New Democratic Party Leader Thomas Mulcair and Green party Leader Elizabeth May, are all left of his own steadfast prairie conservatism. .
Canadian politics, exemplified in its second largest province, French-speaking Québec, are as often as not even more conflicted by provincial and federal allegiances than our own contradictions between states and federal voting patterns. The socialist Canadian Democratic Party, for example, is now caviling to French-speaking separatists. But despite the end of the Liberal Party’s virtually monopoly in Québec, it still hangs on to a sizeable if fissured federal delegation from the province. The Canadian West has a long tradition of maverick populist movements which, in some ways, Harper exemplifies.
Perhaps the biggest question in this fall’s election [Oct. 19] is how much the young [44] Liberal Party leader Justin Trudeau can trade on his father’s spectacular popularity as an earlier prime minister. If his father, Pierre Elliot Trudeau, recalled for Americans a Canadian John F. Kennedy in his two prime ministries totaling 15 years, young Trudeau sometimes looks and acts like a Canadian Barack Obama.
We have watched, admiringly, as Harper has taken Canada further out of the U.S shadow, particularly given Obama’s faltering foreign policy. He has been forthright about pushing the Keystone pipeline project, while at the same time threatening to take Canada’s oil directly to Chinese and other growing Asian markets with an alternative pipeline to the Pacific. His careful balance of Communist China as a major trading partner is a model for Washington.
Caught up in the mob scene in our own presidential derby, we will be watching the Canadian choice out of the corner of our eye. It’s one of the most important, if unrecognized, American interests. But we are quietly cheering for Harper — if that won’t hurt his chances furthering resentment against the colossus to the south which in the past has played its own role in Canadian politics.
sws-08-7-15

No aid for a Cuban dictatorship


After 50 years, later this month an American flag will again fly over the old U.S. Embassy in Havana and the Cubans will open their diplomatic representation in Washington.
Pres. Obama has justified the move because it was time to change a policy that has not worked. That, not to put a fine point on it, is not true. Over five decades Washington was able – sometimes with direct intervention as with the Contras in Nicaragua – to prevent the spread of the Castros’ Communism in Latin America. And it wasn’t for lack of trying by Fidel Castro with Soviet inspiration and help. The list of by Cuban Communist attempts to subvert other governments in the Hemisphere, sometimes with actual military infiltration, is too long to list here.
That, of course, poses the next question coming up quickly.
There are already demands that Washington lift the Cuban “embargo”, a misnomer for the refusal of the Castro government in the 1960s to compensate American investors for the seizure of their properties. Of course, Cuban propagandists – with their chorus of supporters on the American left and among some U.S. business interests. – argue that it was the American blocking of economic relations with Havana which brought on the Cuban disaster. And, they argue, there are all sorts of mutual economic opportunities for American business as well if the U.S. takes the next big leap forward and authorizes investment and trade – including economic aid.
The answer to that pitch, of course, is that the Obama Administration got nothing in return for resuming diplomatic relations. In fact, what has happened is that a dying regime is being given a helping hand in its final moment of crisis. Cuba, after all, has relations with 190 other countries. The Europeans and Canada have tried to invest and trade and have had near zero success. [One suspects, aside from those in Ottawa always ready to tweak Uncle Sam’s beard, it was Canada’s historic investment in one of Cuba’s few mutually held resources, nickel, that has kept that relationship alive.]
It’s hard to exaggerate how diffcult Cuba’s situation is as it comes back into the real world. A large portion of its traditional elite long since fled, and while interested and perhaps willing to cooperate, will not go back. Its former special quotas for sugar in the U.S. are an historic anomaly. Not only will its sugar industry have to be rebuilt almost from scratch, but Cuban cane sugar faces a completely changed world now competing with subsidized beet sugar, corn syrup and all the other sweeteners developed while Havana slept as well as favored sugar industries around the world..
No one would argue that we shouldn’t do what we can to help impoverished Cubans sitting on our doorstep. Leaving humanitarian generosity aside, it is in the interest of U.S. security to contribute to a more prosperous and stable Cuba. When the Castro regime finally collapses – as seems inevitable – a freed but impoverished more than 11 million will be swimming toward Miami.
There is a lot of hot air being spread about the economic prospects for American business in Raul Castro’s Cuba, some of it coming from the President himself. Not a little of it comes from American businesses which profit from export subsidies. But lifting the sanctions before Raul Castro makes the concessions necessary for economic and political progress on the Island would be, among other things, a waste of the taxpayers’ money.
sws-07-02-15

Immigration? Canada points the way


Immigration? Canada points the way
Psst! All that gaggle of Republican presidential aspirants looking for “solutions” to the thorny immigration issues:
Not for the first time, why not look to Canada? Our northern neighbor has had an immigration procedure as fouled up as ours, even if it does have more recent immigrants than any other country except Australia. But as of January, it turned to the practical task of sorting out that vast world out there that wants to come to North America. It is using a sieve for the qualified, rather than those standing longest in line. It has already brought in or tapped temporary residents who though unemployed were facing the end of their working visas. It will still use family reunification but it is setting out more detailed criteria.
But the new “Express Entry “takes a passive, paper-driven first-in-line system,: Immigration Minister Chris Alexander, told the Financial Times, “and replaces it with a proactive, recruitment-driven pool of talented people…”
It has also switched away from China, the Philippines and India and back to giving Ireland, Britain and Germany more preference, profiting, Ottawa hopes on a period when the U.S. seems less welcoming. [The Canadians rubbed salt in the wound in 2013 when they set up a billboard in Sillicon Valley “H-1B problems? Pivot to Canada”, anticipating their new program.] It’s true the U.S. already authorizes 85,000 high-skilled workers entry annually. But American industry sources say that is far short of demand and some high-skilled multinational companies are already speculating Canada’s new green card may attract industry as well as skilled workers..
The new Canadian system dumps first-come, first-served and substitutes a rolling criteria based on demands for skilled workers. It will match perspective immigrants much faster with labor demand using a digital data bank. The data will include complete personal and work records and score applicants. If all goes well, Ottawa expects to bring in 280,000 permanent residents this year with two-thirds of them “economic immigrants”.
Critics claim the proposed system isn’t all that transparent, at least as to how the final decision-making is going to be done. There are complaints, too, that it discriminates against low-skill immigrants and will abandon some of the much touted effort to achieve diversity. But even Premier Philippe Couillard, in always argumentative Quebec, which strives for francophone migrants as its own native population dwindles at a rapid rate, has announced that his province plans to welcome more immigrants through ”the economic classes”.
sws-06-20-15

Britain points the way with the BBC


Prime Minister David Cameron has thrown down the gauntlet to what is bound to be fulminations from the left: he has moved to take the oversight of his country’s prestigious government broadcasting out of its hands and put it in the care of a neutral moderator.
Cameron has the wind behind his sails, however. Not only has there been increasing criticism from its usual critics and internal inquiries which reported specific prejudice on certain issues [Israel and the Mideast are notorious], but the network has suffered even more tabloid-type scandals. Not the least was a prominent child program star being accused of active pedophilia.
But the substantial criticisms of the BBC are not that different than those some of us believe afflict our own National Public Radio. You only have to listen to the relatively new mid-afternoon “Here and Now”, a review of public events apparently copied out of the universally popular late afternoon commuter “All things considered” [again with perhaps some debt to Canadian Broadcasting Corporation]. It not only is dripping with bias but is a crude imitation of its forebear.
Down Under, Prime Minister Tony Abbott has just been handed a weapon by the Australian Broadcasting Company, which suffers from the same malaise as its Anglo-Saxon government sponsored sisters. The ABC went on the air with a program moderated by a notorious pro-jihadist activist to the dismay of even its loyal following.
The truth is that in radio and TV as in other aspects of life, “who pays the piper calls the tune.” Governnent subsidies for radio and broadcasting are bound to bring with them interference from the current administration, even in the Anglo-American democracies. And subsisdies to the media are as much interference with the press as any other violations of freedom of the press prohibited by the first amendment of The Constitution.
NPR and the Public Broadcasting System’s TV are, like the mainstream media quintessentially liberal, of course. In the past five years, its line has also become synonymous with such constant defensive reporting of the Obama Administration that amounts to pure and simple slanting of the news
The American government-supported networks claim their government subsidy is minimal; but why then the howl from it and its supporters when any attempt to defund if takes life? The truth is that with all the contributions of tax-free foundations, etc., “public” radio and TV receive as much as 40% of their revenue from government, national, regional and local, as well as “non-governmental organizations” That later, my dear, is taxpayer money! NPR, particularly, is a spendidly professional news product and ought to stand on its own, with its adoring public’s contributions.
Give the relatively fat salaries paid their executives, [“double dipping” in some cases when they appear on commercial radio and TV], their huge administrative costs, and their earnings from toys and other associated sales, the government-supported radio and TV have gotten fat and even more editorially warped.
It’s time to get them off the taxpayers’ back. Or at least take the first step by neutering them with an independent and effective monitoring board as Cameron is about to do in England.
sws-06-26-15

When is a Thug not a Thug


Thug, noun, pronunciation: /THɡizm/ [Early 19th century (sense 2): from Hindi, hag ‘swindler, thief’, based on Sanskrit sthagati ‘he covers or conceals’.
One of the footnotes to the postmortem on the rioting in Baltimore has been an argument over the use of the word “thug” to describe the mostly young rioters, sackers and arsonists.
The city’s African-American mayor, Stephanie Rawlings-Blake, used the term, though she later backed away from her earlier comments. In uncharacteristically strong language, Pres. Barack Hussein Obama used it too when he denounced the Baltimore violence.
Megan Garber, in an article in The Atlantic, writes that “thugs” “are [seen as] both victims and agents of injustice, they are both the products and producers of violence, and mayhem, and outrage”. Some of the media, muddling the argument even more, has trotted out arguments for excusing behavior which brought the city to near chaos. CNN has spread a clever piece of wordsmithery, “Rioting is the voice of the unheard”, when its interviewers court dissident and inflamatory reactions..
The fact is that young hoodlums [“a person who engages in crime and violence; a hooligan or gangster”] broke the peace of one of largest and once most prosperous American cities, burning and looting. Furthermore, their action did not elicit from the city’s leadership the kind of response for which a city’s police force is dedicated. It was only luck that there was not major loss of life.
That is why it is incumbent on the State’s Attorney for Baltimore City, Marilyn J. Mosby, now that she has quickly brought forward an indictment of the policemen involved in the death in custody of Freddie Gray, to go after these young miscreants. There is apparently yards of video taken during these violent acts from which the perpetrators can be identified.
Just as one mother, Tonya Graham, took the responsibility for her son when she caught him joining the mob, the Baltimore authorities now have a duty to bring the other delinquents to justice.
That won’t be easy.
There are already many voices arguing that they are victims, that they need help, that they have to be forgiven for their acts of violence against civilized society. Baltimore Councilman Carl Stokes has what he sees as their case. “It’s not the right word to call our children ‘thugs’. These are children who have been set aside, marginalized, who have not been engaged by us.”
All that may be true and must be considered if justice is to be served. But identifying these young people, naming their criminality, and bringing them before a court to have their actions explained is necessary if real peace is to be reestablished in Baltimore.
Without the rule of law, no civilized society can exist. Respect for the law has to begin in childhood. And without an attempt to bring these youngsters to justice – for their families’ sake if nothing else – the confidence that is going to be necessary if the destruction of Baltimore’s reputation [and livelihood] is to be restored will not be forthcoming..
Sws-05-03-15

Funding the Castros’ tyranny


The amateur ideologues of the Obama Administration have fallen into another snakepit with their tacit endorsement of the notorious Cuban dictatorship. That’s despite all the nonsense about a blossoming Cuban economy if Washington just relents.
In reality, Washington is buckling in its opposition to one of the world’s most hideous regimes. Now its death throes will be perpetuated for Cuba’s 12 million people with the help of such deep thinkers as Sen. Rand Paul who dreams despite all the evidence in China and Vietnam to the contrary that contagious capitalism will bring down a police state.
Even more shameful is the helping hand – which Pres. Barack Hussein Obama acknowledged – of Canada and the Vatican in this new Obama enterprise. For half a century Canadian nickel interests and the always anti-American wheat lobby have blackened Ottawa’s reputation with its support of the Castros. At the Vatican, whose help Obama also acknowledged, there are echoes of the Church’s tacit support of Franco and other cruel dictatorships, as well as Jorge Mario Bergoglio’s ambiguous relationship with Argentine totalitarians as Jesuit Father Provincial in his native country before mounting the papacy. [Nor is this gesture likely to help stave off the growing influence of Evangelical Christians on the old Roman Catholic monopoly of Christian believers throughout Latin America.]
Despite all the talk of the regime moderating , Raúl Castro holds more than 57,000 political prisoners. And his dungeons have sucked in more new victims in the past year than the five previous years. Conditions are as bad as in the worst days of the Soviet Union and the East Eruopean Communist Bloc, producing hunger strikes in a noble if feeble effort against solitary confinement, beatings, restricted family visits and denial of medical care. There is no redress except for American citizens like the naïve and very lucky Alan Philip Gross who had maximum U.S. support for his release on trumped up charges, but only after five years..
The fiction that Cuba has anything to sell or that investments there could pay off has been refuted by decades of failed efforts by the Europeans – especially Spain – to circumvent the now tattered American embargo. Little Cuba has no hope of repaying some $25 billion it already owes these ambitious “investors”. Prepare yourself for the coming suggestion that the International Monetary Fund and World Bank [with the U.S. carrying its quarter or more of support] to “amortize” these bills.
The destruction of a thriving if troubled Latin American society in the 1950s came with the help of the same cheering section of the current White House strategy [notably The New York Times]. When Cuba left the real world a half century ago, it ranked fifth in the Hemisphere in per capita income, third in life expectancy, second in ownership of cars and telephones with a 76% literary rate. [The fact that it was 11th in the world in the number of doctors per capita gives the lie to the Castros’ claims of creating a new medical miracle.] Cuba’s prosperity then was largely paid for by a guaranteed sugar import quota in the U.S., its principal industry and income producer, and tourism for a glamorous if corrupt nearby tourist capital in Habana..
Now Cuba comes back into the world not only with its sugar industry in ruins, but in a world with a half dozen “new” sweetener competitors [including highly subsidized U.S. domestic beets], no possibility of a guaranteed American market, and a world drowning in subsidized sugar programs. [This week the U.S. has hauled Mexico up on a charge of dumping its subsidized sugar in American markets in violation of the spirit if not the letter of the North American Free Trade Agreement.]
After decades of Communist repression and mismanagement, Cuba has reached a desperate crisis. Its Venezuelan ally which had provided subsidized energy in exchange for Castro assistance in setting up its own police state can nolonger foot the bill for Cuban energy.
That was the situation when Obama and his speechwriters rushed to fill the gap.
Now greedy American exporters – supercharged with their own program of an annual $14 billion in corruption-ridden agricultural and export subsidies – will be bidding with their Canadian taxpaying counterparts for supplying the starving country. Any extension of aid – private or government – will end up in the hands of the regime in its effort to survive by continuing to exploit an impoverished population.
Not only did Raúl Castro not make even the nominal concessions he has made in the past toward a liberalization of the regime, but so-called “reforms” permitting small scale private enterprise are a sham.
To the extent Obama can carry out his tactics despite formidable opposition in the Congress, his strategy will only intensify the implosion when it comes in Cuba. Rather, the American government should be preparing for that day, not the least for the tens if not hundreds of thousands of refugees who will flow toward Miami. Fifty years of dealing with the problems of another small Caribbean tropical island, Puerto Rica, a third Cuba’s size, have taught us just how difficult those problems will be.
sws-12-21-14

Strategy, any one?


 

“Okay, smart-a___, what is your strategy?”

In a [rather large] nutshell; here are the tactics which when pulled together make up a grand strategy:

Domestic

Make an “America is back!” speech from the Oval Office in the White House modeled on Harry Truman’s “Doctrine” speech of 1947. http://www.americanrhetoric.com/speeches/harrystrumantrumandoctrine.html   Its principal theme would be recognition that the U.S. and its allies are launched in an extended war — and still far from being won — against the Islamic jihadists.

Immediately ask Congress for emergency lifting of all Sequestration applying to the Department of Defense, the CIA and other security agencies for five years. Halt and reverse with continuing extension and recruitment the personnel cutbacks now decimating the American armed forces.

Reverse energy policies to provide the U.S. economy and our allies with a noninflationay stimulus of cheaper fuel, simultaneously directly providing hundreds of thousands of new jobs, by:

 

  • Administratively, opening up all federal lands [including offshore Virginia, etc.] to fracking,
  • Administratively, waiving all EPA regs on fracking for five years.
  • Administratively, fast-tracking applications for the dozen or so outstanding applications for liquefied natural gas export facilities, putting on hold any Environmental Protection Agency regulations concerning them for a five-year period.
  • Asking  Congress to lift all oil and gas export restrictions, including a waiver on EPA fossil fuel export regs for five years. [These exports would begin to supply allies in Europe and Asia and simultaneously help mend the balance of payments hemorrhage against the dollar.]
  • Immediately okaying the XL Keystone Pipeline and other Canadian applications for pipelines into the U.S. directed at Houston refineries and their export facilities.
  • Pushing Detroit and foreign-owned auto companies to organize and subsidize a national network of filling stations for an expanded production and use of LNG-fueled vehicles.

To reinforce federalism, begin the rescission of the 17th amendment, restoring the original intent of the Founders by returning the power on how to elect senators to the states, freeing the states to determine their own method including indirect election by the various legislatures. [Most of the turn of the 20th century arguments for direct election are now better ones for indirect election, e.g., “it’s a millionaire’s club”.]

Resurrect the independent U.S. Information Service with a cabinet post and assistant secretaries from State, Defense and CIA. The new department would incorporate the Board of International Broadcasting, expanding Radio Liberty [with renewed local language broadcasts to Central Asia] in order to tell “the American story” to the world.

Mideast

            Bomb the ISIL in Syria and Iraq “back to the stone age” with a massive WWII type aerial bombardment. In riposte, sanction all banks and financial institutions – including third parties, and, of course, including all Russian and the Chinese institutions – doing business with the al Assad regime.

“Pressure” Turkey to accept a NATO mission on its southeast flank to work directly with the secular and “moderate” Islamic anti-Assad forces from a Turkish sanctuary. Organize with our NATO partners a joint “request” that Ankara release immediately all imprisoned Turkish journalists as the first step in reinaugurating the movement toward a civil society. Let Pres. Recep Tayyip Erdogan know if he does not acquiesce to these quiet pressures and move back from his drift into Islamism, Washington will demand Turkey’s expulsion from NATO.

Reinvoke strict sanctions on Tehran until the mullahs accept a NATO – not the UN IAEI which has been so notoriously inept — inspection of their nuclear activities. Slam the possibility of military intervention “back on the table” and be prepared for surgical strikes to slow if not deter the Mullahs’ acquisition of WMD.

Administratively, add the Moslem Brotherhood to the State Department’s terrorist list, and direct the FBI to insure that all domestic Islamic organizations [including mosques] with formal and informal ties to the Brotherhood be put on a terrorist alert list.

Lift all restrictions on arms to Egypt now being temporarily enforced and invite al Sisi to visit the U.S. before mid-summer 2015.

Persuade al Sisi to abandon his dicey Second Suez Canal Project. Instead round up  Gulf States, Israel’s Dead Sea Works, the World Bank [IBRD] and private European, American and Japanese capital to fund the Qattara Depression Project to provde Egypt with cheap hydropower and a new chemical industry. http://en.wikipedia.org/wiki/Qattara_Depression_Project

Immediately and with considerable public fanfare accept Sheik Tamim bin Hamad Al Thani’s request for stationing additional American forces [he has called for 10,000] on the world largest air base at Al Udeid [Abu Nakhlah Airport], the U.S. Army base at Sayliyah and the U.S. base at Doha. Then, “encourage” the Gulf States [UAE, Dubai, Saudi Arabia] in concert with the United Arab Republic [Egypt] to ultimatum the Sheik to end all payments and subsidies to the Moslem Brotherhood, Hamas, al Nusr and ISIL and to both Arabic and English al Jazeera networks — “or else”. Compensate by helping the EU, and especially Germany, to negotiate greater LNG purchases from Qatar, if necessary using additional European storage facilities, to negate the Russian fossil fuels blackmail.

Immediately supply Ukraine with necessary heavy weapons and technical assistance to meet Pres. Vladimir Putin’s aggression.

Reoccupy with significant ground forces and maximum publicity the old Wheelus U.S. Air Force base at Mitiga International Airport in eastern Libya. “Encourage” Gen. Khalifa Belqasim Haftar to negotiate merger of Libya with the United Arab Republic [Egypt] with the help of ENI [Ente Nazionale Idrocarburi ] whereby the huge oil revenues could be stolen and wasted more beneficially.

“Persuade” the UN to amalgamate the UNWRA [special Palestinian UN organization with its enormous budget] with the UN Refugee Organization with the appointment of an American administrator by withholding the major part of both their fundings from the American taxpayer [as was done earlier to reform UNESCO and ILO]. Insist on a purging UNWRA staff, ejecting all those who have worked for or been active in Hamas, a terrorist organization so designated by the US and its allies.

Europe

Put the ruffles and flourishes back into the Anglo-American alliance with its attendant links to Canada, Australia and New Zealand as the cornerstone of NATO and America’s world alliance strategies.

Deliver SAPiest heavy weapons and technical assistance to Ukraine in its fight against the invasion by Russian Pres. Vladimir Putin’s forces and block Moscow intervention in rewriting the structure of the Kyiv regime.

Establish a NATO base in Estonia.

Move into lock-step with the French in tamping down West and Central African violence [see below].

See that the NATO Rapid Deployment Force becomes a reality SAPiest with the training on a level with the U.S.’ and Britain’s Special Forces.

Prepare for the eventual collapse of the Euro.

East & South Asia

Quietly assign a senior U.S. diplomat to a special U.S.-Japan-Korea commission to sit sine die to help sort out issues between Tokyo and Seoul with special personal representatives of Prime Minister Shinzo Abe and Pres. Park Geun-hye. [Their grandfather and father, respectively, established postwar relations between the two countries.] This would aim to smooth over the most important obstacle in an American-led defensive alliance in Asia against North Korea and Communist China threats.

Reinvoke the strict sanctions earlier used to induce the North Koreans to come to heel, including third party sanctions against any financial institutions who deal with them, openly or clandestinely. They would be lifted when an international inspection team consisting of Americans, Japanese and the NATO allies certify its weapons of mass destruction programs have been ended.

Nudge ASEAN to resurrect the intent of Sec. of State John Foster Dulles’ 1950s Southeast Asia Treaty Organization with the headquarters again in Thailand, and hold out admission possibility to Vietnam [if it makes major “reforms”, that is de-Communize] in its feud with Communist China.

Push Taiwan rearmament and “invite” the Republican Party to cuddle up to the Democratic Progressive Party to pressure the Kuomintang back into a stronger line against amalgamation with the Mainland to maintain the oinly democratic society in Chines history.

Latin America

Initiate “tough love” with Mexico, e.g., introduce legislation to subsidize American investment in Mexican oil and gas in exchange for joint paramilitary border operations to halt illegal flow of immigrants to the U.S. with reinforced joint patrols on both sides of the border and a joint U.S.-Mexican undercover immigration control force on the Mexican-Guatemala border. Reach agreement on new “modalities” for protecting American citizens traveling, visiting and doing business in Mexico, matching those affording Mexican citizens in the U.S.

Swap new legal provisions for bond concessions to the Argentines for their cooperation in U.S. Latin American projects, especially cleaning up “ice” trafficking through Rosario and Iranian penetration of neighboring Paraguay, and a quit-claim to the Falkland Islands.

Introduce legislation to reinstitute the macro aspects of the Cuban embargo at the same time removing all restrictions on movement to and from Cuba by American and Cuban citizens.

Africa

Move U.S. Africom to a new joint U.S.-French-Portuguese-NATO base to be built rapidly with port and air facilities on São Tome e Principe in the Gulf of Guinea while pursuing a campaign of destruction with African and Eruopean allies against Boka Harum.

If this seems a formidable list, it is indeed. It it seems an impossible list, remember that a population less than half the present one in the American war mobilization between 1939 and 1944 doubled real wages in the U.S., produced 229,600 aircraft, added 5,000 ships to the existing merchant fleet, even though two-thirds of the economy was devoted directly to military equipment — and simultaneously won a war against two formidable enemies. It took leadership and political resolve. But just as the attack on Pearl Harbor alerted a recalcitrant nation, however far current leadership has drifted away the country should be reminded that 9/11 was proof that “the splendid isolation” of the U.S. from the rest of the world’s troubles during the 19th century is long past history.

But no amount of posturing over strategy and tactics will suffice if the leadership is irresolute and tries to wish away the dangers of that world jungle that has now physically encroached.

sws-09-07-14

Ideology, technology, and – coming up a poor third – common sense


Nowhere is the struggle fiercer between half-aspiring ideology and good old common sense than in the Obama Administration’s energy strategy – or lack thereof.
Having been ambushed by intrepid technology in the exploitation of natural gas — – “the shale revolution” — the country’s energy markets are in partial abeyance. The shale gas has blocked the initial Obama drive to raise fuel and energy prices to force consumers to higher [if heavily subsidized even when facing bankruptcy] “alternative energy sources”. At the moment, the U.S. energy economy is poised between the fact that the new technology has brought abundance, even a temporary surplus, of natural gas, and the risk a falling price might inhibit further exploitation of increasingly greater estimated reserves.
The door is still closed for maximum exploitation of gas, the least polluting by far of all the fossil fuels, government fiat [refusal to lease public lands, pipeline certification, etc.]. But there is growing pressure on the Obama Administration’s despite its leftwing base and the problem of “face” for an obvious strategy to bolster a stagnant economy and the worst employment situation since the Great Depression.
Meanwhile, not only is the shale revolution building toward the vaunted calls from every recent president for “energy independence”, but it is creating additional revenues for those states who have defied the Obama Administration and its handmaiden the Environmental Protection Agency’s harassment. Pennsylvania’s more than six thousand unconventional wells, either producing gas or under development, lifted $224.5 million in fees off the state’s taxpayers backs last year. More than $2 billion in state tax revenue has been generated since 2008.
Despite the logic of giving shale gas free rein, the enviromentalistas continue to rant about the possible impacts of fracking – the method of reaching the gas — although there has been no significant pollution episode. That’s not only because of caution and superior technology of the drillers but the fact that the shale deposits generally lay hundreds of feet below water aquifers. Fracking skirts them and then drills horizontally to get at the gas [and sometimes oil]. On the contrary, there have been several disastrous train wrecks in the U.S. and Canada, with the rapidly increasing movement of new found American oil by rail rather than through more efficient pipelines.
Nor do the enviromentalistas concede that the movement from coal to gas turbines for producing electricity has reduced the overall levels of pollution. Nor is there recognition that the cost of failure to authorize pipelines – the most dramatic example, the proposed Keystone XL pipeline which would carry Canadian crude, picking up Dakota oil enroute, to the Houston refineries and a portion, perhaps as much as 15%, into export. A part of that tragedy is that millions of cubic feet of gas are being “flared” – allowed to burn off in the air – in the Dakota oilfields because there are no pipelines or liquefying facilities to carry it to market. Not only do 1500 wells flare an estimated $100 million worth of gas each month, but the resulting pollution represents an unnecessary additional pollution hazard.
In one of the most curious misplaced arguments making the rounds of the talking heads spewing out nonsense on energy is the advocacy of government subsidized electric cars. Until there is a revolutionary breakthrough in battery science, there is no efficient way to store electricity. Recharging the car batteries at their current level of efficiency in electric engines is after all based on the nation’s creaking electricity grid, about half of which is now produced by the devil incarnate of the enviromentalistas, coal. Imagine what would happen in the unlikely event there were millions of electric cars that needed overnight recharging.
Chris Faulkner, Breitling Energy, one of the leading lights in the fracking industry and as much of a mavim on world energy as you will find, argues that $5-6 billion would set up LNG pumps in the nation’s filling stations. Relatively modest changes in 1960s car engines –  at a cost of less than $1,000 a car, $30,000 for contemporary models – would permit them to use liquefied natural gas [LNG]. In fact, LNG is being used by some city bus lines already [e.g., Washington, D.C.]. And imported Indonesian LNG has been in common use in Japan, Hong Kong and Taiwan for almost 50 years. [A French company has just signed a contract to export U.S. LNG to Taiwan.] Faulkner points out that if the large transcontinental trucking companies went to LNG at current costs, the saving would be about the tab of current purchases of foreign oil.
Perhaps someone will whisper the dirty little secret that LNG at the pumps would reduce the average motorist’s fuel tab by up to two-thirds. Is that going to happen before the elections this fall – or will we have to wait for 2016?
sws-04-06-14

 

America, bursting with energy!


The U.S. energy juggernaut, powered by new technology and common sense, keeps rolling on.

Gains in energy production and productivity probably account for much of the projected 3.5% increase in the gross national product in the last quarter of 2013. Of course, even if it doesn’t get he expected adjustment downward later, the gains represents only a small part of the race to recoup the losses of the past seven years since the 2007-08 financial crisis hit. Nor unfortunately is energy production in itself much of a labor intensive activity, making little contribution toward the most horrendous unemployment problem since the end of World War II or maybe the Greart Depression. And it is very much still with us despite some masterful Administration playing with statistics [that notorious form of lying!]..

But what would be laughable if not such a tragic reflection of the Obama Administration’s war on the economy, are the claims in the President’s state of the union address for effecting the energy progress. In fact, this Administration has done just about everything it could to inhibit the expansion of fossil fuel development. Nevertheless Administration efforts to hike prices in order to force the markets into still high cost so-called green energy sources and away from fossil fuels has come a cropper. The enormous strides of deep drilling recovery from shale have worked a revolution in energy, the heart and soul, of course, of the American economy. As one spokesman for the industry said at a Congressional hearing a few days ago, until now our gas recovery in America had been largely the oozing from these shale deposits. Now the industry is going after the heart of the reserves deep in the earth.

But gas hasn’t been the only energy source that has had to overcome Washington’s efforts to stifle cheap fuel. The President’s stacked Environmental Projection Agency has waged a war against our vast coal reserves – possibly unconstitutionally — instead of speeding the search for new ways of burning and utilizing our almost limitless energy resource. It has stifled leasing of government lands for oil and gas development. [Luckily the successful movement into shale gas and oil production has had private lands for a playpen to demonstrate an entirely new source of energy.]  It has thrown up barriers to oil and gas exports which would permit the energy companies to use the cheaper American domestic sources in surplus, not only to enhance energy profits but by lucky coincidence to defanging a half century’s use of oil to abet jihadist politics by Middle East producers.

The President’s exaggerated claims for “alternative energy” advances are largely fiction. Hundreds of millions from the Administrative stimulus package have gone into bankrupt entities which even the President has admitted had few “shovel ready” projects as he had earlier claimed, Furthermore, fossil plants are still needed to meet increased energy demands in even this relatively stagnant economy. For when the wind doesn’t blow and the sun doesn’t shine electricity demands still have to be met. Never mind the horrendous cost and endless litigation for new high voltage networks that nobody wants in their backyard to carry these “alternatives’ production from their origin where they cannot be stored to the urban markets where they are needed.

No more did the ballyhoo of the liberal media die down over an empty rhetorical State of the Union drama – shamelessly ending with an appeal to every patriot’s tears with an endorsement of the struggle of a heroic wounded soldier – than there was a new ringer. The State Department, somehow charged with the audit because of the involvement of our neighbor and near-twin, the Canadians, announced there are no environmental constraints against building the Keystone XL Pipeline. It is the fifth time a government inquiry has said the $5.4 billion project, to be funded entirely by the private sector, has been given an environmental stamp of approval. Some fifteen thousand pages of scientific and technical evidence published in four environmental analysis reports since 2010 had already concluded the project would have minimal impact on the environment. The trajectory from Canadian tar sands through the Dakotas – where it would pick up increasing oil production from one of the largest finds ever in the U.S. – toward refineries in Texas looks like a thunderbolt, zigzagging to avoid supposed local environmental hazards. Even organized labor, what had been Obama’s most loyal constituencies. has been pressing the Administration to go ahead for the tens of thousands of construction jobs it would produce. The proposed 1,179-mile pipeline extension would run from Hardisty, Alberta, to Steele City, Neb., and then join up with a southern link already completed in January this year to the Texas refining and petrochemical complex and ports. The 485-mile southern section of the pipeline operated by Calgary-based TransCanada did not require presidential approval because it does not cross a U.S. border.

What the Administration could have been doing instead of diddling with this obvious decision is devoting its subsidies to pipelines to carry our now huge surplus of gas in the form of liquefied natural gas [LNG] to a new network of filling stations around the country. Japanese and Hong Kong taxis have been using imported Indonesian LNG successfully and with great economic benefit for more than half a century. We have a few municipal bus and truck fleets around the country using it, ironically, largely because of environmentalist pressure for the reduction of carbon emissions which results from gas rather than other heavier fuels. In fact, again, it has been the growing substitution of gas for old style coal burning turbines – largely for purely economic reasons – that permitted the President to trumpet the fact that the U.S. has succeeded in the goal more than any other country in reducing carbon emissions. But that has not not, as he hinted, taken place because of anything the government has done. [Mandated higher mileage for Detroit’s automobiles which the Administration crows about is a minimal contributor, if at all. What it has done is drive manufacturers toward lighter weight vehicles, hopefully not ahead of the meticulous and difficult development of stronger metal alloys and crash-resistant design.] In fact, some auto engineers point out transforming a 1960s standard gasoline engined car to LNG would only be a matter of a thousand dollars or so The hitch is a network of filling stations to dispense the LNG from transcontinental pipelines..

Even the environmentalistas of NPR have had to acknowledge the explosion of energy in the northern plain states in a series emphasizing the seamier side of the enormously profitable developments there. That has been not onlya bonanza for the companies but for the lowest unemployment rates in the nation. “National People’s Radio” emphasis is less on the hundreds of thousands of jobs and taxes paid local governments and additional income for farmers, some eirtscrabble poor – and the benefits for energy consumers created by a traditional American oil boom..

But what the government-subsidized network series does underline is that in part because of war against expansion of pipelines, “$1 million a day just being thrown into the air” or “flared”, burned into nothingness as an unused byproduct of the search and development of the golden light crude oil of the region. NPR’s solution to the problem is, of course, more regulation rather than directing federal subsidies toward the rapid creation of new pipelines. That kind of program could carry this wasted gas wealth to newly emerging petrochemical and other manufacturing “in-shoring” from its earlier flight of American industry to more attractive business environments overseas.

Bottom line: even the anti-business, anti-free enterprise, anti-libertarian thrust of the Obama Administration and its often mindless Washington bureaucracy has not been able to squelch the vitality of the U.S. economy. The struggle will go on for at least another three years. But in the energy revolution now going forward despite the statism of the current Washington leadership, American initiative and enterprise is reasserting itself for what one hopes will be its inevitable economic victory in its best U.S. traditions.

sws-02-02-14

 

 

A pipeline to …well, almost …eternity


Follow the money No. 97

A pipeline to …well, almost …eternity

Camouflaged by Congressional political badminton and Pres. Barack Obama’s demagoguery, the Keystone XL Pipeline Project represents solutions to economic and security issues far exceeding its general appreciation.

Half truths on all sides have obscured the project’s underlying fundamentals. Some are only emerging as additional research and technology is applied – most of it, for a change, good news in that it boosts estimates of access to available North American new fossil fuels reserves even if at higher prices.

Contrary to claims of Congressional proponents, the project is not an immediate positive economic bonanza. Like all natural resource development projects, construction employment will be temporary and jobs minimal when the pipeline is actually functional. Of course, given the current environment, any new jobs of any duration not added to the public payroll — the project is funded privately at something over $7 billion — is a godsend.

Its importance lies in its contribution to what should be a longer term U.S. energy strategy, a consideration often missing in heated partisan debate.

First of all, direct access to the Canadian tar sands affords fallback access for the almost bottomless U.S. energy maw – developing rapidly long- term whatever the short-term diminished demand of a temporarily crippled economy. Scandal after scandal is proving the Obama Administration’s so-called green energy strategy corrupt as well as wasteful and ineffectual. Keystone, on the other hand, would put crude into the Texas petrochemical refinery complex already absorbing Venezuela’s similar heavier oil – those reserves recently reestimated upward with spectacular finds on the Orinoco River.

That would give the U.S. not only an emergency alternative to the Venezuelan crude, fourth largest of our import sources, but leverage against the machinations of gringo-baiting Venezuelan Pres. Hugo Chavez. Given that country’s long troubled history, necessary insurance is needed even in a post-Chavez Venezuela [soon perhaps with reports the fiery demagogue may soon fall victim to cancer largely untreated so he could continue exercising his one-man rule].

The expanded pipeline proposal also now would pick up on its way the more attractive sweet crude from the Bakken strike in North Dakota, already one of the largest in U.S. history and apparently linked by new successful prospecting and new shale recovery technologies to huge neighboring regional deposits. With Bakken already having added an estimated 10% to American reserves, these could turn into the largest petroleum find in U.S. history.

As the pipeline travels south, it also aims at untangling a crude gathering traffic jam in Oklahoma and expanding the tanker delivery scene on the Texas coast.

But radical environmentalists had chosen – with the help of the usual Hollywood suspects assuaging their guilt for their gratuitously huge earnings – to make Keystone a major test. That was despite three years research by experts for the State Dept. had not turned up sufficient environmental issues to block the project. When local interests in Nebraska – ignoring the relatively clean record of the country’s vast pipeline networks – argued spills might threaten a critical local aquifer, the Canadian company countered with a $100-million-dollar detour around it.

Washington rumors are Sec. of State Hillary Clinton was not only not consulted but not forewarned when Pres. Obama, anticipating the 2011 election, threw a bouquet to enviromentalistas who had been increasingly jaundiced at his 2008 promises. But with even normally loyal trade unionists joining the outcry against the White House postponement to go ahead until after next year’s election, it was inevitable the issue would become a cudgel for the Republicans.

Canadian threats to transfer their affections to the Chinese market might have some validity – although even Chavez is arranging swaps with Iran for his Chinese sales with Venezuelan crude supposedly sold Beijing flowing into Texas. But level-headed Canadian Prime Minister Stephen Harper – an economist and native of Canada’s provincial giant oilwell, Alberta – may have overestimated American common sense. [Recent hints suggest Ottawa feels it is dealing with an overburdened, troubled U.S. and has to demonstrate inordinate patience for both their sakes. One has to wonder what the two chief executives talk about in frequent and what appear to be pleasant meetings!] But, in fact, Canada’s role as No. 1 foreign energy supplier to the U.S. – something forgotten in much of the talk about “American energy independence” – probably, rightfully, isn’t going away in the near future. The Republicans may be seeing to that.

sws-11-16-11