Posts Tagged ‘oil industry’

Covert Operations

Covert Operations

Billionaire New York philanthropist David Koch attends the Americans for Prosperity Foundation fourth annual Defending the American Dream summit in Washington on August 27, 2010. UPI/Alexis C. Glenn Photo via Newscom

The billionaire brothers who are waging a war against Obama.

By Jane Mayer, The New Yorker 

Excerpts:

DiZerega, who has lost touch with Charles [Koch], eventually abandoned right-wing views, and became a political-science professor. He credits Charles with opening his mind to political philosophy, which set him on the path to academia; Charles is one of three people to whom he dedicated his first book. But diZerega believes that the Koch brothers have followed a wayward intellectual trajectory, transferring their father’s paranoia about Soviet Communism to a distrust of the U.S. government, and seeing its expansion, beginning with the New Deal, as a tyrannical threat to freedom. In an essay, posted on Beliefnet, diZerega writes, “As state socialism failed . . . the target for many within these organizations shifted to any kind of regulation at all. ‘Socialism’ kept being defined downwards.”

Members of the John Birch Society developed an interest in a school of Austrian economists who promoted free-market ideals. Charles and David Koch were particularly influenced by the work of Friedrich von Hayek, the author of “The Road to Serfdom” (1944), which argued that centralized government planning led, inexorably, to totalitarianism. Hayek’s belief in unfettered capitalism has proved inspirational to many conservatives, and to anti-Soviet dissidents; lately, Tea Party supporters have championed his work. In June, the talk-radio host Glenn Beck, who has supported the Tea Party rebellion, promoted “The Road to Serfdom” on his show; the paperback soon became a No. 1 best-seller on Amazon. (Beck appears to be a fan of the Kochs; in the midst of a recent on-air parody of Al Gore, Beck said, without explanation, “I want to thank Charles Koch for this information.” Beck declined to elaborate on the relationship.)

[...]

As their fortunes grew, Charles and David Koch became the primary underwriters of hard-line libertarian politics in America. Charles’s goal, as Doherty described it, was to tear the government “out at the root.” The brothers’ first major public step came in 1979, when Charles persuaded David, then thirty-nine, to run for public office. They had become supporters of the Libertarian Party, and were backing its Presidential candidate, Ed Clark, who was running against Ronald Reagan from the right. Frustrated by the legal limits on campaign donations, they contrived to place David on the ticket, in the Vice-Presidential slot; upon becoming a candidate, he could lavish…
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Innovation, Risk and the Forest Fire Analogy

Innovation, Risk and the Forest Fire Analogy  

Lava burning forest

Courtesy of Charles Hugh Smith Of Two Minds 

To clear open space for innovation to take root, sometimes you need a forest fire to destroy all the deadwood. Instead, we are frantically piling up more deadwood.

What was once an inflammatory outlier--that our brand of "capitalism" incentivizes exploitation, fraud, complicity, corruption and plunder--is now commonplace. Even the most mainstream financial media websites now sport commentaries which excoriate our systemic fraud, and books galore gleefully sport titles containing "hot" words like plunder.

That is a remarkable turn of events: that a radical critique of our entire financial system has gone mainstream, and in many circles has been accepted as "obvious." (For more on the tricky nature of what’s "obvious," please see the chapters on the politics of experience in Survival+.)

In Innovation: Financial, Technical and Institutional (June 30, 2010), I attempted to connect the dots between risk and innovation. I believe that the two concepts are intrinsically bound like oxygen and hydrogen in the water molecule, but this deep structural connection between the two is generally ignored or not even recognized.

In essence, innovations which remain inherently unstable and unsafe regardless of hedges, controls and safety features--that is, they embody intrinsic risk-- cannot be placed in the same category as innovations with inherently low risk.

One of the keystones of the Survival+ critique is the realization that the risks of our systemic "financial innovations" are ontological and cannot be massaged away to zero. Indeed, the idea that this was possible underpinned the entire credit bubble and its inevitable implosion.

Mathematician Benoit Mandelbrot discredited this notion in depth in his book (highly recommended) The Misbehavior of Markets.

I addressed this last year in The Yellowstone Analogy and The Crisis of Neoliberal Capitalism (May 18, 2009):

For decades, the operative theory of forestry management was that limited controlled burns-- mild reductions of dead underbrush and debris--would essentially reduce the possibility of a major fire to near-zero.

But the practice actually allowed a buildup of dead wood which then fueled the devastating forest fire which swept Yellowstone National Park in 1988. Various revisionist views sprouted up later, claiming the fire was not the result of misguided attempts to limit natural forces (Vast Yellowstone Fire Now Seen as Unstoppable Natural Cataclysm (NT Times, 1989)).

Now we’re in a financial conflagration which is widely considered the result of


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Which Horizon?

Which Horizon?

Courtesy of James Howard Kunstler 

UK, England, Tyne and Wear, Whitley Bay, St Mary's Lighthouse, dusk

     Did the nation heave a sigh of relief when BP announced that their latest gambit to "cap" the Deepwater Horizon gusher will result in hosing up fifty percent of the leaking oil? If so, the nation may be sighing too soon since the other half of the oil will still collect in underwater plumes and hover all around the Gulf Coast like those baleful mother ships in the most recent generation of alien invasion movies. I shudder to imagine the tonnage of dead wildlife flotsam that will wash up with the tide for years to come. It will seem like a "necklace of death" for several states, though even that may not be enough to distract them from the more gratifying raptures of Nascar and NFL football. 

     For the moment we can only speculate on what the still-unresolved incident will mean for America’s oil supply. The zeal to prosecute BP for something like criminal negligence has bestirred a Department of Justice comatose during the rape-and-pillage of the US financial system. BP may be driven out of business, but then what? The net effect of the oil spill, one way or another, will be the gradual shut-down of oil drilling activity in the Gulf of Mexico. New government supervision will make operations very costly, if not non-viable, and the surviving companies will probably pack up for the west coast of Africa where supervision is almost non-existent.  Anyway you cut it, the US will produce less oil and import more — and have to rely on the political stability of places like Angola and Nigeria, not to mention the simmering Middle East.

     So far, also, the US has done nothing in the way of holding a serious national political discussion about the the most important part of the story: our pathological dependency on cars. I don’t know if this will ever happen, even right up to the moment when the lines form at the filling stations. For years, anyway, the few public figures such as Boone Pickens who give the appearance of concern about our oil problem, end up down the rabbit hole of denial when they get behind schemes to run the whole US car-and-truck fleet on something besides gasoline.

     This unfortunate techno-narcissism shows that almost nobody wants to think about living…
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Closing the Hole in the Gulf: A Petroleum Engineer Responds

Closing the Hole in the Gulf: A Petroleum Engineer Responds

Gulf Coast Struggles With Oil Spill And Its Economic Costs

Courtesy of Robert Reich

A petroleum engineer who’s worked in the oil industry tells me BP is doing the minimum to clean up the oil and everything it can to protect its bottom line. According to the engineer, here’s what BP should be doing right now to mitigate the damage. If the President were to put BP into temporary receivership, he’d have the power to get BP to:

1. Stop releasing dispersants. So-called dispersants are toxic, and it’s crazy to add more poison to the Gulf. Dispersants do nothing to assist the environment in naturally cleaning the oil; their main use is PR. They reduce the number of ugly pictures of birds covered in pure black crude. Dispersants break the thick layer of crude into smaller globs, but that doesn’t help the Gulf and its wildlife. Most of the crude just mixes with the water to produce a goop that looks like chocolate ice cream but is highly poisonous.

2. Mobilize every possible tanker to siphon up crude from as close to the leak points as possible. Oil industry leaders as John Hofmeister (president of Shell Oil from 2005 until 2008) have recommended this, but inexplicably neither BP nor the federal government are talking about even trying this idea. BP currently has only one spot where they have inserted a tube into a riser, or pipe, that is leaking oil from the sea floor. The company is gathering the crude oil and siphoning it up to a drill ship for storage.

They should have at least a dozen collectors. BP has 24 tankers that are being used to make money for BP, not for clean-up duty. (President Obama should also use all necessary federal power — or money, and send BP the bill — to put as many tankers and refineries from other companies on the task.)

Gulf Coast Struggles With Oil Spill And Its Economic Costs

Mile-long pipes could be dangled down into the crude spewing from the wellhead and at each breach in the riser pipe, and the tankers could pump the crude mixed with water back into the tankers. They could then separate the crude and water in the tanker, and pump the water out on the spot. This should continue until each tanker is full of oil. The crude should then be taken to a refinery for processing, as other tankers take their place. Submersibles…
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Obama’s Alpha Delusion

Eric writes about the Obama administration’s entry to the clean energy sector.  For more about Eric, intellectual property, and the law, click here to read our interview.  For additional thoughts by Eric on everything, visit his blog.) – Ilene

Obama’s Alpha Delusion

Courtesy of Eric Falkenstein at Falkenblog

From the WSJ:

The Obama administration launched a clean-energy blitz Tuesday, with President Barack Obama sweeping into this Central Florida hamlet to unveil $3.4 billion in stimulus grants for advanced electricity-grid projects

This PR parade relies on the idea that this administration, if not Obama himself, gets into details, and chooses the right cutting edge technologies and methods. Look at Obama above, with his sleeves rolled up, giving pointers to an appreciative bunch of field managers (perhaps the NEA can get to work on some Soviet Realism in this context). In this case, Obama merely has to allocate some of our money to a select list of projects that are aligned with the buzzwords ‘clean energy’, and we get the increasing returns to scale that Paul Krugman won his Nobel Prize for (too bad Ann Krueger didn’t win a Nobel for showing the same ‘infant industry’ argument has been a pretext to protect inefficient industries for over 200 years).

It never occured to any of these guys that there aren’t any magic solutions to our energy problem. They act as if we only tried to develop batteries, we could have ten times the power. See this video from Zocalo, and at the end of the critical discussion about the oil industry an audience member earnestly asks: "can’t we develop energy out of water?" as if the only reason we use oil is because the Rich Uncle Pennybags character from the Monopoly Game is not letting us. The electric car predates the internal combustion engine. My laptop and cell phone routinely run out of energy, highlighting the high reward waiting for the next battery innovation. There has been and continues to be research, and incentives, to increase the efficiencies of batteries.

Obama hates being compared to socialists, so I’ll refrain and compare him to a communist. In the state published hagiography, Divine Stories About the Dear Leader, Kim Jong-Il is presented as someone excellent at golf, pistol shooting, technology,


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Peak Oil Is Totally Bogus

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Peak Oil Is Totally Bogus

Courtesy of Jay Yarow at Clusterstock


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Zero Hedge

2019 Is 5th Consecutive Year With No Operating Profit Growth

Courtesy of ZeroHedge View original post here.

Submitted by Joe Carson, former Chief Economist & Director of Global Economic Research for Alliance Bernstein

2019 operating profits will show no growth for the 5th consecutive year. That would mark the longest stretch of no earnings growth since the late 1990s. Prospects for 2020-profit growth look slim as well given consensus GDP growth estimates of around 2%, slow global growth and rising costs pressure from labor.

Operating Profits

Q4 GDP and the full year 2019 operating profit numbers will not be released until March, but one...



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Kimble Charting Solutions

Bull Case For Stocks, Testing Critical Breakout Level, Says The Inspector!

Courtesy of Chris Kimble

Some price points lend themselves to potential turning points. Is the S&P at one of those price points? The inspector suggests it is!

This chart looks at the S&P 500 over the past couple of years. Fibonacci was applied to the 2018 highs and 2018 lows.

The rally off the December 2018 lows, has the S&P testing its 161% extension level at (1).

While at this extension level, momentum is the 2nd highest in the past 5-years.

The Fibonacci extension level becomes a price point where some stock market bulls need/want to see...



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Insider Scoop

11 Communication Services Stocks Moving In Thursday's Pre-Market Session

Courtesy of Benzinga

Gainers
  • Pareteum, Inc. (NASDAQ: TEUM) stock moved upwards by 4.5% to $0.87 during Thursday's pre-market session.
  • Comcast, Inc. (NASDAQ: CMCSA) shares rose 2.0% to $48.40. The most recent rating by Wells Fargo, on January 16, is at Overweight, with a price target of $51.00.
  • Vodafone Group, Inc. (NASDAQ: VOD) shares moved upwards by 1.4% to $20.22.
Losers
  • Genius Brands Intl, Inc. ...


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Phil's Favorites

"It Just Keeps Getting Crazier" - Options Speculation Reaches Record High

Courtesy of ZeroHedge

Despite the fact that the bond market refuses to sell-off (as it should in a well-behaved market sending stocks to record-er and record-er highs each and every day), the levered long crowd has never been more "all-in" than they are right now.

While stocks are at record highs, bond yields are plumbing 2 month lows...

Source: Bloomberg

However, there are some notable anomalies in the VIX term structure that could become problematic in the next few days. As contracts expire, so the very steep term structure (fueling lots of short-vol-tilted carry trades) will flatten...

...



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The Technical Traders

TRADING STRATEGIES FOR GDXJ, SPY, BONDS, AND NATURAL GAS

Courtesy of Technical Traders

Chris Vermeulen joins me today to shares his trading strategy for 4 different markets. While most of these markets are not correlated he has reasons for why he is long in each. Pick and choose where you want to deploy your capital.

Get Chris’ Trade Signals Today – Click Here

...

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Chart School

RTT browsing latest..

Courtesy of Read the Ticker

Please review a collection of WWW browsing results. The information here is delayed by a few months, members get the most recent content.



Date Found: Monday, 16 September 2019, 05:22:48 PM

Click for popup. Clear your browser cache if image is not showing.


Comment: This chart says SP500 should go back to 2016 levels (overshoot will occur of course)



Date Found: Tuesday, 17 September 2019, 01:53:30 AM

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Comment: This would be HUGE...got gold!


...

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Members' Corner

The War on All Fact People

 

David Brin shares an excerpt from his new book on the relentless war against democracy and how we can fight back. You can also read the first, second and final chapters of Polemical Judo at David's blog Contrary Brin.

The War on All Fact People 

Excerpted from David Brin's new book, the beginning of chapter 5, Polemical Judo: Memes...



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Lee's Free Thinking

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

 

Why Blaming the Repo Market is Like Blaming the Australian Bush Fires

Courtesy of  

The repo market problem isn’t the problem. It’s a sideshow, a diversion, and a joke. It’s a symptom of the problem.

Today, I got a note from Liquidity Trader subscriber David, a professional investor, and it got me to thinking. Here’s what David wrote:

Lee,

The ‘experts’ I hear from keep saying that once 300B more in reserves have ...



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Digital Currencies

Cryptos Have Surged Since Soleimani Death, Bitcoin Tops $8,000

Courtesy of ZeroHedge View original post here.

Bitcoin is up over 15% since the assassination of Iran General Soleimani...

Source: Bloomberg

...topping $8,000 for the first time since before Thanksgiving...

Source: Bloomberg

Testing its key 100-day moving-average for the first time since October...

...



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Biotech

Why telling people with diabetes to use Walmart insulin can be dangerous advice

Reminder: We are available to chat with Members, comments are found below each post.

 

Why telling people with diabetes to use Walmart insulin can be dangerous advice

A vial of insulin. Prices for the drug, crucial for those with diabetes, have soared in recent years. Oleksandr Nagaiets/Shutterstock.com

Courtesy of Jeffrey Bennett, Vanderbilt University

About 7.4 million people ...



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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

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