Posts Tagged ‘good’

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Terror finance progress: suggested news reading

April 23, 2015
  • Judge denies Arab Bank’s request to throw out a verdict against it… more>>
  • The feds have busted 5 people and 4 companies for illegal shipments to Iranmore>>
  • The U.S. passes Saudi Arabia in oil production and is poised to become energy independent in 4 years… more>>
  • A Hamas treasurer has reportedly been arrested… more>>
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The Terror Finance Blog returns

February 20, 2015

The Terror Finance Blog is back up and running after domain problems over the past several months.  The new URL is http://www.terrorfinanceblog.com .  Please visit the website and update your bookmarks, favorites, or blog rolls. TTFB has been a key source of information and analysis of terror finance issues since 2006.  Money Jihad blogger A.D. Kendall has been a contributing expert with TTFB since March 2014.

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How extortion dropped 50% in Mexican town

January 23, 2015

Authorities report that complaints of extortion in Nezahualcóyotl, a city on the outskirts of Mexico City, fell from 172 in 2013 to 86 in 2014. Police chief Jorge Amador attributes the decline to prevention and guidance for the public about how to defend themselves from extortion attempts. Education is especially useful in combating telephone extortion (also known as virtual kidnapping schemes) in which the callers pretend to have carried out a kidnapping of a loved one and demand payment of a real ransom.

U.S. officials have begun catching onto the spreading threat as well. The FBI, New York City, and law enforcement in Texas have been trying to tell people how to deal with extortion threats by phone. That’s a step in the right direction because, if the numbers and explanation for the decline in the Nezahualcóyotl case are true, a public awareness campaign will help stop this outrageous scheme.

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Freedom from Arab oil boosted by record production in North Dakota

March 29, 2013

770,000 barrels per day closer to independence

Texas, federal waters, and North Dakota constitute the holy trinity of the U.S. energy production, and North Dakota contributes an increasingly larger portion of the total.

Bakken output puts us the U.S. closer toward energy self-sufficiency, which, over time, will mean less power for OPEC, fewer petrodollars going to state sponsors of terrorism, a decreased risk of supply interruptions, and less pressure for America to become involved in the squabbles of the Middle East.

This encouraging data comes to us from PennEnergy on Mar. 18 (hat tip to Steve Maley):

http://www.pennenergy.com/articles/pennenergy/2013/03/north-dakota-oil-production-reaches-new-high-in-2012.html?cmpid=EnlDailyPetroMarch192013

North Dakota oil production reaches new high in 2012

North Dakota crude oil production (including lease condensate) averaged an all-time high of 770,000 barrels per day in December 2012. Total annual production more than doubled between 2010 and 2012 through the use of horizontal drilling and hydraulic fracturing of deposits in the Bakken Formation in the Williston Basin. North Dakota production in 2012 trailed only Texas and the U.S. Federal Offshore region, and the state accounted for 10% of total U.S. crude oil production.

Much of crude oil production in North Dakota is gathered and transported by truck to railcars leaving the state. In the four counties where production is concentrated, about 75% of production is transported by truck, and this can cause supply chain problems at times. Severe weather can impede truck travel, which may lower oil production in the state. Once on-site storage tanks at production sites are full, production stops until the trucks can move again. For example, in November 2012 North Dakota crude oil production fell slightly from the October level to 735,000 bbl/d because of weather-induced transportation problems caused by an unusually heavy snowstorm. Pipeline networks, which can be more efficient and less subject to storm disruptions than trucking, are currently being expanded.

Weather slowing or halting truck transportation can also affect the completion of wells that are not yet producing. According to the North Dakota Department of Mineral Resources (DMR), almost all (95%) wells drilled in North Dakota use hydraulic fracturing to produce the crude oil embedded in shale rock and tight (low permeability) formations. To start production, each well needs hundreds of truckloads of material (900-2,000, including 800 truckloads of water, according to the DMR) on-site that are delivered by tank trucks to storage tanks, unless a sufficient quantity of water is available at the wellsite. The total amount of water needed for hydraulic fracturing must be at the wellsite before hydraulic fracturing can begin.

Because over 80% of North Dakota’s wells are located in only four counties—Dunn, McKenzie, Montrail, and William—in the northwest area of the state, harsh weather in these areas can reduce the state’s total crude oil production, as happened in November 2012 and again in January 2013.

It’s also worth noting that pipeline expansion would help even further—a point lost on extreme environmentalists and Democrats.

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Energy independence from Arab oil

December 9, 2012

A recent column by Tom Keane points out the tremendous growth in U.S. energy production thanks in large part to American innovation in hydraulic fracturing.  As he indicates, freedom from Middle East oil presents several benefits:

  • Reduced influence of OPEC
  • The risk of supply interruptions decreases
  • Military spending could decrease without jeopardizing security
  • Domestic economic/job growth

The purpose of independence isn’t necessarily about the price at the gas pump—that is a straw man set up by fans of foreign oil dependence and environmental extremism as a reason to halt progress toward energy freedom.

But let Keane tell it:

A new world of American energy independence

The United States is soon to be awash in oil and natural gas, positively brimming with the stuff whose scarcity and unreliability of supply has plagued us since the end of World War II. It is a remarkable, stunning turn of events — largely unforeseen just a few years ago yet now an imminent although still hard-to-believe reality. And the implications of this new reality will be dramatic too — almost all of them positive although not without some risks. Remember when the United States once trembled at the power of OPEC? In a short while, we may be running the thing.

Last month the well-respected International Energy Agency declared, “A new global energy landscape is emerging . . . redrawn by the resurgence in oil and gas production in the United States.” Within eight years, the America is expected to be the planet’s largest producer of oil. By 2030, we’ll be producing more than we need — exporting, not importing. The reason is technology. Techniques such as hydraulic fracturing have been invented and improved so that they can now economically unlock the vast stores of oil and natural gas across the middle of the country. The flyover states may finally start getting some respect.

It’s uncomfortable to admit this, but Sarah Palin had a point: The key to American energy independence is “drill, baby, drill” — or perhaps more correctly, “frack, baby, frack.”

Don’t count on this abundance making for cheaper gasoline, however. Oil is a global commodity, and, unless the United States decided to subsidize its price, it will still sell to the highest bidder. Nevertheless, the fears of supply disruptions and embargoes — remember the gas lines of 1973? — will largely disappear. Should some country decide to block the Strait of Hormuz, it’ll be other nations, not the United States, feeling the pain. (US law currently prohibits us from exporting oil. Even though it likely will be changed, we’ll still make sure our domestic needs are met first before shipping overseas.)

On the other hand, these newfound supplies may get us a cheaper military budget. Why is the United States so deeply involved in the Middle East but not in, say, Africa? Oil. For at least the last 60 years, its constant supply has been a paramount worry: without energy, the economy collapses. But that policy, while necessary, cost us blood, treasure, and integrity. Too often, we sacrificed our ideals to support a local strongman who could keep pipelines safe. And the wars, both far afield as well as attacks on our soil, have been a burden.

What happens when we no longer need Middle East oil? Foreign policy changes. Conflict is reduced, and our goals can, one hopes, become principled — less tarnished by economic exigencies, more focused on human rights.

There will be dramatic changes at home too. The states with oil reserves will see a huge bump in their economies (already shale-rich North Dakota has the lowest unemployment rate in the country). The entire nation’s economy will benefit too. With energy supplies and prices abundant and stable, business will thrive.

There are risks, two of which are obvious. Fracking can contaminate underground water supplies (and uses lots of water to boot). That’s an issue of smart regulation, however. We already take huge risks with offshore drilling — BP oil, for example. Fracking’s potential impact is arguably less risky and also more manageable.

The other has to do with global climate change. The scarcity of oil (“peak oil” — the theory that supplies are about to diminish — is now, at least for this century, largely kaput) had the beneficial effect of driving us toward conservation and cleaner energy. With a glut of petrochemicals, will that push stop, causing greenhouse gas emissions to worsen? Possibly but not necessarily. The natural gas being extracted by fracking is actually cleaner than oil. Then too, every barrel of oil saved by conservation or alternative energy is a barrel sold overseas — meaning there’s an economic incentive for using renewables.

Those risks notwithstanding, our new world of energy should be a cause of great optimism. Many fear our time is over; the Great American Century finished. The renaissance of domestic oil and gas are of such magnitude, though, it may be another Great American Century is about to begin.

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Finding manna from heaven under the sea

September 10, 2012

The Financial Times has an excellent article on recent natural gas discoveries off the coast of Israel.  For many decades, the commonly held perception of Israel was that it is the only country in the Middle East without oil.  The recent discoveries, which involved hard work and long odds, turn the old perception on its head.

Energy independence is extremely important for the U.S. and the West at large.  But it may be a matter of existential survival for Israel.  Israel has had to depend exclusively on imported energy in the past, leaving it vulnerable to price shocks and supply interruptions.  Natural gas deposits at Tamar and Leviathan will go a long way in helping Israel to write its own future.

Here’s a long excerpt, but you should take a look at the full piece:

Field of dreams: Israel’s natural gas

Aug. 31

By Tobias Buck

After decades of importing every drop of fuel, Israel has struck it rich, uncovering vast reserves of natural gas in the Mediterranean

The black and yellow helicopter heads north from Tel Aviv, passing over empty beaches, a yacht harbour and a string of sprawling seafront residences that house some of Israel’s wealthiest families. After a few minutes the pilot makes a sharp turn to the left and steers his ageing Bell 412 towards the open sea.

For more than half an hour, all there is to see is the blue waters of the Mediterranean. Then suddenly a hulking mass of brightly painted steel rises from the midday haze. Towering more than 100m above the water, this is the Sedco Express, a drilling rig that has been operating in this stretch of ocean for almost three years. As the helicopter touches down on the landing pad, we see a small blue and white Star of David flag fluttering in the wind. It is the only sign that the Sedco Express sits atop one of the greatest treasures that Israel has ever found. Far below, connected to the rig by a slender steel pipe that runs through 1,700m of ocean and another 4,500m of rock and sand, lies a vast reservoir of natural gas known as the Tamar field.

The men on board the Sedco Express are busy testing the field’s multiple wells in preparation for the long-awaited day next April, when a US-Israeli consortium will start pumping the gas onshore. With reserves of almost 10 trillion cubic feet of natural gas, the Tamar field is a hugely valuable asset for the Israeli economy. Discovered in January 2009, it was the biggest gas find in the world that year, and by far the biggest ever made in Israeli waters. But the record held for barely two years. In December 2010, Tamar was dwarfed by the discovery of the Leviathan gasfield some 20 miles farther east – the largest deepwater gas reservoir found anywhere in the world over the past decade. The two fields, together with a string of smaller discoveries, will cover Israel’s domestic demand for gas for at least the next 25 years, and still leave hundreds of billions of cubic feet for sale abroad. The government take from the gasfields alone is forecast to reach at least $140bn over the next three decades – a staggering sum for a relatively small economy such as Israel’s.

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