Wednesday, November 11, 2015 -- Veterans Day

Active rigs:

	11/11/2015	11/11/2014	11/11/2013	11/11/2012	11/11/2011
Active Rigs	66	191	182	191	200

RBN Energy: For A New York City Gas Boost, New Pipes Or LNG?

As we stated in Part 1 of this series, New York City will need increasing amounts of natural gas as it continues its shift from oil-fired power plants and oil-based space heating. New gas pipeline capacity to and through the Big Apple has been added as recently as May 2015, but the nation’s largest city still faces wintertime gas-delivery constraints that cause costly spikes in gas and power prices. Given the challenges of adding new pipeline capacity in one of the most densely populated parts of the U.S., developer Liberty Natural Gas is planning an offshore liquefied natural gas terminal that by late 2018 would inject gas into the city’s existing pipeline network on an as-needed basis. Today, we continue our look at the economics of using imported LNG to supplement gas supplies in the Northeast.

New York, New York, the birthplace of Billy Joel, Lady Gaga, Lou Reed and countless others with hit songs named for RBN blog titles (or is it the other way around?), has been making a big push to clean up its air and reduce its carbon footprint. Among other things, the city of 8.4 million has already forbidden (through its NYC Clean Heat program) the use of Number 6 heating oil for space heating, and has given businesses and residents notice that Number 4 heating oil will be phased out next, with natural gas the go-to replacement, given its low cost, clean-burning nature, and increasing availability. Similarly, older oil-fired power plants are being replaced by new, more efficient gas-fired units.

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Williston City Crew Camps

The Dickinson Press is reporting that crew camps (aka man-camps) may soon be coming to an end if located within the geographical limit of Williston City -- the city plus one-mile "buffer zone." Some data points from the article:

• first reading of the bill last night (Tuesday); second reading yet required; commissioners vote 3 -2 to close crew camps "next year"; stop operating July 1, 2016; buildings be removed by September 1, 2016; affects 3,600 temporary workforce housing beds;
• in favor, an apartment developer who said at the time of the boom, rent for a 2-room apartment was $2,700/month; now "only" $1,404 for a two-bedroom apartment in Williston, ND; time to get rid of man-camps and raise rents in fixed facilities
• at $1,404/month: to pay off debt requires almost full occupancy and financing over 23 years
• Williston apartment buildings are 60% full, this developer says (and developers are building more)
• Williston hotels are averaging bout 55% occupancy
• exemptions exist for six camps that have permits that expire after December 31, 2015 they would be allowed to operate until their permits expire
• additional man-camps still operating in Williams County, McKenzie County

My "not ready for time prime" comments in an e-mail to the reader who sent me the story:

It was always well-known that the crew camps were "temporary." I doubt we will see another boom that would require crew camps any time in my lifetime.There is plenty of housing, hotels, motels, etc., and again, the crew camps were always seen as temporary.

I would agree that giving them a timeline to phase them out would be appropriate and I think a year is fine.

In the military families living overseas seldom got a year's notice. Generally we got our orders about 6 months in advance. This would be huge for Williston to see those man-camps gone.

I think it's a win-win for everyone but for a very few who are at the top of the food chain with regard to the man-camps. I think the oil companies and oil service companies suggesting otherwise are simply supporting their workers, sort of like coaches supporting their players when facing challenges.

Again, look at the number of beds we are talking about, 3,600. There is more than enough other housing now available. I think Williston is smart to get out ahead of this before we start seeing fixed facilities shuttered and a community blight.

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Notes To The Granddaughters

While attending a Veterans Day ceremony, while listening to the speeches, I thought back on the military books I have read, and then tried to think of the top five. Here they are, first thoughts:

• The Great War and Modern Memory, Paul Fussell, 25th Anniversary Edition, c. 1975, 2000
• Going After Cacciato, Tim O'Brien, c. 1999
• A Prayer for Owen Meany: A Novel, John Irving, c. 2012,
• Ulysses S. Grant: Memoirs and Selected Letters, multiple editions 
• The Lord Of The Rings, JRR Tolkien, 50th Anniversary Edition, c. 2004

One might add, two of Virginia Woolf's books:

• To Jacob's Room
• Mrs Dalloway