BEIJING, CHINA – NOVEMBER 09: (CHINA MAINLAND OUT)China President Xi Jinping and wife Peng Liyuan welcome US President Donald Trump and wife Melania come to China for state visit on 09th November, 2017 in Beijing, China.(Photo by TPG/Getty Images)
China will stay the largest incremental natural gas user for as far as we model. To help clear hazy skies and cut CO2 emissions, China must expand the role of cleaner gas in its energy demand portfolio, now at just 6-7% of total supply, versus nearly 30% for the richest economies. Last year alone, China’s gas demand boomed by over 15%, with imports rising by 30%. China just passed Japan to become the largest natural gas importer in the world, although Japan still imports more than twice as much liquefied natural gas (LNG). Key arteries bringing in foreign supplies, such as the China-Myanmar pipeline, however, often sees utilization rates of just 50-60%, due to numerous economical, political, technological, and weather problems.
Data source: EIA
China’s imports of natural gas have been surging.
To be sure, many of China’s LNG sources have issues that open the door for U.S. LNG. For example, Australia has had major domestic gas shortages, Qatar has had an LNG production moratorium and surging domestic demand, and Indonesia needs to keep more of its gas to support a very energy-deprived poor nation. Indeed, it’s quite telling that China’s retaliatory measures against possible U.S tariffs on its goods will NOT include LNG: leadership knows full well the unique value that U.S. LNG brings to the table. Our sales have very flexible contracts (having no rigid destination clauses that restrict resales), short-term contracts, and prices not linked to oil but based on the transparent fundamentals of gas supply and demand. Started in 2016, U.S. LNG has had 60% of its LNG sold on the spot market. Most other suppliers will still need to use less convenient long-term deals to satisfy lenders and fund high cost projects. And we know that we will continue to have plenty of gas to export. In the decades ahead, for every 100 units that U.S. gas demand increases, U.S. gas production will increase 175 units, a 75% surplus for us to export. By 2020, we could control 20-25% of global LNG supply, up from just 8% now. “U.S. Liquefied Natural Gas To China Is A Game-Changer,” with China ranked third in 2017 taking in 15% of U.S. LNG exports.
Data source: IEA
China gets the great majority of its LNG from Australia and Qatar.
(THIS ARTICLE IS COURTESY OF THE SAUDI NEWS AGENCY ASHARQ AL-AWSAT)
Russia, Saudi Arabia Increased Output to Clamp Down Shale Oil Profitability
Friday, 1 June, 2018 – 08:00
A flag with the Organization of the Petroleum Exporting Countries (OPEC) logo is seen during a meeting of OPEC and non-OPEC producing countries in Vienna, Austria September 22, 2017. REUTERS/Leonhard Foeger/File Photo
Kuwait – Wael Mehdi
At the time when Russia and other OPEC producers are in quest to study the increase of product during the second half of this year, this may lead to an imminent drop in oil prices and may clamp down the profitability of shale oil production regions in the US.
Bloomberg New Energy Finance analyzed in a report, published on May 30, the cost of shale oil output and the par value required for the barrel in one of the biggest basins in the US.
The report found out that the cost and par value vary from one region to another, but Permian Basin in Texas remains the lowest-cost basin on the level of the US, followed by Eagle Ford Basin in Texas.
According to the report, more than half of the counties where shale oil is produced are profitable with the current oil prices of $75 – but this doesn’t mean that they are not facing financial pressures with an expected drop in oil prices in the coming period.
This report shows the financial condition of the shale oil, in which companies that produce it have accomplished savings in costs and a high operating efficiency, since the drop in oil prices in 2014.
Al Rajhi Capital Head of Research Mazen al-Sudairi said that it is remarkable that the barrel par value in regions such as Permian is rising – and this is because of the limited infrastructure and the rise of operational expenditures.
Sudairi added that Permian that remained the most competitive region in regards of cost doesn’t contain sufficient pipes in the current time. For this, dependence on trucks to transport oil or materials used in Hydraulic breakdown of producing wells has risen the cost hugely.
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(COMMENTARY: I WAS A CROSS COUNTRY TRUCK DRIVER HERE IN THE U.S. FROM 1981-2013. THIS INFORMATION THAT THIS ARTICLE IS POINTING OUT THAT IS GOING ON IN BRAZIL IS EXACTLY WHAT IS AND HAS BEEN GOING ON HERE IN THE STATES FOR AT LEAST 20 YEARS NOW. EVERYTHING IS ABOUT THE FINANCIAL INTEREST OF THE COMPANIES AND THE IGNORANT POLITICIANS AT EVERY LEVEL OF GOVERNMENTS FROM CITIES, COUNTIES, STATES AND FEDERAL ALWAYS COMES DOWN HARD ON ‘THE TRUCKERS’ WHOM ARE BEING CRUSHED BY BOTH THE COMPANIES AND BY THE POLICE WHO ARE FOLLOWING THE ORDERS OF THEIR BOSSES, THE POLITICIANS. THE ACTUAL WORKERS, (THE TRUCKERS) ARE LOOKED AT AS NOTHING BUT IGNORANT LOWLIFE DRUGGIES WHO ARE CONSTANTLY LOOKED AT AS 5TH RATE TRASH. WITHOUT GOOD ROADS, GOOD RAILS AND GOOD AVIATION SYSTEMS TO TRANSPORT THE ECONOMIC GOODS OF A NATION, THERE WILL SOON BE NO NATION. HERE IN THE U.S. POLICE AND POLITICIANS WHO DON’T KNOW THE FIRST REAL REALITY OF DOING THIS JOB AND WHO HAVE NEVER EVER DONE THIS JOB KEEP INSISTING ON TELLING THE TRUCKING INDUSTRY HOW THEY WILL BE ALLOWED TO FUNCTION, TOTAL STUPIDITY THROUGH TOTAL EGO’S.)(oldpoet56)
In a country hit by a shutdown that has opened a hole in GDP and dug a deep crater in support of the Temer government, little is known about the large mass of Brazilians who are at the center of this mobilization – the truck driver.
Typically referred to as autonomous, almost a “petty bourgeois” to speak sociologically accurate, the typical trucker is one of the great losers of labor deregulation and the impoverishment of middle-income activities, a long-course process, long before labor reform passed in the last year, which gave the final blow of 70 years of CLT.
“There is a series of evidences of the complete lack of autonomy of these autonomous,” write Vitor Araújo Filgueiras, a professor at the Federal University of Bahia, and José Dari Krein of the Institute of Economics of the University of Campinas, in the article “The root of the truckers strike and the regulation of labor “, available in the electronic mail of the Humanitas Unisinos Institute.
“What exists is a disguised employment relationship,” Professor Dari Krein points out in an interview with 247.
This is not a baseless estimate, but a strong color frame of social regression. Filgueiras and Krein reveal in their text that in 2012 audits of the Ministry of Labor in only 9 companies in the field found a total of 92,654 truck drivers who worked as employees without a formal contract, being hired as self-employed individuals or linked to 20,458 outsourced legal entities . These same audits have identified 472,606 workdays exceeding the 10-hour limit and have not found it difficult to conclude that most of the accidents involving cargo trucks are linked to the fatigue caused by journeys beyond the account.
The table of changes for the worse was not limited to this, however. By expelling employees from their internal framework, carriers have not only got rid of labor rights, social protection and employee retirement. They were also able to shed much of the fuel, tire, and maintenance expenses, transferred to former employees, now as “autonomous” – with whom they were able to negotiate on more than favorable terms for their accounting. In many cases, they were themselves in charge of finding financing for the trucks of the former employees, who thus, in an esdrúxula way, became responsible for the payment and conservation of their instruments of work. From the available data, among the 1.6 million freight vehicles in circulation in the country,
“The main trait of this work, beyond appearances, is the trucker’s subordination to the company, setting a typical clear working relationship,” says Dari Krein. Thus, drivers negotiate deadlines and schedules, under conditions imposed by the contracting company, which sets deadlines, targets, fines and controls each satellite / GPS trip. No longer salaried, they make freight their source of remuneration, which explains their particular commitment in recent days to the reduction of tolls for empty bodies, and especially the war for the reduction of the price of diesel – each price jump, to please the minority shareholders, mostly foreigners, implies a reduction of their earnings.
At this point, the dismissal of rights as workers has transformed the struggle for recognition of employment bonds as the main claim of truck drivers in recent years. They have won victories and defeats in inferior instances in the Labor Court. At the end of 2017, however, the carriers filed a lawsuit with the STF and were victorious thanks to a favorable ruling from Luiz Roberto Barroso.
In this environment, it is not difficult to understand the demonstration of a combativity long dammed, we will combine.
IN EMERGENCY, THE CAPITAL OF SÃO PAULO CAN HAVE A HOLIDAY ON THE SECOND
In a state of emergency, the capital of São Paulo can have a holiday in the second (28) decreed by the mayor Bruno Covas; City Hall’s Crisis Management Committee said on Saturday that fuel stocks for essential city services such as mass transit and GCM should last through the second; however, for the garbage collection and funeral services there is only fuel until Sunday night; decision will be made tomorrow
247 with agencies – In a state of emergency since this Friday (25), the capital of São Paulo may have a holiday this Monday (28), decreed by Mayor Bruno Covas (PSDB). The City of São Paulo’s Crisis Management Committee said Saturday that the stock of fuel to maintain most of the city’s essential services, such as public transport and GCM (Municipal Civil Guard), should last until the second. However, for garbage collection and funeral services there is fuel only until Sunday night. This weekend, half the bus fleet is circulating in the city. A new crisis committee meeting will be held on Sunday to discuss the possibility of declaring a holiday on Monday.
Even in the face of a possible end of the standstill this weekend, which does not seem likely on Saturday, the city council estimates in four days the return to normality. “This is not a common situation, it’s not normal, it’s not a minor problem,” Covas told TV Globo. The main concern is that the supply crisis could cause a collapse in the city next week. In the state, schools and universities, such as Unicamp, have already announced the cancellation of classes at least on Monday. The city’s capital may decree a holiday in addition to maintaining the suspension of the municipal carpool, which has already occurred on Thursday and Friday.
The city council has advised the transit agents of the CET not to impose fines on drivers who have been injured in vehicles.
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The situation at the gas stations in Minas Gerais is increasingly critical due to the truck drivers’ standstill. According to a survey carried out by Minaspetro and released on Friday morning, about 93% of the establishments are already depleted because of the strike.
The entity that represents the dealers of fuels in Minas Gerais carried out the survey in 115 positions. 71.3% of them no longer have more than one type of fuel available. Another 21.7% have only one type of product – or alcohol, or gasoline or diesel.
The research also indicates that in about 9.6% of the stations surveyed the remaining fuel will end soon.
The research indicates that the situation is serious in the regions that concentrate the largest number of resales, mainly Belo Horizonte and metropolitan region, South of Minas, Zona da Mata and Triângulo Mineiro.
Approximately 60% of the stations surveyed are supplied by the Gabriel Passos Refinery (Regap), in Betim, which is still blocked by truck drivers and representatives of the Union of Fuel Transporters and Petroleum Derivatives (Sindtanque) since last Tuesday (22) .
Subcommittee Chair Poe, Ranking Member Keating, and members of the subcommittee, thank you for the invitation to testify today about how growing U.S. oil and gas production affects energy security and trade.
The renaissance in U.S. oil and gas production over the past decade has been nothing short of remarkable. Technological advances unlocked new resources and brought about significant changes in global energy markets. However, we must remember that the United States is a major oil and gas consumer as well. Particularly for oil, our energy security depends on a global market with prices set based on global market conditions. Supply disruptions do not only happen abroad—hurricanes and floods have brought about large disruptions in domestic energy supply. Our interconnections with the world are key to our energy security—a source of strength and resilience, rather than weakness.
The new energy abundance
As recently as the mid-2000s, when you heard talk of “peak oil,” that meant peak oil supply—the idea that the world was running out of oil. Today that phrase generally means peak oil demand, as new technology, greater efficiency, and concerns about climate change are beginning to move the transportation sector away from oil as a primary fuel. At the same time, advances in oil and gas extraction technology here in the United States have brought online entirely new sources of supply. The combination of long-lateral horizontal wells and hydraulic fracturing led to oil and gas production from resources that had never been economic before. Today we recognize that the oil age won’t end because the world ran out of oil.
U.S. oil and gas production has grown tremendously over the last decade. The United States became the world’s largest producer of petroleum hydrocarbons in 2013 and has been the world’s largest producer of natural gas since 2009. In crude oil production, the United States is in a dead heat with Russia and Saudi Arabia to lead the world.
The boom in U.S. oil and natural gas production has brought clear economic benefits, improving our balance of trade and industrial competitiveness, especially in certain industries. For example, the United States is now one of the world’s most attractive locations for petrochemical investments, an unthinkable prospect a decade ago.
Even though it is now the among the world’s leading oil producers, the United States still imports about 10 million barrels of oil each day. Thus, the United States is not insulated from the ups and downs of the oil price and its reaction to global events. For example, gasoline prices at the pump today reflect the upcoming re-imposition of sanctions on Iran and Venezuela’s plummeting oil production.
Recent events demonstrate how the age of abundance and growing U.S. production are changing the balance of power in oil markets. Oil prices stayed above $80 per barrel for four years in 2010 to 2014, an exceptional run of high prices. However, expanding supply caught up with high oil prices and they declined rapidly in late 2014, sinking to as low as $30 per barrel by February of 2016.
OPEC maintained steady production through the early years of the price collapse. Some argue that OPEC was trying to push U.S. producers out of business by keeping prices low for an extended time; others believe it was more focused on maintaining market share in a well-supplied market. Either way, U.S. producers focused on efficiency and cost reduction and weathered the low-price storm. U.S. production dipped only slightly in 2016 when prices bottomed out.
OPEC changed its strategy at the end of 2016. In an unprecedented move, OPEC teamed up with Russia and a few other oil producers to cut production in an attempt to raise prices and reduce global oil inventories. This strategy was effective and oil prices have risen over the last year and a half. But the need for OPEC to bring Russia into the fold to increase its leverage demonstrates just how much the world has changed. OPEC and Russia have extended their agreement through the end of 2018, but it remains to be seen how long this partnership will hold.
Although growing U.S. oil production has changed the balance of power in oil markets, the U.S. industry is not structured to use its production toward geopolitical ends. Unlike the national oil companies of OPEC, the U.S. industry is made up of dozens of companies that make individual investment and production decisions based on their own costs, financial positions, and appetites for risk. The OPEC producers can work together to move oil prices, an action that would be illegal for U.S. producers under anti-trust laws. Saudi Arabia also holds significant oil production capacity in reserve to deal with oil supply disruptions, an action that would not make economic sense for a for-profit company.
The shift toward natural gas
Unlike for oil, the United States is a net exporter of natural gas. Our largest natural gas customers are Canada and Mexico, receiving gas through pipelines. Liquefied natural gas, or LNG, is becoming a larger portion of U.S. natural gas exports, reaching 22 percent in 2017. The largest U.S. LNG customers in 2017 included China, South Korea, and Japan in Asia; Mexico and Chile in the Americas; and Spain and Portugal in Europe.
Natural gas trade differs significantly from that for oil. Natural gas is more difficult than oil to transport and store, and for this reason, expensive infrastructure and long-term contracts often tie customers and suppliers together. There is no global natural gas market or price, although growing global LNG supply is beginning to globalize natural gas trade.
In some ways, U.S. natural gas exports can have more geopolitical influence than oil exports. The structure of the U.S. industry is no different—producers make decisions based on profit, not politics—but the nature of natural gas markets, with less fungible supply and the predominance of long-term contracts, makes natural gas trade more inherently political.
Natural gas exports provide clear environmental benefits to our trading partners. Natural gas has the lowest carbon emissions of any fossil fuel and creates much less local air pollution than coal. When used to generate power, natural gas also compliments renewable power sources like wind and solar. Natural gas-fired power can start up quickly and rapidly ramp production up and down in response to changes in wind and solar production, allowing the grid to meet demand at all times. For these reasons, natural gas is becoming a preferred fuel globally, playing into U.S. strength in gas production.
Mexico has become the most important export market for U.S. natural gas, providing benefits on both sides of the border. More than half of 2017 U.S. natural gas exports went to Mexico. We now have a trade surplus with Mexico in energy products—in 2017 the value of energy exports to Mexico was more than twice the value of imports. U.S. natural gas is bringing lower priced and lower carbon electricity for Mexico, along with power system flexibility that allows integration of more renewable power generation.
Additionally, U.S. LNG is one supply source that can reduce Europe’s reliance on pipeline gas from Russia. Russian disputes with Ukraine over gas transport in the late 2000s made Russian gas supply to Europe a matter of great concern. Growing LNG supply from the United States and others gives Europeans options, helping them lessen their dependence on Russian gas while still enjoying the benefits of gas as they strive to reduce the carbon emissions from their power supply. U.S. LNG exports are still in the ramp-up phase and exports to Europe (except for the Iberian Peninsula) are tiny today, but the promise of more supply to come strengthens Europe’s position.
The United States has become an indispensable source of oil and gas supply, but the term “energy dominance” is somewhat misleading. To me, “dominance” implies an ability to move markets, whereas the U.S. energy industry, while strong and increasingly important to global energy security, is not structured to achieve that end or other geopolitical goals. U.S. supply of price-responsive, non-political oil and gas contributes to well-functioning global energy markets, providing benefits to energy consumers everywhere.
 The views expressed in this statement are my own and do not necessarily reflect those of staff members, officers, or trustees of the Brookings Institution.
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Why Is The American Government Committing Treason Against Every American
There are going to be some folks who will be mad at me for insinuating such a thing about our government, some will call me unpatriotic for saying such a thing. Well, honestly, I think that the vast majority of the American People aren’t quite as naive as we were 50 years ago, or even say, one year ago. I know that I am not the wisest human being to ever walk this planet but I have spent most of my 60 plus years trying to pay attention to reality. We all know by now that there are good and bad people in every profession. There are some professions that we all believe or joke about as being dirty whether it be so or not, like door to door magazine salesmen, used car dealers, bankers, insurance salesmen, NSA personnel, politicians, and oil executives. I have tried to always be completely truthful in everything I write on this site, always to the best of my knowledge and ability, and that is what I am going to do in this article.
Treason, yes treason, that is what I said. The first duty of any government is to keep its people safe. If they forsake this most basic vow, they are guilty of treason against their own people and this is what has been going on now for a very long time. Nothing this bad can last forever without horrible consequences and at any moment all of our lives can be changed in a flash. Back in 1980 I worked at a major U.S. oil company headquarters in Houston Texas in the executive protection field, I learned there just how easily major politicians can be bought and paid for with absolutely no regard for the welfare of the country by either the politician or the company. These actions I witnessed and heard sickened me to my core so I quit and moved many states away from that job. Some of the things I heard there would make you mad, sick, or just laugh at some of the pure stupidity and out of touch with reality they could be there in their ivory towers.
For many years I have traveled all over the United States many, many, times. I am going to tell you some of the things I have seen and that I know are absolute truth. When you travel through west Texas and you go through the Midland, Odessa area on interstate 20 you are going through the Permian Basin. This is where the best crude oil in the world is at, it is the oil that the rest of the world’s oil is judged by, this is the land that the Bush family worked, lived, and prospered in. If you look out in the fields on each side of the highway especially if you travel at night you will occasionally see vertical lights out in the fields, these are oil drilling rigs digging for the black gold. Does it make any sense to still be drilling? Most folks would say yes, I think. But now, if you travel west Texas, Oklahoma, California, Wyoming, or North or South Dakota you will see something that might surprise you, at least at a minimum, even in west Texas, half or more of all the pump jacks are turned off and the new holes that get dug are then capped.
Now, do you ask why? Good question, now I am going to start telling you why I think that you and I and everyone in our country are having our safety sold out, it’s all about money and greed folks. I have some friends in these High Plains areas who work in these fields and have been told the same thing goes on up there, wells get dug, then capped. You probably know of this oil pipeline that Canada and some U.S. companies want to lay pipe for from Canada down to the Gulf Coast but the government won’t approve it because environmental organizations don’t want it running through sensitive land areas in places like Nebraska. Here is a thought, I know for a fact that there are oil refineries in states like Wyoming and Montana, why does the oil pipeline have any need to go all the way to the Gulf Coast, is it so the oil companies can export it? We have been told for decades now that we don’t have the oil storage or refining capabilities that are needed. Why not? Create more jobs in these western states, build a lot more storage areas and the needed amount of oil refineries there to handle the new oil we are finding on our own land and if Canada want’s to run this joint pipeline adventure into the States there is plenty of unused government land to build these facilities on. These things should have been done many years ago for the reason of National Security, your security, my security, and the security of all of our families have been at stake for years, but we were then and now still being sold out.
Back as far as the early seventies our people learned that we are not and island unto our selves, that events outside of our borders can badly harm us. With the OPEC oil embargo OPEC countries cut way back on what they would sell us because we dared to back Israel. What has our government done to correct this national security issue? What is our current government doing now to correct this major safety issue? President Obama wouldn’t approve the Canadian pipeline, and he all but killed the cola industry and the nuclear industry is being phased out, plus there are many, many oil fields that the government wouldn’t give drilling permits for. But now, President Trump seems willing to give drilling permits just about anywhere except off the east coast of Florida where he has personal business interests. Yet still, where are the new refineries and storage units for all the oil we are producing and the gas we are producing on our own shores, where are they? I know that oil and gas and coal are not the only forms or energy we use in our country, but they are a huge part of it at this time. The U.S. Department of Energy say’s that in 2012 we imported 40% of the oil we consume at this time, 40% folks. In this country we have seen when we have a 2% down tick in the economy it throws us into a deep recession, at best. Folks, what would happen in this country if say even 30% of that 40% were shut off from us, that would be 12% loss. What would that do to our economy, to everyone’s lives, our jobs, our ability to get to them, also what would the cost of a gallon of gas be then?
If we the people are not the first concern for every one in our government why not? Now I am going to spout a few figures to you that come from the Independent Statistics and Analyst Department of the U.S. Energy Information Administration of the U.S. Department of Energy, from one of their web sites. We (oil companies) are exporting these following items, 1) Crude Oil 2) Crude Oil Products 3) Finished Motor Gasoline 4) Kerosene-Type Jet Fuel 5) Distillate Fuel Oil 6) Residual Fuel Oil 7) Propane/Polypropylene 8) here it just said “oil-oils”. People, why is our government allowing the sale of any of this outside of our own borders? Their own stats say that we are importing 7.4 M.M.B.D. of crude oil while at the same time we are exporting 1.M.M.B.D., people, why is this being allowed. In the “Interest of National Security” these things could be stopped and corrected, why aren’t they? Money, greed?Treason?
There are many real things that could have been done already to cut down on our imports while they were building the refineries and storage facilities that are needed. Any secure nation is not secure unless it is 100% self-sufficient in its energy requirements with large energy stock piles in case of any type of attack on that country. Folks, we are nowhere near being in a safe zone. Another part of this issue is the fact that we are importing energy from countries that hate us and who are supporting militant groups so that they can attack and kill us all. How ignorant is it that you give the people who want nothing more than to kill you the weapons and the bullets to do it with? That’s what we are doing and have been doing for decades now, why is our government past and present trying to get us all killed? Is the answer the same as what I witnessed while working for that major oil company in Houston, is it all about power and greed and to hell with the people, it does seem that way to me.
One other quick issue I want to touch on before I close, again the government could have used the “for national security, or at least, for the good of the country” slogan to force these issues, and they do have the power to do exactly that in time of emergencies . Question is, why wait until you have the emergency before you make any plans or take the needed steps to survive the emergency? One of the things the government could have/should be enforcing is much more stringent MPG requirements for at least the past forty years yet President Trump just this past week canceled the higher MPG requirements. Think how much less fuel imports would be if all new cars sold in America were required to get 40 MPG in town and out, no exceptions, and all Pickups and SUV’s were required to get a minimum of 30 MPG in town and out. Why is it not a forced issue that every new vehicle made or sold in America has to be a Hybrid? These things can be done and should have been forced on the car makers decades ago. Would there have to be changes in the design and size of the units, of course. But think about it, if these laws were in effect now and our units were getting these MPG’s now how much of a savings would all of us have at the pump? Think of all the other places that money could be spent to improve our life styles and at the same time stimulate our economy. I will close now with this one very major issue. Our import export deficit is now over a trillion dollars a year and a huge portion is from imported energy. This policy is stupid and dangerous to every one of us. Our governments policies not only give our enemies the weapons they use to kills us with but in so doing, this export deficit is killing the value of our currency making the things we can buy much more expensive because the dollar is so down graded, and this hurts every one of us. So again, why the heck is our government putting every ones lively hood and lives at such risk? Is it as simple as money and greed, because they couldn’t possibly just be this stupid could they, well, maybe President Trump could, but no, in this case it is all about greed.
As I said earlier in this article, there are good and bad people in every occupation, even politics. When I lived in northern Illinois back about 40 years ago I had a real good Congressman in a man named John Anderson and I was blessed to have had an excellent Congressman when I lived in eastern Tennessee named M.D. Phil Roe. I have had contacts with Congressman Roe a few times and I beg you, if you have a good Congressman or Senator, state of federal, please try to communicate these concerns to them before we either end up with a totally crippled country, or before we’re all dead.
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Many years ago I saw a TV episode of “The Jefferson’s” program where George the main character had died, but 20 years later he got to come back as a ghost so he checked in on his family. The one other part of the program I remember was a little girl coming into the room and she asked her dad for five dollars so that she could get and ice cream and her dad said “only five dollars”? That line was put into the program for the laugh factor yet those words ring with and obvious truth of the deflation of our own dollar. At the time of this program you could get and ice cream for about 75 cents, now days quite a few of the treats cost between $2.75-3.50, the joke is on ourselves. Fake money, that which we strive and die for all of our lives. When your Pepsi cost $5.00 and your burger cost $15.00 what good is a $8.00 per hour job? Twenty years from now when we are maybe making $18.00 to $20.00 per hour and a Pepsi is $15 and a burger is $30 how do people survive the real costs of living?
I have believed for a long time now that Deflation is absolutely required within the worlds most industrialized nations which of course includes us here in the U.S.. I believe that the biggest inflation maker in our nation is generated from the very base level of Government, the local level Politicians. These Politicians are the ones who are always needing more revenue and the local home owner is the venue of which they suck from. About 20 or so odd years ago I heard part of and interview of Tom Jones with a lady commentator, I think it was Ms Walters but I’m not positive of that. Mr Jones spoke of the home that he and his wife had lived in for twenty years, he said he paid one million for it twenty years ago but now this same house is now worth ten millions so says the tax collector. Taxes go up, people have to make more money to pay these taxes or one of many different Government agency’s will take “your property” from you. When the prices of houses keep going up it makes it where the majority of people don’t believe they will ever have and actual house of their own. I believe that one of the necessary steps Our Government should do when they are gathering data on everything that breathes and many that don’t is to get rid of the Out Liars and the liars.
Deflation is and absolute requirement that at some point we as a nation will have to live through. Is the dropping oil costs the trigger that topples the phony houses of the .01% who reap fortunes on the bones of those they have crushed beneath them on their unending desire to always have more? If We The People want a more truthful stat on things like average wages or the value of houses in our area I believe the stats people need to always get rid of the Out liars. I believe we would get a better state of the Nation figures if for example on value of houses if the top 10% and the bottom 10% were taken out of the equation you will get more truthful results. I’m not saying that these people don’t count they do, every one of them count. But we need more truthful numbers if we want to know what the true state of the Union is, we need to get rid of all the obvious Out liars. When the price of a nation’s fuel is dropping it should be a great thing for business and the people of that nation. Instead the stock market is stumbling because of it. When people lose their jobs the value of the company goes up just like with mergers, then their stock value goes up. Things are backwards in our society folks, deflation of the housing and vehicle markets (as examples) are necessary otherwise the world we are leaving our children will be where they can’t afford toilet paper. The cost of absolutely everything must reach a stage where it’s cost quits going up. If I make $100 per hour but my Pepsi cost $50 and my cheese burger is $90 what good is the $100 per hour? This balloon has got to pop at sometime in the future, is it now? The world oil glut is getting harder to hide, is this the fire cracker that pops the balloon?
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Energy Minister Yuval Steinitz speaking at an energy conference in Tel Aviv, February 27, 2018 (Dror Sithakol)
The Energy Ministry forecast Tuesday that within 12 years Israel would be fully reliant on natural gas and alternative fuels for the production of electricity and for transportation.
“We intend to reach a situation in which Israel’s industry will be based on natural gas, and most importantly, transportation in Israel will be based on natural gas or electricity,” Energy Minister Yuval Steinitz said at an energy conference in Tel Aviv. “From 2030 onwards, the State of Israel will create alternatives and will no longer allow the import of cars that run on gasoline and diesel fuel.”
Steinitz said he would be submitting a master plan with this vision to the government.
In 2014, electricity was produced through a fifty-fifty split between coal and natural gas. The aim for 2030 is to alter that to 83% natural gas and 17% renewable energy, with “zero pollutants,” Steinitz said.
Illustrative photo of Israeli natural gas rigs in the Mediterranean Sea, September 2, 2015. (Flash90)
Already this year, the balance of electricity production will be 71% natural gas, 25%-27% coal, and 2% renewable energy, with the economy transitioning to using coal only for emergency and backup purposes by 2030.
“We have abolished the strategy of diversification of fuels,” Steinitz said, noting that Israel had previously believed that this kind of diversification — using coal and natural gas — was essential for energy security. “We realized we can reach energy security even without this diversification.”
“There is a historic opportunity to transform Israel into one of the first Western countries in which energy is produced with zero pollution and harm to the environment,” he said.
Steinitz said that according to OECD data some 2,500 people die in Israel annually because of air pollution. He added that the controversial natural gas legislation passed two years ago has been a “huge success,” having enabled the development of Leviathan, Israel’s largest natural gas field, which is expected to come online next year. The one and a half-year holdup in the development of Leviathan caused by delays in passing the gas regulations cost Israel some $20 billion, he said.
The development of the field allowed Israel to sign its “most significant export deals” with neighboring Egypt and Jordan since the signing of peace accords with these nations, he said.
Earlier this month, the partners in the Tamar and Leviathan offshore natural gas fields said they signed deals to export 64 billion cubic meters of gas to the Egyptian firm Dolphinus over a 10-year period. In September 2016, Jordan struck a deal to buy 8.5 million cubic meters of Israeli gas per day over 15 years, a deal estimated to be worth $10 billion.
“This strengthens the peace axis,” Steinitz said. “It is a geopolitical success that has been made possible because of natural gas.”
Israel, a country with scarce natural resources, discovered offshore natural gas fields that may enable it to achieve energy independence and become an exporter of natural gas. The Tamar gas field was discovered in 2009 and started production in 2013, while the Leviathan field — the largest deep water natural gas field discovered in the world in the past decade — was discovered in 2010 and is expected to start production in 2019.
Steinitz was speaking at a conference organized by the Israel Institute for Energy and Environment that dealt with the potential of and challenges to Israel’s natural gas industry.
Steinitz and other speakers were heckled by a group protesting against the planned Leviathan rig, which they say will be set up just 10 kilometers off the northern shore and will cause pollution and billions of dollars’ worth of environmental damage.
Protesters demonstrating outside an energy conference in Tel Aviv against setting up a gas rig 10 kilometers from Israel’s shores, February 27, 2018 (Shoshanna Solomon/Times of Israel)
“Instead of a proposed rig, the companies should be setting up a floating production storage and offloading facility above the rig, not close to the shore of Dor Beach,” said protest head Yoni Sapir.
In addition, a gas-processing to be set up on land could pollute local water sources, said Eli Budman, a toxicologist who was protesting outside the hotel.
Steinitz dismissed them as “not in my backyard” protesters who were ignorant of the issues. “We will not submit to pressure by anyone. We are convinced we are doing the right things for the future of Israel,” he declared.
An environmental heckler disrupting the speech of Energy Minister Yuval Steinitz at an energy conference in Tel Aviv; 27 Feb. 2018 (Shoshanna Solomon/Times of Israel)
Responding to the demonstrators, Environment Minister Ze’ev Elkin said Israel cannot both cut its consumption of coal and stall development of the natural gas industry. “We can’t go in both directions,” he said.
The ministry was prioritizing the reduction of pollution, he said, and natural gas had to play its part as soon as possible. “Pollution is the number one environmental challenge of Israel,” he said. “The progress of Leviathan is of environmental interest to Israel.”
At the conference Yona Fogel, the CEO of Paz Oil Company Ltd. an oil refiner, said the price of natural gas in Israel as set by the agreement reached by government and the producers of the gas was too high. “There is a market failure here,” he said. Paz’s two plants, in Haifa and Alon Tavor, were ready to receive natural gas but “the gap between implementation and desire” was very high, he said.
Mathios Rigas, CEO of Energean Oil & Gas, a Greek oil and gas explorer that won the license to develop and operate the smaller Karish and Tanin offshore natural gas fields — which are estimated to have reserves of 2 trillion cubic feet (TCF) and are earmarked to supply fuel to Israel and compete with Tamar and Leviathan — said he expects drilling at the fields to start in 2019 and supply of gas to start in the first quarter of 2021. Energean will be investing some $1.6 billion in the development of the fields, he said, and has already raised the funds to manage the project, he said.
Yossi Abu, the CEO of Delek Drilling LP, a unit of Delek Group Ltd., which together with Noble Energy Inc. is a partner in the Tamar and Leviathan fields, said that he expects more deals with Egypt following the one with Dolphinus signed earlier this month. Egypt is estimated to need some 20 to 40 billion cubic meters of natural gas a year for the next decade, he said, and this presents an opportunity for Israel.
The pipeline infrastructure already in place will allow Leviathan to supply gas to Egypt and Jordan when production starts in the fourth quarter of 2019, he said, and will allow Israel to be part of a regional grid connected to the two Arab countries, as opposed to the energy island it has been until now.