Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: Energy

Hurricane Harvey, President Trump Putting More Pressure on Venezuela

This article appeared online at TheNewAmerican.com on Sunday, August 27, 2017:

On Friday President Donald Trump once again ramped up sanctions against Venezuela’s Marxist dictator, shutting off his ability to sell new debt or equity in the U.S. financial markets. On Saturday, Hurricane Harvey, the worst hurricane to hit the Gulf Coast in 50 years, has all but sealed Maduro’s fate.

Following Maduro’s installation of his illegal “constituent assembly” in July, President Trump placed sanctions on Maduro himself, freezing any and all of his assets lying within American jurisdiction. A week later Trump added a few of Maduro’s cronies to that list, and on August 9 he added a few more. At the time The New American expressed skepticism that they would have any effect on Maduro’s obstinacy and determination to continue policies that have caused Venezuela’s economy to shrink by 35 percent just since 2014.

On Friday the Trump administration broadened those sanctions to include

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OPEC Leaving Its Options “Open” as Production Cuts Fail to Raise Oil Prices

This article appeared online at TheNewAmerican.com on Friday, August 25, 2017:  

Even the subtitle was misleading: “JMMC Reports Positive Indications of Oil Market Rebalancing in Progress.” That is the subtitle of the report issued on Thursday by OPEC’s Joint Ministerial Monitoring Committee, the toothless enforcement arm of OPEC.

OPEC is down to its last option: verbiage. The JMMC reported that everything is rosy:

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Dakota Pipeline Co. Sues Greenpeace, Earth First! Under RICO for Conspiracy to Halt Construction

This article appeared online at TheNewAmerican.com on Wednesday, August 23, 2017:  

Greenpeace word mark Русский: Текстовый символ...

Energy Transfer Partners (ETP), the company behind construction of the Dakota Access Pipeline, lashed out against the “Enterprise” in a major lawsuit filed on Tuesday. The 231-page lawsuit accused Greenpeace International, Greenpeace, Inc., Greenpeace Fund, Inc., BankTrack, Earth First!, and other environmental organizations and individuals of participating in a criminal effort to damage the pipeline and ETP’s reputation among its partners and lenders. It is seeking nearly a billion dollars in compensatory and punitive damages under the RICO statute.

RICO, enacted as part of the Organized Crime Control Act of 1970, was originally designed to attack the Mafia’s illegal activities, but has been expanded over the years. It extends criminal penalties not only to the miscreants themselves but to their bosses, funders, and enablers.

ETP said that the Enterprise

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Morgan Stanley: Tesla Not as Green as You Think

This article appeared online at TheNewAmerican.com on Friday, August 18, 2017:

English: Tesla Roadster Sport 2.5, the fourth-...

Tesla Roadster Sport 2.5, the fourth-generation Roadster from electric carmaker Tesla Motors Inc.

Morgan Stanley, the international banking behemoth, released the results of its study on the best “green” companies in which to invest. This is based, said the bank, on the assumptions that some, perhaps many, investors who have drunk the “green Kool-Aid” want to invest in ways to “save” the environment and fight against “climate change.” Missing from the top of their list is perhaps the most visible “green” automobile company: Tesla, Inc., formerly known as Tesla Motors.

After comparing the savings in carbon dioxide (CO2) achieved by Tesla’s high-mileage electric vehicles to all the “secondary and tertiary” factors involved in their manufacture, Morgan Stanley said,

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OPEC Members Continue Non-compliance

This article appeared online at TheNewAmerican.com on Friday, August 11, 2017:

English: Flag of the Organization of Petroleum...

The Paris-based International Energy Agency (IEA) noted in its latest report released on Friday that non-compliance among OPEC’s members, and those non-members who also agreed to cut oil production, increased again in July. Non-compliance is the death knell for any cartel, and OPEC is no exception.

Specifically, non-compliance among the cartel’s members rose to 25 percent in July, the highest since the agreement was inked in January. Among non-OPEC members who signed on to that agreement, non-compliance was at 33 percent in July.

Put another way,

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OPEC Getting Some Help from Nervous Energy Company Bondholders

This article was published by The McAlvany Intelligence Advisor on Friday, July 21, 2017:

It’s no wonder that investors owning bonds of companies in the energy business are getting nervous. They purchased high-yield bonds issued by them, seeking income when there was little to be had elsewhere. Last year they were rewarded with 38 percent gains in their holdings as the industry rebounded.

But in June Bloomberg reported that those same bondholders saw their values drop by two percent. This is on top of energy stocks that have tanked 16 percent so far this year.

It’s the vicious circle facing frackers.

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Fracking’s Vicious Cycle Making Bondholders Nervous

This article appeared online at TheNewAmerican.com on Thursday, July 20, 2017:

King Abdullah ibn Abdul Aziz in 2002

King Abdullah ibn Abdul Aziz

Investors in high-yield bonds issued by small fracking companies are getting nervous. Last year those bonds, according to Bloomberg, gained some 38 percent as they rebounded from lows set earlier. In June they slipped two percent. In the bond business, that’s enough to make bond fund managers and individual investors nervous. It’s bad enough that the S&P 500 Energy Sector Index of energy stocks has lost 16 percent so far this year. What’s worse is the vicious cycle that frackers find themselves in.

For instance,

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Will Mulvaney Have Any More Success with MAGAnomics than Stockman did with Reaganomics?

This article was published by The McAlvany Intelligence Advisor on Monday, July 17, 2017:

English: Official portrait of US Rep. Mick Mul...

Mick Mulvaney.

After serving in the House as a Republican representative from Michigan, David Stockman served as President Ronald Reagan’s OMB director from January 1981 until he quit 4½ years later in frustration. He got half of Reaganomics passed – the tax reduction part. He failed in getting the other half passed – the government spending cut part.

Mick Mulvaney is now Trump’s OMB Director after serving in the House as a Republican from South Carolina. And his job is likely to be as difficult and frustrating as was Stockman’s.

It’s far too soon to speculate about Mulvaney.

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Crude Oil to Climb to $60 a Barrel, Claim Aramco’s CEO, Citi, and Goldman

This article appeared online at TheNewAmerican.com on Monday, July 10, 2017:  

English: Flag of the Organization of Petroleum...

Claiming that the worldwide demand for crude oil will jump by 20 million barrels of oil per day over the next five years, Amin Nasser, the CEO of Saudi Aramco, said, “Investments in smaller increments such as [U.S.] shale oil will just not cut it.” Speaking at the World Petroleum Congress in Istanbul last week, Nasser said:

If we look at the long-term situation of oil supplies, for example, the picture is becoming increasingly worrying.

 

Financial investors are shying away from making much-needed large investments in oil exploration, long-term development and the related infrastructure….

 

New discoveries are also on a downtrend. The volume of conventional [non-shale] oil discovered around the world over the past four years has more than halved compared with the previous four.

Speaking to his own interest, Nasser is trying to talk up the value of his company, which remains on schedule to sell five percent of itself in what some are calling “the world’s largest IPO [initial public offering].” To stress the point, Nasser said

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Crude Oil’s Bear Market Is Crushing OPEC

This article appeared online at TheNewAmerican.com on Monday, July 3, 2017: 

Map of the territory and area covered by prese...

Map of the territory and area covered by present-day Saudi Arabia.

The world’s price of crude oil fell farther in the first six months of 2017 than in any six-month period in the last 19 years. From its peak in January it dropped by more than 21 percent by the middle of June, qualifying it in Wall Street jargon as a “bear market.”

This isn’t part of OPEC’s plan. The once-influential cartel was sure that by taking 1.8 million barrels a day of crude oil production off the world markets, the world price of oil would shortly hit its target of $60. And it almost made it, rising to $57 a barrel before beginning its long and crushing decline.

OPEC was sabotaged not only by noncompliance among its members and production from those to which it gave a pass (Libya and Nigeria), who produced more than was expected, but also by

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OPEC Continues its Descent into History as an Unlamented Footnote

Embed from Getty Images

This article was published by The McAlvany Intelligence Advisor on Monday, July 3, 2017: 

Two weeks ago, the world price of crude oil officially entered a bear market, down more than 21 percent from its high early in the year. OPEC’s plan appeared to be on track, taking enough production off the market to drive the price to $60 a barrel. That decline has enormous implications for the cartel’s members, as nearly all of them need the revenues to keep their welfare and warfare states fully funded. The decline must be especially painful for Saudi Arabia, the leader of the pack, which announced plans last year to sell part (estimated to be between five and ten percent) of its precious Saudi Aramco oil company. The company, thanks to deliberately opaque disclosures, was estimated to be worth, depending on the price of oil, between $2 trillion and $10 trillion.

That’s the operative word: “depending.” OPEC had big plans for the funds it hoped to raise, encapsulated as its “Vision 2030.” As Mohammad bin Salman bin Abdulaziz Al-Saud, the nation’s Chairman of the Council of Economic and Development Affairs, wrote:

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Enjoying Record Low Gas Prices? Thank a Fracker!

This article appeared online at TheNewAmerican.com on Tuesday, June 27, 2017:  

On November 17, gas prices had dropped to $1.9...

Of the estimated 44 million Americans who will travel over the upcoming Independence Day holiday weekend (a record, by the way), 37.5 million of them will drive to their destinations. Along the way they will not only spend nearly a dollar a gallon less for gas than they have over the last 10 years on average, they will spend less on gas than any Independence Day since AAA has been keeping records. In addition, this will be the first time in nearly two decades that they will be spending less for gas in July than they did in January. On average over the last decade gas prices have been 47 cents a gallon higher on the Fourth of July than on New Year’s Day.

Consumers are always the ultimate beneficiaries of improved technologies, as producers are

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Oil Expert Yardeni: OPEC Should Break Agreement, Produce All It Can

This article appeared online at TheNewAmerican.com on Wednesday, June 21, 2017: 

In Dr. Ed’s Blog, Ed Yardeni, for 25 years one of the industry’s leading energy strategists, proposed on Wednesday that OPEC should consider going back to Plan A to fund members’ treasuries as Plan B clearly isn’t working:

Rather than [attempting to prop] up the price [of crude oil], maybe OPEC should sell as much of their oil as they can at lower prices to slow down the pace of technological innovation that may eventually put them out of business.

Plan A, it will be remembered,

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More OPEC Bad News: Increases in World Oil Supplies Overwhelming Its Cuts

This article appeared online at TheNewAmerican.com on Wednesday, June 14, 2017:  

English: Map of OPEC countries. Dark green = m...

English: Map of OPEC countries. Dark green = member states, Light green = former member states. Light Grey = Prospective members.

In its regular monthly oil market report, the International Energy Agency (IEA) stated that the world’s supply of crude oil increased in April by 18 million barrels just when it was expected to decline. To add to OPEC’s woes —OPEC is unsuccessfully trying to reduce the world’s oil supplies by cutting production so as to raise oil prices enough to fund the countries’ welfare states —  the agency also said it expected U.S. producers to increase their production by 430,000 barrels a day this year over last year, and by 780,000 barrels a day in 2018. The agency added that even this might be too pessimistic: “Such is the dynamism of this extraordinary, very diverse industry it is possible that growth [in crude oil inventories] will be faster [than we estimate].”

Its report makes for sobering reading for OPEC’s 13 members and the other 10 nonmembers who extended a production cut agreement to March 2018:

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What if the Energy Department is Right?

This article was published by The McAlvany Intelligence Advisor on Friday, May 2, 2017:

English: A picture of the National Petroleum R...

A picture of the National Petroleum Reserve–Alaska,

Tom Lombardo appears to be a self-effacing journalist, professor, and armchair philosopher with a certification as a Professional Energy Manager. He calls himself either “an idealistic pragmatist” or a “pragmatic idealist,” but with no discernible ties either to the energy industry or the green movement. That’s what makes his assessment of the Obama Energy Department’s study published last summer on renewable energy remarkable. If he’s correct, then Big Oil is shortly going to have a day of reckoning in Alaska.

Writing at Engineering.com, Lombardo reviewed a report emanating from the Energy Department in August last year titled, “Estimating Renewable Energy Economic Potential in the United States: Methodology and Initial Results.” After looking at various energy scenarios (the Energy Department did no forecasting in its report), Lombardo summed up the study:

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Alaska’s North Slope Oil Reserves Are “Open for Business”

This article appeared online at TheNewAmerican.com on Thursday, June 1, 2017:  

Map of northern Alaska showing location of , A...

Map of northern Alaska showing location of , ANWR-1002 area, and the National Petroleum Reserve-Alaska (NPRA).

Following a six-day trip to northern Alaska, Trump’s Interior Secretary Ryan Zinke signed an order on Wednesday in Anchorage that reverses a 2013 Obama administration executive order. That 2013 order removed half of the immense National Petroleum Reserve-Alaska (NPRA) on Alaska’s North Slope from consideration for energy development. Said Zinke:

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With Nod to Sovereignty, Trump Dumps UN “Climate” Regime

This article appeared online at TheNewAmerican.com on Thursday, June 1, 2017. It was written by Alex Newman, a colleague of mine, and is reprinted here with his permission.  

After months of keeping the world in suspense about his intentions, President Donald Trump formally announced that the United States would be withdrawing from the United Nations “Paris Agreement” on alleged man-made global warming. Blasting the non-binding UN scheme as a counterproductive effort to disadvantage America and redistribute U.S. wealth rather than fix the “climate,” Trump portrayed the decision as one that puts “America First.” He also chastised foreign powers and their lobbyists for demanding that the United States continue to handicap its economy under the guise of doing virtually nothing for the climate. The withdrawal, Trump said, represents the “re-assertion of America’s sovereignty” and a fulfillment of his efforts to re-invigorate the American economy. It was also the fulfillment of Trump’s oft-repeated pledge to “cancel” the UN scheme.

However, frustrating some of his supporters and climate realists, Trump also indicated that he was open to either re-negotiating the Paris Agreement or creating a similar international “climate” regime that would be more “fair” to the United States. In fact, the president even offered to work with Democrat Party leaders to create a new global-warming scheme — provided

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Trump Pressured to Stay in Paris Climate Agreement

This article appeared online at TheNewAmerican.com on Monday, May 29, 2017:

Candidate Donald Trump repeatedly promised that he would, if elected president, withdraw from the Paris Agreement agreed to under the previous administration in 2015. He said, “We are going to cancel the Paris climate agreement [and] stop all payments of the United States tax dollars to U.N. global warming programs.”

Under that agreement (not a treaty which then-President Obama claimed wouldn’t need Senate ratification), so-called global warming would be limited by slashing carbon dioxide and other emissions from the burning of fossil fuels and concentrating instead on green energy development.

One sign that Trump intends to keep his promise followed the official dispatch from the G7 Summit in Sicily on Friday:

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China’s Surveillance State Now Monitors Foreign Companies, as Well as Citizens

This article appeared online at TheNewAmerican.com on Friday, May 26, 2017:

A Cropped version of President George W. Bush ...

Xi Jinping, no friend of freedom

The Wall Street Journal’s claim that China’s surveillance state, which now records the behaviors of foreign companies operating there, is only intended to “monitor and rate” them falls far short of the communist government’s real intentions. Using sophisticated tracking technology — meters in chimneys monitoring air pollution, recording of excessive energy usage by a company’s meters, and so on — it intends to change the behavior of those companies to keep them in line with state policy and objectives.

China’s State Council — the government’s all-seeing eye — already monitors every citizen’s behavior.

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OPEC to Extend Oil Production Cuts Another Nine Months

This article appeared online at TheNewAmerican.com on Wednesday, May 24, 2017: 

Now that “everyone is on board” with a nine-month extension of last November’s agreement to cut production by OPEC, tomorrow’s meeting of the cartel in Vienna is expected to rubber-stamp that extension. Saudi Arabia’s oil minister, Khalid al-Falih, upon returning from Iraq on Monday, said, “We think we have everybody on board. Everybody I’ve talked to indicated that nine months [is] a wise decision.”

Iraq was the most egregious cheater under the November agreement, first complaining that the production numbers upon which its “participation” was based were too high, and then being very slow in implementing those cuts. The slack was picked up by Saudi Arabia, which cut more than it agreed to.

The overall goal of the cuts is to

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.