Category Archives: Business

Off To DC

I got up at 3 AM to catch a 5 AM flight from LAX to DCA via ORD. Heading there for the FAA-AST Space Transportation Conference tomorrow. Earliest flight I’ve ever taken from there, I think. I had TSA pre-check, but the line wasn’t open yet, so I had to do the whole drill. The American terminal is pretty dead at 4 AM. Anyway, I’m in a flying chair somewhere over the plains with Internet. It almost feels like the 21st century.

Shale 2.0

Yeah, I fully expect to see oil go below $20, expecially after the shakeout and bankruptcies that allow pumping at lower prices. And it will be good for everyone except oil companies and oil kleptocracies. Other than California, look for gas below two bucks indefinitely.

[Update a few minuts later]

OK, well, this isn’t as encouraging:

During the 2007 crisis, central banks the world over made a coordinated effort that pumped large amounts of liquidity into the system, easing the pressure. However, since 2009, these same central banks have followed an easy monetary policy, inflating balance sheets to scary levels, as shown in the chart above. They will find it difficult to handle any future crises caused by low oil prices. They are now out of ammunition.

The current oil crisis will see regime changes in strategic places, and a currency crisis is in the offing. The world is staring at deflation. And while the 2007 crisis started in the US and then spread around the world, today’s crisis is affecting all major nations simultaneously. All are struggling due to low oil prices—some directly because of lower revenues, and others because of deflationary pressure.

The next crisis will be larger and longer and it will hurt a lot more than the last one. The windfall at the gas pump is a dark harbinger.

At least we’ll be able to afford to fill the tank, if we have jobs.

Climate Models

Another example of their bogosity:

It occurs to me to wonder whether this error in the GISS-E2-R ocean mixing parameterisation, which gave rise to AMOC instability in the Pliocene simulation, might possibly account for the model’s behaviour in LU run 1. It looks to me as if something goes seriously wrong with the AMOC in the middle of the 20th century in that run, with no subsequent recovery evident.

But let’s make wealth-destroying policy based on this!

[Update on January 28th]

Insights from Karl Popper to break the gridlock in the climate debate.

It’s sad how so many people who (ironically) accuse me of being a “climate denier” or a “science denier” are so profoundly ignorant of how science actually works.

[Bumped]

[Update a while later]

An analysis from Judith Curry and Nic Lewis on the latest climate crap from Mann et al:

As I see it, this paper is a giant exercise in circular reasoning:

  1. Assume that the global surface temperature estimates are accurate; ignore the differences with the satellite atmospheric temperatures
  2. Assume that the CMIP5 multi-model ensemble can be used to accurately portray probabilities
  3. Assume that the CMIP5 models adequately simulate internal variability
  4. Assume that external forcing data is sufficiently certain
  5. Assume that the climate models are correct in explaining essentially 100% of the recent warming from CO2

In order for Mann et al.’s analysis to work, you have to buy each of these 5 assumptions; each of these is questionable to varying degrees.

You don’t say.

Apollo, I Love You

but:

So maybe Apollo went too far too soon and set an impossible target against which everything since has been measured. It wasn’t about primarily about exploration, although that did happen, and it certainly wasn’t about sustainability, but it has cast a long shadow over what has come since.

Am I committing some sort of heresy by saying these things? Well, all I can say is that the people who made Apollo happen are still my heroes. I still get a lump in my throat when I think what they did, the risks they took and the certainty they had in their belief that it was worth it. Armstrong himself has now left us, his surviving fellow moonwalkers are now old men – still active, still advocating the next big step, but a vivid reminder of the time that has passed since Apollo.

I guess my conclusion is that the further we get from those days, the more anomalous Apollo appears – an amazing adventure that will stand out as future generations look back on the twentieth century, but not something that can be repeated. We live in a different world now.

Yes. We need to stop trying to do Apollo to Mars. It isn’t going to happen, and moreover, it shouldn’t.