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Tuesday, April 24, 2012

The World's First Undersea Mine Is Opening Off The Coast Of Papua New Guinea

Located about 50 kilometers (31 miles) north of New Britain's port city of Rabaul, Solwara 1 is a deposit of what is known as "sea-floor massive sulphides" -- rocks containing high grades of copper, gold, zinc and silver.
The deposits form at hydrothermal vents, which spew the minerals from fissures in the Earth's crust, and the Manus basin is a lucrative site because there are active seams at relatively shallow depths.
Remote-controlled robots will drill for sulphide deposits on the rocky ocean bed 1,600 meters (5,250 feet) below sea level and a separate "collection" machine will pump the material to a support vessel at the surface.


Read more: http://www.businessinsider.com/under-water-sea-mine-nautilus-bhina-bismarck-sea-2012-4#ixzz1szH435sO

Tap the Strategic Petroleum Reserve

Mark LaRochelle

The Debunker: Why tapping the Strategic Petroleum Reserve is a bad idea

by Mark LaRochelle
04/24/2012

 
Gas prices have more than doubled under President Obama, a feat unmatched even by Jimmy Carter. Understandably worried about the upcoming election, some congressional Democrats and at least one former administration official have been floating the idea that the president should release oil from the U.S. Strategic Petroleum Reserve as a way to lower prices.
Bunk.
Any price reduction caused by a withdrawal of oil from the reserve will be temporary. According to the U.S. Energy Information Agency, U.S. oil consumption was about 18.8 million barrels per day in 2009, the last year for which figures are available. The reserve inventory currently stands at just under 700 million barrels, representing just 39 days of U.S. consumption.
Last year, Obama released 30 million barrels of oil from the Strategic Petroleum Reserve—the largest withdrawal ever—as part of a 60 million barrel release coordinated by the International Energy Agency. This massive release, in response to supply disruptions in Libya and other countries during the “Arab Spring” revolts, flooded the market last summer, but by January prices were on their way back up again.
Never before has a president released oil from the Strategic Petroleum Reserve without having replaced previous withdrawals. But, already carrying a $1.3 trillion deficit, Obama has not been able to replace last year’s drawdown. To withdraw from the reserve two years in a row would be unprecedented; moreover, further reduction of our strategic reserve would increase the risk of a serious shortage in the event of a real emergency.
This is far from the only problem with using the Strategic Petroleum Reserve as a campaign tool. According to the law, withdrawals from the reserve “may not be made unless … required by a severe energy supply interruption.”
Only three times has the U.S. tapped the Strategic Petroleum Reserve: during Desert Storm in 1990-91, when the U.S. embargoed Iraqi oil; 2005 when refineries in the Gulf were shut down by Hurricane Katrina; and during last year’s “Arab Spring,” mentioned above.
When his predecessor, George W. Bush, released oil in the wake
of Katrina, Obama objected, saying that “we shouldn’t be tapping the reserve to provide a small, short-term decrease in gas prices.” He added that “the strategic oil reserve … has to be reserved for a genuine emergency.”
No such emergency exists today. Misusing the Strategic Petroleum Reserve in this way would only kick the problem down the road, until after the election. Abusing the law in this way would only compound the perception that President Obama is toying with our energy security for partisan political gain.
There is a real solution: If President Obama wants a long-term reduction in gas prices, rather than an election-year gimmick, he must consider not further depleting our reserves, but increasing output.
As mentioned in a previous column, by rescinding leases and imposing a moratorium on offshore drilling, the Obama administration reduced oil production on federal lands in 2011. According to EIA, crude oil production on federal lands declined by about 600 trillion btu, from 4.3 to 3.7 quadrillion btu. At 5.8 million btu per barrel, that works out to a loss of more than 100 million barrels—more than three times the amount of oil released in last year’s record SPR drawdown.
By restoring onshore and offshore leases shut down by the Obama administration, the president can increase the supply of oil on the market—not just temporarily, but long-term—without further depleting our strategic reserves, and at no cost to taxpayers.

Friday, April 20, 2012

Chesapeake Loans to CEO?

CEO Turns Chesapeake Energy into an ATM Machine#page1#page1: CEO Turns Chesapeake Energy into an ATM Machine
Is it OK for the company to loan money to the CEO so he can participate in the wells drilled by the company?

Friday, April 13, 2012

U.S. Obituary


In 1887 Alexander Tyler, a Scottish history professor at the University of Edinburgh had this to say about the fall of the Athenian Republic some 2,000 years prior:


         "A democracy is always temporary in nature; it simply cannot exist as a permanent form of government.
         A democracy will continue to exist up until the time that voters discover that they can
 vote themselves generous gifts from the public treasury.
          From that moment on, the majority always votes for the
 candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse over loose fiscal policy, (which is) always followed by a dictatorship."

         "The average age of the world's greatest civilizations from the beginning of history, ha
s been about 200 years.
         During those 200 years, these nations always progressed through the following sequence:

          From bondage to spiritual faith;
          From spiritual faith to great courage;
          From courage to liberty;
          From liberty to abundance;
          From abundance to complacency;
          From complacency to apathy;
          From apathy to dependence;
       
  From dependence back into bondage."
       

 The Obituary follows:


         Born 1776, Died 2012
         It doesn't hurt to read this several times.

         Professor Joseph Olson of Hamline University School of Law in
         St. Paul , Minnesota ,
 points out some interesting facts concerning the last Presidential election:

         Number of States won by: Obama: 19           McCain: 29
         Square miles of land won by: Obama: 580,000          McCain: 2,427,000
         Population of counties won by: Obama: 127 million    McCain: 143 million
.


         Murder rate per 100,000 residents in counties won by: Obama:13.2          McCain: 2.1

         Professor Olson adds: "In aggregate, the map of the territory McCain won was mostly the land owned

by the taxpaying citizens of the country.

         Obama territory mostly encompassed those citizens living in low
 income tenements and living off various forms of government welfare..."

In 2008 Obama beat McCain in the Electoral College by 365 votes to 173.

         Olson believes the United States is now somewhere between the "complacency and apathy" phase of Professor Tyler's definition of democracy, with some forty percent of the nation's population already
         having reached
 the "governmental dependency" phase.