The Fair Tax

This idea has gone out of style and I haven’t read much about it lately, but it could save our economy.  Very broadly you would eliminate all Federal taxes, including personal income tax, corporate tax, and payroll taxes, and replace them with a national sales tax on retail goods and services.  Import duties, road tax, and mineral extraction taxes would remain.  What differentiates the Fair Tax from a generic sales tax is you also pay a rebate.  This is to protect the poor people.

Here’s a quick example.  You would have a national sales tax of 20%.  Let’s assume a poor family pays $10,000 a year in expenses.  Therefore you would pay out a rebate of $2,000 to everyone over 18 years old.

This tax has many interesting features.  A very important one is that if utopians were in power and wanted to hand out loot, they’d have to raise the tax on EVERYONE, so everyone would feel the pain.  This is a big advantage.

US companies would be the big winners.  They would not pay a penny in tax and would not need anymore tax accountants and tax lawyers.  They would just run their business to produce a profit, and that is all you would worry about.

Imagine the advantage to US businesses over European businesses.  The Euro’s would have to pay all sorts of taxes, and then whatever import duty we have.  This would be a huge advantage for US based businesses, and in fact your would be insane to build a manufacturing plant anywhere but the US.

Foreigners would also pour their money in the US.  The gains on investments would be tax free.  So not only would their be a huge incentive to expand US production, jobs, and wages, there would be plenty of funds looking to invest.

And on a personal level, you would not fill out any tax forms ever again.  You would pretty much break even (the middle class would actually come out ahead), as you would get a 14.7% raise from your payroll taxes, plus any income tax you now pay would go in your pockets.  Of course this would be offset by the new sales tax, but it would be much easier to deal with.

Another big winner will be small businesses.  If you run a small business your mouth is already watering.  Imagine an environment where you no longer have monthly and quarterly IRS forms to fill out, and you don’t have to live in dread of the IRS coming to pick your pocket.

This tax change makes so much sense it doesn’t have a prayer of passing.  Especially because the biggest loser of all would be lobbyists.  Since there would be no income taxes, there would no longer be a need to hire lobbyists to create loopholes for big businesses to cut their taxes.

Still, check it out.  Just google the FAIR tax and maybe talk to your congressman about it.

Frac Hoax

I want to say up front this is probably 10% true, but it is strange.

I wrote a full post on fracking, so if you are interested check out the May archive (May 10). To recap, I pointed out a major blunder on the frac hoax side. In short if you read any fracking article they always want to state the evil trinity of the frac fluid recipe: sand, water, and CHEMICALS. The obvious reason is to scare the public with the word chemicals. I pointed out they screwed up by including “sand”. The reason is because this shows the size of the fractures created, the width of a grain of sand. This is because the sand props open the fractures.

I wrote the same article on a forum about a year ago, and not soon after I read some fracking articles that stated “water and chemicals”, but left out the sand. Again, 90% chance it was a coincidence. So here it is a few weeks after my last article and what do I find in an AP story?

The energy industry uses hydraulic fracturing , or fracking , to extract oil and gas from rock by injecting high-pressure mixtures of water, sand or gravel and chemicals.

So probably a coincidence, but there’s a 10% chance someone who follows me posted the information on social media that has a larger audience and the fake news media felt a need to change their story. Don’t know. Anyhow gravel is never used for fracking. There’s no way to create a slurry with gravel, and the gravel would never pass through the perforations in your casing. The hoax media wants to spread the impression of larger cracks in the formation.

If you are on social media, start spreading this story. If you are on twitter (I’m not), how about starting #frackhoax.

Critical Deposition: Sibel Edmonds

First a background:  Sibel Edmonds was an FBI interpreter who is probably the biggest whistleblower in history.  Her story was covered up and she was placed under multiple gag orders utilitizing “state secret privilege”.  She found a way to speak.  There was an election lawsuit over Turkish influence, so she was deposed over her knowledge of Turkey.

Note the questions are awkward.  Sibel and the questioning attorney obviously worked out the questions beforehand to keep her from breaking the law.

Of particular note: this deposition was done in 2009.  Listen to when she says: “Denny Hastert is being blackmailed for sexual impropriety.”, then decide if you believe her.

A few years later she said f*ck it, and wrote two books.  One is a “faction”.  I’ve not read her books, but probably should.  In another interview she revealed the source of her information: the FBI was collecting dirt on the behest of the Clintons during the Lewinsky scandal.  Most of the targets were Republicans.  However the FBI was dragging in democrats also, so the operation was shut down.

More on the Leftist Mindset

An interesting discussion between Cernovich and Posobiec:

I gave you the model, and here’s a great example.  There’s one word for these people: inadequate.  That is why Mike and Jack witnessed the hatred coming from the elite fake journalists.  Those people know they are not real journalists.  They are sell out hacks, and they know it.  They also know that if the bribes and payoffs weren’t there, they would starve.  Because they lack the ability to do journalism.

Thus the hatred.  They hate Jack and Mike because they are the real deal.  The darkness can not abide by the Light.  There’s an element of that.  When Jack and Mike walk into the Whitehouse briefing room, they are the light of truth illuminating the inadequacy of the Leftists.  The Left responds with hatred.  They can’t produce, so the only way they can feel any power is to destroy.

Did you ever wonder why the Leftists always kill millions?  As I wrote before, I agree this is reality, but I still can’t accept it.  I worship Life.  I want to produce.  I can’t imagine not wanting that.

All About Fracking

This is a post you will want to refer to in the future.

If you haven’t heard about fracking, then you’ve been hibernating.  As a reader of this blog you are probably suspicious of the hysteria surrounding this old completions process.  And you should be.  I’ll give you the facts so that you can argue the issue effectively.

To begin, we’ll go over conventional drilling.  This involves drilling a vertical hole in the ground and setting a pipe in the bore.  Next comes compeletions, such as perfing.  You have this pipe in the ground and you want to open up say 20 feet of it to let the oil flow out of the sandstone into your bore.  To do this you lower a special explosive charge, which consists of small shaped charges on a tool called a gun.  This is set off and blows perfectly round holes in the pipe we call perforations.  The oil then flows into the pipe and up to the surface.  Later as the well ages you come back and set a pump to pump the oil out.  This is conventional production.

Now occasionally in the old days they would come across a formation that had oil in it, but it didn’t flow particularly well (pun intended).  This is called tight oil.  Way back when, they’d put dynamite down the hole and set it off.  Amazingly this would actually work to stimulate the formation, though results were not always consistent.  This was the original fraturing technology, or frack job.

Around 1947 engineers invented hydraulic fracturing which used water and sand to fracture the formation with high pressure, with the sand holding open the fractures.  This technology was developed over the years and was quite common by the early 1970’s.  I’ve read papers from that time period discussing the technique.  Hydraulic fracturing is therefore old technology that has been around for a long time;  in fact, over 4 million oil wells have been hydraulically fractured.  In 1997 I even bought a used frac tank (used to store the water) for a small plant I was running.

Now there was a type of formation that no one could produce, the famous shale formations.  They had a lot of oil in them, however drilling a vertical well and fracking it gave poor results since you could only get say 50 feet into the formation from your bore, so the oil you could eventually produce was limited to an uneconomical  amount.  You would have basically a cylinder 80 feet high and 50 feet in radius.  There’s just not enough oil contained in that cylinder to make you any money.

In the mid aughts horizontal drilling was more-or-less perfected and someone came up with the bright idea to run the bore horizontally in the shale.  Now your cylinder just became up to 2 miles long, and thus the potential was there to produce a lot of oil (and gas).  A shale oil horizontal well can typically be counted on to deliver over 300,000 bbls. of oil today.  That is economical to produce.

There was one big problem.  You could only frack say 50 feet of it.  If you tried to do more, all you would end up doing is pumping your water into the formation through the first section of your frack.  In other words, you could frack say 50 feet, and then the process would stop as you could not maintain pressure.

Here then came the new technology.  It was called multi-zonal fracking which basically consists of using sliding sleeves to cover up previous frack zones and move to a new zone.  This allowed oil companies to place fracks down the entire 2 miles in different zones.  THIS was the new technology, not hydraulic fracturing.

So how did this mass confusion arise?  It started innocently enough with a newspaper article describing the shale boom.  The reporter wanted to insert some slickster jargon (and the oil patch has plenty of jargon), so the reporter called the new technology “fracking”, instead of giving a detailed description of the sliding sleeve technology which had been the breakthrough.  I do not believe the reporter was malicious, I believe instead she wanted to use the sexy term “fracking” to spice up the story.

Only a few weeks later the eco freaks came crawling out whining how oil companies were experimenting on our water supply with this new technology.  As an aside, I wonder what they would think about acid stimulation (LOL).

So let’s analyze the scare stories.  You know, fracturing will pollute the water.  I guess they think you will get huge fissures coming up and polluting the water table.  To get an idea of how stupid this is, first take your two hands and touch your thumbs and pointer fingers together and make a circle.  This is about the size of the bore hole.  Now imagine standing at the base of the Empire State Building and looking up the side of the building.  The top of the building is way up there, in fact you can’t even see it.  Except that’s not high enough.  Stack 10 Empire State Buildings on top of each other, and now you have the right height.  Yes, the small circle of your hand (the horizontal well bore) is separated from the water table by 10 Empire State Buildings of rock and clay.

How about the fissures?  Well unfortunately for the eco freaks, in order to scare you they always make sure to mention the recipe for frack fluid.  Read any news article about fracking and you will be sure to see the following: “sand, water and CHEMICALS”.  They really want to mention the chemicals, which as an aside are similar to your hair conditioner, but that doesn’t matter, it could be tetra methyl death and still would not matter.  Did you notice “sand”?  Oops, they’ve screwed up.  Why is there sand in the frack fluid?  Yes, that is right, the size of the fractures are the width of a grain of sand and the sand props the fractures open after the pressure is taken off.  Oops.  Furthermore an oil company is lucky if they can get these sand sized fractures to extend even 100 ft. from the well bore.  That leaves a good 10,000 feet of rock and clay before you get to the water table.

Finally you have the scare stories of lighting water on fire.  Personally I think this is naturally occuring methane.  In fact, that is how you find oil and gas.  You look for surface indications like methane bubbling up or oil seeps like the La Brea tar pits in California.  You don’t have to believe me on this, just Google search “methane separator water well” and you will find these tank devices for sale.  They separate out the methane from well water and vent it off through a pipe to your roof.  Methane in well water has been around.

But there IS a small chance that an oil company is responsible, though this was never claimed and there was never a lawsuit.  The problem here is that people now confuse “fracking” with drilling and production.  IF there was a problem, 99% of the time this was due to a fly-by-night company doing a crappy job with a cement job.  Think about the Macondo Oil Well blow out that took down the Deep Water Horizon.  That is an example of a crappy oil company screwing up a cement job.  Bottom line, this has absolutely nothing to do with fracking and instead involves the conventional drilling and completions process.  In that case (pun intended) gas can leak up the outside of the well casing and into the water table.  Again, this has nothing whatsoever to do with fracking and is a potential problem with any oil or gas well.

The final myth is the earthquake myth.  Fracking does not cause earthquakes.  What probably causes earthquakes is the disposal of produced water.  Most people think of oil wells as tapping into an underground lake of oil.  This is incorrect.  What you do is drill into sandstone, shale, or other rock formations and release the trapped fluid.  The fluid is a mixture of oil, gas, and salt water.  The fluid is called emulsion.  At the surface you separate out the emulsion into its constituents in a process vessel called a treater, and you get your oil, gas, and salt water.  Unfortunately the salt water is saltier than the ocean in most cases and there is no way to clean it up since you would end up with tons and tons of contaminated salt.  Instead what happens is that companies drill disposal wells and pump the water back into the formation, or into a depleted formation.

This is the problem.  In Oklahoma many of the older wells are what we call “watered out”.  There might be 100 bbls. of water for 1 bbl. of oil.  When oil was high, companies discovered that they could pump real hard on a few wells, out of the water layer, and this would allow them to produce oil economically from the other wells.  This of course produced a lot of salt water, so disposal wells were drilled to handle it.  Unfortunately the wells were drilled on hidden fault lines.  This caused the earthquakes, not fracking.

Now yes even shale wells will produce a lot of salt water, a typical number being 30 bbls. of salt water for 100 bbls. of oil.  This is known as the water cut.  This water has to be disposed of (as is the case for the vast majority of oil wells).  This is not a problem if you make sure there are no faults where you are drilling.  In the Bakken they probably dispose of 300,000 bbls. of salt water per day, and they don’t have earthquakes.  Same in Saudi Arabia where they produce probably 10 times as much water.

This ends my review of the fracking controversy.  It is stupid, and hopefully you are now better equipped to argue it.