Wednesday Morning Links, News, And Views

The sequester? Thank goodness for Matt, otherwise we would not have learned that the US government spent $81,000 on new televisions for GITMO just two days after furloughing civilian workers due to the sequester. Quick: how much of the money "withheld" by the sequester has been "reinstated"? About 77% and rising.

I apologize.

I got off to a late start this morning, and there's a ton of news -- nothing earth-shattering, but it all adds up.

Some of the things we will be discussing:

• RBN Energy has a great article today on pipeline infrastructure and the Bakken; a must-read
• a long article on ENB's Flanagan; my hunch is this won't be easy for ENB, and it's probably a 60-40 chance it won't be approved
• more spin from the AP on the economy; it's really quite remarkable how far apart folks are on some basic data
• Saudi increased production despite all the talk to the contrary; talk and acts diverge
• the IPs of the wells coming off the confidential list have been posted; OXY USA reports another mediocre well, at best

Let's get started.

Active rigs: 189 (steady)

RNB Energy: Koch proposes a new pipeline from the Bakken to Hartford and Patoka, IL; I don't think it will fly

Saudi increases production (May over April):

Oil production in Saudi Arabia, the world's largest exporter of crude, rose to 9.657 million barrels a day in May, compared with 9.31 million barrels a day a month earlier, while exports edged 4.6% higher during the same period, official data showed Wednesday.

The kingdom exported 7.789 million barrels a day of crude oil and condensate in May, up from 7.444 million barrels a day in April, according to figures posted on the Joint Organization Data Initiative, or JODI, website.

Internal consumption is increasing: Saudi Arabia used 547,000 barrels a day in power stations and water-desalination plants in May, down from the 559,000 barrels a day during the corresponding period in 2012 but up from the 378,000 barrels a day consumed a month earlier.

In May OPEC kept its oil production ceiling at 30 million barrels a day in a widely expected move that members described as an easy decision. But concerns about the growing threat from shale oil overshadowed the group's otherwise smooth meeting.

Oil by rail is here to stay -- WJS. A stand-alone post later.

In fact, the evidence is mixed on whether pipelines or railroads are safer for transporting oil, and may not be relevant, industrially or politically. Rail shipping is likely to keep growing no matter what happens with the Keystone pipeline, over which President Obama has been perfecting his Hamlet impersonation.

In case you missed it late last night, if you are not familiar with PJM, you should be.

Quick WSJ Links

Something tells me Jonathan Welsh's article on how to avoid "windshield dings" will not help drivers in the Bakken. The solution: clear plastic NASCAR windshield racing sheets.

Remember: the British Open this weekend.

Goldman Sachs' profit doubles. President O'Bama has been good to almost all investors. Coal producers are about the only exception. Maybe investors will push for a third O'Bama term.

Rents are soaring in the Bay Area. Say what? I thought we had rent control.

Here we go again; I thought "they" learned their lesson after Enron. Barclay's and four of its traders fined almost half a billion dollars for manipulating electricity prices in California, other western markets. 

Corn prices are rising.

This story seemed to come to an end fairly quickly: Flying J settles with truckers.

Freight trains and brake failures are quite common, apparently. There seems to be a simple fix.

Nissan delays introduction of its first luxury electric car; betting on more advanced, cheaper technology around the corner.

Top story, Front Section: the GOP caves. And they got nothing out of it.

As I noted the other day: it looks like it is starting. Inflation up 0.5%. But for investors, a little inflation is good.

It's interesting -- just a quick random note -- I get a bit of grief for my positive comments about the Drudge Report. I find it interesting that many stories I read on The Drudge Report show up two or three days later in the mainstream media.  I will say it again: without The Drudge Report there would be a lot of stories we would never hear about.

There are several high-profile folks slamming "hold-your-ground" laws, including some guy named Eric Holder. In fact, that defense was never used in the recent high-profile trial. It was a simple "self-defense" argument that even Jeantel could understand.

Wow, there is so much news in today's Journal; I just don't have time to post/link it all.

On to the stand-alone posts.