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Operation Paperclip by Annie Jacobson. (Excerpts regarding Hitler’s Chemists – Otto Ambros)

Hitler’s Chemists

Otto Ambros

Otto Ambros was a fastidious man. His calculations were exact, his words carefully chosen, his fingernails always manicured. He wore his hair neatly oiled and parted. In addition to being Hitler’s favorite chemist, Ambros was the manager of IG Farben’s synthetic rubber and fuel factory at Aushwitz.

page 21

“The concentration camp already existing with approximately 7000 prisoners is to be expanded.” Santo noted in his official company report. For Ambros, Farben’s arrangement with the SS regarding slave laborers remained vague; Ambros sought clarity. “It is therefore necessary to open negotiations with the Reich Leader SS [Himmler] as soon as possible to discuss necessary measures with him,” Ambros wrote in his official company report. The two men had a decades-old relationship; Heinrich Himmler and Otto Ambros had known one another since grade school. Ambros could make Himmler see eye-to-eye with him on the benefits that Auschwitz offered to both Farben and the SS. – Operation Paperclip. page 153.

Otto Ambros was key to making the Buna factory a success. With his knowledge of synthetic rubber and his managerial experience–he also ran Farben’s secret nerve gas production facilities–there was no better man than Otto Ambros for the Auschwitz job….
Major Tilley waited at Dustin for the return of Tarr and Ambros. It was now clear to him that there was no single individual more important to Hitler’s chemical weapons program than Otto Ambros had been. Ambros was in charge of chemical weapons at Gendorf and Dyhernfurth, and he was the manager of the Buna factory at Auschwitz. From interviewing various Farben chemists held at Dustbin, Tilley had also learned that the gas used to murder millions of people at Auschwitz and other concentration camps, Zyklon B, and it was sold to the Reich by an IG Farben company. In one of these interviews, Tilley asked IG Farben board member Baron Georg von Schnitzler if Otto Ambros knew that Farben chemicals were being used to murder people.

“You said yesterday that a [Farben employee] ‘alluded’ to you that the poisonous gasses [sic] and the chemicals manufactured by IG Farben were being used for the murder of human beings held in concentration camps,” Major Tilley reminded von Schnitzler in their interview
“So I understood him,” von Schnitzler replied.
“Didn’t you question those employees of yours further in regard to the use of these gases?”
“They knew it was being used for this purpose,” von Schnitzler said
von Schnitzler confessed, “I asked [the Farben employee] is it known to you and Ambros and other directors in Auschwitz that the gases and chemicals are being used to murder people?”
“What did he say?” asked Major Tilley.
“Yes; it is known to all the IG directors in Auschwitz,” von Schnitzer said.

Few men were as important to IG Farben during the war than Otto Ambros had been. IG Farben began first producing synthetic rubber in 1935, naming it Buna after its primary component, butadiene…. Otto Ambros poured over maps of this region, called the Upper Silesia, in search of a Buna factory site, he found what he was looking for. The production of synthetic rubber required four things: water, flat land, good railway connections, and an abundance of laborers. Auschwitz had all four. Three rivers met in Auschwitz, the Sola, the Vistula, and the Przemsza, with a water flow of 525,000 cubic feet per hour. The land was flat and sixty-five feet above the waterline, making it safe from floodwaters. The railway connections were sound. But the most important was the labor issue. The concentration camp next door could provide an endless labor supply because the men were cheap and could be worked to death. For Farben, the use of slave labor supply could take the company to levels of economic prowess previously unexplored.

pages 151 – 155

It was only a matter of time before an American chemical company would learn of the army’s interest in a whole new field of chemical weapons. An American chemist, Dr. Wilhelm Hirschkind, was in Germany at this same time. Dr. Hirschkind was conducting a survey of the German chemical industry for the U.S. Chemical Warfare Service while on temporarily leave from Dow Chemical Company. Dr. Hirschkind had spent several months inspecting IG Farben plants in the U.S. and British zones and now he was in Heidelberg, hoping to meet Ambros. Lieutenant Colonel Tarr reached out to Colonel Weiss, the French commander in charge of IG Farben’s chemical plant in Ludwigshafen, and a meeting was arranged.

On July 28, 1945, Dr. Hirschkind met with Ambros and Lieutenant Colonel Tarr in Heidelberg. Ambros brought his wartime deputy with him to the meeting, the Farben chemist Jurgen von Klenck. It was von Klenck who, in the final months of the war, had helped Ambros destroy evidence, hide documents, and disguise the Farben factory in Gendorf so that it appeared to produce soap, not chemical weapons. Jurgen von Klenck was initially detained at Dustbin but later released. The Heidelberg meetings lasted several days. When Dr. Wilhelm Hirschkind left, he had these words for Ambros: “I would look forward after the conclusion of the peace treaty [to] continuing our relations [in my position] as a representative of Dow.”

Only later did FIAT interrogators learn about this meeting. Major Tilley’s suspicions were now confirmed. A group inside the U.S. Chemical Warfare Service, including his former partner, Lieutenant Colonel Tarr, did indeed have an ulterior motive that ran counter to the motives of CIOS, FIAT, and the United Nations War Crimes Commission. Tilley’s superior at Dustbin, Major Wilson, confirmed this dark and disturbing truth in a classified military intelligence report on the Ambros affair. “It is believed that the conflict between FIAT… and LT-Col Tarr was due to the latter’s wish to use Ambros for industrial chemical purposes” back in the United States.”

“All documents regarding the Ambros affair would remain classified for the next forty years, until August of 1985. That an officer of the U.S. Chemical Warfare Service, Lieutenant Colonel Tarr, had sheltered a wanted war criminal from capture in the aftermath of the German surrender was damning. That this officer was also participating in meetings with the fugitive and a representative from the Dow Chemical Company was scandalous.”

page 157 – 159

By 1964, Ambros had been a free man for thirteen years. He was an extremely wealthy, successful businessman. He socialized in Berlin among the captains of industry and the professional elite. When the Frankfurt Auschwitz trial started, he was a board member of numerous major corporations in Germany, including AEG (Allgemeine Elekrizitats Gesellschaft), Germany’s General Electric; Hibernia Mining Company; and SKW (Suddeutsche Kalkstickstoff-Werke AG), a chemical company.

page 415 – 416

In separate letters to Finance Minister Ludger Westrick and Deputy Finance Minister Dr. Dollinger, a new secret was revealed, though Ambros promised not to make public a piece of the information they shared. “Concerning the firms abroad where I am a permanent co-worker advisor,” Ambros wrote, “I won’t name them [publicly] because I don’t want to tip off any journalists who might cause trouble with my friends. You know about W.R. Grace in New York… and I hope I can stay with Hibernia Company. Concerning the firms in Israel,” Ambros wrote, “stating their names publicly would be very embarrassing because they are [run by] very public, well-respected persons in public positions that have actually been at my home and are aware of my position, how I behaved during the Reich, and they accept this.”

The “well-respected” public figures in Israel to whom Ambros referred have never been revealed. That Ambros also had worked for the American company W.R Grace would take decades to come to light. When it did, in the early 1980s, the public would also learn that Otto Ambros worked as a consultant for the U.S. Department of Energy, formerly the Atomic Energy Commission, “to develop and operate a plant for the hydrogenation of coal in a scale of 4 million tons/year at the former IG Farben industry.” That a convicted war criminal had been hired by the Department of Energy sparked indignation, and congressmen and journalists sought further details about Ambros’s U.S. government contract. In a statement to the press, the Department of Energy insisted that the paperwork had been lost…

Letters on White House stationary reveal that Deputy National Security Adviser James W. Nance briefed Reagan about how it was that the U.S. government could have hired Otto Ambros. Nance’s argument to the president was that many others hired him. “Dr. Ambros had contracts with numerous officials from Allied countries,” wrote Nance. “Dr. Ambros was a consultant to companies such as Distillers Limited of England; Pechiney, the French chemical giant; and Dow Europe of Switzerland. He was also the chairman of Knoll, a pharmaceutical subsidiary of the well known chemical corporation BASF.” President Reagan requested further information from the Department of Energy on its Ambros contract. Nance told the president, “The DOE and/or ERDA [The Energy Research and Development Administration] do not have records that would answer the questions you asked in the detail you requested. However, with Ambros’ involvement in the company shown and his special knowledge in hydrogenation of coal, we know there were productive contacts between Dr. Ambros and U.S. energy officials.” Even the president of the United States could not get complete information about an Operation Paperclip legacy.

In the midst of the scandal, a reporter for the San Francisco Chronicle telephoned Ambros at his home in Mannheim, Germany, and asked Ambros about his 1948 conviction at Nuremberg for mass murder and slavery.

“That happened a very long time ago,” Ambros told the reporter. “It involved Jews. We do not think about it anymore.”

Pages 418 – 419

In the decades since Operation Paperclip ended, new facts continue to come to light. In 2008, previously unreported information about Otto Ambros emerged, serving as a reminder that the story of what lies hidden behind America’s Nazi scientist program in to complete.

A group of medical doctors and researchers in England, working on behalf of an organization called the Thalidomide Trust, believe they have tied the wartime work of IG Farben and Otto Ambros to the thalidomide tragedy of the late 1950s and early 1960s. After Ambros was released from Landsberg Prison, he worked as an economic consultant to German chancellor Konrad Adenauer and to the industrial magnate Friedrich Flick, the richest person in Germany during the Cold War. Like Ambros, Flick had been tried and convicted at Nuremberg, then released early by John J. McCloy.

In the late 1950s, Ambros was also elected chairman of the advisory committee for a German company called Chemie Grunenthal. Grunenthal was about to market a new tranquilizer that promised pregnant women relief from morning sickness. The drug, called thalidomide, was going to be sold under the brand name Contergan. Otto Ambros served on the board of directors of Grunenthal. In the late 1950s, very few people knew that Grunenthal was a safe haven for many Nazis , including Dr. Ernst-Gunther Schenck, the inspector of nutrition for the SS, and Dr. HeinzBaumkotter, an SS captain (Hauptsturmfuhrer) and the chief concentration camp doctor in Mauthausen, Natweiler-Struthof, and Sachsenhausen concentration camps.

Ten months before Grunenthal’s public release of thalidomide, the wife of a Grunenthal employee, who took the drug to combat morning sickness, gave birth to a baby without ears. No one linked the birth defect to the drug, and thalidomide was released by the company. After several months on the market, 1959, Grunenthal received its first reports that thalidomide caused polyneuropathy, or nerve damage, in the hands and feet of elderly people who took the drug. The drug’s over-the-counter status was changed so that it now required a prescription. Still, thalidomide was marketed aggressively in forty-sex countries with a label that stated it could be “given with complete safety to pregnant women and nursing mothers without any adverse effect on mother and child.” Instead, the drug resulted in more than ten thousand mothers giving birth to babies with terrible deformities, creating the most horrific pharmaceutical disaster in the history of modern medicine. Many of the children were born without ears, arms, or legs and with reptilian, flipperlike appendages in place of healthy limbs.

The origins of thalidomide were never accounted for. Grunenthal had always maintained that it lost its documents that showed where and when the first human trials were conducted on the drug. Then, in 2008, the Thalidomide Trust, in England, headed by Dr. Martin Johnson, located a group of Nazi-era documents that produced a link between thalidomide and the drugs researched and developed by IG Farben chemists during the war. Dr. Johnson points out that Grunenthal’s 1954 patents for thalidomide cryptically state that human trials had already been completed, but the company says it cannot offer that data because it was lost, ostensibly during the war. “The patents suggest that thalidomide was probably one of a number of products developed at Dyhernfurth or Auschwitz-Monowitz under the leadership of Otto Ambros in the course of nerve gas research,” Dr. Johnson says.

The Thalidomide Trust also links Paperclip scientist Richard Kuhn to the medical tragedy, “Kuhn worked with a wide range of chemicals in his nerve gas research, and in his antidote research we know he used Antergan, which we are fairly sure was a ‘sister drug’ to Contergan,” the brand name for thalidomide, Dr. Johnson explains.

In 2005, Kuhn experienced a posthumous fall of grace when the society of German Chemists (Gesellschaft Deutscher Chemiker, GDCh) announced it would no longer award its once-prestigious Richard Kuhn Medal in his name. Nazi-era documents on Kuhn had been brought to the society’s attention, revealing that in “the spring of 1943 Kuhn asked the secretary-general of the KWS [Kaiser Wilhelm Society], Ernst Telschow, to support his search for the brains of ‘young and healthy men,’ presumably for nerve gas research.” The Society of German Chemists maintains that “the sources indicate that these brains were most likely taken from execution victims,” and that ‘[d]espite his scientific achievements, [Richard] Kuhn is not suitable to serve as a role model, and eponym for an important award, mainly due to his conduct towards Jewish colleagues.”

It seems that the legacy of Hitler’s chemists has yet to be fully unveiled. Because so many of these German scientists were seen as assets to the U.S. Army Chemical Corps’ nerve agent programs, and were thus wanted as participants in Operation Paperclip, secret deals were made, and the many documents pertaining to these arrangements were classified.

pages 431 – 433

Operation Paperclip

http://anniejacobsen.com/operation-paperclip/

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A dozen dirty documents
Twelve documents that stand out from the Center’s new oil and chemical industry archive

By Kristen Lombardi for The Center for Public Integrity

The Center for Public Integrity, along with researchers from Columbia University and the City University of New York, on Thursday posted some 20,000 pages of internal oil and chemical industry documents on the carcinogen benzene.

This archive, which will grow substantially in 2015 and beyond, offers users a chance to see what corporate officials were saying behind the scenes about poisons in the workplace and the environment.

Here are 12 examples of what the petrochemical industry knew about benzene; the impetus behind industry-sponsored science; and the corporate spin that often occurs when damning evidence against a chemical threatens companies’ bottom lines.

What the industry knew:

The industry knew the dangers of benzene exposure at both high and low concentrations, as illustrated by this 1943 report for Shell Development Company by a University of California researcher.

“Inasmuch as the body develops no tolerance to benzene, and as there is a wide variation in individual susceptibility, it is generally considered that the only absolutely safe concentration for benzene is zero.” That was a conclusion reached in a 1948 toxicological review of benzene prepared for the American Petroleum Institute, a trade association.

Benzene’s dangers known in 1943 (pg 2)
This 1943 report, prepared for Shell, is among the earliest to suggest that any prolonged exposure to benzene may be harmful.

No safe exposure level (pg 4) This 1948 review, prepared for the oil industry’s main trade group, the American Petroleum Institute, continues to torment the industry in litigation alleging benzene can cause various types of leukemia and other diseases of the blood-forming organs. In essence, it says the chemical is so potent that there is no safe exposure level.

A 1950 consultant’s memo to Shell lists benzene as having “established carcinogenic qualities.”

Benzene recognized as a well-known carcinogen (pg 1)

This 1950 memorandum from a consultant for Shell Development Company notes that benzol — an obsolete name for benzene — is a well-known carcinogen. As the author states, the memo was prompted by “an increased concern about the incidence of cancer” among Shell workers.

Motivations for industry involvement in research:

In 1995, a benzene study by the National Cancer Institute caught the attention of Exxon scientists, who closely monitored it.

Industry interest in cancer research (pg 1)
An Exxon scientist, B.F. Friedlander, explains that he and industry colleagues are “monitoring” a series of studies by the National Cancer Institute because of their focus on “health risks at low benzene exposures.” The memo shows the petrochemical industry’s early interest in the work of the NCI, which has examined the effects on Chinese workers exposed to benzene at levels below the legal occupational limit in the United States.

While attempting to gain support for a proposed study of benzene toxicity in Shanghai, China, the American Petroleum Institute cites “a tremendous economic benefit” to companies, which could gain data to combat “onerous regulations.” A project overview explains that publications linking benzene to childhood leukemia may cause concerns about the chemical to “resurface.”

‘Tremendous economic benefit’ from the industry study (pg 1)
The six-page overview touts the proposed Shanghai research as a way for the petrochemical industry to gain an “accurate understanding” of benzene’s health effects, which, in turn, would bring “tremendous economic benefit.”

A 2000 summary of the API’s research strategy, drafted by the group’s Benzene Task Force, explains that the research program “is designed to protect member company interests.” The anticipated results could “significantly ameliorate further regulatory initiatives” to curb benzene emissions.

Protecting industry interests (pg 2)

The summary describes the intent of the API’s research program as being “designed to protect member company interests.”

An email exchange explains how “HSE [health, safety and environment] issues surrounding benzene as well as the litigation claims” against the industry compel companies to participate in the industry-sponsored study.

Motivations for research (pg 2)
An email from one Shell executive argues that the “litigation claims we continue to see” are prime reasons for the company to spend millions of dollars on the proposed Shanghai research.

A PowerPoint presentation from 2001 lists “significant issues of concern” to encourage financial support for the API’s research on benzene-exposed workers in China. Among them is “litigation alleging induction of various forms of leukemias and other hematopoietic diseases.” The study, according to the presentation, could provide “strong scientific support for the lack of a risk of leukemia or other hematological diseases at current ambient benzene concentrations to the general population.”

Significant issues of concern (pg 3)
This PowerPoint slide suggests “significant issues of concern” that the proposed Shanghai research might help combat, which would save the petrochemical industry “millions of dollars in expenses.” The issues include more stringent regulations and litigation from benzene exposure.

“Litigation support” and “risk communication” are listed as goals in this 2007 memorandum describing an API risk management program. Further objectives are to establish current regulations as “protective” and avoid additional action.

Oil lobby’s risk management program (pg 1)
The memorandum details the oil lobby’s benzene “risk management” program, intended to “develop scientific data” for it and its member companies to use for “science advocacy” and “litigation support.”

Corporate spin

An undated litigation defense guide written by a senior Shell attorney acknowledges the 1948 report on leukemia and offers a “comprehensive strategy” on how to respond to litigation, including releasing benzene-related documents only on court order.

Acknowledgement of the science showing no safe levels of benzene (pg 4)

Here the author, Richard O. Faulk of Shell Oil’s legal department, references a 1948 Toxicological Review prepared for the American Petroleum Institute. The review found that “the only absolutely safe concentration for benzene is zero.”

After a draft of an API recruitment brief reminds potential study sponsors of “personal injury claims,” an email exchange among members of the Benzene Health Research Consortium urges deletion of “the reference to legal liabilities.”

Don’t mention the legal liabilities (pg 3)

This email from a Shell executive responds to an attached draft of a 2002 recruitment brief that reminds prospective donors about benzene liability costs. In the email, the executive urges colleagues to delete “the reference to legal liabilities” and emphasizes that “the only reason we are doing this is in support of protecting workers.”

A 2001 email from the consortium’s communications committee explains that the perception of the study “needs to be that this is not being done to protect against litigation”

Controlling the message on benzene (pg 1)

The email shows the companies behind the Benzene Health Research Consortium working hard to control their message. It lays out the “scope of public affairs” for the consortium’s communications committee, which includes countering any “perception” that the Shanghai study was “done to protect against litigation.”

Click on the link below to access original article and archival documents.

http://www.publicintegrity.org/2014/12/05/16361/dozen-dirty-documents

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Russia Blamed, US Taxpayers on the Hook, as Fracking Boom Collapses

By Ben Ptashnik, Truthout

As Congress removes restrictions on taxpayers bailing out the too-big-to-fail banks, the right is blaming environmentalists and Russia for the demise of the fracking boom. In reality, the banks’ junk bonds and derivatives have flooded Wall Street, and now the fracking bubble threatens another financial crisis.

Collapsing crude oil prices due to oversupply are reaching tsunami proportions, threatening Wall Street banks, investors and a dozen countries, foremost Russia, Iran and Venezuela, where revenue losses have caused severe financial degradation, and economies are about to implode. While Americans are today enjoying $2 per gallon gasoline, Wall Street’s analysts predict that an imminent energy market collapse will bring financial institutions to their knees once again, and taxpayers are being set up for another mandatory bailout.

At the heart of these tectonic shifts in the entire energy sector is the recent expansion of the hydraulic fracturing (fracking) industry, a boom cycle that began in earnest when Congress and the Bush administration passed the Energy Policy Act of 2005, which exempted the new horizontal drilling technology from the Clean Water Act, the Safe Drinking Water Act and the National Environmental Policy Act. By tapping considerable quantities of new oil and gas resources from shale deposits, the fracking boom promised US energy independence, upending the world’s prevailing paradigms around renewable energy and peak oil expectations. Environmentalists fought against the huge Keystone pipeline infrastructure that would deliver the fossil fuels to foreign markets, fearing that exploiting these resources would undermine the struggle for the curbing of carbon emissions.

Fracking also threatened the dominance of Russia and Saudi Arabia as the fossil fuel suppliers of Europe when it became evident that the United States would soon become a net exporter. In the United States, fracking was hyped on Wall Street as a get-rich-quick opportunity, attracting massive capital input, and creating an investment bubble. Bloomberg reported this year that the number of bonds issued by oil and gas companies has grown by a factor of nine since 2004.

“There’s a lot of Kool-Aid that’s being drunk now by investors,” Tim Gramatovich, chief investment officer and founder of Peritus Asset Management LLC, told Bloomberg in an April 2014 article. “People lose their discipline. They stop doing the math. They stop doing the accounting,” he continued. “They’re just dreaming the dream, and that’s what’s happening with the shale boom.”

When gas fracking first popped onto the scene, grandiose claims were made that the United States had 100 years of gas supply in shale, or 2,560 trillion cubic feet. And Wall Street rode that initial estimate. The only downside (beside the environmental disaster left by this toxic industry) was that, like the housing bubble which depended on ever-growing home values to maintain profitability, shale gas wells had to deliver consistent or growing production and profitability to pay back heavy debt interest loans on well driller companies: $3 to $9 million per well. Fracking wells require not just drilling, but also huge injections of energy, water, sand and chemicals to fracture the rocks that hold the oil and gas deposits.

But in fact, no statistical evidence confirmed the hyped claims of a 100-year shale gas supply. In 2011, a study downsized this estimate from 2,560 trillion cubic feet to 750 trillion cubic feet, and by 2013, the US Geological Survey refined that down to 481 trillion cubic feet – less than a 19-year supply based on 2013 rates of production. Nevertheless, huge amounts of capital poured into increasingly marginal operations, and the fracking market was flooded with junk bonds and derivatives as investors piled in.

Meanwhile oil fracking, which is separate from gas fracking, also needed huge injections of capital, but more importantly, oil frackers needed oil prices to stay at $85 a barrel or higher on average to break even. Many of the shale oil wells that have sucked up a huge amount of investment have also turned out to have short lives and their operators required continued infusions of capital to drill new wells to keep afloat, even as prices tumbled due to the glut they themselves created. The Bakken, one of the largest oil fracking plays, is a typical example. It grew exponentially after environmental protections were removed. But since 2008, Bakken has required increasingly larger numbers of wells just to maintain level production and service debt. The industry, already in trouble in 2013, has now endured plunging revenues through a year of oil selling at $60 to $70 per barrel, on average, instead of $90 to $100.

Everyone had expected that in 2014 the Saudis would move to limit supply and maintain stable oil prices by cutting back production, as OPEC has done for decades. But an unexpected shockwave hit the industry in November 2014: The Saudis laid down the gauntlet and announced their intention to continue full production and let oil prices drop.

For the Saudis, this serves two purposes: First, it undermines the expansion of US shale oil by forcing prices down so low that many of the wells have to be shut down or lose money. Second, it punishes their enemy, Iran, whose oil export-based economy has been savaged by the lower prices. The Saudis are sitting pat, with a trillion-dollar war chest savings account accumulated over a decade of $100 per barrel oil. Oil Minister Ali al-Naimi has publicly admitted that the Saudis will wait as long as needed to retain market share, even if prices plunge further.

Falling oil prices will place a huge stress on the world’s junk bond market as energy companies now account for 15 percent of the outstanding issuance in the non-investment grade bond market. The plunge in the prices of crude could trigger a “volatility shock large enough to trigger the next wave of defaults,” according to Deutsche Bank.

This explains why the Obama administration – with complicity of both congressional Democrats and Republicans – managed in the wee hours of the morning to slip a loophole into the supposedly “must-pass” cliff-hanger omnibus budget bill. This toxic Trojan horse, passed in December 2014, now includes a minor footnote provision that might cause taxpayers to pick up the tab on more than a trillion dollars (yes, trillion) if the energy market bubble implodes, which it must if oil stays at half the price it fetched just six months ago.

After last minute, heavy lobbying on the budget bill by Jamie Dimon of JPMorgan Chase and an army of 3,000 Wall Street lobbyists, it appears that once again sufficient insecurity and fear had been spread among the political class regarding destabilization of the financial markets (or withdrawal of campaign financing). They allowed a last minute amendment that killed Dodd-Frank protections, and allowed US taxpayers to be shaken down to cover Wall Street’s shale gambling debacle.

The heavy-handed move by the financial industry has outraged progressives and libertarians alike. It seems that these Wall Street criminals, like junkies attached to their drugs of choice, just could not resist the high of easy cash from Ponzi scheme market bubbles, and so they have stuck it to the US public once again: Preposterously huge bonuses, Porsches, pricey call girls, and million-dollar Manhattan condos were at stake. So hey, why should they kick the habit? After all, not a single one of those con artists went to jail last time.

Wall Street is now flooded with fracking industry derivatives contracts that protect the profits of oil producers from dramatic swings in the marketplace. Derivatives are essentially insurance policies taken out by the oil industry to guard against fluctuations in the cost of fossil fuel supplies. Dramatic swings rarely happen, but when they do they can be absolutely crippling.

Derivatives taken out to ensure prices don’t go down are now creating billions in losses for those who sold such bets on the market; someone is going to have to absorb massive losses created by the sudden drop in oil on the other end of those insurance contracts. In many cases, it is the big Wall Street banks, and if the price of oil does not rebound substantially they could be facing colossal losses.

The big Wall Street banks did not expect plunging home prices to implode the mortgage-backed securities market in 2008, but their current models also did not have $60 oil prices included in projections. The huge losses may send a shock wave into the entire financial industry. It has been estimated that the six largest “too-big-to-fail” banks control $3.9 trillion in commodity derivatives contracts, those same gambling instruments that brought us the 2008 housing collapse. And a very large chunk of that amount is made up of oil derivatives. Combined with the huge flood of shale junk bonds on the market, the derivatives could initiate a bubble burst that could turn into a financial market implosion.

Meanwhile, the global climate change issue and energy market turbulence have morphed into geopolitical tensions over European fracking. Unsubstantiated allegations in a New York Times report by Andrew Higgins claim that the Russians are funding anti-fracking protests to maintain their hegemony over gas markets.

The allegations have infuriated environmentalists and climate justice activists. The last thing they want is to be made scapegoats for the fracking collapse and be played as the neo-Cold War dupes of the Russian empire. But memories of red-baiting suddenly hang in the air as (by seeming coincidence) dozens of right-wing media sites regularly devoted to anti-Soviet slanders or climate change denial immediatelypicked up Higgins’ Times piece, as if on cue.

There are now dozens more of such published reports. Even as the US fracking industry collapses and tensions over control of Ukraine and other former Soviet satellites re-emerge, there seems to be a concerted right-wing effort to label fracking opponents Russian agents.

Vague innuendos dominate this narrative. In the Times piece, for example, former NATO Secretary General Anders Fogh Rasmussen is quoted: “I have met allies who can report that Russia, as part of their sophisticated information and disinformation operations, engage actively with so-called non-government organizations.” Others write, “Some in Sophia believe” or “Those who suspect Russian involvement” or “There’s no smoking gun, yet . . .”

Critics in Romania accused the Times and Higgins of scapegoating environmentalists and acting as partisan players in a renewed Cold War.

“What, exactly, is the grand total of evidence that Russia is financing these anti-fracking protests?” asks American blogger in Romania, Sam C. Roman, in his article, “Pot vs. Kettle,” pointing out that the first anti-Russia allegation came from a politician who owned land that Chevron planned to frack, and is thus losing money from the protests. “Not one allegation against Russia in the entire article is proven by a single document, piece of evidence or other direct proof. All that exists are shadowy insinuations and allegations.” He asserts that accusations by Lithuanian, Romanian and NATO officials against Russia have not yet to be backed up by any proof.

“Add it up,” Roman writes. “You’ve got two former NATO [secretary generals] stumping for Chevron (which competes with Gazprom, a Russian energy company that also conducts fracking operations in Europe) blaming the Russian government for protests. . . . And all of this tied up in a neat little bow by an American journalist who has already been caught publishing anti-Russian propaganda in his newspaper before.”

This all leaves the United States somewhat schizophrenic. On the one hand, the United States and NATO’s foreign policy hawks are delighted by the oil price collapse; it serves to isolate and subdue Russia, expand NATO’s influence in Eastern Europe, and puts pressure on Iran to negotiate on nuclear aspirations. Not to mention that with gasoline at $2 per gallon, consumer spending and economic growth will be enhanced. The US economy grew by a comparatively robust 5 percent in the third quarter of 2014.

According to an article by Larry Elliott in The Guardian, “Stakes Are High as US Plays the Oil Card Against Iran and Russia,” the price drop was an act of geopolitical warfare by the United States, administered by the Saudis. Elliott suggests that US Secretary of State John Kerry allegedly struck a deal with Saudi Arabia’s King Abdullah in September. That might explain how oil prices dropped during the crisis caused by Islamic State in Iraq and Syria, which would normally have caused prices to rise.

It would also explain why the Obama administration allowed the financial industry the amendment to Dodd-Frank that effectively exempts financial institutions from liability associated with derivatives. Though shale derivatives were not specifically mentioned by the Wall Street lobbyists as they pressured their allies in Congress and the White House, it is becoming increasingly clear that the too-big-to-fail banks were beginning to panic as dark clouds gathered on the horizon in the shale derivatives trade.

Most bank customers and voters don’t know that Congress has already written into finance regulations that, in the case of insolvency, financial institutions could grab the assets of depositors and “bail-in” – which means they can save themselves from their losses in gambling operations at their investment divisions by grabbing cash assets of depositors, even those that are FDIC guaranteed, and legally convert them to bank stocks. That means that in the event of another market crash, Chase and Citi could take their depositors’ cash in savings accounts or CDs, and give the customers back a bank stock certificate (of questionable value) instead.

There are also those who scratch their heads and ask, “Why did the TBTF banks push for a deletion of the Dodd-Frank provision now, instead of waiting for the friendlier Republican-controlled Congress to pass this legislation?” The only answer that seems to make sense, and explain their urgency, is that the collapse is imminent.

In the 1990s dot-com craze, every new Silicon Valley start-up company was advertised as the next Microsoft. What followed was the crash of 2000, when the NASDAQ dropped 4,000 points (80 percent) in months. This chart below is what the crash looked like in 2000 to 2002 after the market had reached 5,000 (almost exactly where it stands today).

Having learned their lesson well from the last bailout, and knowing that they will have a much harder time coming to Congress hat-in-hand after a collapse, the TBTF banks probably decided not to wait, pushing their minions in the Beltway to inoculate them as soon as possible from the potential market explosion.

In the meantime, they were probably dumping their own stocks on unsuspecting investors. Based on year-end reports for March 31, 2014, for 127 major oil companies, cash input for the fracking industry was $677 billion, while revenues from operations only totaled $568 billion – a difference of almost $110 billion. And this was before the price of oil started dropping six months ago.

In three out of seven major fracking fields in North America, companies are already reporting losses, with closures particularly acute in Canada. It’s not clear whether economists fully appreciate what’s about to transpire. This decline in rig count is just the beginning. Perhaps the end will come as early as this winter or spring, as fiscal reports for 2014’s fourth quarter are published, operations shut down, crews are laid off, and many unprofitable oil and gas rigs are mothballed.

So, whom will the banks, brokers and investors scapegoat for this upcoming crash? Some predict that they will likely use every available media outlet to blame community activists, Democrats and Obama for stopping the Keystone pipeline and for opposing the fracking industry. And as in the climate change denier movement, the narrative will probably use “communist” and “socialist” rhetoric, which is why the Russian card is so important to play: Hence the Higgins article.

The pundits on Fox will likely play on the patriotism of the right and use their Big Lie ploy (say something enough times, it becomes the truth) to the hilt. Six months from now, while studiously avoiding mention of our “allies,” the Saudis, or the Wall Street banks, they will likely be vociferously defending those poor “beleaguered US oilmen” who could have made our country strong and independent again in energy, but were broken by the Democrats and those “commie environmentalists” working for Putin. The market crash will be blamed on the “climate hoax.”

BEN PTASHNIK

http://www.truth-out.org/news/item/28406-russia-blamed-us-taxpayers-on-the-hook-as-fracking-boom-collapses

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TEDX (The Endocrine Disruption Exchange) THE FOSSIL FUEL CONNECTION

Extracting, processing, and burning fossil fuels (natural gas, oil and coal) introduces huge volumes of harmful chemicals into our environment. These chemicals, and the tens of thousands of chemical products synthesized from them, are now present in every environment on earth, including the womb. Extremely low concentrations of many chemicals can damage the endocrine system of our bodies by interfering with the intricate, delicate network of natural chemical interactions critical to healthy development and normal function.


Click here to access full statement

FUEL FOR THOUGHT AND MOTIVATION

In 1991, an international group of experts stated, with confidence, that “Unless the environmental load of synthetic hormone disruptors is abated and controlled, large scale dysfunction at the population level is possible.”1 They could not perceive that within only ten years, a pandemic of endocrine-driven disorders would begin to emerge and increase rapidly across the northern hemisphere. Today, less than two decades later, hardly a family has not been touched by Attention Deficit Hyperactivity Disorder, autism, intelligence and behavioral problems, diabetes, obesity, childhood, pubertal and adult cancers, abnormal genitalia, infertility, Parkinson’s or Alzheimer’s Diseases. TEDX’s findings confirm that each of these disorders could in part be the result of prenatal exposure to chemicals called endocrine disruptors. TEDX has also confirmed that the feed stocks for most endocrine disrupting chemicals are derived from the production of coal, oil, and natural gas. It is clear that endocrine disruption, like climate change, is a spin-off of society’s addiction to fossil fuels. Setting aside the effects of endocrine disruptors on infertility, and just considering their influence on intelligence and behavior alone, it is possible that hormone disruption could pose a more imminent threat to humankind than climate change. The urgency of the above conclusions provided the incentive for much of the work described on this website.

1. From the Wingspread Consensus Statement, as published in Colborn and Clement (1992). Chemically Induced Alterations in Sexual and Functional Development: The Wildlife/Human Connection. Princeton Scientific Publishing, Princeton, NJ. pp493.


Click here to access the TEDX website

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Green Chemistry: Theory & Practice

3.1 Alternative feedstocks/starting materials

Currently, 98% of all organic chemicals synthesized in the United Sates are made from petroleum feedstocks. Petroleum refining takes up 15% of the total energy used in the US, and its energy usage is rising because the low quality raw petroleum available now requires more energy for refinement. During conversion to useful organic chemicals, petroleum undergoes oxidation, the addition of oxygen or an equivalent; this oxidation step has historically been one of the most environmentally polluting steps in chemical synthesis. As a result of these consideration, it is important to reduce our use of petroleum-based products by using alternative feedstocks….

The exploration of biological sources of alternative feedstocks need not be limited to agricultural products: agricultural waste or biomass, and non-food-related bioproducts, which are often made up of a variety of lignocellulosic materials, may provide important alternative feedstocks.

Other classes of alternative feedstocks are also emerging, such as light. For example, heavy metals, which are often used in petroleum oxidation processes, are also quite toxic and are carcinogens or cause damage to neurological systems. Recently discovered alternative syntheses replace the heavy metal reagents with the use of visible light to carry out the required chemical transformations.

3.3 Alternative Solvents

An important area of green chemistry investigations has centered around the selection of a medium in which to carry out a synthetic transformation. Because the dominant paradigm of chemical synthesis has been around solution chemistry, the question is often phrased as ‘What solvent should be used?’. This phrasing, of course, begs the question, ‘Should a solvent be used at all?’. Many of the solvents commonly used are some of the volatile organic compounds known to cause smog when released to air. These solvents are listed in the United States’ Clean Air Act as substances to be avoided. Research is being is conducted that pursues chemistry that has previously been done in a solvent and discovers a way to do the same chemistry in various solventless systems….

3.4 Alternative product/target molecule

While a synthesis is often driven by the pursuit of a particular target molecule, it is also commonly the case that what is actually being pursued is the ability to make any chemical that can serve a particular function or have a certain performance criterion. For many years the pharmaceutical industry has been doing research into designing safer chemicals. With pharmaceuticals, the object is to maximize the therapeutic benefits of a molecule while minimizing or eliminating the toxic side-effects. These same principles can be applied to the full range of chemical applications.

In the cases where function is the primary motivation, molecular manipulation that preserves efficacy of function while mitigating toxicity or other hazards is the goal of green chemistry. Through these efforts and other toxicological research, it is often possible to identify the part or parts of a molecule that produce toxic effects. Similarly, through chemical research, we are able to identify those parts of a molecule that are required to give the chemical the desired function – to allow it to serve a specific, desired use.

In designing safer chemicals, one identifies the undesirable, toxic portion of a molecule and lessens or eliminates its toxicity, while maintaining the function of the molecule. In many cases, the overlap of the toxic and functional portions creates a worthy challenge for the synthetic chemist….

3.6 Alternative catalysts

Some of the major advances in chemistry, especially industrial chemistry, over the past generation have been in the area of catalysis. Catalysis has not only advanced the level of efficiency but has also brought about concurrent environmental benefits. Through the use of new catalysts, chemists have found ways of removing the need for large quantities of reagents that would otherwise have been needed to carry out the transformations, and would ultimately have contributed to the waste stream. It is true that various classes of catalysts, such as the heavy metal-based catalysts, have been found to be extremely toxic.

excerpts from pages 22 – 27

Click on the link below for sales and additional information regarding this groundbreaking book.


Green Chemistry: Theory & Practice

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Energy Task Force Records and GAO to go to court to obtain Energy Task Force records


The Cheney Energy Task Force

In the spring of 2002, under order from a federal judge, the U.S. Department of Energy released to NRDC roughly 13,500 pages relating to previously secret proceedings of the Bush administration’s energy task force. (President Bush formed the task force in early 2001 to develop a national energy policy, with Vice President Cheney at the helm.) Even though the government heavily censored the documents before supplying them to NRDC, they reveal that Bush administration officials sought extensive advice from utility companies and the oil, gas, coal and nuclear energy industries, and incorporated their recommendations, often word for word, into the energy plan.


What the Documents Reveal

Before turning over the energy task force records to NRDC, the Bush administration removed extensive portions of information. Some pages were empty. Whole strings of correspondence were stripped to just a few words.

Yet even with this censorship the records reveal that industry lobbyists not only played a pivotal role in developing the administration’s national energy strategy, they wrote much of it themselves. The administration sought the advice of polluting corporations early and often and then incorporated their recommendations into its policy, sometimes verbatim.

The following pages, while a tiny sampling of the task force records, illustrate both the influence industry lobbyists wielded and the degree to which the Bush administration continues to try to cloak the task force’s proceedings in secrecy.

“Section 2 – All federal authorities shall include in any regulatory action that could significantly and adversely affect energy supplies, distribution, or use, a detailed statement on (i) the energy impact of the proposed action… prior to taking such regulatory action, the agency shall consult with, and obtain the concurrence of the Secretary of Energy.”

Two – The EPA’s enforcement campaign against refineries should be halted and reexamined… As you know, it is impossible to build new refineries. The Browner EPA launched an extensive coordinated campaign against the industry so the industry has had to add capacity at existing sites. The EPA has sent section 114 requests, in effect blanket subpoenas, to most refiners, and many are now facing notices of violation and legal action. A few have settled because they believe it is easier to pay a fine.

The patent will also make it even harder to use ethanol in gasoline where ozone problems exist in the summer months (e.g. Chicago and Milwaukee). The Administration should study this issue and take steps to put any royalty collections on hold.

My favorite.

June 2001 email is to Francis Blake, then deputy secretary of energy, from Kyle McSlarrow, chief of staff to Secretary Abraham. Illustrating the close ties between the current Department of Energy and the industries it governs, McSlarrow points out that he inadvertently sent a message to Blake at the deputy secretary’s former email address at General Electric.

“Sorry, I accidently sent this to your old GE e-mail.”


View the Energy Task Force Records

Click the link above to access records.

PLEASE READ BEFORE VIEWING DOCUMENTS

The task force records are in Adobe Acrobat PDF format (click for Acrobat Reader)
The PDF files are large and may load slowly if you’re not on a high-speed connection
To manage the number and size of PDF files, NRDC compiled documents into batches generally around 25 pages; pages are not necessarily related because they are grouped together and, conversely, related pages may be separated into more than one PDF file
While documents are searchable, search results may not be comprehensive

What’s Here and How it Got Here
On March 25, 2002, as a result of an NRDC lawsuit, the U.S. Department of Energy provided NRDC approximately 10,000 pages of documents relating to Vice President Cheney’s National Energy Policy Development Group, more commonly called the energy task force. In April and May the department turned over an additional 3,500 pages. (The department also continued to send some additional pages in June and July.) Among these documents are meeting notes, daily schedules of Energy Department officials and correspondence with and policy recommendations from outside parties.

The Energy Department provided NRDC with paper documents. NRDC immediately began to review and analyze the records while also reproducing them for the Internet in order to make them available to the public. First the originals were scanned and saved as electronic files. Then they were converted to searchable text using Optical Character Recognition software, or OCR. In order to preserve the original appearance of the documents, both the scanned picture of each page and the text produced by the OCR software were embedded in the final files.

How the Documents are Organized
Before turning over the documents the Energy Department added Bates numbers — the large numbers that appear on each page, usually in the lower right corner. The Bates numbers range from 1 to 30,017 but large gaps exist throughout the series — the Energy Department withheld more than 16,000 pages.

NRDC grouped the documents into batches, generally around 25 pages each, in order to make them easier to review online. We grouped multiple documents together so there would be fewer files to search through and download; we kept the page counts down so the files wouldn’t be unwieldy, especially for people using older computers and slower Internet connections.

The sequence of the documents in batches 1 through 402 follows the sequence of the DOE’s Bates numbers, though as noted above many pages are missing. Documents in batches numbered 1000 and above appear in the order they were submitted to NRDC by the DOE.

NRDC has not grouped like documents together except in following DOE’s sequence. And while we made an effort not to break up related pages, for example a cover letter and its attachments, because of the volume of documents, our commitment to making them public quickly, and user-convenience considerations, we have likely done so in some cases.

What’s Missing
The Energy Department withheld more than 16,000 pages of the task force records. In addition, many of the documents provided have been heavily redacted (censored). NRDC continues to fight in court to obtain the remaining documents that we, and you, are legally entitled to see. Click here for the DOE’s “Vaugh index,” provided under court order, which lists the documents the department withheld.

Some of the documents the DOE provided in print are already available on the Web (including an NRDC report). Those documents and their Web addresses are listed under Other Web Documents on the View Documents page.

Search Tips
Begin your search by using the website’s Search the Cheney Energy Task Force Records box to locate documents that contain particular words or phrases. Your search will pull up one or more “batch files”; each batch file consists of several pages bundled together. (A batch might be one 25-page document, one-third of a 75-page document, or several short documents, such as email messages.)


GAO WILL GO TO COURT TO OBTAIN ENERGY TASK FORCE RECORDS

In a letter to Rep. Waxman, David Walker, head of the General Accounting Office, announces that GAO will sue the Administration to obtain access to records of the White House energy task force chaired by Vice President Cheney. The links below to the GAO documents were no longer available so I downloaded the PDFs. They can viewed below.

Documents

GAO Report on White House’s Refusal to Cooperate

Letter from GAO Announcing the Suit

Statement from GAO Explaining the Decision to Sue

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Chasing Molecules by Elizabeth Grossman

Excerpt from the chapter Material Consequences
Pages 160 – 161

Concepts in Green Chemistry

“The fundamental concept of green chemistry,” Collins tells me, can be spelled out in an equation: “Risk equals exposure times hazard [Risk = Hazard X Exposure]. As green chemists, let’s try to understand the hazard and get the hazard out. We have to turn the aircraft carrier around and get the hazard out.” Another aspect of this metaphorical ship is that we’ve relied on our preferred energy source–petroleum–to supply the base for so many of our current synthetics. “If you don’t have the energy problem fixed, it overwhelms everything else.” notes Collins.

“A hundred years ago, the chemical industry was terrible about protecting us from chemicals that kill cells. Now we’re dealing with chemicals that disrupt cellular development, chemicals that interact with DNA and may cause mutations that can lead to cancer. The stakes of not dealing with endocrine disrupters are very high. We need to address endocrine disruptors from inside chemistry.” It all comes back to chemical design, Collins believes.

“The body has a magnificent mechanism for destroying chemicals,” says Collins. And some chemicals need to be persistent. “Drugs must be persistent to work. But when they get into rivers and lakes–what does that mean in the long term?” Yet he points out–alluding to the endocrine-disrupting compounds found in so many personal care products, cosmetics, gadgets, and textiles–persistent compounds are being used to “gloss up the life of adults while messing up the life of kids. There needs to be a mandate of intergenerational responsibility in a way we’ve never seen before.”

“There’s a fracture in the world of research, with research threatening the status quo of corporate culture. Real-time profits are going to be challenged and it’s extremely threatening to certain segments of corporate culture,” says Collins. “How do you respond to a new product when there is a problem? Do you pretend it doesn’t exist? We need to talk about it publicly. These issues really, really matter, and we need to do something about them.”

The morning after the presentation he’s given to the Oregon Environmental Council, I have a conversation with Collins over breakfast. “Capitalism can’t work for sustainability without credible government constraints,” he tells me. “We’ve been obsessed by technical performance and entirely missed anticipating bioaccumulation.”

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