Daily Archives: March 20, 2012

Steven Chu on Solyndra: Enough already !!!

Energy Secretary Steven Chu has just about had it with House Republican accusations about Solyndra and other clean-energy companies that won billions of dollars in federal loan guarantees.

“After hundreds of thousands of pages of documents sent over, there’s not any whiff that this was a politically influenced decision,” Chu told reporters Tuesday shortly after wrapping up House committee testimony on the controversial program. “That’s true of all the loans.”

Chu’s frustration was apparent after spending more than two hours before the Oversight and Government Reform Committee answering pointed GOP questions concerning his handling of more than $14.5 billion in stimulus-funded loan guarantees.

Earlier in the day, Rep. Darrell Issa’s panel released a blistering report claiming Chu had “turned a blind eye to the risks” associated with many of the companies applying for the loan guarantees, putting billions of dollars in taxpayer money in jeopardy.

During the hearing, House Republicans peppered Chu with questions about a “revolving green door” of current and former Obama administration officials and campaign fundraisers who have connections to the stimulus-funded loan guarantee winners.

Rep. Jim Jordan (R-Ohio) asked Chu whether his decisions had been influenced by several specific people tied to the administration, including former National Economic Council Chairman Larry Summers, who before joining the White House worked as a part-time managing director at D.E. Shaw, a New York-based investment firm that has an ownership stake in the Kahuku Wind project.

Chu replied that Summers’s connections to the Hawaii wind farm had nothing to do with it securing a $117 million loan guarantee in July 2010.

The DOE chief also had similar replies when asked about Commerce Secretary John Bryson, who before joining the administration sat on the board of directors at BrightSource, which won a $1.6 billion loan guarantee in April 2011 to support the Ivanpah Solar Energy Generating System in California’s Mojave Desert; Nancy-Ann DeParle, a deputy White House chief of staff for policy who served on the board of directors at Noble Environmental Power, the owner of the Granite Reliable wind energy project that won a partial $168.9 million loan guarantee last September; and Michael Froman, a deputy assistant to Obama and deputy national security adviser who worked at Citigroup, a major investor in SolarReserve, winner last September of a $737 million loan guarantee.

“There seems to be a pattern,” said Rep. Jason Chaffetz (R-Utah). “There’s so many names on this list. I just want to know personally what are you doing to follow through on our concerns that these people are personally financially benefiting from the decisions that they’re in positions to influence people when they have major financial gain on the upside of these loans.”

Chu responded that all of the DOE loan guarantees got greenlights based on their merits and without White House involvement. The DOE chief also said he hadn’t referred any of the specifics to the department’s inspector general, though he said he’d ask the DOE general counsel to review whether any of the officials breached a “firewall” designed to stop such conflict of interest concerns.

“We will look into this,” Chu told reporters after the hearing. “But again it’s easy to raise something and say, ‘Oh, by the way, this person had a connection to that company.’ Then there’s a big leap to say we funded the company because of it.”

Chu noted prominent Republicans and GOP donors have ties to some of the stimulus winners. But he also noted, “It’s not relevant to what we funded and that’s the bottom line.”

This article first appeared on POLITICO Pro at 3:59 p.m. on March 20, 2012.

Steven Chu on Solyndra: Enough already – Darren Samuelsohn – POLITICO.com.

Van Jones Rallies with Hawaii’s Community Organizers for ‘Economic Fairness, Justice’ – and a State Bank

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Van Jones at the Hawaii State Capitol, March 20, 2012 (photo by Mel Ah Ching Productions)

Tuesday, March 20th, 2012
by Malia Zimmerman

BY MALIA ZIMMERMAN – Van Jones, President Barack Obama’s former green jobs adviser who heads the “Rebuild the Dream” organization, keynoted a rally and a “mass action event” at the Hawaii State Capitol Tuesday night to promote “economic fairness” and “economic justice.” (see the video here)

Environmental activists groups, a union, and the University of Hawaii organized the five-hour event to promote legislation that would establish a State Partnership Bank, or a “clean” and “green” bank, to fund green energy projects, as well as “highlight other legislation that would make the local economy more just and sustainable.”

If Hawaii lawmakers establish a state bank, it will be only the second one in the country, and in some proposals being floated at the capitol, the governor chairs the bank, union leaders serve as directors, and Democrat lawmakers appoint the remaining board. Republicans, who make up just 9 of 76 seats in the legislature, oppose the establishment of a state bank because they say the institution will be financed by taxpayers, will be led by political insiders and will loan money to people for projects that no private bank would authorize, but they are outgunned.

Jones, author of the New York Times bestseller The Green Collar Economy, said Hawaii is one of 10 stops on his tour of the “front lines of the fight for the future of this country.”

Van Jones in Hawaii (photo by Mel Ah Ching Productions)

Van Jones in Hawaii (photo by Mel Ah Ching Productions)

“Each of our 10 targeted urban, suburban, and rural stops across America will support a strategic state initiative, such as making corporations pay their fair share, and create a replicable model for grassroots action,” Van Jones proclaimed, stating the movement is a “cultural, political, spiritual and educational vehicle bringing together tens of thousands of everyday people in the movement for economic justice and a new economy.”

In his keynote, Jones did not directly address the bank legislation or other legislation pending in Hawaii. Instead he spoke of the dream being “under threat.”

“Not the American dream they talk about on TV,” Jones said. “There are two American dreams. One of them I call the ‘American fantasy.’ You know that one? Everyone is going to be rich. Everybody. And we’re all going to be able to ride out to the great white suburbs, get a McMansion, get flat-screened TV to cover up the holes in our lives. That is the American fantasy, which is turning out to be the American nightmare. It is dying out on its own accord – it deserves no defense and it will get no defense. I am glad that is going away. That was not serving anybody.”

Jones called out the people he called “dream killers in America” and “dream killers right here in Hawaii.”

About 400 people attended the March 20 capitol rally to hear Van Jones speak (Photo by Mel Ah Ching Productions)

About 400 people attended the March 20 capitol rally to hear Van Jones speak (Photo by Mel Ah Ching Productions)

“There are people who have taken the American dream and turned it upside down, inside out. The dream is supposed to be that you can work hard, play by the rules and get somewhere. But you and I both know right here in Hawaii, and across America, the people who are working the hardest and following the rules are the ones who are being left behind, the ones who are suffering the most, the ones who are hurting the most. And yet some people who are not working that hard at all, their investments work for them. And sometimes they break a lot of rules, especially on Wall Street.  But they are the ones doing well. That is taking the American dream upside down, inside out. That’s killing the dream.”

Jones, who served as an adviser to the White House Council on Environmental Quality for 6 months before resigning in September 2009 amid controversy over statements he made and alliances he had, briefly addressed his time in Washington DC.

“I was there for 6 months. Best 6 months of my life, followed by the worst two weeks. … What I saw there is why I am here today. I saw some of the most beautiful people, some of the most well intentioned people, some of the smartest people ever to serve in our government, be stopped in their tracks, stopped in their tracks, by people who mean us no good. People who claim to be patriots but seem to hate everybody in America.”

During an address that was videotaped earlier in 2009, he called Republicans “assholes”, but it was a petition he signed in 2004 endorsing the “9/11 truther” movement that caught many by surprise. Those supporting the truther movement believe President Bush and his administration were involved in the September 11, 2001 terror attacks on America.

Council Member Tulsi Gabbard spoke at the March 20 rally and thanked her 'pops' - Sen. Mike Gabbard - for passing the state bank legislation out of his energy committee that day. She is a Democratic candidate for Congress. (photo by Mel Ah Ching Productions)

Council Member Tulsi Gabbard spoke at the March 20 rally and thanked her ‘pops’ – Sen. Mike Gabbard – for passing the state bank legislation out of his energy committee that day. She is a Democratic candidate for Congress. (photo by Mel Ah Ching Productions)

Despite a rocky political past, which ended with the President accepting Jones’ resignation, he is still considered a rising star in the green-energy movement. Jones shared some of his feelings on his political opponents:

“That always struck me as strange. When I said I love America, I mean I actually love the people in America – the people who live in America. Some of them are brown, some of them are female, some of them are lesbian, gay, bisexual, transgender, some of them have bizarre piercings and tattoos, but I love them. How can you say you love America but then despise most of the people who live here. I don’t understand that politics. I don’t understand how you can say you love America and love the Statute of Liberty, but then not read the poem at the bottom that says “Give me your tired, Give me your poor, Give me your huddled masses who yearn to breathe free.” The way I was raised. You can’t be an anti immigrant bigot and a patriot at the same time. They don’t go together. They don’t go together. Not in my America. They don’t go together.”

Hoping to capitalize on the energy and excitement many Hawaii Democrats experienced in 2008 when Obama won the presidency, Jones said: “What happened to all that hope? What happened to all that beauty? What happened to all that spirit? Did the people leave the planet? Was there a rocket ship I missed? Did people join that other party with the warm beverage – what is it – the coffee party? No we’re still here. We’re still here. And we still have each other. We still have each other. No one can take that from us.”

Jones said he looked forward to being in Hawaii because “it is a community working hard to shape an economy that honors people’s environmental, social, and cultural concerns.”

“We also hope the Revivals to build a base of informed and engaged citizens ready to carry their ideas into the 2012 election cycle,” he said.

Gov. Neil Abercrombie attends Van Jones speech at the Hawaii Capitol (Photo by Mel Ah Ching Productions)

Gov. Neil Abercrombie attends Van Jones speech at the Hawaii Capitol (Photo by Mel Ah Ching Productions)

Faith Action for Community Equity (FACE) Hawaii, a group of community organizers affiliated with various local religious groups, co-chaired the event. Other sponsors included Kanu Hawaii, Sierra Club, UNITE HERE Local 5, University of Hawaii, Blue Planet, and Surfrider Foundation. Council member Tulsi Gabbard, who is a candidate for Congress in the upcoming Democratic primary, spoke at the rally.

Also in attendance at the rally that attracted around 400 people were several Democratic lawmakers, including Tulsi’s father, Senator Mike Gabbard, who earlier that day passed the bank legislation out of his energy committee, as well as Senator Roz Baker, Senator Will Espero and Gov. Neil Abercrombie.

Source

Oil Theft is Big Business for Mexican Gangs

imageWritten by  Patrick Corcoran

Theft from Mexico‘s state oil company Pemex appears to have shifted from a small-scale criminal nuisance into big business, with actors such as the Zetas and Sinaloa Cartel increasingly getting involved.

The oil company, which provides the Mexican government with roughly a third of its operating budget, has long been plagued by robberies. In the past, these were typically carried out by small-scale gangs or Pemex distributors, and would involve intentionally mislabeling gasoline products, or selling off gas siphoned from pipelines at below-market prices.

During the Calderon administration, however, both the type of robberies and the perpetrators have changed, as Proceso reports, based on an internal Pemex document. Today, crude oil is being stolen on a wide scale, and the groups behind the theft are not small-scale gangs or businessmen gaming the system, but rather criminal networks like the Zetas. Furthermore, instead of reselling the oil at Pemex stations, the criminal groups are exploiting their international reach to sell it on to US refineries.

The geography of illegal siphons discovered in recent years demonstrates the growing role of organized crime groups — initially the Zetas, and increasingly, it would appear, the Sinaloa Cartel. According to Proceso, the two states where the largest number of illegal siphons were discovered in the first half of 2010 were Veracruz and Nuevo Leon, both of them notorious havens of Zeta activity. Sinaloa was third, followed by Puebla and then·Tamaulipas, which is also a Zeta stronghold.

But according to a recent report from Excelsior, Sinaloa became the state worst-hit by pipeline theft in 2011, leapfrogging the two Zetas-held states that were ahead of it in 2010.

The Zetas are known for their diverse revenue sources, involved in activities like extortion, pirate merchandise, kidnapping, car theft, and other rackets, in addition to oil theft. It is no surprise that Zetas-dominated states have seen a spike in stolen hydrocarbons.

In contrast, the Sinaloa Cartel has a reputation for sticking to drug trafficking. In 2010, for instance, a captured high-ranking member of the Sinaloa Cartel told authorities that the cartel boss Joaquin “El Chapo” Guzman had prohibited his subordinates from supplementing their wages by kidnapping. Other groups also operate in the Sinaloa state, such as the Beltran Leyva Organization, but the scale of the thefts suggests that the Sinaloa Cartel, as the foremost network in the region, is involved. If this is the case, it would seem to represent a significant shift in the group’s modus operandi.

Pemex has discovered 5,000 illegal siphons since Calderon took office in late 2006, with more than 1,300 of those found last year. Some 3 million barrels of hydrocarbons were stolen in 2011, an increase of 52 percent from the previous year. This caused losses of roughly $475 million to the company, which had revenues in 2010 of nearly $80 billion.

In response, Mexican authorities have ramped up investigations into the robberies; just 161 were opened in 2007, but more than 1,000 were opened last year. Most of those arrested for stealing oil have been linked to the Familia Michoacana and the Zetas, though the small-time operations have not entirely disappeared from the game.

In addition to the vast sums to be made, stealing oil and gas is an attractive business for a number of other reasons. Neither Pemex nor the Mexican government have the resources to patrol the thousands of miles of pipelines, meaning that the product can be stolen with relatively low risk. Furthermore, as InSight Crime has pointed out, the large bureaucracy in Pemex also generates a large number of targets for corruption. In many cases, people within the company have taken part in the robberies. And as Excelsior notes, while it may sound sophisticated, robbing oil or gas from a pipeline is a low-tech business.

As InSight Crime has reported, oil and gas theft are a serious issue for Latin American oil companies in countries including Colombia, Venezuela, and Bolivia. Hydrocarbon theft became a big source of funds for paramilitary group the United Self-Defense Forces of Colombia (AUC), with $10 million disappearing from 2001 to 2003 from AUC territory.

Source

Chu Uses Power Marketing Administrations to Implement Green Agenda

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Romina Boccia
March 20, 2012 at 5:25 pm

When it comes to finding alternate pathways to force their green agenda onto Americans, President Obama and his Administration know how to dream up creative solutions. In this latest installment, Energy Secretary Steven Chu is directing Power Marketing Administrations (PMAs) to invest in a smart electrical grid that also serves as test bed for cybersecurity technologies.

PMAs are federal agencies within the Department of Energy (DOE) that distribute and sell electricity from federal hydroelectric dams at cost-based prices, which allows them to sell the electricity at below-market rates. There are four PMAs split up by region: the Bonneville Power Administration, the Western Area Power Administration, the Southeastern Power Administration, and the Southwestern Power Administration. In the past, PMAs have relied heavily on taxpayer money to finance their capital investments.

In his March 16 memo, Chu instructs the PMAs to upgrade their transmission infrastructure, in part to enable more intermittent and unreliable “alternative” energy sources to travel over the grid. Chu also requests rate structure changes that provide incentives for energy efficiency programs, demand response programs, integration of variable resources, and preparation for electric vehicle deployment.

If the PMAs need such investments, then they should be made because it makes business sense—and funded through PMA revenues—not with taxpayer dollars because the President is running out of more transparent ways to advance his green energy agenda.

None of these are inherently bad ideas, if they were undertaken by the private sector on its own accord. Secretary Chu instructing the PMAs to “to take a leadership role in transforming our nation’s electric sector,” however, seems like a backdoor move to work toward the Administration’s agenda of incorporating more alternative energy sources in the power grid. This approach is bad policy for several reasons:

  • Without a law by Congress requesting that PMAs sell electricity at market prices, PMA customers will see their rates go up, while distortions in the price of electricity between PMA and market-based rates would continue to persist. PMAs should not exist to subsidize customers’ energy use through below-market rate electricity sales. However, raising these rates to bankroll the President’s economically unsustainable green agenda is also bad policy. Instead, the PMAs should simply sell their electricity at market rates and make whatever investments will help them meet their customers’ demands.
  • Taxpayers will likely be on the hook to subsidize the PMA spending on smart grid and cybersecurity technologies. In the memo, Chu announces reforms “necessary to ensure the borrowing authority programs are building the infrastructure this Nation needs while protecting and providing value to the taxpayer,” which suggests that taxpayers will subsidize the upgrades in one form or another.
  • The role of PMAs is to distribute and sell hydroelectric energy, not to be used as test beds for new grid technologies. They should make the upgrades necessary to allow proper functioning but should not serve as a testing ground.

Chu’s directing the PMAs to help carry out this Administration’s green energy aspirations on taxpayers’ and ratepayers’ dime is bad policy. Smart-grid initiatives should be led by the private sector—if they make sense—and the role of government should be in identifying and removing regulatory barriers to private-sector investments. PMA infrastructure that needs upgrading or replacing should be paid for by bringing MPA rates in line with market rates for electricity, instead of burdening taxpayers with additional spending.

Source

STX OSV Adds to their Backlog, DOF ASA Sends Newbuild Order for Subsea Construction Vessel

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In their second contract announcement so far today, Norway-based STX OSV adds to their offshore vessel newbuild orderbook with a NOK 650 million contract for the design and construction of an Offshore Subsea Construction Vessel (“OSCV”) for Norway-based offshore vessel owner, DOF ASA.

The vessel is of OSCV 11 design, developed by STX OSV in Ålesund, Norway. It will be designed with the new innovative moon pool concept from STX OSV.

STX OSV Design has together with Marintek and DOF Management just completed an extensive research program supported by the Norwegian Research Council, focusing on safe design and operation of moon pools. The results of the three years’ R&D program have been incorporated into the new moon pool design for the OSCV.  Compared to vessels with conventional moon pool design, the vessel can operate in a wider range of weather conditions in a safer manner for the vessel’s crew and equipment.

The overall length of the vessel will be approximately 121 meters with a beam of 22 meters. It will be equipped with one 250 ton offshore crane and two ROV systems. The vessel will have accommodation for 100 persons.

Delivery is scheduled from STX OSV Søviknes in Norway in 2Q 2013. The hull of the vessel will be delivered from STX OSV Tulcea in Romania.

DOF was founded in 1981 and is today an international group of companies which owns and operates a modern fleet of offshore / subsea vessels. The DOF group’s diversified fleet consists of innovative vessels specialized for different operational purposes; Platform Supply Vessels (PSV), Anchor Handling Tug Supply Vessels (AHTS) and Construction Support /Subsea ROV Vessels (CSV).

Source

Halliburton Charters Island Captain for UK Operation

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Norway’s Island Offshore reports that Halliburton has chartered the Company’s Island Captain as a well stimulation vessel on a 2 months firm contract.

The vessel will be operating on the Clipper South field in the Southern North Sea. The Island Captain is with this joining Island Commander and Island Patriot as the 3rd well stimulation vessel from IO, with a 4th vessel going into operation in January 2013.

“We are very happy to have made this deal with Halliburton and feel confident that the vessel will perform to the charterers’ expectations,” reads Island Offshore’s statement.

The Island Offshore Group is currently operating a fleet of 17 vessels ranging from Platform Supply vessels, Anchor Handling Vessels, Subsea Construction Vessels to Light Well Intervention Vessels. The group has several vessels under construction.

Source

UK: Ensco Ranks 1st Among Offshore Drillers by Costumer Satisfaction

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Ensco plc once again received the first place ranking for total customer satisfaction among offshore drillers in the 2011 Oilfield Products & Services Customer Satisfaction Survey. Conducted by EnergyPoint Research, the annual survey is the industry benchmark for customer satisfaction in the global oilfield.

Ensco led all offshore drilling contractors in the survey, also receiving top honors in 12 of 16 additional categories including health, safety and environment; job quality; performance and reliability; technology; special drilling applications; non-vertical wells and shelf wells. Ensco also earned the top ranking among deepwater drillers and the top ranking by independent operators, and was rated first internationally, with top scores in both offshore Latin America/Mexico and in the North Sea.

Ensco Chairman, President and Chief Executive Officer Dan Rabun stated, “Our people around the globe work safely to exceed customer expectations every day. This recognition is a testament to every Ensco employee’s commitment to that goal. When we operate safely and efficiently, we create success for everyone involved – customers, employees and shareholders.

“We realize that today’s drilling environment is more complex,” he added. “The technological challenges are higher, there is greater public scrutiny, and customers are counting on us more than ever to deliver operational excellence. In this environment, being recognized for success takes on even more meaning.”

EnergyPoint’s research showed a rise in overall customer satisfaction across all industry segments, with the largest increases in onshore and offshore drilling contractor scores.

The independent survey was conducted as part of EnergyPoint Research’s 2011 industry-wide Oilfield Products & Services Survey, comprising thousands of in-depth evaluations performed over a 24-month period by qualified professionals at domestic and international customers of oilfield suppliers.

Source

USA: Cheniere CEO Sees Domestic Gas Prices at USD 2/MMBtu

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In an interview on E&ETV yesterday, Cheniere CEO Charif Souki said that domestic natural gas prices could drop to $2 per million British thermal units as a result of improved drilling technologies, regardless of whether LNG exports are increased.

The rationale is this is no longer an exploration play. We know where the resource is. This is now a technology play. Technology plays become better, not worse.

We are learning how to image better, so we know where we have to drill. Our drill bits are getting better, so we know how to manage them and get them to the right place faster and better with less intrusion.

John Berge was talking last week about being able to reduce the amount of water used in the fracking process by 80 percent over the next few years. So, this is going to become a better and better process,” he said.

“We’re very early in the learning curve and we’re going to be able to find this resource more easily, faster and cheaper over a long period of time.

Whatever we can do to export is not going to be sufficient to make any impact at all. Most of the studies talk about 20 cents, I would propose that 20 cents statistically is insignificant, because gas prices can go up or down 20 cents every week. So, over a 20 year period, if our impact by modeling is 20 cents, that’s fine,” he added.

Cheniere of USA is developing a project to add liquefaction and export capabilities to the existing infrastructure at the Sabine Pass LNG terminal.

The Liquefaction Project is being designed and permitted for up to four modular LNG trains, each with a nominal capacity of approximately 4.5 mtpa.

In November 2011, Sabine Liquefaction, a unit of Cheniere, entered into a lump sum turnkey contract for the engineering, procurement and construction of the first two trains of the project with Bechtel Oil, Gas and Chemicals.

Sabine Liquefaction has also entered into four long-term customer sale and purchase agreements for 16 mtpa of LNG volumes, which represents approximately 89 percent of the nominal LNG volumes.

The customers include BG Gulf Coast LNG for 5.5 mtpa, Gas Natural Fenosa for 3.5 mtpa, KOGAS for 3.5 mtpa and GAIL (India) for 3.5 mtpa.

LNG World News Staff

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