North Dakota blues: The legacy of fracking

When oil drillers descended on North Dakota en masse a decade ago, state officials and residents generally welcomed them with open arms. A new form of hydraulic fracturing, or "fracking" for short, would allow an estimated 3 to 4 billion barrels of so-called shale oil to be extracted from the Bakken Formation, some 2 miles below the surface.

The boom that ensued has now turned to bust as oil prices sagged in 2019 and then went into free fall with the spread of the coronavirus pandemic. The financial fragility of the industry had long been hidden by the willingness of investors to hand over money to drillers in hopes of getting in on the next big energy play. Months before the coronavirus appeared, one former oil CEO calculated that the shale oil and gas industry has destroyed 80 percent of the capital entrusted to it since 2008. Not long after that the capital markets were almost entirely closed to the industry as investor sentiment finally shifted in the wake of financial realities.

The collapse of oil demand in 2020 due to a huge contraction in the world economy associated with the pandemic has increased the pace of bankruptcies. Oil output has also collapsed as the number of new wells needed to keep total production from these short-lived wells from shrinking has declined dramatically as well. Operating rotary rigs in North Dakota plummeted from an average of 48 in August 2019 to just 11 this month.

Taking a short break - no post this week

I'm taking a short break this week and expect to post again on Sunday, August 30.

Is the pandemic causing an exodus from big cities?

Thomas Homer-Dixon, the Canadian student of complex systems and author of The Upside of Down, wrote in his 2006 book that "September 11 and Katrina won't be the last time we walk out of our cities."

Today, many big-city dwellers appear to be seeking refuge in less crowded towns and rural landscapes. The wealthy, at least, are seeking "bugout" homes away from major cities as places to ride out the pandemic, the economic downturn and the civil unrest that are gripping the world. Beyond news reports, I've heard from friends that homes are being snapped up in eastern Washington state and New York's Hudson Valley by coastal city dwellers looking for a refuge in turbulent times.

It's not just residents who are leaving. The New York Times reports that retail restaurant and merchandise chains are exiting Manhattan because it is "unsustainable." New York City no longer teams with tourists, and its office towers are largely empty. That makes for empty streets with few customers for the city's many retail establishments. This story is being repeated in other major cities including Atlanta, Chicago, Denver, Houston, Los Angeles, Seattle, and St. Louis.

Wireless charging: A colossal waste of energy

It turns out the cellphone industry believes its customers just can't be bothered with setting their phones in charging cradles or worse yet, actually plugging a charging cord into a phone. Users can now simply place a phone on top of a wireless charging pad to get their phones topped up.

For the privilege of being extra lazy these users of wireless charging expend up to 47 percent more energy to charge their phones, something that if widely adopted would require dozens of new power plants across the globe to accommodate.

Everything wireless seems like magic, and it is essentially sold as magic. It's also sold as freedom, freedom from those pesky cords that limit where you can use your electronic devices. But the freedom is illusory. We are simply shackling ourselves ever more tightly to an addictive device that is contributing to an unsustainable fossil fueled way of life which is bound to crumble dramatically if we do not alter course.

Evictions, tenants and the fragility of a "correlated" world

As eviction moratoriums around the United States come to an end, it is expected that landlords will begin evicting nonpaying tenants en masse. Eviction by itself is an unremarkable phenomenon in America. Some 900,000 per year have been occurring routinely in the last several years affecting about 2.3 million people annually.

The scale this time is different. No one knows exactly how things will play out in the United States (or elsewhere for that matter). But, barring new moratoriums on eviction one estimate suggests 23 million people will be subject to eviction by the end of September, more than 10 times the number for an entire year.

Where all those households would go is a puzzling question as the limited space in facilities for the homeless could never hold them. And, given the continuing coronavirus pandemic, those facilities that are observing proper social distancing have had to limit their capacity.

Perhaps the U.S. Congress will come to its senses and pass aid for renters just as it has done for businesses. I am doubtful about such prospects.