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Obama and Energy: What He Can and Can’t Do

March 26, 2012 by White House Chronicle Leave a Comment

 

When the Obama administration seeks to explain its oil policy, it changes the subject mid-sentence.
 
The most frequent practitioner of this verbal contortion is the president's press secretary, Jay Carney. It is as though he's a magician who has promised to pull a live rabbit from his top hat. This conjurer stands before his audience, recites some incantations and, poof, retrieves not a live rabbit, but a dead chicken.
 
Carney, like others in the administration, starts talking about oil and switches to talking about "alternatives." The alternatives, with the exception of the nettlesome subject of biofuels (nettlesome because they produce little or no energy above what's invested in producing them), are ways of making electricity.
 
The administration is adept at confusing these almost unrelated subjects.
 
Oil is the stubborn problem. It affects every aspect of life and prosperity, from the balance of payments to war planning, from economic growth to our relationship with China. Worse, it may be in constrained supply for the rest of time, as the BRIC countries – Brazil, Russia, India, and China – continue to suck up the precious commodity.
 
New finds and technology relieve the gloom for a while, but as demand rises and supply struggles to adjust, the problem remains – even though conservative think tanks and trade groups fight the notion of structural shortage.
 
But the United States isn't short of electricity and has no need ever to be. The electricity problem, if there is one, is environmental. Do we continue to burn coal on a massive scale while we search for an environmental fix? Or do we go wholeheartedly for nuclear – even though the Obama administration has abandoned the Yucca Mountain nuclear-waste repository in Nevada?
 
Solar, wind, geothermal, wave, and even biomass energy come under the rubric of "alternatives" – and they're all electricity technologies.
Then there's natural gas, thought to be exhausted in the United States, but now in abundance as a result of sophisticated technologies. That's another electricity fuel.
 
It's enthusiasm for alternatives (a longtime love affair on the left) that has encouraged the confusing White House utterances about a policy of "all of the above." It's this that has spread the public perception that the president can do something about the price of gasoline. And it's this that makes him vulnerable to scorn over debacles like the loan guarantees to the solar-array manufacturer Solyndra.
 
If Obama's reelection hopes aren't to be extinguished at the gas pump this November, he needs to separate oil from electricity – and the future from the present. He can't affect world oil prices, and he can't drill enough holes in the United States to change the world oil market.
 
But he can change the debate, and push down the price somewhat, by taking up arms not against the oil producers, but rather against the oil traders, who are the market movers. They are concentrated in the New York Mercantile Exchange, where they daily bid up the price in a spiral that is unrelated to cost. The price of oil is set by traders, who use rumor, fear, and the knowledge that producers will be silent partners to jack it up.
 
They aren't phantoms. They are real, flesh-and-blood people who manipulate the markets daily. What's happening to oil in the New York Mercantile Exchange is what happened to electricity prices in California when Enron's traders were running wild.
 
There have even been shenanigans at the Cushing tank farm in Oklahoma, the installation that President Obama toured on Thursday. He might do well to read Leah McGrath Goodman's Fortune magazine article this month, on how ConocoPhillips warehoused oil at Cushing. That oil came in by the same pipeline that the new owners have now reversed, she writes, and it's now flowing to refineries by the very route it came in, but at higher prices.
 
Goodman knows what she's talking about. The former Wall Street Journal reporter wrote The Asylum, the definitive book about the New York Mercantile Exchange and the madness of oil trading.
 
Obama could jawbone the traders while providing more resources and moral support to the Commodity Futures Trading Commission – the poodle trying to do a pit bull's work.

Filed Under: King's Commentaries Tagged With: alternative energy, ConocoPhillips, Cushing tank farm, electricity, energy, Leah McGrath Goodman, New York Mercantile Exchange, oil, President Obama

Mass-Transit Enthusiasts: Get on the Bus

March 12, 2012 by White House Chronicle Leave a Comment

Even railroad fanatics like me have to admit that the future of passenger transportation by rail, particularly urban commuter rail, is pretty well frozen where it is. New rail – even light rail, an idealistic indulgence – is doomed by high costs, lack of appropriate track, and political squabbling.

New subways, the elegant way to get around a city, by going under it, are an almost impossible dream. The costs are too great in times of austerity, and the costs of maintenance can be prohibitive as a system ages.

Increasingly, the future appears to be the humble bus. Buses have low capital costs, are flexible, and can be adjusted to demand and population changes in ways trains cannot.

Spare the groaning: The buses are coming. And today's bus need not be yesterday's – noisy, smelly, and unreliable.

London, which has possibly the best transportation infrastructure in the world, with a huge rail network, is nonetheless betting on buses. It's deploying a new bus that is designed for the times and preserves some of the features that have made its buses emblematic of the city, like the two decks. And, yes, they are red.

The new London buses are a meeting of nostalgia with high-tech and environmental sensibility. London was busy phasing out its traditional buses in favor of articulated buses, which bend in the middle, when a controversial and eccentric Conservative journalist turned politician, Boris Johnson, declared that if he were elected mayor, he would save the old buses, or at least the concept of double-deck buses. He won the election and ideas were sought from the public.

The result is what the tabloids call the "Boris Bus." It's a high-tech beauty that meets many demands. It has two doors and two staircases, but it's so low that wheelchairs are easily accommodated.

They are designed to have conductors during rush hours and to be operated by drivers only at other times.

They use modern composite materials from the airline industry and are hybrids, with diesel engines and regenerative breaking. That has made way for the lowering of the bottom deck, increasing stability while reducing weight.

The initial reception of this high-tech scion of the old and loved London bus has been so enthusiastic that Johnson is talked about as a future Conservative prime minister – riding the bus to the highest office in the land.

Back to our buses. They, too, are getting better, but less dramatically so. Between Washington and New York, there's now thriving bus service with half a dozen competing firms offering WiFi, toilets, and many points of departure. The ticket price, about $20 each way, is a fraction of those for Amtrak and airlines.

These intercity buses are diesel-powered, but many cities are using natural-gas-powered buses. That might yet seal the deal for buses as the future of urban transportation, reducing the use of cars. America is awash in natural gas. It also has less environmental impact.

Buses are at their best when, as my wife pointed out in London once, they run like conveyors. Frequently, that means enough dedicated bus lanes.

The Obama administration would be well advised to launch a bus initiative with emphasis on better vehicles, à la London, and dedicated bus lanes. The solution to urban congestion may be in a high-speed, WiFi-equipped, natural-gas-powered bus. — For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: Amtrak, Boris Bus, Boris Johnson, buses, London, railroads, subways

The Politicos Know for Sure Where the Oil Is

March 5, 2012 by White House Chronicle Leave a Comment

 

Lemuel Gulliver is back! You remember him – he’s the hero of “Gulliver’s Travels,” a satire written by Jonathan Swift, first published in 1726.

Many adventures befall Gulliver, but the one most remembered is that he's captured and pinned down with innumerable strings by the tiny Lilliputians. By their standards, he was a giant, but they tied him down so well that he was helpless.

That, according to those seeking the Republican presidential  nomination, is the state of the U.S. energy industry – by energy, they mean oil and gas.

According to Newt Gingrich, who's echoed by frontrunner Mitt Romney and his two rivals, the oil and gas industries have been cruelly tied down by government, which imposes onerous environmental regulations and restricts drilling in the most hopeful parts of our ocean shelves and on federal lands.

If these lands and ocean sites were just opened to drilling, the Republican hopefuls argue, the United States would become the world’s greatest energy producer, as it was in the 1940s and 1950s. Drill, baby, drill and a gigantic cornucopia of energy awaits; energy for the United States and the world.

Jack Gerard, president and CEO of the American Petroleum Institute, the take-no-prisoners trade association that represents nearly 500 oil and gas companies, is a vocal advocate of more drilling in more places. He's a Gulliver theorist.

From Republicans and the oil industry, this is a new optimism born of an old idea. The old idea is that if you drill enough holes in enough places, oil will be abundant.

That optimism has existed more in the fringe world of wildcatting than it did in the big oil companies, which knew that there were limited reserves of recoverable oil and gas in the United States. They also knew that once a reserve is in production, you can calculate the point at which it will decline; as has happened with the North Slope of Alaska, where less than half the 2 million barrels a day produced at its peak is flowing today.

Then came the new technologies, largely developed by the despised government. Now in full deployment, these technologies have incontrovertibly changed expectations for natural gas but their impact on oil is debatable.

The first of these  is  3-D seismic mapping. Advanced physics enables the companies to determine very accurately how much hydrocarbon a particular formation underground might contain. Gone are the days when the hard-drinking wildcatter followed his gut and mysterious patterns in the tumbleweed.

Next, is the hole itself. At one time, a well was a well – drilled straight down, looking for a pool of oil, a cavern of gas or both. Fracturing – the process in which water, chemicals and other substances are injected down the hole to break up rock in proximity to the hole – has been used to release more of the good stuff. With time fracturing, also called “fracking,” has become more sophisticated.

What has made the euphoria of the politicians and oil lobbyists possible is the miracle of horizontal drilling, which allows as many as eight holes to be spread out for miles from a single shaft. This and better fracking has changed the prospects for gas out of all hope, and has somewhat improved oil expectations.

Much of the enthusiasm for new drilling has come from the success of the new technologies in North Dakota, which has overnight become the the fourth-largest oil-producing state in the Union. But beware. This isn’t Texas circa 1945.

Oil from North Dakota's Bakken Field isn’t cheap. Its “lifting cost” is among the most expensive there is: It costs about $50 a barrel to bring North Dakota oil to the surface, compared with about $15 in Russia and Saudi Arabia. Is it oil or incense?

API’s Gerard told reporters in a telephone conversation, designed to preempt President Obama’s “all of the above” energy recommendations, that technology in its inevitable advance would keep the oil flowing for many generations.

Only the government, in Gerard’s view, stands between the American people and abundant oil.

However, fields that have peaked – like the North Slope and much of Texas, Louisiana and the North Sea –  have seen declining production and no technology has been enough to revive them. All the oil has been removed. Gone, baby, gone.

More drilling has already improved domestic oil production. But will unfettered drilling really make a new Saudi Arabia of the. United States? Can the resource base stand the exploitation? Can Gulliver actually stand up?

The next generation of technology won’t put more oil in the ground. – For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: 3-D seismic mapping, American Petroleum Institute, Bakken Field, fracking, Jack Gerard, Louisiana, North Dakota, North Sea, North Slope, oil drilling, President Obama, Saudi Arabia, Texas

What Makes a President: Fallacies about Business, Markets

February 28, 2012 by White House Chronicle Leave a Comment

 

Come walk in the garden where the fallacies grow. Today, we’ll examine two varieties that are enjoying strong growth: the businessus presidentus and themarketus perfectus.

The first fallacy (businessus presidentus) is that a business person, presumably Mitt Romney, is better equipped to run the government than a professional politician. This is an idea as old as anything in the garden. The supposition is that business people are organized, understand the economy and are less prone make decisions based on politics. It also suggests that as a species they are innovative, strategic thinkers and have an acquired understanding people.

Well let's see: The purpose of business is business; in short, to make money. Romantics of the right like to credit it with virtues it doesn't have and doesn't want.

Business is about the numbers, and making the numbers. It’s not intrinsically wise, nor is it necessarily more inventive than government.

It’s true that business innovates; but only when it’s forced to by competition and disruptive technologies. Coca-Cola was supposed to be the smartest company on the planet until it introduced New Coke and had to beat an ignominious retreat. Many old and new businesses simply can't change fast enough. We’ve seen the demise of Kodak, Polaroid and Borders and the emasculation of Western Union. The American car companies had to be rescued — especially General Motors which was a model of management structure, celebrated by Peter Drucker, until its management choked the life out of it.

If Romney has the skills to be a good president, he didn't learn them in the wheeler-dealer world of investment banking – Remember Lehman? – but rather in the statehouse in Boston. By and large, business success prepares a man or a woman for retirement and maybe volunteer work, not political office.

The Washington trade associations periodically decide what they need is “kick-ass” business person. In time, they find someone who knows the ways of Congress to be a lot more effective than someone who can read a balance sheet.

Then there’s the workforce difference. Management controls the workforce in private industry, but the workforce often controls the management in government. Only the military is exempt from this rule. Presidents down to junior political operatives chafe under this reality.

The second fallacy (marketus perfectus) is about markets being next to godliness. Markets are an efficient way to distribute goods and services at affordable prices. But they are as cruel as they are efficient. They exterminate and reward.

It’s a heresy in conservative circles to point out that national interest and market interest do not always coincide. But among treasured companies that have been saved by government intervention in the market are Harley-Davidson (price barriers), Lockheed (loans), Chrysler (twice with loans, and later part of the great Detroit bailout).

It can be argued that some of our current economic woes are the market doing what it does best: seeking the lowest-cost, competent production. It was that which lead to the export of our manufacturing. Companies flooded China because they got the three things they sought and which they sought to satisfy the marketplace: low wages, talent and reliability. They didn’t flood to other cheap-labor places like sub-Saharan Africa, but to China which knew how to please.

People who have really changed the political landscape in Washington have been professional politicians, or those who have embraced politics as a second career, like Ronald Reagan. Richard Nixon changed it not by his misdeeds, but by creating the Office of Management and Budget from its predecessor the Bureau of the Budget. In so doing, he increased the power of the presidency and downgraded the Cabinet. And the consummate Washington insider, Lyndon Johnson, enhanced the president's war-making prerogatives — even though it would’ve been better for him and the nation if he hadn't.

If Romney makes it to the Oval Office, he'll have Massachusetts on his mind not Bain & Co. You won't get the garden to bloom with the wrong seed. –For the Hearst-New York Times syndicate.

Filed Under: King's Commentaries Tagged With: business, Mitt romney, presidential candidates, presidential politic

The Technological Revolution So Great We Forget It

February 28, 2012 by White House Chronicle Leave a Comment

 

What are the achievements of Western civilization?
 
The Renaissance, the Enlightenment, the Industrial Revolution, the spread of democracy and a free press tower on the intellectual side of the ledger. But they didn't happen in a vacuum; they needed coincidental technological advances.
 
The printing press, invented by Johannes Gutenberg in 1450, made the Enlightenment possible. Shaft horsepower, invented by Thomas Newcomen in 1712 and developed by James Watt into a practical steam engine, enabled the Industrial Revolution to get off the ground and make the first great change in how people lived by substituting mechanical energy for human and animal energy.
 
For all the downsides of the Industrial Revolution, it was the dawn of the possibility of an improvement in the lives of most people. It hinted, even with the horrors of the exploitation of workers and miners by their employers, that life could be lived without relentless drudgery.
 
Recently Brian Wolff, senior vice president of the Edison Electric Institute, told security analysts in New York that the trade association is launching a campaign to celebrate the value of electricity.
 
Bravo and about time; for it is electricity that has done more to improve the livability of human life than any other product or service.
 
Electricity has many fathers, going back to 600 B.C., when Thales of Miletus wrote about static electricity. In 1600, the English scientist William Gilbert gave us the name “electricity,” derived from the Greek word for amber: Early experiments consisted of rubbing amber to produce static electricity.
 
Investigator after investigator added to the knowledge of electricity. In 1745, it was discovered that electricity was controllable and the first electrical capacitor, the Leyden jar, was invented.
 
Then came Benjamin Franklin, who popularized concepts of electricity with his key on the kite and his invention of the lightening rod. The first battery was invented by Alessandro Volta, who also proved that electricity can travel over wires, in 1800.
 
Technology moved way ahead in 1821, when the great English scientist Michael Faraday outlined the concept of the electric motor. Six years later another Englishman, Joseph Henry, built one of the first motors.
 
All of this paved the way for Thomas Edison, who founded the Edison Electric Light Company in 1878. A year later, the first commercial power station opened in San Francisco and the first commercial arc lighting system was installed in Cleveland.
 
But it was Edison's demonstration of the incandescent light bulb in 1879 that raised the possibility that human life could get easier. From then on, electricity was deployed at an astounding rate; despite excursions and disputes, like those between Edison and George Westinghouse and Westinghouse and Nicola Tesla.
 
And what a boon electricity has been. It has made the home life safer, eliminating open flames for heat and light, and more convenient. At various times, as a boy in Africa, I lived in homes without electricity. It's not an experience that I'd voluntarily repeat – no light after dark to read by, little heating, no cooling and immense drudgery to heat water and build a cooking fire.
 
Electricity has effectively liberated women from the slavery of the home and given then an equal role in society, and has made life in inhospitable climates, including the U.S. South, agreeable. And it's enabled whole technological revolutions to take place: broadcasting, recorded music multistory building, computing, health, refrigeration, transportation and just about anything one can name.
 
Electricity is ubiquitous and the single-greatest contributor to our quality of life. In our fascinating with computer technology and the Internet, it is forgotten that it rests on an earlier harnessing of electrons by a plethora of scientists down the centuries.
 
Of all the things invented by the peoples on both sides of the Atlantic, nothing has been such a gift to humanity as electricity. It's appropriate that it should be celebrated and find a prominent place in the pantheon of human achievement.
 
Flip that switch and marvel. – For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: Edison Electric Institute, electricity

PBS Hasn’t Kept Up

February 20, 2012 by White House Chronicle Leave a Comment

 

Things are tough in the world of public television.

State budgets for local stations are being slashed or eliminated, as in Rhode Island where Gov. Lincoln D. Chafee has proposed to fund Channel 36 through Dec. 31 and then eliminate state funding.

Five states have eliminated funding and others have cut contributions.

In Washington the federal contribution, through the Corporation for Public Broadcasting, is under constant attack from Republicans who believe that PBS is biased and that it shouldn't receive any public money whatsoever.

Mitt Romney says no to federal money.

But a larger problem for PBS and its stations is one of mission.

When the service was created in 1970, the mission was apparent: Create quality programming that couldn't be found elsewhere. As PBS was cobbled together from a collection of educational stations, children's programming was always an important element and remains so; also books, cooking, political talk, business, interviews, documentaries, music and drama.

Over time, the television landscape has changed out of recognition.

Competing broadcasters, to say nothing of the Internet, have eroded the once solid franchises that were the backbone of PBS broadcasting.

Books have been largely ceded to C-SPAN and the ever-creative Brian Lamb. Cooking, far from the glory days when the only place you could find out how to make a roux was from Julia Child, is now the theme of two cable cooking channels that are creating new stars.

Political talk, which in its modern incarnation was born on PBS with "The McLaughlin Group" and "Firing Line," is now a staple of commercial television. Likewise, cable has pushed ahead of PBS in developing business (Remember "Wall Street Week"?), interview, history and arts channels. Other PBS innovations like "Motor Week" and "This Old House" are also under attack on cable.

Running down the list of what PBS does that no one else is doing brings one to the last franchise that PBS still dominates, and that might be called the "British bonanza." PBS has been mining effectively the output of both the BBC and the commercial British television channels with great effect since the days of "Upstairs Downstairs" (commercial in Britain).

Today, in its struggle for audience, another British import, "Downton Abbey," is the brightest star in PBS's dimming firmament.

If PBS is to again command the community loyalty it once enjoyed, if it is to answer its political foes, if it is to be a decisive force in television and perhaps on the Web, it needs to stop whining about money – now part of its demeanor – and to ask itself, "Is it new?" Is it bringing in and developing young talent? Is it doing something, anything, that will be imitated around the world? Is it creating programs that will bring in dollars in syndication and entice sponsors to be associated with the excitement?

In the 1960s the BBC, which had become a national treasure during World War II, had lost its way. Commercial television was eroding its audience and pirate broadcasters were attacking its radio franchise. The BBC got off the couch and joined the creative fray, especially the satirical revolution. Bam! It was back.

Of course, the BBC with its private tax, called a licensing fee, had a lot of money to spend. But it wasn't money that saved the BBC from ignoble decline – it was unleashing creative forces in post-Empire Britain.

Particularly, the BBC encouraged young writers and producers. It worked.

PBS should think of itself as an incubator, not as a roost for the old, the tired and the timid. Had PBS, or rather one of its bigger stations, been offered "The Daily Show" or its stable mate "The Colbert Report," it's hard to imagine that they would've been welcomed.

Yes, PBS, those retread English comedies and Lawrence Welk won't cut it going forward. –For the Hearst-New York Times syndicate

Filed Under: King's Commentaries Tagged With: "Downton Abbey", BBC, C-SPAN, CPB, Lincoln D. Chafee, Mitt romney, PBS, television

What Makes a President: Fallacies about Business, Markets

February 16, 2012 by White House Chronicle Leave a Comment

 

Come walk in the garden where the fallacies grow. Today, we’ll examine two varieties that are enjoying strong growth: the businessus presidentus and the marketus perfectus.

The first fallacy (businessus presidentus) is that a business person, presumably Mitt Romney, is better equipped to run the government than a professional politician. This is an idea as old as anything in the garden. The supposition is that business people are organized, understand the economy and are less prone make decisions based on politics. It also suggests that as a species they are innovative, strategic thinkers and have an acquired understanding people.

Well let's see: The purpose of business is business; in short, to make money. Romantics of the right like to credit it with virtues it doesn't have and doesn't want.

Business is about the numbers, and making the numbers. It’s not intrinsically wise, nor is it necessarily more inventive than government.

It’s true that business innovates; but only when it’s forced to by competition and disruptive technologies. Coca-Cola was supposed to be the smartest company on the planet until it introduced New Coke and had to beat an ignominious retreat. Many old and new businesses simply can't change fast enough. We’ve seen the demise of Kodak, Polaroid and Borders and the emasculation of Western Union. The American car companies had to be rescued — especially General Motors which was a model of management structure, celebrated by Peter Drucker, until its management choked the life out of it.

If Romney has the skills to be a good president, he didn't learn them in the wheeler-dealer world of investment banking – Remember Lehman? – but rather in the statehouse in Boston. By and large, business success prepares a man or a woman for retirement and maybe volunteer work, not political office.

The Washington trade associations periodically decide what they need is “kick-ass” business person. In time, they find someone who knows the ways of Congress to be a lot more effective than someone who can read a balance sheet.

Then there’s the workforce difference. Management controls the workforce in private industry, but the workforce often controls the management in government. Only the military is exempt from this rule. Presidents down to junior political operatives chafe under this reality.

The second fallacy (marketus perfectus) is about markets being next to godliness. Markets are an efficient way to distribute goods and services at affordable prices. But they are as cruel as they are efficient. They exterminate and reward.

It’s a heresy in conservative circles to point out that national interest and market interest do not always coincide. But among treasured companies that have been saved by government intervention in the market are Harley-Davidson (price barriers), Lockheed (loans), Chrysler (twice with loans, and later part of the great Detroit bailout).

It can be argued that some of our current economic woes are the market doing what it does best: seeking the lowest-cost, competent production. It was that which lead to the export of our manufacturing. Companies flooded China because they got the three things they sought and which they sought to satisfy the marketplace: low wages, talent and reliability. They didn’t flood to other cheap-labor places like sub-Saharan Africa, but to China which knew how to please.

People who have really changed the political landscape in Washington have been professional politicians, or those who have embraced politics as a second career, like Ronald Reagan. Richard Nixon changed it not by his misdeeds, but by creating the Office of Management and Budget from its predecessor the Bureau of the Budget. In so doing, he increased the power of the presidency and downgraded the Cabinet. And the consummate Washington insider, Lyndon Johnson, enhanced the president's war-making prerogatives — even though it would’ve been better for him and the nation if he hadn't.

If Romney makes it to the Oval Office, he'll have Massachusetts on his mind not Bain & Co. You won't get the garden to bloom with the wrong seed. –For the Hearst-New York Times syndicate.

Filed Under: King's Commentaries Tagged With: business, Mitt romney, presidential candidates, presidential politics

Democracy Has a Tentative Start in Kazakhstan

February 6, 2012 by White House Chronicle Leave a Comment

 

Is it the felt revolution or the fur revolution? Or is it a revolution at all? (In Kazakhstan, nomads still use felt to build their tents, called yurts, and to wear a fur coat in Astana, the modern capital, is not a luxury because temperatures can plummet to -40 C in winter.)

But political change – slow, to be sure – is taking place in Kazakhstan: a vast oil-rich and landlocked country in Central Asia, which gained its independence in 1991, when the Soviet Union collapsed. The Russians had both tried to colonize (22.8 percent of the population is Russian) and use Kazakhstan as a dumping place for prisoners, for nuclear facilities and for some of the worst environmental experiments, particularly dooming the Aral Sea by reversing the rivers that once fed it.

In mid-January, Kazakhs went to the polls for an election that could be the beginning – just the glimmering of a beginning — of a new era of democracy in Central Asia. In itself, this election was a small affair and was criticized as such by observers from the Organization for Security and Cooperation in Europe (OSCE).

Myself and a colleague were invited as journalistic observers. We stayed in Astana and observed voting in just two locales, which were orderly and had a movie-set feel to them. We even got to watch President Nursultan Nazarbayev enter the voting booth, exit it and drop his ballot into a transparent box.

Fur-wearing voters drop their ballots into a box at the National Academic Library polling station in Astana.  Photo: Linda Gasparello

The OSCE observers were critical of the way the government determined which parties could participate. They were also critical of the high polling numbers provided by the government, which claimed 80.7 percent support for Nur Otan, the party of the president, a former Soviet official who moved quickly from communism to capitalism but hesitatingly to democracy.

Yet in his 20 years of near absolute power, Nazarbayev has been popular. He has had the unique good fortune of being able to deliver above the expectations of his people.

Nazarbayev has been skillful in positioning Kazakhstan as a friend to everyone. By doing so, he has cultivated comity with his some of his irascible neighbors, including Russia, China, Iran, as well as the less-friendly other “stans” that border his sprawling, underpopulated country (about 16.5 million people).

He also has fostered good relations with ethnic minorities, including Uzbeks, Ukrainians, Uighurs, and many more. Likewise, with 40 religious groups: Kazakhstan is a predominantly Muslim country (70 percent, 26 percent Christian) with a secular tradition. Muslim women do not cover their heads; men are clean-shaven; the call to prayer does not ring out over Astana; and minority religions are permitted, including Buddhism and Judaism.

Cleverly, Nazarbayev has also given his people a shiny bauble to be dazzled by: Astana. In a little more than eight years, this architectural extravaganza has risen on the Central Asian steppe. Astana is spectacular and incorporates a kind of World's Fair-meets-The Emerald City architecture: There is a building that looks like giant golden egg in a white-branched nest, one that opens like a flower's petals, and one that looks like a yurt. The best architects in the world, like Britain's Norman Foster, have been invited to play – and they have let loose.

Palace of Peace and Harmony in Astana  Photo: Linda Gasparello

But Nazarbayev's days as the Wizard of Oz may be drawing to a close, and the tentative nod to democracy may be an acknowledgment of that. He is 71.

A new generation of ambitious, gifted and well-educated men and women now walks the streets of the capital; young people who wonder about the paternalism, want to play on a world stage, and do not remember the bad old days of Soviet domination. They worry about the pipelines that take Kazakh oil in many directions – at present, mostly into Russia and China. Especially, they worry what will happen when their president passes from the scene.

After the disappointment of the Arab Spring, dare the world hope for a democratic birth on the Central Asian steppe? I think so. – For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: Astana, Kazakhstan, Norman Foster, Nursultan Nazarbayev, oil, Organization for Security and Cooperation in Europe

Fasten Your Seat Belt, Obama’s Driving Energy Policy

January 20, 2012 by White House Chronicle Leave a Comment

 

By Llewellyn King
 
If President Obama were driving an automobile the way he's driving energy policy, he'd be stopped and breathalyzed.
 
The president’s latest decision to defer a decision on TransCanada's Keystone XL oil pipeline is a sudden swerve to the left, after his sharp right turn in curbing the enthusiasm of the Environmental Protection Agency for limiting electric utility emissions.
 
Similarly Obama has supported some new drilling for oil, but not in all the areas the industry would like to drill. He's in the middle of the road on this one, and no one is happy.
 
On nuclear power, Obama signaled a right turn and veered left. He came to office endorsing the nuclear option, including loan guarantees. But in a tip of the hat to Senate Majority Leader Harry Reid of Nevada, the president opposed the Yucca Mountain Nuclear Waste Repository, and undermined the case he was making for nuclear.
 
The mischief did not end there. Obama appointed Reid’s man, Gregory Jaczko, chairman of the Nuclear Regulatory Commission (NRC) to end the Yucca project and entomb, in effect, the $9 billion to $15 billion (depending on who is counting) in its abandoned tunnels. But because the government has longstanding legal commitments to take the waste, and has taken the money charged utilities (about $900 million a year) and treated it like tax revenue, the whole project has torn up the commission and landed it in court.
 
Jaczko, a former Reid aide, has riled the other four commissioners and the NRC staff to such an extent that the four went to the then White House chief of staff to complain about the chairman. An act of frustration totally unprecedented and deeply damaging to the credibility of the commission. Nobody resigned and a damaged regulatory body is now passing on the safety of the nation’s nuclear fleet. To all appearances, the chairman’s remit was to tear things up in the commission; that he has done.
 
In particular, the issue of licensing of Yucca Mountain has caused ructions. Jaczko has stopped the licensing in what the quasi-judicial Atomic Safety and Licensing Board in the case considers an illegal act. According to Marvin Fertel, president of the Nuclear Energy Institute, the industry wants the licensing to proceed if only to establish that Yucca was the right way to go and that it can stand the scrutiny that the NRC would give it in licensing. Fertel says that it's a marker for the future.
 
Opponents of Yucca, presumably including Jaczko, fear that a license would pave the way for the Yucca project to come back to life under a different administration. Did Obama, a lawyer, not know that political brute force in a regulatory agency is bound to throw it into disarray, and to leave its decisions to be impugned in court later? So why did he do it?
 
When it comes to alternative energy, Obama positively drove on to the left shoulder. The administration has promised wonders from wind, solar and advanced coal combustion. It has thrown money at these as though it were rice at a wedding. The most conspicuous of this mind-over-matter exercise was, of course, Solyndra. But the spending has been lavish, indeed promiscuous, and the bankruptcies are filling up court dockets and right-wing Web sites.
 
Yet, the gods have smiled on the Obama administration. A boom in natural gas, brought on by new technologies, and enhanced oil production, fathered by the same technological improvements, have brought oil imports down below 50 percent for the first time in 20 years. Electricity supply is holding.
 
Environmental organizations, having been cold-shouldered on climate change by the world in a time of economic upset, picked on the Keystone pipeline with fury. Particularly apoplectic about it has been the Natural Resources Defense Council, which hopes that by canceling the project, Canada would stop developing its oil sands.
 
No, says Canada. I spoke with Canadian Natural Resource Minister Joe Oliver shortly before Obama's first decision to delay the pipeline. Oliver said that if the decision weren't favorable, Canada would build a pipeline across the Rockies to British Columbia and export to China.
 
The latest setback has infuriated Prime Minister Stephen Harper's government, which now says it will no longer rely almost entirely on the U.S. market for its hydrocarbon sales.
 
So Obama’s latest swerve has angered our best ally and good neighbor, denied American workers thousands of jobs and will oblige refineries on the Gulf Coast to buy oil from unfriendly places on the world market.
 
He has also given the Republicans a handsome gift in an election year. Masterful! – For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: Canada, Gregory Jaczko, Harry Reid, Joe Oliver, Keystone XL, Marvin Fertel, Nuclear Energy Institute, Nuclear Regulatory Commission, nuclear waste, oil pipeline, oil sands, President Obama, Trans, U.S. energy policy, Yucca Mountain

Winding Down the Nomination Show

January 13, 2012 by White House Chronicle Leave a Comment

 

Now that Mitt Romney is pulling ahead, I’m saddened to see the greatest political show in years drawing to a close. When will we again thrill to the way Texas Gov. Rick Perry parachuted into Iowa and eclipsed Michele Bachmann briefly?

At that moment the nomination was Perry’s to lose, and he wasted no time in losing it. He entered stage right with Texas panache. Writers and broadcasters, including myself, who had the temerity to question the Texas mystique – that famous swagger – got an earful from Lone Star loyalists. One thought that I should be roped and dragged behind a cutting horse. Another volunteered to do it.

Texans with six-shooters on their hips were ready to defend the honor of their state with cordite. That was until their leader drew a bead on his own foot and fired.

It wasn’t so much that Perry forgot the government department that was bringing down the United States, but that he gave the impression he had never heard of any of his targets before they were whispered to him seconds before he walked to the podium. One prefers one’s political heroes to explode rather than implode. We want to be able to laugh out loud, not feel terribly sorry.

Poor Perry. When he had to substitute piety for swagger, it was over. We want our Texans loud and brash with belt buckles as big as lesser states.

A personal favorite of mine was Herman Cain. Damn it. I liked him; an original by any measure, I’d say. But he was brought down by something less than original: a roving eye directing a roving hand. Jobs-for-sex would not, one feels, solve the unemployment crisis.

I didn’t care that Herman the Lover didn’t know where Libya was. If it had had a Godfather’s Pizza franchise, things would have been different.

The guy was appealing. While pizza may not have the same ring as computers or pharmaceuticals, he had a great resume as a mathematician and naval officer.

It could be argued that Cain and that other roguish aspirant for high office, Newt Gingrich, at least have standard-issue libidos. The rest were, well, a little sexually hung up.

The lovely Michele Bachmann, the righteous Rick Santorum and oh-so-pure Romney, who apparently has been untouched by human temptation or anything else as messy as human beings and their needs, all suffer from moral fundamentalism. It’s hard to imagine Romney as evincing passion of any kind, even though he is the father of five.

Santorum is the most fanatically puritanical about sex. Especially gay sex. To Santorum, the family is the triumph of human achievement. Not since Oliver Cromwell, apparently, has anyone cared as much about the family or its sexuality as Santorum. For him it’s not the individual that builds the state, but only the family — unless it’s the gay family. Indubitably big government is dandy, so long as it’s in someone else’s bedroom.

The same anti-gay fundamentalism animates Bachmann and, apparently, her husband who has a clinic to “cure” homosexuals. What is it about these people that has them so frothed up about other people’s private acts?

Oh, let it go if they froth in private. Who cares now that the race is narrowing?

When Gingrich goes, I’ll be shattered. Gingrich and his wife Calista standing by him as immobile as a cigar-store mannequin, belong on the high shelf of American political bric-a-brac. Gingrich sprouting his version of history, his version of his own role in history; Newt magnanimous in his brief ascendency and bitter as oblivion threatened. This was the Man Who Would Be President unmasked. The consolation prize of National Grouch surely belongs to Newt.

Of course there was a bit player, an understudy, someone qualified but unsung: enter, stage center, Jon Huntsman. A brief appearance, exit stage left. No applause, no mention in the program even.

So dim the lights, bring down the curtain, strike the set – never have so many outrageous eccentrics so unsuited the highest office in the world so entertained so many of us for so long. Sadly, the long national farce is over. – For the Hearst-New York Times Syndicate

Filed Under: King's Commentaries Tagged With: Herman Cain, Michele Bachmann, Mitt romney, Rick Perry, Rick Santorum

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