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Daily Archives: March 21, 2017
Transocean: Speculating On Offshore Drilling – Seeking Alpha
Posted: March 21, 2017 at 12:14 pm
(Source: deepwater.com)
Transocean Ltd. (NYSE:RIG) primarily offers deepwater and harsh environment oil and gas drilling services worldwide. The company owns or has partial ownership interests in 61 mobile offshore drilling units, including 28 ultra-deepwater floaters, 7 harsh environment floaters, 5 deepwater floaters, 11 midwater floaters, and 10 high-specification jackups. As of February, the company has stacked 27 rigs and idled 4 rigs. The cold stacked rigs serve as a company liability as they cost money and are unlikely to reenter the fleet.
RIG's stock price has outperformed the GICS Oil and Gas Drilling subindustry the last few months, including its offshore competitors such as Diamond Offshore Drilling Inc. (NYSE:DO), Ensco PLC (NYSE:ESV), and Rowan Companies plc (NYSE:RDC).
(Source:Portfolio123)
In a world of offshore drilling musical chairs, where companies are scrambling to unload rigs before the music stops, RIG seems to have found a chair to sit on. A recently published report indicates that RIG is considering selling its fleet of 15 shallow-water rigs for $1.2 billion. This would help out their balance sheet tremendously.
It should be noted that RIG filed a patent infringement complaint against Noble Corporation plc (NYSE:NE) in January, an action that could lead to unexpected legal costs.
Also in January, GE Oil & Gas (NYSE:GE) announced they had entered into an agreement with RIG for $180 million to provide condition-based monitoring and maintenance services for pressure control equipment on seven of Transocean's rigs over the next 10 to 12 years.
Company Fundamentals
RIG has managed to maintain positive earnings despite rapidly falling revenues in 2016, accomplished by controlling costs, reduced capital spending, and deferring delivery of seven new builds until 2020.
(Source:Portfolio123)
The table below highlights how RIG compares to the GICS Energy Equipment & Services industry aggregate. RIG has better figures for just about every fundamental factor, whether it be valuation, returns, or margin.
Note that the industry includes companies that supply oil and gas equipment and services other than drilling.
(Source:Portfolio123)
But be aware, as Balance Sheet Explorer observes:
RIG has written down $6 billion since 2014. While the impairments have showed up on the cash flow statement and the income statement, they have been absent on the balance. In other words, the NPPE has remained roughly the same. This is because, according to accounting rules, the assets will be written down on the balance sheet only if the company keeps using the assets. Companies like RIG have simply elected to warm or cold-stack their rigs, effectively allowing them to keep the value of the balance sheet.
The fundamentals should be taken with a grain of salt, or should I say a drop of salt water. They are statistics in a rapidly changing market segment that don't necessarily apply to the future. Analysts expect that RIG will be operating in the red in 2017 as contracts wind down.
Even so, RIG's future appears to be relatively stable given the $11.3 billion backlog and $6.1 billion of liquidity, important factors in a market segment where survival mode will be the norm for offshore oil drillers, at least for the next couple of years.
Analyst Estimates
Sales and EPS have generally beaten analysts' estimates, sometimes by a wide margin. This generally means that the company provides conservative forward guidance. The message here is that investors should not fear large negative surprises come reporting time.
(Source:Portfolio123)
The average recommendation for RIG is 3.5 on a scale of 1 to 5 with 1 being a 'Buy' and 5 being a 'Sell'. The average recommendation has decreased from ~3.9 back in July 2016. The average recommendation of 3.5 is worse than for the company's peers. Both NE and RDC have a recommendation of 2.9.
(Source:Portfolio123)
The stock short interest is a huge 18.1% of float. Short interest is a good gauge of future price direction. However, a short squeeze could occur if the stock price spikes up for any reason.
Technicals
The stock price has been in a downward trend since the start of 2017. The stock price is currently $12.47 and if the downward trend continues the price could reach the initial support level of $12 followed by the support level at $10.75.
(Source: stockcharts.com)
Investing in Transocean
Investors should avoid RIG until the stock price drops below $12 while keeping an eye on the rumored deal for sale of the shallow-water rigs. If this deal goes through, the stock price will go much higher plus there is the possibility of a short squeeze. Speculators could enter a long position now, but I have to caution readers that the supposed $1.2 billion deal has not been confirmed and may not occur.
Investment Risk
One risk for a long position in RIG is an extended oil bear market, which is a quite distinct possibility. If the price of oil continues lower then some offshore drilling services companies will ultimately go belly-up, and the rest will fall in price either due to fundamentals or in sympathy.
Another risk is that the large backlog is almost entirely dependent on / contracted with Shell (RDS.A, RDS.B), which is big-time concentration risk. If true, RIG's long-term survival appears to be heavily dependent on its relationship with Shell.
Wrap-Up
RIG owns 61 mobile offshore drilling units, with 27 stacked rigs and idled 4 rigs.
RIG fundamentals are superior to the industry aggregate, with better valuation, returns, and margins. As with the rest of the industry, RIG is expected to lose money in 2017.
Sales and EPS have generally beaten analysts' estimates, sometimes by a wide margin. This generally means that the company provides conservative forward guidance.
There is a high level of short interest meaning that speculators are pessimistic about RIG's prospects. Short interest is a good gauge of future price direction.
Given the $11.3 billion backlog and $6.1 billion of liquidity, traders could buy RIG on speculation that sale of shallow-water rigs will go through. Conservative investors should avoid this stock.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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Offshore Stymies Oil States – Oil States International Inc. (NYSE:OIS … – Seeking Alpha
Posted: at 12:14 pm
Oil States International (NYSE:OIS) is a conundrum of sorts. Its mix of onshore and offshore products provides diversification. However, it appears that when one segment does well, the other segment under-performs.
Push/Pull Between Onshore And Offshore Continues
Oil States has been punished by the rout in oil prices. In order to stem cash burn, shale oil plays have squeezed suppliers. The company's Wellsite Services segment represented as much 48% of revenue in 2014; it fell to as low as 23% last quarter. The rig count rose by 14% in Q3, and growth in the company's Wellsite Services segment has been white hot.
The segment generated $54.9 million in revenue, up 18% sequentially. The company has a major presence with shale oil plays in the Permian Basin in West Texas and in the Rocky Mountains. That has served the company well as the Permian is where the lion's share of growth in the rig count has occurred. Its revenue growth was much higher than larger players like Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI).
The company experienced a 3% sequential increase in completion services jobs performed, and a 16% increase in average sales price ("asp") per job. These improvements, along with increased activity in the Permian basin and increased usage of land rigs are expected to drive Q1 2017 revenue growth at a minimum of 5% sequentially.
While land drilling is showing signs of life, the Offshore segment is in decline. Offshore revenue fell 13% sequentially due to falling demand for products used in drilling applications. Oil prices might have remain above $60 for a sustainable period before drilling demand improves. The company expects revenue in the first half of 2017 to be down substantially. It could overshadow any improvement in land drilling revenue.
Liquidity Remains Strong
The bottom line is as long as Oil States maintains strong liquidity and cash flow the company is not going anywhere. The company has working capital of $383 million, which is solid for a company of its size. For full-year 2016 the company generated free cash flow of $119 million. Management cut costs to match its declining revenue base. Capex for the year was only $30 million, versus $115 million in 2015. Its long-term debt of $46 million less than 1x EBITDA, which is paltry compared with larger competitors like Weatherford International (NYSE:WFT) and Halliburton whose balance sheets are more challenged.
Through cost-containment efforts OIS has been able to maintain EBITDA margins in the 7% - 8% range. Along with solid free cash flow, the company should be able to weather another downturn in oil prices. The OPEC supply cut has help spur prices off their Q1 2016 lows. However, I expect the increase in supply from shale oil plays could keep prices in check. The break-even costs for shale plays continue to fall, so drilling activity could remain robust even if oil falls to the mid-$40s. That does not bode well for long-term oil prices.
Takeaway
Oil States has an enterprise value of 34x trailing EBITDA. The stock is up about 3% Y/Y and will likely trade with oil prices. I rate the stock a hold as oil prices could stay in a trading range for the rest of 2017.
Disclosure: I am/we are short HAL, WFT.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
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Vryhof launches offshore engineering unit – World Oil – WorldOil (subscription)
Posted: at 12:14 pm
3/20/2017
BERGEN, Norway -- Vryhof and its business unit Deep Sea Mooring (DSM) have launched a new engineering unit to support the companys offshore oil & gas, renewables and aquaculture operations across the globe.
The new unit, which is just one element of Vryhof that also includes anchoring technology specialists Vryhof Anchors and Moorlink,a provider of mobile and permanent mooring solutions, will be home to some of the industrys leading engineers with previous experience as oil & gas operators, rig owners and vessel designers.
The unit will provide expertise in hydrodynamic and vessel motion analysis; advanced mooring analysis (including for offshore wind turbines and offshore fish farms); dynamic positioning (DP) analysis; flexible and rigid riser analysis; complex marine operations (including offshore crane operations and subsea operations); andprobabilistic and deterministic stability analysis for all ship types and floating structures.
A main element of the new units activities and a key differentiator in the marketplace will be one of the industrys largest servers with parallel processing capabilities. This will enable Vryhof and DSM to carry out 120 simultaneous engineering simulations, thereby shortening computational times, reducing assumptions and simplifications, and delivering highly accurate and less conservative engineering analysis for customers.
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Britain’s Good Energy to buy offshore wind power from Dong – Reuters
Posted: at 12:14 pm
LONDON British green energy supplier Good Energy (GOODG.L), one of the small players snapping up market share from big providers, said it had signed a one-year deal to buy electricity from a Dong Energy (DENERG.CO) wind farm off the Yorkshire coast.
Good Energy, which also announced a near 40 percent jump in core profit for last year, said it will buy 12 percent of the electricity produced by Dong Energy's 210-megawatt (MW) Westermost Rough wind farm, with a view to expanding the deal in terms of length and volume.
Denmark's Dong Energy, the largest offshore wind operator in Britain, said the deal marked the first time a British supplier will buy electricity directly from one of its offshore wind farms.
"We have an ambition to ... become one of the UK's leading energy suppliers to industrial and commercial customers and independent retailers," said Dong Energy's head of trading, Soeren Scherfig.
Announcing its full-year results, Good Energy said its electricity customer base grew by 5 percent last year to 71,486 and its gas customer base by 14 percent to 44,107, helping core profit jump to 10.1 million pounds ($13 mln).
Smaller energy suppliers now account for around 18 percent of the dual-fuel British energy market, up from just one percent in 2012, as customers leave big suppliers which the competition watchdog found to have overcharged consumers billions of pounds.
(This version of the story was refiled to include missing word 'power' in headline)
(Reporting by Karolin Schaps; Editing by Susan Fenton)
SHANGHAI China's Alibaba Group Holding Ltd has fully acquired online ticketing platform Damai.cn, the e-commerce giant said on Tuesday, marking a further push into entertainment by the firm as it expands beyond its core online retail business.
TOKYO Japan's Panasonic Corp on Tuesday said it has agreed to become majority owner of Spanish auto parts maker Ficosa International SA [FICOS.UL] as it bolsters its push into the automotive field.
CAPE CANAVERAL, Fla. Privately owned Rocket Lab, a Los Angeles- and New Zealand-based startup poised to begin small satellite launch services this year, has closed a Series D financing round of $75 million, company officials said on Tuesday.
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Scottish offshore wind park of 450 MW gets CfD back – Renewables Now (subscription)
Posted: at 12:14 pm
March 21 (Renewables Now) - The 450-MW Neart na Gaoithe offshore wind farm in Scotland has won the fight against the termination of its Contract for Difference (CfD) and it is now targeting financial close in 2018 and construction start in 2019.
Irish company Mainstream Renewable Power today announced that the arbitral tribunal has decided in favour of Neart na Gaoithe in the dispute related to Low Carbon Contracts Co Ltds (LCCC) move to terminate the CfD for the project in March 2016.
The details on the dispute are confidential.
Mainstream further said it is continuing discussions with the European Investment Bank (EIB), international equity investors, commercial banks and other interested parties to help the offshore wind project reach financial close and start construction.
Planned for the Outer Forth Estuary in the North Sea, Neart na Gaoithe secured a 15-year CfD at a strike price of GBP 114.38 (USD 141.7/EUR 131.6) per MWh in March 2015. It got planning consent in October 2014, but the Royal Society for the Protection of Birds (RSPB) Scotland in early 2015 challenged in court the Scottish governments approval of four offshore wind projects, including this one.
Neart na Gaoithe continues to work with the relevant bodies to ensure that the project has a viable unencumbered consent to allow for financial close in 2018, Mainstream said.
The company had said previously it would use Siemens (FRA:SIE) 7-MW turbines for the project.
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How Offshore Racing Improves the Soul – Scuttlebutt Sailing News
Posted: at 12:14 pm
Wally Cross with Ullman Sails Detroit shares how offshore sailing offers vital therapy for our fast-moving lives.
Life is busy more today than ever before. In addition to family and work obligations, text messages, Facebook, Twitter, Snapchat and Instagram all demand our attention. Because of all this, our minds are constantly inundated with information, and many of us are looking for ways to escape the hectic pace of the modern era.
Americans spend millions on yoga, meditation, mindfulness and other forms of relaxation to break from the fast-paced life. For me, a long-distance race is truly the best way to unplug, literally and figuratively, from everyday life.
My favorite long-distance sailing memory is the 2013 Transpac Race on Bob Pethicks Rogers 46, Bretwalda. With a distance of 2,600 miles from LA to Hawaii, this was the longest race in both distance and days of my career.
Among our crew of eight, I was fortunate to have good relationships with everyone, and, as an added bonus, had my closest friend on my watch. While we had a satellite phone/Internet connection, we all agreed not to contact anyone during our voyage.
Just prior to the start, our owner turned off his cell phone for the duration of the race. At that moment, I felt a sense of relief. We were on our own for the next nine to 11 days.
I decided not to think about the length of the race, but to take each day, each hour at a time. I chose to think only about the two Ss Sailing and Surviving. Sailing is such a part of who I am, I can do it without thinking, which could be described as mindful.
Our watch system was four hours on, four hours off. One watch quickly turned into four watches, and the days evaporated one after another. During that 10-day window, I didnt have time to focus on lifes usual distractions. Life was now about the very basics of survival sleeping in small pipe berths, desalinating water for drinking, and hydrating food to eat.
By the middle portion of the race, days and nights blended together creating a strange yet incredible reality. The three other crew members on my watch became my family. We all shared a box of wine at the 1,300-mile mark, the halfway point. Being that far from civilization, and knowing that no one could help if anyone was sick or hurt, was enlightening. We had no time to worry about things beyond our control. That feeling was worth the price of living in these extreme conditions.
While I certainly thought about my family, job and all that life on land demands, 99-percent of the day, I thought about sailing and safety. During this experience, its almost as if my brain was filtering out any unnecessary information, and living simply became such a joy.
I would look forward to brushing my teeth once a day or taking a solar shower once in the race. Even the freeze-dried food became an obsession debating on ways to prepare it with olive oil and hot sauce. Often, we would sit on the floor, eating, sharing stories and reflecting on the last four hours. Your watch team became your brothers the bond between us was tangible.
There is nothing simple about the Transpac Race, but it felt that way to me. It was windy, wild, wet and, yes, sometimes scary. However, it was everything we hoped it could be. As we approached the islands, we became focused on the finish. Even though the end of our race was still about a day away, it was an incredible feeling to see land after only seeing water for nine days. We entered the Molokai Channel, greeted with 30mph winds that allowed us to finish early on the tenth evening of our journey.
Reaching land also meant my entry back into the normal world. I was ready. My 10 days across the Pacific put life into perspective. I found a new appreciation for ordinary day-to-day activities such as a sitting down to a real dinner, speaking to my family, taking a shower, and, yes, even watching the news. The race was a sort of cleansing, a refresh period, leaving me more focused on my everyday life more than ever.
Of course, we sail to win, but just like climbing Mt. Everest or running a marathon, sailing the Transpac was an award in and of itself. Doing something that few would or could do makes you feel proud of your accomplishment. I ultimately felt this race was more of a test than a challenge. The test was to see how I would react to the extreme lifestyle change. I am so grateful for the experience and look forward to doing it again.
Offshore racing is a unique experience that I recommend to all seasoned sailors. You can enjoy the benefits of unplugging by participating in the Mackinac Race, sailing to Bermuda or Jamaica, or traveling any distance longer than your typical race. Next time you race offshore for a day or more, turn off your cell phone and your brain. Experience the beauty of the water and focus on building lasting friendships with the crew. You will be rewarded for the rest of your life.
Requirements of a Great Offshore Experience A true offshore race needs to be long enough for you to break from your phone, computer and all of society for at least two days at a minimum yet preferably six or more. Offshore races are very different than buoy sailing. The boat must function well on deck, as it has to support a crew for many days below.
Heres a list of requirements to maximize the experience: A safe, fast boat to race (based on the race, choose a boat that performs well in those conditions) Enjoyable team on and off the water (less is more when it comes to the total experience) Current Sailing Gear Sails designed VMC (Velocity Made to Course) strong with low stretch Instruments that provide true values, polars speeds, true wind speed, boat speed and true wind direction. Also, a computer with routing software and capable of downloading weather. Communication system for reports and safety. Running rigging that is strong and durable. One or more halyard locks are helpful for long races. A good spare halyard that could double as a sheet works well. Flexible, dry foul weather gear. Combine this with a reliable safety harness with inflatable life jacket. Make the race an enjoyable experience before, during and especially after, by sailing to an exciting destination. Looking forward to the finish based on location is the ultimate carrot. Great preparation for the race Research weather, routing Sail crossover chart for wind speed and angle Dry boat inside Comfortable sleeping berths with pillow and blanket Water maker, salt to fresh Great freeze dry food (olive oil and hot sauce are my favorite extras) Practical toiletries and cleaning wipes Watch system that allows you to sail and rest with the same team Fans below to circulate air (smell and temperature) Individual thermos cups for all liquid with personal spork for eating
A crossover chart and freeze dried meals are two of the essentials needed for successful offshore sailing.
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Steel in the Water: Offshore Wind Is Finally Coming to America – Greentech Media
Posted: at 12:14 pm
Its been 15 years since Cape Wind -- the project meant to be Americas first offshore wind farm -- was first proposed. For years, the 130-turbine, 450-megawatt project was held up as the start of an entirely new industry in the U.S. But fierce legal opposition and project financing problems eventually brought it down.
The offshore wind industry is now virtually all in Europe. In 2001, Europe had a few hundred megawatts of offshore wind projects. Today, it has nearly 13,000 megawatts of capacity -- and developers are on track to make offshore wind the cheapest form of new electricity. In fact, new projects are now beating 2020 price estimates.
When will America finally capture a piece of this budding industry?
This week's guest is well equipped to answer that question. Alicia Barton is the former director of the Massachusetts Clean Energy Center, the former chief of operations at SunEdisons global utility group, and is now the co-chair of the cleantech practice at the global law firm Foley Hoag. She joins us to talk about the regulatory and business activity underway on America's East Coast.
Paste the following URL into your preferred podcast app or click the Open Podcast Feed button to subscribe to The Interchange: Open Podcast Feed
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Barack Obama Vacation Pictures: Brando Island, South Pacific | JetSet – Bravo (blog)
Posted: at 12:11 pm
It would be very hard to miss taking note of the epic vacation life Barack Obama is living since he left office two months ago. Let's recap, shall we? He's been traveling to billionaire Richard Branson's private Necker Island, rocking his hat backward with his feet in the sand and generally straight chillin', kitesurfing like a carefree spring breaker, and basically looking young and happy while making us all very jealous.
Now, he's off to another island paradise where reports say he'll be spending a full month. According to local reports, Obama landed in Tahiti en route to the luxury South Pacific resort known as The Brando.
Well, last year when we told you all about the Brando under the headline, "You've Never Heard of the Remote Island That's Set to Become the Next Celeb Mecca," we weren't kidding. Now the world's most famous island vacationer is setting up shop there for a full month.
Here's the deal with the Brando: Actor and activist Marlon Brando first came to French Polynesia during the filming of Mutiny on the Bounty in the 1960s, and he fell totally in love with the place, just 30 miles northeast of Tahiti. So he bought the tiny private island of Tetiaroa an atoll composed of a dozen small islands surrounding a lagoon, and spent as much time there as possible escaping the Hollywood drama and noise. (Sound somewhat familiar, Barack?)
Now, you can stay there too, on a newly built five-star property with 35 luxury villas and private pools, two-French influenced bars, and restaurants, all while sea turtles and exotic birds keep you company.
If you're considering a trip, you should know that the Brando is actually not that far from Los Angeles, reachable by a short 20-minute flight on a private plane or helicopter after you land in Papeete, just eight hours nonstop from LAX.
While you're there, take an island tour led by Brand's granddaughter, an official guide for the resort. To help carry on her grandfather's legacy, she is working for the Tetiaroa Society, a nonprofit association that takes care of all the guided naturalist tours.
During your stay, you'll also find Michelin-level food: chef Guy Martin of the Michelin-two-starred restaurant Le Grand Vfour in Paris is responsible for the menu at the fine-dining and more casual dining venues on the property. The food is classic French with a Polynesian flair. There's also vegan fare from Chef Kelvin Au-Ieong, chef and owner of Invitation V, Vegan Bistro in Montreal, Quebec.
Some of the island's environmentally friendly practices include sea water air conditioning, which reduces energy demands by 70 percent; solar energy panels along the airstrip which provides hot water to the resort; and a coconut oil power station that provides half of the properties energy needs.
Rates start about $2,000 per night.
-Additional reporting by Carole Dixon
Jet Set is Bravo's launch pad for the most extravagant, luxurious, and unforgettable travel experiences. Ready for takeoff? Then Like us on Facebook to stay connected to our daily updates.
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Life Among The Bruderhof – The American Conservative
Posted: at 12:10 pm
Have you ever heard of the Bruderhof? Its an international movement in the Anabaptist tradition. They are Christians who live in intentional communities 23 of them, on four continents and share their lives and resources in common. Heres an FAQ about them.And here is a more in-depth exploration of those things, in whatcould be titled the Rule of the Bruderhof.The movement was founded in 1920 in Germany, as a Christian response to the horrors of World War I and social injustice. They eventually had to leave Germany because of Nazi persecution.
Late last week, I visited two of their American settlements, Fox Hill and The Mount, both not far from each other, in New Yorks Hudson River Valley (see a list of all the US Bruderhof communities here.) The Bruderhof has been fully engaged with The Benedict Option book (start here to see what they think of it). After spending some time with them, its very easy to see why. The Bruderhof has been living their version of theBenedict Option for almost a century. These two communities are full of grace and hospitality. Before I say anything else, let me encourage you to check out this link telling you where all of the Bruderhof communities are worldwide.Theres nothing like a visit to meet them yourself. This short video gives you an idea of what to expect:
I stayed at Fox Hill, a community of large, multifamily houses and buildings, including a workshop, a primary school, and a chapel/meeting room, spread across rolling farmland.Shortly after arriving from NYC with others for a Ben Op conference there (all off the record, alas), we all gathered with the entire community for a welcome. They sang several hymns. What startled me, and delighted me, was the joyful force with which they sang. Ive never heard anything like it in a Protestant, Catholic, or Orthodox church. It was genuinely inspiring. As with so much I saw there, its not my tradition, and its not one Im particularly drawn to, but its impossible not to admire the Bruderhof.
The Bruderhof folks live radically compared to other Christians. They really do hold all things in common, meaning that nobody receives a paycheck. That requires an unusual degree of trust, obviously, but you also get a lot in return. The community cares for you. They dont let anybody suffer. They dont warehouse their elderly in nursing homes, for example. To join the Bruderhof, you first have to live in a community for at least a year, in a novitiate a time of testing to see if you can live by the rhythms and commitments of the community (monastic orders have this too). They want people to be sure that this life is for them. If, after the novitiate, an adult wants to join, he makes vows in front of the entire community. In general, they are vows of poverty, chastity (including fidelity in marriage), and obedience (here are the particular vows). It would not be stretching it to call them lay monastics.
They have families, but children arent automatically members of the Bruderhof for life. They can go to college if they like, and many do, and they do not have to embrace Bruderhof life if they dont feel a calling to it. I talked to one man who said that he had been raised in the Bruderhof, but left it for a while. After some time, feeling far away from his own, he sold all his possessions and bought a train ticket back to a Bruderhofsettlement. Now, hes happily married. I still have my train ticket, he told me, saying it was one of the best decisions he ever made.
I dont think I had any particular expectations about what I would see at Fox Hill and The Mount, but I can tell you this: its not like M. Night Shymalans The Village. You may laugh at that, but I swear, so many people seem to think that if you live in any kind of Christian community that separates itself to a meaningful degree from the world, youre bound to turn into a freakfest. The Bruderhof people are so blessedly normal. If anybody finds them freaky, that is a judgment on that person, not on these Anabaptists. If what they have is freaky, then the world needs a lot more freaks.
The most amazing thing to an outsiders eyes well, this outsiders eyes are the Bruderhofs kids. None of them walk around with their eyes glued to screens. They dont have that shifty, unsettled look that so many kids do. They look grounded and happy. They actually play outside, and do chores, and talk to each other. Every single one of these kids I talked to spoke to me politely and with confidence, even though I was a stranger to them. They seem so mature and grounded. Thats the thing that has lingered on my mind since coming home: the witness of the Bruderhof children. Everybody wants to have boys and girls who are like that, but so few of us are willing to make the sacrifices that those parents do to raise them.
Someone in the community there told me that the Fox Hill Bruderhof used to send its teenagers to the local public high school, but they had to pull them out because the moraleffects on their kids was destructive. In 2012, the movement bought a massive seminary built in 1907 on the banks of the Hudson by the Redemptorist order of Catholic priests. By the time the Bruderhof entered the picture, the building was in bad shape, and was home to only four elderly Redemptorists. The Anabaptists bought it and renovated it as both a high school for their community (and some kids outside the community), and as living quarters for a large number of families. Its called The Mount, and I visited it.
Heres a photo I took of the building:
Its enormous! It stopped me in my tracks to imagine that there was a time in US Catholic history when a religious order felt confident enough in its future to erect a building longer than a football field, to educate its priests. And now it is home to a colony of Anabaptists, of all people! You just dont know the way history is going to flow, do you? The Bruderhof folks have been respectful of The Mounts Catholic heritage, and have left its chapel largely intact. It struck me that its a great blessing that this building, which was erected to form missionaries for the Gospel, was not sold to some hotel chain, but is forming new and very different missionaries for the Gospel.
I had dinner with a Mount family, and we talked about what the Bruderhof has to offer the rest of the Christian world in the Benedict Option. If you write about us, said my host, please write that we dont seek imitation, but rather are trying to be an inspiration. He explained that theirs is just one way to live out the Gospel in a radical way. If they have something to offer others, then theyre happy to share freely. They are seeking to get to know believers from other traditions, to share friendship, and to figure out if its possible for us to support each other?
What do I think the Bruderhof have to offer the rest of us?
First, the idea that this kind of life is possible, even today. They do live separate lives, but they arent strict separatists. For example, they invite their neighbors outside the community to come over for a common meal on Saturday nights. The members all work in the community, but they do go out into the world. Again, they sent their kids to the public high school, until they concluded that the moral culture had degraded so much that it was too risky to subject their kids to it. They didnt have an objection in principle to public school, but when it reached the point of interfering with the life they believe God has called them to live, they pulled out, and started figuring out how to do something better. All Christians can admire the sacrifices they were willing to make for their kids.
Second, the example of their children. I had just spent a good part of the week talking to different people out in the world about how damaged kids today are by constant exposure to electronic media, as well as by the deforming aspects of popular culture. These kids are the polar opposite from that! They are wholesome, because they were raised by a community that was determined to raise them in a wholesome environment. You can tell it. Boy, can you ever. I was up for 6:30 am breakfast on Saturday, after which I had to go to LaGuardia for the flight home. It was 15 degrees outside. The oldest boy in the family finished breakfast and went to join other boys in cleaning the communitys cars on this cold, cold morning. The other kids prepared for their Saturday chores (e.g., the girls were going to be helping their mother clean the house). I heard not a single complaint, or the least bit of whining. They just did it, and did it not out of fear or anything like that, but because, well, thats just what you do at the Bruderhof to make our community work.
Again: if this is freaky, the world needs a lot more freaky.
Third, confident outreach to other Christians. They can do this because they know who they are and what they believe and theyre not mad about it.Nobody tried to talk me into becoming an Anabaptist. The only conversations I had were along the lines of, Now, tell me what you Orthodox do when you worship? and How can we be your friends and your servants? Just straightforward, plain dealing, in charity and a spirit of service. We need more of that.
Fourth, the value of simplicity. Anabaptists are very, very simple in their piety and worship. They dont really have a liturgy. As an Orthodox Christian, I am their polar opposite when it comes to liturgy and ecclesiology, but Ill say this for them: these are not people who are given over to innovation and trendiness in worship. Even though I was there for only a short time, I could discern how the Bruderhof weaves worship into all of life, and thus makes their entire existence a simple but effective liturgy of life.
Fifth, demolishing the concept of compartmentalization.For the Bruderhof, there is no separation between religion and life. You live your faith wholly, not just on Sundays. Its supposed to be like that for all of us believers, but we so often fail at it. The Bruderhof has created social structures, customs, and institutions that make this easier to do.
Its not hard to find material online criticizing the Bruderhof, written by ex-members. I wouldnt claim that they are perfect, ever, and certainly wouldnt make that claim after a very short visit. ButI came away from my visit there inspired, not only by the Bruderhof itself, but by the possibilities of life and ecumenical cooperation in the Benedict Option.
One last image: as I was touring the primary school on Friday morning, I poked my head into the room where toddlers are watched. I saw a little boy sprawled out on the lap of a Bruderhof woman, who cradled him in her arms.
Oh, that beautiful child, I said. Hes sleeping.
No, said my guide. He has cerebral palsy.
That child abides in the cradle of a community that loves him and his parents.That child abides in grace and light.
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The Benedict Option and the Way of Exchange – First Things
Posted: at 12:10 pm
Surely there has never been a richer and more deeply faithful model of Christian faith and practice than that offered by the leaders of the Church in Roman Cappadocia in the fourth and fifth centuries. Think of Basil the Great, exhorting the rich of Caesarea to empty their barns to feed the poor, building hospitals for the sick, upholding Trinitarian orthodoxy against the Arians, teaching young Christians the right uses of pagan literature. And Basil was only one among many great ones, even in his own neighborhood: His sister Macrina, his brother Gregory of Nyssa, his friend Gregory of Nazianzus, were all titans of faith and charity, and built a thoroughgoing Christian culture the likes of which the Church has rarely if ever seen.
In 1974, when the great bishop-theologian Lesslie Newbigin retired from his decades of labor in the Church of South India, he and his wife decided to make their way back to their native England by whatever kind of transportation was locally available, taking their time, seeing parts of the world that most Europeans never think of: from Chennai to Birmingham by bus. Newbigin would later write in his autobiography, Unfinished Agenda, that everywhere they went, even in the most unlikely places, they found Christian communitieswith one exception. Cappadocia, once the nursery of Christian theology, was the only place in our whole trip where we had to have our Sunday worship by ourselves, for there was no other Christian to be found.
If the complete destruction of a powerful and beautiful Christian culture could happen in Cappadocia, it can happen anywhere, and to acknowledge that possibility is mere realism, not a refusal of Christian hope. One refuses Christian hope by denying that Jesus Christ will come again in glory to judge the living and the dead, not by saying that Christianity can disappear from a particular place at a particular time.
Therefore, to argue, as many have, that the argument Rod Dreher makes in The Benedict Option is despairing, and hopeless, and a failure to trust in the Lord Jesus, is a category error. It takes a set of sociological and historical judgments and treats them as though they were metaphysical assertions. Anyone in Roman Cappadocia who had said that the culture Basil and his colleagues had built was not bound to last until the Lord returns would not have been deficient in Christian hope. Rather, he or she would have been offering a useful reminder of the vagaries of history, to which even the most faithful Christians are subject. Drehers argument in The Benedict Option may be wrong, but if so, it is wrong historically and prudentially, not metaphysically.
So the whole debate over The Benedict Option needs to be brought down out of the absolutist clouds and grounded in more historical particularities. However, and alas, this is something that neither Dreher nor his opponents seem inclined to do. Almost every party to this dispute seems to be painting with the broadest brushes they can get their hands on. Thus Dreher: It is time for all Christians to pull their children out of the public school system. All of them? Without exception? No room for familial discernment and prudential judgment? And from the other side, heres the verdict of one of Drehers more thoughtful critics, Elizabeth Bruenig: Building communities of virtue is fine, but withdrawing from conventional politics is difficult to parse with Christs command that we love our neighbors. We cant love our neighbor without voting? The hospice-care worker who is too busy and tired to get to the polling place is deficient in charity? Such an argument would seem to delegitimate most monastic ways of life, which makes it an odd position for a Catholic of some traditionalist sympathies, like Bruenig, to make.
Bruenigs position flows from her deployment of one massive categorical assumption: that we (that is, all of us who participate in this debate) are liberal subjects in a democratic order. Drehers position flows from his deployment of an even larger categorical assumption: that we are all residents of the West during its final decline. Each of these governing categories is far, far too coarse to have either diagnostic or prescriptive value. I want to suggest a model for thinking about the matters raised by Drehers book that is less sweeping in its assumptions than the ones supporters and critics of the Benedict Option alike tend to employ.
I begin with St. Pauls long discourse in 1 Corinthians 12 about the many members of Body of Christ and their complex interrelationship. These members have widely varying functions, but every member should be treated by the others as having value and dignity. Indeed, the Apostle says, those members whom the world thinks of as having the least dignity should be considered by the rest of the body as having the greatest. And no member may under any circumstances say to any other, I have no need of you. St. Pauls argument here has long been foundational to the Churchs understanding of, for instance, the via activa and via contemplativa. By the standards of the world, contemplatives are useless, unproductive, and indifferent to real-life concerns, which is precisely why the Church, when it is healthy-minded, values them so highly. And the material resources generated by those who are active in the world make it possible for contemplatives to live as they do, a boon for which contemplatives at their best are always grateful. At the highest level of Christian devotion, these people who live radically different lives practice what Charles Williams called the Way of Exchange: dying each others life, living each others death.
I think this principle can and should be applied not just at the level of individual choice but in broader social and communal categories as well. Christian parents who teach their children at home should be grateful that other Christian parents are helping their children to bear witness in public schools. Indeed, these members of the Body should make a point of praying for and encouraging each other: The parents and children alike can learn from, and be enriched by, one anothers experiences. This can only happen if each sideif we must think in terms of sides; better perhaps to continue to speak of members, organsif each member assumes the integrity of the others. Those parents whose children attend public schools must resist the temptation to scorn homeschoolers as fearfully insular; homeschoolers must resist the temptation to belittle public-school parents as worldly and indifferent to their childrens spiritual welfare. Similarly, those who are engaged for distinctively Christian reasons in political activism should be grateful for those who may never have voted in their lives but who pray daily for the peace and flourishing of the city, and who should return the gratitude.
What I have just sketched is the mutual charitygrounded in the recognition that the Body of Christ is so complex that it will inevitably have many members pursuing many different primary goodswhich in turn provides the only proper foundation for addressing, as we must, the larger questions of balance in the life of the church. For it is certainly possible, indeed likely, that at any given moment, and in any given place, some of the bodys members will be hypertrophied as others suffer atrophy. These conditions are locally variable, and the accuracy with which sound judgments can be made will decrease dramatically with distancea vital fact rarely acknowledged by those who prescribe how others should raise their children, or how deeply those others should be involved in electoral politics. This local variability also makes it difficult to speak of the condition of the West in terms that will help any given Christian better understand the demands and decisions that he or she must face each waking day. Despite the best homogenizing efforts of technocratic modernity, the West is not the same in Paris, France and Paris, Texas, or in Athens, Greece and Athens, Georgia.
None of these observations should be construed as a counsel of relativism. Some Christians do behave unwisely, raise their children badly, fail to invest as fully as they should in their communities, and so on. But sound judgments are hard to make from a distance. When my son attended public school, some people told my wife and me that we were unwise to let this happen; when we started teaching him at home, other people shook their heads in disapproval at our change of course. Only those who knew us well understand our reasons for both decisions. We would all be wise to spend considerable time comparing notes with one another before we pronounce any confident verdicts.
The sociologist James Davison Hunter has rightly said that Christians in general should strive for faithful presence in the public world, and there are, sad to say, multiple ways to fail at this task. One can spend so much time focusing on ones faithfulness that one forgets to be present, or be sufficiently content with mere presence that one forgets the challenge of genuine faithfulness. It is also possible to conceive of presence too narrowly: again, I would contend that the hermit who prays ceaselessly for peace and justice is present in the world to an extent that few of the rest of us will ever achieve. But that said, and all my other caveats registered, I suspect that if American Christians have a general inclination, it is towards thinking that presence itself is sufficient, which causes us to neglect the difficult disciplines of genuine Christian faithfulness. This is certainly what the work of Christian Smith and his sociological colleagueson which Dreher relies heavilysuggests.
And that is reason enough to applaud Drehers presentation of the Benedict Option, because his portraits of intentional communities of disciplined Christian faith, thought, and practice provide a useful mirror in which the rest of us can better discern the lineaments of our own lives. A similar challenge comes to us through Charles Marshs 2005 book The Beloved Community, which presents equally intentional and equally Christian communities, though ones motivated largely by the desperate need in this country for racial reconciliation. To look at such bold endeavors in communal focus, purpose, and integrity is to risk being shamed by their witness.
If we are willing to take that risk, we might learn a few things, not all of them consoling, about ourselves and our practices of faith. And our own daily habits are where the rubber meets the road, not in abstractions about liberal subjects and the decline of the West. Reducing the scope of the questions Dreher raises to the ambit of the local and personal could have the additional positive effect of lowering the stakes of the debate, which, in part because it has been conducted at the level of competing world-historical metanarratives, has far too often been reduced to charges and counter-charges of bad faith and unworthy motivation. (Hannah Arendt commented in The Origins of Totalitarianism that the self-perceived superiority of the Communist revolutionary elite consists in their ability immediately to dissolve every statement of fact into a declaration of purpose. If you dont see the True Path of History, then the only question is what mental or moral deficiency blinds you to the obvious. Too many comments on The Benedict Option, pro and con, have consisted of similar declarations about other peoples purposes, leaving matters of fact by the wayside.)
So my chief counsel, when considering the proposals made in The Benedict Option, is to think locally and act locally, too, with the understanding that if other peoples motives may be impure, so too, surely, are your own. Even if you are properly and firmly confident that in the end all shall be well and all manner of thing shall be well, you probably have certain temperamental inclinations that will make it difficult for you to assess your own condition accurately.
The theological virtue of hopesituated, as Thomas Aquinas taught, midway between the vices of despair and presumptionhas its everyday and practical counterpart, too, which should not be confused with it but which has a similar emotional tone. It is possible to despair unnecessarily over local conditions, to fail to discern possibilities that are actually there; and it is possible to be presumptuous about them as well, assuming that nothing really bad can happen. (Surely there were Cappadocian Christians who were guilty of that.) Which of those tendencies you are prone to is something you can know only through self-examination, but self-examination in the company of other Christians who are sufficiently different that they can see things about yourself that you cant. This mutual teaching and learning is part of the ongoing work of the Body of Christ, the body that is also an intricately interconnected ecosystem of communities and practices.
In the meantime, if you are a Christian who is called to life in the midst, in the world, you would do well to find ways to turn regularly inward, towards the traditional ways and means of the Christian faith by which you may regularly renew yourself, lest you end up being not just in the world but also of it. And if you are called to a community of virtue, you would do well to find ways to face outward, towards mission, towards the saeculum for the salvation of whose people Christ came. An intentional Christian community is not a sacrament, but is like the sacraments insofar as it hopes to be an outward and visible sign of an inner and invisible grace. To that degree that hope is realized such a community exists, or should exist, in the words of Fr. Alexander Schmemann, for the life of the world. And it can have that quasi-sacramental efficacy only if it knows itself to be related by Blood to those still fully in the world, who will, if they know what theyre about, reflect from time to time on those oddball groups of believers who just may be learning something of great value that is mostly hidden from the rest of us.
Alan Jacobs is distinguished professor of the humanities at Baylor University.
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