Showing posts with label oil. Show all posts
Showing posts with label oil. Show all posts

Sunday, July 30, 2023

Climate Reality Spreading - 'Death' Valley Adds Another Victim


The weather around the world this summer is likely to convince a lot of people that climate change is serious.  That it is changing the conditions of living that we have simply taken for granted and assumed would continue.  

LA Times reporter Hayley Smith, started this story talking about covering disasters including floods and wildfires, but the heat at Death Valley

 ". . . was a different kind of beast, something most people alive have yet to experience. One park visitor described it as like an open oven; another like a blow dryer to the face . I imagined it was more like the surface of the sun, or like someone had left the lights on in hell. 
It was in those circumstances that I met Steve Curry."

She was interviewing tourists at Zabriski Point.  Then she caught my attention:

"Suddenly, my colleague, photojournalist Francine Orr, spotted a lone figure scrambling up a nearby canyon and snapped his photo."

Francine Orr sounded familiar.  I checked my blog to be sure.  Orr spoke to this year's Alaska Press Club Conference in April about photographing COVID victims inside a few LA hospitals during the pandemic. She had gotten permission to photograph patients inside a hospital just as COVID was about to start and she took striking photos.  

I posted them on my COVID page (You can scroll down to April 18, 2023, but I'll repost them here since I never put them up here in the main part of the blog. The photos and the presentation were powerful.) 


Francine Orr, LA Times at AK Press Club Conf
Over the weekend I attended the Alaska Press Club Annual Conference and the last speaker I heard was Francine Orr of the LA Times.  She's a photographer who got permission to take pictures in a hospital in LA just as COVID was beginning and continued doing that for a couple of years.  If people had been seeing her pictures daily, perhaps more people would have taken more precautions.  Here are a couple of the pictures she showed.  




Francine Orr, LA Times at AK Press Club Conf


Francine Orr, LA Times at AK Press Club Conf











Francine Orr, LA Times at AK Press Club Conf


But back to Death Valley and Steve Curry.  

"He was from the Sunland neighborhood of Los Angeles, he told us from beneath his wide-brimmed straw hat. He was 71."

He was on his annual hike there in Death Valley and they offered him more water (he had one water bottle), a reprise in the air conditioning of their car, even a ride back to the trailhead.  

"The park service advises visitors not to hike in the park after 10 a.m. during extreme summer temperatures, but Steve was chipper. He said he was an experienced outdoorsman, and he was determined to finish his round-trip solo hike to Golden Canyon.

"Already, a scalding wind was blowing through the park, overheating our electronic equipment and turning metal door handles into hot irons. Francine and I could bear only a few minutes of it before diving into our cars for the relief of air conditioning, but Steve was persistent. He said he had completed extensive training and was getting ready for another hike in August. 

"What we now know is that Steve did finish his journey, but just barely. He collapsed outside the bathrooms at Golden Canyon at about 3:40 that afternoon and died shortly after. Though the coroner has not yet confirmed his cause of death, officials said they believe it to be heat-related."

 

Smith tells us she ended up meeting Steve's widow and wrote his obituary. 

"He said he was an experienced outdoorsman"

The world is changing.  Our experience of the world as we have known it doesn't necessarily prepare us for the world that is here today and the one it is evolving into because oil companies and their allies have been spreading and continue to spread misinformation to continue making money.  Foolish venal people are not a problem if the consequences of their folly only affects them.  But in this case the world is suffering and will continue to suffer because of them and the people unwilling to stand up to them.   

Friday, July 15, 2022

Bill Allen - My Respect For Him As A Pre-Modern Man In A Modern World

When I heard last week that Bill Allen had died, I immediately wanted to write a bit of a remembrance.  I sat through three different political corruption trials in 2007 and 2008 where he was a key witness for the prosecution.  He had already pleaded guilty and would explain each time how he had given money to different Alaskan GOP politicians so they would vote favorably for the oil industry, for his company VECO in particular.

I thought I had a post that spoke to the part I wanted to say.  But I couldn't find it.  

I just read Michael Carey's Anchorage Daily News opinion piece remembering Bill Allen, so I'll refer you to that.  I met Michael on the first or second day of the first of the trials.  He'd heard that the defendant had been a former student of mine and invited me to lunch.  I told him I couldn't talk about what I knew about Tom from my teacher-student relationship, but he still took me to lunch that day.  Michael's a good man and I appreciate his view on things.

Michael's article got me to look again back into the archives of this blog and I found what I was looking for.  It's in a post talking about the stories imbedded in the trail, in this case, cultural stories. I'd note my use of the term "pre-modern man."  This doesn't mean cave man.  It refers to the value systems prior to the Scientific Revolution and the application of science and rationality to agriculture, the production of goods, to medicine, and to government and law.  It was a time when family and power were the key things that mattered. 


From Pete Kott's Trial: The Underlying Stories September 15, 2007

"First, I would note that the main character in the trial so far has been Bill Allen. Pete Kott has said very little since the first day when the jury pool assembled and Kott stood up with the attorneys and introduced himself as "Pete Kott, the defendant." Since then he's been a quiet shadow sitting between his attorneys. Witness Rick Smith has a supporting role to Bill Allen. So let me try on this story as an interpretation of some of what is happening here in court.

We have a clash of two different cultures - a pre-modern, tribal world and a modern, legal world. In Bill Allen's world, as I tease it out of his words and behaviors, power and family are the main values. Loyalty is a second, but lower value. The law, the government, the legislature in particular are seen as either obstacles to be overcome or tools to get what you want. Allen is clearly an intelligent man. Coming from a poor family, as he told the story, where he and his family survived as 'pickers' of fruit and vegetables in Oregon, he often missed school to pick. He finally dropped out at 15 to earn money as an assistant welder. He has used his wits, his ability to work hard, and his ability to size up people, to create a business that earned between $750 million and $1 billion last year, according to his testimony. 

In the world he described, good and bad referred to how something would affect his business. Good legislation was legislation that would benefit - directly or indirectly - Veco's prospects. Good people were those who supported Allen and Veco. Money was a sign of power. And with money, this high school drop-out could show his power over the better educated. He could buy legislators. He paid Tom Anderson to be a consultant who did, apparently, very little for his monthly check. He paid for political polls for state legislative candidates. He handed out checks to legislators. They had audiences with Allen in the Baranof Hotel's Suite 604. But symbolically, he could really show his power by building the addition to Ted Stevens' house and by hiring Ted Stevens' son for $4000 a month to do "not a lot." The most senior Republican U.S. Senator was beholden to him. Surely, that's a sign of power. He even bought a newspaper - The Anchorage Times.  So all these educated people worked for him - a high school drop out who'd picked fruit as a child. 

Earlier in the trial, I'd thought perhaps loyalty was the main virtue in this world - the loyalty of the Pete Kotts. The loyalty of his Veco employees. He said he trusted Kott as a friend who would do whatever it took to support him. He told the court he'd put aside $10 million when Veco was sold, to support the loyal employees who'd worked for the company and made it what it was - not the executives, but the workers. 

But then I looked at the situation before me. Allen was the government's witness against his most loyal servant, Pete Kott. We've watched this tribal culture on HBO - in the Sopranos and in Rome. We see it in the car bombs of Baghdad. We even see it in the White House where the rule of law is trumped by the raw use of power, and the redacting of significant parts of the Constitution. If the rule of law has any meaning in this culture, it is might makes right. And when the FBI confronted Allen with hundreds of hours of secretly recorded audio and video tapes, he saw that their army of investigators and attorneys had more juice than Veco. In this conflict of power, the FBI had him by the balls, a graphic image that would say it all in Allen's world.   And to protect the ultimate core of a tribal culture, his family, he abandoned Kott and the others, to keep his family out of prison.  

This is not an immoral man. Rather this is a man who lives by a different code of right and wrong from the one that now judges him. Family and power come first. Loyalty to underlings comes next. He told the court he didn't expect anything from the Government for his testimony. He recognized their power, and in their place he would not treat his vanquished with 'fairness'. But he also had his own pride - in the powerful company he built by his own hands and wit, in his own hard work - and as he told Kott's attorney, "I won't beg" the government to lower his sentence. He'll take what comes as a man. He's protected his family, whatever else happens, happens.

This man who ruled by the pre-modern values of power and personal loyalty is put on trial by the rules of a modern state, where rationality, not personality count. Where merit, not loyalty and personal connections, is the standard. (A merit system generally prefers college degrees to dirty fingernails.) His behaviors are judged, not by power, but by laws. The kind of laws he paid legislators to write in his favor and that he ignored when they were in the way.  

I think it is important to recognize the good qualities in Allen. This is a man who, it would appear, was raised in a culture where poverty was bad and thus money was good. No one was there to help him, he had to help himself. The modern, civilized world failed him. It forced him to work as a child. The school system didn't work for him. The idea of rule of law wasn't, apparently, one he learned from his family and he wasn't in school enough to get it there. With what he had, he built a large corporation which gave him the power to take care of his family. He played well by the rules of tribal culture. 

And lest those of us who believe in the rule of law get too smug, tribal instincts are alive and well under the veneer of civilization we wear. We see it flare up in divorce courts, at football stadiums and boxing matches, among hunters and fishers. It's part of our humanity. We're still learning how to balance the tension between protecting our own and helping others, between the freedom of the individual and the good of the larger community.

 

Friday, May 06, 2022

Who's Going To Clean Up The North Slope And The Pipeline When The Oil Companies Leave?

 

Like lots of my posts, I have one key points to make, but it seems like I need to give some background to this quote.  

Cold Mountain Path, by Tom Kizzia, is this month's book club selection.  The group also read Tom's Pilgrim's Progress  that told the story of Papa Pilgrim and his large family that turned out to be filled with nasty unpleasantness under the facade of a happy religious family. 

Both books take place largely in Wrangell-St. Elias National Park.  This second book expands on unpublished notes from the first book - notes that talked about the history of McCarthy the ghost town like community in the park near the Kennecott copper mine.  

Kizzia has figured out the way to tie lots of stories about the town and people in it, into a fascinating tale.


The particular I quote I'm offering today is part of a section describing John Denver's week in McCarthy as part of his Alaska Wilderness movie tour in 1975.  He writes about how the locals reacted to Denver and vice versa.  But here he's talking about the irony of filming an environmental film in a ghost town of a huge copper mine that made a fortune for the Guggenheim Syndicate before they suddenly pulled out in 1938 just before WWII, leaving everything behind - equipment in the Copper Mill, all the houses and furnishings for the workers, clothes, food, vehicles . . .



"In his book, Denver described Kennecott as "a wild streak of industrial violence" that "just sits there, brooding in the night."  It might seem odd that a movie about preserving Alaska's wilderness would linger amid the frontier ruins of industrial capitalism, but the allegorical setting actually suited the times.  The conservationist's fundamental truth, about the environment winning in the end, presses itself constantly upon a visitor's imagination in the Wrangell, there being no greater illustration than Kennecott itself.  Juxtaposed against the propulsive boosterism of Alaska's modern oil boom, in which Alyeska Pipeline had replaced the Guggenheim Trust, Kennecott's ruins provide an almost religious tableau, a place where spiritual reassurance might be found in the atmosphere of decline and fall, in the inning when nature bats last."


That last sentence led me to the title of this post.  Who is going to clean up the Alaska oil pipeline when the oil companies close up shop and abandon Alaska, like the Guggenheims did?  I don't ever recall hearing about a fund set aside to clean up.  But according to this 2020 LA Times piece, 

"Current bonding levels, the funds put aside by the industry to ensure adequate decommissioning of wells and other infrastructure, barely touch what’s needed for cleaning up what’s been built or drilled to date. . . Operators can hold blanket bonds for their entire operations that may not even cover a single site’s cleanup."

The article is only talking about cleaning up the oil fields and doesn't mention the pipeline. (I'm sure there are people thinking about making it the world's larges water slide.)  How much of what the state of Alaska has earned off the oil will be needed to clean up the mess the oil companies are inevitably going to leave behind.  British Petroleum has left the state after selling its stake to Hillcorp Energy,  a company that specializes in getting the last oil out of the ground on the cheap.  

"Environmental organizations and pipeline experts continue expressing concerns about a secretive Texas petroleum company with a spotty safety record that acquired the largest share of the Trans-Alaska Pipeline last year as thawing permafrost and flooding linked to climate change threatened the massive oil conduit.

The Regulatory Commission of Alaska voted 4-1 in December 2020 to allow Hilcorp Energy Co. to acquire BP’s Alaska oil and gas assets for $5.6 billion, a transaction described as the biggest Alaskan business deal in a generation. It involved one of the state’s most important pieces of economic infrastructure."(Inside Climate News)

Not the kind of company that can or would clean things up.  

Alaska Legislators - as you talk about Alaska oil revenues and taxes - please put the costs of cleaning up the oil fields at the end into any new legislation.  We need a realistic estimate of the costs and a way to get the oil companies to deposit money for the cleanup before they leave.    

Senator Sullivan, you're one of the oil companies' biggest boosters.  Show us you care about Alaska too and get an adequate fund set up to deal with cleaning the oil fields and the pipeline when the oil is gone.  Kennecott is just a blip on the map compared to what the oil companies will leave behind.

 

And for those of you who have never heard of McCarthy or Kennecott, here's a picture and link to some old posts about the area.  


 Here's part of what the old Kennecott Copper Mill looked like when we visited in 2008.  It was at the end of several hours of dirt road.  

Sunday, March 13, 2022

Oil, Ukraine, Flopping, And A Cameo Part For Sen.Dan Sullivan

 When you get a chance, tie up one of your oil fanatic Republican family members and/or friends and make them watch this.  It covers most of the relevant issues.  Trust me.  It's worth watching.



Thanks, George.

Thursday, October 21, 2021

Manchin - Thinking Out Loud

[I live in Alaska.  I've passed through West Virginia long ago.  I have no inside knowledge about Manchin.  Just general thoughts about how people behave in political organizations.]


Manchin and Sinema keep trading places in the headlines as the person who is holding climate change and other critical issues hostage.  

Since I live in an oil state, I have an inkling of the pressure that any US Senator from Alaska feels - Democrat or Republican.  When Mark Begich was the Democratic Senator from Alaska, he supported oil development.  It's part of the job of an Alaskan Senator.  Or at least the perception is that if you aren't an oil supporter, you won't get elected.  Oil money will sink your campaign.  So Alaskan Democrats might lobby a Democratic Senator on climate change, but we know oil interests lobby harder.  Sen. Murkowski understands the importance of climate change and bows to oil and GOP pressure.  

So I understand that Manchin needs to stand strong on coal.  He stands strong with the coal industry and the jobs it brings his state.  Even if the demand for coal is waning.  Even if many coal miners die a premature death from black lung disease.  In Alaska oil doesn't actually employ that many people compared to other sectors.  And almost 40% commute from Outside for one or two week rotations. But for the last 40 years it has paid for state government.  Whenever there is any opposition to what the oil companies want, they spend massive amounts of money to sway public opinion that only oil can keep Alaskans employed and enjoying the lifestyle they've come to expect.  Even if it's not true. 

I saw a Tweet yesterday responding to someone complaining that Biden couldn't deliver major legislation the way LBJ or FDR could.  The responders pointed out that LBJ had a 66-34 Democratic majority going into the 1964 and a 68 -32 majority after the election.  There were lots of Democrats from the South that wouldn't vote for the landmark Civil Rights legislation.  LBJ needed Republican votes to beat the filibuster, which in those days you had to actually carry out by speaking 24 hours straight or longer.  But when you were done, the vote was taken and it wasn't 2/3.  Today you just push a button and kill the legislation.  Biden has 48 Democrats and 2 Independents and 50 Republicans. He has no wiggle room whatsoever. 

One could say that by holding up critical climate change legislation to prolong the coal industry's slow death, Manchin is condemning millions of people around the world to premature deaths.  Not just because of this one bill, but because if the US falters on this, then it will give other countries around the world an excuse to go slower too.  And the slower we go, the more people will be displaced and die because of how climate change will play out.  More violent storms.  More drought causing massive fires and forcing people off the land their families have farmed for generations.  More wars to fight for scarce resources like water, arable land, livable temperatures.  And it wouldn't be wrong to say - and history books might - that Manchin was the person who did this.

But Manchin is only the focal point because of other problems as well:

  • Our US Senate is grossly unrepresentative.  Because every state, no matter the population, has two senators, small, rural states have more more senators than their small populations deserve.  Alaska, with 733,391 people has two Senators just like California with almost 40 million people  - 54 times as many people!  Democrats in the Senate represent 43 million more people than the Republican Senators represent.  
  • There are 50 Republican Senators who aren't being put in the spotlight like Manchin.  What are they doing?  There isn't one who has the courage to vote yes?
  • Minority leader McConnell could work out a deal to get this passed.  But making Democrats look bad is his main objective.  That and voter suppression is the only way Republicans can stay in power at all for now.  
I don't know what other pressures Manchin is under.  It's clear he's not looking at his situation in a long term world survival perspective.  He's up for reelection in 2024.  Coal is the dirtiest of fossil fuels and it's going to end soon,  It's already way down in production and use,

So what must be going on behind the scenes? Some (not mutually exclusive) possibilities.  

  1. He needs to publicly (in West Virginia) appear to be the man who stood up to protect West Virginia's coal,
  2. He needs to protect the coal interests of his major financial backers.
  3. He wants to protect his own financial interests in coal.  

Numbers 2 and 3 are harder to make deals on.  If it were only #1, it would seem like the Democrats could do a number of things that benefit West Virginia in exchange for his vote like:

  1. exempt West Virginia from restrictions on coal- though if power plants are giving incentives for clean fuel, that would mean they would move away from West Virginia coal even if it were exempted.
  2. offer boosts to care for coal mine related health problems for West Virginia
  3. offer job retraining programs for coal miners and incentives for businesses in West Virginia to hire them and/or incentives for companies outside of West Virginia to relocate or open work places in WV
  4. make a big public show of all the sacrifices Democrats had to make to satisfy Manchin for WV consumption
He's already getting lots of attention for standing firm for West Virginia's interests (whether that's true or not, it's the perception) so I'm guessing it's pressure from businesses more than voters.  Or, businesses that will spend money in the next election supporting or opposing Manchin.  While he first got elected by a strong majority in 2012, in 2018 he squeaked by with less than 50% of the vote.  

But life oddly thrusts people into the spotlight for different reasons.  Had Georgia not elected two Democratic Senators, Manchin would be much less important.  Maybe invisible.  And people really mad at Manchin have to remember if he weren't a Democrat, McConnell would still be the Senate Majority leader.  

I'd also note that we see many headlines about Manchin as well as those about Biden being in trouble because conflict and drama attract eyeballs, so the media push the conflict and use competitive sports metaphors as a way of getting more advertisers.  


Tuesday, August 03, 2021

"Don’t call them “at-risk.” They’re “at-promise" And 3 Other Articles Of Interest

Let's start off with some good news.  If you're only going to link to one of these articles, I recommend this one.   There are better ways to do things.  For one things, being smaller and close to your people helps.   I also want to disclose that the head of Fledge is a close relative.

Novel Holding Company Africa Eats Has Raised $1.8M For Its Impact Startups (Forbes)

About a year ago, Fledge, which operates about 10 impact accelerators around the world, launched Africa Eats, a holding company with 27 agriculture and food-focused Africa-based graduates of the networks’ programs. The goal: supporting entrepreneurs on-the-ground with an intimate understanding of how best to address hunger and poverty in Sub-Saharan Africa. Since then, the company has raised close to $2 million—and, despite the pandemic, the portfolio companies are doing fine.

Another good news story, where calling attention to labels can make a difference.  Not 'at risk.'  'At promise.'  Most kids want to be good people, they just need support for those dreams.

Caring for the environment helps South King County kids recovering from trauma or hardship find a sense of purpose  (From the Seattle Times)

"This summer, Park, Amine and Tracy are among two dozen mostly South King County youth learning to be stewards of the environment. 

They clean urban lakes during kayak patrols, plant trees, learn field mapping skills and test water quality in streams and rivers on state parks and public lands. They’re on water or trails several days each month. They’re paid $15 an hour for the work — enough to keep most of them from having to take other part- or full-time jobs that would otherwise consume their days — and they’re getting leadership training so they can help lead conservation and pollution prevention efforts in the future. . .

Many of the youth involved in Unleash the Brilliance have faced early adverse experiences “on steroids,” says Dorsey. Amine was peer pressured into regularly using drugs in middle school; his grades and relationship with his parents tanked. Park’s family faced bankruptcy. Other youth bore witness to their parents’ addictions, moved around a lot or lived in extreme poverty. Some have a history of being incarcerated, skipping class or facing delays graduating from high school. 

Dorsey sees them for their potential. Don’t call them “at-risk.” They’re “at-promise,” he says."


How much do your peers impact your behavior?  This Atlantic article addresess peer pressure and vaccination.  

The Anti-vaccine Con Job Is Becoming Untenable:  Why targets of deliberate deception often hesitate to admit they’ve been deceived

"Something very strange has been happening in Missouri: A hospital in the state, Ozarks Healthcare, had to create a “private setting” for patients afraid of being seen getting vaccinated against COVID-19. In a video produced by the hospital, the physician Priscilla Frase says, “Several people come in to get vaccinated who have tried to sort of disguise their appearance and even went so far as to say, ‘Please, please, please don’t let anybody know that I got this vaccine.’” Although they want to protect themselves from the coronavirus and its variants, these patients are desperate to ensure that their vaccine-skeptical friends and family never find out what they have done. . .

Shifting from an individual to a relational perspective helps us understand why people are seeking vaccination in disguise. They want to save face within the very specific set of social ties that sociologists call “reference groups”—the neighborhoods, churches, workplaces, and friendship networks that help people obtain the income, information, companionship, mutual aid, and other resources they need to live. The price of access to those resources is conformity to group norms. That’s why nobody strives for the good opinion of everyone; most people primarily seek the approval of people in their own reference groups."


Do you know whether your insurance company is insuring coal companies?

U.S. INSURERS FAIL ON CLIMATE ACTION:   Global insurers make coal increasingly “uninsurable”; whole industry fails to act on oil & gas  

LONDON (December 2, 2020)—U.S. insurance companies lag behind their global peers and play a key role in enabling the fossil fuel industry, the Insure Our Future campaign revealed today in its fourth annual scorecard on insurers’ climate policies. 

Insuring Our Future: The 2020 Scorecard on Insurance, Fossil Fuels and Climate Change finds that most European and Australian insurers no longer provide coverage for new coal projects, which has made it harder and costlier to secure the insurance that coal projects need to operate. Coal companies face rate increases of up to 40%. Controversial projects—like the Adani Group’s Carmichael coal mine in Australia—are finding it hard to obtain insurance at all. This demonstrates the insurance industry’s unique power to accelerate the shift away from fossil fuels.  

 More useful for most folks is the scorecard here.  

Unfortunately, smaller companies like All State and State Farm aren't listed here.  They are both independent companies.  But Geico is owned by Berkshire Hathaway which is one of the worst offenders.

 

Saturday, January 30, 2021

It's Hard To See The Handwriting On The Wall When The Wall Once Made You Rich


The decline of Alaska's oil wealth has been predicted for a long time. It's why the Alaska Permanent Fund was established.  Knowing it was a finite resource and believing that one generation wasn't entitled to use it all up, the Fund was set up to help fund government forever.  Note:  help fund, not pay all the bills.   Even before climate change became a household word Alaskans were being told to diversify.  Even before the price of oil dropped precipitously.  Even before the recent refusal of some the country's biggest banks to fund any more Arctic oil projects.  Then the oil companies didn't bid on the ANWR lease sales.  

But the oil diehards, like Governor Dunleavy, even proposed legislation to get Alaska agencies to boycott those banks.  And to offset the apparent lack of interest in bidding on the ANWR leases, The Alaska Industrial Development and Export Authority, a state owned entity, was the biggest leaser in the auction, bidding about $12 million of the $14 million total bids.   This, from a strong supporter of Donald Trump and the Republican Party that is constantly attacking Democrats with the label "socialist."

It's hard to change habits.  Our brains even change physiologically so we can do those habits almost without thinking.  We all know that mastering all the hand and foot and eye coordination connected with driving a car safely in traffic is rather daunting at first.  But eventually most of us get to the point where we drive almost on autopilot, sometimes even getting to our destination without even realizing it.    

I think about Anchorage's legendary mall builder, Pete Zamarello.  A Greek-Italian immigrant to the US, he worked in construction and then switched to being a builder.  Anchorage is littered with his strip malls.  He'd figured a formula that made him rich.  But when the hot, pipeline economy ended in the 80's, he was still on autopilot.  Cranking out strip malls is what he knew how to do.  

The ADN wrote when Zamarello died:

"That optimism was on full display in 1984, when Zamarello pooh-poohed predictions of an Alaska economic crash. 'The gurus of financing say that we're going to have a catastrophe, but we're not," he told Alaska Business & Industry magazine then. "This downturn won't happen. The next 10 years are going to be even better.'"

But it did.  The blog Wickersham's Conscience wrote:

"In the Alaska real estate crash of 1984-1986, Zamarello helped kill half a dozen financial institutions, bankrupted construction companies and their suppliers and ended up in bankruptcy himself."

The bankers had also gotten into a pre-crash Zamarello lending habit.  


And that's where we are today in Alaska.  Those who have prospered most directly from oil - those in the oil industry, the oil support industry, and the oil supported legislators - are having a hard time turning off the oil habit. They want to keep doing what they've always done, even though the conditions have changed. And since everyone else in Alaska has benefited indirectly because oil made up 90% of the State budget, many others keep expecting to be able to go on living the good life with no individual state taxes and even a $1000 or more Permanent Fund payout every year.  

We're like the rich kid whose Dad has gone bankrupt, and she's having trouble with the fact that her credit cards have been cancelled and the mansion has been replaced with a much smaller apartment and she's going to have to get a job to help out.  

We often don't see what's directly in front of us.  I think about the story of the Japanese businessman watching how Alaska fishers just tossed all the fish eggs.  His reaction created a new product with a large market in Asia for fish roe.  (I can't find this story online, so take it with a grain of salt.  But I could find documentation that the herring fishery was revitalized by selling herring roe to Japan. And, of course, the indigenous peoples of Alaska had been harvesting herring roe for centuries.)


Alaska Constitution Article 8 - Natural Resources

§ 1. Statement of Policy

It is the policy of the State to encourage the settlement of its land and the development of its resources by making them available for maximum use consistent with the public interest.

§ 2. General Authority

The legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the State, including land and waters, for the maximum benefit of its people.


And that's where we are now.  While the state's GOP keeps pointing to the State's constitutional duty to develop natural resources as the reason to keep pumping oil, they fail to see the most famous and sustainable and valuable resource of all - our huge, mostly untouched, natural beauty and our wild fauna a flora.  These are things the world knows Alaska for.  These are the things they come to Alaska to see.  Tourism is way below oil now as a source of income for the state, but it has huge potential.  

We have some of the largest tracts of nature left in the world.  Let's exploit it - sustainably - for tourism, for the health of the planet, for science, for spiritual renewal.   In a world fast becoming urban and electronic, Alaska is an oasis of peace and calm as well as awe inspiring powerful natural phenomena from grizzly bears to glaciers to giant mountains and volcanoes and earthquakes.  

We'll still produce the oil in existing developed fields.  The earth still needs oil as we move to more sustainable and less climate changing sources of energy.  But the world knows that we must reduce our carbon output.  Just as it was clear to people not living in West Virginia and Kentucky that coal mines had to shut down, it's clear to those not financially benefiting from oil, that the age of oil is over.  That's why the banks decided not to finance Arctic oil development and why nobody bid on the ANWR leases.  

Everyone knows but our governor and those whose incomes come directly from oil.  Even the large oil companies know.  

[Yeah, I'm not sure if the title is inspired or awful.]


Thursday, May 21, 2020

Attorney Who Won Huge Lawsuit Against Chevron On Behalf Of Amazonian Indigenous People Now Facing Chevron Retaliation

Steve Donziger is a name you should know.
 "Donziger won a historic $9.5 billion pollution judgment against Chevron on behalf of Indigenous peoples in Ecuador."
Chevron refused to abide by the Ecuadorian ruling and has been retaliating against the attorney who won the case.  If you don't know about this already, I recommend this article. 

Here is the gist:
Garbus, Frisch and a team of trial lawyers representing Donziger have argued the contempt case is tainted with misconduct, as follows: 
  • Kaplan charged Donziger with contempt after the lawyer filed an appeal challenging an unprecedented order by the judge that he turn over his computer and cell phone to Chevron -- a brazen intrusion into the normally sacrosanct attorney-client privilege. It is considered highly unusual for a judge to charge a lawyer with criminal contempt over a constitutional issue that is pending appeal. 
  • Even more odd is that Kaplan’s charges that resulted in Donziger’s detention originally were rejected by the New York federal prosecutor. In an apparently unprecedented maneuver, Kaplan then appointed the Seward firm to “prosecute” in the name of the government without disclosing the law firm had Chevron and several Chevron-related entities as clients -- posing an egregious conflict of interest and violating Department of Justice policy that requires prosecutors to maintain strict neutrality. 
  • The Seward firm also failed to disclose on repeated occasions to Donziger in open court that Chevron was a client. The Seward firm is so close to Chevron that it is even asserting privilege for the company today over critical documents Donziger needs to defend himself in the contempt case. 
  • In February, during argument before a federal appellate court over Donziger’s detention, Seward partner Glavin never disclosed that her firm had financial ties to Chevron. In 2008, Glavin was found by an independent special prosecutor to have committed misconduct when she helped hide critical evidence from the defense in the high-profile case against then Alaska Senator Ted Stevens. The case eventually was dismissed as a result. (See here.) 
  • Preska has not denied that she and Kaplan communicate regularly about the case and that Kaplan has refused to disqualify himself, a customary practice by judges who file contempt charges to ensure impartiality. As a result, for all practical purposes, Donziger has a “two-headed judge” presiding over his case, said Garbus.  
“Kaplan seems to be trying to pre-ordain the outcome by appointing his best friend and ideological ally to preside without a jury,” said Garbus. “It is clear Steven cannot get a fair trial. His detention is a reflection of what appears to be an egregious lack of fairness. The charges seem to be about retaliation from a corporate polluter and its judicial allies, not about justice or law.”  

Tuesday, December 31, 2019

Interconnections - Oil and Democracy, Microbes and Human Behavior

The world is complicated and humans are constantly tracking down the linkages between different factors.  The first seems much easier to understand, though confirmation bias plays a big role in how easy it is for someone to understand the link between oil and democracy.


1.  Oil's Impact on Democracy

From Philosophasters

OIL IS THE DEVIL'S EXCREMENT
SEPTEMBER 28, 2017 BY DAVID JACQUES IN ARTICLES
Juan Pablo Pérez Alfonzo was a prominent Venezuelan politician who served two terms in office with the Centrist Betancourt Administration (1947-48 & 1959-64). As Minister for Energy he was drawn into conflict with the U.S. under Eisenhower who had negatively affected quotas on Venezuelan oil by favouring new trade agreements with Canada and Mexico. Alfonzo’s response was to form an alliance with oil producing Arab nations in an attempt to regulate the global oil market. His ideas came to fruition with the establishment of 'The Organisation of Oil Producing Countries' - OPEC.
However, protection within the market and the promise of unfettered wealth arising from Venezuela’s immense oil reserves were undone by what economists came to term the 'natural resource curse'; the sudden influx of money would cause the national currency to dramatically appreciate, wages are driven up, prices inflate, manufacturing, imports and exports all slump. Though this was yet to occur for Venezuela during the early OPEC years, Alfonzo saw it all coming. In a prophetic 1975 speech he uttered the infamous lines: "ten years from now, twenty years from now, you will see; oil will bring us ruin. Oil is the Devil's excrement".


  • Rachel Maddow

    Posted: Sun, 13 Oct 2019 20:01:14 -0000
    MSNBC host Rachel Maddow talks about the oil and gas industry’s impact on democracy around the world, tying in Russia’s interference in the 2016 presidential election, the impeachment inquiry of Donald Trump, and more. On October 6, 2019, Rachel Maddow came to the Sydney Goldstein Theater to read from her new book “Blowout: Corrupted Democracy, Rogue State Russia, and the Richest, Most Destructive Industry on Earth”. Maddow spoke to Dan Pfeiffer, a former advisor to President Barack Obama who now co-hosts “Pod Save America”.
I highly recommend Confessions of an Economic Hitman.  It tells the story of how international corporations funnel trillions of public dollars into their own coffers.  It's short and easy to read.  The link tells more about why I recommend it.


2.  Gut Microbes' Impact on Behavior.  

From Science Magazine
Animal sociability through microbes
Accumulating evidence suggests that the microbiota living in and on animals has important functions in the social architecture of those animals. Sherwin et al. review how the microbiota might facilitate neurodevelopment, help program social behaviors, and facilitate communication in various animal species, including humans. Understanding the complex relationship between microbiota and animal sociability may also identify avenues for treating social disorders in humans.
Science, this issue p. eaar2016
These studies are in mice and from the abstract All I could tell was that it affected 'sociability.'
I learned about 10 years ago how my body's functioning was dependent on microbes living inside me.  Finding out the there are 10 times more microbial cells in my body than human cells caused a major shift in how I understand the world and what it means to be human.  I'd note that because the microbial cells are very small, they only make up about 1-3 percent of human body mass.

3.  Census Methodology Impacts on  Gerrymandering

It's no secret that how and who the Census Bureau counts in decennial census counts impacts elections. People who pay attention to the news are aware of the Trump administration's attempt to add a question about citizenship on the 2020 census which would have (and even though it failed, still might have) the effect of causing non-citizens to hide from census takers.

But this article is about how the census bureau counts prisoners - in the community where the prison is located.  Here's the beginning of a primer from the Prison Gerrymandering Project:

"The way the Census Bureau counts people in prison creates significant problems for democracy and for our nation’s future. It leads to a dramatic distortion of representation at local and state levels, and creates an inaccurate picture of community populations for research and planning purposes.
The Bureau counts incarcerated people as residents of the towns where they are confined, though they are barred from voting in 48 states and return to their homes after being released. The practice also defies most state constitutions and statutes, which explicitly state that incarceration does not change a residence."

4.  Blogger Best Wishes and Better New Year

I couldn't find any studies on how blogging good wishes for the new year actually impacts people's
New Year.  I did find this opinion heavy and fact light article on the effects of kindness.  One link is to a Dr. Emoto (really!) who studied how kindness helps water crystals form better and since human bodies are 60% water (plus 3% microbes) being kind helps the water in your body.

There's something off balance in the number 2019.  2020 is much more in tune with human aesthetics.  So I'm wishing you all a great 2020.  Find the good in every day.

Tuesday, November 19, 2019

As We Examine Hilcorp's Purchase of BP's Alaska Holdings, Looking at the Charter for the Development of the Alaska North Slope Seems Appropriate

Over ten years ago I came across something called the Charter for the Development of the Alaska North Slope.  This post tells that story.  I've been getting hits on the story form various places and organizations in the last couple of months.  I'm guessing that this interest is related to BP's selling it's Alaska interests to Hilcorp  so I thought I should post this again.  So here it is:


Monday, February 02, 2009


Charter for the Development of the Alaska North Slope

When I wrote a post about the Conoco-Philips ads in the ADN some time ago, the "Charter Agreement" came up and I wrote:
I also know that CP makes other contributions to the community such as $100,000 to the Museum in 2007. And there was a $3.68 million gift to the University of Alaska also in 2007. But we need to put an * on that. The University of Alaska press release on the gift also says,
The annual gifts stem from a charter agreement between the oil companies and the state regarding the BP merger with ARCO in the late 1990s. Part of the charter agreement identifies public higher education as a top priority for charitable donations . . .
So a minimum amount of contribution is required by this Charter Agreement that was a condition for the BP-ARCO merger. I called Scott Goldsmith, the author of the ISER report, to find out how to get access to the Charter Agreement.He wasn't sure if he ever actually saw a copy, but said he'd check for it tomorrow. [Update: I also called UAA Advancement and later the UA Foundation called and said they would find the Agreement and email it to me .] On the internet, nearly all references I find about BP or ConocoPhillips contributions to the University have that standard clause in them.
Well, a few days later, I got an email from the University of Alaska Foundation with a copy of the charter. But we were in high gear preparing to go to Thailand and what with the traveling and getting into things here, I didn't get around to posting that agreement. (It's down below) I haven't had a chance to study the whole charter, but I expect there is plenty to chew on.

For the time being, let's just look at the part that discusses community charitable contributions:


D. Community Charitable Commitment. Within three months after the merger is completed, BP and ARCO [what BP wasn't allowed to buy of ARCO because it would have given BP monopolistic power in Alaska eventually became Conoco-Philips if I got this right] will establish a charitable entity dedicated to funding organizations and causes within Alaska. The entity will provide 30% of its giving to the University of Alaska Foundation and the remainder to general community needs. Funding decisions by the entity will be made by BP and ARCO, with the advice of a board of community advisors. BP and ARCO will provide ongoing funding to this entity in an amount that is equal to 2% of BP's and ARCO's combined aggregate net Alaska liquids production after royalty times the price for WTI. Specific entity funding levels will be calculated annually on the same date each year, referencing the liquids production and the average NYMEX WTI prompt month settlement price for the 12 months immediately proceeding the calculation.


So here are some questions I have:
  1. Who monitors these contributions to be sure that they are making the contributions required?
  2. How do members of the public find this out?
  3. Are they contributing what they are required to contribute?
  4. Are they contributing more than they are required to contribute? (If not, can either company seriously claim to make charitable contributions? This was simply a business deal, a required cost of doing business in Alaska and not really charitable donations.)
  5. Who is on these boards and are the meetings announced and public?

A quick Google search got me to the BP website. Searching there for charter agreement I got a copy of the 2007 annual report on the Charter Agreement for 2006. It is four lines over four pages - for the whole charter agreement. Plus a cover letter to Governor Sarah Palin. The part on charitable giving says this:

COMMUNITY CHARITABLE GIVING

The BP Board of Community Advisors met in February, 2006, at which time they
reviewed 2005 community spend [sic] and plans for 2006.

BP spent more than $10.2 million in support of community programs in 2006,
consistent with the formula detailed in the Charter.

Approximately $3 million was contributed to the University of Alaska Foundation
(1/3 of community investment).
ConocoPhilips's website gave me this message:
Connection to server www.search.conoco.com failed (The server is not responding.)

Why do I think that is the extent of the oversight? Even BP didn't think it was important enough to proof read it carefully. Am I being too cynical? Did the Governor's office demand back up information so they could see how the 2% times the price of WTI? I don't know. What about all the other issues in the Charter? What sort of scrutiny do they get? Just this brief annual report?

Since I'm pretty busy right now in Thailand, I'm going to have to hold off on pursuing these questions. Though I might send them to my representatives in the State Legislature.

Meanwhile, here is the rest of the Charter. I hope other bloggers and non-bloggers start reading it carefully to see whether the oil companies are living up to the agreement. I guess first we ought to figure out which state agencies are responsible for keeping track.

Charter for Development of the Alaskan North Slope

1 comment:

  1. I was wondering when you would do the next installment, but didn't expect you'd get to it so soon.

    Brilliant! Time for the hive mind to get to work...
    ReplyDelete

Wednesday, July 31, 2019

Blast From The Past - Charter for the Development of the Alaska North Slope

This was originally posted on February 2, 2009.  It's been read a few times in the last day or two by people whose computers leave the following tracks: "Alaska State Government."  It's about a fund that was set up at the merger of ARCO and BP that was required to donate a certain amount to the University of Alaska annually.

Just so interested parties know what's being considered by someone in our state government.

..............................................

When I wrote a post about the Conoco-Philips ads in the ADN some time ago, the "Charter Agreement" came up and I wrote:
I also know that CP makes other contributions to the community such as $100,000 to the Museum in 2007. And there was a $3.68 million gift to the University of Alaska also in 2007. But we need to put an * on that. The University of Alaska press release on the gift also says,
The annual gifts stem from a charter agreement between the oil companies and the state regarding the BP merger with ARCO in the late 1990s. Part of the charter agreement identifies public higher education as a top priority for charitable donations . . .
So a minimum amount of contribution is required by this Charter Agreement that was a condition for the BP-ARCO merger. I called Scott Goldsmith, the author of the ISER report, to find out how to get access to the Charter Agreement.He wasn't sure if he ever actually saw a copy, but said he'd check for it tomorrow. [Update: I also called UAA Advancement and later the UA Foundation called and said they would find the Agreement and email it to me .] On the internet, nearly all references I find about BP or ConocoPhillips contributions to the University have that standard clause in them.
Well, a few days later, I got an email from the University of Alaska Foundation with a copy of the charter. But we were in high gear preparing to go to Thailand and what with the traveling and getting into things here, I didn't get around to posting that agreement. (It's down below) I haven't had a chance to study the whole charter, but I expect there is plenty to chew on.

For the time being, let's just look at the part that discusses community charitable contributions:


D. Community Charitable Commitment. Within three months after the merger is completed, BP and ARCO [what BP wasn't allowed to buy of ARCO because it would have given BP monopolistic power in Alaska eventually became Conoco-Philips if I got this right] will establish a charitable entity dedicated to funding organizations and causes within Alaska. The entity will provide 30% of its giving to the University of Alaska Foundation and the remainder to general community needs. Funding decisions by the entity will be made by BP and ARCO, with the advice of a board of community advisors. BP and ARCO will provide ongoing funding to this entity in an amount that is equal to 2% of BP's and ARCO's combined aggregate net Alaska liquids production after royalty times the price for WTI. Specific entity funding levels will be calculated annually on the same date each year, referencing the liquids production and the average NYMEX WTI prompt month settlement price for the 12 months immediately proceeding the calculation.


So here are some questions I have:
  1. Who monitors these contributions to be sure that they are making the contributions required?
  2. How do members of the public find this out?
  3. Are they contributing what they are required to contribute?
  4. Are they contributing more than they are required to contribute? (If not, can either company seriously claim to make charitable contributions? This was simply a business deal, a required cost of doing business in Alaska and not really charitable donations.)
  5. Who is on these boards and are the meetings announced and public?

A quick Google search got me to the BP website. Searching there for charter agreement I got a copy of the 2007 annual report on the Charter Agreement for 2006. It is four lines over four pages - for the whole charter agreement. Plus a cover letter to Governor Sarah Palin. The part on charitable giving says this:

COMMUNITY CHARITABLE GIVING

The BP Board of Community Advisors met in February, 2006, at which time they
reviewed 2005 community spend [sic] and plans for 2006.

BP spent more than $10.2 million in support of community programs in 2006,
consistent with the formula detailed in the Charter.

Approximately $3 million was contributed to the University of Alaska Foundation
(1/3 of community investment).
ConocoPhilips's website gave me this message:
Connection to server www.search.conoco.com failed (The server is not responding.)

Why do I think that is the extent of the oversight? Even BP didn't think it was important enough to proof read it carefully. Am I being too cynical? Did the Governor's office demand back up information so they could see how the 2% times the price of WTI? I don't know. What about all the other issues in the Charter? What sort of scrutiny do they get? Just this brief annual report?

Since I'm pretty busy right now in Thailand, I'm going to have to hold off on pursuing these questions. Though I might send them to my representatives in the State Legislature.

Meanwhile, here is the rest of the Charter. I hope other bloggers and non-bloggers start reading it carefully to see whether the oil companies are living up to the agreement. I guess first we ought to figure out which state agencies are responsible for keeping track.

Charter for Development of ... by Steve on Scribd

Thursday, June 20, 2019

Overwhelmed - Here Are Some Pictures From Buenos Aires


Sorry, between being busy and doing homework and my iPad’s bad relations with Blogger, this will just be a few pictures.  We went to the Rosadel - a park with a rose garden - across a huge Avenida from where we are staying.




Then through other park areas to the Japanese Garden.
















Apartments along Avenida Liberdad.


People eating out at coffee shops on the first day of winter.



It took me a while to figure out that this was a gas station.  I should mention that today was the second holiday this week, so no school.