Category: Government

Occidental Building Costly Plant to Bury Carbon Dioxide, Hoping to Be the Last Firm Still Allowed to Produce Oil

The “oracle of Omaha,” Warren Buffett, has been investing in Occidental.

(p. A1) About fifty miles southwest of Midland, Texas, deep in the oil-saturated Permian Basin, more than 100 workers are busy laying out roads and water lines, preparing to build an elaborate complex of fans, each as large as a tennis court.

When they start running in 2024, the fans will suck massive amounts of carbon dioxide out of the air. The carbon will be funneled thousands of feet down deep wells into geological formations, where it should remain for centuries.

The company behind this environmental moonshot is Occidental Petroleum Corp., one of the country’s most successful oil-and-gas producers. It hopes the enterprise will give it license to keep operating as a driller decades into the future.

It is spending more than $1 billion to build the first in a planned fleet of plants using direct-air capture to pull the CO2 out of the air, a budding technology with fuzzy economics. Bolstering the move are generous tax incentives included in the climate package President Biden signed into law last year that cover up to 45% of Occidental’s expected initial costs per metric ton.

. . .

(p. 8) To be successful, Occidental will need to bring the cost of capture and containment down by hundreds of dollars per metric ton of CO2, according to energy executives and analysts.

Occidental estimated its initial cost to remove a metric ton of CO2 would be between $400 and $500. It said that as it manufactures more plants and efficiencies kick in, it will be able to roughly halve that to between $200 and $250 a ton by the end of the decade, according to the company. None of the figures include federal tax credits.

The Inflation Reduction Act, signed into law by President Biden last year, rewards companies that capture and store atmospheric CO2 with a $180 tax credit per metric ton contained permanently, up from $50. Credits for capturing atmospheric CO2 and using it in enhanced oil recovery rose to $130 a metric ton, up from $35. The bill also offers incentives to companies that capture CO2 at industrial plants and sequester it, which Occidental also plans to do.

. . .

Howard Herzog, a leading researcher on carbon capture at the Massachusetts Institute of Technology, said he didn’t think bringing the cost of direct-air capture down to around $100 a metric ton was a realistic goal. Occidental is “probably more bullish on direct-air capture than I would be,” he said. But he added that how much buyers of carbon credits are willing to pay will also determine how profitable direct-air capture turns out to be.

Ms. Hollub told The Wall Street Journal in August that Occidental’s efforts on carbon capture and on becoming a net-zero emitter would allow it to keep up its investments in oil and gas. She warned that underinvestment in fossil fuels, which she says will be needed for years even amid the broader transition to clean energy, will lead to a scarcity of supplies. In contrast, she said, other oil majors such as BP PLC and Shell PLC have shrunk their oil segment and invested in renewables.

Oil companies will have to find ways to remove as much carbon dioxide as they emit “if they want to be the last producer standing in the world,” Ms. Hollub said.

For the full story, see:

Benoît Morenne. “Occidental’s Green Bet To Keep Pumping Oil.” The Wall Street Journal (Tuesday, April 11, 2023): A1 & A8.

(Note: ellipses added.)

(Note: the online version of the story has the date April 10, 2023, and has the title “Occidental Makes a Billion-Dollar Climate Moonshot—So It Can Keep Pumping Oil.”)

Political Challenges Were Greater Than Technology Challenges in Creating Geostationary Satellites

(p. A13) After the Soviet Union launched Sputnik 1, the world’s first satellite, in 1957, a 31-year-old Rosen was inspired to build “a lightweight satellite that, when launched into a high orbit above the equator, would mimic the Earth’s rotation and retain its relative position, like a spoke on a wheel.” Mr. Amelinckx goes on: “This geostationary satellite would provide twenty-four-hour global communications, something never before attempted. Rosen was excited.”

Indeed he was. Rosen was a brilliant electrical engineer who worked at Hughes Aircraft in California. His tenacity enabled him to surmount, over the following years, the seemingly endless number of infuriating obstacles that stood between him and his goal. There was the multitude of technical problems to be solved—from the satellite’s weight to its spin, antenna, solar panels and more. There were the questions from NASA, Congress, the Pentagon and aerospace companies about whether the U.S. should prefer low-orbit satellites or geostationary ones. (The latter would possess greater transmitting and receiving versatility, but many scientists were convinced that geostationary satellites, which orbit at much higher altitudes, were impractical and would “take years to develop.”)

Mr. Amelinckx notes that solving the political challenges proved more difficult than creating the necessary technologies. Fortunately for Rosen, President Kennedy was keen on communications satellites. And so in 1961, NASA began funding Hughes to create Rosen’s vision.

For the full review, see:

Howard Schneider. “BOOKSHELF; How ‘Early Bird’ Got the Worm.” The Wall Street Journal (Friday, April 14, 2023): A13.

(Note: the online version of the review has the date April 13, 2023, and has the title “BOOKSHELF; ‘Satellite Boy’ Review: How ‘Early Bird’ Got the Worm.”)

The book under review is:

Amelinckx, Andrew. Satellite Boy: The International Manhunt for a Master Thief That Launched the Modern Communication Age. Berkeley: Counterpoint, 2023.

Musk on San Francisco: “Even if Attackers Are Caught, They Are Often Released Immediately”

(p. A3) A suspect was arrested in connection with the fatal stabbing in San Francisco of Cash App founder Bob Lee, police said, more than a week after the tech executive’s death shocked Silicon Valley.

Nima Momeni, 38, was arrested by San Francisco police Thursday morning and booked on a murder charge, said Bill Scott, the San Francisco police chief.

Mr. Lee, 43, was fatally stabbed in the early morning hours of April 4 [2023]. The suspect and the victim knew each other, said Chief Scott. He declined to elaborate on the motive for the killing.

. . .

Some tech-industry executives slammed San Francisco over crime after Mr. Lee’s murder. Last week, Elon Musk tweeted, “Violent crime in SF is horrific and even if attackers are caught, they are often released immediately.”

For the full story, see:

Alyssa Lukpat and Zusha Elinson. “Man Arrested in Killing of Cash App Founder.” The Wall Street Journal (Friday, April 14, 2023): A3.

[Note: ellipsis and bracketed year added.]

(Note: the online version of the story was updated April 13, 2023, and has the title “Suspect Arrested in Fatal Stabbing of Cash App Founder Bob Lee.”)

The “Huge Opportunity Cost” of Congress Keeping Obsolete Warthog Planes Flying

(p. A1) The Air Force has said for years that the A-10 jets, nicknamed Warthogs for their bulky silhouette and toughness in a fight, have passed their prime and will be vulnerable in the wars of the future. The production line where they were made fell silent in the mid-1980s, and the average A-10 here is four decades old. Its job can be done by newer, more advanced planes, the Air Force says.

“The A-10, while it has served us well, is simply not a part of the battlefield of the future,” said Lt. Gen. Richard Moore, the Air Force’s deputy chief of staff for plans and programs.

Congress has other ideas. Bowing to members whose constituencies are dependent on the jet for jobs and the flow of federal tax dollars, it has instead insisted nearly all the planes keep flying at a cost of more than $4 billion over the past 10 years.

This kind of intervention is common—and is (p. A9) impairing the U.S.’s ability to respond to rapidly modernizing Chinese forces in a new era of great-power competition, say current and former senior defense officials and military analysts.

Efforts by lawmakers to bring military jobs and funding to their districts and keep them there are as old as Congress itself. But they come at a huge opportunity cost at a time when the U.S. is facing its most formidable adversary since the end of the Cold War. Congress is in effect forcing the Pentagon to spend billions on programs for which it sees no role in future wars.

For the full story, see:

Daniel Nasaw. “Why Is America Still Flying the A-10 Warthog, a Cold War Relic?” The Wall Street Journal (Friday, April 14, 2023): A1 & A9.

(Note: the online version of the story has the date April 13, 2023, and has the same title as the print version.)

Biden EV Goals Depend on “Troubled” Business Model for Fast Charging

(p. A13) President Biden’s EV ambitions will hinge in large part on the availability of public places to plug in and repower cars reliably, a network that largely doesn’t exist. Building it won’t be easy.

While the government is (p. A2) pouring billions of dollars into developing a national highway charging network, many companies aren’t sure how they will make money off the nascent business. Fast charging requires expensive utility infrastructure and projects often encounter supply chain hang ups and long wait times to connect to the grid.

. . .

The business model for fast charging has been troubled because there aren’t enough EVs in most places yet for charging to turn a profit. Yet EV advocates say many drivers will only be comfortable purchasing vehicles if rapid charging is widely available.

Utility companies and gas stations have been arguing across several states about who will own and operate EV chargers. The expensive utility bills that can result from delivering quick jolts of power have been a particular point of contention. Meanwhile, the young companies that provide charging gear and services have struggled with equipment on the fritz, vandalism and driver payment systems, a frequent source of failure.

For the full story, see:

Jennifer Hiller. “Fast Electric-Vehicle Chargers Get Boost, But Hurdles Lurk.” The Wall Street Journal (Friday, April 14, 2023): A1-A2.

(Note: ellipsis added.)

(Note: the online version of the story was updated April 13, 2023, and has the title “Fast EV Chargers to Nearly Double on U.S. Highways Under Expansion Plan.” In the first paragraph quoted above, the online version has “Mr. Biden’s” instead of “President Biden’s.”)

National Public Radio (NPR) Is “U.S. State-Affiliated Media”

Nobel-Prize-winner F.A. Hayek in The Road to Serfdom wisely worried about the independence of the press when it is funded by the government.

(p. B6) Twitter on Tuesday [April 5, 2023] evening added a label to National Public Radio’s account on the social network, designating the broadcaster “U.S. state-affiliated media.”

. . .

Twitter’s guidelines define state-affiliated accounts as “outlets where the state exercises control over editorial content through financial resources, direct or indirect political pressures, and/or control over production and distribution.” Other news media accounts with the label include RT of Russia and Xinhua of China.

According to cached versions of Twitter’s published policy, for much of Tuesday the guidelines noted that NPR and the BBC of Britain did not receive the label because they were “state-financed media organizations with editorial independence.” The reference to NPR has since been deleted from that policy.

. . .

Mr. Musk did not respond to a request for comment, and an email to Twitter’s communications department was returned with a poop emoji autoreply. Mr. Musk tweeted in apparent support of the move, posting a passage from Twitter’s policy and saying it “seems accurate” in a reply to a user pointing out the label on NPR’s account.

For the full story, see:

Lora Kelley. “In Policy Shift, Twitter Calls NPR ‘State-Affiliated Media.” The New York Times (Thursday, April 6, 2023): B6.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story has the same date April 5, 2023, and has the title “Twitter Labels NPR ‘State-Affiliated Media,’ in Change to Policy.”)

Hayek’s book mentioned above is:

Hayek, Friedrich A. von. The Road to Serfdom. Chicago: University of Chicago Press, 1944.

Public Unions Are “Designed for Inefficiency”

(p. A13) Mr. [Philip] Howard, a lawyer and writer, first noticed how unions stymie governance during his public service in New York as a member of a neighborhood zoning board and chairman of the Municipal Art Society. “I kept wondering why my friends who had responsible jobs in government couldn’t do what they thought was right,” he recalls. That might be speeding up a land-use review for a construction project or approving repairs on a school building.

“I’d have discussions with them about what made sense in a particular situation, and they would say, ‘I wish I could, but I can’t.’ ” Any careful or profitable plans were quickly blown up by union rules, such as limits on workers’ hours and duties.

This week the New York transit union gave an example for the ages. It blocked the subway system’s plan to sync its schedule to new ridership norms, with fewer trains on slow days and lightly traveled routes and more trains on busy ones. The change would have saved $1.5 million a year, benefited riders and preserved workers’ paid hours. But an arbitrator shelved it Tuesday because the union couldn’t bear the “variations in start and end times.”

“They’re not just inefficient,” Mr. Howard says of the unions. “They’re designed for inefficiency.”

“They’re designed to require a new work crew to come cut a tree limb because the people fixing the rails don’t have authority to remove a tree limb. They’re designed to prevent supervisors from observing teachers, except under very controlled circumstances. They’re designed to prevent the principal from giving extra training to a teacher. They’re designed to prevent a supervisor in an agency from going and talking to a worker and soliciting ideas about how to make things work better.”

Mr. Howard, 74, keeps listing examples until I jump in to stop him. They’re fresh in his mind because these schemes are the target of his new book, “Not Accountable: Rethinking the Constitutionality of Public Employee Unions.”

For the full interview, see:

Mene Ukueberuwa, interviewer. “THE WEEKEND INTERVIEW; Public Unions vs. the People.” The Wall Street Journal (Saturday, March 4, 2023): A13.

(Note: bracketed name added.)

(Note: the online version of the interview has the date March 23, 2023, and has the same title as the print version. In both versions, the word “designed” is in italics.)

Philip Howard’s book mentioned above is:

Howard, Philip K. Not Accountable: Rethinking the Constitutionality of Public Employee Unions. Garden City, NY: Rodin Books, 2023.

Government Environmental Agency Accuses Itself of Bulldozing Habitat of “Threatened” Barred Owl and “Endangered” Redshouldered Hawk

(p. A18) A New Jersey state agency is accusing itself of violating its own regulations, saying it destroyed land that is home to rare owls and hawks while creating habitat for another type of bird.

At issue in the unusual bureaucratic conflict is the clearing of about 20 acres of swampy forest in a state-owned wildlife preserve in the southern part of the state as part of a project to improve conditions for the American woodcock, a common, plump shorebird prized by hunters.

The state’s Department of Environmental Protection paid private contractors $200,000 for the job, which involved the removal of trees and the bulldozing of stumps, according to public documents obtained by the nonprofit New Jersey Conservation Foundation.

But clearing the forest, in the Glassboro Wildlife Management Area in Clayton, destroyed habitat for the barred owl, which is threatened in New Jersey, and the red-shouldered hawk, which is endangered, according to a notice of violation issued to one arm of the environmental agency by another on April 6 [2023].

“It’s just depressing, really,” Joe Arsenault, a plant ecologist and environmental consultant who lives nearby and has studied the area for 25 years, said of the project’s outcome. “The site had exquisite, mature growth. It had ancient trees. Today it’s like driving through a parking lot.”

. . .

The forest will slowly regrow, Mr. Arsenault said, adding that his surveys of the land had also uncovered evidence of early settlement by Native American tribes that could date to the earliest humans to settle in New Jersey. With the land upturned, the site’s archaeological record is lost forever.

“It’s a gut punch,” he said. “It is the epitome of poor decisions and poorly spent money.”

For the full story, see:

Christopher Maag. “Plan to Create Habitat Destroys Tract of Forest.” The New York Times (Saturday, April 15, 2023): A18.

(Note: ellipsis, and bracketed year, added.)

(Note: the online version of the story has the same date as the print version, and has the title “New Jersey Environmental Agency Accuses Itself of Harming Bird Habitats.”)


Elon Musk Says “Violent Crime in SF Is Horrific”

(p. A14) The fury erupted within hours, as word spread that the 43-year-old man who had been stabbed to death this week in an enclave of high-rise condominiums near the Bay Bridge was Bob Lee, a well-known tech executive.

The leaders of “lawless” San Francisco had Mr. Lee’s “literal blood on their hands,” Matt Ocko, a tech entrepreneur and venture capitalist in Palo Alto, Calif., tweeted. “I hate what San Francisco has become,” added Michael Arrington, the founder of the industry blog TechCrunch.

“Violent crime in SF is horrific,” Elon Musk, the chief executive of Twitter and Tesla, chimed in.

The drumbeat has built since then in the liberal city that only last year recalled its progressive district attorney amid calls for law and order and deepening frustration over the city’s homelessness crisis.

For the full story, see:

Kate Conger and Shawn Hubler. “Fatal Stabbing Stirs Outrage Over ‘Lawless’ San Francisco.” The New York Times (Saturday, April 8, 2023): A14.

(Note: the online version of the story was updated April 10, 2023, and has the title “Stabbing of Cash App Creator Raises Alarm, and Claims of ‘Lawless’ San Francisco.”)


Extreme Weather Can Bring Enough Water to Recharge California’s Aquifers

(p. A15) After a long, dry summer, winter has brought the gift of water to California, via a series of atmospheric river storms. Unfortunately, as these sprawling rivers in the sky have met developed areas covered with concrete and rivers locked in by levees, they have brought destruction: floods, mudslides, washed-out roads, blackouts, uprooted trees and at least six deaths.

But California doesn’t have to passively suffer through the whiplash of drought and floods. To reduce risk from both, it can return some of its land to water, working with natural systems.

One way to do this is by making use of unique geologic features called paleo valleys. These buried canyons carved into the state’s Central Valley were formed by Ice Age rivers that flowed down the western flank of the Sierra Nevada and were later filled in with coarse sand and gravel from glacial melt.

. . .

There is enough unmanaged surface water from rain and snow statewide to resupply Central Valley aquifers, making more water available to farmers, urban dwellers and the environment. Even with climate change, the state will most likely have enough water for recharge in the future in part because of more extreme weather, according to a 2021 study.

For the full commentary, see:

Erica Gies. “California Should Capture Its Floodwaters.” The New York Times (Monday, January 9, 2023): A15.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date Jan. 7, 2023, and has the title “California Could Capture Its Destructive Floodwaters to Fight Drought.”)

The 2021 study mentioned above is:

He, Xiaogang, Benjamin P. Bryant, Tara Moran, Katharine J. Mach, Zhongwang Wei, and David L. Freyberg. “Climate-Informed Hydrologic Modeling and Policy Typology to Guide Managed Aquifer Recharge.” Science Advances 7, no. 17 (April 21, 2021), doi:10.1126/sciadv.abe6025.

“Singapore’s Bill Gates” Thought Innovation Should Not Require Government Permission

(p. A9) In the late 1990s, before Singapore was known as a global center of digital innovation, Sim Wong Hoo had a theory about what was holding his country back.

Mr. Sim, who went on to become the city-state’s first tech billionaire, called it the “No U-Turn Syndrome,” or NUTS. In the U.S., he said, cars could turn around anywhere unless a sign told them not to. But in Singapore, drivers wouldn’t dare if it wasn’t expressly allowed. The “no rule, no do” mentality kept Singaporeans from thinking outside the box, he said.

So he wrote some new rules. Mr. Sim was raised in a poor household by illiterate parents before founding a startup that revolutionized computer audio and inspired a generation of Asian entrepreneurs. Many admirers still call him

. . .

Born in Singapore in 1955, when it was still under British rule, Mr. Sim grew up in a village in an area now called Bukit Panjang with 10 siblings. Their father died when he was young, and his mother struggled to support their large family by selling whatever seasonal fruits grew on the unkempt 1-acre farm she leased for about $15 a year. When not in school, the young Mr. Sim helped her sell eggs at a local market for about 1 cent apiece.

In his 1999 book, “Chaotic Thoughts From the Old Millennium,” Mr. Sim described himself as a weird child who made his own toys and board games because he couldn’t afford to buy them.

For the full obituary, see:

Feliz Solomon. “Singaporean Inspired Asian Tech Innovators.” The Wall Street Journal (Saturday, Jan. 14, 2023): A9.

(Note: ellipsis added.)

(Note: the online version of the obituary has the date January 13, 2023, and has the title “Sim Wong Hoo, Creator of Sound Blaster, Inspired Asian Tech Innovators.”)

Mr. Sim’s book mentioned above is:

Sim, Wong Hoo. Chaotic Thoughts from the Old Millennium. Singapore: Creative O., 1999.