Friday, April 25, 2014

Update On Declining Number Of Rigs In North Dakota

A reliable source suggests that road restrictions do account for some of the decline in active rigs that we are now seeing in the Bakken, but he suggests the decline will continue. With most leases in the Bakken held by production, operators are moving resources to other plays such as the Niobrara and Mississippi Lime.

Again, this link to "road restrictions," a PDF; the reader says the restrictions appear to be pretty "tight" right now.

There are some other story lines here, but some of it is beyond my comfort zone and purely speculative. Suffice it to say, it will be interesting to see production numbers this summer. 

Active Rigs182186209176110

All-energy edition from CarpeDiem: Bakken boom will continue through 2039, a decade longer than originally forecast.

Also from CarpeDiem: scrap the outdated, protectionist Jones Act

The Big Slawson Case -- I Have Not Heard If The Case Was Heard As Scheduled

Link here to background.

I did not listen to the cases yesterday; I do not know if the NDIC got to this case or not. They were running behind when they started the day.

A "thank you" in advance if anyone has any information. I will bet a $1.87 cup of Starbucks coffee that the case was tabled for later, simply due to time constraints.

On another note: a reader sent this link to "road restrictions," a PDF; the reader says the restrictions appear to be pretty "tight" right now.

This would explain the decrease in active rigs in the state right now. 


For investors only: the market pulled back today and oil dropped around 2% -- not necessarily a good day for oil and gas bulls (but a buying opportunity for others, I suppose). Despite that,  two companies of interest traded at new highs: Weatherford surged 11%; MDU.

Disclaimer: this is not an investment site. Do not make any investment decisions based on what you read here or what you think you may have read here.

Finally Some Numbers On Flaring; Almost 50 Percent Of Natural Gas Is Flared On The Reservation


May 17, 2014: this is precious. The agency who oversees flaring in Fort Berthold (see below) has now announced it will devote its limited resources to study oil and gas industry impacts on developing the Niobrara. is reporting:

On the heels of a report that the Bureau of Land Management failed to inspect more than 2,000 oil and natural gas wells over a three-year period, the BLM formally announced Friday that it will study the environmental impacts of expanding development in Converse County.
The bureau said that up to 5,000 oil and gas wells could be drilled there in the next decade. 
Federal regulators failed to inspect the wells on public lands over a three-year period, the Government Accountability Office reported this week, in a reflection of rising energy production across the United States.
The agency screwed up in the Bakken and now taking that expertise to the Niobrara. By the way, it does put the Bakken into perspective. The article says that up to 5,000 wells will be drilled in Converse county in the next decade (ten years?). They will drill that many wells in the next two years in the Bakken.

Original Post
Maybe the "number" has been reported before; I don't know. Long before the mainstream media noted the problem, I calculated that the BLM-managed reservation had the biggest problem with regard to flaring. I even started a "BLM-flaring" tag. Finally, it's being acknowledged. And again, maybe it's been reported before but I can't recall.

The Dickinson Press is reporting that the reservation is the main problem for flaring in North Dakota:
Reducing natural gas flaring on the Fort Berthold Indian Reservation has more hurdles than the rest of the state, but a tribal task force says flaring can be cut in half within five years.
The reservation flares about 48 percent of its natural gas due to a lack of adequate pipelines and other infrastructure, said Carson Hood Jr., director of the Mandan, Hidatsa and Arikara Nation Energy Division.
“In the beginning, industry had not developed the infrastructure to accommodate future wells,” said Hood, one of three people heading the tribe’s flaring task force.
But the reservation has additional challenges, including working through lengthy processes with federal agencies to secure rights-of-way for pipelines, Hood said.
One would think the federal government would expedite natural gas pipelines with all the concern about global warming. 

I don't understand all the obstacles. Just shut down drilling. That will solve the flaring problem.

The solution: five years to get the flaring to half what it is now. Five years. Wow, the federal bureaucracy works slowly. Oh, that's right. It's been six years of review for the Keystone and it looks like now, the government is considering starting completely over on the Keystone review. The Obama administration really has problems with pipelines, it seems. Even the Washington Post agrees it's embarrassing.

For newbies: I've always said that flaring was a red herring. If folks were seriously concerned about the flaring problem it could be solved quickly.

Eight (8) New Permits; Active Rigs In North Dakota Continue To Fall; Credible Source Suggests It's Due To Spring Road Restrictions; If So, It Will Take Care Of Itself; Not To Be Concerned

Later: a reader sent this link to "road restrictions," a PDF; the reader says the restrictions appear to be pretty "tight" right now.

Active rigs:

Active Rigs182186209176110

Eight (8) new permits --
  • Operators: OXY USA (4), MRO (2), CLR, Petro-Hunt
  • Fields: Murphy Creek (Dunn), Chimney Butte (Dunn), Noonan (Divide), Little Knife (Dunn)
  • Comments:
Wells coming off the confidential list were reported earlier; see sidebar at the right.

Quiet daily activity report coming off a very, very busy week for the NDIC. 

Good luck to all; have a great weekend. This is a great way to end the week which I did not see earlier. Reuters is reporting:
U.S. consumer sentiment rose in April to a nine-month high as views on current and near-term conditions surged, a survey released on Friday showed.
The Thomson Reuters/University of Michigan's final April reading on the overall index of consumer sentiment came in at 84.1, beating an expectation of 83.0 in a Reuters survey and up from 80.0 the month before. The preliminary April reading was 82.6.
The headline number was the highest reading since July 2013.

Less Than 1,000 Days -- Almost


April 26, 2014: I pulled the original post for awhile; it was politically insensitive and I stepped on the toes of a few folks, so I took it offline. Some folks wrote to tell me that their feelings were hurt, so I took the post off-ine. I had not planned to re-post it but when I was sent this story, it made the decision to flip-flop too easy. LOL. 

When you see the craziness of that linked article published in a serious publication such as the SanLuisObispoTribune, it almost makes anything I write pale in comparison. Remember: this is a blog. The San Luis Obispo Tribune has a bit more legitimacy, I would think. The SLOT is reporting:
In an effort to defuse concerns about potentially explosive crude oil shipments, Phillips 66 officials said this week that they would not accept any light crude oil from the Bakken region as part of a proposed rail project at the Nipomo Mesa refinery.
In a past interview, company officials said rail shipments to the refinery might include a small amount of oil from the Bakken field in North Dakota or Canada — a plan that raised alarm, as there’s concern that Bakken oil might be more volatile than other crudes.
It's gonna be a long 999 days.

[The linked story is this is a great lesson for the oil industry. The article notes that even after COP said they would not bring Bakken oil to the refinery, the activists moved the goal posts, and said they didn't want any CBR coming to the refinery. COP's first error was thinking they could have a meaningful discussion with crazy people. The second was caving in.]


Read more here: 
Original Post

The countdown clock at the sidebar at the right is finally under 1,001 days. By this time tomorrow, we will be under 1,000 days.

This is huge. It's the "lead story" at the Drudge Report. It seemed to take forever to get to 1,000 days but I assume like any long, cross-country trip, the last 999 days will seem to go even more slowly.

Disclaimer: this is not a political blog. Do not make any political decisions based on what you read here or what you think you may have read here. Do not "register" or "not register" to vote based on what you read here or what you think you may have read here.

Does More Need To Be Said?


April 26, 2014: they're gonna be burning a lot of coal in China if this succeeds. Tesla plans to sell as many cars in China as in the US in the next three or four years

Later, 12:45 pm central time: I don't recommend it unless you have a lot of time to waste, but the comments to the article linked below reveal how little science folks use these days in framing their arguments and to the degree that "emotion" is used to make decisions.
When one goes through the comments, it is amazing how many folks argue for solar power. When I see an individual advocating solar power, I know that the individual is either a) ignorant about energy; and/or b) has a very, very, very long time horizon -- at least one century or one hundred years, whichever comes first.

After three decades of governments worldwide incentivizing solar power, the total amount of global energy supplied by "solar power" is probably less than a percent. Wow, was I ever off. Quick, what do you think? How much global energy is supplied by "solar power"? In percentage? 10%? 5%? 3% 1%?

The answer is here. I've also posted the answer at the bottom of this post in case you don't want to go to the link and search.

Okay, so we've gotten that out of the way.

The next question is, of course, if we all switched to EVs today (here in the US), would the "grid" be able to handle it? Not even close. We can hardly handle what we require now:
Last winter, bitterly cold weather placed massive stress on the U.S. electrical system―and the system almost broke. On January 7 in the midst of the polar vortex, PJM Interconnection, the Regional Transmission Organization serving the heart of America from New Jersey to Illinois, experienced a new all-time peak winter load of almost 142,000 megawatts.
Eight of the top ten of PJM’s all-time winter peaks occurred in January 2014. Heroic efforts by grid operators saved large parts of the nation’s heartland from blackouts during record-cold temperature days. Nicholas Akins, CEO of American Electric Power, stated in Congressional testimony, “This country did not just dodge a bullet―we dodged a cannon ball.”
Environmental policies established by Congress and the Environmental Protection Agency (EPA) are moving us toward electrical grid failure. The capacity reserve margin for hot or cold weather events is shrinking in many regions. According to Philip Moeller, commissioner of the Federal Energy Regulatory Commission, “…the experience of this past winter indicates that the power grid is now already at the limit.”
A second group of comments seem to center on whether the numbers are correct. Yes, they are correct. But it's worse (Don has done the math): if you get 210 miles for 75 lbs of coal that is 2.8 miles per pound of coal. At that rate, if you drive a average of 20,000 miles per year, you need 7,142.8 lbs of coal. I assume one would carry the ash in one's trunk. [By the way, the 210 miles on 75 pounds of coal is based on 70 mph and an ambient temp of 0 degrees while driving on I-98 during the winter in North Dakota. Of course, one couldn't drive cross-country in North Dakota because there are no reasonably locatable charging stations.] Wow, three-and-a-half tons of coal for one year of driving a Tesla.

Original Post

From a contributor over at Seeking Alpha:
I'll just jump right into it here: it takes a whopping 35 kg of coal to charge a Model S one time in China. Imagine that; 75+ pounds of coal needed every single time a Model S needs a full charge in China is the cost of its "zero emissions." That is a truly astounding amount of perhaps the dirtiest, least environmentally-friendly fuel on the planet, and anyone who thinks the Model S is zero-emissions is sadly misinformed or naïve. Burning 75 pounds of coal to charge one car, one time is sustainable from a coal supply perspective, as coal is plentiful and cheap, but when you consider the environmental cost, I doubt those who want the S for its environmental impact would be happy to learn this. I am not someone who is overly worried about environmental impact of my daily life, but I find this to be reprehensible.
Source: SeekingAlpha contributor.

Question and Answer

After three decades of governments worldwide incentivizing solar power, the total amount of global energy supplied by "solar power" is probably less than a percent. Wow, was I ever off. Quick, what do you think? How much global energy is supplied by "solar power"? In percentage? 10%? 5%? 3% 1%? 

The answer is here.
To the point: The latest BP Energy Survey estimates solar PV accounts for only 0.17% of the global market
That's the smallest component of any major source.
By comparison, oil accounts for 33%, coal comes in at 30%, and natural gas provides 24%. On the lower end of the scale, there's hydro power at 7% and nuclear at 4%. Even wind and geothermal power (if you've ever been to Iceland, volcanoes provide the power) top solar PV, rounding off the list at just about 1% each.

For Investors Only: AEP Blows Past Estimate -- Beats By 25 Cents; Ford Disappoints

Reporting today:
  • American Electric Power (AEP): forecast 93 cents; see below --
  • Ford (F): forecast 31 cents; before market open;
American Electric beats by $0.25, beats on rev; raises FY14 EPS above consensus; reaffirms FY15. FY16 EPS guidance: Reports Q1 (Mar) earnings of $1.15 per share, $0.25 better than the Capital IQ Consensus Estimate of $0.90; revenues rose ~21% year/year to $4.6 bln vs the $4038.65 mln consensus. 

Ford: profits fall 39%; weak around the globe.
Ford Motor Co.'s worldwide sales rose in the first quarter, propelled by growing strength in Asia and Europe. But weakness in North America dragged down the company's profit.
Its earnings missed Wall Street's expectations, while revenue beat. Ford shares fell 3 percent in premarket trading.
Ford's first-quarter net income fell 39 percent to $989 million, or 24 cents per share, down from $1.64 billion, or 41 cents per share, in the January-March period a year ago.
Excluding a one-time charge of $122 million for plant closings in Europe, Ford earned 25 cents. That was far short of Wall Street's expectations. Analysts polled by FactSet forecast earnings of 31 cents per share.

Water Study In Western North Dakota

The Dickinson Press is reporting:
“Some of it was absolutely amazing,” said Carl Dahlen, an NDSU extension beef cattle specialist.
“You couldn’t buy water that pure in a store. That’s interesting to see the variation out there.”
Actually, if you read the entire story, there's a lot more to the article. It's a baseline study that was focused on natural contaminants in the water due to the drought and did not look at oil field contaminants.

Friday Morning Musings; Mortgage Lending Plunges To 14-Year Low; Tiger's Ex Is A Coal-Digger (Aghhh!)

I am an inveterate optimist. We live in interesting times. The headline story on the front page of The Wall Street Journal, the front page of The New York Times, and a headline story in Yahoo!News suggests things are starting to pile up for the administration.

It's hard to believe, but the dithering on the Keystone probably portrays the administration as well as anything. Even The Washington Post editorial staff said the President's dithering was embarrassing. The Post went so far as to tell the president to approve the Keystone and do something "meaningful" regarding climate change. When The Washington Post turns on the president, well, it gets one to thinking.

The headline story in The New York Times today: President Obama suffers setbacks in Japan and the Mideast. The opening paragraph: "President Obama encountered setbacks to two of his most cherished foreign-policy project on Thursday, as he failed to achieve a trade deal that undergirds his strategic pivot to Asia and the Middle East peace process suffered a potentially irreparable breakdown." Irreparable as in, well ... irreparable.

Then, almost a mocking headline in Yahoo!News: John Kerry issues a final warning to Russia. I believe after that final warming, President Putin went golfing. Or maybe that was President Obama. No longer matters. John Kerry has given Russian a final warning and that should probably bring the Ukraine back to where it was pre-Olympics. 1939. [Later, 8:54 p.m. central time: the headlines suggest the Ukrainians expect an imminent attack by the Russians. If indeed the Russians do "invade the Ukraine" this will go down as one of the worst diplomatic bungles in modern history. There will be lots of soul-searching, lots of Monday-morning quarterbacking. It will make the Benghazi tragedy look like a Sunday school picnic. Folks need to remember two things: a) the Ukraine has been part of Russia since the late 1700's; and, b) the Russians were originally only interested in the Crimean, which was essentially the Gitmo Bay, which we still hold on Cuba. But Mr Putin called Kerry/Obama sabre-rattling bluffing, only to lead where we are now. I'm in the minority on this but I never thought the US had a dog in this fight to begin with. Maybe Europe did (but I'm not convinced), but certainly the US did not. Kerry should have demanded an environmental impact study before pushing the Russians to war.]

But the story that got me started this morning was the headline, top story on the front page of today's The Wall Street Journal: demand for home loans plunges. It wasn't the data so much that hit a nerve, it was the verb in the headline: plunges. I don't often see that verb used in the conservative WSJ when "declines" would have done just as well. Earlier this week it was reported that new home sales declined almost 15%, the worst since July, 2012, and now we get this story: "Mortage lending declined to the lowest level in 14 years in the first quarter as homeowners pulled back sharply from refinancing and house hunters showed little appetite for new loans, the latest sign of how rising interest rates have dented the housing recovery." It doesn't take much, does it? Fed Chairwoman wants a return to inflation to get the economy moving and I guess the shot across the bow was the increase in mortgage rates.

I make simple arithmetic errors but I think "the lowest level in 14 years" pre-dates the stock market crash of 2008 and the resulting economic free-fall that almost destroyed the global economy.

I'm trying to think of some good news. We got some good news yesterday when Reuters suggested the surge in first time unemployment claims -- 24,000 -- far surpassing anything analysts forecast -- was nothing to worry about.

Maybe we will just end on this note. Tiger Woods, with his new gal-pal is now double-dating with his former wife, Elin Nordegren, who is now dating a man twice her age, the coal-tycoon, billionaire boyfriend, who happens-to-live-next-door, Chris Cline. I would not have posted that but it had the word coal in the story and that got me excited. Woods is 38. Elin's new boyfriend is not quite twice her age but close enough to write it that way. [A reader noted that this makes Tiger's ex a "coal-digger."]


ObamaCare -- UPS will record a $1.05 billion pre-tax charge in the second quarter as it moves about 125,000 unionized package delivery employees off its own health-care plan and into multi-employer health-care plans.
The change will help the company to avoid benefit costs that were expected to increase at about 8% each year, UPS said. During a conference call with analysts on Thursday, Chief Financial Officer Kurt Kuehn said that the company had already factored the costs—and the charge—into its earnings forecast for the year.
On another ObamaCare note, Oregon has ditched its state system -- could never get it to work -- cost $134 million -- Oracle couldn't get it to work. Makes one wonder. Going to the federal system will cost about $5 million. It begs the question: why didn't they do that in the first place? CBS is reporting:
Oregon's exchange is seen as the worst in more than a dozen states that developed their own online health insurance marketplaces. The general public still can't use Cover Oregon's website to sign up for coverage in one sitting.
Instead, Oregonians must use a time-consuming hybrid paper-online process to sign up for insurance - despite $134 million the state paid Oracle Corp. to build the online exchange. Oregon received a month-long enrollment-deadline extension because of the technology problems.
Several other states experienced major problems with their exchanges, but only one has chosen to replace its site. Maryland recently decided to adopt the technology used on Connecticut's successful exchange.
And you know the interesting thing: I will still have folks write to tell me it's all the GOP's fault. 
For newbies: when you see asterisks, you can assume more will be added later. Stay tuned. We haven't even gotten to global warming climate change extreme weather global cooling or ObamaCare, the Affordable Care Act.

Permian Pipeline System -- RBN Energy; Permian Now Exceeds 1.5 Million BOPD; Verizon All Over The News Today -- Not Necessarily Due To Good News

Active rigs:

Active Rigs183186209176110

RBN Energy: Permian Pipeline system update --
The next six months look set to be quite turbulent for Permian Basin producers. Crude production is now over 1.5 MMb/d and supplies trying to get to market are facing congested pipelines leading to price discounts. New capacity is due online in June in the shape of the 300 Mb/d Magellan/Occidental joint venture BridgeTex pipeline. But many Permian producers are also awaiting the build out of gathering systems to deliver their crude to regional hubs in Crane, Midland and Colorado City where the major takeaway pipelines originate. At least a dozen of these systems are currently being developed. Today we start a new series on the build out of Permian gathering infrastructure.
Bakken pricing: a reader over at The Bakken Shale Discussion Group provided a new source for obtaining pricing for Bakken crude oil: Platts.
I think Platts still requires a subscription.

For those who do not have access to Platts, there might be two other places to find Bakken spot price:

The Wall Street Journal

John Kerry issues his "final" warning to Russia. The result? Ukranian forces quickly halted their advance after Russia activated the thousands of troops it has massed just across the border. I believe John Kerry is on the side of "the Ukranina forces" but he could flip-flop. The situation is fluid.

amazon tries its own deliveries. Amazon is testing its own delivery network for the final leg of a package's journey to consumers, putting it closer to same-day shipping.

Oregon "may" give up on health website. Based on the LA Times story, this was all but a done deal. Something like $243 million spent on this website and not one person was able to sign up for ObamaCare of whatever they call it in Portland.

Reid becomes GOP campaign fixture. Obama, Reid, and Boehner: has it come to this?

Affirmative-action ruling's reach is seen as limited. It will probably be the only thing talked about on David Gregory's "Meet The Press" this Sunday.

Let's see: we have media outrage over radioactive "socks" in the Bakken that have about as much radioactivity as a crate of bananas, and then we learn that the radioactive release at a New Mexico site was preventable. A radioactive release above ground during a February accident at an underground federal nuclear-waste repository in New Mexico was preventable, according toMr Obama's own energy department. I wonder if The Dickinson Press will publish that. Probably not.

A North Carolina judge has given two school districts temporary reprieve from part of a new law that ends teacher tenure, potentially upending the controversial policy a year after it was adopted by state lawmakers.

Didn't we just have stories of avocado shortages resulting in higher prices of guacomole dip. Now, it's a lime shortage that is putting the squeeze on margaritas. I would not have posted this note, but we have a lemon tree in California that produces so many lemons we have to give them away to local delis in the neighborhood.

This must be reassuring. Obama reassures Japan on disputed islands. That, and $1.87 will get you a cup of coffee at Starbucks on Glade and 121.

GE in talks to buy Alstom unit. I blogged about that yesterday. Don alerted me to the story.

This will get a stand-alone post. ObamaCare -- UPS will record a $1.05 billion pre-tax charge in the second quarter as it moves about 125,000 unionized package delivery employees off its own health-care plan and into multi-employer helath-care plans.


Wow, ATT signed up something like 300,000 new subscribers this last quarter. I forget the number. Oh, I was way off. A million new subscribers. Who would have thought? I would not have posted that but I see the darling of Wall Street in telecom, Verizon, for the first time ever, lost cellphone customers.

From The New York Times:
AT&T added 1,062,000 wireless subscribers in the quarter. That includes 625,000 smartphones and tablets in “postpaid” plans. These are the high-value customers on contracts or long-term installment plans. Wireless service revenue grew 2 percent to $15.4 billion. Total wireless revenue, including phone and tablet sales, grew 7 percent to $17.9 billion.
From The Wall Street Journal:
Verizon Communications Inc. early this year lost wireless customers for the first time, as its rivals launched a bitter fight for new subscribers.
The U.S.'s largest wireless carrier said it lost roughly 138,000 net postpaid phone customers in the first quarter, a setback for a company that has steadily added subscribers in recent years. Verizon made up for the loss in phone customers by adding 634,000 tablet users. But the resulting net addition of 539,000 postpaid customers was eclipsed by the 625,000 added by AT&T Inc., the first time Verizon has added fewer customers than its rival since 2010, when AT&T still had exclusive rights to the iPhone. "To see Verizon actually losing phone customers is a shocking turnaround," said Craig Moffett, a senior research analyst at MoffettNathanson. "Verizon has been the growth leader of the industry every quarter since they got the iPhone (in early 2011)."
I talked about this the other day when I posted AAPL's earnings. Telecoms aren't making their money off tablets; they're making their money off smartphones with those expensive data plans.

Heard on the street: Verizon earnings ring up phone-subscriber losses:
For U.S. telecom companies, the first quarter has shown that even the mightiest can't stay dry amid a rising tide of competition.
Verizon Communications said Thursday it added a net 539,000 postpaid subscribers in the first quarter. That was better than analyst estimates. But it reflected a net gain of 634,000 tablets, meaning the No. 1 carrier by subscribers lost handset customers, the most lucrative kind.
Postpaid churn, a measure of how many customers leave, came in at 1.07%, compared with 1.01% a year earlier. Verizon's results come against a backdrop of increasingly aggressive promotions initiated by upstart T-Mobile US. These include its January pledge to cover fees other carriers charge to end a contract early. T-Mobile's efforts have targeted Sprint S and AT&T but the aftershocks have extended to Verizon.
And AT&T seems to have feasted at Verizon's expense.
On Tuesday, it said it added a net 625,000 postpaid subscribers of which 449,000 were tablets, meaning it added more handsets in the first quarter than in all of 2013. While both carriers reported better wireless-services margins—52.1% versus 50.4% a year earlier for Verizon and 45.4% versus 43.2% for AT&T—the latter's margins were likely aided by the way it accounts for new plans that separate phone and service costs. Without the benefit of these new plans, which account for more handset revenue up front, margins would have fallen to 41.8%, according to New Street Research.

Apple plans another large debt sale. A year after it pulled off a then-corporate record $17 billion bond sale, Apple's plans to raise a "similar" sum this year highlight strong investor demand

The Los Angeles Times

Verizon Wireless sells out customers with creepy new tactic.
As far as corporate notices go, they don't get much creepier than this recent alert from Verizon Wireless.
The company says it's "enhancing" its Relevant Mobile Advertising program, which it uses to collect data on customers' online habits so that marketers can pitch stuff at them with greater precision.
"In addition to the customer information that's currently part of the program, we will soon use an anonymous, unique identifier we create when you register on our websites," Verizon Wireless is telling customers.
This identifier may allow an advertiser to use information they have about your visits to websites from your desktop computer to deliver marketing messages to mobile devices on our network," it says.
That means exactly what it looks like: Verizon will monitor not just your wireless activities but also what you do on your wired or Wi-Fi-connected laptop or desktop computer — even if your computer doesn't have a Verizon connection.
The company will then share that additional data with marketers.

Just how liberal is the LA Times? This is not an op-ed. This comes under something the LA Times calls "analysis": Judge Sotomayor gets it right in Michigan racial preference dissent. I don't think they use racial preference in California any more for University of California, and Hispanics now outnumber "whites" at UCLA. I think Asians outnumber everyone at UCLA. I stand with Richard Sander and Stuart Taylor, Jr.  The court's ruling was not even close; Ms Sotomayor was on the losign side 6-2.