Strategic oil reserve thoughts

Almost on cue, this NY Times article reports on Congressional Democrats calling for the Bush Administration to use the Strategic Oil Reserve to increase supplies of oil in the economy to ease the recent spike in energy prices. On a more thoughtful note, Arthur Kling over at EconLog points us to a Allan Sloan’s better analysis in this Washington Post article:

[T]he $41.55 price for oil today is much higher than the $35.50 it costs for a barrel to be delivered next year. This disparity inspired Loews chief executive Jim Tisch, whose company has extensive energy holdings and plays financial markets like a violin, to propose a trade. Let’s sell oil out of the reserve, he says — not for money, but for oil to be delivered next year. We could get seven barrels next year for six today. We’re now buying 160,000 barrels a day for the reserve, which has 660 million barrels. But by trading rather than buying, we’d save taxpayer dollars, reduce the demand that’s driving up prices today, and spook the speculators. I love it.

Meanwhile, this WaPo article indicates that the amount of oil going into the reserve amounts to less than two-tenths of 1 percent of the world supply, which is too small to have any more than a two to five cent price per gallon effect if the government’s current “buy” policy were changed.

Revenge of the “C” students

In this Wall Street Journal ($) op-ed, novelist Herman Wouk addresses the serious implications arising from the fact that governmental funding of science research in America has become simply another political football. Mr. Wouk focuses on the poor political decisions that undermined the Texas Supercollider Project back in the early 1990’s:

Back in 1993, Congress abruptly killed the largest basic science project of all time, the Superconducting Super Collider in Texas. With three billion dollars already spent, and the project pretty much on time and on budget, our lawmakers cut off all funding, and voted another billion just to shut the project down. This bizarre abort sent a shock wave through the scientific world which has never entirely subsided. The event remains in controversy, but one undeniable outcome has been the diminished international repute of American science.
The Superconducting Super Collider would have been an oval tunnel 54 miles around, where some 10,000 magnets cooled by liquid helium would accelerate protons to collide almost at the speed of light, and thus to wrest from the subatomic debris a prime secret of nature: the Higgs boson, dubbed by one Nobel laureate the “God Particle,” a possible key to the final understanding of the universe. Ronald Reagan approved the project, George Bush senior sustained it, and it died under Bill Clinton. Today a powerful super collider in Geneva is being upgraded by a consortium of European physicists, intent on beating the world to the Higgs boson, with the Americans out of the picture.
* * *
Nevertheless, even Benjamin Franklin, a founding father and a one-man interface of science and politics, could not have foreseen how this loose play in American governance might one day affect world destiny, nor how the pace of scientific advancement would lethally accelerate in times to come. It is a long reach from the capture of a lightning spark in a Leyden jar in Philadelphia, to the dropping of a uranium bomb on Japan. Yet the same intellectual curiosity that moved Franklin to risk electrocution from the clouds motivated the British physicist James Chadwick to discover the neutron, and so to unlock the horrific energy in the atomic nucleus. And it motivated thousands of high-energy physicists to venture their careers and years of their lives on the Superconducting Super Collider, only to be stranded by Congress, high, dry and unemployed at a vast abandoned hole in Texas.
These scientists had been the darlings of Congressional budgeting ever since the end of World War II, when they delivered into President Truman’s hands a weapon new in human history. The president, an artilleryman in World War I, said of the bomb, “It was a bigger piece of artillery, so I used it.” It did stop the war at once, to be sure. The historical debate about his decision may never end, but the triumph of particle physics was brilliant, and the rise in its annual funding spectacular, until the ax rudely fell. One SSC physicist bitterly exclaimed on getting the word, “It’s the revenge of the C students.” A more philosophical colleague observed: “Well, our 50-year ride on the bomb is over.”

And then, with the wisdom of his almost 90 years, Mr. Wouk makes an insightful observation for us to ponder:

I go through the days with good cheer and jokes, aware of dark threats looming ahead for our little global home, probably beyond my time, but close enough. The prime task of today’s politicians, after getting themselves elected and re-elected, is to deal open-eyed and intelligently with those threats in the light of the best science. We who elect them bear the ultimate, inescapable responsibility to choose well.

3rd Circuit orders recusal in asbestos bankruptcies

This NY Times article reports on the unusual order issued yesterday in which a Third Circuit Court of Appeals panel ordered U.S. District Judge Alfred M. Wolin of Newark, N.J. to withdraw from three of the five important asbestos-related bankruptcy cases that are pending in his court. The basis of the order is the appearance of bias.
In a 2-to-1 decision, the 3rd Circuit ordered Judge Wolin to withdraw from overseeing the bankruptcy cases involving W. R. Grace, Owens Corning and U.S. Gypsum. The appellate court will decide later whether to remove him from a fourth case involving Armstrong World.
Lawyers for the creditors objected to meetings that Judge Wolin conducted with plaintiffs’ lawyers and other parties to the case without a record being made for those who were absent. The 3rd Circuit agreed, holding that such meetings “were flawed because no opportunity existed for their adversaries to know precisely what was said” and what effects might result. The creditors also contended that Judge Wolin had appointed advisers who were not impartial because they represented plaintiffs in the G.I Holdings, Inc. bankruptcy case, and the appellate court noted that two of them had a conflict of interest in the five cases because they represented individuals with asbestos claims against G.I. Holdings.
Asbestos-related personal injury litigation has been controversial for years. Some economists estimate that companies have already paid more than $70 billion in asbestos claims with insurance companies paying one-third to one-half of the total. A RAND Corporation study estimates that there have been 8,400 defendants in thousands of asbestos-related lawsuits over the past 15 years.
Legislation to create a no-fault trust fund to compensate victims of asbestos-related diseases is stalemated in Congress. Proponents of the legislation say that asbestos-related litigation risk has forced more than 70 companies into bankruptcy.

Seymour Hersh on Abu Ghraib

Seymour Hersh‘s articles on the Abu Ghraib scandal are the stuff of Pulitzer Prizes. Here is his latest article in which he implicates the top Pentagon brass in the interrogation techniques that led to the abuse of prisoners at the prison. His earlier articles on the prison are here and here.
Joel Mowbray in this FrontPageMagazine.com piece provides a counterbalance to Mr. Hersh’s pieces. This John Miller profile of Hersh is along the same lines.
Read all and decide for yourself.

Richard Chesnoff on Iran’s support of radical Islamic fascists

As noted in this earlier post, Richard Z. Chesnoff has long been one of America’s most prominent reporters on foreign affairs. In this NY Daily News op-ed, Mr. Chesnoff reports on Iran’s systematic support for the radical Islamic fascists who are waging war against the United States. As Mr. Chesnoff notes:

Tehran’s mad mullahs have thrown their support behind select Islamic extremists for many years. But a top-secret report prepared by senior Mideast intelligence sources says Iran has recently stepped up its efforts to train and arm a widening range of terrorists, many of whom pose direct threats to Western targets, including in Iraq.
Iran’s protÈgÈs, new and old, are both Sunni and Shiite Muslims, and they hail from all across the Middle East: Morocco, Algeria, Libya, Saudi Arabia, Iraq, the Gaza Strip, the West Bank and Lebanon. Many are already ensconced in Iranian training camps.
Most of these Iranian-fostered groups are violently anti-American. Some, like Lebanon’s Usbat al-Ansar and Iraq’s Ansar al-Islam, have direct ties to Al Qaeda.

Mr. Chesnoff also points out the ominous implications of this Iranian support of the enemy for the war effort in Iraq:

Most frightening of all, my sources say there are indications Hamas is helping Ansar al-Islam develop short-range rockets with which to attack coalition troops in Iraq. These are the same type of Qassem rockets that Hamas has been producing in Gaza and firing at Israeli settlements and towns.
“The coalition’s abundance of defensive armor in Iraq,” says one source, “has made it increasingly difficult for Ansar al-Islam to attack stationary targets.”
Qassem-style rockets would help our enemies overcome that difficulty.
A Hamas-financed Qassem workshop, I’m told, has been set up in Iran under the supervision of a Hamas cell leader named Abu Husam, who is a qualified engineer.
Needless to say, Iran is eager not to leave any traces of its involvement in attacks against the U.S.
But Iranian intelligence has quietly helped its terrorist protÈgÈs cross over into the United Arab Emirates and return with materials for the rocket project through the Iranian military port of Bandar Abbas.
“According to the Hamas-Al Qaeda plan,” says an intelligence source, “the first rockets are to become operative in Iraq in early June, just before rule is transferred to the Iraqi interim government.”

And Mr. Chesnoff concludes by asking the $64 question:

What was that we were being told recently about the Iranian government’s “moderating” its positions?

Read on.

Internal or criminal investigations?

This NY Times article reports on the Justice Department’s aggressive use of obstruction of justice laws in its investigation of accounting irregulaties at the giant software company, Computer Associates.
John F. Savarese, a former federal prosecutor who also represented Martha Stewart before her trial this year, led a team from Wachtell, Lipton, Rosen & Katz, the prominent New York law firm that the company hired to investigate the charges in an internal probe. Savarese and Wachtell turned over information regarding the probe to the Justice Department. On April 9, three former executives of Computer Associates pleaded guilty to obstruction of justice charges that were not tied to statements told to federal investigators, but to statements made to Wachtell during the company’s internal investigation.
The executives were never accused of lying directly to federal investigators or a grand jury. Their guilty pleas were based on the theory that, in lying to Wachtell, they had in effect misled federal officials because Wachtell passed their lies on to the Justice Department.
As the story relates, the Justice Department’s use of the company’s law firm represents a serious extension of Justice’s use of obstruction of justice laws. Usually, obstruction charges cover behavior such as destroying documents, pressuring witnesses not to testify, or lying to federal officials. Inasmuch as an employee can be fired for asserting the privilege against self-incrimination in an internal company probe, this new Justice Department policy may actually hinder such internal probes. Lower level company employees will now be less willing to discuss matters with the company’s investigators, which will make it more difficult to implicate higher level company executives in the alleged wrongdoing.
This is yet another example of the unhealthy criminalization of business that is occurring under the Bush Administration’s Justice Department. And the Republican Party is supposed to be business-friendly?

Double Ugh

For the second time in the last three games in which he has pitched, closer Octavio Dotel blew a save in the top of the ninth and the Stros ended up losing to the Mets in the rubber game of their three game series at the Juice Box, 3-2.
In blowing this save, Dotel made the incredible boneheaded move of throwing Mike Piazza a two out, two strike fastball over the middle of the plate (with first base open to boot) that Piazza promptly deposited in the Astros’ bullpen 420 feet from home plate to tie the game at 2-2. Jason Phillips then won the game for the Mets with a solo yak off of Brandon Backe in the top of the 13th.
Except for Roger Clemens, it was bad karma all the way around for the Stros. The Rocket was brilliant, allowing only 2 hits and a walk over 7 innings with 10 strikeouts. However, the Stros’ bats went back to sleep as they collected 14 singles without an extra base hit. Moreover, in addition to the blunder of pitching to Piazza with first base open and two outs in the top of the ninth, Stros manager Jimy Williams continues his incomprehensible strategy of allowing superior out-maker Brad Ausmus — one of the worst hitters in Major League Baseball — to hit in key potential run scoring situations. As usual, Ausmus delivered with his usual strikeout and pop up.
Things don’t get any easier for the Astro hitters as they go to Miami tomorrow for a three game series against the Astro-killer Marlins pitching staff and then move on to Cincy for a three game series next weekend against the Reds. The Stros return home a week from Tuesday when they begin a two week period of playing the Cubs and the Cardinals in consecutive home and away series, with a two game set against the Cubs at the Juice Box being the first games of that key two week segment of the schedule.

Phfffft . . .

That’s the sound the the San Antonio Spurs’ just ended season is emitting.
By the way, if you are interested, the Spurs are taking applications for the timekeeper’s job at their arena in San Antone.

Stros break three game skein

The Stros showed signs of breaking out of their collective slump of over the past week as they cranked out 12 hits on Saturday night in defeating the Mets, 7-4.
Andy Pettitte won his fourth straight game since coming off the disabled list, giving up 4 runs on 6 hits with 6 strikeouts in 6 innings. While Miceli and Lidge were both strong in an inning of relief each, Dotel made things interesting in the ninth by walking the first two batters before getting the next three, two on K’s.
SS Adam Everett had a 2 run yak (his 3rd of the season) and 2B Jeff Kent also had a couple of hits and RBIs. Another positive sign for the Stros is that third baseman Morgan Ensberg continued his hitting resurgance. After posting an anemic .552 OPS (i.e., on base average + slugging percentage) during April, Ensberg has warmed up to a very respectable .951 OPS during May.
The story of this Major League Baseball season to date — The Rocket — goes for his eighth straight victory Sunday afternoon before an SRO crowd at the Juice Box. It should be fun.

Wags goes on DL

Long-time Astros closer and fan favorite, Billy Wagner, who was traded to the Phillies during this past offseason, was placed on the 15 day disabled list yesterday (retroactive to May 7) with a pulled groin.
Wags is easily the best Astros closer of all-time. He has a 2.50 career ERA, compared to a league average of 4.31 during his career, and he has saved 104 runs more than an average pitcher would have saved in 477 games over his career. After a great season with the Stros last season, Wags is off to a good start this season with a 1.20 ERA/5 RSAA (runs saved against average) in his first 13 games.