Nuclear Power

UPDATE: Oil Sub $100.

And so the escalation ends, if only for the time being, as Iran chalks a (Pyrrhic?) victory.

• EU IRAN OIL EMBARGO SAID TO BE LIKELY DELAYED BY SIX MONTHS

Why? Because the world slowly realized that the potential surge in oil prices would tip a world already on the verge of a recession even deeper into economic contraction. Not rocket science, but certainly something the US president apparently has been unable to comprehend, especially if hoping that he would merely transfer exports from Iran to his close ally Saudi Arabia which would cement its European market monopoly even further. Or, perhaps, someone just explained to Obama that Embargo in January + QE3 in March = No Reelection...

In other news, crude is now dumping.

Cover up? What cover up?

Is December 2012 a great contrarian buying opporunity?

The political press has been abuzz with over the much anticipated signing of the NDAA by Barack Obama on Saturday: this move was not surprising because Obama had already made it clear he would go ahead and enact the law, even though he added some 'stern' language that is supposed to legitimize what some say is a precursor to the establishment of martial law in the US. To wit: "The fact that I support this bill as a whole does not mean I agree with everything in it. In particular, I have signed this bill despite having serious reservations with certain provisions that regulate the detention, interrogation, and prosecution of suspected terrorists." And yet he signed it (full text of Obama's statement on the NDAA, sent while on vacation in Hawaii, can be found here). Perhaps the reason for that unpopular move were some of the more nuanced contents of the Bill, among which is the decision to fully boycott not only Iran, but any bank, including central bank, and other financial institution found to deal with Iran. Which incidentally means most of Russia and China, and probably half of Europe, as all petrodollars generated by the country's petroleum export industry first have to make their way via the international financial community back into the country. The history buffs out there will realize that this form of couched antagonism is nothing short of the US approach to Japan during World War II, which was essentially provoked into attacking Pearl Harbor - read the details of the October 7, 1940 McCollum Memo here, and especially bullet point 10. And unfortunately, it appears that within 24 hours or so, Iran may have already taken the bait. As Reuters and BBC report, Iran has both test-fired a medium-range SAM during the ongoing wargames exercise previously discussed here, as well as made a formal announcement it has made and tested domestically made nuclear fuel rods: precisely the event that the Israel or US-borne Stuxnet was designed to prevent. So as the tennis match of escalation keeps on growing the ball is now once again in the US' court.

The cooling system at Fukushima's Daiichi sister plant was closed earlier today after Tepco announced that "sparks were detected". According to TEPCO this is no cause for alarm and the situation will be restored back to normal shortly. According to yet other news, after 4 months of lies, TEPCO has started telling the truth. From Reuters: "The operator of Japan's Fukushima Daini nuclear power plant, located near the tsunami-crippled Daiichi plant, on Thursday halted the cooling system at one of its reactors after electrical sparks were detected, Kyodo news agency reported. Tokyo Electric Power , the plant's operator, expects to be able to restore the cooling system at the Daini plant's No.1 reactor before the end of Thursday, Kyodo said." Fair enough. We will be sure to check in later today to validate this latest "fact."

We hadn't previously discussed the situation at the Fort Calhoun, Nebraska nuclear power plant, as there was still a possibility that it was containable, and the deterioration had been largely blown out of proportion. Alas now that the Missouri River flood waters have penetrated the last ditch water-filled wall, and have since surrounded the  containment buildings and other vital areas of a Nebraska nuclear plant, it may be time to get a little more concerned. As Reuters reports, "The U.S. Nuclear Regulatory Commission (NRC) said the breach in the 2,000-foot (600 meters) inflatable berm around the Fort Calhoun station occurred around 1:25 a.m. local time. More than 2 feet (60 cm) of water rushed in around containment buildings and electrical transformers at the 478-megawatt facility located 20 miles (30 km) north of Omaha." Naturally, the severity of the situation is being downplayed by the NRC, very much the way Tepco and Japanese authorities pretended the Fukushima situation was under control, until it was uncovered that there had been plant meltdown within hours of the tsunami: "Reactor shutdown cooling and spent-fuel pool cooling were unaffected, the NRC said. The plant, operated by the Omaha Public Power District, has been off line since April for refueling." That's one version of the story. A far better one would be calling up the Octogenarian of Omaha and upon getting voicemail, inquiring in what part of the world he is currently residing until the Fort Calhoun situation is actually fixed. To everyone else, we would merely suggest they copycat Buffet, especially after seeing the picture of the plant below (taken June 16, which means the situation now is far worse), which makes the flooding at Fukushima look tame by comparison.

So far the only good news to accompany the Fukushima catastrophe has been that for all the fallout, the radiation has been mostly contained due to Northwesterly winds which have been blowing any radioactivity mostly out and into the Pacific (coupled with relatively little rainfall), as well as the dispersion of irradiated cooling water which promptly enters the Pacific after which it is never heard of or seen again (there is at least a several year period before 3 eyed tuna fish feature prominently in restaurants across the country). This may be changing soon now that Super Typhoon Songda, which according to Weather Underground will form shortly as a Category 5 storm with 156+ mph winds, will take a northeasterly direction and 2 days later will pass right above Fukushima. The good news: by the time it passes over Fukushima it will be merely a Tropical storm. The bad news: by the time it passes over Fukushima it will be a Tropical storm. As the latest dispersion projection from ZAMG shows, over the next two days the I-131 plume will be covering all of the mainland. Although judging by how prominent this whole topic is in the MSM lately, it seems that conventional wisdom now agrees with Ann Coulter that radioactivity is actually quite good for you.

A man in a boat has a suspicious device attached to himself several miles away from the nuclear power plant in Surry, Va., according to officials. A Virginia State Police representative said that there is a man on a boat or a raft on the James River, according to WTVR-TV in Richmond. The man is in an inflatable boat and drifting with the current, Bull said. He has a metal chain around his neck and the chain is attached to a black box. Bull said officials have a bomb squad and snipers near the scene out of caution. He said they have tried talking to the man, and that he is coherent and lucid at times, but that it does not last for long. The airspace around the incident is closed, according to WBBT in Richmond, and boaters are being rerouted around the scene.

In a free market, we wouldn't have unsafe nuclear reactors ...

As we reported previously, Obama has found himself on the verge of another environmental scandal now that he has no choice but to redirect the Mississippi river via the Morganza spillway - either lose millions in barrels of daily refined production and potentially the impairment of the Colonial Pipeline, two events which would promptly cause gas prices to soar to new records, or redirect the river via the Spillway, and cause the flooding of millions of acres, and numerous towns and cities, and possibly another New Orelans bases crisis. It seems Obama has picked the lesser of two evils: i.e., protect the oil: "The U.S. Army Corps of Engineers said on Friday it anticipates opening the Morganza Spillway on the western bank of the swollen Mississippi River to divert floodwaters into the Atchafalaya River basin and protect Baton Rouge, Louisiana, New Orleans and refineries from flooding. The Corps of Engineers had been planning next week to open the spillway, about 45 miles (72 km) northwest of Baton Rouge, but could do so as soon as Saturday as high water continues making its way downriver." On the other hand, opening the spillway will also lead to plant impairments: " Opening the spillway will disrupt operations at Alon USA Energy's 80,000-bpd Krotz Springs, Louisiana, refinery. An Alon spokesman said on Friday that the plant was operating normally as crews continued to build a second levee to prevent Atchafalaya River waters from flooding the refinery within 10 to 14 days of the Morganza opening. The new levee will supplement existing levees." And there is more: it appears that not only are refineries in danger, but three nuclear power plants are also in danger of being flooded: Entergy's 1,176-megawatt Waterford nuclear plant in St. Charles Parish, Louisiana; its 978-megawatt River Bend nuclear plant in West Feliciana Parish, Louisiana, and the 1,268-megawatt Grand Gulf nuclear station in Clairborne County, Mississippi."

One of the more surprising victims of this weekend's dramatic tornado flurry that ravaged numerous states causing the deaths of 45 people, were two nuclear reactors operated by Dominion Resources in Surry County, Virginia on April 16. Luckily, it appears that the shutdowns have been contained. From Reuters: "Dominion Virginia Power said the two nuclear reactors at its Surry Power Station shut down automatically when a tornado touched down and cut off an electrical feed to the station. The U.S. south was hit by violent storms over the weekend. No radiation was released during the storm and shutdown, the NRC and the company said. The situation was described as an "unusual event," the lowest of the four NRC emergency classification levels." The Guardian adds: "The US nuclear safety regulator said on Mondayit was monitoring the Surry nuclear power plant in Virginia. Dominion Virginia Power said the two reactors shut down automatically when a tornado cut off power to the plant. A backup diesel generator kicked in to cool the fuel. The regulator said no radiation was released and staff were working to restore electricity to the plant." Perhaps this is a modest but much needed validation that not every natural disaster will result in some form of nuclear incident. Then again, we will follow news of when precisely the Surry plant will officially regain full electricity.

Just like the Fed and banks ...

"But it wasn't FORESEEABLE!"

Better late then never. Almost a full month after the March 11 earthquake generated a tsunami strong enough to cripple the Fukushima nuclear power plant, TEPCO has finally released a video of the 45 foot waves coming to land and resulting in the biggest nuclear catastrophe since Chernobyl. As CNN explains what is patently obvious, the video shows the giant wave generated by the historic March 11 earthquake crashing over the plant's seawall and engulfing the facility, with one sheet of spray rising higher than the buildings that house the plant's six reactors. Tokyo Electric Power, the plant's owner, told reporters the wall of water was likely 14 to 15 meters (45 to 48 feet) higher than normal sea levels -- easily overwhelming the plant's 5-meter seawall.

Just out from Reuters:

WATER LEAK FOUND AFTER LATEST QUAKE AT JAPAN'S ONAGAWA NUCLEAR PLANT BUT NO CHANGE IN RADIATION LEVELS-NHK

WATER LEAKS AT ONAGAWA NPP FROM REACTOR 1,2 SPENT FUEL POOLS

Onagawa is the plant which as we disclosed earlier experienced an almost critical power failure following today's new earthquake off the Sendai coast. One wonders just how much "undisclosed" news will start leaking. Surely just as the shut down of America is sending futures surging, this news should levitate the Nikkei by a few percent.