The first large-scale offshore wind farm in the United States is now operational, located 14 miles off the coast of Martha’s Vineyard, Massachusetts. Dubbed Vineyard Wind 1, the project has five out of its planned 62 turbines currently generating energy — enough to power approximately 30,000 homes. Once all the turbines come online, it is projected to provide electricity for around 400,000 homes.
“After many decades of advocacy, research, policymaking and finally construction, America’s offshore wind industry has gone from a dream to reality,” said Massachusetts Gov. Maura Healey, D. “This will make the air we breathe safer and healthier, save customers money and bring us one step closer to achieving net-zero emissions.”
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Healey lauded this development as a “turning point in the clean energy transition.” However, momentum has slowed for several other offshore wind projects along the East Coast. Multiple initiatives faced delays or cancellations in 2023, which in total accounted for more than a fifth of the power the Biden administration had been hoping to produce from offshore wind farms by 2030.
“The U.S. offshore wind market felt its growing pains over the past quarter, taking two steps forward and two steps back,” said Liz Burdock, the founder and chief executive officer of the Business Network for Offshore Wind. “We celebrated our first two utility-scale projects on the verge of delivering power to the grid — a monumental milestone a decade in the making — but simultaneously suffer project delays and continued supply chain challenges.”
Ørsted, a Danish energy company, abandoned two planned offshore wind farms in southern New Jersey, opting to incur a potential $300 million penalty rather than proceeding with construction. Similar situations unfolded in Massachusetts and Connecticut, where developers collectively paid out $124 million to terminate their contracts to build offshore wind farms.
“We’re probably a little bit too ambitious,” said David Hardy, the group executive vice president and CEO Americas at Ørsted. “We came in hot, we came in fast, we thought we could build projects that were inexpensive, large projects right out of the gate. And it turns out that we probably still need to go through the same learning curve that Europe did, with higher prices in the beginning and a little slower pace.”
New York witnessed its own challenges as energy companies struggled to honor initial wind farm leases. Wind farm developers lobbied the state to make its consumers take on as much as a 65% increase on their electricity bills to make these projects profitable.
Consequently, energy giants like Equinor, BP and Ørsted collectively faced a $5 billion value reduction over their U.S. offshore wind developments. Despite these setbacks, industry stakeholders remain optimistic about the future.
“State procurements and policies will continue to drive demand for offshore wind energy and federal support will enable more job creation, supply chain investment and domestic energy production,” said Ryan Ferguson, a spokesman for Ørsted.
Developers are exploring avenues to revive stalled projects, banking on more flexible contract terms and state incentives. New York has implemented measures allowing energy companies to cancel unfeasible contracts at no cost, provided they participate in subsequent offshore lease auctions. Connecticut is offering bidders the option to increase projected energy prices by up to 15% to accommodate economic fluctuations.
Some states have also introduced expedited solicitations to bolster offshore wind goals, streamlining approval processes and reducing bid fees on potential project sites. These initiatives are in addition to federal tax breaks for offshore wind under the Biden administration’s Inflation Reduction Act.
“While macroeconomic headwinds are creating challenges for some projects, momentum remains on the side of an expanding U.S. offshore wind industry — creating good-paying union jobs in manufacturing, shipbuilding and construction,″ said the White House in a statement.
However, the success of these measures hinges on the industry’s ability to navigate economic uncertainties and overcome logistical hurdles. For the federal government to see its goal of powering 10 million homes with offshore wind energy by 2030 realized, this year will have to mark a turnaround for the industry.
[JACK AYLMER]
IT’S THE FIRST LARGE SCALE OFFSHORE WIND FARM IN THE UNITED STATES.
LOCATED 14 MILES OFF THE COAST OF MARTHA’S VINEYARD, MASSACHUSETTS, THE PROJECT IS NOW OFFICIALLY UP AND RUNNING.
DUBBED VINEYARD WIND ONE, JUST A FRACTION OF ITS PLANNED 62 TURBINES ARE CURRENTLY OPERATIONAL.
JUST 5 TURBINES ARE ENOUGH TO GENERATE A CONSIDERABLE AMOUNT OF ENERGY, WITH THE ABILITY TO POWER ABOUT 30,000 HOMES.
ONCE ALL THE TURBINES ARE ONLINE, THE WIND FARM IS EXPECTED TO PRODUCE ELECTRICITY FOR AROUND 400,000 HOMES.
STATE OFFICIALS HAVE PRAISED THIS DEVELOPMENT AS A TURNING POINT IN THE CLEAN ENERGY TRANSITION.
BUT, ELSEWHERE, MOMENTUM HAS SLOWED ON A NUMBER OF OFFSHORE WIND PROJECTS.
2023 SAW SEVERAL ALONG THE EAST COAST FACE DELAYS OR CANCELLATIONS.
ORSTED SCRAPPED A PAIR OF PLANNED OFFSHORE WIND FARMS IN SOUTHERN NEW JERSEY.
THE DANISH ENERGY COMPANY CHOSE TO INCUR A POTENTIAL $300 MILLION PENALTY FOR BACKING OUT RATHER THAN BUILD THE PROJECT.
A SIMILAR THING HAPPENED IN BOTH MASSACHUSETTS AND CONNECTICUT.
OFFSHORE WIND DEVELOPERS OF THREE PLANNED PROJECTS IN THOSE STATES DECIDED TO PAY OUT A TOTAL OF $124 MILLION TO GET OUT OF THEIR CONTRACTS.
NEW YORK ALSO HAD TROUBLE GETTING ENERGY COMPANIES TO STICK TO THEIR ORIGINAL WIND FARM LEASES.
FACED WITH MOUNTING COSTS, DEVELOPERS LOBBIED THE STATE TO MAKE ITS CONSUMERS TAKE ON AS MUCH AS A 65% INCREASE ON THEIR ELECTRICITY BILLS TO MAKE THE PROJECT WORK.
IN TOTAL, THESE CANCELED INITIATIVES ACCOUNTED FOR MORE THAN A FIFTH OF THE POWER THAT THE BIDEN ADMINISTRATION HAD BEEN HOPING TO PRODUCE FROM OFFSHORE WIND FARMS BY 2030.
GLOBAL INFLATION PRESSURE HAS BEEN A BIG FACTOR, CAUSING DEVELOPERS TO REALIZE THEIR PROJECTS ARE NO LONGER PROFITABLE AS A RESULT OF RISING MATERIAL COSTS.
THE AVERAGE PRICE OF THE SEVEN MOST SIGNIFICANT CRITICAL MINERALS FOR THE WIND INDUSTRY HAS INCREASED BY 93% SINCE JANUARY 2020.
OVERALL, THE COST OF BUILDING A TURBINE HAS JUMPED NEARLY 40% OVER THE LAST TWO YEARS.
THIS FORCED ENERGY COMPANIES LIKE EQUINOR, BP AND ORSTED TO TAKE A COMBINED $5 BILLION IN VALUE REDUCTION IN 2023 ON U.S. OFFSHORE WIND DEVELOPMENTS.
DESPITE THE STALLED PROGRESS AND INCREASED COSTS LAST YEAR, THE INDUSTRY IS STILL OPTIMISTIC THE WINDS WILL SHIFT IN 2024.
DEVELOPERS HOPE THAT MORE FORGIVING CONTRACT TERMS WILL HELP REVIVE SOME OF THOSE PREVIOUSLY CANCELED PROJECTS.
NEW YORK HAS ALLOWED ENERGY COMPANIES TO CANCEL CONTRACTS THAT HAVE BECOME NO LONGER FINANCIALLY VIABLE AT NO COST –
PROVIDED THEY PARTICIPATED IN A SUBSEQUENT AUCTION FOR MORE OFFSHORE WIND LEASES.
CONNECTICUT IS ALLOWING OFFSHORE LEASE BIDDERS THE OPTION TO INCREASE ITS PROJECTED ENERGY PRICES BY AS MUCH AS 15% SHOULD ECONOMIC CHANGES MAKE IT NECESSARY.
SOME STATES ARE ALSO OFFERING REDUCED BID FEES ON POSSIBLE PROJECT SITES.
THESE INCENTIVES ARE ALL ON TOP OF THE FEDERAL GOVERNMENT’S EXISTING TAX BREAKS FOR OFFSHORE WIND, PART OF PRESIDENT BIDEN’S PUSH FOR INCREASED RENEWABLE ENERGY PRODUCTION.
IF THE WHITE HOUSE HOPES TO SEE IT’S GOAL OF 10 MILLION HOMES POWERED BY THIS TECHNOLOGY IN 2030 REALIZED, THEY’LL NEED THIS YEAR TO MARK A TURNAROUND FOR THE INDUSTRY.
VINEYARD WIND 1 IS A POSITIVE STEP TOWARDS THIS, BUT MORE WILL NEED TO FOLLOW.
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In the pursuit of climate goals, transitioning from gas-powered automobiles to electric vehicles (EVs) has emerged as a key strategy. But a closer examination reveals complexities surrounding the environmental benefits and feasibility of mass EV adoption.
“Even if millions of people buy battery-electric vehicles, automakers could still fall short of hitting goals set under the Paris Agreement on climate change,” said Vijay Subramanian, director of global CO2 compliance, cost and powertrain forecasting at S&P Global Mobility. “As the journey progresses toward achieving the ambitious objectives of the Paris Agreement, it becomes evident that relying solely on electrification likely will be insufficient due to the intricate challenges involved.”
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The process of manufacturing EVs initially contributes significantly more emissions compared to traditional gas-powered cars. Studies indicate that up to 80% more emissions are generated during the production of an EV. It’s only after an EV has been driven approximately 15,000 miles that its carbon footprint begins to align with that of a conventional vehicle. That distance is equivalent to driving across the U.S. on Interstate 80 five times.
The decommissioning of EVs also poses environmental challenges, with the combined carbon outputs of manufacturing and deconstruction comparable to about 40% of the average American’s annual greenhouse gas emissions.
“A lot of people think that a large-scale shift to EVs will mostly solve our climate problems in the passenger vehicle sector,” Alexandre Milovanoff, a sustainable development expert and policy analyst for the Canadian government, said. “I think a better way to look at it is this: EVs are necessary, but on their own, they are not sufficient.”
One of the primary contributors to EVs’ environmental footprint lies in the extraction and processing of raw materials, a process that generates up to 85% of the total greenhouse gases that these vehicles create.
China, controlling 90% of the electric vehicle supply chain, plays a central role here. Beijing’s relatively lax environmental standards have facilitated its dominance in the EV industry, making this supply chain the most environmentally harmful aspect of EV production.
While EVs eventually offset their initial emissions over the course of their operational lifespan, concerns persist regarding the scale of adoption required to make a substantial impact on climate goals. Researchers at the University of Toronto suggest that for the U.S. to achieve its 2050 climate targets, 90% of the nation’s vehicle fleet must be electric.
“Climate change mitigation strategies are often technology-oriented, and electric vehicles (EVs) are a good example of something believed to be a silver bullet,” the University of Toronto team said in its report. “Here we show that current U.S. policies are insufficient to remain within a sectoral CO2 emission budget for light-duty vehicles, consistent with preventing more than 2 °C global warming. Closing the mitigation gap solely with EVs would require more than 350 million on-road EVs (90% of the fleet), half of national electricity demand and excessive amounts of critical materials to be deployed in 2050.”
Achieving such targets would necessitate a cessation of combustion engine vehicle sales as early as 2030. Projections from analysts at IHS Markit forecast that by 2050, only 60% of new U.S. vehicle sales will be EVs. That number contrasts with more conservative estimates suggesting less than a third of the American market will be EVs by that time.
The Biden administration has endorsed legislation aiming to bring nearly 100 million EVs onto U.S. roads by 2050. However, experts caution that this may fall short by more than half of what is necessary to meet climate targets. Even if the U.S. and other nations achieve their EV goals by 2050, doing so may not suffice to reach net-zero emissions objectives.
Tags: Auto industry, Climate Change, Electric Vehicle Batteries, Electric vehicles, EV charger, Joe Biden
[JACK AYLMER]
WE’VE BEEN TOLD IF THE U.S. WANTS TO HIT ITS CLIMATE GOALS, TURNING FROM GAS-POWERED AUTOS TO EVS WILL BE KEY.
SO, HOW MUCH WILL A MASS EV ADOPTION END UP BENEFITING THE PLANET? AND IS MASS ADOPTION A REALITY?
LET’S START WITH WHAT IT TAKES TO BUILD AN EV IN THE FIRST PLACE.
THE PROCESS CREATES UP TO 80% MORE EMISSIONS THAN BUILDING A GAS POWERED CAR.
IT’S ONLY AFTER AN EV HAS BEEN DRIVEN ABOUT 15,000 MILES THAT ITS CARBON FOOTPRINT BEGINS TO MATCH THAT OF A CONVENTIONAL VEHICLE.
THAT DISTANCE IS EQUIVALENT TO DRIVING ACROSS THE U.S. ON INTERSTATE 80 – FIVE DIFFERENT TIMES.
AND WHEN IT COMES TIME TO RETIRE AN EV, THAT CAN ALSO TAKE A TOLL ON THE ENVIRONMENT.
THE COMBINED CARBON OUTPUTS OF MAKING AND DECONSTRUCTING JUST ONE EV IS COMPARABLE TO ABOUT 40% OF THE AVERAGE AMERICAN’S ANNUAL GREENHOUSE GAS EMISSIONS.
THE MANUFACTURING PROCESS HAS SUCH A HEAVY FOOTPRINT BECAUSE OF THE RAW MATERIALS NEEDED TO MAKE AN EV.
UP TO 85% PERCENT OF THE TOTAL GREENHOUSE GASSES CREATED BY AN EV ARE GENERATED THROUGH ACQUIRING RESOURCES FOR THEIR ASSEMBLY.
AND MOST OF THOSE COME THROUGH CHINA, WHICH CONTROLS 90% OF THE ELECTRIC VEHICLE SUPPLY CHAIN.
BEIJING’S LAX ENVIRONMENTAL STANDARDS HELPING ITS EV INDUSTRY DOMINATE THE SECTOR.
THAT HAS MADE THIS THE MOST ENVIRONMENTALLY HARMFUL ASPECT OF THESE CARS.
AND WHILE EVS DO EVENTUALLY MAKE UP FOR THOSE EMISSIONS ONCE THEY’VE BEEN ON THE ROAD FOR AWHILE, THAT MAY NOT ULTIMATELY BE ENOUGH TO MAKE A DENT IN THE MUCH LARGER PROBLEM.
RESEARCHERS AT THE UNIVERSITY OF TORONTO FOUND IN ORDER FOR THE U.S. TO HIT ITS 20-50 CLIMATE GOALS, 90% OF THE NATIONS VEHICLE FLEET MUST BE ELECTRIC.
TO HIT THAT TARGET, EV ADVOCATES SAY SALES OF COMBUSTION ENGINE VEHICLES WILL NEED TO BE STOPPED BY AS EARLY AS 2030.
BUT IS THAT REALISTIC?
ANALYSTS WITH IHS MARKIT BELIEVE BY 2050 ONLY 60% OF U.S. VEHICLES ARE GOING TO BE EVS.
WHICH IS SIGNIFICANTLY HIGHER THAN OTHER ESTIMATES THAT SAY ONLY A THIRD OF U-S CARS WILL BE EVS BY THEN
THE BIDEN ADMINISTRATION IS BACKING LEGISLATION THAT AIMS TO BRING THE U.S. CLOSE TO 100 MILLION EVS BY 2050.
BUT THE ICF CLIMATE CENTER SAYS THAT MAY BE LESS THAN HALF OF WHAT IS NEEDED.
EVEN IF THE U.S. AND OTHER NATIONS SAW THEIR EV GOALS FULFILLED IN 2050, THAT ALONE WOULD STILL NOT BE SUFFICIENT TO HIT NET ZERO EMISSIONS TARGETS.
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Bus after bus, major cities far from the border are starting to buckle under budgetary pressures of the nation’s migrant crisis. S&P Global Ratings is monitoring the credit health of New York, Denver and Chicago as they face sheltering tens of thousands of asylum-seekers.
“The issue will destroy New York City,” Mayor Eric Adams said last year.
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New York
For the fiscal year ending June 30, 2023, New York City spent $1.5 billion in asylum-seeker costs. In the current fiscal year, which ends June 30, 2024, the city expects costs to nearly triple.
The city budgeted $4.2 billion to care for incoming migrants, most bused from the border. In fiscal year 2025, that category will increase to $4.9 billion.
To offset costs, Adams announced 5% budget cuts for every city agency, from education to public safety.
“It’s really the cities that are on the hook to cover the majority of the expenses,” said Felix Winnekens, lead analyst of public finance for S&P Global Ratings.
“New York City is in a bit of a unique situation because of its right to shelter,” Winnekens told Straight Arrow News. “So basically, anyone in the city – could be a homeless person, could be a migrant or an asylum-seeker – that needs shelter, the city has to provide shelter. That’s part of a consent decree that the city entered into back in the 1980s.”
Adams has moved to suspend aspects of right-to-shelter while the city currently houses more than 60,000 asylum-seekers.
The state, which supports Adams’ request to suspend, has had to dip into reserves to help shoulder costs, Winnekens said.
Chicago
In Illinois, a battle is brewing between governments. The state, Cook County and Chicago officials estimated it will cost $321 million to support migrant operations through the end of the year.
While the state and Cook County have pledged $250 million, Chicago Mayor Brandon Johnson has reportedly backed away from the city committing to $71 million to cover the shortfall.
“I don’t believe anyone in Chicago is questioning my commitment to this mission,” Johnson said.
According to the city, there are currently more than 12,000 migrants in Chicago shelters as of Feb. 20.
Denver
Denver is facing a $180 million gap in the city budget that must be filled to shelter existing and incoming asylum-seekers.
“Without any federal support, without any work authorization, without changes to policy, we are going to have to make changes to what we can do in terms of our city budget,” Denver Mayor Mike Johnston said earlier this month. “This is a plan for shared sacrifice.”
The Department of Motor Vehicles and Parks and Recreation are the first areas in the city to see cuts, but they won’t be the last, Johnston warned.
In 2023, the city received more migrants per capita than any other city in the nation.
A national problem without a national response
Unlike the federal government, most cities and states are required to pass balanced budgets. When migrant costs surge, money has to be cut from other services to make ends meet.
“We do not see any near-term pressure on the ratings, but I think it’ll be a continued struggle for those cities to find the right balance between cutting expenditures and making ends meet to address the increase in asylum-seeker costs,” Winnekens said.
Meanwhile, Texas Gov. Greg Abbott has vowed to continue busing migrants to these cities, saying they’ve seen only a fraction of what overwhelmed Texas border towns face daily.
While Abbott criticized the federal government’s border policies, the Democratic mayors of these affected cities also took issue with the federal response.
“We’re getting no support on this national crisis,” Adams said last year.
With Congress at a perceived impasse, Winnekens said cities could be on their own to shoulder costs at least through the election. While New York, Chicago and Denver have faced the brunt of migration after border towns, S&P is also eyeing Washington, D.C., Boston, Los Angeles and San Francisco as asylum-seekers seek out more big cities.
Tags: asylum seekers, Border, Border crossings, Brandon Johnson, Chicago, Denver, Eric Adams, Greg Abbott, Migrant buses, migrants, Mike Johnston, New York, New York City, Texas, U.S. Customs and Border Protection, U.S.-Mexico Border
Eric Adams: This issue will destroy New York City.
Simone Del Rosario: New York, Chicago, Denver…Bus after bus after bus, these cities are starting to buckle under the budgetary pressures of the nation’s migrant crisis.
Mike Johnston: Without any federal support, without any work authorization, without changes to policy, we are going to have to make changes to what we can do in terms of our city budget.
Simone Del Rosario: In Denver, that means a $180 million gap in the city budget that must be filled to shelter existing and incoming asylum seekers.
Mike Johnston: This is a plan for shared sacrifice.
Simone Del Rosario: The Department of Motor Vehicles and Parks and Rec are the first to see cuts, but certainly won’t be the last. In 2023, the midsized city received more migrants per capita than any other city in the nation.
Eric Adams: The curveball though was the migrant crisis. Curveball? That’s not even a curveball. That’s a brushback pitch that knocked us to the ground but we gotta get back up and knock it out of the park.
Simone Del Rosario: For the fiscal year ending June 30, 2023, New York City spent $1.5 billion in asylum-seeker costs. In the current fiscal year, which ends June 30th of this year, the city expects costs to nearly triple, budgeting $4.2 billion to care for incoming migrants, most bused from the border. To offset, Mayor Adams announced 5% budget cuts for every city agency, from education to public safety.
Felix Winnekens: It’s really the cities that are on the hook to cover the majority of the expenses.
Simone Del Rosario: Felix Winnekens of S&P Global is closely monitoring cities’ credit health as they face abnormal migrant pressures.
Felix Winnekens: New York City is in a bit of a unique situation because of its right to shelter. So basically, anyone in the city, could be a homeless person, could be a migrant or an asylum seeker that needs shelter, the city has to provide shelter. That’s part of a consent decree that the city entered into back in the 1980s.
Simone Del Rosario: Mayor Adams has moved to suspend right-to-shelter, while they currently house more than 60,000 asylum seekers in the city. The state, which supports Adams’ request to suspend, has had to dip into reserves to help shoulder costs.
Meanwhile in Illinois, a battle is brewing between governments. While the state and Cook County have pledged $250 million to support migrant operations, it’s $71 million shy of what is reportedly needed to keep migrant programs running through the year.
Brandon Johnson: I don’t believe anyone in Chicago is questioning my commitment to this mission.
Reporter: Well they are because you didn’t put in the $70 million that you promised you would give them at that meeting and then walked away from it.
Brandon Johnson: Were you at that meeting?
Simone Del Rosario: Unlike the federal government, most cities and states are required to pass balanced budgets. So when migrant costs surge, money has to be cut from other services. Winnekens said there’s no near-term pressure on cities’ ratings so long as those cuts are made.
Felix Winnekens: But I think it’ll be a continued struggle for those cities to find the right balance between sort of cutting expenditures, making ends meet to address the increase in asylum seeker costs.
Simone Del Rosario: Meanwhile, Texas Governor Greg Abbott has vowed to continue busing migrants to these cities, saying they’ve seen only a fraction of what overwhelmed Texas border towns face daily. While he criticizes the federal government’s border policies, these Democratic mayors also have federal beef.
Eric Adams: We’re getting no support on this national crisis.
Simone Del Rosario: And with Congress at a perceived impasse, Winnekens says cities could be on their own to shoulder costs at least through the election. While New York, Chicago and Denver have faced the brunt of migration after border towns, S&P is also eyeing D.C., Boston, LA and San Francisco as asylum seekers seek out more big cities.
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[RYAN ROBERTSON]
HELLO AND WELCOME TO WEAPONS AND WARFARE. FOR STRAIGHT ARROW NEWS I’M RYAN ROBERTSON AND THIS WEEK WE ARE COMING TO YOU FROM THE 2024 AIR AND SPACE FORCES AIR WARFARE SYMPOSIUM IN AURORA, COLORADO.
THIS IS WHERE LEADERSHIP FROM THE AIR AND SPACE FORCES GATHER TO SHARE IDEAS AND OUTLINE THEIR PLANS FOR THE FUTURE OF THEIR RESPECTIVE BRANCHES. IT’S ALSO WHERE SCORES OF CIVILIAN COMPANIES COME TO DISPLAY THEIR LATEST INNOVATIONS AND DEVELOP PARTNERSHIPS WITH POTENTIAL BUYERS.
JUST AHEAD IN OUR DEBRIEF A LOOK AT HOW CONGRESSES’ CONTINUING RESOLUTION IS SLOWING PLANS FOR CHANGES MILITARY LEADERS SAY ARE NEEDED FOR THEIR FORCES TO BE READY FOR EVER-CHANGING THREATS FROM AMERICA’S ADVERSARIES.
AND WE VISIT WITH THE PEOPLE AT SHIELD AI FOR OUR WEAPON OF THE WEEK. FROM AI ASSISTED ARTIFICIAL PILOTS TO THE V-BAT DRONE, THEY’RE BREAKING NEW GROUND WITH A UAV THAT COULD BE A GAME-CHANGER.
PLUS A CORRECTION FROM ME IN OUR COMMS CHECK, AND MY THOUGHTS ON…. IN RYAN’S WRAP. BUT FIRST, LET’S GET TO THIS WEEK’S HEADLINES.
A MECHANICAL FAILURE IS LIKELY THE CAUSE OF A DEADLY CRASH THAT CLAIMED THE LIVES OF EIGHT AIR FORCE SPECIAL OPERATIONS TROOPS ON NOVEMBER 29th LAST YEAR. THAT WORD COMING FROM THE PENTAGON AS THE INVESTIGATION INTO THE CRASH OF THE CV-22 OSPREY, OFF THE SOUTHERN COAST OF JAPAN, CONTINUES. IN EARLY DECEMBER THE AIR FORCE GROUNDED ITS FLEET OF OSPREY AIRCRAFT. THE COMMANDER OF AIR FORCE SPECIAL OPERATIONS, LIEUTENANT TONY BAUERNFEIND, TOLD REPORTERS AT THE WARFARE SYMPOSIUM HE WON’T SEND AIRMEN BACK UP IN THE V-22 UNTIL HE’S SURE EVERY QUESTION HAS BEEN ANSWERED.
Lt Gen Tony Bauernfeind, Commander
“Nothing is more important to me than the safety of our air commandos. And when the time is right, when they make that decision, a return to fly will be with me having the full confidence not only in our training but our crews as well as the platform and any mitigation measures that we have in place to ensure that we can react appropriately if another situation arises.”
[RYAN ROBERTSON]
THE NOVEMBER CRASH IS THE FOURTH FOR THE OSPREY PROGRAM SINCE MARCH OF 2022.
WHEN IT COMES TO RUSSIA AND IT’S ABILITY TO CONDUCT WAR, IT’S WORSE THAN WE THOUGHT. THAT, ACCORDING TO A REPORT FROM BLOOMBERG, IS THE SENTIMENT AMONG NATO LEADERSHIP. BE IT ARTILLERY SHELLS OR SOLDIERS ON THE GROUND, RUSSIA IS REPLENISHISING THEIR WAR EFFORTS AT A RATE MANY IN NATO DIDN’T THINK WAS POSSIBLE. JUST LAST MONTH NATO SECRETARY-GENERAL JENS STOLTENBERG SAID THE WAR IN UKRAINE IS NOW A “BATTLE FOR AMMUNITION”. PRESIDENT BIDEN AND THE SENATE RECENTLY PUSHED FORWARD A $95 BILLION AID PACKAGE, THE BULK OF WHICH WOULD HAVE GONE TO HELPING UKRAINE REPLENISH THEIR AMMO SUPPLIES. SPEAKER OF THE HOUSE, MIKE JOHNSON, SAID HE WON’T BRING THE BILL UP FOR A VOTE THOUGH…NOT UNTIL CONGRESS PASSES LAWS TO SECURE THE SOUTHERN BORDER.
AND AS THE HOUTHI MISSILE ATTACKS ON SHIPS IN THE RED SEA CONTINUE, SO DO AMERICA’S EFFORTS TO MITIGATE THOSE ATTACKS. ONE STANDOUT OF NOTE COMES FROM THE U.S. MARINE CORPS. FIRST REPORTED BY ‘ALERT 5’ CAPTAIN EARL EHRHART THE FIFTH COULD BE AMERICA’S FIRST FIGHTER ACE SINCE THE VIETNAM WAR. CAPTAIN EHRHART IS CREDITED WITH SHOOTING DOWN AT LEAST SEVEN HOUTI MISSILES. THE HARRIER PILOT IS FLYING OFF THE AMPHIBIOUS ASSAULT SHIP BATAAN…HE SAYS WHEN HOUTHIS STARTED LAUNCHING THEIR DRONES, THE MARINES ON THE BATAAN RECONFIGURED THE HARRIERS FOR AIR DEFENSE. CAPTAIN EHRHART TOLD THE BBC THAT MEANT LOADING UP HIS JET UP WITH AS MANY MISSILES AS IT COULD HOLD. GOOD HUNTING, CAPTAIN.
–
IF THIS YEAR’S GATHERING IN COLORADO HAD A ONE-WORD DESCRIPTION IT WOULD BE CHANGE. IF IT WERE THREE WORDS IT WOULD BE CHANGE ON HOLD. IN THE SYMPOSIUM’S OPENING EVENT LEADERS FROM THE AIR AND SPACE FORCES LAID OUT THEIR PLANS FOR PREPARING THEIR TROOPS FOR CONSTANTLY EVOLVING THREATS FROM SEVERAL CORNERS OF THE WORLD. UNFORTUNATELY, IN THEIR VIEW, THERE’S ONE MAJOR OBSTACLE IN GETTING THAT WORK STARTED IN FULL. CONGRESS.
[Air Force Secretary Frank Kendall]
Ladies and gentlemen, we are out of time. We are out of time. We are out of time because for at least two decades, china has been building a military that is designed, purpose, built to deter and defeat the United States if we intervene in the Western Pacific.
[Ryan Robertson]FROM THE VERY START OF THIS YEAR’S AFA WARFARE SYMPOSIUM, AIR FORCE SECRETARY FRANK KENDALL MADE IT CLEAR THE U.S. CAN’T AFFORD TO PUT OFF MILITARY MODERNIZATION ANY LONGER.
[Air Force Secretary Frank Kendall]The United States does not seek a conflict. We have every hope that one can be avoided. We are however involved in a competition, an enduring competition, that could turn into a conflict at any time. We can no longer regard conflict as a distant possibility, or a future problem that we might have to confront. The risk of conflict is here now, and that risk will increase with time.
[Ryan Robertson]WHEN SECRETARY KENDALL CAME INTO OFFICE IN 2021… HE HIT THE GROUND RUNNING. OUTLINING WHAT HE CALLS OPERATIONAL IMPERATIVES. FACTORS THAT WOULD SHAPE HOW THE AIR AND SPACE FORCES WOULD INVEST THE MONEY FROM CONGRESS TO MAKE SURE BOTH BRANCHES ARE READY FOR A GREAT POWER COMPETITION WITH CHINA
[Air Force Secretary Frank Kendall]that work had a major impact on the FOI 24 budget that was submitted a year ago. We’re still, by the way, waiting for the Congress to appropriate the FY24 funds that we need now to modernize the air and space forces and to defend the nation. Congress, if you’re listening, an FY24 appropriation would be very welcome, and once again, please do not subject us to a disastrous yearlong CR and sequestration.
[Ryan Robertson]KENDALL SAYS FOR THE ENTIRE TIME HE’S BEEN THE SECRETARY OF THE AIR FORCE…CONGRESS HASN’T GIVEN THE AIR OR SPACE FORCES THE RESOURCES AND FUNDING NEEDED TO BE COMPETITIVE.
UNDER A CONTINUING RESOLUTION… SERVICE BRANCHES ARE FORCED TO OPERATE AT THE SAME SPENDING LEVELS AS THE PREVIOUS FISCAL YEAR. IT ALSO MEANS VIRTUALLY NO NEW SPENDING. SO NO NEW PROJECTS CAN START. NO NEW TRAINING CAN BEGIN…. NO MUCH-NEEDED MODERNIZATION EFFORTS.
[Air Force Special Operations Command Commander Lt. General Tony Bauernfeind]
With any sort of continuing resolution is that uncertainty of funding as it goes forward. In some cases with new starts, we fundamentally can’t even start the work we need to do. And so without that monetary aspect in place, we’re sitting on our hands and we’re not moving forward. Even with continuing resolution, the second aspect of it is are we going to overspend what we expect to get. So people tend to become more conservative, thereby pulling their punches a little bit in the execution of those resources. And both of those get solved with Congress’s guidance in the form of a budget.
–
Ryan Robertson: This week we are talking about the Kratos fighter jet, which is flown by Shield AI’s Hivemind autopilot. I’m going to bring in Shield AI’s President CEO, Brandon Tseng, to talk about this. Brandon, thank you for joining us.
Brandon Tseng: Hey, thanks for having me.
Ryan Robertson: So you were telling me this is for targeting and red flag. What is that?
Brandon Tseng: Yeah, so our partnership with Kratos is really about productizing and bringing to market AI pilots. So, Shield AI, we are building the world’s best AI pilot to retake the skies. What is an AI pilot? Essentially it is self-driving technology for aviation. And why is that important? It enables aircraft operate without GPS, without communications, without a remote pilot, it enables the concept of swarming or teaming. And then — just like self driving cars can learn to drive different missions, park, do on ramp to off ramp, do freeway driving suburban driving — you can train aircraft to do different missions as well.
We trained quad copters to clear buildings. We trained an F-16 to dogfight. We are working on suppression of enemy air defense missions, maritime domain awareness missions. And so really you can train these aircraft to learn and operate just any mission that you can define that any human pilot flies today.
Ryan Robertson: So what you’re saying is Hivemind is not limited to one type of craft, you can teach it to fly any craft?
Brandon Tseng: Yes, you can teach it to fly any craft. So, the MQM 178 Firejet — and Kratos has been a terrific partner with us — it actually represents the sixth class of aircraft that we have flown. So Hivemind has flown three quad copters, its flown our VBAT, its flown the F-16 and the MQM 718 is the sixth aircraft. And later this year, when we fly the Valkyrie, that will be the seventh aircraft.
So Shield AI, essentially what we’re doing is taking an AI pilot and integrating it on lots and lots of different aircraft. So you can imagine a world where there are hundreds of thousands of aircraft, up to a million aircraft flying. We don’t have enough pilots — what’s flying those? AI pilots. Hivemind will be flying those.
Ryan Robertson: How did you come up with the name Hivemind?
Brandon Tseng: Yeah, great question. Actually, it’s a science fiction reference a lot of people don’t know. I used to play Starcraft when I was a kid, and Hive Mind is one of the characters in the game of Starcraft, which is a real time, science fiction-type strategy game. So I got the inspiration there.
Ryan Robertson: Brandon, that was great. Thank you so much for joining us today. Folks, you’re definitely gonna want to keep an eye on a Hivemind, because where this thing is going, I mean, sky’s the limit? Space is the limit? What do you think?
Brandon Tseng: I’ll just say it’s going everywhere. When I started the company in 2015, I asked myself, what’s the military look like in 2035? Decided AI and autonomy should be commanding, maneuvering, piloting all of our different assets. And so we think about Hivemind being that key enabler for the U.S. military, and to enable the concept of intelligent affordable mass.
–
All right, folks, it’s time for comms check this week. I don’t have my fancy touchscreen behind me, but that’s okay. We’re gonna get through this. It’s going to be a quick one. So we had done a story about the silver lining to some of the Houthi Red Sea attacks, essentially that U.S. and UK navy personnel were getting a chance to defend the ships and get some real world experience. Beardy, McBeard Face said it was a great piece, tthanked us for finally having some facts and nothing else in the story. So you’re welcome Beardy McBeard face.
But Paul Woods said the Navy doesn’t have any F-15 carrier squadrons, because in the story, I said that the Eisenhower was launching F-30 fives and F-15. So you know what, Paul? You’re right. The Navy doesn’t have any F-15 fighter squadrons. That was my mistake. What they did launch was F-35 and F-18 Super Hornets. So Paul, thank you for correcting my mistake. And for everyone else out there, this is proof that when we make a mistake on Weapons and Warfare, we own up to it. That’s how you can trust us. But in the meantime, that’s comms check.
–
All opinions expressed in this segment are solely the opinions of the contributors.
–
Well, everyone we are just about done with this week’s episode of Weapons of Warfare. But before we go, I want to wrap up the show talking about something that we mentioned in the debrief Congress’s continuing resolution to fund the government. Now, like we said before, under a CR, unless a special exception is made, every service branch is forced to operate at a level on par with the previous fiscal year’s budget, which doesn’t take into account things like inflation, or the rising cost of material goods or any other factor, which may make things cost more than what a CR would fund.
We told you what this means for programs or weapons systems. But operating without an approved congressional budget also hurts the Department of Defense’s most valuable resource. Its people. I spoke with an Air Force officer here at the symposium who told me when the DoD doesn’t have a budget and doesn’t know when the next will be approved, everything tightens up, and decisions no officer wants to make are made. Sometimes that means fewer training missions. Sometimes that means less career development. But sometimes that means people lose their jobs, and not necessarily in the military, but in the private sector to under a CR since no new programs can start. Some contracts go unfulfilled, which means there’s no money to pay the workers who are supposed to be doing the work.
And of course, there’s a psychological toll as well. Put yourself in the shoes of a service member. You volunteer, you sign up, you’re told you’ll play an integral role in defending the nation and preserving freedom. But when it comes time to cut the checks, instead of giving their best like they ask of you, Congress tells you to put a cap on it. Yes, your mission is important and may literally mean the difference between life and death, but we don’t feel like doing the work to get you what you need. So make do with what you got.
The country may be divided and Congress may be broken, but funding our national defense and our troops should not be a divisive issue, whether it be from near peer adversaries or militant extremists. Providing protection is not cheap. And as we’ve all heard, freedom isn’t free.
Part of the problem in my estimation is the lack of military experience on Capitol Hill right now. After World War 2, 85% of Congress had military experience. Today, that number is closer to just 15%. And while I appreciate the separation between Congress and our military, I have to imagine if more members of Congress reported to office with military service on their resume than giving the best that we have to offer what they need to stay in the fight. wouldn’t be such a fight. But that’s my thoughts.
What are yours? Let us know by commenting on our social media feeds or sending us an email to Weapons and Warfare at san.com. For senior producer Brett Baker, for video editor Brian Spencer and for graphic designer Dakota Piteo, I’m Ryan Robertson with Straight Arrow News, signing off
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For two years now, Ukraine has battled for its sovereignty. Russia’s invasion is reducing cities to rubble and thousands of civilians have died in the conflict. A new report said Russia can sustain its assault for another two to three years, maybe even longer. Did diamonds purchased in the U.S. help pay for this war?
Point phone camera here
Russia produces about a third of the world’s diamonds. Those diamonds bring in an estimated $4 billion per year. While President Joe Biden did sanction imports of Russian diamonds in March 2022, the order carried little consequence.
“The first thing they did, which is typical of government, is they fudged it,” said Martin Rapaport, founder and chairman of the Rapaport Group, a primary source of global diamond prices.
“You got to take an understanding of what’s going on here,” he said. “India is buying almost all of those Russian diamonds and cutting them in India. So when the president used the phrase, Russian origin, it was a whitewashing exercise because all the diamonds are cut anyways in India, and once they’re cut in India, they’re no longer Russian origin. Now they’re Indian origin.”
Roughly 90% of the world’s rough diamonds are cut and polished in India. India is a strategic partner of the U.S., which makes any action on diamonds politically challenging.
In 2024, the U.S. is ready to close the loophole. The Treasury Department announced changes to these diamond sanctions to include those that are “mined, extracted, produced or manufactured wholly or in part in the Russian Federation.” In other words, diamonds with any history in Russia fall under the rule.
On March 1, the ban goes into effect for non-industrial diamonds 1 carat or greater. By September, it includes diamonds weighing half a carat. The latest sanctions are not just from the U.S. but done together with G7 nations. G7 nations are giving themselves until September to announce a system to trace the gems’ origins.
“Now we have all these self-interested foreign parties who are literally pigging out on the idea that they can control the diamond markets,” Rapaport said.
Belgium wants all diamonds to be certified through Antwerp, known as the diamond capital of the world. It’s a proposal the diamond industry is pushing hard against. De Beers CEO Al Cook warned Bloomberg about potential unintended consequences.
“We certainly believe that we should avoid a single node, a single place of certification, and instead we should allow African countries that have produced ethical diamonds for decades to have the freedom to export those diamonds where they want in the world,” Cook said.
Anything else, Cook warned, could make ethical diamonds far more expensive.
“We all want to be in a situation where we can have sanctions that are effective and efficient,” Rapaport said.
Rapaport has proposed the U.S. use existing blockchain technology, like Tracr, which tracks diamonds from mine to market. A diamond may change hands a dozen times or more in this journey.
“So United States Customs can sit back and say, ‘Oh, you’re importing diamonds, give me the number, give me the Tracr number for this diamond,’ and they can see the entire supply chain,” he explained. “So even if it came from a legitimate mine but it was handled or traded somewhere by a sanctioned entity, bingo, the United States says these diamonds cannot come into the United States.”
Rapaport’s proposed U.S. Diamond Protocol would put the onus on the government to clear diamond imports, not jewelers. It’s a proposal he’s also shared with G7 countries.
If achieving effective sanctions on Russian diamonds were easy, it likely would not have taken two years of war to get to this point. But now G7 is months away from requiring a process with real prongs.
Tags: belgium, Diamond, G7, India, Joe Biden, Narendra Modi, Russia, Sanctions, U.S. Treasury Department, Ukraine, War
Simone Del Rosario: For two years, Ukraine has battled for its sovereignty. Russia’s invasion is reducing cities to rubble. Thousands of civilians have died in the conflict. And a new report says Russia can sustain its assault for another two to three years, maybe even longer. Did your diamond help pay for this war?
Russia produces about a third of the world’s diamonds. Those diamonds bring in an estimated $4 billion per year. President Biden did sanction imports of Russian diamonds in March 2022.
Martin Rapaport: The first thing they did, which is typical of government, is they fudged it.
Simone Del Rosario: Martin Rapaport founded the Rapaport Group, the world’s primary source of diamond prices.
Martin Rapaport: You got to take an understanding of what’s going on here. The India is buying almost all of those Russian diamonds and cutting them in India. So when he used the phrase, the president used the phrase, Russian origin, it was a white washing exercise because all the diamonds are cut anyways in India, and once they’re cut in India, they’re no longer Russian origin. Now they’re Indian origin.
Simone Del Rosario: Roughly 90% of the world’s rough diamonds are cut and polished in India. India is a strategic partner of the US. Which makes any action on diamonds politically challenging. In 2024, the US is ready to close the loophole.
The Treasury Department announced changes to these diamond sanctions to include those that are mined, extracted, produced or manufactured wholly or in part with the Russian Federation. Meaning diamonds with any history in Russia fall under the rule.
On March 1, the ban goes into effect for non-industrial diamonds 1 carat or greater. By September, it includes diamonds weighing half a carat. The latest sanctions are not just from the U-S, but done together with G7 nations. G7 is giving themselves until September to announce a system to trace the gems’ origins.
Martin Rapaport: Now we have all these self-interested foreign parties who are literally pigging out on the idea that they can control the diamond markets.
Simone Del Rosario: Belgium wants all diamonds to be certified through Antwerp, known as the diamond capital of the world.
Martin Rapaport: It’s absurd. It’s ridiculous.
Simone Del Rosario: It’s a proposal the diamond industry is pushing hard against. De Beers CEO Al Cook warned Bloomberg about potential unintended consequences.
Al Cook: We certainly believe that we should avoid a single node a single place of certification and instead we should allow African countries that have produced ethical diamonds for decades to have the freedom to export those diamonds where they want in the world.
Simone Del Rosario: Anything else, he warned, could make ethical diamonds far more expensive.
Martin Rapaport: We all want to be in a situation where we can have sanctions that are effective and efficient.
Simone Del Rosario: Rapaport has proposed the U-S use existing blockchain technology like Tracr, which tracks diamonds from mine to market. A diamond may change hands a dozen times or more in this journey.
Martin Rapaport: So United States Customs can sit back and say, ‘Oh, you’re importing diamonds, give me the number, give me the Tracr number for this diamond,’ and they can see the entire supply chain. So even if it came from a legitimate mine, but it was handled or traded somewhere by a sanctioned entity, bingo, the United States says these diamonds cannot come into the United States.
Simone Del Rosario: Rapaport’s proposed U.S. Diamond Protocol would put the onus on the government to clear diamond imports, not jewelers. It’s a proposal he’s also shared with G7 countries.
If achieving effective sanctions on Russian diamonds were easy, it likely would not have taken two years of war to get to this point. But now G7 is months away from requiring a process with real prongs.
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For decades, diamonds have been the symbol of lasting love. But the industry is in for a generational reckoning as young people decide whether to buy natural diamonds, lab-grown diamonds or forgo the tradition altogether.
In 1954, scientists with General Electric created a machine that squeezed carbon under 1.5 million pounds of pressure per square inch at 5,000 degrees Fahrenheit. The result was the hardest substance on Earth, diamonds.
Point phone camera here
Initially, these diamonds were used as tools to cut metal and glass. But as experts refined the process, the product eventually reached the clarity of diamonds used by jewelers.
Are lab-grown diamonds the real deal?
Lab-grown diamonds have all of the same chemical and physical properties as their natural counterparts, according to the Gemological Institute of America. In 2018, the Federal Trade Commission ruled lab-grown diamonds are considered diamonds.
“It’s not really that different than growing a plant in your yard or growing a hydroponic plant,” Aja Raden, a jewelry expert and author of “Stoned: Jewelry, Obsession, and How Desire Shapes the World,” told Straight Arrow News. “It was grown on purpose under controlled conditions but the final product is the same.”
Sixty-three percent of independent jewelers have started selling lab-grown diamonds, according to a survey from In Store. But not everyone in the industry believes this is good for business.
“This product is being produced by the Chinese, among others, in unlimited quantities. So it’s not like a real diamond,” said Martin Rapaport, founder and chairman of the Rapaport Group. “Oh, here’s a Van Gogh I have in my museum. I can give you a lithograph. It’s the exact same ink, the same brushstrokes done by the computer.”
Lab-grown diamonds are a bargain, priced between 80-95% less than mined diamonds. But price isn’t the only reason some people are opting to buy lab-grown diamonds. Ethical conflicts marred the mining industry for years. In the 1990s, the diamond trade was at the center of African civil wars.
Today, the situation is far less volatile. However, human rights activists still warn that some in the diamond mining industry are not maintaining international labor standards. The diamond industry maintains the trade provides economic advantages and infrastructure to mining communities.
How marketing made diamond sentiment sparkle
Diamonds weren’t always the token of love. Much of that reputation is traced back to the iconic 1947 De Beers advertising campaign, “A Diamond is Forever.”
“When World War II was over, all of the money in the Western world had been reshuffled,” Raden said. “There was this new thing that had never existed before in the world called the middle class. And what the middle class meant was, you weren’t a peasant, you had extra money, you could buy a washing machine, you could buy a car, you could go on vacation. But you didn’t have a lot of money. You couldn’t buy a castle, you couldn’t buy a tiara.
“So they had to figure out how to sell diamonds, not to a small number of obscenely wealthy people, but to an enormous number of comfortable people,” she said. “And what they did was they came up with the diamond engagement ring.”
But Rapaport believes there is more to the sentiment behind diamond jewelry than an advertising campaign.
“De Beers, what they did was, they were able to attach the diamond to that fundamental need to give gifts,” he said. “It’s not just the woman who’s receiving the gift. The woman is very happy when she receives the diamond. But it’s not only because she got a diamond, she got a man.
“She got someone that says, ‘I’m going to love you, I’m going to take care of you, I’m going to be with you your whole life.’ That transcends, just, ‘Here’s a gift,'” he said.
Raden said the campaign created by N.W. Ayer & Son did more than sell diamonds, it revolutionized advertising.
“They invented everything we associate with advertising, from consumer research to product placement, on celebrities, on movie stars, on red carpets,” she said. “When a princess gets engaged, she gets a diamond ring. They made sure diamonds were everywhere you would see them and want them. And it worked so well.”
But nearly 80 years after the campaign kicked off, the tradition is losing its sparkle with younger generations. The average diamond engagement ring now costs more than $5,500. The majority of unmarried millennials and Gen Zers aren’t worried about keeping up with what some call an “outdated tradition,” according to a survey by the Thriving Center of Psychology.
Lab-grown diamonds go mainstream
For years, big names in the diamond industry refused to validate lab-grown diamonds.
“DeBeers insisted forever, for years, they would never have anything to do with these filthy scuzzy fake diamonds,” Raden said.
But in 2018, the company had a change of heart, launching its Lightbox brand of lab-grown diamonds, with a 1-carat stone going for $800.
“They didn’t just switch horses and go, ‘Well I guess now we sell lab-grown diamonds, the future is here, taste the rainbow,'” Raden said. “Instead, they’re making the worst jewelry they can possibly make out of these exquisite lab-grown diamonds. And they’re marketing it as badly as they can figure out how to market it. They’re making sure it seeps into your consciousness, just like it did with diamonds.
“The message they want you to have is lab-grown diamonds are not real. They’re charming. You should definitely buy some, but they’re cheap and they’re fake. And it’s working,” she said.
In 2023. the natural diamond market brought in $71 billion while lab-grown diamond sales hit roughly $16 billion, according to estimates from industry analyst Paul Zimnisky.
Meanwhile, prices for wholesale polished diamonds fell 20% last year. But Rapaport said there’s more to the price shift than an increase in lab-grown sales, which grew 38% from 2021 to 2022.
“COVID came in and really shook everybody up,” he told SAN. “Remember, there was no vacation really taking place at that time, no travel, people were stuck at home. And so diamond purchases and jewelry purchases were very big winners when you had those government funds coming through. But then it stopped. The party was over.”
Despite market trends, he still thinks there is a lasting market for luxury jewelry.
“Diamonds are forever, little old ladies are not,” he said, laughing. “So you’re gonna get to a situation here where there’s going to be huge wealth moving from these baby boomers to these worthy or unworthy millennials. Diamonds aren’t for everybody. Diamonds are for people that have money. Forgive me, I like to sell diamonds to rich people.”
Raden, a jewelry designer herself, believes lab-grown diamonds have a huge upside when it comes to what will be possible in the future.
“You can do things with lab grown diamonds you can’t do with natural diamonds,” she said. “We’re just on the precipice of it, but you can make much more interesting colors than exist in nature. You can give them different properties. You can grow them so big that I could have a bangle made out of one diamond. There is interesting art to be made if you embrace that this is just a slightly different medium.”
Marilyn Monroe:
“Diamonds are a girl’s best friend.”
Simone Del Rosario:
We’ve heard this for years, but the diamond industry is facing a generational reckoning.
Do young people still value natural diamonds pulled from the ground or do they prefer a bargain with lab-grown diamonds?
jacquiefenton:
“Lab-grown diamonds don’t count. They’re cheap. Get a real diamond.”
gabriellerozmarniewicz:
“What types of people I legitimately think are so weird. People that are like, I will only accept a natural diamond engagement ring.”
“Really really big scam going on right now online. It’s the word lab-grown.”
Simone Del Rosario:
Lab-grown diamonds have the same chemical and physical properties as their natural counterpart.
In fact, the Federal Trade Commission ruled a diamond is a diamond, whether it’s man made or mined.
Martin Rapaport:
“These guys go, ‘They’re exactly the same.’ You’re not allowed to call them real diamonds, according to the FTC, but they still call them real diamonds.”
Simone Del Rosario:
Martin Rapaport is a huge name in the diamond industry.
Martin Rapaport:
“We are today the primary source of diamond price and market information for the diamond industry.”
“We’re also running the largest diamond trading network in the world with listings of about $9 billion of diamonds offered for sale every day.”
Matthew McConaughey:
“Guys, did you know that diamonds are about as common as taxis on 5th avenue? The value is entirely sentimental. Maintained by supply, demand, and advertising.”
Simone Del Rosario:
It wasn’t until De Beers launched its now classic slogan in 1947 that diamonds grew to be a worldwide symbol of engagement.
Advertisement:
“How else could two months’ salary last forever? A diamond is forever. De Beers.”
Aja Raden:
It just seeped into the popular consciousness in a way that didn’t seem deliberate, but was.
Simone Del Rosario:
Aja Raden is a jewelry expert and author of the New York Times bestseller, “Stoned: Jewelry, Obsession and how desire shapes the world.”
Aja Raden:
When World War Two was over, all of the money in the western world had been reshuffled
There was this new thing that had never existed before in the world called the middle class.
So they had to figure out how to sell diamonds, not to a small number of obscenely wealthy people, but to an enormous number of comfortable people. And what they did was they came up with the diamond engagement ring.
Simone Del Rosario:
The campaign, which conti nued for decades, showed movie stars dripping in diamonds. And it quickly paid off. Within three years, diamond sales jumped by 50 percent.
Martin Rapaport:
“De beers, what they did was, they were able to attach the diamond to that fundamental need and to give gifts. It’s not just the woman who’s receiving the gift, you know, the woman is very happy when she receives the diamond. But it’s not only because she got a diamond, she got a man.”
Simone Del Rosario:
Nearly 80 years later, the luster is wearing off with younger generations. The average cost of a natural diamond engagement ring is more than $5,000. And the majority of unmarried millennials and Gen Zers aren’t worried about keeping up with what some call outdated traditions.
Money is a big reason many are bucking marriage – for now. For those who do see themselves tying the knot someday, lab-grown diamonds might catch their eye, costing between 80 to 95 percent less than natural stones.
In 1954, General Electric scientists created a machine that squeezed carbon under 1.5 million pounds of pressure per square inch at 5000 degrees Fahrenheit. The machine made the hardest substance on earth, diamonds.
They weren’t looking to sparkle, they were looking to slice. The synthetic diamonds became tools for cutting metal and glass.
But as the diamond-pressing process refined, the product eventually reached the clarity of natural diamonds used by jewelers.
Martin Rapaport:
Guy walks into a store,he says, I gotta buy a nice diamond for my wife. How much do you want to spend? The jeweler slyly asks, and they’ll say, oh, I can spend $5,000. He says, okay, he shows him a diamond,it costs $20,000. And then he says but you know what? I can give you a four carat diamond for that price. Same thing. Same exact shiny, shiny. Oh, You want to buy a two carat VS2 diamond? Why should you spend $20,000, I can give you something for $10,000. But it only cost him $2,000. Maybe $4,000. So the margin, the profit margin blows your brain. It’s unbelievable.
Simone Del Rosario:
Sixty three percent of independent jewelers have gotten in on the lab-grown action. Then big names like De Beers entered the race.
Aja Raden:
If you can’t beat them, join them. But still try to beat them while you’re joining them.
Simone Del Rosario:
In 2018 De Beers launched its lightbox brand of synthetic diamonds, with one carat stones retailing for $800.
Aja Raden:
So DeBeers insisted forever. For years, they would never they would never have anything to do with these filthy scuzzy fake diamonds.
They didn’t just switch horses and go, well I guess now we sell lab grown diamonds. The future is here. Taste the rainbow. Instead,
they’re making the worst jewelry they can possibly make out of these frankly, exquisite lab grown diamonds. And they’re marketing it as badly as they can figure out how to market it. They’re making sure it seeps into your consciousness just like it did with diamonds. The message they want you to have is lab-grown diamonds are not real. They’re charming. You should definitely buy some, but they’re cheap and they’re fake. And it’s working.
Simone Del Rosario:
The natural diamond market was estimated at $71 billion last year, while lab-grown diamond sales are around $16 billion, industry analyst Paul Ziminisky told SAN.
Prices for wholesale polished diamonds plunged 20 percent last year. But there’s more to the market drop than this synthetic substitute.
Martin Rapaport:
“COVID came in and really shook everybody up.”
“Remember, there was no vacation really taking place at that time, no travel, people were stuck at home. And so diamond purchases and jewelry purchases were very big winners, when you had those government funds coming through. But then it stopped. The party was over.”
Simone Del Rosario:
And as the music stopped, synthetics surged. Sales of lab-grown diamonds jumped 38 percent from 2021 to 2022.
Beyond the bargain price, sustainability is pushing some people toward lab-grown gems. Ethical conflicts have marred the diamond mining industry; in the 1990s the diamond trade was at the center of African civil wars.
While the situation is far less volatile today, human rights activists still warn that some in the diamond industry are not maintaining international labor standards. Meanwhile the diamond industry touts economic advantages and infrastructure brought to mining communities.
lo_wens:
“Which would you go with, the lab-grown or the natural diamond?”
Simone Del Rosario:
A big debate in social media jewelry circles is about the resale value of lab-grown diamonds.
{SOCIAL MEDIA – No Resale}
detroitdiamondgirl:
“No to lab-grown diamonds, just no. They’re a bad investment, horrible resale.”
elissarcouture:
“You have a lab-grown diamond, you try to sell that. It’s basically worth nothing.”
Simone Del Rosario:
When you can reproduce it with a machine, how much value does it hold?
But those in favor of saving a few bucks have questions of their own.
lina.hara:
“Who do you foresee yourself selling your engagement ring to?”
Simone Del Rosario:
And for that matter, will natural diamonds hold their value?
Aja Raden:
We all believe diamonds are the most valuable gemstones in the world and the rarest and the most special, but the truth is, they are the least rare and the least special, most of them.
Simone Del Rosario:
No matter the changing generational trends, Rapaport believes there will always be a market for luxury.
Martin Rapaport:
“Diamonds are forever, little old ladies are not. So you’re gonna get to a situation here, where there’s going to be huge wealth moving for these baby boomers to these worthy or unworthy millennials.”
“Diamonds aren’t for everybody. Diamonds are for people that have money, forgive me, I like to sell diamonds to rich people.
Marilyn Monroe:
“Diamonds (diamonds) are a girl’s best…best friend.”
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[RYAN ROBERTSON]
THE LATE DAVID HACKWORTH, ONCE SAID “IF YOU FIND YOURSELF IN A FAIR FIGHT, YOU DIDN’T PLAN YOUR MISSION PROPERLY.” WITH THAT IN MIND, THE RETIRED ARMY OFFICER AND JOURNALIST WOULD PROBABLY HAVE LIKED OUR WEAPON OF THE WEEK. THAT’S BECAUSE IN THE HANDS OF THE RIGHT PERSON, THE TELEDYNE HISS-HD LONG-RANGE COOLED SNIPER SIGHT IS ALL ABOUT GIVING THE USER AN UNFAIR ADVANTAGE.
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BUILT BY FLIR, THE SAME PEOPLE THAT DEVELOPED THERMAL IMAGING GEAR THAT ALLOWS FIREFIGHTERS TO FIND HOT SPOTS WHEN TRYING TO PUT OUT FIRES, OR HELICOPTER CREWS TO FIND PEOPLE ON THE GROUND, THIS NEW SIGHT OFFERS LONG-RANGE OPTICS AND AN H-D DISPLAY WITH DETAILED IMAGERY FOR SNIPERS AND MACHINE GUN CREWS.
HOW DETAILED? USERS CAN EXPECT HIGH-RESOLUTION VIEWS AT MORE THAN 7,000 FEET, OR A MILE AND A THIRD. THEY’RE ALSO ABLE TO WATCH FIRED ROUNDS IN FLIGHT EVEN WITHOUT TRACERS. THAT ALLOWS SHOOTERS TO ADJUST TARGETING ON THE FLY. SOMETHING THEY’RE ABLE TO DO IN BROAD DAYLIGHT, AS WELL AS NIGHT.
OF THEIR NEWEST PRODUCT TELEDYNE’S VICE PRESIDENT OF SURVEILLANCE STRATEGY AND DEVELOPMENT SAYS,
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With HISS-HD, we’ve leveraged our world-class thermal imaging technology to provide marksmen with a superior tool to identify and engage targets anywhere, in any environment.”
WEIGHING LESS THAN FIVE POUNDS WITH BATTERIES AND MEASURING A LITTLE MORE THAN TEN AND A HALF INCHES LONG, FLIR SAYS THE SIGHT WILL TRIPLE THE PERFORMANCE OF MACHINE GUN SIGHTS AND DOUBLES IT WHEN COMPARED TO EXISTING THERMAL SIGHTS DESIGNED FOR SNIPER RIFLES.
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After a Delaware judge struck down Elon Musk’s $56 billion Tesla compensation package, Musk put the state in his crosshairs with a series of posts encouraging companies to flee America’s corporate kingdom, as he hopes to do with Tesla. Given Musk’s influence, are his actions a real threat to Delaware?
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Around 2 million companies are incorporated in Delaware, including 68% of Fortune 500 companies. Incorporated businesses outnumber people in Delaware by a ratio of 2-to-1.
“The business of this state is corporate regulation; a good chunk of our tax revenue comes from that. It’s in the state’s interest to get the answer right,” said Charles Elson, a leading authority on corporate governance and founding director of the Weinberg Center for Corporate Governance at the University of Delaware.
The big reason so many companies choose to incorporate in Delaware is the Court of Chancery, Musk’s latest target.
Striking down Musk’s record-breaking compensation
Elson said Chancellor Kathaleen McCormick’s decision to void Musk’s CEO pay package is unusual and surprising but not unfounded.
“The judge’s concern was that the disclosure to the shareholders about this package was inadequate, that there are serious flaws she felt in the process, the independence of the directors, how the thing came together,” Elson said. “And she felt that had disclosure been more accurate, the shareholders may not have approved it.”
In 2018, 73% of shareholders approved the CEO’s pay package, excluding votes by Musk and his family. After hitting set targets in the coming years, the deal’s value hit around $56 billion, which McCormick called “an unfathomable sum.” That’s roughly the market cap of all of Tesla back when shareholders first approved the compensation plan. Tesla’s market cap is now more than 10 times that.
“Is it really, quote-unquote, a transfer of funds for services rendered? Or is it more of a gift?” Elson said. “The larger the amount becomes, the more questionable the compensation for services rendered becomes.”
Musk’s relations to Tesla directors questioned
McCormick cited Musk’s extensive ties to members of Tesla’s board of directors in her decision, questioning the board’s independence. Then, the Wall Street Journal published an exposé on the money and drugs that tie Musk to some directors.
Musk hit back at the newspaper, calling them liars and trash not fit to line a birdcage. He noted that he has passed every random drug test in the past three years as part of an agreement between NASA and SpaceX.
Musk and X army v. the state of Delaware
Since his court defeat, Musk has not only vowed to incorporate Tesla in Texas with shareholder approval but has strongly encouraged other companies to leave Delaware as well.
With 172 million followers on his platform X, it is realistic to question whether his influence will impact Delaware’s status as the country’s corporate paradise.
“I think whether you win or lose in Delaware, you do get a fair shake,” Elson said. “[Musk] didn’t seem too upset with Delaware when he won the Solar City case a few years ago.”
Why Delaware is the chosen state of incorporation
“The fundamental advantage is this judicial system and this body of very well-developed corporate law,” Elson said.
The Delaware Court of Chancery dates back to 1792 but didn’t hit its corporate stride until more than a century later. In 1899, Delaware copied favorable business laws from New Jersey, which at the time was the country’s de facto corporate home.
In 1913, future President Woodrow Wilson, then New Jersey’s governor, passed a series of laws perceived to be anti-business. In response, corporations fled across the river to Delaware, where they remain today.
“North Dakota has a corporate statute that some say is more shareholder-friendly than Delaware; Nevada has a corporate statute that some say is a little more managerial-friendly than Delaware,” Elson explained. “But you still haven’t seen a flocking of companies to those jurisdictions because a statute can’t lay out every rule and regulation for corporate conduct. It has to really be interpreted by judges through a common law process.”
In Delaware and its dedicated business court system lies a large body of precedent developed over many years, Elson said.
“There are not that many situations here that haven’t come up before,” he added.
But now Delaware is coming up against a CEO who happens to be one of the richest people in the world (Musk dropped to No. 2 on Forbes’ Billionaires List after his compensation package was voided). Now, Musk is looking to Texas for a fresh start.
“I think it would be rather insulting to Texas judges to suggest that they would have done something differently had they found the same facts. You can’t go forum shopping, if you will, for a friendly judge, or if you do, it’s not the right thing to do,” Elson said.
Musk eyeing Texas comes at an interesting time. Last year, Texas Gov. Greg Abbott signed a law to create specialty business courts to rival Delaware. But those courts won’t be in session until September 2024 at the earliest.
News clip: Some breaking news into us tonight, a Delaware judge voiding the Tesla CEO’s $56 billion dollar pay package.
News clip: Elon Musk is saying that he’ll be moving Tesla’s incorporation to Texas after holding a poll on X.
Simone Del Rosario: America’s richest CEO versus America’s corporate kingdom. Is Elon Musk a threat to Delaware?
Charles Elson: He didn’t seem too upset with Delaware when he won the Solar City case a few years ago.
Simone Del Rosario: Charles Elson is a leading authority on corporate governance, a lawyer and retired professor from University of Delaware. Elson said the recent decision by a Delaware judge to strike down Musk’s larger-than-life compensation package –
Charles Elson: It’s more than the GNP of some countries.
Simone Del Rosario: – is unusual but not unfounded.
Charles Elson: The judge’s concern was that the disclosure to the shareholders about this package was inadequate, that there are serious flaws she felt in the process, the independence of the directors, how the thing came together. And she felt that obviously, had disclosure been more accurate, that the shareholders may not have approved it.
Simone Del Rosario: In 2018, 73% of shareholders approved the CEO’s pay package, excluding votes by Musk and his family. After hitting set targets in the coming years, the deal’s value hit around $56 billion, which Delaware judge Kathaleen McCormick called “an unfathomable sum.” That’s roughly the market cap of all of Tesla back when shareholders first approved the compensation plan. Tesla’s market cap is now more than 10 times that.
Charles Elson: Is it really, quote unquote, a transfer of funds for services rendered? Or is it more of a gift? And, you know, the larger the amount becomes, the more questionable the compensation for services rendered becomes.
Simone Del Rosario: Musk’s relationship with the board is also in question. Not only did the judge find it to be a little too cozy, the Wall Street Journal then published an exposé on the money and drugs that tie Musk to some Tesla directors. Musk hit back at the newspaper, calling them liars, trash, not fit to line a birdcage. Noting he’s passed every random drug test the past three years.
But this is Elon Musk. He runs multiple companies and he can manage multiple fights at the same time. And his fight with the state of Delaware is what we’ll focus on today, and whether the advice he’s giving and taking from his 171 million X followers will make an impact on the business of Delaware.
Charles Elson: The business of this state is corporate regulation, a good chunk of our tax revenue comes from that. And the state, it’s in the state’s interest to get the answer right. I think whether you win or lose in Delaware, you do get a fair shake.
Simone Del Rosario: Around 2 million businesses are incorporated in Delaware, including 68% of Fortune 500 companies. Yes, Delaware, where companies literally outnumber people 2-1.
Wayne’s World clip: Hi, I’m in Delaware.
Simone Del Rosario: And the big reason so many companies choose to incorporate in Delaware is the Court of Chancery, Musk’s latest target.
Charles Elson: The fundamental advantage is really this judicial system, and this body of very well developed corporate law.
Simone Del Rosario: The Delaware Court of Chancery dates back to 1792 but didn’t hit its corporate stride until more than a century later. In 1899, Delaware copied favorable business laws from New Jersey, which at the time was the country’s corporate paradise. In 1913, future President Woodrow Wilson, then New Jersey’s governor, passed a series of laws perceived to be anti-business. And corporations fled across the river to Delaware, where they remain today.
Charles Elson: North Dakota has a corporate statute that some say is more shareholder friendly than Delaware, Nevada has a corporate statute that some say is a little more managerial friendly than Delaware. But you still haven’t seen a flocking of companies to those jurisdictions because a statute can’t lay out every rule and regulation for corporate conduct, it has to really be interpreted by judges through a common law process.
Simone Del Rosario: Delaware , he says, has the expertise and the experience.
Charles Elson: You have a large body of precedent that was developed over many years there not that many situations here that haven’t come up before.
Simone Del Rosario: But now Delaware is coming up against a brash CEO who happens to be one of the richest people in the world. The ruling against Musk inspired the CEO’s desire to pull up stakes and incorporate in Texas, where Tesla is headquartered. The move requires a shareholder vote. And he’s also inspired his followers to follow suit, or at least say they will.
Charles Elson: I think it would be rather insulting to Texas judges to suggest that they would have done something differently had they found the same facts. You can’t go forum shopping, if you will, for a friendly judge, or if you do, it’s not the right thing to do.
Simone Del Rosario: Musk eyeing Texas comes at an interesting time. Last year, Texas Governor Greg Abbott signed a law to create specialty business courts to rival Delaware. But those courts won’t be in session until September 2024, at the earliest.
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Researchers at the University of Colorado Denver have embarked on a study to investigate the viability of bidirectional electric vehicle (EV) charging, also known as two-way charging. The solution could provide energy to the grid when it is needed most and save consumers money.
“This concept is very similar to Airbnb. If you have a space that you actually don’t use, why don’t you just rent it out and generate money out of it,” said Moatassem Abdallah, an associate professor at CU Denver’s civil engineering department. “So it’s the same concept with electric vehicles, if you have your vehicle just sitting and doing nothing.”
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The research aims to explore a set up where bidirectional charging would give EV owners the ability to sell electricity back into the power grid. When electricity demand is at its highest, the grid can pull power from these vehicles, providing a monetary kickback to individuals in the process.
“When peak pricing happens, where surge pricing happens in the energy market, you could leverage your private battery to get a subsidy essentially, on your own consumption,” said Manish Shirgaokar, an associate professor at CU Denver’s College of Architecture and Planning.
“You can actually sell the energy that you have in your electric vehicle for certain hours of the day and then recharge it again, when there’s lower energy demand,” Abdallah said. “So, it’s going to be just generating…additional income from…a stationary asset that you have.”
Additionally, bidirectional charging could serve as a useful backup resource during outages or severe weather situations, offering a backup power source when needed most. Recent winter storms, wildfires and hurricanes have underscored the vulnerability of current power grids, highlighting situations where two-way charging could have provided valuable support.
“With the integration of electric vehicles to the grid, this can solve situations where we have…power outages. So in this case, you can actually use your vehicle as a backup,” Abdallah said.
“The energy grid goes down, it’s cold or there’s a wildfire or something else that’s happened,” Shirgaokar said. “You have your own car that can power up your house for a couple of days.”
The implementation of bidirectional charging poses challenges, including socio-economic barriers associated with owning an EV in the first place. While lower-income communities would benefit most from the potential electric bill savings this technology could bring, many in these areas do not have the means to purchase the vehicle needed to access these benefits.
“I’m a university professor, my spouse works, we could, in theory, get a bidirectional charger for our garage, but are we willing to spend $7,000 to do that? $12,000 to do that? The answer is no,” Shirgaokar said. “But, communities in need often can leverage these services through subsidies that exist at the local and state government. So I’m hopeful.”
There are also concerns from utility companies regarding how two-way charging might impact their bottom line. Though researchers at CU Denver have said providers are engaging with them on the development of this technology, the possibility of its wider-spread adoption down the road could come at the expense of energy company profits.
“Utility companies are observing this very carefully,” Shirgaokar said. “They know that there is a risk to their power. I think they are playing along at this stage, which is wonderful, because we need them at the table as the key stakeholder. If enough players are in, in a smaller community, we’re able to micro grid, then you could actually make a dent in in the monopolies that utility companies are evolving towards.”
Bidirectional charging still has a long way to go before hitting the mainstream market. Though it has yet to become a standard feature in EVs, and the CU Denver study is only in the first of its three years of research time, experts are hopeful about the future of this technology.
“I think this could really change the narrative going forward on energy, and on how consumers think of energy pricing, what bills they get at the end of every month,” Shirgaokar said. “I think that there is great potential for this.”
[JACK AYLMER]
THE ENERGY NEEDED TO FULLY CHARGE AN E-V BATTERY – PULLS ABOUT THE SAME AMOUNT OF POWER THAT’S REQUIRED TO POWER AN ENTIRE HOME DURING PEAK DEMAND.
THAT CONCENTRATED DRAIN OVER AN EXTENDED PERIOD CAN SERIOUSLY STRESS ELECTRICAL GRIDS – AND STRAIN UTILITY PROVIDERS.
NOT IDEAL.
BUT WHAT IF THERE WAS A WAY TO PUT ENERGY BACK INTO THE GRID – AT TIMES WHEN IT’S NEEDED THE MOST.
AND WHAT IF THOSE WHO CHIPPED IN – EARNED MONEY IN THE PROCESS…SORT OF LIKE LOANING OUT ENERGY.
Moatassem Abdallah
“This concept is like very similar to Airbnb, like if you have like a space that you actually don’t use, so why don’t you just like rent it out and generate like money out of it. So it’s the same concept like with electric vehicles, so if you have your vehicle just sitting like and doing nothing.”
[JACK AYLMER]
THAT’S MOATASSEM ABDALLAH. HE’S AN ASSOCIATE PROFESSOR AT CU-DENVER’S CIVIL ENGINEERING DEPARTMENT AND ONE OF THE MINDS BEHIND A NEW STUDY AIMING TO EXPLORE THE POTENTIAL BENEFITS OF ‘BI-DIRECTIONAL CHARGING’ OR ‘TWO-WAY CHARGING’.
HERE’S HOW IT WORKS FROM ANOTHER CONTRIBUTOR OF THE STUDY:
Manish Shirgaokar
“When peak pricing happens, where surge pricing happens in the energy market, you could leverage your private battery to to get a subsidy essentially, on your own consumption.”
[JACK AYLMER]
LET’S BREAK THAT DOWN.
BASICALLY
AN EV OWNER WITH A COMPATIBLE VEHICLE WOULD HAVE THE OPTION TO SELL ELECTRICITY BACK TO THE GRID –
Moatassem Abdallah
“You can actually sell like the energy that you have in your electric vehicle for certain hours of the day and then recharge it again, when there’s like lower energy demand in the day. So like it’s it’s going to be just generating like, additional income from just like a stationary asset that you have.”
[JACK AYLMER]
IT’S NOT JUST ADDED POCKET CHANGE –
TWO-WAY CHARGING CAN ALSO BE BENEFICIAL DURING OUTAGES OR SEVERE WEATHER SITUATIONS.
ACROSS THE US, WE’VE BEEN SEEING MORE OUTAGES. AND EXPERTS AT
THE INTERNATIONAL ENERGY AGENCY WARN CURRENT INFRASTRUCTURE IS TOO WEAK TO KEEP UP WITH THE CURRENT TRANSITION AWAY FROM FOSSIL FUELS.
RECENT WINTER STORMS, THE WILDFIRES IN MAUI, AND HURRICANE IDALIA ALL LED TO POWER GRID MALFUNCTIONS AND EXPOSED VULNERABILITIES.
ALL SITUATIONS WHERE TWO-WAY CHARGING COULD HAVE HELPED.
Moatassem Abdallah
“The integration of electric vehicles to the grid, this can solve like situations where we have like power outages. So in this case, you can actually use your vehicle as a backup.”
The energy grid goes down, it’s cold or there’s a wildfire or something else that’s happened. You have your own car that can power up your house for a couple of days.
[JACK AYLMER]
IT’S A CREATIVE SOLUTION, BUT ALSO AN EXPENSIVE ONE. RESEARCHERS SAY THEY’RE WORKING ON THAT.
[Shirgaokar]
“Think of a low income, affordable housing community six apartments … What if we had an EV battery on wheels that were shared within the six apartments that then be an affordable model?”
[Shirgaokar]
“I’m a university professor, my spouse works, we could, in theory, get a bidirectional charger for our garage. But are we willing to spend $7,000 To do that, but $12,000 To do that? … The answer is no … but communities in need, often can leverage these services through subsidies that exist at the local and state government. So I’m hopeful.”
[JACK AYLMER]
THERE ARE CONCERNS TWO-WAY CHARGING ISN’T GOING TO RESONATE WITH UTILITY PROVIDERS.
[Shirgaokar]
Utility companies aren’t going to be happy, as you can tell, because the model that fermata and others are proposing is that when peak pricing happens, where surge pricing happens in the energy market, you could leverage your private battery to to get a subsidy essentially, on your own consumption.
[JACK AYLMER]
WHILE IT COULD HELP IN AN EMERGENCY – ROLLING OUT THIS TECHNOLOGY COULD END UP COSTING ENERGY COMPANIES A LOT OF MONEY.
[Shirgaokar]
“Utility companies are observing this very carefully. They know that there is a risk to their power. And they I think they are playing along at this stage, which is wonderful, because we need them at the table as the key stakeholder … if enough players in, in, in a smaller community, we’re able to micro grid, then you could actually make a dent in in the monopolies that utility companies are evolving towards.”
[JACK AYLMER]
TWO WAY CHARGING HASN’T REACHED THE MAINSTREAM MARKET, AND THE CU DENVER STUDY IS STILL IN ITS EARLY STAGES.
HOWEVER, EXPERTS BELIEVE THAT ONE DAY, IT COULD BECOME A GAME CHANGER
[Shirgaokar]
“I think this could really change the narrative going forward on energy, and of how consumers think of energy pricing, what bills they get to the end of any month.”
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While it’s not true in every instance, the crisis in the Red Sea does have a familiar pattern. The Houthis shoot missiles at an array of potential targets. The Americans respond by shooting down those missiles with their missiles. Then both sides tell the media what they just did. Rinse and repeat. But the longer this continues, the eventual impact on American consumers continues to grow.
Only a small part of America’s trade flows through the Suez Canal, but the cumulative effect of tankers changing routes to safely deliver their shipments of liquid natural gas and liquefied petroleum gas could hit Americans in the wallet.
“So, we’re seeing it move in a different way than normally,” said Sal Mercogliano, an associate professor of history at Campbell University.
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Mercogliano used to be a merchant mariner and has an extensive background in shipping.
Mercogliano said because oil tankers are “moving differently,” there are inevitable impacts to the supply chain.
“Because it’s taking longer, 3,500 extra miles, which is anywhere from seven to 14 days. And it’s putting ships on routes that they normally don’t do,” he said.
In addition to teaching history at Campbell, Mercogliano is also a YouTuber.
Starting in 2011, his channel What’s Going on with Shipping? has informed viewers about the shipping industry. Over the past several months his focus, like the world’s, has been turned to the Red Sea.
“We’re definitely seeing a wider range of attacks. It’s not just in the southern Red Sea anymore,” Mercogliano said. “It’s in the Bab al-Mandab, that very southern strait. Seeing it in the Gulf of Aden. Seeing it out in the Arabian Sea, and we’re seeing it more out into the Indian Ocean with some attacks off motherships in and around that region. So, definitely an expansion in the attacks we’re seeing.”
For those that haven’t been paying close attention, this might seem like a repeat of the Somali piracy heydays of the late 2000s. According to Mercogliano, it’s not.
“I can say right now, piracy is not even a blip on the radar. Most ships, this is not what they’re worried about,” Mercogliano said. “The Red Sea and the Houthis are the issue right now. Because the attacks, there have been three [pirate] attacks so far? In terms of thousands of ships sailing through the area? That’s small.”
Of course, the biggest question on most people’s minds, what’s it going to take to put an end to the Houthi missile attacks?
Unfortunately, Mercogliano said there’s not a whole lot of leverage the U.S. can apply against the Houthis “because it’s ideological.”
“The one group you can apply pressure to is Iran,” he said. “But it’s very hard to apply pressure against Iran, because what they see is: one of their client states is interdicting a key choke point. They already interdict the Strait of Hormuz when they want to. Now they can do the Bab al-Mandab. So, it is extremely difficult to see a prospect where this ends anytime soon without a resolution up in Israel.”
While an end to the crisis may not be in-sight, those helping defend against the Houthi attacks are about to get an assist in the effort with the European Union announcing it will be sending a naval mission to the area within the next three weeks.
[RYAN ROBERTSON]
WHILE IT’S NOT TRUE IN EVERY INSTANCE, THE CRISIS IN THE RED SEA DOES HAVE A FAMILIAR PATTERN. THE HOUTHIS SHOOT MISSILES AT AN ARRAY OF POTENTIAL TARGETS, THE AMERICANS RESPOND BY SHOOTING DOWN THOSE MISSILES WITH THEIR MISSILES. THEN BOTH SIDES TELL THE MEDIA WHAT THEY JUST DID. RINSE AND REPEAT. BUT THE LONGER THIS CONTINUES, THE EVENTUAL IMPACT ON AMERICAN CONSUMERS CONTINUES TO GROW.
WHILE ONLY A SMALL PART OF AMERICA’S TRADE FLOWS THROUGH THE SUEZ CANAL, IT’S THE CUMULATIVE EFFECT OF HAVING TANKERS CHANGE ROUTES TO SAFELY DELIVER THEIR SHIPMENTS OF LIQUID NATURAL GAS AND LIQUEFIED PETROLEUM GAS THAT COULD HIT AMERICANS IN THE WALLET..
[Sal Mercogliano]
“So we’re seeing it move in a different way than normally. That is having an impact on the supply chain, because it’s taking longer, 3,500 extra miles, which is anywhere from seven to 14 days. And it’s putting ships on routes that they normally don’t do.”
[RYAN ROBERTSON]
SAL MERCOGLIANO IS AN ASSOCIATE PROFESSOR OF HISTORY AT CAMPBELL UNIVERSITY WITH AN EXTENSIVE BACKGROUND IN SHIPPING. HE’S ALSO A YOUTUBER. STARTING IN 2011, HIS CHANNEL ‘WHAT’S GOING ON WITH SHIPPING?’ HAS INFORMED VIEWERS ABOUT THE SHIPPING INDUSTRY. OVER THE PAST SEVERAL MONTHS HIS FOCUS, LIKE THE WORLD’S, HAS BEEN TURNED TO THE RED SEA,
[Sal Mercogliano]
“We’re definitely seeing a wider range of attacks. It’s not just in the southern Red Sea anymore. It’s in the Bab al-Mandab, that very southern strait. Seeing it in the Gulf of Aden, seeing it out in the Arabian Sea, and we’re seeing it more out into the Indian Ocean with some attacks off motherships in and around that region. So, definitely an expansion in the attacks we’re seeing.”
[RYAN ROBERTSON]
FOR THOSE THAT HAVEN’T BEEN PAYING CLOSE ATTENTION, THIS MIGHT SEEM LIKE A REPEAT OF THE SOMALI PIRACY HEYDAYS OF THE LATE 2000s.
[Sal Mercogliano]
“I can say right now, piracy right now is not even a blip on the radar. Most ships, this is not what they’re worried about. The Red Sea and the Houthis are the issue right now. Because the attacks, there have been three [pirate] attacks so far? In terms of 1000s of ships sailing through the area?”
[RYAN ROBERTSON]
OF COURSE, THE BIGGEST QUESTION ON MOST PEOPLE’S MINDS, WHAT’S IT GOING TO TAKE TO PUT AN END TO THESE MISSILE ATTACKS.
[Sal Mercogliano]
“There’s very little leverage against the Houthis you can apply, because it’s ideological. The one group you can apply pressure to is Iran. But it’s very hard to apply pressure against Iran, because what they see is one of their client states is interdicting a key choke point. They already interdict the Straits of Hormuz when they want to. Now they can do the Bab al-Mandab. So, it is extremely difficult to see a prospect where this ends anytime soon without a resolution up in Israel.”
[RYAN ROBERTSON]
WHILE AN END TO THE CRISIS MAY NOT BE IN-SIGHT, THOSE HELPING DEFEND AGAINST THE HOUTHI ATTACKS ARE ABOUT TO GET AN ASSIST IN THE EFFORT WITH THE EUROPEAN UNION ANNOUNCING THEY WILL BE SENDING A NAVAL MISSION TO THE AREA WITHIN THE NEXT THREE WEEKS.
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