artdiamondblog.com – Page 595 – Art Diamond's web log

Entrepreneur Bets on Nuclear Power Revival

Entrepreneur Kyle Kimmerle at one of his 600 uranium claims. Source of photo: online version of the NYT article quoted and cited below.

Kyle Kimmerle is an entrepreneur, risking his own money. If he guesses right, he will make himself rich, by helping provide the fuel needed for generating electricity for us.

(p. C1) . . . Prices for processed uranium ore, also called U308, or yellowcake, are rising rapidly. Yellowcake is trading at $90 a pound, nearing the record high, adjusted for inflation, of about $120 in the mid-1970s. The price (p. C4) has more than doubled in the last six months alone. As recently as late 2002, it was below $10.

A string of natural disasters, notably flooding of large mines in Canada and Australia, has set off the most recent spike. Hedge funds and other institutional investors, who began buying up uranium in late 2004 to exploit the volatility in this relatively small market, have accelerated the price rally.

But the more fundamental causes of the uninterrupted ascendance of prices since 2003 can be traced to inventory constraints among power companies and a drying up of the excess supply of uranium from old Soviet-era nuclear weapons that was converted to use in power plants. Add in to those factors the expected surge in demand from China, India, Russia and a few other countries for new nuclear power plants to fuel their growing economies.

“I’d call it lucky timing,” said David Miller, a Wyoming legislator and president of the Strathmore Mineral Corporation, a uranium development firm. “Three relatively independent factors — dwindling supplies of inventory, low overall production from the handful of uranium miners that survived the 25-year drought and rising concerns about global warming — all have coincided to drive the current uranium price higher by more than 1,000 percent since 2001.”

. . .

. . . “We won’t build a new plant knowing there’s nowhere to put the used fuel,” Mr. Malone of Exelon said. “We won’t build one without community support, and we won’t build until market conditions are in place where it makes sense.”

But that is not holding back Kyle Kimmerle, owner of the Kimmerle Funeral Home in Moab. Mr. Kimmerle, 30, spent summers during his childhood camping and working at several of his father’s mines in the area. In his spare time he has amassed more than 600 uranium claims throughout the once-productive Colorado Plateau.

“My guess is that next year my name won’t be on the sign of this funeral home anymore and I’ll be out at the mines,” he said.

He recently struck a deal with a company to lease 111 of his claims for development. The company, new to uranium mining, has pledged $500,000 a year for five years to improve the properties. Mr. Kimmerle will receive annual payments plus royalties for any uranium mined from the area.

For the full story, see:

SUSAN MORAN and ANNE RAUP. "A Rush for Uranium; Mines in the West Reopen as Ore Prices Reach Highs of the 1970s." The New York Times (Weds., March 28, 2007): C1 & C4.

(Note: ellipses added.)

Yellowcake, which is processed uranium, is in the third jar from the left of the top photo. The photo below it is of old equipment at a dormant uranium mine. Source of the photos and the graphic: online version of the NYT article quoted and cited above.

A Public Choice Theory of the Absence of Evidence of the Exodus of the Israelites

The excavation of a fort from roughly the time and place of the biblical exodus of the Israelites from Egypt. Source of photo: the online version of the NYT article cited below.

The economic theory of public choice is often viewed as having begun with Buchanan and Tullock’s The Calculus of Consent. The theory seeks to explain the behavior of government, and government officials, as arising from the same self-interested motives as are used by economists to explain the behavior of free markets, firms, and consumers.

It didn’t look like much — some ancient buried walls of a military fort and a few pieces of volcanic lava. The archaeologist, Dr. Zahi Hawass, often promotes mummies and tombs and pharaonic antiquities that command international attention and high ticket prices. But this bleak landscape, broken only by electric pylons, excited him because it provided physical evidence of stories told in hieroglyphics. It was proof of accounts from antiquity.

That prompted a reporter to ask about the Exodus, and if the new evidence was linked in any way to the story of Passover. The archaeological discoveries roughly coincided with the timing of the Israelites’ biblical flight from Egypt and the 40 years of wandering the desert in search of the Promised Land.

“Really, it’s a myth,” Dr. Hawass said of the story of the Exodus, as he stood at the foot of a wall built during what is called the New Kingdom.

. . .

Recently, diggers found evidence of lava from a volcano in the Mediterranean Sea that erupted in 1500 B.C. and is believed to have killed 35,000 people and wiped out villages in Egypt, Palestine and the Arabian Peninsula, officials here said. The same diggers found evidence of a military fort with four rectangular towers, now considered the oldest fort on the Horus military road.

But nothing was showing up that might help prove the Old Testament story of Moses and the Israelites fleeing Egypt, or wandering in the desert. Dr. Hawass said he was not surprised, given the lack of archaeological evidence to date. But even scientists can find room to hold on to beliefs.

Dr. Mohamed Abdel-Maqsoud, the head of the excavation, seemed to sense that such a conclusion might disappoint some. People always have doubts until something is discovered to confirm it, he noted.

Then he offered another theory, one that he said he drew from modern Egypt.

“A pharaoh drowned and a whole army was killed,” he said recounting the portion of the story that holds that God parted the Red Sea to allow the Israelites to escape, then closed the waters on the pursuing army.

“This is a crisis for Egypt, and Egyptians do not document their crises.”

For the full story, see:

MICHAEL SLACKMAN. "North Sinai Journal Did the Red Sea Part? No Evidence, Archaeologists Say." The New York Times (Tues., April 3, 2007): A4.

(Note: ellipsis added.)

A female skelaton buried near the fort (above). Source of photo: the online version of the NYT article cited above.

54 Year-Old Auto Worker Writes Three Novels After Taking Voluntary Buyout

Source of graphic: online version of the NYT article cited below.

(p. 1) TALK to Kenneth Doolittle about General Motors, where he once supervised a team of assembly line workers, and he readily speaks with pride about his job and the self-esteem it provided. “I loved all of it — the people, the work,” he says. “I was in a position finally where people listened to me when I spoke. I wasn’t just a Joe-Nobody. I contributed.”

Talk to Mr. Doolittle a little longer and he gradually describes why he decided to take a buyout from G.M. — joining more than 80,000 Big Three employees in the largest exodus of workers from a single American industry in decades.

. . .

The exodus that Mr. Doolittle is joining is voluntary. Some have changed their minds. More than 3,000 workers who signed up over the last year to leave Ford and G.M. subsequently decided to stay. These are, after all, the highest-paying blue-collar jobs left in America. Even so, workers are departing from the auto industry en masse, escaping — as they put it in interviews — increasingly difficult working conditions at companies they fear will desert them.

. . .

(p. 9) When G.M. decided to close his plant in 2005, Mr. Doolittle’s seniority gave him every right to transfer to a much newer factory right next door, where G.M. is building a popular Cadillac sedan and is likely to do so for as long as Mr. Doolittle might have wanted a job. But he balked because of the change in stature that would accompany the switch.

Since his departure last year, he has struggled to occupy his time. Divorced, with four grown children, he divides his days between an apartment in Lansing and a trailer parked on a small lakefront plot that he owns north of the city. He has typed out on a laptop three novels “about my life experience.” And to make up some of his lost income — his $36,000 pension is 60 percent of his old pay — he works 20 hours a week, at $10 an hour, doing maintenance at Sears stores.

“That is just enough to keep me from watching Jerry Springer every day,” he said. “I don’t want to sit in front of a TV; I’m too young for that.”

. . .

Across America, more than 30 million people have been forced out of jobs since the early 1980s, the Bureau of Labor Statistics reports, and regaining lost incomes has not been easy. Nearly 50 million new jobs have been created over that same period, according to the bureau, so there are always new opportunities but more often than not at lower pay. Among those who have lost work, only a third held new jobs two years later that paid as well as those that were lost, according to the bureau’s surveys of displaced workers. Another third of those displaced were in jobs that paid, on average, 15 to 20 percent less than their previous employment — while the final third had dropped out of the labor force entirely.

The Census Bureau reported a jump in net migration out of Michigan last year: some 42,300 people left, up from 29,700 in 2005. That was far and away the largest outflow from the state since 1984, during the Rust Belt crisis, census data show. . . .

. . .

The exodus is reminiscent of the Dust Bowl migration from the prairie states in the 1930s, when unemployed farmers gave up and trekked west to California. The Dust Bowl migration, on its face, was much more brutal — the number of displaced Okies, as they were called, was far greater than the current number of departing auto workers, and there were not corporate and public subsidies at the time to soften the hardship.

“The Okies did not know whether they would get to their destination before they starved to death,” said Daniel Luria, an economist at the Michigan Manufacturing Technology Center. “The labor market prospects for the auto workers are not good, but they have assets. They are not in danger of immediately falling into poverty.”

For the full story, see:

UCHITELLE, LOUIS . "The End of the Line as They Know It." The New York Times, Section 3 (Sun., April 1, 2007): 1, 9, & 10.

(Note: ellipses added.)

Novelist Kenneth Doolittle. Source of photo: screen capture from online version of the NYT article cited above.

The Safety Net in Europe and the United States

Source of graphic: online version of the NYT article cited below.

FROM issues of crime and punishment to the proper domain of the spiritual and temporal powers, Americans and Europeans have long cast a skeptical eye at one another across the Atlantic.

Perhaps nowhere has the gaze been more jaundiced than in the area of work. From the perspective of Western Europe, American employers have a relatively free hand to hire and fire, coupled with meager and short-lived unemployment benefits. America’s deregulated labor markets seem to provide hardly any safety net when it comes to economic dislocations of workers.

Americans, by contrast, have found it hard to resist a touch of schadenfreude at the joblessness stoked by European governments’ intervention in labor markets, with rules on everything from wages to layoffs, on top of generous unemployment benefits.

For the full commentary, see:

EDUARDO PORTER. "Economic View; A Bridge Over the Atlantic, in Labor Policy." The New York Times, Section 3 (Sun., April 1, 2007): 5.

“Reports of Oil’s Demise Are Greatly Exaggerated”

Valves being checked by Brian Roe, at the Kern River oil field. Source of the photo: online version of the NYT article cited below.

(p. A1) BAKERSFIELD, Calif. — The Kern River oil field, discovered in 1899, was revived when Chevron engineers here started injecting high-pressured steam to pump out more oil. The field, whose production had slumped to 10,000 barrels a day in the 1960s, now has a daily output of 85,000 barrels.

In Indonesia, Chevron has applied the same technology to the giant Duri oil field, discovered in 1941, boosting production there to more than 200,000 barrels a day, up from 65,000 barrels in the mid-1980s.

And in Texas, Exxon Mobil expects to double the amount of oil it extracts from its Means field, which dates back to the 1930s. Exxon, like Chevron, will use three-dimensional imaging of the underground field and the injection of a gas — in this case, carbon dioxide — to flush out the oil.

Within the last decade, technology advances have made it possible to unlock more oil from old fields, and, at the same time, higher oil prices have made it economical for companies to go after reserves that are harder to reach. With plenty of oil still left in familiar locations, forecasts that the world’s reserves are drying out have given way to predictions that more oil can be found than ever before.

In a wide-ranging study published in 2000, the U.S. Geological Survey estimated that ultimately recoverable resources of conventional oil totaled about 3.3 trillion barrels, of which a third has already been produced. More recently, Cambridge Energy Research Associates, an energy consultant, estimated that the total base of recoverable oil was 4.8 trillion barrels. That higher estimate — which Cambridge Energy says is likely to grow — reflects how new technology can tap into more resources.

“It’s the fifth time to my count that (p. A11) we’ve gone through a period when it seemed the end of oil was near and people were talking about the exhaustion of resources,” said Daniel Yergin, the chairman of Cambridge Energy and author of a Pulitzer Prize-winning history of oil, who cited similar concerns in the 1880s, after both world wars and in the 1970s. “Back then we were going to fly off the oil mountain. Instead we had a boom and oil went to $10 instead of $100.”

. . .

“I am very, very seriously worried about the future we are facing,” said Kjell Aleklett, the president of the Association for the Study of Peak Oil and Gas. “It is clear that oil is in limited supplies.”

Many oil executives say that these so-called peak-oil theorists fail to take into account the way that sophisticated technology, combined with higher prices that make searches for new oil more affordable, are opening up opportunities to develop supplies. As the industry improves its ability to draw new life from old wells and expands its forays into ever-deeper corners of the globe, it is providing a strong rebuttal in the long-running debate over when the world might run out of oil.

Typically, oil companies can only produce one barrel for every three they find. Two usually are left behind, either because they are too hard to pump out or because it would be too expensive to do so. Going after these neglected resources, energy experts say, represents a tremendous opportunity.

“Ironically, most of the oil we will discover is from oil we’ve already found,” said Lawrence Goldstein, an energy analyst at the Energy Policy Research Foundation, an industry-funded group. “What has been missing is the technology and the threshold price that will lead to a revolution in lifting that oil.”

For the full story, see:

JAD MOUAWAD. "Oil Innovations Pump New Life Into Old Wells." The New York Times (Mon., March 5, 2007): A1 & A11.

(Note: ellipsis added.)

Also view the excellent little video "New Life for Old Oil Fields" that the NYT put together to accompany the article.

Kern River pipelines in front, and pump in back. Source of graphic and photo: online version of the NYT article cited above.

Internet Increases Labor’s Options

A "local" Phoenix talk show host, Joe Crummey, broadcasts from his home in California. Source of photo: online version of the NYT article cited below.

The Internet is sometimes viewed as labor’s enemy because it reduces the cost of outsourcing. But it goes both ways: labor can offer its services to a wider world because of the Internet.

LOS ANGELES, March 27 — When people hear the radio host Joe Crummey on Phoenix’s popular KFYI murmur sarcastically, “We don’t have enough human rights activists in this town,” they know he means Phoenix.

Ditto for when he offers to assess the “east side west side traffic right now.”

As it turns out, Mr. Crummey, whose favorite talk show topics include immigration, patriotism and Arizona politics, is indeed reporting for duty in the valley. Just not in the Phoenix Valley.

Rather, it is here, in the San Fernando Valley, where he works via the Internet from his home on the top of a hill in the Studio City section of Los Angeles. Listeners in Phoenix are none the wiser.

Armed with four computers, a digital recorder, a constant stream of Fox News and a professional microphone, Mr. Crummey holds court for three hours each weekday during Phoenix’s drive-home time slot — from about 400 miles away in a neighboring state.

For the full story, see:

JENNIFER STEINHAUER. "Live, From Station KFYI in …Well, That’s Complicated." The New York Times (Weds., March 28, 2007): A11.

Google Hires “Interesting” “Geniuses” & Provides Them a Workplace Where Interesting Geniuses Want to Be

A break lounge at Google’s Manhattan offices. Source of photo: online version of the NYT article cited below.

You could be forgiven for not knowing that a satellite Google campus is growing in downtown Manhattan. There is no Google sign on the building, and it’s hard to catch a glimpse of a Googler, as employees call themselves, on the street because the company gives them every reason to stay within its candy-colored walls.

From lava lamps to abacuses to cork coffee tables, the offices may as well be a Montessori school conceived to cater to the needs of future science-project winners.

. . .

“These are power geniuses,” said Jane Risen, a statuesque brunette who works in training for the sales staff and is considered among the best dressed on campus — she was wearing a brown blazer from the Gap. “If they don’t have the same social skill or style sense, they’re extremely interesting people or else they don’t get hired.”

. . .

The strategy of keeping employees happy and committed to spending endless hours on campus seems to be working. Richard Burdon, 37, an engineer who joined Google two years ago, has been staying past midnight to prepare for the introduction of a project. (Google’s Manhattan engineers have been responsible for developing Google Maps and are working on some 100 other projects.)

“Google is about as interesting as starting your own startup because you can really follow your own ideas,” said Mr. Burdon, who previously worked for Goldman Sachs, Sony and I.B.M. The only time he could remember leaving the office during the workday was to buy a friend a birthday present.

For the full story, see:

DEBORAH SCHOENEMAN. "Can Google Come Out to Play?" The New York Times (December 31, 2006).

(Note: ellipses added.)

Work and non-work at Google’s Manhattan offices. Source of photos: online version of the NYT article cited above.

The Peril of Being a Bald Economist

Source of graphic: online version of the WSJ article cited below.

‘The term ‘income inequality’ is a bit misleading because it suggests in a somewhat pejorative way that the rich are getting richer at the expense of the poor," Edward Lazear, a Stanford University labor economist who is now chairman of Mr. Bush’s Council of Economic Advisers, said last May. While it’s a concern that some people are being left behind, he said, "There is some good news…most of the inequality reflects an increase in returns to ‘investing in skills.’"

Mr. Lazear has nurtured his relationship with Mr. Bush. His office is decorated with photos of the two mountain biking. When he gave Mr. Bush a copy of the Economic Report of the President this year, Mr. Bush gave him a bear hug and kissed the top of his bald head, according to people who were present.

For the full story, see:

GREG IP and JOHN D. MCKINNON. "THE OUTLOOK; Bush Reorients Rhetoric, Acknowledges Income Gap." The Wall Street Journal (Mon., March 26, 2007): A2.

Source of graphic: online version of the WSJ article cited above.

More Evidence that Statins Match Stents for Long Life and Fewer Heart Attacks

A stent from Boston Scientific. Source of photo: online version of the NYT article cited below.

Dr. Boden would not have been so "incredulous" if he had read August 2006 and December 2006 entries on artdiamondblog.com. My title for this entry could have read "Statins Beat Stents" if I had taken account of statin’s being less invasive than stents, with lower risk of complications.

NEW ORLEANS, March 26 — Many heart patients routinely implanted with stents to open arteries gain no lasting benefit compared with those treated just with drugs, researchers reported Monday.

The researchers said patients with stents to prop open coronary blood vessels in addition to being treated with statins and other heart drugs in a five-year trial had better blood flow to the heart than patients treated only with drugs.

But they did not live longer or suffer fewer heart attacks, a finding that confirmed the results of smaller studies.

The researchers also found that the stents were highly successful at improving blood flow and relieving symptoms, including chest pain and shortness of breath, but that the advantage disappeared over time.

“When I saw the results, I was incredulous,” said Dr. William E. Boden, a cardiologist at the University at Buffalo School of Medicine and Biomedical Sciences, lead author of a report on the study published online on Monday by The New England Journal of Medicine.

For the full story, see:

BARNABY J. FEDER. "In Trial, Drugs Equal Benefits of Artery Stents." The New York Times (Tues., March 27, 2007): A1 & A13.

Google Co-Founder Sergey Brin “Really Enjoyed the Montessori Method”

Source for the image of the Moment issue cover, on left: http://www.momentmag.com/issue/index.html Source for the image of the first page of the article, on right: online version of the Moment article cited below.

Sergey, who turned six that summer, remembers what followed as simply “unsettling”—literally so. “We were in different places from day to day,” he says. The journey was a blur. First Vienna, where the family was met by representatives of HIAS, the Hebrew Immigrant Aid Society, which helped thousands of Eastern European Jews establish new lives in the free world. Then, on to the suburbs of Paris, where Michael’s “unofficial” Jewish Ph.D. advisor, Anatole Katok, had arranged a temporary research position for him at the Institut des Hautes Etudes Scientifiques. Katok, who had emigrated the year before with his family, looked after the Brins and paved the way for Michael to teach at Maryland.

When the family finally landed in America on October 25, they were met at New York’s Kennedy Airport by friends from Moscow. Sergey’s first memory of the United States was of sitting in the backseat of the car, amazed at all the giant automobiles on the highway as their hosts drove them home to Long Island.

The Brins found a house to rent in Maryland—a simple, cinder-block structure in a lower-middle-class neighborhood not far from the university campus. With a $2,000 loan from the Jewish community, they bought a 1973 Ford Maverick. And, at Katok’s suggestion, they enrolled Sergey in Paint Branch Montessori School in Adelphi, Maryland.

He struggled to adjust. Bright-eyed and bashful, with only a rudimentary knowledge of English, Sergey spoke with a heavy accent when he started school. “It was a difficult year for him, the first year,” recalls Genia. “We were constantly discussing the fact we had been told that children are like sponges, that they immediately grasp the language and have no problem, and that wasn’t the case.”

Patty Barshay, the school’s director, became a friend and mentor to Sergey and his parents. She invited them to a party at her house that first December (“a bunch of Jewish people with nothing to do on Christmas Day”) and wound up teaching Genia how to drive. Everywhere they turned, there was so much to take in. “I remember them inviting me over for dinner one day,” Barshay says, “and I asked Genia, ‘What kind of meat is this?’ She had no idea. They had never seen so much meat” as American supermarkets offer.

When I ask about her former pupil, Barshay lights up, obviously proud of Sergey’s achievements. “Sergey wasn’t a particularly outgoing child,” she says, “but he always had the self-confidence to pursue what he had his mind set on.”

He gravitated toward puzzles, maps and math games that taught multiplication. “I really enjoyed the Montessori method,” he tells me. “I could grow at my own pace.” He adds that the Montessori environment—which gives students the freedom to choose activities that suit their interests—helped foster his creativity.

“He was interested in everything,” Barshay says, but adds, “I never thought he was any brighter than anyone else.”

For the full story, see:

Mark Malseed. "The Story of Sergey Brin; How the Moscow-born entrepreneur cofounded and changed the way the world searches." Moment Magazine (February 2007).

Chinese Restaurant Entrepreneur: “A Citizen’s Legal Property Is Not to Be Encroached Upon”

CHONGQING, China, March 23 — For weeks the confrontation drew attention from people all across China, as a simple homeowner stared down the forces of large-scale redevelopment that are sweeping this country, blocking the preparation of a gigantic construction site by an act of sheer will.

Chinese bloggers were the first to spread the news, of a house perched atop a tall, thimble-shaped piece of land like Mont-Saint-Michel in northern France, in the middle of a vast excavation.

Newspapers dived in next, followed by national television. Then, in a way that is common in China whenever an event begins to take on hints of political overtones, the story virtually disappeared from the news media after the government, bloggers here said, decreed that the subject was suddenly out of bounds.

. . .

What drove interest in the Chongqing case was the uncanny ability of the homeowner to hold out for so long. Stories are legion in Chinese cities of the arrest or even beating of people who protest too vigorously against their eviction and relocation. In one often-heard twist, holdouts are summoned to the local police station and return home only to find their house already demolished. How did this owner, a woman no less, manage? Millions wondered.

Part of the answer, which on meeting her takes only a moment to discover, is that Wu Ping is anything but an ordinary woman. With her dramatic lock of hair precisely combed and pinned in the back, a form-flattering bright red coat, high cheekbones and wide, excited eyes, the tall, 49-year-old restaurant entrepreneur knows how to attract attention — a potent weapon in China’s new media age, in which people try to use public opinion and appeals to the national image to influence the authorities.

. . .

“I have more faith than others,” she began. “I believe that this is my legal property, and if I cannot protect my own rights, it makes a mockery of the property law just passed. In a democratic and lawful society a person has the legal right to manage one’s own property.”

Tian Yihang, a local college student, spoke glowingly of her in an interview at the monorail station. “This is a peculiar situation,” he said, with a bit of understatement. “I admire the owner for being so persistent in her principles. In China such things shock the common mind.”

. . .

With the street so choked with onlookers that traffic began to back up, Ms. Wu’s brother, Wu Jian, began waving a newspaper above the crowd, pointing to pictures of Ms. Wu’s husband, a local martial arts champion, who was scheduled to appear in a highly publicized tournament that evening. “He’s going into our building and will plant a flag there,” Mr. Wu announced.

Moments later, as the crowd began to thin, a Chinese flag appeared on the roof with a hand-painted banner that read: “A citizen’s legal property is not to be encroached on.”

Asked how his brother-in-law had managed to get inside the locked site and climb the escarpment on which the house is perched, he said with a wink, “Magic.”

For the full story, see:

HOWARD W. FRENCH. "CHONGQING JOURNAL; Homeowner Stares Down Wreckers, at Least for a While." The New York Times (Tues., March 27, 2007): A4.

(Note: ellipses added.)

On left, Wu Ping, with her tall brother in the background. On right, a map showing the location of Chongqing in China. Source of photo and map: online version of the NYT article cited above.