MarEx Mailbag:
This week’s Mailbag contains a few letters, two of which reference our lead editorial from last week. Another references our May 7 Editorial on piracy and the question of whether or not to arm mariners. Last week, our lead piece referenced the rapidly developing situation in Alaska where competing bids are trying to build a pipeline down through Canada from Alaska’s North Slope with the purpose of bringing natural gas to U.S. markets. You can read our 11 July editorial, entitled “Lining up the Gas: Steaming in the Wrong Direction” by clicking HERE. The next two letters reference that editorial. Here’s what our readers had to say:
Dear Joe, You've hit the nail squarely. Having been involved in the gas business for the last five years, I can testify to the volatility of this market. Assumptions that guided business thinking five years ago have changed, and changed again. A pipeline built with today's trading and political conditions in mind just might not match up with whatever is coming - even by the time it's finished. And your point about controlling our own energy resources is going to be more and more important as this century unfolds. A tanker that suffered a steering failure would soon have a tug on the way. But we've been drifting for years! Keep sending out signals, Joe, and maybe someone will respond before we go aground. Reid Sprague MarEx Editor’s Remarks: Well, obviously I liked this letter. Reid has written before. Thanks for weighing in again! Here’s another:
To: Joe Keefe As always, your articles are informative and thought-provoking, but you left out a couple of relevant facts regarding the proposed gasline from the North Slope through Canada. One is that Conoco-Phillips already has a LNG terminal on the Kenai Peninsula that is exporting LNG from nearby deposits (not the North Slope) to the Japanese market. It could be expanded or a second terminal could be built to feed the growing West Coast market with LNG produced from North Slope gas, rather than leaving our Pacific market dependent on imports from from Indonesia, Australia, and Russia. Such a terminal would provide the West Coast with a domestic source of LNG, saving the expenditure of countless dollars on imports. Another factor not mentioned is that the gasline through Canada would pass through the tar-sands area, which is the largest consumer of natural gas in Canada, as required for the processing of tar sands into crude oil and refined products. Estimates vary, but it is evident that the processing of the Canadian oil-shale would be at least close to being the number-one consumer of that Alaska natural gas. So, I am in agreement with you that Alaska's natural gas should be used to supply US consumers, and the best way to do that would be to liquefy it and ship it in American ships to West Coast ports. Wes Starratt PE MarEx Editor’s Remarks: Mr. Starratt has written to us in the past. He’s a West coast-based writer. And, while I’d like to see that LNG on U.S.-flagged ships, too, I just don’t see it happening in this climate. Shippers will utilize the “cargo swap” method to avoid having to build and flag a ship here. Could we see a few U.S. flag assets emerge from a Valdez LNG facility? Sure, but I think it will be the exception, rather than the rule. Wes brings out some points that I failed to mention or even see. We appreciate the input. Our next letter references our May 7 2009 on line editorial, entitled, “Piracy Debate Changes course in Washington.” The article discussed the possibilities of armed protection for U.S. merchant crews and potential changes to existing laws that were being discussed at the highest levels in Washington at that time. Some of those proposed laws are now in play. You can read that editorial by clicking HERE or you can read what our reader had to say below:
Mr. Keefe, Thank you for an excellent article on 7 May 2009, and for taking the pro stance in regard to arming these ships. I represent an independent group of retired/active law enforcement and military professionals who are ready to be contracted by cargo and container companies when it is allowed. I am willing to guess the State Department member testifying not to arm these ships has obviously never been taken hostage, and will do nothing to change matters rather than take a firm stance. It seems those with the biggest voice in the argument not to arm are not in harms way, or are selling LRADS or other types of non-lethal devices which have been answered with deadly gun and rocket fire. Their opinions and failure to create changes will send others to face the risks of kidnap, robbery, and death. It is their failure to act that is hindering the right of self defense while transiting international shipping lanes. We are a group of mature, experienced and properly equipped security contractors who are ready to provide for a vessels self-protection should the need arise. Members of my group have maritime experience and are ready to work in cooperation with a ships crew and under the direction of her Captain. We do not have to factor in sprawling compounds, millions of dollars of equipment, or top heavy ranks of owners and CEO's into our charges. We stand ready to identify and warn off an impending attack, and at last resort repel by force. As we wait for clearance, contracts, and common sense to prevail, the pirates have now expanded their area of operation with a recent attack off of Oman. How much longer will the law makers and the shipping industry wait? How many more deaths, injuries, hostage takings and ransoms must we endure? Thank you for your time Sir, and for taking what I feel is a strong and decisive position on this matter. It is now obvious that if we do not meet these illegal acts of piracy and terrorism with equal force, we enable them. Ed OCallaghan, NYPD Det, (ret.), USAR(79 to 85) L.P.I, NCPI# 3718 Nags Head, NC MarEx Editor’s Remarks: A lot of water has gone under the bridge since 7 May (and a lot of hot air expelled in Washington, too). Some of the things Mr. O’Callaghan would like to see in place may well be on the way to happening. We thank him for writing and reading.