Daily Digest

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Daily Digest 12/1 - That ‘Made in U.S.A.’ Premium, Warsaw Climate Talks

Sunday, December 1, 2013, 11:36 AM

Economy

Where Factory Apprenticeship Is Latest Model From Germany (jdargis)

But experts in government and academia, along with those inside companies like BMW, which has its only American factory in South Carolina, say apprenticeships are a desperately needed option for younger workers who want decent-paying jobs, or increasingly, any job at all. And without more programs like the one at Tognum, they maintain, the nascent recovery in American manufacturing will run out of steam for lack of qualified workers.

That ‘Made in U.S.A.’ Premium (jdargis)

Of the 150 or so items she now has featured on Penney’s website, none are made in this country. “That price point can’t be done here,” Ms. Lepore said of lower-end garments.

Sophisticated, Large-Scale Thefts Plague California’s Nut Industry (jdargis)

Whomever the perpetrators might be, they know what they’re doing. Not only are the thefts themselves sophisticated, but anyone stealing that many nuts has to have connections with the black market — most likely overseas. Several thefts have involved social engineering: a truck arrives to pick up a load, with the driver purporting to be working for the expected shipping company and bearing real-looking paperwork that sometimes even includes the correct purchase-order number. Witnesses to several apparently related thefts last year in Tehama County, north of Sacramento, reported that a large man with a “thick Russian accent” showed up in a truck and had paperwork that appeared to be legit.

From Hurricane Sandy’s Muck, Salvaged Bits of Staten Island Lives (jdargis)

Mr. LoBaido, a home improvement contractor, eventually piled bags of recovered photos onto his truck and took them home. He and his wife, Stephanie, then took them to his union hall, where with other family members they spent a week cleaning and drying the photos. They returned photos to people they recognized, and helped organize a display a few months ago at New Dorp High School, but turnout was low.

As Oil Floods Plains Towns, Crime Pours In (jdargis)

To the police and residents, the violence shows how a modern-day gold rush is transforming the rolling plains and farm towns where people once fretted about a population drain. Today, four-story chain hotels are rising, and small apartments rent for $2,000 a month. Two-lane roads are jammed with tractor-trailers. Fast-food restaurants offer $300 signing bonuses for new employees, and jobs as gas station attendants can pay $50,000 a year. Workers flush with cash are snapping up A.T.V.s, and hotel menus offer crab and artichoke dip and bacon-wrapped dates.

Warsaw Climate Talks: Bad News for Farming (jdargis)

Farmer advocates and developed countries arrived in Warsaw ready to discuss efforts to help farmers around the world adapt to the warming globe, with such help financed with the assistance of the planned new climate treaty. But the Group of 77, or G-77, which has grown to represent 130 countries at the United Nations since it was formed in 1964, quickly put the kibosh on those plans. It insisted that only a low-level “workshop” had been scheduled for Warsaw – no actual “negotiations” allowed.

Gold & Silver

Click to read the PM Daily Market Commentary: 11/29/13

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

3 Comments

Arthur Robey's picture
Arthur Robey
Status: Diamond Member (Offline)
Joined: Feb 4 2010
Posts: 3936
Inca Gold Poisoned Spain.

And black Gold has poisoned the USA.

Spain was the most powerful country in Europe. And then they found Inca Gold. That meant that they did not need to make stuff any more-they could just buy it.  It seemed like a no-brainer. Everyone was rich. And then the gold ran out. It looked almost like Spain was recovering two years back-but that was just an illusion.

The USA has found out how to print paper and convince everyone else that the paper was valuable: the petrodollar. Cheap goods could be bought from sweat shops somewhere over the horizon.The fiction of the almighty dollar is dead. 

South Africa found that they were incredibly wealthy from gold diamonds and other minerals. They used the money to buy steel mills from Mitsubishi and Demag. Brand new- right out of the box. The purpose of the steel mills was to churn out apprentices. Not to make a profit.

They built high raise apartment buildings especially to cater for young male apprentices. Practical module classes spread over acres. The rotation was one month in the factory, one month at theory and one month in practical classes such as welding motor control etc. That is how I got my training.

And then Iscor began to make a profit and things went down hill fast as "entrepreneurs" began to see an angle. For instance, labour hire companies would recruit Iscor employees, pay them more and charge Iscor for their labour. (Parasites)

HughK's picture
HughK
Status: Platinum Member (Offline)
Joined: Mar 6 2012
Posts: 760
An FT article that recognizes energy limits.

Hi all,

Below is a partial admission by the Financial Times that we really are not on the cusp of a new era of plentiful petroleum.  I took the liberty of cutting and pasting the first few paragraphs, but not the full article.  PP moderators:  if I copied too much for fair use standards, just let me know and I'll be sure to copy less in the future. 

Here is the link to the full article.  You have to register to read it.

Toil for Oil Means Industry Sums Do not Add Up

On the other hand, you also have this, from FT Alphaville:

Recollecting the false messiah of peak oil

Gail Tverberg recently posted her theory for why oil prices may not rise significantly even though she's very much in the energy limits camp.  I haven't had time to read her article carefully, but here it is:

What's Ahead? Lower Oil Prices Despite Higher Extraction Costs

We just finished our peak oil and biophysical economics unit in one of my classes.  We don't get to the level of detail to debate whether or not oil prices are likely to rise or fall in the medium term (or long run - although I certainly tend to share in class that all else equal prices will rise in the long run), but I'd be interested to hear the take of others.

Cheers,

Hugh

 

Toil for oil means industry sums do not add up

Rising costs are being met only by ever smaller increases in supply

The most interesting message in this year’s World Energy Outlook from theInternational Energy Agency is also its most disturbing.

Over the past decade, the oil and gas industry’s upstream investments have registered an astronomical increase, but these ever higher levels of capital expenditure have yielded ever smaller increases in the global oil supply. Even these have only been made possible by record high oil prices. This should be a reality check for those now hyping a new age of global oil abundance.However, less than one-third of this increase was in the form of conventional crude oil, and more than two-thirds was therefore either what the IEA calls unconventional crude (light-tight oil, oil sands, and deep/ultra-deepwater oil) or natural-gas liquids (NGLs).According to the 2013 WEO, the total world oil supplyin 2012 was 87.1m barrels a day, an increase of 11.9mbd over the 75.2mbd produced in 2000.

This distinction matters because unconventional crude has a higher cost than conventional crude, while NGLs have a lower energy density.

The IEA’s long-run cost curve has conventional crude in a range of $10-$70 a barrel, whereas for unconventional crude the ranges are higher: $50-$90 a barrel for oil sands, $50-$100 for light-tight oil, and $70-$90 for ultra-deep water. Meanwhile, in terms of energy content, a barrel of crude oil is worth 1.4 barrels of NGLs.

Threefold rise

The much higher cost of developing unconventional crude resources and the lower energy density of NGLs explain why, as these sources have increased their share of supply, the industry’s upstream capex has increased. But the sheer scale of the increase is staggering: upstream outlays have risen more than threefold in real terms over the past 12 years, reaching nearly $700bn in 2012 compared with only $250bn in 2000 (both figures in constant 2012 dollars).

 

cmartenson's picture
cmartenson
Status: Diamond Member (Offline)
Joined: Jun 7 2007
Posts: 5570
Toil For Oil authors

Great article with a good summary of the macro trends in play for cost sand production of oil.  Definitely does not add up to a 'new age of cornucopia.'

I found the authors to be an interesting duo:

Mark Lewis is an independent energy analyst and former head of energy research in commodities at Deutsche Bank; Daniel L Davis, a lieutenant colonel in the US Army, is co-author

Hmmm....what is the US Army doing teaming up with energy analysts to point out these obvious and important trends?

 

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