Archive for July, 2011

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Iraq security situation crumbling; Libya operation failing

July 30, 2011

via BBC:

A top US adviser on Iraq has accused the US military of glossing over an upsurge in violence, just months before its troops are due to be withdrawn.

Iraq is more dangerous now than a year ago, said a report issued by the US Special Inspector General for Iraq Reconstruction, Stuart W Bowen Junior.

He said the killing of US soldiers and senior Iraqi figures, had risen, along with attacks in Baghdad .

The report contradicts usually upbeat assessments from the US military.

It comes as Washington is preparing to withdraw its remaining 47,000 troops from Iraq by the end of the year, despite fears that the Iraqi security forces might not be ready to take over fully.

“Iraq remains an extraordinarily dangerous place to work,” Mr Bowen concluded in his quarterly report to Congress. “It is less safe, in my judgment, than 12 months ago.”

The report cited the deaths of 15 US soldiers in June – the bloodiest month for the American military in two years – but also said more Iraqi officials had been assassinated in the past few months than in any other recent period.

I though as recently as a month ago that Barack Obama would be able to campaign in 2012 as the president who got Bin Laden, who deposed Gaddafi, and who presided over the last act of a minor victory in Iraq.   Today, it looks like only the first is a sure thing.  The Libya operation, which should have been a certain victory of grinding attrition, is on the cusp of failure  (see also here, here, here and here)- an unbelievable outcome that seems to require almost willful mismanagement.    Suddenly, the Obama 2012 campaign looks to running on the rails of debt and defeat.   Given the structural advantage of the Democrats in the Electoral College, the powers of incumbency, and the very large Obama war chest, I had long assumed that re-election was inevitable.  As inevitable as a victory in Libya, perhaps?  But there is nothing so certain that it cannot be lost by an incompetent executive.

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Jobs and Economic Growth

July 29, 2011

Walter Russell Mead has a typically excellent blog post on employment patterns in the 21st century.  Short version:  Lost industrial jobs are not coming back, and even in the rosiest scenarios will stay flat in the near and middle terms.  Growth is to be found in service jobs, and that doesn’t necessarily mean dead-end retail work.  There are a number of people in my personal social circle who make very good, middle class to upper middle class livings offering services:  Masseuses, yoga instructors, personal coaches, landscape architects, etc.

Mead recommends Michael Spence’s essay in the latest issue of Foreign Affairs.  I tweeted a recommendation to Spence earlier this month, but I did not blog about it.  I recommend it now, along with this recent Chatham House research report which serves as an excellent companion piece to both Mead and Spence.  I am going to excerpt a chart from the Chatham House paper.  The first shows why service jobs are growing – because American consumption is exploding, while consumption of durable goods has been relatively flat for decades while consumption of non-durable goods has been declining.

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Top Turkish Military Leaders in Mass Resignation

July 29, 2011

breaking news, not much detail . . . the Chief of Staff and the individual commanders of the Land, Sea and Air forces have all quit.

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The Geopolitical Impact of Shale Gas

July 29, 2011

Major study out this month from the Baker Institute on Shale Gas and US National Security.  The report is very detailed and anyone interested in energy and geopolitics (which should be anyone who reads EnerGeoPolitics) should read the whole thing.  In summary, the report identifies the following major impacts of the US shale bonanza:

  • Eliminates the US need for gas importation
  • Reduces pressure on Middle East & Persian Gulf reserves
  • Reduces reliance on Russian, Iranian and Venezualan gas and prevents their formation of a GASPEC (gas OPEC) and limits the use of gas as an energy weapon
  • Will reduce global gas prices
  • As a clean(er) burning fuel, aids in meeting greenhouse gas reduction goals
  • Reduces the possibility of Sino-American conflict over gas supplies
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Territorial disputes in the East China Sea

July 29, 2011

China and Japan have been alternately seeking cooperation and then butting heads over territorial claims in the East China Sea and, in particular, over presumed hydrocarbon resources in the region.  James Manicom details the disputes, their history and some alternate ways forward that could avoid conflict.

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Utilities rebel against high wind power costs

July 29, 2011

via Energy Central:  Construction costs for wind projects in Kansas and Oklahoma have blown past their initial estimates – over $100 million more for a Kansas project and over $200M more for an Oklahoma project.  Individual utilities design their own projects, and the costs are then spread amongst all the members of the utility pool.  These leads some utilities to bear the costs for projects from which they will not benefit.

A broader philosophical dispute centers on whether those utilities that see no benefit from the lines should have to pay for them.  The Southwest Power Pool adopted in April 2010 a new formula that assesses the cost of building the pool’s largest lines, so-called “highway” lines, equally across all pool members because they can transfer energy between utilities.  The net effect is that Kansas ratepayers will pay about 20 percent of the cost of all approved projects, including those in Oklahoma, Nebraska and Missouri, according to Harrison.  If Kansas ratepayers had to bear the entire cost of the “V Plan,” it might have scuttled it entirely — and, with it, the prospect of Kansas wind power.

But Omaha Public Power District was dismayed last year when, shortly after it joined the power pool, the power pool adopted the policy that allocates 100 percent of the cost for major lines across everyone in pool — and even less happy to be handed a big bill for the projects.  In April, its board of directors said that it is considering withdrawing from the power pool over the cost allocation issue.  “We’ll be required to pay a considerable amount of money for little benefit,” said utility spokesman Jeff Hanson.  He said the board is still studying the issue but must make a decision by Aug. 25.

Empire Electric and Lincoln Electric System have also expressed unhappiness.

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Japan comes storming back

July 29, 2011

Via Truth About Cars:

After being devastated by the unprecedented triple disaster in March, Japanese automakers have shown terrific resilience and are nearly back to pre-disaster production and export levels mere months after the earthquake/tsunami/meltdown triple threat.  Congrats to our courageous and persistent allies.

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China makes technical breakthrough on low density wind power production

July 28, 2011

From Energy Central:

The wind turbine adopts large vertical-axis double-layer asymmetric airfoil H-shape structure and is equipped with high-strength composite blades and electromagnetic brake. Particularly, the 750kW vertical-axis wind turbine features lower install and maintenance cost and lower unit generation cost, which has been in grid-connected operation in Riyue Mountain wind farm and is ready for industrialization production.

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Japan struggles to find disposal site for Fukushima fuel rods

July 28, 2011

Decommissioning of the stricken plant hits a serious snag, reports Nuclear Energy Insider, as no nation will accept the damaged fuel rods (Japan has no secure storage site of its own).

I think the US should accept the rods – Japan is a crucial ally in the Asia/Pacific region, and we owe them a little nuclear quid pro quo, don’t we?  I know the domestic politics of it are not so easy, but it is the right thing to do.

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New EV engine uses no rare earth elements

July 28, 2011

from Popular Science . . . it has a lot of weaknesses and is not ready for production yet, but this would be an important breakthrough

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Prospects for Iraq meeting oil production targets fading

July 28, 2011

Analysis from Amy Jaffe at the Baker Institute

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A brief post on the debt crisis

July 27, 2011

I am not a financial sophisticate, and this sort of thing is not the usual topic of this blog, but I have been thinking off and on about the debt crisis while sipping Mai Tais the last couple of weeks.

First of all, it is clear to me that this is not a true financial crisis.  The United States of America is not anywhere close to being insolvent.  This is a political crisis manufactured by both sides, each seeing an opportunity to solidify their political fortunes in the upcoming election season (that said, I do believe the freshman Tea Party Republicans are sincere in their position – I do not believe there is anything sincere in the positions of the old line Republicans, nor the Rockefeller Republican wing of the Democratic Party represented by President Obama).

Now, given that the United States is not insolvent, it seems to me that a technical default and a ratings downgrade would represent an outstanding opportunity for the individual investor.   A downgrade means higher yields on US bills and bonds, but the unquestioned solvency of the nation means that the security behind them remains the same.  I understand that the big institutional investors have different interests – they are more concerned with capital appreciation than with yields – but this represents a tremendous opportunity for Main Street investors.

As an aside, I am also fascinated to see the latest evolution of the Republican Party.  All of my life, the GOP has slowly been becoming less and less  country club and Wall Street and more and more populist and rural.  In the present episode, we see the populist wing really flexing its muscles and giving the finger to the Wall Street wing, which has traditionally been one of the most important power centers of the GOP.  The times, they are a-changing.

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EGP on Vacation

July 13, 2011

back in two weeks

thanks to all visitors for their support

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PLA General Claims Chinese “Carrier Killer” Missile Not Operational

July 12, 2011

However, as Andrew Erickson warns:

” . . . it would be a mistake to assume that China’s DF-21D ASBM lacks what the U.S. military would consider to be lower-end “operational” capabilities just because it apparently does not yet meet General Chen’s definition.  . . . Definitional issues aside, the bottom line is that General Chen would likely not be mentioning China’s ASBM in public if the PLA were not confident that it was maturing effectively and already had reached the necessary development level to begin to credibly shape regional strategic thinking in Beijing’s favor.”

Also, neither we, the lay public, nor the Chinese military strategists can know for sure what  operational status of  the US Navy’s most advanced anti-ASBM technology has achieved.   We do know that the Navy has been working the ASBM problem for half a century and has deployed successive upgraded classes of Aegis ships for several decades.

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GM EN-V: a glimpse at sad, limited future

July 12, 2011

“General Motors Shows Vision of Urban Mobility” writes John Madslien at BBCNews, describing the unveiling of GM’s Segway-derived concept car that many hope to be the future of urban commuting.

EN-V stands for Electronic Networked Vehicle.  The car is supposedly “smart” in that it communicates with other “smart” vehicles in its vicinity and uses other sensors that allows it to avoid crashes (which, the engineers assure us, is why it can be so flimsily constructed).  The EN-V has a top speed of 25 mph and a range of 25 miles per charge.

25 miles at 25 mph is not mobility.

If this is the future of personal transportation, then it is a bleak, dystopian future.  Remember, from the days of the first European settlers of the New World – and even going back to those Asiatic settlers who braved the Bering Land Bridge – the entire history of the United States has been one of freedom of transit.  One of the primary themes of this blog is that Mobility is Freedom, and any scheme hatched by self appointed technocrats that limits mobility should be viewed with caution, if not met with outright resistance.

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Globalization and Employment

July 11, 2011

Michael Spence’s essay at Foreign Affairs does not fall within the usual domain of this blog (indeed, by some accounts, globalization is the opposite, or the negation, of geopolitics) but it is a must-read.

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EIA estimates at least 750 trillion cubic feet of recoverable shale gas

July 11, 2011

In a review of shale gas and shale oil resources in the US, the Energy Information Agency has concluded that the total recoverable shale gas resource is 750 trillion cubic feet – and, if anything, that number is likely to rise with better technology and recovery processes.  US consumption is currently around 21 TCF per year, and is projected to climb slowly to 26 TCF by 2035.  That means there is roughly 3 centuries worth of natural gas embedded in our domestic shale.  If we work to maximize this bonanza, of course, then consumption should increase much more than the current projections, as gas can substitute for both coal and oil consumption.  Nonetheless, this report emphasizes the enormous vastness of this energy supply.  There is a fortune beneath our feet.  If we find the political will to maximize it, the money that would flow into both national and state treasuries via leases, royalties and taxes (both corporate and payroll from the thousands of new jobs that would be created) would go a long way to solving our financial woes.

Natgas fracking promises a relief to both our energy and our fiscal woes.   Below is a map of the various states that stand to profit from natural gas.  It is time for a system of regional political alliances to bypass the old Republican/Democratic political divide and supercharge the natgas boom.

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Los Angeles doubles down on Solar Incentive Program

July 11, 2011

The Los Angeles Department of Water and Power (LADWP) has re-launched its Solar Incentive Program and doubled its size.  They have also announced plans to review proposals that will allow property owners to sell excess power into the city grid.   I believe this will be the “killer app” of the solar energy movement.  Large, centralized projects require too much land, are too expensive and are too distant from consuming cities.  Distributed, local power is a better approach.  Let a million energy entrepreneurs bloom!

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The end is near for Gaddafi

July 8, 2011

Austin Bay notes that the screws are getting tighter and tighter, day by day.

I have noted before that the fall of the Libyan dictator was always inevitable; the calculus of finances and firepower was inexorable.  It was foolish to predict the outcome would take “days, not weeks,” – a popular revolt in the Tripolitan bastion was unlikely – but the slow asphyxiation of the regime was a certainty.

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Accidental large-scale geoengineering?

July 8, 2011

A team of researchers has posited that one reason for the decline in global temperatures over the last decade is the massive amount of sulfur pumped into the atmosphere by China’s energy-hungry ascent to modernity.  The study itself is behind a paywall, but FuturePundit has a summary and some comments here.  As FP points out, if correct, this study lends support to Paul Crutzen’s proposal to inject sulfur into the atmosphere to increase albedo and reduce warming.

It should be noted that EnerGeoPolitics is a firm believer in the use of geo-engineering to mitigate climate change.

It might also be useful to not that study co-author Michael L. Mann  is not Michael E. Mann of hockey stick fame.

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