R.I.P. Paul Bearer

http://www.legacy.com/obituaries/theadvertiser/obituary.aspx?n=william-moody&pid=163505856#fbLoggedOut

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Moody was a perfect fit as a macabre mortician. When he joined the WWE, he ditched the blond hair and Percy Pringle name he forged in the 1980s for jet black locks complete with powdered white face. In the act, Paul Bearer’s urn had some unexplained power that protected the Undertaker, allowing his protege to escape unscathed from every leg drop and big boot to the face. Paul Bearer also hosted the WWE segment, “The Funeral Parlor.”

Moody, an Alabama native, told the pro wrestling website PWTorch.com last year that had a degree in mortuary science. He said he was a licensed funeral director and embalmer. He was called to WWE chairman Vince McMahon’s office about taking the job as Undertaker’s manager without the company knowing his true background.

“It was one those had-to-be-there moments when Vince realized I was the real thing, the real deal,” Moody told the website. “I was the real Undertaker.”

He does kind of look like Jack Black in Bernie.

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Duuude, Where’s My Rig? #rsrh

http://www.bustedinacadiana.com/2013/03/man-arrested-after-making-threats-to-multiple-schools/

“Jefferson Parish authorities have made an arrest in connection with the threats made to multiple schools Wednesday morning according to WDSU out of New Orleans. …

“Authorities arrested 35-year-old Shane Creppel Kersey on two counts of terrorizing along with being a fugitive out of Plaquemines Parish on a simple burglary warrant. …

“Kersey, whose mugshot showed him wearing aluminum foil on top of his head, told investigators the foil wrapped around his head secured by a baseball cap was there to prevent microwave signals from entering his head. …

“Authorities said Kersey has a “very extensive prior criminal history” with arrests on charges of possession of narcotics, simple burglary, aggravated battery, criminal trespassing, theft, illegal possession of a weapon along with numerous traffic related offenses.”

Perhaps the most distressing thing to me is the Parker Drilling jacket.

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Energy Week in Review

homepage_banner2And what a momentous week it was:

Thoughts and comments below the fold. Continue reading

Posted in BP Spill, Climate, Energy, Environment, Louisiana | Tagged , , , , , , , , , , , | 1 Comment

Yogi Berra and Wind Energy

Yogi Berra said “In theory there’s no difference between theory and practice. But in practice, there is.”

In theory, who doesn’t love wind energy? The idea of harnessing nature’s gentle zephyrs to replace nasty tankers bringing crude from foreign shores appeals to everyone.*

But sometimes theory has a brutal collision with reality. And reality usually wins. Continue reading

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Just the Fracks, Ma’am

FoxFrackCartoonNatural gas is a cheap, abundant American resource, and cleaner than all of its viable alternatives to boot. It would be hard for a reasonable person not to favor natural gas as a component of our national energy mix, but then for anti-frackers like Josh Fox, Yoko Ono and their ilk put little value on being reasonable people. They are the neo-Luddites resisting a modern energy revolution, standing between the people and the prosperity promised by affordable domestic energy.
Continue reading

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FEMA archeologists find American Indian Pottery. Wait, what?! [Updated]

http://www.nola.com/politics/index.ssf/2013/02/fema_archeologists_find_indian.html#incart_river

Very interesting, but it raises another question: Why does the Federal Emergency Management Agency need archeologists on staff? They can’t hire consultants, or call on another government agency?

Our President and his buddies in Congress maintain that “we don’t have a spending problem, we have a revenue problem.” No, when you operate an organizational behemoth like the Federal Government for years on end sans budget, you have a *management* problem.

[Update]: Oops. Reading is fundamental.

Archeologists under contract to the Federal Emergency Management Agency have discovered American Indian pottery sherds, animal bones and pieces of clay tobacco pipes near Bayou St. John in New Orleans. Some of the items are more than 1,500 years old.

Ahem. Well. I will point out when I’ve made a mistake. This one came from reading the paper before my first cup of coffee. Paragraph #2 above, the one about Federal waste, stands as written.

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It looks like Gannon Wade Mendez will not be Father of the Year.

http://www.tulsaworld.com/site/printerfriendlystory.aspx?articleid=20130220_11_0_PERKIN291963

“PERKINS — A Perkins man is accused of abusing his 9-year-old son because the child expressed support for the University of Oklahoma.

“Gannon Wade Mendez, 42, was charged Feb. 14 in Payne County District Court with one count of child abuse.

“Perkins police were contacted Feb. 1 by the Oklahoma Department of Human Services after a representative of the Payne County Youth Shelter in Stillwater reported that a 9-year-old boy was severely bruised, Officer Charles Danker wrote in a court affidavit.

“The boy told investigators that he was disciplined by his father on Jan. 29 for telling another student at Sangre Ridge Elementary School in Stillwater that “he didn’t like OSU,” the affidavit indicates.

“Mendez is accused of striking the child with a wooden paddle, resulting in injuries so severe that he missed school Jan. 30 and Jan 31, according to the affidavit.”

Seriously, prayers for this child. I hope he goes to OU & becomes the #1 fan, just to spite his old man.

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North Korea’s nuclear test heroes win trip … to Pyongyang.

http://bigpondnews.com/articles/World/2013/02/20/Nth_Koreas_nuclear_test_heroes_win_trip_847436.html

Scientists, technicians, workers and officials behind the February 12 test will visit the capital as the guests of the ruling Workers’ Party, the Korean Central News Agency (KCNA) said on Wednesday.

‘They will spend significant days in Pyongyang, enjoying the greatest privileges and preferential treatment,’ KCNA said, promising a ‘joyful and delightful time’ at the city’s open-air ice rink and roller skating centre.

The group will also visit the Kumsusan Palace of the Sun, which holds the embalmed bodies of North Korea’s founder Kim Il-Sung and his son and former leader Kim Jong-Il.

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Three Republican Governors Urge Drilling the Offshore Atlantic

Sally Jewell is CEO of REI, Inc., and President Obama’s choice to replace outgoing Interior Secretary Ken Salazar. In anticipation of Senate confirmation hearings, the Republican governors of three coastal Atlantic states have written a letter to Ms. Jewell to urge her support of oil and gas exploration on the Outer Continental Shelf (OCS) adjoining their states.

The letter is signed by Governors Nikki Haley of South Carolina, Bob McDonnell of Virginia and of Pat McCrory of North Carolina.

Haley appeals to Obama’s interior pick to open offshore oil, gas exploration

In a letter to Sally Jewel [sic], the governors enlisted her support of their quest to “prudently take advantage of abundant off-shore resources.” They said energy production from the Atlantic’s outer continental shelf would create 140,000 jobs within the next 20 years.

“During your nomination hearings, we will be listening intently to your answers regarding energy exploration off the coasts of our states and hope you will signal your willingness to revise the administration’s current policy to one that is committed to safely harnessing our coast’s vast natural resources,” the governors wrote.

Before the BP spill, plans were in place to offer leases in the relatively small area offshore Virginia. The regulatory overreaction to the spill changed that. There are no Atlantic leasing plans in the current Five-Year Plan (2012-17), but the Administration dipped its toe in the water with a tentative proposal for seismic data acquisition.

However, the Interior Department’s Bureau of Ocean Energy Management is on track to unveil a final environmental study of possible seismic research program from Delaware to Florida that could help identify potential oil and gas in the region. Any data indicating potential big untapped resources could add pressure for future administrations to lease Atlantic tracts and help plan any auctions in the area. (Source.)

Environmental opposition is reflexive, not just to drilling but to the relatively non-invasive seismic exploration of the area.

… The government believes the Virginia leasing area could produce 130 million barrels of oil and 1.1 trillion cubic feet of natural gas. Environmentalists have said that will provide the U.S. with six days of oil and 18 days of natural gas, and it’s not worth the risks. “There just isn’t much oil out there,” said Jackie Savitz of the environmental group Oceana. “Even opening up all U.S. coasts to drilling won’t lower the price of gas more than a few cents per gallon, and not until 2013.”

The industry has questioned the oil and gas estimates, which they say are based on decades-old seismic studies. They said advanced testing techniques will likely discover more reserves.

This response is illustrative of why it’s often difficult to take radical environmentalists seriously in energy policy debates.

The reserve estimate of an unexplored region is statistical and risk-weighted, not a predicted outcome. (For what it’s worth, the statistical, risk-weighted outcome of the roll of a single die is 3.5.) The quantity of oil and gas that might be produced from a given area ranges from a minimum of exactly zero and some larger amount. The only way to find out what’s really there is to drill a well.

Seismic surveys can give some indication of whether an area presents attractive prospects, but they cannot confirm the presence of oil and gas. The current seismic survey of the Atlantic coast is over 30 years old. Much of the U.S. Geologic Survey’s estimate is based on the best available geologic analog – offshore Mauritania, which was juxtaposed to the Virginia/Carolina coast before there was an Atlantic Ocean!

Urban planners don’t use Fred Flintstone’s car and house as typical. But our oil and gas assessment model is just that outdated.

Before the deepwater Gulf of Mexico was drilled, the conventional wisdom (shall we use the word consensus?) among geologic scientists and industry professionals was that the deepwater would never be the major petroleum province that it has proved to be. Conventional science taught that the proper environment for the formation of commercial oil and gas deposits was in shallower water, closer the mouth of the Mississippi River. It held that the sandstones necessary for petroleum reservoirs would never have been deposited in deep water — but drilling proved them wrong. Now the deepwater Gulf of Mexico produces over a million barrels a day, some 15% nation’s total production.

In the end, there’s either oil and gas is the Atlantic OCS or there’s not. If there’s not, there’s virtually no environmental risk in drilling. If there is, then we need to retool our geologic models and keep drilling. On the other hand, if we never drill, we guarantee the outcome: zero jobs, zero economic benefit and continued reliance on foreign sources of petroleum. Plus: no government programs or tax credits are needed. Unlike "green energy" pie-in-the-sky programs, only private capital will be at risk.

Cross-posted at RedState.com.

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Huzzah! Huzzah! Obama Administration Opens 38 Million Acres to Oil and Gas Leasing!

In one of the great non-stories of the year, the Department of the Interior this week announced its plans for its next oil and gas lease sale in the Central Gulf of Mexico.

DOI: 38 Million Acres in Gulf of Mexico Up for Grabs

To follow through with President Obama’s all-of-the-above energy strategy to expand domestic energy production, the U.S. Department of the Interior announced that the upcoming Central Gulf of Mexico Lease Sale 227 will offer 38.6 million acres offshore Louisiana, Mississippi and Alabama for oil and gas exploration and development. …

“The Obama Administration is fully committed to developing our domestic energy resources to create jobs, foster economic opportunities, and reduce America’s dependence on foreign oil,” said Secretary of the Interior Ken Salazar in a released statement. “Exploration and development of the Gulf of Mexico’s vital energy resources will continue to help power our nation and drive our economy.”

Why is this not news?

Lease sales just like this one have occurred nearly every single year since the current area-wide leasing scheme was put in place by President Reagan’s Interior Secretary, James Watt, in 1982. (I say “nearly” because the Obama Administration cancelled regularly-scheduled offshore lease sales in a regulatory overreaction to the BP oil spill in 2010.)

That means that virtually every single acre of the 38.6 million offered has been available before. Some of them have been available every year for 30 years and have never received a bid.

Other blocks have been leased before, but never drilled. The leases expired after their “primary term” of five to ten years.

Some others have been leased, only to have dry holes drilled on them.

Still others may have been successfully drilled and produced to depletion.

Interior likes to tout the statistical estimate of reserves it says may be discovered on the available leases: 1 billion barrels of oil and 4 trillion cubic feet of gas. They also like to beat up the oil and gas industry for not drilling the leases they already have in inventory.

Here is the way offshore leasing works: the offshore area is subdivided into “blocks”. A typical block is square, roughly 3 miles by 3 miles. Any currently-leased blocks are unavailable for leasing at the upcoming sale.

Interior, through the Bureau of Ocean Energy Management (BOEM) establishes bidding rules for each block. Currently, the royalty due on production is 18.75% of value, and the minimum acceptable bid is $25 per acre. Thus for about $150,000, an operator can own the exclusive right (but not the obligation) to explore for hydrocarbons for the term of the lease.

Interior can and does set higher values for leases which have strong hydrocarbon potential based on seismic indications or nearby drilling activity. Those higher values are not published, so if none of the sealed bids for one of these prime leases exceeds its assessed value, all the bids on that block are rejected.

Some highly prospective blocks receive bids from multiple operators. High bids for these blocks run to seven, eight, or sometimes even nine figures. The vast majority of blocks, however, receive a single bid, often at or near the $25/acre minimum value.

So why would anyone want to own a block with little demonstrable exploration value? Remember that a lease is an option, not an obligationn to drill. Over the term of the lease, economic conditions can change dramatically. Prices received for oil and gas may increase. Nearby developments or new technologies may make a marginal accumulation feasible to develop.

Democratic policymakers, including President Obama, Sec. Salazar and the execrable Rep. Ed Markey (D-MA) never seem to understand that all leases are not of equivalent value. They frequently quote the factoid that industry’s undrilled lease inventory totals 68 million acres, as if all leases are equivalent. They are not. The value of a majority of offshore leases is speculative at best.

It is important that leasing continue in the Gulf of Mexico, but from the standpoint of hydrocarbon exploration, we should be opening new areas. The potential of the Gulf is relatively well understood; the shallow waters in particular are very mature. It’s like an orchard on its third or fourth harvest of the season: still profitable but limited in potential. Our current energy policy, which is satisfied to explore the known regions of the Gulf, is ridiculously short-sighted.

Cross-posted at RedState.com.

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