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: Fracking

Fitch Knocks Saudi Arabia’s Credit Rating Down Another Notch

This article appeared online at TheNewAmerican.com on Wednesday, March 22, 2017:

Fitch Ratings downgraded Saudi Arabia’s credit rating again on Wednesday, bringing it perilously close to “speculative,” from “investment grade.” It dropped the country’s long-term credit rating from A+ to AA-, but with a “stable” outlook, noting that the reduction was due to the country’s “continued deterioration of public and external balance sheets.”

Fitch sees what both Moody’s and Standard and Poor’s, the other two global credit rating agencies, see: declining oil prices hurting a country that once enjoyed the highest investment grade ratings thanks to high oil prices that not only paid for extravagant welfare programs and subsidies to its citizens but allowed it to accumulate three-quarters of a trillion dollars in foreign reserves — more than ample to ride out any conceivable storm.

The rating agencies have seen that an inconceivable storm arrived in 2014 when

Keep Reading…

OPEC: A Lesson in Why Cartels Fail

This article was published by The McAlvany Intelligence Advisor on Wednesday, March 15, 2017:

OPEC countries

OPEC countries

Every cartel comes together when individual members think they can obtain a greater economic benefit working together than they can alone. Every cartel breaks apart when members think they can do better alone. If a cartel is sanctioned by a government, it becomes a monopoly.

Since 1960, OPEC has largely stayed together with the collusion of governments and Big Oil interests around the world. But the fracking revolution, operating in the free market, is blowing up the model. Specifically,

Keep Reading…

Crude Oil Shortage in Three Years?

This article appeared online at TheNewAmerican.com on Tuesday, March 7, 2017:

Worldwide demand for crude oil will exceed 100 million barrels per day (mbd) in two years, and exceed global supplies in three, according to the Paris-based intergovernmental group International Energy Agency (IEA). In its latest five-year forecast, Oil 2017, the agency says that demand growth will come primarily from developing countries such as India, while demand growth elsewhere, such as the United States, will be tepid at best. The only way the coming shortage can be overcome, said Dr. Fatih Birol, IEA’s executive director, is for massive new investments in exploration, discovery, and production to be made immediately:

Keep Reading…

Interior Secretary Repeals Another Obama-era Second Amendment Infringement

This article appeared online at TheNewAmerican.com on Monday, March 6, 2017: 

On his first day in office as Secretary of the Interior, newly minted Secretary Ryan Zinke (shown) issued Secretarial Order 3345 which “revokes Director’s Order 219,” effective immediately.

It’s a small thing, really, but hugely important in confirming that President Trump not only is intent on keeping his campaign promises but is determined to surround himself with people of like mind to help him keep them.

Director’s Order 219 was a parting shot issued by then-President Obama at the very end of his presidency that required the phasing out of the use of lead ammunition for hunting on Federal land. Specifically, it required that the

Keep Reading…

EIA’s Energy Forecast for 2017 Laced With “Uncertainty”

This article appeared online at TheNewAmerican.com on Wednesday, December 14, 2016:  

English: Logo of the U.S. Energy Information A...

The U.S. Energy Information Administration (EIA) was hesitant to forecast where oil and gasoline prices might be in 2017. It said in its Short Term Energy Outlook published last week: “The values of futures and options contracts indicate significant uncertainty in the price outlook.”

Indeed they do. With a 95-percent confidence level, the EIA says the price of oil next year could vary anywhere between

Keep Reading…

Oil and Gas Prices Dropping in Anticipation of Trump Presidency

This article appeared online at TheNewAmerican.com on Monday, November 14, 2016:  

Even as prices for crude oil and natural gas were already declining thanks to continued overproduction by the OPEC cartel, the commitment of millions of dollars in new capital expenditures by major oil companies next year, and the stirring of recovery in the oil patch, last Tuesday’s election added additional impetus to the decline. The price for crude oil for December delivery has dropped more than $2 a barrel since the election, and Evan Kelly, writing at OilPrice.com, thinks it’s going to drop further, perhaps much further.

Reasons abound, mostly around Donald Trump’s promise to breathe new life into an industry hampered by overregulation driven by questionable concerns over global warming.  As Kelly wrote:

Keep Reading…

The Four “Wild Cards” in Trump’s Handful of Advisors

This article was published by The McAlvany Intelligence Advisor on Friday, November 11, 2016:  

English: Logo of The Goldman Sachs Group, Inc....

Nervous conservatives are looking for signs that the “establishment” – i.e., Goldman Sachs, big banks, the Council on Foreign Relations, George Soros, etc. – having been unable to derail Donald Trump’s march to the presidency, is going instead to infiltrate and insinuate its operatives into the new Trump administration. Many of them remember the successful infiltration and subsequent manipulation of the Reagan administration with the naming of establishment insider James Baker as Reagan’s chief of staff.

At the moment there appear to be four “wild cards” out of the dozens Trump has already invited into his inner circle: Steven Mnuchin, Peter Navarro, John Paulson, and Carter Page.

The first and most obvious one is Steven Mnuchin, the head of Dune Capital Management and former director at Goldman Sachs, where he amassed a personal fortune estimated at more than $40 million as head of the firm’s trading desk. A graduate of Yale,

Keep Reading…

Trump Adds to His List of Advisors

This article appeared online at TheNewAmerican.com on Thursday, November 10, 2016:  

English: Deck of cards used in the game piquet

In March, Donald Trump trotted out an early list of foreign-policy advisors on whom he would be relying if he were elected president. In an interview with the Washington Post, Trump said, “I can give you some of the names … Walid Phares, who you probably know, PhD, adviser to the House of Representatives Caucus, and counter-terrorism expert; Carter Page, PhD; George Papadopoulos — he’s an energy and oil consultant, excellent guy; the Honorable Joseph Schmitz, [former] inspector general at the Department of Defense; [retired] Gen. Keith Kellogg; and I have quite a few more.”

In August he added “quite a few more” and then, the day after he was elected, Trump added still more, this time in the economic policy area.

There are at least four “wild cards” in the deck that Trump is building,

Keep Reading…

Why Voting for Donald Trump Is a Morally Good Choice

By Wayne Gruden

Some of my Christian friends tell me they can’t in good conscience vote for Donald Trump because, when faced with a choice between “the lesser of two evils,” the morally right thing is to choose neither one. They recommend voting for a third-party or write-in candidate.

As a professor who has taught Christian ethics for 39 years, I think their analysis is incorrect.

Keep Reading…

Comeuppance in the Oil Patch

This article was published by The McAlvany Intelligence Advisor on Wednesday, August 3, 2016:  

Looking down from Heaven, George Mitchell must be pleased with what’s going on below: oil inventories are growing to the point where offshore tankers and railroad tank cars are having to be used for storage, oil and gas prices are dropping along with the costs of all the other 6,000 consumer products made from petroleum, rig counts are increasing, production costs are dropping, and, best of all, OPEC’s influence is waning daily.

The Economist called Mitchell the father of fracking in its eulogy following his death in July, 2013. They referred to him as

Keep Reading…

If Chosen as Hillary’s VP, Tim Kaine Would Be Invisible

This article appeared online at TheNewAmerican.com on Friday, July 22, 2016:  

Governor Tim Kaine of Virginia.

As chances continue to improve that Hillary Clinton will name Virginia Democrat Senator Tim Kaine (above) as her vice-presidential running mate later this afternoon, a closer look at the affable, non-controversial socialist reveals a man not likely to interfere with the Clinton presidency if she wins in November.

He has all the credentials of a socialist and all the charm that is sorely lacking in his would-be running mate.

Keep Reading…

Federal Judge: BLM Rules on Fracking Are Illegal

This article appeared online at TheNewAmerican.com on Monday, June 27, 2016:

English: Bureau of Land Management logo

An Obama-appointed federal judge ruled last Tuesday that the Interior Department and its agency the Bureau of Land Management overreached its authority in issuing rules on fracking. He declared: “Congress has not delegated to the Department of the Interior the authority to regulate hydraulic fracturing [fracking]. [Its] effort to do so through the Fracking Rule is in excess of its statutory authority and contrary to law.”

When the Fracking Rule was originally published by the BLM in March 2015, the Independent Petroleum Association of America immediately filed suit, which was joined by the states of Wyoming, Colorado, North Dakota, and Utah. Federal Judge Scott Skavdahl, the same judge who ruled on Tuesday, placed a temporary injunction on implementing that rule until he had time to review it in detail. That temporary injunction would have expired last Friday.

Skavdahl didn’t consider the Fracking Rule itself, which would have allowed government bureaucrats to swam all over some 100,000 oil and gas wells on federal lands while checking for water and chemical leaks; inspecting piping and tubing; and making sure all the new paperwork was in order, which includes listing publicly the various chemicals used in the fracking process. Instead he got to the core issue: Did the Interior Department and its BLM have authority to issue such regulations in the first place?

He said no:

Keep Reading…

Federal Judge: BLM Tries to Pull an “End Run” Around Congressional Limitations

This article was published by The McAlvany Intelligence Advisor on Monday, June 27, 2016:

English: Oil well An oil rig used for training.

Scott W. Skavdahl was nominated as judge of the United States District Court for the District of Wyoming by President Obama in February, 2011. The Senate voted 96-0 to confirm him in November. If Obama thought he had a friend he could rely on he was sadly mistaken. On Tuesday, June 21, Skavdahl came down hard on the BLM, accusing it of deliberately and intentionally ignoring Congressional intent when it prohibited the EPA from regulating fracking back in 2005:

Keep Reading…

$60 Oil “Very Possible” Says Saudi Arabia’s New Oil Minister

This article was published by TheNewAmerican.com on Friday, June 3, 2016:  

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

On November 17, gas prices had dropped to $1.99 in Bakersfield, California, due to falling Oil prices

Following the OPEC meeting on Thursday, Saudi Arabia’s new oil minister, Khalid Al Falin, told CNN that $60 a barrel oil is “very possible” by the end of the year, with even higher prices expected next year. He said that supply and demand in the oil market have “converged” without the OPEC cartel needing to curtail supply. In short, OPEC is celebrating its strategy of letting the lowest oil prices seen in years weed out the weak and marginal players in the United States, resulting in cuts in production. As Qatar’s oil minister exulted at a press conference in Vienna following the meeting, “The worst is over for oil.”

Translation:

Keep Reading…

World’s Largest Coal Company Could Disappear

This article appeared online at TheNewAmerican.com on Wednesday, March 16, 2016:  

On Wednesday, Peabody Energy Company, the world’s largest private-sector coal company, announced that it was going to miss making $70 million in interest payments simply because it didn’t have the money. This was not just a temporary lack of cash flow, but indicative of existential problems:

Keep Reading…

Aubrey McClendon Was the Original American Entrepreneur

This article was published by The McAlvany Intelligence Advisor on Friday, March 4, 2016:  

News of Aubrey McClendon’s death in a fiery car crash on Tuesday morning in Oklahoma City staggered those who knew him. Chesapeake Energy, founded by McClendon and a partner in 1989, said “Chesapeake is deeply saddened by the news that we have heard today, and our thoughts and prayers are with the McClendon family during this difficult time.” His new company, American Energy Partners, founded the day after he was fired from Chesapeake in 2013, offered this:

Keep Reading…

Aubrey McClendon, “Reckless” Energy Pioneer, Dies in Fiery Car Crash

This article appeared online at TheNewAmerican.com on Thursday, March 3, 2016:  

Aubrey McClendon, the co-founder of Chesapeake Energy, died Tuesday morning in a fiery car crash when his Chevy Tahoe hit a concrete highway bridge support “at a high rate of speed,” according to a spokesman for the Oklahoma City policy department. The spokesman added: “The vehicle was immediately engulfed in flames. It appears that speed was most definitely a factor in the fatality.”

Many expressed publicly their condolences but none more eloquently than T. Boone Pickens, a friend of McClendon’s for 25 years:

Keep Reading…

Straight-line Thinking in a Curvilinear World: Natural Gas and Aubrey McClendon

This article was published by The McAlvany Intelligence Advisor on Wednesday, February 10, 2016:  

Chesapeake Energy Capital Classic

It’s now apparent that Aubrey McClendon didn’t see the bumper sticker that appeared on cars following the last energy crash: “Please, God, give me one more boom and I promise not to screw it up.”

McClendon, along with a partner, $50,000, and 10 employees, started Chesapeake Energy in 1989. The company grew exponentially as the fracking revolution took off and up until recently the company employed 5,500 people and had annual revenues of $11 billion. Its stock (CHK) soared,

Keep Reading…

Chesapeake Energy Claims It’s NOT Declaring Bankruptcy

This article appeared online at TheNewAmerican.com on Tuesday, February 9, 2016:  

On Monday, at 11:18 a.m., the second-largest natural gas company in the country issued this terse statement:

Kirkland & Ellis LLP has served as one of Chesapeake’s counsel since 2010 and continues to advise the company as it seeks to further strengthen its balance sheet following its recent debt exchange. Chesapeake currently has no plans to pursue bankruptcy and is aggressively seeking to maximize value for all shareholders.

Ominously, when Timothy Puko of the Wall Street Journal asked for clarification, he wrote “A Chesapeake spokesman declined to elaborate further.”

The company has been in survival mode since

Keep Reading…

Energy Expert Sticks With Prediction of $18 Oil

This article appeared online at TheNewAmerican.com on Monday, February 1, 2016:  

The day after Saudi Arabia executed Shiite cleric Nimr al-Nimr, John Kildruff, the founder of energy trading company Again Capital, appeared on CNBC’s Squawk Box to say that oil prices would likely decline as tension between Iran’s Shiite majority and Saudi Arabia’s Sunni majority escalated. Nimr al-Nimr was a popular voice for the Shiite minority in Saudi Arabia, and his execution sparked the ransacking of the Saudi embassy in Tehran by Shiites. The two states follow different strands of Islam, and al-Nimr’s execution added to the gulf between the two members of the OPEC cartel. Said Kildruff:

Keep Reading…

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