Prediction: Mitt Will Condemn Capitalist Consolidation Tonight

If I had my way, President Obama would defend his investments in alternative energy by saying something like this:

In 1945, a great Democratic President sealed an alliance with our Saudi allies that cemented our energy security for the next half a century. While our commitment to the Saudis has come with setbacks over the years, it nevertheless provided the foundation for unprecedented American power and strength.

It’s in the same spirit of proactively ensuring America’s future greatness that my Administration set out to–and succeeded–in doubling our production of alternative energy. My Republican opponents, however, have sought to turn efforts to ensure America’s future greatness into a petty political issue. Doing so risks leaving America unprepared to compete in the future.

Never mind the problems FDR’s commitment to oil in 1945 brought about. Never mind overselling the importance of his 1945 meeting. Both are details Republicans will never point out.

More importantly, by posing Republican opposition to alternative energy as a refusal to take care of America’s future, it would turn GOP favoritism for oil into a national security weakness. As it really is.

But Obama won’t say that (or at least he hasn’t yet, and he’s had over a year of Solyndra attacks in which to do so).

So I hope when Mitt brings up the A123 bankruptcy tonight, Obama is at least prepared to call it what it is: capitalist consolidation just like the kind that Mitt has built his quarter billion fortune on. And this one is probably a net win for the US all around.

A123, one of the more innovative battery companies, announced this morning that it will file for bankruptcy. Mitt is likely to bring it up because A123 received energy stimulus funds for battery plants in MI.

But not only is A123 in negotiations to sell the rest of its business areas, it has already announced Johnson Controls (disclosure: I own stock) will purchase it auto related holdings–the stuff that benefitted from stimulus dollars.

A123 this morning said that it has agreed to sell its automotive business assets, including facilities in Livonia and Romulus, Michigan, its manufacturing facilities in China and its stake in the joint venture Shanghai Advanced Traction Battery Systems Co., to Johnson Controls for $125 million.

A123 said it “continues to engage in active discussions regarding strategic alternatives for its grid, commercial, government and other operations, and has received several indications of interest for these businesses.”

Say what you will about diminishing competition in a field where competition really serves innovation. But as far as stimulus dollars goes, this represents a consolidation. JCI–which received multiple energy grants itself, including for a battery factory in Holland, MI–has gotten expanded facilites at a discount. It will also benefit from the money the Chinese have invested in A123.

One more neat part to this: JCI is headquartered in Milwaukee, WI. They’re not in Paul Ryan’s district, but they do bleed into his WI ideological home, Waukesha. So when Mitt attacks the A123 investment, he will ultimately be attacking his running mate’s neighborhood.

It’s likely Mitt will bring up the A123 bankruptcy tonight. If he does, I hope Obama is prepared to use it to flip GOP attacks back on Mitt.

Update: The Department of Energy is talking about consolidation too.

In an emerging industry, it’s very common to see some firms consolidate with others as the industry grows and matures. Read more

Winter™ — Property of The Weather Channel®

(photo: Blizzard 2010 by *Low* via Flickr)

With a lot of self-justifying, back-patting hoopla today, The Weather Channel announced it’s decided unilaterally to assign names to winter storms.

During the upcoming 2012-13 winter season The Weather Channel will name noteworthy winter storms. Our goal is to better communicate the threat and the timing of the significant impacts that accompany these events. The fact is, a storm with a name is easier to follow, which will mean fewer surprises and more preparation.

Yes, fewer surprises. Just the one about winter’s natural disasters being branded by The Weather Channel.

There’s no indication that any federal government entity, including NOAA, has sanctioned this scheme let alone the names.

…until now, there has been no organized naming system for these storms before they impact population centers.

One of the reasons this may be true is that there is no national center, such as the National Hurricane Center, to coordinate and communicate information on a multi-state scale to cover such big events. The National Centers for Environmental Prediction’s Hydrologic Prediction Center (HPC) does issue discussions and snowfall forecasts on a national scale but it does not fill the same role as the NHC in naming storms. …

At this point The Weather Channel’s management breaks their arms with back-patting, lauding their efforts while calling it a bunch of euphemisms for team-playing:

…it would be a great benefit for a partner in the weather industry to take on the responsibility of developing a new concept.

This is where a world-class organization such as The Weather Channel will play a significant role. We have the meteorological ability, support and technology to provide the same level of reporting for winter storms that we have done for years with tropical weather systems. …

In the absence of any government inputs, the selected storm names for this season appear to be intellectual property of The Weather Channel.

Bet you didn’t think that natural disasters could be co-opted, branded, and marketed!  Read more

Obama, Stuck in the 9/11 Era as Much as Mitt Is Stuck in the Cold War Era

Working on another post, I went back and read all three Obama DNC speeches. (200420082012) Aside from the biographical details, several things remained constant through all three: the Hope theme (though it has evolved in interesting ways, which is what I was looking at), the inclusion of some version of “We don’t think the government can solve all our problems,” and a call for energy independence.

2004

In 2004, that call came in a list of things John Kerry planned to accomplish.

John Kerry believes in energy independence, so we aren’t held hostage to the profits of oil companies or the sabotage of foreign oil fields.

2008

In 2008, the call came with a specific goal: to end dependence on the Middle East by 2019.

And for the sake of our economy, our security, and the future of our planet, I will set a clear goal as President: in ten years, we will finally end our dependence on oil from the Middle East. [my emphasis]

Obama embodied the refusal of DC to address energy independence in John McCain’s career, and in the “Drill Baby Drill” chant that was the rage in political circles in 2008.

Washington’s been talking about our oil addiction for the last thirty years, and John McCain has been there for twenty-six of them. In that time, he’s said no to higher fuel-efficiency standards for cars, no to investments in renewable energy, no to renewable fuels. And today, we import triple the amount of oil as the day that Senator McCain took office.

Now is the time to end this addiction, and to understand that drilling is a stop-gap measure, not a long-term solution. Not even close.

And he made several promises–several of which he has made progress on, several of which he has thankfully not achieved, one of which–nukes–he has at least rhetorically dropped from his convention speech.

As President, I will tap our natural gas reserves, invest in clean coal technology, and find ways to safely harness nuclear power. I’ll help our auto companies re-tool, so that the fuel-efficient cars of the future are built right here in America. I’ll make it easier for the American people to afford these new cars. And I’ll invest 150 billion dollars over the next decade in affordable, renewable sources of energy – wind power and solar power and the next generation of biofuels; an investment that will lead to new industries and five million new jobs that pay well and can’t ever be outsourced.

2012

And last week he, correctly, argued that Mitt would not continue this commitment to an energy independence that relies on a range of sources (Mitt would certainly keep drilling, would expand traditional coal mining, and would keep paying Iowa farmers to pour corn into cars, but would probably not continued subsidies for clean technologies).

OBAMA: You can choose the path where we control more of our own energy. After thirty years of inaction, we raised fuel standards so that by the middle of the next decade, cars and trucks will go twice as far on a gallon of gas.

(APPLAUSE)

In this section, Obama quietly–too quietly–bragged about the jobs he created in battery and turbine plants.

We’ve doubled our use of renewable energy, and thousands of Americans have jobs today building wind turbines, and long-lasting batteries.

And he accurately claimed that these policies (plus the recession, plus a warm winter, though he doesn’t mention them) have made a difference.

In the last year alone, we cut oil imports by one million barrels a day, more than any administration in recent history. And today, the United States of America is less dependent on foreign oil than at any time in the last two decades.

(APPLAUSE)

So, now you have a choice – between a strategy that reverses this progress, or one that builds on it.

What I’m interested in, though, is the emphasis he places on the energy and the unconvincing nod he makes to climate change. In 2004, Obama had listed “the future of our planet” as the third of three reasons for his commitment to energy independence; the other two were “our economy” and “our security.” Here, an explicit admission that “climate change is not a hoax” comes among promises to “drill baby drill.”

We’ve opened millions of new acres for oil and gas exploration in the last three years, and we’ll open more. But unlike my opponent, I will not let oil companies write this country’s energy plan, or endanger our coastlines, or collect another $4 billion in corporate welfare from our taxpayers. We’re offering a better path. [my emphasis]

Even when I listened to this passage the other night, I was offended by his promise not to let oil companies endanger our coastlines. Oil from the BP spill came onshore with Hurricaine Isaac. Just a week before he delivered these lines, Obama approved Shell drilling in the Chukchi Sea which presents predictable dangers to coastlines and species, particularly given how Shell has already failed to take necessary precautions. And even the Saudis recognize that fracking presents a real threat to our groundwater. So not only is Obama not subordinating the sanctity of our coastlines to his commitment to drill, neither is he making adequate efforts to protect our drinking water.

(APPLAUSE)

We’re offering a better path, a future where we keep investing in wind and solar and clean coal; where farmers and scientists harness new biofuels to power our cars and trucks; where construction workers build homes and factories that waste less energy; where — where we develop a hundred year supply of natural gas that’s right beneath our feet.

If you choose this path, we can cut our oil imports in half by 2020 and support more than 600,000 new jobs in natural gas alone.

(APPLAUSE) [my emphasis]

Then, after what, given the brevity of the speech, is a very long section on drilling, Obama immediately nods to climate change.

And yes, my plan will continue to reduce the carbon pollution that is heating our planet because climate change is not a hoax. Read more

John Brennan Vows to Combat the “Bad Guys” Attacking Our Critical Infrastructure

John Brennan just gave a speech, purportedly about our policy in Yemen. But it ended up being largely about infrastructure, That’s partly because his speech focused on how, rather than spending 75% of our Yemen funds on bombs, we’re now spending just 50% (having bumped up the total to include an equal amount development assistance). So a good part of his talk focused on whether or not Yemen would be able to do the critical work of rebuilding its infrastructure sufficient to combat AQAP which, in some areas, has done a better job of building infrastructure.

Of course as I noted while he spoke, a number of the infrastructure challenges Brennan confidently assured we could help rebuild–things like access to water–are challenges we are increasingly failing in our own country.

And then, because the DC attention span had had enough of Yemen, moderator Margaret Warner asked Brennan what the Administration will do now that their cybersecurity bills have been defeated. To justify his talk of using Executive Orders to address some of the infrastructure problems, Brennan talked about the “bad guys” who posed a cyberthreat to our critical infrastructure.

Nowhere did Brennan acknowledge the much more immediate threat to our critical infrastructure: in the corporations and politics that let it decline. PG&E and Enbridge, failing to invest the money to fix known defects in their pipelines. Fracking companies, depleting and degrading our water supply. Verizon, eliminating choice for Internet access for rural customers. Republicans who want to gut our Postal Service and passenger rail. And heck, even Fat Al Gore and climate change, which is not only depleting our water supply but stalling key water transport routes.

Brennan promises to help rebuild Yemen’s infrastructure. But not only can’t he implement his plan against the bogeyman “bad buys” threatening our infrastructure, he seems completely unaware that those “bad guys” aren’t anywhere near the biggest threat to our infrastructure.

Don’t get me wrong. I applaud the Administration’s decision to dedicate money to Yemen’s infrastructure, even if I think a 50/50 split, aid to bombs, is still woefully inadequate. But until we begin to see what “bad guys” pose the biggest threat to our own infrastructure, I’m skeptical our efforts in Yemen will be any more successful than they were in Iraq or Afghanistan.

Nuke Site Breached Just Days After SSCI Moved to Eliminate Reporting on Nuke Site Security

I have been dawdling about writing this post, in which I explain that two of the reporting requirements the Senate Intelligence Committee rather stupidly, IMO, moved to eliminate last week pertain to the security of our nuclear labs.

Back when I criticized the plan to eliminate these reports in June, I wrote,

The bill would eliminate two reporting requirements imposed in the wake of the Wen Ho Lee scandal: that the President report on how the government is defending against Chinese spying and that the Secretary of Energy report on the security of the nation’s nuclear labs. Just last year, the Oak Ridge National Laboratory had to separate from the Internet because some entity–China would be a good candidate–had hacked the lab and was downloading data from their servers. Now seems a really stupid time to stop reporting on efforts to avoid such breaches.

In spite of these very obvious reasons, the Senate did indeed eliminate two reporting requirements pertaining to national labs (though they kept the one pertaining to Chinese spying).

(7) REPEAL OF REPORTING REQUIREMENT REGARDING COUNTERINTELLIGENCE AND SECURITY PRACTICES AT THE NATIONAL LABORATORIES.—Section 4507 of the Atomic Energy Defense Act (50 U.S.C. 2658) is repealed.

(8) REPEAL OF REPORTING REQUIREMENT REGARDING SECURITY VULNERABILITIES OF NATIONAL LABORATORY COMPUTERS.—Section 4508 of the Atomic Energy Defense Act (50 U.S.C. 2659) is repealed.

I’m glad I waited. Now I can use this story to demonstrate how vulnerable our nuclear labs remain.

The U.S. government’s only facility for handling, processing and storing weapons-grade uranium [Oak Ridge National Lab] was temporarily shut this week after anti-nuclear activists, including an 82-year-old nun, breached security fences, government officials said on Thursday.

[snip]

The activists painted slogans and threw what they said was human blood on the wall of the facility, one of numerous buildings in the facility known by the code name Y-12 that it was given during World War II, officials said.

While moving between the perimeter fences, the activists triggered sensors which alerted security personnel. However, officials conceded that the intruders still were able to reach the building’s walls before security personnel got to them.

When James Clapper’s office asked to throw these reports out, they justified it by saying they could just brief the information rather than report it regularly.

This reporting requirement should be repealed because it is over a decade old and the Secretary of Energy and the National Counterintelligence Executive can provide the information requested through briefings, as requested, if congressional interest persists.

Oak Ridge Lab has been breached twice in two years, once via its computer systems and now physically. I’m sure Congress will be getting a slew of briefings about the lab, but it really does seem like a little reporting requirement might help DOE to take this seriously.

Is Obama Worried that Fat Al Gore’s Drought Will Threaten His Reelection?

I’m beginning to wonder whether Obama is worried the drought–particularly in the Midwest–could imperil his reelection campaign. I say that because he seems to be avoiding addressing it on the campaign trail. (Compare that to the way he has addressed other tragedies, such as his well-received conversations with the victims of the Aurora shooting.)

To the best of my knowledge, this July 18 photo is as close as Obama has gotten to publicly expressing concern about the drought. And in a press briefing on the drought the same day, both participants–Tom Vilsack and Jay Carney–avoided addressing questions about whether Obama would visit drought affected areas.

Q Secretary, should we be expecting that you and the President will be heading to a drought-stricken area soon? That’s normally a path that you take when you’re trying to show something is a priority.

SECRETARY VILSACK: Well, I can’t speak obviously for the President’s schedule, but I can tell you that actually I was in Pennsylvania yesterday. We do have the Deputy Secretary going to Georgia tomorrow. We’ve got the Under Secretary of the Farm Service Association traveling to several states that are drought-impacted and affected.

[snip]

Q Is the President going, Jay, to go anywhere —

MR. CARNEY: I don’t have any scheduling updates for the President to provide to you today. If and when I do, I’ll provide them.

Now, I’m not trying to concern troll about the President’s schedule, in the way Republicans are criticizing Obama for not meeting with his Jobs Council. Nor am I saying Obama’s not responding to the drought; the USDA has been making low-cost loans available to those in areas declared a disaster, as well as certain other things that may provide immediate if not long-term relief.

Rather, I’m raising it because I really do think it might affect the election. Consider how many swing states are affected by the drought (conditions have gotten better in MI of late).

And while IA has not been included among the counties in which Vilsack has declared a disaster, its corn harvest has been affected (with 40% deemed poor or very poor on July 22). And their livestock will be affected as well.

Read more

The Only Terrifying Math That Gets Any Attention Is Defense Spending

Bill McKibben had a long piece on climate change this week, “Global Warming’s Terrifying New Math,” that has justifiably gotten a lot of attention. The terrifying math of the title is this:

  • Almost the entire world agreed in 2009 that we must keep global temperature increases below 2°C
  • Since then, the 0.8°C increase in temperature we’ve hit has brought far more damage than scientists expected
  • Humans can introduce no more than 565 gigatons of carbon into the atmosphere if they want to keep the temperature from rising that 2°C which now seems too high
  • Fossil fuel companies already have in reserve–and plan to develop–2,795 gigatons of carbon fuels

The math means, McKibben explains, that to keep global warming within the consensus but already too high limit of 2°C, we’ve got to find some way to force the fossil fuel companies not to develop their existing reserves.

At this point, effective action would require actually keeping most of the carbon the fossil-fuel industry wants to burn safely in the soil, not just changing slightly the speed at which it’s burned.

[snip]

According to the Carbon Tracker report, if Exxon burns its current reserves, it would use up more than seven percent of the available atmospheric space between us and the risk of two degrees. BP is just behind, followed by the Russian firm Gazprom, then Chevron, ConocoPhillips and Shell, each of which would fill between three and four percent. Taken together, just these six firms, of the 200 listed in the Carbon Tracker report, would use up more than a quarter of the remaining two-degree budget. Severstal, the Russian mining giant, leads the list of coal companies, followed by firms like BHP Billiton and Peabody. The numbers are simply staggering – this industry, and this industry alone, holds the power to change the physics and chemistry of our planet, and they’re planning to use it.

From this McKibben proposes a solution: Tax carbon to make it cost prohibitive to develop these reserves. To tax carbon you’ve got to undercut the fossil fuel industry’s power, and to do that you’ve got to villainize them, but heck that’s easy because they really are villains, since their business model will kill the planet. And so a movement like the South African divestment campaign can make it toxic to own fossil fuel stocks.

That’s a gross oversimplification–please do read the full article for a nuanced version.

Now, there’s nothing in the article that I disagree with. I’m all for making fossil fuel companies pay for the waste their industry creates. I’m all in favor of villainizing them to make that more likely.

But I’ll note that McKibben doesn’t utter the words that would both make it easier to villainize the fossil fuel industry and explains some of the underlying reasons why that’s not going to be enough.

“National security.” Or even “security.”

In that silence, McKibben is a mirror image of the same fault in Obama’s own strategy and discussions more generally about threats to this country, even fairly realistic ones.

Sure, all the details McKibben cites about evident and likely effects of climate change imply this is a security issue: 356 homes gone in Colorado Springs, spiking food prices, even entire countries disappearing.

But until we start using the language of national security, we won’t properly demonstrate the treachery of those who refuse to deal with this. Read more

Obama Brings Bankster and Oil Curses to Burma

After I read Obama’s Executive Order opening up trade with Burma, I joked,

Wait. We’re exporting FINANCIAL SERVICES to Myanmar? This is considered a favor to them?

Seriously. Sending our financial services to another country is, these days, the equivalent of bombing them.

Just as–probably more–troubling though are the concerns Josh Rogin lays out about Obama green-lighting investment in the Myanmar Oil and Gas Enterprise, off of which the military profits.

[Aung San] Suu Kyi, who was elected to Burma’s parliament in April after more than two decades of house arrest, last month specifically asked foreign governments not to allow their companies to partner with MOGE at this time.

“The Myanmar Oil and Gas Enterprise (MOGE) … with which all foreign participation in the energy sector takes place through joint venture arrangements, lacks both transparency and accountability at present,” she said June 14 in a speech in Geneva. “The [Myanmar] government needs to apply internationally recognized standards such as the IMF code of good practices on fiscal transparency. Other countries could help by not allowing their own companies to partner [with] MOGE unless it was signed up to such codes.”

The Obama administration has repeatedly said that it would follow Suu Kyi’s lead while cautiously opening up to closer ties with the Burmese regime. The new U.S. ambassador to Burma Derek Mitchell arrived there today.

[snip]

Following a Deputies Committee meeting last week, the side that advocated for a broader repeal of the investment ban won out. That side included the State Department’s East Asian and Pacific affairs bureau (EAP), led by Assistant Secretary Kurt Campbell, the economics office at State led by Undersecretary Robert Hormats, and the Treasury and Commerce departments.

While the Treasury version of today’s news imposes human rights (but not profit) controls on investments over $500,000 and threatens sanctions on anyone threatening the peace in Burma (this is akin to the sanctions passed on Yemen),

The order provides new authority to impose blocking sanctions on persons determined by the Secretary of the Treasury, in consultation with or at the recommendation of the Secretary of State:  to have engaged in acts that directly or indirectly threaten the peace, security, or stability of Burma, such as actions that have the purpose or effect of undermining or obstructing the political reform process or the peace process with ethnic minorities in Burma;

Ultimately, it’s Treasury–one of the entities that overrode the human rights advocates in this debate and has proven unable to regulate our own banksters–that gets to decide what constitutes peace.

There’s a very long, almost universal history of bad outcomes associated with big investments in oil. And yet the only safeguard Obama has put in place to prevent the oil curse from spoiling this really superb development–the opening of Burma–is the diligence of the Treasury Department that refuses to even reign in our own cursed industries.

Hugo Chavez’ Balsa Wood Drone

There were two very fascinating pieces of news out of Venezuela today.

First, Venezuela has officially surpassed Saudi Arabia in terms of proven petroleum reserves.

Venezuela surpassed Saudi Arabia to become the world’s largest holder of proven oil reserves, a resource that President Hugo Chavez promises to tap if he gets re-elected in October.

The South American country’s deposits were at 296.5 billion barrels at the end of last year, data from BP Plc (BP/) show. Saudi Arabia held 265.4 billion barrels, BP said yesterday in its annual Statistical Review of World Energy.

[snip]

Venezuela now holds 18 percent of the world’s reserves, according to BP data.

[snip]

Saudi Arabia now trails Venezuela with a 16 percent share of world proven oil reserves, according to the report. Canada ranks third with 175.2 billion barrels, or 11 percent of total, unchanged from the revised number for 2010.

While Saudi oil remains a lot easier to extract and refine, the assholes holding us by the nuts in the Middle East are now officially second fiddle to the asshole we tried to overthrow a decade back. Lucky for us, the guy in charge of Canada right now is an asshole who likes to suck up to America.

This state of affairs may be one reason why Chavez just rolled out Venezuela’s very own drone. In terms of capabilities, Chavez’ drone is not much more sophisticated than the balsa-wood and duck tape contraption Saddam had which Bush used to help drum up the Iraq War.

The drone has a range of 100 kilometers (60 miles), can reach an altitude of 3,000 meters (nearly 10,000 feet) according to General Julio Morales, head of the state-run Cavim arms manufacturer, which developed the aircraft.

Read more

Peak Chicken: PA’s Drinking Water versus Saudi Extravagance

This FT article–describing the calculations stakeholders are making in face of the realization that the US is the only non-OPEC nation to have increased petroleum output in the last three years–is worth reading. As reported, OPEC members are worried that our shale oil development (and the ability to frack around the world) will eat into their control of the oil market–though they’re counting on concerns about groundwater stalling fracking development.

Abdalla El-Badri, Opec’s secretary-general, acknowledged that shale oil and gas were changing the North American energy landscape. But there were still questions surrounding hydraulic fracturing, particularly its impact on groundwater, and it would “take time” to solve problems associated with the technique.

The Saudis, meanwhile, believe they could flood the market to bring oil prices low enough to make fracking unprofitable. Except they need oil to sell expensively to meet their own financial needs.

If non-Opec oil supplies look like becoming a serious threat, Saudi Arabia could lead a production increase to drive the price down, making high-cost rival sources uneconomic.

But [Chatham House researcher Paul] Stevens points out that the high oil price sought by Opec is a double-edged sword. On the one hand, they need it to balance their budgets. On the other, it encourages investments in unconventional oil reserves. “So they’re cutting their own throats,” he said.

Perhaps we should call this moment Peak Chicken? Where we pit drinking water in PA and other states against the extravagant lifestyles of the Saudi Princes and see which concedes first? (I love how OPEC ministers discuss the problems of fracking far more openly than any official in this country does.) And yet, somehow OPEC seems unworried about losing their power due to the rise in renewables?

image_print