Comments on: Closing the Straits of Hormuz and the Effects on Oil Prices http://whiskeyandgunpowder.com/closing-the-straits-of-hormuz-and-the-effects-on-oil-prices/ Whiskey and Gunpowder features articles on gold, oil, currencies, emerging markets, energy, and more. Tue, 22 May 2012 22:11:13 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: D. Balcer http://whiskeyandgunpowder.com/closing-the-straits-of-hormuz-and-the-effects-on-oil-prices/comment-page-1/#comment-1644 D. Balcer Thu, 09 Apr 2009 13:17:17 +0000 http://whiskeyandgunpowder.com/?p=3928#comment-1644 I suspect the USS Hartford was not to blame for it's collision with the USS New Orleans. The USS New Orleans has had more than it's share of "fundamental" design problems (steering system, propulsion) since it was built. "New Orleans" was commissioned on 10 March 2007 in New Orleans, Louisiana, two years behind schedule and 90 percent over budget. [Liewer] After commissioning, she steamed to San Diego, California via the Panama Canal to join the US Pacific Fleet. She arrived at her new homeport of Naval Base San Diego on 3 May 2007 and was assigned to Amphibious Squadron Five. After arriving in San Diego, "New Orleans" required 400,000 more hours of construction to bring it to fully operational status. Commander Scott Davies took command of the ship in June 2008. [Liewer] In August 2008, the ship flunked its INSURV inspection. The INSURV inspectors documented 2,600 deficiencies, including problems with the steering system, broken ventilation fans, inoperable elevators, corrosion on the flight deck, and an unreliable propulsion system. "USS New Orleans was degraded in her ability to conduct sustained combat operations," the INSURV report said. "The ship cannot support embarked troops, cargo or landing craft." [Liewer] I suspect the USS Hartford was not to blame for it’s collision with the USS New Orleans. The USS New Orleans has had more than it’s share of “fundamental” design problems (steering system, propulsion) since it was built.

“New Orleans” was commissioned on 10 March 2007 in New Orleans, Louisiana, two years behind schedule and 90 percent over budget. [Liewer] After commissioning, she steamed to San Diego, California via the Panama Canal to join the US Pacific Fleet. She arrived at her new homeport of Naval Base San Diego on 3 May 2007 and was assigned to Amphibious Squadron Five.
After arriving in San Diego, “New Orleans” required 400,000 more hours of construction to bring it to fully operational status. Commander Scott Davies took command of the ship in June 2008. [Liewer]

In August 2008, the ship flunked its INSURV inspection. The INSURV inspectors documented 2,600 deficiencies, including problems with the steering system, broken ventilation fans, inoperable elevators, corrosion on the flight deck, and an unreliable propulsion system. “USS New Orleans was degraded in her ability to conduct sustained combat operations,” the INSURV report said. “The ship cannot support embarked troops, cargo or landing craft.” [Liewer]

]]> By: Commodities Broker | Drumbeat: April 4, 2009 | Commodities Options | Commodities Futures | Commodities Prices http://whiskeyandgunpowder.com/closing-the-straits-of-hormuz-and-the-effects-on-oil-prices/comment-page-1/#comment-1596 Commodities Broker | Drumbeat: April 4, 2009 | Commodities Options | Commodities Futures | Commodities Prices Sun, 05 Apr 2009 16:45:57 +0000 http://whiskeyandgunpowder.com/?p=3928#comment-1596 [...] Closing the Straits of Hormuz and the Effects on Oil Prices For many years, we in the West have worried about Iran closing the Straits of Hormuz to oil tanker traffic. An abrupt closure would instantly spike oil prices well into three-digits, and immediately change the energy equation of the world. Indeed, many geostrategic scholars believe that closing the Straits of Hormuz would be tantamount to an act of war. But what if it was the US that closed the Straits of Hormuz? What would the world think if the US directly precipitated the end of ship traffic in the Straits, or at least severe restrictions on transit and passage? [...] [...] Closing the Straits of Hormuz and the Effects on Oil Prices For many years, we in the West have worried about Iran closing the Straits of Hormuz to oil tanker traffic. An abrupt closure would instantly spike oil prices well into three-digits, and immediately change the energy equation of the world. Indeed, many geostrategic scholars believe that closing the Straits of Hormuz would be tantamount to an act of war. But what if it was the US that closed the Straits of Hormuz? What would the world think if the US directly precipitated the end of ship traffic in the Straits, or at least severe restrictions on transit and passage? [...]

]]> By: aka http://whiskeyandgunpowder.com/closing-the-straits-of-hormuz-and-the-effects-on-oil-prices/comment-page-1/#comment-1594 aka Sat, 04 Apr 2009 22:27:59 +0000 http://whiskeyandgunpowder.com/?p=3928#comment-1594 Thrilling story, for sure. But I don't see that if the nuclear submarine had sunk this would have really blocked the Strait of Hormuz. This would have contaminated the water etc. but as far as I understand this wouldn't have lead to a nuclear explosion - or could it? Or did Byron mean the sinking of the submarine + the ship resulting in too little space left in the Strait for other ships to pass. Maybe these questions sound naive for those who know the area but perhaps someone can explain. Thrilling story, for sure. But I don’t see that if the nuclear submarine had sunk this would have really blocked the Strait of Hormuz. This would have contaminated the water etc. but as far as I understand this wouldn’t have lead to a nuclear explosion – or could it? Or did Byron mean the sinking of the submarine + the ship resulting in too little space left in the Strait for other ships to pass. Maybe these questions sound naive for those who know the area but perhaps someone can explain.

]]> By: Dayahka http://whiskeyandgunpowder.com/closing-the-straits-of-hormuz-and-the-effects-on-oil-prices/comment-page-1/#comment-1559 Dayahka Fri, 03 Apr 2009 04:50:07 +0000 http://whiskeyandgunpowder.com/?p=3928#comment-1559 Very interesting article. I guess the mainstream press is as usual asleep at the wheel. Anyway, I was wondering if there might be another option--de-commissioning the sub and taking it apart. Is this possible? It would certainly avoid the transit problem. Very interesting article. I guess the mainstream press is as usual asleep at the wheel. Anyway, I was wondering if there might be another option–de-commissioning the sub and taking it apart. Is this possible? It would certainly avoid the transit problem.

]]> By: Gary Gibson http://whiskeyandgunpowder.com/closing-the-straits-of-hormuz-and-the-effects-on-oil-prices/comment-page-1/#comment-1555 Gary Gibson Thu, 02 Apr 2009 21:56:14 +0000 http://whiskeyandgunpowder.com/?p=3928#comment-1555 Well, that was frightening. So many things could have gone wrong. Makes you realize just how precarious our energy supply situation really is. Actually, we here at Agora Financial realized that a while ago which is why Byron launched Energy and Scarcity Investor. A Shooter comments on our last missive from the inimitable James Howard Kunstler: Dear Gary, I feel you guys are spot on. Images from the movies “Water World” and “Mad Max” spring to mind. Startling and frightening, yet the paradigm of population growth to increase consumer demand within the financing and banking mechanisms you point out to us so often, continues. Well it does not take a major brain to work out that increased demand on rapidly reducing resource supply equals a very bad ending indeed. I even think eventually cannibalism from starvation such as seen in Somalia etc. could become wide spread throughout the world as people become desperate. And those that may have the ability to sustain themselves from the land, will simply have the fruits of their labour plundered by the desperate. I enjoy your articles thoroughly. When will the powers that be start to really wake up? Scary stuff, but not out of the realm of possibility. Remember the Whiskey credo: The world goes to hell…regularly. Here at home this particular iteration of the visit to hell will look a lot like the last Great Depression, but with a lot less available food and energy. Neill Lori writes, “After Weimar came fascism, police state and war. Currently this is the calm before the storm. This borrow, borrow, borrow and printing more currency will lead us down a dangerous trail.” Weimar had war debt…and France and Belgium had invaded and occupied Germany’s most productive region, the Ruhr. Today the U.S. has other costs of empire while we’ve eagerly encouraged our wealth production to flee to the east. Rhymes but doesn’t repeat, eh? Quantitatively ease… Throw in a charismatic leader to whom the children sing. Add in a dollop of energy scarcity. What do you get? Interesting times, Shooters. Stay tuned… Regards, Gary Gibson Managing Editor, Whiskey & Gunpowder Well, that was frightening. So many things could have gone wrong. Makes you realize just how precarious our energy supply situation really is.

Actually, we here at Agora Financial realized that a while ago which is why Byron launched Energy and Scarcity Investor.

A Shooter comments on our last missive from the inimitable James Howard Kunstler:

Dear Gary,

I feel you guys are spot on. Images from the movies “Water World” and “Mad Max” spring to mind.

Startling and frightening, yet the paradigm of population growth to increase consumer demand within the financing and banking mechanisms you point out to us so often, continues. Well it does not take a major brain to work out that increased demand on rapidly reducing resource supply equals a very bad ending indeed. I even think eventually cannibalism from starvation such as seen in Somalia etc. could become wide spread throughout the world as people become desperate. And those that may have the ability to sustain themselves from the land, will simply have the fruits of their labour plundered by the desperate.

I enjoy your articles thoroughly. When will the powers that be start to really wake up?

Scary stuff, but not out of the realm of possibility. Remember the Whiskey credo: The world goes to hell…regularly.

Here at home this particular iteration of the visit to hell will look a lot like the last Great Depression, but with a lot less available food and energy.

Neill Lori writes, “After Weimar came fascism, police state and war. Currently this is the calm before the storm. This borrow, borrow, borrow and printing more currency will lead us down a dangerous trail.”

Weimar had war debt…and France and Belgium had invaded and occupied Germany’s most productive region, the Ruhr. Today the U.S. has other costs of empire while we’ve eagerly encouraged our wealth production to flee to the east.

Rhymes but doesn’t repeat, eh?

Quantitatively ease… Throw in a charismatic leader to whom the children sing. Add in a dollop of energy scarcity. What do you get?

Interesting times, Shooters. Stay tuned…

Regards,
Gary Gibson
Managing Editor, Whiskey & Gunpowder

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