The Bakken Meme Articulated In India; Taking A Pause; Looking At Other Blogs -- June 2, 2016

The market continues to climb the "wall of worry." Oil takes an interesting turn in light of the news coming out of Vienna. This suggests to me that oil traders had priced in the expected OPEC outcome. 

Last night I had the opportunity to visit some of my favorite blogs. One of my favorite site is The Coyote Blog. I've long forgotten how I came across this blog. The writer never fails to interest me. He seems to be most fair and balanced when it comes to a) global warming; and, b) light rail. He is certainly more fair and balanced than I am on these subjects and that makes him more credible.

I was going to write that regardless, but coincidentally, The Coyote Blog has a great piece on global warming posted today. Amazing. The coincidences. Another must read: a nice link from Megan McArdle. That link will take you to Megan McArdle at Bloomberg. Note: just because I link/post something, it does not mean I have read all of it closely or whether I agree with any or all of it. I often post things because it is a) good writing; and/or, b) provides an interesting perspective.

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The Bakken Meme

Years ago, when I first started the blog, I mentioned that there are three "Bakkens." I forget how I broke the three "Bakkens" down or exactly how I described them, but they were something along this line:

a) the geographical Bakken in North Dakota and how it has changed the economy in the Williston Basin;
b) the Bakken phenomenon worldwide: how technology lessons learned by operators in the Bakken spread to the Permian, the Eagle Ford, and the Niobrara, just to name a few plays; and,
c) the Bakken political/economic handshake -- where the private sector, the public sector, the oil and gas industry, the local and state government, the media -- where "everybody" involved in the process worked in a positive manner to make it happen. Naysayers were pretty much marginalized.

Somehow, those three "Bakkens' morphed into a meme, where the "Bakken" now symbolizes something for everyone around the world.

Just how far has the Bakken meme spread? All the way to India. Look at this:

From Bloomberg:

The casualties of the U.S. shale bust are being offered a new frontier thousands of miles away in India to remake their fortunes. 

Prime Minister Narendra Modi is striving to woo investors to develop already discovered but untapped smaller oil and gas fields that hold more than India’s total annual output. 

The South Asian nation depends on energy imports, a risk Modi is seeking to tackle as the fastest expansion among major economies turns India into a center of global oil demand growth.

"Entrepreneurs who have capped their wells in Alberta or North Dakota will be looking at this kind of a story with a greater amount of interest, as there’s very little to look forward to in their own fronts,” Atanu Chakraborty, the head of oil regulator the Directorate General of Hydrocarbons, said in an interview on Tuesday. 

India isn’t fussy about who takes up the challenge -- whether foreign wildcatters or local internet tycoons looking to diversify their investments -- as long as they’re serious and have the money needed, Chakraborty said. The government is offering incentives such as simpler permits, tax sops and freedom from pricing restrictions to overcome the deterrent that low oil prices pose to boosting production.

India’s robust domestic consumption is a buffer against the risk that prices "can fall again or will remain low," Chakraborty, 56, said in the interview in his office in New Delhi.

State-run Oil & Natural Gas Corp. dominates exploration and production in the South Asian nation. Faced with maturing large fields, the company has struggled to stem the drop in India’s oil output in recent years.

The $2 trillion economy imports about 77 percent of the crude and gas it needs. The 67 already-discovered small fields Chakraborty is trying to develop hold about 625 million barrels of oil and gas.

Foreign explorers such as Canada’s Niko Resources Ltd. and Edinburgh-based Cairn Energy Plc grew businesses in India after starting with smaller fields. At the same time, the companies have faced challenges ranging from arbitration spats with the government to tax disputes, underscoring the regulatory risks that some investors fear in India.

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The Intellectual Stammerer

It was just eighteen (18) hours ago when I asked whether this was done on purpose. Now we know. It has been confirmed that this is an example of intellectual stammering. This has been reported on at least since 2011. There are numerous links: simply google "intellectual stammering." You don't even need to add "Obama."

Intellectual stammering is real; it is practiced; it is honed; it is not stuttering. Well done, Mr President.

June 1, 2016

The most well-known individual who was best at this: William F. Buckley.