Department Of Energy
If Anything Goes Wrong, the Whole World Could Be Affected For a Long Time
Over a year ago we discussed the "next Industrial Revolution" and where it might appear from. 3D printers were envisioned among Goldman's top disruptive themes earlier this year and as UBS notes, 3D printing – or additive manufacturing – has been catching investors’ imaginations in recent months. Some commentators have suggested the technology has the potential to literally transform the world economy and dismantle global supply chains; while UBS points out that, others have suggested the technology is hyped and has little promise beyond a few niche product areas in manufacturing. The truth, Andrew Cates believes, probably lies somewhere in between but he is nevertheless more sympathetic to those who champion the technology’s disruptive – even revolutionary - qualities.
While nearly three years after the Fukushima disaster the world is finally focused, rightfully so, on the epic ecological and radioactive clusterfuck unfolding in Japan, where in a desperate effort to distract the population from what is going on in its back yard, the Premier has launched the most ridiculous monetary experiment doomed to failure, the reality is that the US itself harbors a veritable waste land of radioactive fallout, much of it hidden in plain sight. As the following interactive map from the WSJ shows, of the 517 active sites in the continental US, found on the Department of Energy's listing of facilities "considered" for radioactive cleanup through its Formerly Utilized Sites Remedial Action Program, some 43 have a "potential for significant radioactive contamination" through the time of the study. Find out if your state, city, or town is located next to a potential dormant and largely secret Fukushima, using the following handy interactive map.
There really is very little reason why this "government shutdown" cannot continue indefinitely because almost everything is still running. 63 percent of all federal workers are still working, and 85 percent of all government activities are still being funded during this "shutdown". It turns out that the definition of "essential personnel" has expanded so much over the years that almost everyone is considered "essential" at this point. In fact, this shutdown is such a non-event that even referring to it as a "partial government shutdown" would really be overstating what is actually happening. In the end, this shutdown could turn out to be very good for America. We have a government that is wildly out of control and that desperately needs to be reigned in.
The world supply of crude oil isn’t going to run out any time soon, and we will be producing oil for decades to come. However, what we won’t be doing is producing crude oil – petroleum – at the present rate of around 30 billion barrels per year. For a global civilization that is based almost entirely on a plentiful supply of cheap, crude oil, this is going to present some considerable challenges.
At 25% of GM's market cap, yet sporting just 0.6% of GM's sales, Tesla Motors is extremely overvalued.
North American crude oil has been in the news on several fronts this week, including some rapid price moves and an unexpected intervention by President Obama. Despite the publication of a new report projecting a much more rapid rate of tight oil supply growth than is generally expected and the entire Buffet-Railroad-Traffic-Pipeline meme relying on increasingly exponential dreams of the Bakken et al. saving us from our excess-energy-consuming selves, Barclays questions just how realistic these forecasts are, noting "it is perhaps wise to exercise a degree of caution over longer-term shale oil forecasts... partly because of the steepness of decline rates for shale oil wells, a lot of the very big productivity gains have already been made, and finally, skepticism around some of the more ambitious projections of US shale output due to the existence of numerous logistical barriers."
And What About Your Smart Meter?
It has just been released that the UK came within 6 hours of seeing itself deprived of its eggs and bacon as gas supplies across the entire country depleted to danger levels on March 22nd.
The Administration simply doesn’t want to get run over by the momentum of the oil and gas industry
Several moments ago, TSLA (hardly) surprised the world when it filed an open-ended S-3 (Shelf) statement, as many had expected it was only a matter of time before the company used the recent surge in its stock price to sell shares. Then, a few moments later, TSLA once again (hardly) surprised the world when it announced a joint $450 million convertible bond and 2.7 million share common stock offering. And because a dilution is not a dilution if the founder is participating in the common offering (buying his own equity at an unprecedented price to "anchor" it as a benchmark- sure why not - after all he is making much on all the other equity he has in the firm that he is not buying, as a result), the stock is trading up after hours.
The Obama administration has come out in support of the idea of exporting U.S. natural gas. This stance is counterproductive and shortsighted, and if followed, it will prove harmful to domestic manufacturing (i.e., value generation) and to future generations of Americans. While exporting natural gas would certainly prove to be an economic boon for a very select minority of companies and individuals, it makes no sense from an energy standpoint and undermines our national interests. All it will do is enrich a few while boosting prices for all domestic consumers and shortchanging the energy and environmental inheritance we pass along to our children. The time has come to give greater weighting to energy matters than to economic and political desires. To continue to be energetically wasteful at this time in history, when so much data is telling us that the effluent of our activities is measurably altering our support systems, is beyond embarrassing. It's tragic.
When you donate hundreds of thousands of dollars to re-election campaigns and push more hundreds of thousands of dollars through lobbying, you expect a little more back than the measly $95.6 million that SolarCity received in stimulus grants. The company, chaired by none other than Elon Musk, had applied for $325 million in federal aid in the same program that 'helped' Solyndra (and Tesla) and is now, according to the Wall Street Journal, suing the government for underpayment of green-energy subsidies. It seems SolarCity are using the M.A.D. defense, claiming that "they could lose millions more," if the government fails to provide the subsidies they asked for. As National Review details, SolarCity is one of the solar companies that is being investigated by the IRS after Treasury found that it "repeatedly overstated the value of its investments." So far the Treasury has paid out over $17 billion in green-energy stimulus grants and this case is not without precedent as a number of other renewable-energy firms are set to file suit.
As 'The Iron Lady' is laid to rest today, we thought a look back at 'economic' legacy was worthwhile. As Bloomberg's Niraj Shah notes, average U.K. public spending was lower under Margaret Thatcher than under David Cameron while the average quarterly economic growth rate was 0.6 percent compared with 0.1 percent today. However, unemployment averaged 9.5 percent under Thatcher, the highest rate seen during the stewardship of any post-war U.K. leader, despite her stalling of the 1970s downward economic spiral. From the Poll Tax riots to mining-union busting to surviving bombings, commitment to brokering peace with the IRA, and winning the Falklands' War, there were many sides to this lady, and perhaps in death she has some lessons for investors today, "To me, consensus seems to be the process of abandoning all beliefs, principles, values and policies. So it is something in which no one believes and to which no one objects." The longest serving prime minister in 150 years is receiving a ceremonial funeral with full military honors today as her legacy continues to divide the country.