Combs Spouts Off

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Archive for January 23rd, 2012

Just the fracks, ma’am

Posted by Richard on January 23, 2012

Casey Research has published an excellent essay by Marin Katusa that explains the technology behind hydraulic fracturing (AKA fracking), its benefits, and its drawbacks (and how they’re being addressed). Katusa debunks many of the claims made in the “frac-bashing” documentary, Gasland, including the nonsense about all the “deadly chemicals” in frac fluids:

Allowing for variance among companies and operations, fracking fluid is typically a bit under 91% water and 9% sand. Tiny amounts of added chemicals reduce friction, fight microbes, control pH, and prevent corrosion of equipment. Many are found around the house, including guar gum (in ice cream), borate salts (a fungicide), and mineral oil. And yes, there are 596 ingredients that have at some point been used to make frac fluids, but any single fracturing job uses only a few of the available options.

Even the 0.44% of added chemicals in typical frac fluid is about to become a non-issue:

Another way to ease the problem of frac fluids spills or leaks is to make frac fluids so benign that we could literally drink them. It sounds pie-in-the-sky, but the world’s second-largest oilfield services company is working hard on the idea. In fact, Halliburton (NYSE.HAL) has created a frac fluid called CleanStim, made from materials sourced from the food industry. A Halliburton executive showed the stuff at a recent conference – and then tossed it down his gullet.

Read the whole thing to learn much more about fracking — including how it may just prevent big earthquakes.

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Life imitates art, Atlas Shrugged edition, episode 137

Posted by Richard on January 23, 2012

Here’s some news you may have missed last week. From The Hill:

Six House Democrats, led by Rep. Dennis Kucinich (D-Ohio), want to set up a “Reasonable Profits Board” to control gas profits.

The Democrats, worried about higher gas prices, want to set up a board that would apply a “windfall profit tax” as high as 100 percent on the sale of oil and gas, according to their legislation. The bill provides no specific guidance for how the board would determine what constitutes a reasonable profit.

The Gas Price Spike Act, H.R. 3784, would apply a windfall tax on the sale of oil and gas that ranges from 50 percent to 100 percent on all surplus earnings exceeding “a reasonable profit.” It would set up a Reasonable Profits Board made up of three presidential nominees that will serve three-year terms. Unlike other bills setting up advisory boards, the Reasonable Profits Board would not be made up of any nominees from Congress.

Co-sponsoring the bill are five other Democrats: Reps. John Conyers Jr. (Mich.), Bob Filner (Calif.), Marcia Fudge (Ohio), Jim Langevin (R.I.), and Lynn Woolsey (Calif.).

Pam Geller called it “Post-American Statism” and asked:

This is straight out of Ayn Rand’s novel, Atlas Shrugged — what next? The “Anti-Dog-Eat-Dog Rule,” and “The Equalization of Opportunity Bill”?

Didn’t Obama already appoint an Equalization of Opportunity Czar? I’ve lost track.

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Canada, Keystone XL, and national insanity

Posted by Richard on January 23, 2012

When President Obama nixed the Keystone XL pipeline project, Robert Samuelson called it “an act of national insanity.” Besides the several reasons Samuelson cites for why this decision was idiotic, there’s the fact that it isn’t even going to stop the project.

The company behind it, TransCanada Corp., said in effect, “Just because we’ve got Canada in our name doesn’t mean the pipeline has to begin in Canada, eh?” So they’re looking at a slightly shorter version, running from Montana to the Gulf. It would carry oil from the Bakken field. And since it wouldn’t cross borders, it wouldn’t require federal approval:

The Bakken shale-rock formation is estimated to hold as much as 4.3 billion barrels of technically recoverable oil in North Dakota and Montana, according to a 2008 U.S. Geological Survey report. Oil production in North Dakota surged 42 percent to 510,000 barrels a day in November, exceeding the output of Ecuador.

Production in the Bakken field may reach 750,000 barrels a day this year, Edward Morse, managing director of commodities research for Citigroup Inc., said at a conference in Calgary today.

The original Keystone XL plan was based on carrying up to 830,000 barrels a day, so the Bakken output alone may be plenty to make the project economically feasible. TransCanada can always ask for approval to extend it into Alberta later, perhaps after there is a less insane administration in Washington.

For a look at what some of our neighbors to the north think of Washington’s idiocy, check out this excellent video commentary by Ezra Levant:


[YouTube link]

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