Monday, August 26, 2019

DOA -- TENORM Proposal For Williston, ND -- August 26, 2019

From 2015:
http://llwforum.org/wp-content/uploads/2016/12/12.-TENORM-Disposal-Options-in-North-Dakota-Dale-Patrick.pptx
Will download as a PDF or slide presentation.

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Wow

I finished Chasing the Moon over the weekend; returned it to the library today. Considering buying my own copy; it was that good.

This week's book -- Wolf: The Lives of Jack London, James L. Haley, c. 2010.

From the this week's book's rreface, pages ix - x:
Nearly a decade before the death of Samuel Clemens, Mark Twain's place as America's favorite author was usurped by a California adventurer not yet thirty years old.
In 1902, Jack London was regarded merely as an up-and-coming short story craftsman, but during the following year he took the American literary stage by storm with no fewer than three significant books: an introspective probe into the nature of affection and relationships in The Kempton-Wace Letters; a conscience-searing cri de coeur for social justice in The People of the Abyss; and, then, the major sensation, a muscular Alaskan adventure  novel titles The Call of the Wild. Following these in 1904 with the darkly hair-raising The Sea-Wolf, London fast became a full-fledged literary phenomenon, a front-age celebrity, and the highest-paid writer in America.
The mass of readers who lionized the gentle humor of Mark Twain were unaware that he had hidden his true feelings from them -- his anguish at the human condition and his disgust with the moral failure of American capitalism and militarism. London shared these feelings, but in him the readership encountered a vastly different artist.
He was an angry young man who could enthrall them with his adventure stories, but he also wrote flame-throwing jeremiads against the social injustices of  his day. London's early circumstances --  illegitimacy and poverty, years of brutish child labor and numerous personal and galling experiences with class prejudice -- kindled a socialist fire in his belly that never abated
After he attained the national stage, his dismay was unassuageable that the public who adored his novels and stories did not care to hear his political opinions. After his death, memory of his politics was conveniently erased and he was refashioned as the quintessential author of boys' adventure stories. He thus became, and remains, perhaps the most misunderstood figure in the American literary canon. (He is  not the only hero in our historical pantheon to have been given a bath before inclusion there -- Charles Lindbergh comes to mind, from the right, and Helen Keller, from the left.)
London's books and stories were wildly popular during his lifetime, and just as quickly dismissed as a fad after his untimely death at age forty in1916. During the "Red Scares" of the 1920s and 1950s his attacks on capitalism called his American loyalties so much into question that, though he was long dead, the FBI opened a dossier on him. Too popular to suppress, he was retained as a literary icon of juvenile adventure, and his keen sense of social justice was quietly forgotten, except by college professors and dedicated socialists.

Jack London was a socialist not because he was lazy or sought to live on the labor of others; few American writers have ever worked harder to educate and improve themselves, or have produced a more prolific stream of work. He was a socialist because of the manifest evil that he saw result from the abuses of unrestrained capitalism -- the operative word being "unrestrained."
London himself was a lifelong capitalist, an entrepreneur; he built up a successful ranch with innovative demonstration projects, he licensed his famous name to commercial products, he took risks and did not whine when gambles failed. But the United States of the late nineteenth and early twentieth centuries was the heyday of the ugliest excesses of unfettered, laissez-faire capitalism, the "Gilded Age" (Mark Twain's term) of corporate oligarchy, of worker abuse and oppression. The result was breathtaking social injustice as vividly displayed as it is in today's very comparable era (this book c. date of 2010, during the Obama administration, but written during the Bush II administration). London witnessed the lower-class laborers slaving all their lives with no chance of getting an even break, and it represented to him a betrayal of the American dream  that he unforgivingly set his face against.
When London resigned from the American Socialist Party not long before his death, it was not because he had lost his zeal; he resigned because its members had lost theirs. 
And the preface continues for several more pages written by the author in Austin, Texas, and dated November, 2009.  

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Note for the Granddaughters

Another Casualty In The Trade Wars: Tesla -- Bloomberg -- August 26, 2019

Tesla will raise prices in China sooner than expected due to Trump-Xi war on tariffs. Link here.

Also, another report of a Tesla accelerated on its own, hit pole, burst into flames. No link; I'm sure you can find the story if you want.

And finally, another hard-hitting piece of journalism in Vanity Fair -- I am surprised Vanity Fair is still publishing anything. Whatever. The link.
In public, Musk doesn’t talk much about Tesla’s factory in Buffalo—a place he once, in better times, dubbed Gigafactory 2. Gigafactory 1, of course, is Tesla’s much-hyped futuristic electric car plant outside Reno. Gigafactory 2, which is shrouded in silence and secrets, was a controversial side venture: a high-stakes move to dominate America’s growing market for solar energy. Tesla bought the factory’s main tenant, SolarCity, for almost $5 billion in 2016. The plan, in true Muskian hyperbole, was to turn the plant in Buffalo into what was billed as the largest manufacturing facility of its kind in the Western Hemisphere. SolarCity would build 10,000 solar panels per day and install them on homes and businesses across the country. In the process, it would create 5,000 jobs in an area that very much needed them. “This is one of the poorest cities in the country,” Scott says. “You get a big company here, and it’s a big deal.”

From the outside, the sheer scale of the Buffalo plant sparkles with promise. At 1.2 million square feet, it stands at the point where the Buffalo River bends through the city. The building is gleaming white, as if to signify its freshness amid a landscape of abandoned grain elevators and sprawling, desolate steel mills. The area around the factory is hardscrabble working class; until SolarCity was built, people only drove through it when the fierce wind off Lake Erie shut down the highway that residents take from the southern suburbs to downtown. Now three flags fly in front of the factory: those of the United States, New York State, and Tesla.

But three years after Tesla bought SolarCity, there are serious doubts as to whether the plant will ever fulfill its promises. The website CleanTechnica, which is mostly supportive of Musk, calls SolarCity “a disaster waiting to happen.” A potentially costly lawsuit alleges that Tesla acquired SolarCity at the expense of its own shareholders. And former employees want to know what happened to the massive subsidy Tesla received. “New York State taxpayers deserved more from a $750 million investment,” a laid-off employee named Dale Witherell wrote to Senator Kirsten Gillibrand. “Tesla has done a tremendous job providing smoke and mirrors and empty promises to the area.”
Vanity Fair turning against Tesla is akin to Walter Cronkite turning against the Vietnam War.
The Vanity Fair story on Tesla goes on forever and ever. Archived.

For $8 / year, I might just subscribe again -- but only if the magazine presents fair and balanced analysis of the trade war. LOL. 

Big Deal In The DJ -- August 26, 2019

The Niobrara / DJ / Colorado  is tracked here. Big news, link here.
  • PDC -- growing operator in two key US unconventional basins (DJ and the Permian)
  • PDC will beef up its Wattenberg Field position in Colorado by buying SRC Energy, a pure-play producer in the basin
  • $1.7 billion
  • 86,000 net acres (DJ) + 36,000 net acres (Permian) = 122,000 net acres
  • $1.7 billion / 122,000 net acres = $14,000 / net acre spread across the DJ and the Permian
  • at $55/bbl WTI, free cash flow is targeted at around $800 billion from now through year end 2021, about 50% of which will be returned to shareholders (share buybacks; paying down debt; nothing said about initiating a dividend; several high-profile Bakken operators now pay a dividend;
  • from Yahoo!Finance:
    • shares outstanding: 66.28 million
    • market cap: $1.97 billion
    • enterprise value: $3.09 billion
    • forward dividend: 0.00
    • revenue, full year, 2018: $1.313 billion = $19/share
    • net income from continuing ops: $2 billion = 3 cents/share
    • $400 million / 66.28 million shares = $5.85 / share
  • PDC would become the second-largest DJ Basin producer with 166,000 boepd
  • compare with the announcement today for COP to get the Alaska North Slope project
  • #1 in DJ: the former Anadarko Petroleum company, recently acquired by Occidental Petroleum, 301,00 boepd
  • the deal: PDC will have 182,000 net acres, producing nearly 200,000 bopd
  • PDC will also control 36,000 net acres in the Delaware Basin in Texas

Just between you and me, I think PDC got a better deal than COP (the Alaska announcement earlier today). 

Disclaimer: this is not an investment site. Do not make any investment, financial, job, travel, relationship, or career decisions based on what you read here or think you may have read here. I often make simply arithmetic errors. I often misread things. The numbers above have not been proofed or triple-checked; some numbers have been rounded.

More at the linked site.

Also at the Denver BizJournal; I haven't read all of that article; not sure if there's any additional news.  Bizjournals readers will eventually hit a paywall. Apparently PDC gave the middle finger to some of its hedge fund investors. This was the last paragraph in Bizjournal:
PDC Energy has faced pressure from a hedge fund and investor in the business this year to pull back on its growth plans and focus more on returning money to investors.
Tea leaves from this announcement:
  • taking advantage of cheap money
  • a shakeout across the industry
  • companies setting themselves up for huge returns in the out years
  • DJ bigger than we think? 
  • provides some "cover" for Vicki Hollub by showing the "real" value of DJ acreage
Personal thoughts: most of this is in Weld County which includes Denver-Aurora. This should give folks pause. What could possibly go wrong?

COP Selected By Federal Government To Develop Alaska's North Slope -- August 26, 2019

Link to AP. Data points:
  • five drill sites
  • linked by seven bridges; an airstrip, 38 miles of roads, processing facility
  • project could last 30 years
  • could produce 130,000 bopd
  • max cumulative: 590 million bbls of oil
  • nine-year construction project beginning in 2020
  • oil production would begin in 2024
  • currently, Alaska is averaging 500,00 bopd

Turning Dirt For The TransMountain Pipeline -- August 26, 2019

Milestone:


Amarjeet Sohi is an Indo-Canadian politician, currently serving as the Member of Parliament for Edmonton Mill Woods, and the federal Minister of Natural Resources. Link here.

This is quite amazing. Folks said that if the Trans Mountain Pipeline was approved during the summer of 2019 it would still be too late to get started this season -- due to weather. Well, guess what, it looks like they are getting started ... at least at some level ... time will tell ... but as far as I know the legal and political debate is over as far as getting the pipeline built. Sure, the political debate will continue, but the work will go ahead ...