Every building has a story and the first pages have been turned for the new $53 million Watford City High School.
The school is perhaps the most emblematic new structure of Watford City’s dynamic growth and stands for its hopes for the future and for all the children — native residents and newcomers — who will pass through its doors.
The 160,000-square-foot building may not have as many feet of glass going vertical as floor going horizontal, but head custodian Nick Segneri was already pondering the job of keeping it sparkling.
“It’s going to take lots of Windex,” said Segneri, noting the lighting is a “daylight harvesting” design, with an automatic eye that can dial the wattage up or down depending on outside conditions.Horizontal? I love that word. I wonder if the head custodian make a Freudian slip or knew exactly what he was saying.
Brad Gilbertson is optimistic and knowledgeable about North Dakota's sheep industry. But even he was surprised to hear the number of sheep in the state soared 14 percent in 2015, the largest percentage increase in the nation.
"Really? It was that much? That's a big increase," the Sherwood, N.D., sheep producer and state Lamb and Wool Producers Association spokesman said of the increase.
His best explanation is that a "combination of things," including more young producers, pushed up sheep numbers in the state.
The sheep industry nationwide -- which had been in long-term decline -- continued to rally in 2015, according to the National Agricultural Statistics Service, an arm of the U.S. Department of Agriculture.
The U.S. had 5.32 million sheep and lambs on Jan. 1 -- up 1 percent from a year earlier. It was the second straight year that sheep numbers rose nationally.This is of particular interest to me. My paternal grandfather raised sheep when he homesteaded south of Newell, South Dakota.
When people look back at their childhood or youth, their wistfulness comes from the memory, not of what their lives had been in those years, but of what life had then promised to be. The expectation of some indefinable splendor, of the unusual, the exciting, the great, is an attribute of youth -- and the process of aging is the process of that expectation's gradual extinction.I disagree with the first assumption. I do agree that the process of aging may include the process of a gradual extinction of one's expectations, in some cases. But not in all cases. My father's expectations, at age 94, have never diminished. He still assumes he will win that new lottery that promises $1,000-a-day-for-life. Which he thinks is unfair to those his age. LOL.
| Date | Oil Runs | MCF Sold |
|---|---|---|
| 12-2015 | 12093 | 7240 |
| 11-2015 | 12115 | 6929 |
More than five years after Oklahoma first saw a startling spike in earthquakes linked to the disposal of huge volumes of wastewater created by hydraulic fracturing for oil, the state continues to shake at an unprecedented rate and the number of strong quakes is increasing. In 2009, there were 20 quakes of magnitude 3.0 or higher, according to the United States Geological Survey. Last year, there were 890. In 2009, no quake measured 4.0 or greater. Last year, 30 did.
Now, however, after quakes have shaken the homes of some top elected officials — and those of the worried constituents who vote for them — the state is taking new steps to address the problem, even as critics say it is too little, too late.
Last month, the Oklahoma Corporation Commission, the agency that regulates the oil and gas industry, asked oil producers operating in the northwest part of the state to reduce the amount of wastewater they are disposing of deep underground by 40%.
Scientists say natural faults in the area are being stirred by billions of gallons of water injected deep into the ground after it is used for hydraulic fracturing, commonly known as fracking. Water and chemicals are used to break oil and gas free from rock formations. A large amount of the water returns to the surface and, under federal law, must be disposed of in a way that does not affect freshwater supplies.
On Feb. 13, a quake northwest of Fairview, about two hours away, registered a magnitude of 5.1, making it the third-strongest quake in the state's recorded history. The strongest was in 2011. The second-strongest was in 1952; and scientists now say it, too, may have been induced by nearby oil production.February 20, 2016: KOCO.com is reporting -- at least not quite as many (LOL):
Since January 1 of 2016 until February 19 Oklahoma has recorded 339 earthquakes of magnitude 2.5 or greater.
Through the same period last year the state had recorded 389 quakes.
This year, seven earthquakes of 4.0 magnitude or greater have occurred in the state.
Through the same time last year, four earthquakes of magnitude 4.0 occurred.
The strongest earthquake this year was a 5.1 that occurred February 13 in northern Oklahoma.
The paper makes a compelling case for stopping the issuance of high denomination notes like the 500 euro note and $100 bill or even withdrawing them from circulation.With regard to the earlier question, how negative rates relate to a cashless society, Business Insider provides this article from last autumn: People are hiding cash in their microwaves as Sweden gets closer to being the first cashless society with negative interest rates.
I remember that when the euro was being designed in the late 1990s, I argued with my European G7 colleagues that skirmishing over seigniorage by issuing a 500 euro note was highly irresponsible and mostly would be a boon to corruption and crime. Since the crime and corruption in significant part would happen outside European borders, I suggested that, to paraphrase John Connally, it was their currency, but would be everyone’s problem. And I made clear that in the context of an international agreement, the U.S. would consider policy regarding the $100 bill. But because the Germans were committed to having a high denomination note, the issue was never seriously debated in international forums.
The fact that — as Sands points out — in certain circles the 500 euro note is known as the “Bin Laden” confirms the arguments against it. Sands’ extensive analysis is totally convincing on the linkage between high denomination notes and crime. He is surely right that illicit activities are facilitated when a million dollars weighs 2.2 pounds as with the 500 euro note rather than more than 50 pounds as would be the case if the $20 bill was the high denomination note. And he is equally correct in arguing that technology is obviating whatever need there may ever have been for high denomination notes in legal commerce.
What should happen next? I’d guess the idea of removing existing notes is a step too far. But a moratorium on printing new high denomination notes would make the world a better place. In terms of unilateral steps, the most important actor by far is the European Union. The €500 is almost six times as valuable as the $100. Some actors in Europe, notably the European Commission, have shown sympathy for the idea and European Central Bank chief Mario Draghi has shown interest as well. If Europe moved, pressure could likely be brought on others, notably Switzerland.
Sweden is shaping up to be the first country to plunge its citizens into a fascinating — and terrifying — economic experiment: negative interest rates in a cashless society.The dots are still hard to connect (counterintuitive, might be a better word) but I think I understand what the "expert" on CNBC was suggesting.
The Swedish central bank, the Sveriges Riksbank, on Wednesday held its benchmark interest rate at -0.35%, the level it has been at since July.
Though retail banks have yet to pass that negative rate on to Swedish consumers, they face increased pressure to do so as long as the rates remain where they are. That's a problem, because Sweden is the closest country on the planet to becoming an all-electronic cashless society.
Remember, Sweden is the place where, if you use too much cash, banks call the police because they think you might be a terrorist or a criminal. Swedish banks have started removing cash ATMs from rural areas, annoying old people and farmers. Credit Suisse says the rule of thumb in Scandinavia is: "If you have to pay in cash, something is wrong."
So two trends are converging on Sweden at the same time:
- Sweden is using less and less cash. Sweden is an environment of negative interest rates.
- And that means many Swedes have no way to "hide" their money.
So Sweden may become the first country whose citizens may have to accept negative interest rates (probably in the form of higher bank charges or fees) or be forced to spend their money to "save" it from those rates.
A resistance is forming, and some people are protesting the impending extinction of cash.For an even more up-to-date article, the Renegade Tribune, three days ago, posted this article:
Events are moving very quickly in the world of money and banking. One tectonic shift that is being reported on in the alternative media, but very conveniently ignored by the mainstream media is the link between the elimination of cash and negative interest rates. Introducing these two conditions into our economy will bring crushing financial hardship onto the ordinary citizen – yet few understand the critical link between the two.That linked article led to a zerohedge article.
The real reason the war on cash is gearing up now is political: Politicians and central bankers fear that holders of currency could undermine their brave new monetary world of negative interest rates. Japan and Europe are already deep into negative territory, and U.S. Federal Reserve Chair Janet Yellen said last week the U.S. should be prepared for the possibility. Translation: That’s where the Fed is going in the next recession.
Negative rates are a tax on deposits with banks, with the goal of prodding depositors to remove their cash and spend it to increase economic demand. But that goal will be undermined if citizens hoard cash. And hoarding cash is easier if you can take your deposits out in large-denomination bills you can stick in a safe. It’s harder to keep cash if you can only hold small bills.
So, presto, ban cash. This theme has been pushed by the likes of Bank of England chief economist Andrew Haldane and Harvard’s Kenneth Rogoff, who wrote in the Financial Times that eliminating paper currency would be “by far the simplest” way to “get around” the zero interest-rate bound “that has handcuffed central banks since the financial crisis.” If the benighted peasants won’t spend on their own, well, make it that much harder for them to save money even in their own mattresses.One of my least favorite songs:
Years later, when oil companies began issuing credit cards to consumers, a joke made the rounds of industry insiders: Whom did Texaco give its first credit card to? Francisco Franco.Chapter 10 is worth the price of the book, and it told me all I need to know about the current challenge facing the oil and gas industry.
If the intention is real, it may signal panic in OPEC's ranks that a resurgent Iran
Now, back to the article, from the beginning. With regard to the "agreement,"-- whose own relations with Saudi Arabia could charitably be described as frozen-- is about to make a terrible situation a whole lot worse.
Written another way, you could say that four large oil producing countries just confirmed that they won't cut output, which was the same situation that prevailed last week, before oil prices rallied on news of talks between OPEC members and Russia.The writer says the "freeze" faces three big problems:
In a sign of tentative cooperation among major oil producers, Qatar, Russia, Saudi Arabia and Venezuela announced a plan on Tuesday to freeze output at current levels, a move intended to help bolster energy prices.
The plan, albeit hardly concrete, reflects the troubled state of the oil industry.
With prices having recently slipped to new lows, major oil producers, particularly in the Organization of the Petroleum Exporting Countries, are trying to calm the markets with talk of a deal. But the proposal gives countries a potential out, a big reason oil prices gave up their initial gains on Tuesday.
While speculation focused for months on production cuts, the talk now centers on holding production steady. Even that would be helpful in a market where countries have been steadily ramping up production to record levels.
The plan represents a reversal for Saudi Arabia. As oil prices have slumped, the country, the de facto leader of OPEC, has avoided trying to manage the market through cuts, or even talking of them. Instead, it has continued to ramp up production, even as prices dropped sharply.
It is also symbolic that Saudi Arabia and Russia are now presenting a united front on oil. The two countries are geopolitical rivals, backing opposite sides in the Syrian civil war.
While major oil-producing countries have been floating ideas to the markets for months, divisions are heating up, as oil prices flirt with $30 a barrel.
Venezuela has been especially vocal about managing production. The country’s economy, which is critically linked to the prices of oil, is in disarray and its leadership has little financial backup.
Well, we know that's not going to happen.Now, it appears to be getting support from Saudi Arabia and Russia. While such big players are feeling the pain, they are in better shape, making it easier to weather the price weakness.But the producers are not committing to a deal, highlighting the difficulty of the process. The four countries said they would freeze their output at January levels only if other major exporters did the same — and that is hardly an easy sell.
Most Canadian oil sands crude production comes from very expensive mining or underground steam heating operations designed to produce consistently for decades that are costly to shutter in a downturn. Right now the crude netbacks (market price les transport costs) for these projects are more or less under water depending on transport routes. Yet production continues and new projects are still coming online. Today we estimate the netbacks (market price less transport cost) that Canadian producers are realizing.
In Episode 1 of this series we reviewed the woes of hard-pressed Canadian producers in the face of ever lower crude prices. U.S. shale producers are struggling to keep the debt collectors from their doors and cutting capital budgets left and right to survive with prices for benchmark West Texas Intermediate (WTI) trading below $30/Bbl. Yet $30/Bbl probably sounds like lottery money to their counterparts in the Western Canadian oil sands. Crude prices there for benchmark Western Canadian Select (WCS) are currently (11 February 2016) trading at a $12/Bbl discount to WTI in Hardisty, Alberta – reflecting the higher transport cost to get Canadian crude to U.S. refineries and quality differentials for heavier oil sands grades.
That means Canadian producers get $15/Bbl at best ($14.20/Bbl on February 11, 2016) for their crude in Alberta. And some of that $15/Bbl has already been spent to buy the lighter and more expensive hydrocarbon diluent that is required to blend heavy oil sands bitumen at the lease so that it can flow in pipelines. Since most of the demand for heavy oil sands crude comes from U.S. refiners – in the Midwest or increasingly on the Gulf Coast – producers have to eat high transportation costs to get their crude to market. We also discussed how oil sands extraction plants that use steam assisted gravity drainage (SAGD – used by the majority of recent projects) are difficult to shut down when economics are this bad – because the start up process is very lengthy and expensive and the process of stopping production can damage the resource reservoir.
In the circumstances cash struck producers are selling midstream assets and hunkering down even as – in some cases – they are experiencing a net cash outflow on every barrel produced. In today’s episode we take a look at the economics for a typical oil sands producer to understand just how bad things are in the Canadian oil patch these days.
