Wednesday, April 29, 2009

U.S. Gas Fields Go From Bust to Boom

(Compiler's note: This is extremely interesting. For maps please click on the title above to see the original article.)

CADDO PARISH, La. -- A massive natural-gas discovery here in northern Louisiana heralds a big shift in the nation's energy landscape. After an era of declining production, the U.S. is now swimming in natural gas.

Even conservative estimates suggest the Louisiana discovery -- known as the Haynesville Shale, for the dense rock formation that contains the gas -- could hold some 200 trillion cubic feet of natural gas. That's the equivalent of 33 billion barrels of oil, or 18 years' worth of current U.S. oil production. Some industry executives think the field could be several times that size.

"There's no dry hole here," says Joan Dunlap, vice president of Petrohawk Energy Corp., standing beside a drilling rig near a former Shreveport amusement park.
View SlideshowJared Moossy/Redux

Squeezing Gas From Rock

Huge new fields also have been found in Texas, Arkansas and Pennsylvania. One industry-backed study estimates the U.S. has more than 2,200 trillion cubic feet of gas waiting to be pumped, enough to satisfy nearly 100 years of current U.S. natural-gas demand.

The discoveries have spurred energy experts and policy makers to start looking to natural gas in their pursuit of a wide range of goals: easing the impact of energy-price spikes, reducing dependence on foreign oil, lowering "greenhouse gas" emissions and speeding the transition to renewable fuels.

A climate-change bill being pushed by President Barack Obama could boost reliance on natural gas. The bill, which could emerge from the House Energy and Commerce Committee in May, is expected to set aggressive targets for reducing emissions of carbon dioxide, the most prevalent man-made greenhouse gas.

Meeting such goals would require quickly moving away from coal-fired power plants, which account for substantial carbon emissions. President Obama wants the U.S. to rely more on renewable energy such as wind and solar power, but those technologies aren't ready to shoulder more than a fraction of the nation's energy burden. Advocates for natural gas argue that the fuel, which is cleaner than coal, would be a logical quick fix. In addition, billionaire energy investor T. Boone Pickens has been touting natural gas as an alternative to gasoline and diesel for cars and trucks.

"The availability of natural-gas generation enables us to be much more courageous in charting a transition to a low-carbon economy," says Jason Grumet, executive director of the National Commission on Energy Policy, who was a senior adviser to President Obama during the campaign.

Just three years ago, the conventional wisdom was that U.S. natural-gas production was facing permanent decline. U.S. policy makers were resigned to the idea that the country would have to rely more on foreign imports to supply the fuel that heats half of American homes, generates one-fifth of the nation's electricity, and is a key component in plastics, chemicals and fertilizer.

But new technologies and a drilling boom have helped production rise 11% in the past two years. Now there's a glut, which has driven prices down to a six-year low and prompted producers to temporarily cut back drilling and search for new demand.

The natural-gas discoveries come as oil has become harder to find and more expensive to produce. The U.S. is increasingly reliant on supplies imported from the Middle East and other politically unstable regions. In contrast, 98% of the natural gas consumed in the U.S. is produced in North America.

Coal remains plentiful in the U.S., but is likely to face new restrictions. To produce the same amount of energy, burning gas emits about half as much carbon dioxide as burning coal.

Natural gas has never played more than a supporting role in the nation's energy supply. Crude oil, refined into gasoline or diesel, fuels nearly all U.S. cars or trucks. Coal is the dominant fuel for generating electricity.

Natural-gas production in the U.S. peaked in the early 1970s, then fell for a decade due to weak prices and declining gas fields in Texas, Louisiana and elsewhere. Production bounced back in the 1990s with the discovery of new fields in New Mexico and Wyoming, but by 2002, output was falling again -- this time, most experts thought, for good. Believing the U.S. would soon need to import liquefied natural gas from overseas, companies such as ConocoPhillips, El Paso Corp. and Cheniere Energy Inc. spent billions on terminals, pipelines and storage facilities.

The supply fears drove up prices, which spurred innovation. Oil-and-gas companies had known for decades that there was gas trapped in shale, a nonporous rock common in much of the U.S. but considered too dense to produce much gas.

In the 1980s, Texas oilman George Mitchell began trying to produce gas from a formation near Fort Worth, Texas, known as the Barnett Shale. He pumped millions of gallons of water at high pressure down the well, cracking open the rock and allowing gas to flow to the surface.

Oklahoma City-based Devon Energy Corp. bought Mr. Mitchell's company in 2002. It combined his methods with a technique for drilling straight down to gas-bearing rock, then turning horizontally to stay within the formation. Devon's first horizontal wells produced about three times as much gas as traditional vertical wells.

The development of the Barnett Shale almost single-handedly reversed the decline in U.S. natural-gas production. Last year, the Barnett produced four billion cubic feet of gas a day, making it the largest field in the U.S. Other companies such as Newfield Exploration Co., Southwestern Energy Co. and Range Resources Corp. found shale fields across the U.S.

One of the most aggressive companies was Oklahoma City-based Chesapeake Energy Corp., which got into the Barnett a couple of years behind cross-town rival Devon, and was an early entrant into the second big U.S. field, the Fayetteville Shale in Arkansas. In 2005, Chesapeake Chief Executive Aubrey McClendon sent teams of geologists across the country with a mission: Find the next Barnett. Less than two years later, they told him they had it, in Louisiana.

The Haynesville Shale is centered in northern Louisiana, one of the country's oldest oil- and gas-producing regions. Wildcatters had explored beneath the lush cow pastures and cotton fields as far back as the 1870s. Shreveport, the region's largest city, saw decades of booms and busts until the 1980s, when a glut of cheap oil from overseas all but killed the region's oil industry.

Oil companies knew about the Haynesville Shale, but it was considered a less viable prospect than the Barnett. The shale lies 10,000 or more feet below ground, where high pressure and 300-degree temperatures are enough to fry high-tech drilling equipment.
But in 2006, Chesapeake drilled an exploratory well and decided the results were promising enough to justify the higher cost of drilling in such harsh conditions.
By late 2007, Mr. McClendon says, "we knew that we had a tiger by the tail."

In March 2008, as oil and gas prices were soaring, Chesapeake went public with its findings. The rush was on: Dozens of companies dispatched agents to the area to lease land for drilling, turning farmers and ranchers into millionaires overnight.
"There was excitement in the air," recalls Jeffrey Wellborn, a Shreveport resident who sits on the board of the local Sierra Club. "You thought everyone in the world had won the lottery."

The frenzy marked the peak of a nationwide drilling boom that was fueled by a combination of soaring energy prices and easy credit. It didn't last. Between July and October, oil and gas prices fell by more than 50%, and kept falling.

The weakening economy eroded demand for both oil and gas. Natural gas, unlike oil, suffered from a supply glut. U.S. gas production rose 7.2% last year, while oil production fell 1.9%. As a result, oil prices are up 12% since the start of 2009. Natural-gas prices have fallen 41% to their lowest since 2002.

Gas producers saw their profits evaporate and share prices slump. Liquefied-natural-gas imports plunged, leaving import terminals nearly idle. Worried about a glut, companies cut back sharply on drilling and formed a lobbying group to try to boost demand.
The growing supply created opportunities for policy makers and environmentalists, who saw natural gas as a possible solution to the nation's energy problems. Some groups suggested burning more gas and less coal for power generation. Others favor its use in vehicles.

Mr. Pickens has spent millions promoting an energy plan that aims to, among other things, convert thousands of big-rig trucks to run on natural gas. Mr. Pickens has large investments in natural gas and stands to benefit if his plan is adopted. In TV ads, Internet videos and speeches, he emphasizes a different goal: reducing U.S. dependence on foreign oil.

Mr. Pickens arrived for a recent speech in Dallas in a natural-gas-fueled Honda Civic with a bright blue "Pickens Plan" logo. He told a packed auditorium that the U.S. is importing two-thirds of its oil even as the country is "absolutely overwhelmed with natural gas." If the reverse were true, he said, he would favor burning oil.

Some environmentalists have embraced Mr. Pickens's plan as a way to fight climate change. Carl Pope, executive director of the Sierra Club, says he sees natural gas as a "bridge fuel" that could help the U.S. burn less coal and oil until renewable sources of energy are ready to take over.

The dual message of energy security and environmental responsibility has helped Mr. Pickens win powerful allies, including Senate Majority Leader Harry Reid, House Speaker Nancy Pelosi and dozens of elected officials from both parties. A bipartisan bill providing tax incentives for natural-gas cars looks likely to pass this year.

Not everyone shares Mr. Pickens's enthusiasm for natural-gas vehicles. Major users of natural gas, such as utilities and chemicals companies, are concerned the plan would drive up prices -- an outcome that would benefit producers.

Energy Secretary Steven Chu and some other policy makers have expressed doubts about the practicality of retrofitting hundreds of thousands of service stations to offer natural gas. Some environmental groups, including the Natural Resources Defense Council, have argued that natural gas is better used to replace coal for power generation, and that cars should run on electricity generated by the sun, wind and natural gas.

Market forces are already helping natural gas make inroads against coal and oil. Gas is now cheaper than coal in many parts of the country, leading utilities to burn more gas. Of the 372 power plants expected to be built in the U.S. over the next three years, 206 will be fired by gas and just 31 by coal, according to the Energy Information Administration.
Natural gas is gaining market share far more slowly in transportation. Earlier this year, AT&T announced it would convert up to 20% of its truck fleet to run on natural gas, largely because it has been cheaper than gasoline in recent years. Cities including New York, Los Angeles and Atlanta have converted part of their bus fleets to run on natural gas, for air-quality reasons.

Shreveport could be the next city to make the switch. In March, Mayor Cedric Glover announced that the oil capital turned natural-gas boomtown would abandon diesel and convert its bus fleet to natural gas.

—Russell Gold contributed to this article.

The Perfect Storm Is Here!

by Ms Placed Democrat

Yesterday Glenn Beck talked about the “perfect storm” — that storm being a real crisis in Mexico. That crisis has arrived. Mexico is shutting down all non-essential government and private businesses in an attempt to fight the swine flu.

Mexico to shut down government in flu fight
Decision comes as the World Health Organization warns of pandemic

Mexico’s government is temporarily suspending all nonessential activity of the federal government and private business as the number of confirmed swine flu cases jumped.

The decision came as global health authorities warned Wednesday that swine flu was threatening to bloom into a pandemic, and the virus spread farther in Europe even as the outbreak appeared to stabilize at its epicenter. A toddler who succumbed in Texas became the first death outside Mexico.

Health Secretary José Angel Córdova Villalobos announced the move to shut down most of the country’s government and economy shortly after his department reported that confirmed cases of infection with the new strain of influenza had risen.

Why is this the perfect storm? It has serious ramifications for an already stressed economy in Mexico which will have dire effects on our economy. The United States owns the majority of Mexican debt. With private businesses shut down and most of government shut down, there is an excellent chance Mexico will not be able to make debt payments.

What will happen to the USA? There will be further economic stress on our own precarious economy. Forget the evil resident’s rhetoric. Our economy isn’t improving. even though there was more consumer spending in April and businesses refilled their inventories. As a matter of fact the economy shrank more than 6% for the third quarter in a row, which is the first time since the 1970s.

The housing market isn’t improving the way the experts claim. The FHA is now reporting that many of the mortgages they are writing are going to “immediate delinquency” with eventual foreclosure.

At the end of February, 7.46 percent of the Federal Housing Administration’s single-family insurance-in-force was “seriously delinquent” — either 90 days delinquent, in foreclosure or bankruptcy. February’s rate of serious delinquencies is up considerably from the 6.16 percent seen at the same time last year, the Wall Street Journal first reported Tuesday.

The agency paid claims on 3,951 foreclosures, or 0.08 percent of the FHA’s insurance-in-force, in February, according to data provided to HousingWire by an FHA spokesperson, who was quick to point out that some 60 percent of delinquencies cure through the agency’s loss mitigation program before reaching the foreclosure process.

But critics of the program have said that its comparatively lenient terms — requiring as little as 3.5 percent of the home’s value as a down payment, for example — in the wake of the subprime market collapse attracted many borrowers with less-than-ideal credit. The volume of FHA-insured loans as a portion of the total mortgage origination market has increased from 3 percent in Jan. 2007 to 37 percent in Dec. 08, according to a monthly mortgage monitor report released this month by Lender Processing Services Inc. (LPS: 30.10 +2.87%)

Many of the loans now going to default are jumbo loans. The other part of this is that FHA is about the only one writing mortgage loans.

The FHA’s share of the U.S. mortgage market soared to nearly a third of loans originated in last year’s fourth quarter from about 2% in 2006 as a whole, according to Inside Mortgage Finance, a trade publication. That is increasing the risk to taxpayers if the FHA’s reserves prove inadequate to cover default losses.

As of January, the cities with the highest FHA default rates in December were Punta Gorda, Fla., at 18%; Detroit, 15.6%; Flint, Mich., 15.1%; Fort Myers-Cape Coral, Fla., 15%, and Elkhart-Goshen, Ind., 12.1%, according to a HUD report.

Foreclosed FHA homes owned by HUD totaled 39,687 in January, up 22% from a year earlier.

As you can see ny the evidence here the housing market isn’t getting better it is getting worse because Congress has loosened the rules at the FHA, providing more subprime loans.

The stock may have gone up today but the stock market remains below 10,000 and not about to rise much higher. It is my opinion that the stock market has not bottomed out. It is still reeking havoc on 40ks.

Eventually we will see the lasting effects of the swine flu as it continues to spread globally. And it is spreading globally and likely to reach pandemic levels within the next few days. The swine flu will have a lasting effect on our economy and likely because of Mexico’s actions today.

Very Important Notice

(Compiler's note: A must read item. Food for thought from an old friend. I have gotten straight stuff from him before.)

-----Original Message-----

From:

Sent: Monday, April 27, 2009 10:06 AM

Whether you are an Obama fan, or not, EVERYONE IN THE U. S. needs

to know....

Something happened... H.R. 1388 was passed yesterday, behind

our backs. You may want to read about it. It wasn't mentioned on the news...

just went by on the ticker tape at the bottom of the CNN screen.

Obama funds $20M in tax payer dollars to immigrate Hamas

Refugees to the USA. This is the news that didn't make the headlines...

By executive order, President Barack Obama has ordered the

expenditure of $20.3 million in "migration assistance" to the

Palestinian refugees and "conflict victims" in Gaza.

The "presidential determination", which allows hundreds of

thousands of Palestinians with ties to Hamas to resettle in the

United States, was signed on January 27 and appeared in the Federal

Register on February 4.

Few on Capitol Hill, or in the media, took note that the

order provides a free ticket replete with housing and food

allowances to individuals who have displayed their overwhelming

support to the Islamic Resistance Movement (Hamas) in the

parliamentary election of January 2006.

Let's review...itemized list of some of Barack Obama's most

recent actions since his inauguration:

His first call to any head of state, as president, was to

Mahmoud Abbas, leader of Fatah party in the Palestinian territory.

His first one-on-one television interview with any news

organization was with Al Arabia television.

His first executive order was to fund/facilitate abortion(s)

not just here within the U. S., but within the world, using U. S.

tax payer funds.

He ordered Guantanamo Bay closed and all military trials of

detainees halted.

He ordered overseas CIA interrogation centers closed.

He withdrew all charges against the masterminds behind the

USS Cole and the "terror attack" on 9/11.

Now we learn that he is allowing hundreds of thousands of

Palestinian refuges to move to, and live in, the US at American

taxpayer expense.

These important, and insightful, issues are being "lost" in

the blinding bail-outs and "stimulation" packages.

Doubtful? To verify this for yourself:


www.thefederalregister.com/d.p/2009-02-04-E9-2488

PLEASE PASS THIS ON ... AMERICA NEEDS TO KNOW!!!

WE are losing this country at a rapid pace.


A Chilling Effect on U.S. Counterterrorism

(Compiler's note: A must read article.)

By Fred Burton and Scott Stewart

Over the past couple of weeks, we have been carefully watching the fallout from the Obama administration’s decision to release four classified memos from former President George W. Bush’s administration that authorized “enhanced interrogation techniques.” In a visit to CIA headquarters last week, President Barack Obama promised not to prosecute agency personnel who carried out such interrogations, since they were following lawful orders. Critics of the techniques, such as Sen. Patrick Leahy, D-Vt., have called for the formation of a “truth commission” to investigate the matter, and Rep. Jerrold Nadler, D-N.Y., has called on Attorney General Eric Holder to appoint a special prosecutor to launch a criminal inquiry into the matter.

Realistically, those most likely to face investigation and prosecution are those who wrote the memos, rather than the low-level field personnel who acted in good faith based upon the guidance the memos provided. Despite this fact and Obama’s reassurances, our contacts in the intelligence community report that the release of the memos has had a discernible “chilling effect” on those in the clandestine service who work on counterterrorism issues.

In some ways, the debate over the morality of such interrogation techniques — something we do not take a position on and will not be discussing here — has distracted many observers from examining the impact that the release of these memos is having on the ability of the U.S. government to fulfill its counterterrorism mission. And this impact has little to do with the ability to use torture to interrogate terrorist suspects.

Politics and moral arguments aside, the end effect of the memos’ release is that people who have put their lives on the line in U.S. counterterrorism efforts are now uncertain of whether they should be making that sacrifice. Many of these people are now questioning whether the administration that happens to be in power at any given time will recognize the fact that they were carrying out lawful orders under a previous administration. It is hard to retain officers and attract quality recruits in this kind of environment. It has become safer to work in programs other than counterterrorism.

The memos’ release will not have a catastrophic effect on U.S. counterterrorism efforts. Indeed, most of the information in the memos was leaked to the press years ago and has long been public knowledge. However, when the release of the memos is examined in a wider context, and combined with a few other dynamics, it appears that the U.S. counterterrorism community is quietly slipping back into an atmosphere of risk-aversion and malaise — an atmosphere not dissimilar to that described by the National Commission on Terrorist Attacks Upon the United States (also known as the 9/11 Commission) as a contributing factor to the intelligence failures that led to the 9/11 attacks.

Cycles Within Cycles

In March we wrote about the cycle of counterterrorism funding and discussed indications that the United States is entering a period of reduced counterterrorism funding. This decrease in funding not only will affect defensive counterterrorism initiatives like embassy security and countersurveillance programs, but also will impact offensive programs such as the number of CIA personnel dedicated to the counterterrorism role.

Beyond funding, however, there is another historical cycle of booms and busts that can be seen in the conduct of American clandestine intelligence activities. There are clearly discernible periods when clandestine activities are deemed very important and are widely employed. These periods are inevitably followed by a time of investigations, reductions in clandestine activities and a tightening of control and oversight over such activities.

After the widespread employment of clandestine activities in the Vietnam War era, the Church Committee was convened in 1975 to review (and ultimately restrict) such operations. Former President Ronald Reagan’s appointment of Bill Casey as director of the CIA ushered in a new era of growth as the United States became heavily engaged in clandestine activities in Afghanistan and Central America. Then, the revelation of the Iran-Contra affair in 1986 led to a period of hearings and controls.

There was a slight uptick in clandestine activities under the presidency of George H.W. Bush, but the fall of the Soviet Union led to another bust cycle for the intelligence community. By the mid-1990s, the number of CIA stations and bases was dramatically reduced (and virtually eliminated in much of Africa) for budgetary considerations. Then there was the case of Jennifer Harbury, a Harvard-educated lawyer who used little-known provisions in Texas common law to marry a dead Guatemalan guerrilla commander and gain legal standing as his widow. After it was uncovered that a CIA source was involved in the guerrilla commander’s execution, CIA stations in Latin America were gutted for political reasons. The Harbury case also led to the Torricelli Amendment, a law that made recruiting unsavory people, such as those with ties to death squads and terrorist groups, illegal without special approval. This bust cycle was well documented by both the Crowe Commission, which investigated the 1998 East Africa embassy bombings, and the 9/11 Commission.

After the 9/11 attacks, the pendulum swung radically to the permissive side and clandestine activity was rapidly and dramatically increased as the U.S. sought to close the intelligence gap and quickly develop intelligence on al Qaeda’s capability and plans. Developments over the past two years clearly indicate that the United States is once again entering an intelligence bust cycle, a period that will be marked by hearings, increased controls and a general decrease in clandestine activity.

Institutional Culture

It is also very important to realize that the counterterrorism community is just one small part of the larger intelligence community that is affected by this ebb and flow of covert activity. In fact, as noted above, the counterterrorism component of intelligence efforts has its own boom-and-bust cycle that is based on major attacks. Soon after a major attack, interest in counterterrorism spikes dramatically, but as time passes without a major attack, interest lags. Other than during the peak times of this cycle, counterterrorism is considered an ancillary program that is sometimes seen as an interesting side tour of duty, but more widely seen as being outside the mainstream career path — risky and not particularly career-enhancing. This assessment is reinforced by such events as the recent release of the memos.

At the CIA, being a counterterrorism specialist in the clandestine service means that you will most likely spend much of your life in places line Sanaa, Islamabad and Kabul instead of Vienna, Paris or London. This means that, in addition to hurting your chances for career advancement, your job also is quite dangerous, provides relatively poor living conditions for your family and offers the possibility of contracting serious diseases.

While being declared persona non grata and getting kicked out of a country as part of an intelligence spat is considered almost a badge of honor at the CIA, the threat of being arrested and indicted for participating in the rendition of a terrorist suspect from an allied country like Italy is not. Equally unappealing is being sued in civil court by a terrorist suspect or facing the possibility of prosecution after a change of government in the United States. Over the past few years, there has been a dramatic increase in the number of CIA case officers who are choosing to carry personal liability insurance because they do not trust the agency and the U.S. government to look out for their best interests.

Now, there are officers who are willing to endure hardship and who do not really care much about career advancement, but for those officers there is another hazard — frustration. Aggressive officers dedicated to the counterterrorism mission quickly learn that many of the people in the food chain above them are concerned about their careers, and these superiors often take measures to rein in their less-mainstream subordinates. Additionally, due to the restrictions brought about by laws and regulations like the Torricelli Amendment, case officers working counterterrorism are often tightly bound by myriad legal restrictions.

Unlike in television shows like “24,” it is not uncommon in the real world for a meeting called to plan a counterterrorism operation to feature more CIA lawyers than case officers or analysts. These staff lawyers are intricately involved in the operational decisions made at headquarters, and legal issues often trump operational considerations. The need to obtain legal approval often delays decisions long enough for a critical window of operational opportunity to be slammed shut. This restrictive legal environment goes back many years in the CIA and is not a new fixture brought in by the Obama administration. There was a sense of urgency that served to trump the lawyers to some extent after 9/11, but the lawyers never went away and have reasserted themselves firmly over the past several years.

Of course, the CIA is not the only agency with a culture that is less than supportive of the counterterrorism mission. Although the prevention of terrorist attacks in the United States is currently the FBI’s No. 1 priority on paper, the counterterrorism mission remains the bureau’s redheaded stepchild. The FBI is struggling to find agents willing to serve in the counterterrorism sections of field offices, resident agencies (smaller offices that report to a field office) and joint terrorism task forces.

While the CIA was very much built on the legacy of Wild Bill Donovan’s Office of Strategic Services, the FBI was founded by J. Edgar Hoover, a conservative and risk-averse administrator who served as FBI director from 1935-1972. Even today, Hoover’s influence is clearly evident in the FBI’s bureaucratic nature. FBI special agents are unable to do much at all, such as open an investigation, without a supervisor’s approval, and supervisors are reluctant to approve anything too adventurous because of the impact it might have on their chance for promotion. Unlike many other law enforcement agencies, such as the Drug Enforcement Administration or the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI rarely uses its own special agents in an undercover capacity to penetrate criminal organizations. That practice is seen as being too risky; they prefer to use confidential informants rather than undercover operatives.

The FBI is also strongly tied to its roots in law enforcement and criminal investigation, and special agents who work major theft, public corruption or white-collar crime cases tend to receive more recognition — and advance more quickly — than their counterterrorism counterparts.

FBI special agents also see a considerable downside to working counterterrorism cases because of the potential for such cases to blow up in their faces if they make a mistake — such as in the New York field office’s highly publicized mishandling of the informant whom they had inserted into the group that later conducted the 1993 World Trade Center bombing. It is much safer, and far more rewarding from a career perspective, to work bank robberies or serve in the FBI’s Inspection Division.

After the 9/11 attacks — and the corresponding spike in the importance of counterterrorism operations — many of the resources of the CIA and FBI were focused on al Qaeda and terrorism, to the detriment of programs such as foreign counterintelligence. However, the more time that has passed since 9/11 without another major attack, the more the organizational culture of the U.S government has returned to normal. Once again, counterterrorism efforts are seen as being ancillary duties rather than the organizations’ driving mission. (The clash between organizational culture and the counterterrorism mission is by no means confined to the CIA and FBI. Fred’s book “Ghost: Confessions of a Counterterrorism Agent” provides a detailed examination of some of the bureaucratic and cultural challenges we faced while serving in the Counterterrorism Investigations Division of the State Department’s Diplomatic Security Service.)

Liaison Services

One of the least well known, and perhaps most important, sources of intelligence in the counterterrorism field is the information that is obtained as a result of close relationships with allied intelligence agencies — often referred to as information obtained through “liaison channels.”

Like FBI agents, most CIA officers are well-educated, middle-aged white guys. This means they are better suited to use the cover of an American businessmen or diplomat than to pretend to be a young Muslim trying to join al Qaeda or Hezbollah. Like their counterparts in the FBI, CIA officers have far more success using informants than they do working undercover inside terrorist groups.

Services like the Jordanian General Intelligence Department, the Saudi Mabahith or the Yemeni National Security Agency not only can recruit sources, but also are far more successful in using young Muslim officers to penetrate terrorist groups. In addition to their source networks and penetration operations, many of these liaison services are not at all squeamish about using extremely enhanced interrogation techniques — this is the reason many of the terrorism suspects who were the subject of rendition operations ended up in such locations. Obviously, whenever the CIA is dealing with a liaison service, the political interests and objectives of the service must be considered — as should the possibility that the liaison service is fabricating the intelligence in question for whatever reason. Still, in the end, the CIA historically has received a significant amount of important intelligence (perhaps even most of its intelligence) via liaison channels.

Another concern that arises from the call for a truth commission is the impact a commission investigation could have on the liaison services that have helped the United States in its counterterrorism efforts since 9/11. Countries that hosted CIA detention facilities or were involved in the rendition or interrogation of terrorist suspects may find themselves exposed publicly or even held up for some sort of sanction by the U.S. Congress. Such activities could have a real impact on the amount of cooperation and information the CIA receives from these intelligence services.

Conclusion

As we’ve previously noted, it was a lack of intelligence that helped fuel the fear that led the Bush administration to authorize enhanced interrogation techniques. Ironically, the current investigation into those techniques and other practices (such as renditions) may very well lead to significant gaps in terrorism-related intelligence from both internal and liaison sources — again, not primarily because of the prohibition of torture, but because of larger implications.

When these implications are combined with the long-standing institutional aversion of U.S. government agencies toward counterterrorism, and with the difficulty of finding and retaining good people willing to serve in counterterrorism roles, the U.S. counterterrorism community may soon be facing challenges even more daunting than those posed by its already difficult mission.

Eligibility case defendants don't want to answer now Lawyer for Obama, Congress says representation decision unmade

Government lawyers defending President Obama and Congress in a lawsuit alleging that he's ineligible to occupy the Oval Office and that members of the House and Senate violated the constitutional rights of citizens by refusing to investigate want still more time to respond to the accusations....

FAA Memo: Feds Knew NYC Flyover Would Cause Panic Threatened Federal Sanctions Against NYPD, Secret Service, FBI & Mayor's Office If Secret Ever Got O

In addition to clicking on the above title, click here for additional information.