Today's Train of Thought- Haven't the Foggiest, September 19, 2011

Today's Train of Thought takes us to the bayous right outside of the Big Easy on a foggy Louisiana morning.

Here, the motive power seemingly tries to blend in with the enveloping morning mist as it leads a southbound merchandise freight past Milepost 853 on Kansas City Southern's New Orleans Subdivision.

The rather self-explanatory New Orleans Subdivision traverses Louisiana diagonally between Shreveport and New Orleans by way of Alexandria and Baton Rouge, LA and is one of five lines that radiates from Kansas City Southern's Shreveport, LA hub. Lines also head east to Meridian, MS, north to Kansas City, MO, west to Dallas, TX and south to the Houston area.

Here, railpitcures.net Brian LaFleur (aka 'Pork Chop') caught Kansas City Southern SD40-2 #661 rounding a curve at Almedia, LA in August 2004, just outside the train's final destination of New Orleans.

ExxonMobil Announces Significant Oil Find in Gulf of Mexico After Chaotic OPEC Meeting in Vienna

Oil giant ExxonMobil [NYSE- XOM] announced on Wednesday a major discovery in the Gulf of Mexico that could yield as much as 700 million barrels of oil.

Exxon began exploratory drilling at the Hadrian prospect in 2009. The company had finished two wells at the site, located about 250 miles off the Louisiana coast in 7,000 feet of water, and had a rig on location and an approved permit to drill a new well when operations were halted due to the temporary moratorium after the BP oil spill last year.

In March, federal regulators signed off on Exxon's revised permit to drill the new well in the Keathley Canyon area of the Gulf, the company's first approved under the new regulatory regime put in place after last year's spill. The new well extends about 23,000 feet below the sea surface, and the rig is continuing to drill deeper, said company spokesman Patrick McGinn.

"We estimate a recoverable resource of more than 700 million barrels of oil equivalent combined in our Keathley Canyon blocks," Steve Greenlee, president of ExxonMobil Exploration Company, said in a statement. "This is one of the largest discoveries in the Gulf of Mexico in the last decade. More than 85 percent of the resource is oil with additional upside potential."

The announcement came on the same day as a surprise announcement from the OPEC meetings in Vienna that the member states would leave production levels unchanged, causing a jump in oil prices.

OPEC officials said that because of a policy deadlock, the group will maintain present output ceilings with the option of meeting within the next three months to consider a hike.

"We are unable to reach consensus to ... raise our production," OPEC Secretary General Abdullah Al-Badri told reporters, in comments reflecting unusual tensions in the 12-nation Organization of the Petroleum Exporting Countries.

Saudi oil minister Ali Naimi called it "one of the worst meetings, we've ever had," while analysts covering OPEC for more than 20 years said they could not remember any other time that the normally closed group had admitted to such divisions in its ranks.

Some even saw the abortive meeting as a harbinger of demise for the organization, which produces more than a third of the world's petroleum.

"OPEC is ... on the point of break-up," said Marc Ostwald of Monument Securities. "A broader perspective is that the post World War II world order is fracturing in a spectacular fashion, be it the EU/Eurozone, the World Bank/IMF, (or) OPEC."

Other experts were less outspoken but agreed Wednesday's outcome would weaken the image of OPEC as a major regulator of oil markets.

The news caught markets by surprise, sending oil prices sharply higher. Benchmark crude for July delivery was up $1.25 to $100.34 per barrel in morning trading on the New York Mercantile Exchange after trading lower ahead of the OPEC meeting.

Saudi Arabia and other influential Gulf nations had pushed to increase production ceilings to calm markets and ease concerns that crude was overpriced for consumer nations struggling with their economies. Those opposed were led by Iran, the second-strongest producer within the Organization of the Petroleum Exporting Countries.

Oil minister Rafael Ramirez of Venezuela- like Iran, a price hawk - said there was a "very tight" discussion in OPEC, in comments to his nation's state media. Any production increase "could cause a collapse of our price," he added.

While the Saudis and the Iranians are frequently at loggerheads over pricing, past meetings normally fell in behind Saudi Arabia, which produces the lion's share of OPEC output. But this time, the Saudi-Iranian rivalry combined with major political and economic uncertainties to lead to deadlock.

Saudi Arabia, the United Arab Emirates, Kuwait, Algeria and Qatar were reportedly in favor of production increases while Iran, Venezuela, Angola, Ecuador and Iraq were opposed.

Mississippi Flooding Update: More Flood Gates Opened at Morganza Spillway; Mississippi River Closed to Shipping

AP Photo

The Army corps of Engineers announced that they had opened a 16th lock on the 125-bay Morganza spillway on Wednesday, sending an estimated 108,000 cubic feet of water per second gushing through the flood control structure.

26 parishes (counties in Louisiana) have been declared disaster areas, with E. Felicicana, LaFourche, Franklin and Richland parishes being added recently. Parts of St. Martin's Parish- just east of Lafayette, LA- are under a mandatory evacuation order on Wednesday in advance of the approaching flood waters.

Further downstream (but north of New Orleans), the Corps of Engineers said they had opened up nearly 330 of the 350 bays on the Bonne Carre spillway, sending water from the Mississippi River rushing through at a rate of 316,000 cubic feet per second into Lake Pontchartrain.

To the north, the US Coast Guard had closed down the Mississippi River around Natchez, MS to shipping earlier this week over concerns about additional strain on the levees from barges and river traffic. However, the New Orleans Times-Picayune reported that the Coast Guard was allowing barges loaded with coal, timber, iron and steel to pass through at the minimum speed.

Local officials on both sides of the river from Mississippi town of Natchez breathed a sigh of relief as the Coast Guard and NOAA revised their estimate for the floodwater's crest from 63 feet down to 62 .5 feet. The crest is expected to be reached on Saturday- the previous high water mark dates back to 1937 at 58.4 feet.

Pat over at And So it Goes in Shreveport has much much more.

UPDATED 5/15: US Army Corps of Engineers Opens Up Massive Floodgates Along Mississippi River

UPDATE 5/15: Although residing in a part of Louisiana relatively unaffected by the Morganza floodwall being opened up, blogger Pat Austin of And So it Goes in Shreveport has been updating frequently througout the weekend.

Louisiana reigonal news aggregator The Dead Pelican also came reccomended by a trusted source during the Deepwater Horizon spill last year and should have ample links to local coverage around Baton Rouge and the Morganza floodway.


For the first time in nearly 40 years, the Army Corps of Engineers opened up the first of the 125 massive floodgates of the Morganza spillway to relive pressure on a number of older downriver flood control structures protecting Baton Rouge and New Orleans from a swollen Mississippi River.


The decision to open up the spillway to protect New Orleans and Baton Rouge means that towns throughout the Atchafalaya Basin west of Baton Rouge are bracing for rising floodwaters, with some communities and businesses getting ready to evacuate or erect levees of their own. Elsewhere in the basin, farmers have been working around the clock to harvest their wheat crop before the rising waters from the Morganza Flood wall. There are an estimated 15,256 acres of farmland throughout the basin and another 2,853 acres located in the fore bay area between the floodwall and Mississippi River.

While farmers would be able to harvest some of the wheat, other crops in the basin such as corn, soybeans, sugarcane and rice would be considered a complete writeoff in the floods.

For the past two weeks, the Mississppi River had crested past flood levels as two major storm systems dumped considerable rainfall on the Mississippi and Missouri River headwaters in addition to the melting snow.

Earlier this month, the Army Corps of Engineers blew up an earthen levee in Sikeston, MO to prevent further damage to the town of Cairo, IL. Since then, floodwaters have struck western Kentucky and Tennessee (including Memphis) and Mississippi, surpassing record flood levels set back during 1937.