Saturday, May 16, 2015

What Do These Five (5) States Have In Common? -- May 16, 2015

Nevada, Vermont, North Dakota, Ohio, and Wisconsin?

These are the top five states where the middle class is being "destroyed."

Clearly North Dakota is the outlier:
  • Nevada: swaths of homes being foreclosed
  • Vermont: senior citizens feeling the economic crunch
  • North Dakota: Bakken middle class --> Bakken millionaires, raising cost of living for all
  • Ohio: rust belt
  • Wisconsin: governor has gutted the unions
The problem with all the 30-second sound bite on North Dakota -- the Bakken economy is predominantly felt in three sparsely populated counties in western North Dakota. I can't speak to the other states but the 30-second sound bites sound reasonable.

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Q: What's Wrong With This Picture?
A: At Least Two Things, Maybe Three

US Census Bureau reports: 

California Wind In A Heap Of Trouble For Anyone Paying Attention -- May 16, 2015

[A huge "thank you" to a reader for sending me this link; this is an incredible story.]

Regular readers know that I feel very strongly that wind farms have no redeeming features. None. Nada. Nil. Zilch.

Second, only through blogging did I learn what nameplate capacity means.

Finally (well, maybe not finally, but enough for now), long term readers know that I feel strongly that wind farms are a huge scam.

Now we get this report from Platts regarding wind energy in California:
Wholesale power sales from wind generators in California in the first quarter of this year fell an eye-opening 32.7% compared to sales in the first quarter of 2014.
Forty-eight wind farms in California sold 1.304 million MWh of wind power in the California Independent System Operator market in the first quarter of 2015, compared to 1.936 million MWh sold in Q1 2014, according to data filed with FERC and other government agencies and compiled by Platts.
The roughly 630,000 MWh sales decline came despite a 197-MW increase in available wind capacity during the year. Capacity grew from 4,275 MW to 4,472 MW by the first quarter of 2015.
The state’s wind generators thus operated at a capacity factor of just 13.5% in the first quarter of 2015, a significant drop from the 21% capacity factor at which they operated in the first quarter of 2014.
The FERC wholesale wind power sales data shows that 42 out of 44 wind farms in California that had sales in the first quarter of 2014 have seen their Q1 2015 sales decline. There were four facilities that had no sales in Q4 2014.
One of the biggest declines has come at Pattern Energy’s 265-MW Ocotillo wind farm in the Imperial Valley, in the state’s most southern region. Ocotillo, which sells power to San Diego Gas & Electric, saw its sales fall 45.5% in the first quarter of this year over the first quarter of last.
So, let's parse this:
  • consultants usually provide the information their client wants to hear
  • there has been no global warming for 19 years; that's agreed by all
  • regardless of whatever global warming there might have been, it would not have been enough to affect the winds; any change in winds was due to "contemporary factors" such as the El NiƱo effect
  • developers over-promise nameplate capacity; wind energy (and solar energy) never comes close to nameplate capacity
Bottom line: if there's a significant decrease in wind energy in California, there needs to be another explanation than global warming changing the wind patterns in California.

So, going back to the story linked above.

If wind energy is a scam (wind farms for tax breaks) what could possibly explain the significant decline in wind energy knowing that trying to explain it with global warming is beyond "ridiculous."

Think about it. See if you can come up with a reason why wind energy in California has dropped off so much.

Think.

You are absolutely correct. If the developers got their money out of the farms already through tax credits, etc., not much reason to worry about preventive maintenance. My hunch is that lack of preventive maintenance is causing the significant decrease in energy provided by the wind farms.

[After the original post, a reader sent this, confirming what was already surmised:
Studies of UK and Denmark wind farms suggest their actual economic lives appear to be 12-15 years due to wear and tear. One of the unanticipated problems that arose with larger turbines is premature cracking failure of the main axial bearing(s). These failures arise from two very difficult engineering conditions. First is uneven loading. Wind speeds increase with altitude so the three blades, which span great distances, are never evenly loaded. The bearing(s) wobble under the tremendous forces generated. Second, braking when wind speed exceeds 25mph suddenly loads reverse torque on the axial side where previously unloaded (and wobbling) individual bearings are in natural misalignment to their trace. If things go ‘well’, cracking can be caught before catastrophic failure. It is expensive to repair. The blades must be detached so the turbine can be dismounted and sent back to the factory. 
Developers and promoters of wind farms, of course, base their economic projections on 30-year wind turbine lives.]

The consultants are a whole lot smarter than I am but they have clients to serve, vested interests as it were, and to blame prevailing winds on global warming is simply preposterous.

But even worse, if it is due to global warming, and global warming is already affecting wind patterns, it means that wind farm developers need to re-do all those wind studies before building more wind farms.

On top of all this, it makes the story at this link even more troubling. Wind energy is not going to be make up the hydroelectric power shortage due to California's drought.

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Wind Turbine Life Spans

More on the subject of wind turbine life spans, and this was reported back in 2012:
Scotland's landscape could be blighted by the rotting remains of a failed regeneration of wind farms.
A study commissioned by the Renewable Energy Foundation has found that the economic life of onshore wind turbines could be far less than that predicted by the industry.
The “groundbreaking” research was carried out by academics at Edinburgh University and saw them look at years of wind farm performance data from the UK and Denmark.
The results appear to show that the output from windfarms — allowing for variations in wind speed and site characteristics — declines substantially as they get older.
By 10 years of age, the report found that the contribution of an average UK windfarm towards meeting electricity demand had declined by a third.
That reduction in performance leads the study team to believe that it will be uneconomic to operate windf arms for more than 12 to 15 years — at odds with industry predictions of a 20- to 25-year lifespan.
I think that's exactly what we will see in the US in 2020; I already saw it among the wind farms around Indio, California.

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Wind Farm Pricing

National Review is reporting:
Evidence from market data suggests that wind power producers will accept prices down to about negative $35 MWh before they shut down, since marginal operating costs are very low for wind power we can conclude that the subsidies are worth about $35 – $40 for each MWh of wind output. 
Subsidies do this sort of thing – distort the market and lead to waste – and of course to some degree distorting the market is just what is intended when policymakers offer a subsidy. Only usually it isn’t so easy to see the evidence of the waste created by the subsidies. Wind turbines that operate more hours require more maintenance, so these hours spent producing negative-value electric power do consume real resources. At the same time, the conventionally-fueled generation that is forced offline temporarily will also face additional “wear-and-tear” and require additional maintenance because of the effects of shutting down and then restarting the machines. This extra wear-and-tear and extra maintenance also represents wasteful use of resources due to PTC- and REC-subsidized power production. 

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Taxpayers Pay Wind Farms Not To Produce Electricity

Fox News is reporting:
Wind farms in the Pacific Northwest -- built with government subsidies and maintained with tax credits for every megawatt produced -- are now getting paid to shut down as the federal agency charged with managing the region's electricity grid says there's an oversupply of renewable power at certain times of the year.
The problem arose during the late spring and early summer last year. Rapid snow melt filled the Columbia River Basin. The water rushed through the 31 dams run by the Bonneville Power Administration, a federal agency based in Portland, Ore., allowing for peak hydropower generation. At the very same time, the wind howled, leading to maximum wind power production.
Demand could not keep up with supply, so BPA shut down the wind farms for nearly 200 hours over 38 days.
 The one place wind farms were probably most redundant: the Pacific Northwest where there was already an abundance of hydroelectric power.

An Example Of How Operators Can Minimize Production During Period Of Slump In Oil Prices -- May 16, 2015

This is for newbies, an example of how operators can cut back production during period of slumping oil prices:

The well:
  • 24799, A, CLR, Rollefstad Federal 7-3H-1, Antelope, no test date, probably completed around 2/14; cum 128K 3/15; 
Production profile:

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
SANISH3-2015713231430110432893071218
SANISH2-20151332553310258657705651119
SANISH1-20151949405186522750594921138
SANISH12-2014235877567264357865149637
SANISH11-2014225841616681679897767222
SANISH10-2014311511915441440723907221111796
SANISH9-2014292021619991478732098296872411
SANISH8-2014281452314662880916746128623884
SANISH7-2014311575915597702422426177174709
SANISH6-20143013710134541027923278166946584
SANISH5-20143016935169461632019928172942634

This is why it's literally impossible to predict what the Bakken will produce any given month.

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This may be of interest to some readers along the same line: link here. The graphs are of interest; I'm not sure about the commentary. I'm posting it only for archival purposes. I have no idea about the veracity of the graphs.

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Grilling Teriyaki Steak 

Link here. 

Marinade (overnight, if possible)
  • 120 mL soy sauce or tamari 
  • 120 mL dry sherry or mirin 
  • 60 mL peanut oil 
  • 1-2 cloves garlic, finely minced 
  • 1 tsp orange zest 
  • 1-2 tbsp grated fresh ginger 
800g-1kg skirt steak (around 200g-250g per person)

Random Update Of An Enerplus Well In Antelope Oil Field -- May 16, 2015

In these posts, I often make typographical and factual errors. I correct them when I am alerted to them. If this information is important to you, go to the source.

The well that first caught my attention on this pad:
  • 27591, 2,079, Enerplus, Monarch 152-94-32D-29H, 44 stages; 8.8 million lbs, a short lateral (one section / 640 acres); t12/14; cum 433K 10/18;
Target: C Zone in the middle Bakken. Trip gases as high as 3400 unis. Zones A, B, C, and E were discussed in the narrative. 

Sundry form received October 3, 2014, to place NGL units to reduce flaring, as well as a large-volume de-ethanizer (stabilizer unit).

Production profile: 

PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
SANISH4-20150000000
SANISH3-20150000000
SANISH2-20150000000
SANISH1-201510127391342523532663700
SANISH12-201431612276086621032949021999568265
SANISH11-201429024591430114101141


This well is on a 5-well pad. The other wells:
  • 27590, 1,608, Viceroy 152-94-32D-29H TF, one section / 640 acres, t12/14; cum 492K 10/18;
  • 27589, 171 (no typo), Swallow Tail 152-94-32D-29H, Three Forks, 2nd bench, one section / 640 acres, 39 stages; 9.4 million lbs; t11/14; cum 456K 10/18;
  • 27588, 1,867, Snapper 152-94-33C-28H, 1280 acres, t11/14; cum 428K 10/18;
  • 27587, 2,188, Softshell 152-94-33C-28H TF, 1280 acres,  39 stages, 9.3 million lbs, t11/14; cum 727K 10/18;
Summary: it appears the "butterfly" wells on this 5-well pad will go directly north, and be 640-acre spacing. To date, there are three "butterfly" wells. The "turtle" wells will swing to the right (east) and go north, and be in 1280-acre spacing. There are two "turtle" wells on this 5-well pad so far. It appears that the wells will be fracked with 39 stages, using a huge amount of sand, in the range of 9.5 million lbs per sound. Although the Three Forks second bench had a low IP, it looks like it's a pretty good well.

The production profiles:

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  • 27588, 1,867, Snapper 152-94-33C-28H, 1280 acres, t11/14; cum 348K 3/17;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
SANISH3-20150000000
SANISH2-20150000000
SANISH1-201514252431751175900
SANISH12-201491145812112165117761105006002
SANISH11-20142441810410322344731299031299

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  • 27587, 2,188, Softshell 152-94-33C-28H TF, 1280 acres,  39 stages, 9.3 million lbs, t11/14; cum 619K 3/17
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
SANISH3-2015314007740245352158946542940
SANISH2-2015263257132469311444834410650
SANISH1-2015264342843557448558628032839
SANISH12-20142434793353624302469712200221181
SANISH11-20142438036367892036025746025746

**********************************
  • 27589, 171 (no typo), Swallow Tail 152-94-32D-29H, Three Forks, 2nd bench, one section / 640 acres, 39 stages; 9.4 million lbs; t11/14; cum 382K 3/17;
PoolDateDaysBBLS OilRunsBBLS WaterMCF ProdMCF SoldVent/Flare
SANISH3-2015313256632504477248718448980
SANISH2-2015252444824176341833370304630
SANISH1-2015273030030897598340905023746
SANISH12-20142436141358736834487911339631632
SANISH11-2014243731536777295341358601358

********************************
  • 27590, 1,608, Viceroy 152-94-32D-29H TF, one section / 640 acres, t12/14; cum 419K 3/17:
DateOil RunsMCF Sold
3-20153426247108
2-20152715733721
1-2015299940
12-20145026117165
11-201431070

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The wells in question are on a 5-well pad in Antelope oil field. Note their relationship to Clarks Creek, an incredibly good field. Also note that this area is an unusual area in the Bakken with 640-acre spacing. I did not show it but many (most?) of these areas are 1280-acre spacing units. The arrows show that three of the wells will go north in 640-acre spacing, and two horizontals will swing to the east and go north in 1280-acre spacing.

A Look At 2016 ObamaCare Premiums -- May 16, 2015

Investor Business Times is reporting:
Those who think their current health insurance plans are too expensive should brace themselves for 2016, at least based on the recent predictions of one healthcare executive. Health insurance companies are likely to demand even more money in the coming year from people seeking to buy healthcare.
"You cannot have every doctor in your network, very low copays, broad benefits and lower costs. It just can't work that way," [an analyst] said, calling such demands, including for insurance companies to charge lower premiums or monthly fees that people pay for to have insurance coverage, "unrealistic."
Under the Affordable Care Act, landmark legislation frequently referred to as Obamacare, more than 14 million people in the United States gained health insurance. Nearly 12 million people signed up for health coverage plans on exchanges created under Obamacare, and the law, despite being controversial, has been widely credited with making health insurance and medical care more affordable and accessible to millions across the country. Nearly nine out of 10 adults in the U.S. have health insurance, a Gallup poll published in April showed -- the lowest-ever rate of uninsured people in the United States.
Costs were likely to go up because a high percentage of those who had newly bought health insurance through the Affordable Care Act needed expensive medical care that, until they bought insurance, had been delayed. As a result, health insurers were finding they had to spend more to cover the expensive medical bills, and because fewer younger -- and presumably healthier -- people had signed up for coverage, companies had smaller pool of funding to draw on.
Even as premiums might be about to go up, a study published Thursday by the consumer healthcare nonprofit group Families USA showed that one out of four adults who bought health insurance through exchanges created under the Affordable Care Act skipped necessary medical treatment because the care was too expensive. These adults had paid monthly premiums, some of them subsidized by the government, for health insurance but were nevertheless unable to afford the very care it was supposed to provide.
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ObamaCare: The HealthCare Act That Keeps On Giving

The AP is reporting:
The Health Insurance Providers Fee was aimed at insurance companies. The thinking went: Because insurers would gain a windfall of customers, they ought to help pay for the expansion of coverage. Insurers say they have raised prices for individuals and small businesses to cover the new tax.
As it turns out, they are raising their prices to state Medicaid programs, too.
The federal government issued guidance in October requiring states to build the tax into what they pay for-profit Medicaid health plans that serve low-income people. The first year's tax was due to the IRS in September, and state governments are now settling up with insurance companies.
It works like this: State governments pay insurers for the tax. The insurers then pay the tax to the federal government. The federal government then reimburses part of the cost to the states.
It may sound absurd, but it's not amusing to state governments, which wind up losing 54 cents for every dollar of the insurance tax. State taxpayers end up the biggest losers, without any added benefit to their state's low-income Medicaid patients.
Remember: the health care industry wrote the law. And folks still write to tell me how wrong I am on ObamaCare. Some folks aren't paying attention. 

Too lat now, but the mainstream media is finally paying attention.