oil prices fell the most in any January in 29 years on pandemic fears; natural gas prices hit a 4 year low, February’s gas contract expired at its lowest ever; gasoline supplies were at a record high; natural gas rigs were at 39 month low..
oil prices fell for a fourth consecutive week this past week as confirmed cases of coronavirus increased tenfold and the death toll averaged a doubling every other day, prompting the World Health Organization to declare a global health emergency, and leading the Trump administration to impose travel bans on 13 countries, shaking economic growth forecasts...after falling every day last week on pandemic fears and ending 7.4% lower at $54.19 a barrel, the benchmark price of US light sweet crude for March delivery opened lower again on Monday and tumbled more than $2 to three month lows as China’s deadly coronavirus crippled the county's economy and threatened to upend global energy demand, with oil thus trading in bear market territory after having fallen more than 20% from its April high of $66.60, before it pared the day's losses to finish down $1.05 at $53.14 a barrel...oil opened lower as the virus continued to spread on Tuesday, but prices turned positive after OPEC sources told Reuters they were inclined to extend their production cuts at least through June, and would discuss deeper cuts if need be, with US crude ending up 34 cents at $53.48 a barrel...prices opened higher Wednesday after the API's report of a drawdown of US crude inventories, and then briefly spiked after Yemen's Houthis claimed a missile attack on a Saudi Aramco facility and an oil tanker was reported burning in the Persian Gulf, but got hammered back down after the EIA reported that U.S. crude stockpiles rose more than expected on a big refinery slowdown, and ended the session 15 cents lower at $53.33 a barrel...oil prices continued lower on rising virus fears Thursday and ended down $1.19 near a 6 month low of $52.14 a barrel, after the WHO declared that coronavirus is a public health emergency of international concern...oil prices jumped early on Friday as traders were encouraged that the WHO came out against travel and trade restrictions in declaring the global health emergency, but tumbled back into the red after Goldman Sachs and others said the outbreak was likely to shave points off China’s economic growth and could also drag the U.S. economy lower, and ended the session down 58 cents at $51.56 a barrel...oil prices were thus down 4.9% on the week and down 16% for the month of January, the worst start to a year since 1991...
natural gas prices also ended lower, but not as dramatically as in recent weeks...after falling 5.5% to a life-of-contract low of $1.895 per mmBTU on technical selling and bearish weather forecasts last week, the price of natural gas for February delivery edged up nine-tenths of a cent on Monday and then rose 3.2 cents on Tuesday, as a tighter balance between supply and demand supported prices, despite warmer trends in the weather models...but February natural gas gave all those gains back and then some as the warm forecasts persisted Wednesday and the February contract fell 5.7 cents to expire at $1.877 per mmBTU, a four year low for natural gas and the lowest price ever for February gas...meanwhile, the contract price of natural gas for March delivery, which had opened the week priced at $1.91 per mmBTU, fell 4.3 cents to a new all time low of 1.865 per mmBTU for that contract.....March gas then fell 3.6 more cents on Thursday to yet another life-of-contract low, despite a withdrawal in excess of 200 billion cubic feet from natural gas storage...natural gas prices then edged up 1.2 cents on Friday to end the week at $1.841 per mmBTU, a drop of 2.8% from the prior week's close, and a 1.6% week over week decline for the March gas contract price..
the natural gas storage report on the week ending January 24th from the EIA indicated that the quantity of natural gas held in storage in the US fell by 201 billion cubic feet to 2,746 billion cubic feet by the end of the week, which left our gas supplies 524 billion cubic feet, or 23.6% higher than the 2,222 billion cubic feet that were in storage on January 24th of last year, and 193 billion cubic feet, or 7.3% above the five-year average of 2,553 billion cubic feet of natural gas that has been in storage as of the 24th of January in recent years....the 201 billion cubic feet that were withdrawn from US natural gas storage this week was a bit less than the average forecast for a 207 billion cubic feet withdrawal by analysts surveyed by S&P Global Platts, but it was somewhat more than the 171 billion cubic feet withdrawal reported during the corresponding week of last year, and well more than the average 134 billion cubic feet of natural gas that have been pulled from natural gas storage during the third full week of January over the past 5 years....
The Latest US Oil Supply and Disposition Data from the EIA
US oil data from the US Energy Information Administration for the week ending January 24th showed that because of a big pullback in our oil refining and a modest increase in our oil imports, we had surplus oil to add to our stored commercial supplies, in this case for the twelfth time in the past twenty weeks....our imports of crude oil rose by an average of 229,000 barrels per day to an average of 6,660,000 barrels per day, after falling by an average of 120,000 barrels per day during the prior week, while our exports of crude oil rose by an average of 95,000 barrels per day to 3,509,000 barrels per day during the week, which meant that our effective trade in oil worked out to a net import average of 3,151,000 barrels of per day during the week ending January 24th, 134,000 more barrels per day than the net of our imports minus our exports during the prior week...over the same period, the production of crude oil from US wells was unchanged at 13,000,000 barrels per day, and hence our daily supply of oil from the net of our trade in oil and from well production totaled an average of 16,151,000 barrels per day during this reporting week..
meanwhile, US oil refineries reported they were processing 15,924,000 barrels of crude per day during the week ending January 24th, 933,000 fewer barrels per day than the amount of oil they used during the prior week, while over the same period the EIA's surveys indicated that an average of 507,000 barrels of oil per day were being added to to the supplies of oil stored in the US....hence, this week's crude oil figures from the EIA appear to indicate that our total working supply of oil from net imports and from oilfield production was 279,000 barrels per day less than what what was added to storage plus what our oil refineries reported they used during the week....to account for that disparity between the apparent supply of oil and the apparent disposition of it, the EIA just inserted a (+279,000) barrel per day figure onto line 13 of the weekly U.S. Petroleum Balance Sheet to make the reported data for the daily supply of oil and the consumption of it balance out, essentially a fudge factor that they label in their footnotes as "unaccounted for crude oil", thus suggesting an error or errors of that magnitude in one or more of the oil supply & demand figures we have just transcribed... (for more on how this weekly oil data is gathered, and the possible reasons for that "unaccounted for" oil, see this EIA explainer)....
further details from the weekly Petroleum Status Report (pdf) indicated that the 4 week average of our oil imports rose to an average of 6,594,000 barrels per day last week, still 13.9% less than the 7,662,000 barrel per day average that we were importing over the same four-week period last year....the 507,000 barrel per day net addition to our total crude inventories was all added to our commercially available stocks of crude oil, while the quantity of oil stored in our Strategic Petroleum Reserve was unchanged....this week's crude oil production was reported to be unchanged at a record 13,000,000 barrels per day because the rounded estimate of the output from wells in the lower 48 states was unchanged at a record 12,500,000 barrels per day, while Alaska's oil production at 484,000 barrels per day still added the same rounded 500,000 barrels per day to the rounded national total....last year's US crude oil production for the week ending January 25th was rounded to 11,900,000 barrels per day, so this reporting week's rounded oil production figure was 9.2% above that of a year ago, and 54.2% more than the interim low of 8,428,000 barrels per day that US oil production fell to during the last week of June of 2016...
meanwhile, US oil refineries were operating at 87.2% of their capacity in using 15,924,000 barrels of crude per day during the week ending January 24th, down from 90.5% of capacity the prior week, and quite a bit below the recent average refinery capacity utilization for the third full week of January...as a result, the 15,924,000 barrels per day of oil that were refined this week were 3.3% below the 16,463,000 barrels of crude that were being processed daily during the week ending January 25th, 2019, when US refineries were operating at 90.1% of capacity....
with the big drop in the amount of oil being refined, gasoline output from our refineries was also quite a bit lower, decreasing by 377,000 barrels per day to 9,158,000 barrels per day during the week ending January 24th, after our refineries' gasoline output had increased by 254,000 barrels per day over the prior week...after this week's decrease in gasoline output, our gasoline production was 7.5% lower than the 9,904,000 barrels of gasoline that were being produced daily over the same week of last year....on the other hand, our refineries' production of distillate fuels (diesel fuel and heat oil) managed an increase of 25,000 barrels per day to 4,954,000 barrels per day, after our distillates output had decreased by 251,000 barrels per day over the prior week...but after this week's small increase in distillates output, our distillates' production for the week was still 0.7% below the 5,019,000 barrels of distillates per day that were being produced during the week ending January 25th, 2018....
even with the decrease in our gasoline production, our supply of gasoline in storage at the end of the week increased for the twelfth week in a row and for the 18th time in 32 weeks, rising by 1,202,000 barrels to another all time high of 261,235,000 barrels during the week ending January 24th, after our gasoline supplies had increased by 1,745,000 barrels to a record high over the prior week....our gasoline supplies increased this week despite the drop in production because our exports of gasoline fell by 160,000 barrels per day to 649,000 barrels per day, while our imports of gasoline fell by 20,000 barrels per day to 543,000 barrels per day and while the amount of gasoline supplied to US markets increased by 131,000 barrels per day to 8,793,000 barrels per day...after this week's increase, our gasoline supplies were 1.5% higher than last January 25th's gasoline inventories of 257,380,000 barrels, and rose to roughly 5% above the five year average of our gasoline supplies for this time of the year, which historically has been the annual peak...
since our gasoline inventories have now hit record highs on two consecutive weeks, we'll include a graph of their historical levels to show you why that's really nothing to get excited about...
the above graph shows our supplies of gasoline in storage in thousands of barrels at the end of each week over the past twenty years, and it was copied from the EIA html spreadsheet showing gasoline inventories over their historical records...what you should be able to observe here even with this poor graphic is that gasoline supplies have gradually been increasing over that entire history in an irregular pattern, being drawn down over each summer as gasoline consumption is at its highest, and then rebuilding thru the early winter months, when many consumers are curtailing their unnecessary driving...hence, gasoline supplies always reach their high for the year in late January or early February (before the annual refinery blend change-over and maintenance season), and by virtue of a continually rising trend line, often hit a record high at the same time...and that's what happened again this year; last week's gasoline inventories beat the record that was set in January 2019 by a small fraction, and this week's supplies just topped last week's new record by another small fraction..
meanwhile, with the decrease in our distillates production, our supplies of distillate fuels decreased for the 12th time in 18 weeks and for 27th time in the past 43 weeks, falling by 1,289,000 barrels to 144,747,000 barrels during the week ending January 24th, after our distillates supplies had decreased by 1,185,000 barrels over the prior week....our distillates supplies fell again this week even though the amount of distillates supplied to US markets, an indicator of our domestic demand, fell by 488,000 barrels per day to 3,901,000 barrels per day, because our exports of distillates rose by 329,000 barrels per day to 1,383,000 barrels per day, and because our imports of distillates fell by 189,000 barrels per day to 122,000 barrels per day....even after this week's decrease, our distillate supplies were still 2.5% more than the 141,270,000 barrels of distillates that we had stored on January 25th, 2018, but also slipped to about 3% below the five year average of distillates stocks for this time of the year...
finally, with refinery oil demand falling and imports rising, our commercial supplies of crude oil in storage rose for the fifteenth time in thirty-two weeks and for the thirtieth time in 52 weeks, increasing by 3,548,000 barrels, from 428,106,000 barrels on January 17th to 431,654,000 barrels on January 24th...even after that increase, our crude oil inventories remained roughly 2% below the five-year average of crude oil supplies for this time of year, but rose to more than 35% higher than the prior 5 year (2009 - 2013) average of crude oil stocks after the third full week of January, with the disparity between those comparisons arising because it wasn't until early 2015 that our oil inventories first rose above 400 million barrels....even though our crude oil inventories had generally been rising over the past year, except for during the past summer, after generally falling until then through most of the prior year and a half, our oil supplies as of January 24th were 3.2% below the 445,944,000 barrels of oil we had stored on January 25th of 2018, while still 3.2% above the 418,359,000 barrels of oil that we had in storage on January 26th of 2017, while at the same time fell to 12.8% below the 494,762,000 barrels of oil we had in commercial storage on January 27th of 2016...
This Week's Rig Count
the US rig count decreased for the 20th time in the past 24 weeks during the week ending January 31st, and is now down by more than 27% from the last rig count of 2018...Baker Hughes reported that the total count of rotary rigs running in the US decreased by 4 rigs to 790 rigs this past week, which was also down by 255 rigs from the 1045 rigs that were in use as of the February 1st report of 2019, and 1,139 fewer rigs than the shale era high of 1,929 drilling rigs that were deployed on November 21st of 2014, the week before OPEC began to flood the global oil market in an attempt to put US shale out of business...
the number of rigs drilling for oil decreased by 1 rig to 675 oil rigs this week, which was also 172 fewer oil rigs than were running a year ago, and much less than the recent high of 1609 rigs that were drilling for oil on October 10th, 2014....at the same time, the number of drilling rigs targeting natural gas bearing formations fell by three to 112 natural gas rigs, the fewest natural gas rigs deployed since October 21st 2016, and hence a 39 month low for natural gas drilling, down by 86 gas rigs from the 198 natural gas rigs that were drilling a year ago, and way down from the modern era high of 1,606 rigs targeting natural gas that were deployed on September 7th, 2008...in addition to the rigs drilling for oil & gas, three rigs classified as 'miscellaneous' continued to drill this week; one on the big island of Hawaii, one in Washoe County, Nevada, and one in Lake County, California, compared to a year ago, when there were no such "miscellaneous" rigs deployed..
offshore drilling activity in the Gulf of Mexico was unchanged at 21 rigs this week, but that was as the last rig that had been drilling offshore from Texas was shut down\ while another rig concurrently began drilling in Louisiana waters...the Gulf of Mexico count is still up by 2 from a year ago, when 19 rigs were drilling offshore from Louisiana and none were operating in Texas waters...and since there are no rigs deployed off other US shores elsewhere at this time, nor were there a year ago, the current Gulf of Mexico rig count as well as that of last year is the same as the national total in both cases..
the count of active horizontal drilling rigs was up by 1 rig to 711 horizontal rigs this week, the highest horizontal rig count since November 1st of last year, but still 214 fewer horizontal rigs than the 932 horizontal rigs that were in use in the US on February 1st of last year, and also well down from the record of 1372 horizontal rigs that were deployed on November 21st of 2014....on the other hand, the directional rig count was down by 2 rigs to 45 directional rigs this week, and those were also down by 12 from the 57 directional rigs that were operating during the same week of last year....at the same time, the vertical rig count was down by 3 rigs to 35 vertical rigs this week, and those were down by 29 from the 63 vertical rigs that were in use on February 1st of 2019...
the details on this week's changes in drilling activity by state and by major shale basin are shown in our screenshot below of that part of the rig count summary pdf from Baker Hughes that gives us those changes...the first table below shows weekly and year over year rig count changes for the major oil & gas producing states, and the table below that shows the weekly and year over year rig count changes for the major US geological oil and gas basins...in both tables, the first column shows the active rig count as of January 31st, the second column shows the change in the number of working rigs between last week's count (January 24th) and this week's (January 31st) count, the third column shows last week's January 24th active rig count, the 4th column shows the change between the number of rigs running on Friday and the number running before the same weekend of a year ago, and the 5th column shows the number of rigs that were drilling at the end of that reporting week a year ago, which in this week’s case was the 1st of February, 2019...
the Permian basin shows a one rig increase this week because while one rig was pulled out of Texas Oil District 8, or the core Permian Delaware and another rig was pulled out of Texas Oil District 7B, which includes the farthest east counties of the Permian Midland, three rigs were added in Texas Oil District 8A, or the northern Permian Midland...elsewhere in Texas, 2 rigs were added in Texas Oil District 1, which must account for the Eagle Ford basin increase, because the rig count in Texas Oil District 2 was unchanged, while 2 rigs were pulled out of Texas Oil District 3, and another rig was pulled out of Texas Oil District 4...those are districts that could include Eagle Ford rigs, but in this case two of those removals were more likely conventional rigs or directional drilling into other nearby basins...likewise, the area encompassing by the Haynesville shale includes one rig pulled out of Texas Oil District 6, and two rigs pulled out of northern Louisiana, so one of those three rigs was not targeting the Haynesville... however, the Texas Oil District 6 rig count plus the northern Louisiana rig count now adds up to 41 rigs, so all of the rigs remaining in that region are targeting the Haynesville shale...and those Haynesville rigs account for two of this week's natural gas rig removals, while the other natural gas rig retirement was pulled out of a basin not tracked separately by Baker Hughes, which could have been any of the unidentified removals in Texas or Louisiana we have just discussed...
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Hearing on Ohio bill to limit protest ends in — what else? — protest - The Columbus Dispatch - State troopers were called to clear protesters in the Statehouse upset over a bill that would limit protests. The chairman of an Ohio legislative committee told a packed room Wednesday that he wouldn’t allow spoken testimony on a bill that most in the audience believe is intended to stifle protest. Unsurprisingly, the matter ended in loud protest. The House Public Utilities Committee approved, largely along party lines, Senate Bill 33, a measure that supporters say is intended to protect from vandalism and other attacks “critical infrastructure” — energy pipelines, coal mines, power plants and the like. Critics, however, say it’s an industry-funded measure intended to intimidate people and the groups they’re associated with from protesting projects they believe are harmful. The bill is fashioned after model legislation promoted by the American Legislative Exchange Council, a group funded in part by energy companies such as Findlay-based Marathon Petroleum Corp. and Koch Industries. Ten states so far have enacted similar laws, starting in the wake of 2016′s protests of the Dakota Access Pipeline in North Dakota to which Ohio State Highway Patrol troopers were dispatched. It would make it a first-degree misdemeanor to “knowingly enter or remain on” pipeline rights of way even when they’re on public land or when protesters have property owners’ permission to be there. It also would make it a third-degree felony to “knowingly destroy or improperly tamper with” a pipeline or other critical infrastructure. But its supporters in October wouldn’t define “tamper.” Further, the bill would subject groups to which people committing such felonies belong to fines of up to $100,000 — an amount that could devastate nonprofit environmental groups and churches, the bill’s critics say. “It’s meant to intimidate nonprofits and it’s meant to intimidate us into not using our voice,” said the Rev. Marian E. Stewart of the First Unitarian Universalist Church of Columbus. Listen to the latest Buckeye Forum politics podcast: In the run-up to Wednesday’s hearing, the seventh on the bill, 45 people filed written testimony on Senate Bill 33. They were all opposed to the measure.
Kinder Morgan Inc Shares Sold by Strs Ohio – Strs (State Teachers Retirement System) Ohio trimmed its holdings in Kinder Morgan Inc by 5.3% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,327,296 shares of the pipeline company’s stock after selling 74,099 shares during the quarter. Strs Ohio owned 0.06% of Kinder Morgan worth $28,098,000 as of its most recent filing with the Securities and Exchange Commission. Kinder Morgan, Inc operates as an energy infrastructure company in North America. The company operates through Natural Gas Pipelines, Products Pipelines, Terminals, and CO2 segments. The Natural Gas Pipelines segment owns and operates interstate and intrastate natural gas pipeline and storage systems; natural gas and crude oil gathering systems, and natural gas processing and treating facilities; natural gas liquids (NGL) fractionation facilities and transportation systems; and liquefied natural gas facilities.
Strs Ohio Has $166.44 Million Holdings in Chevron Co. - Strs Ohio lessened its stake in Chevron Co. by 4.8% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,381,114 shares of the oil and gas company’s stock after selling 69,365 shares during the quarter. Chevron comprises approximately 0.7% of Strs Ohio’s investment portfolio, making the stock its 22nd biggest holding. Strs Ohio owned approximately 0.07% of Chevron worth $166,438,000 as of its most recent SEC filing. Chevron last announced its quarterly earnings results on Friday, November 1st. The oil and gas company reported $1.36 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.47 by ($0.11). Chevron had a net margin of 8.70% and a return on equity of 8.89%. The company had revenue of $36.12 billion during the quarter, compared to the consensus estimate of $37.69 billion. During the same period in the previous year, the firm posted $2.11 EPS. The business’s quarterly revenue was down 17.9% compared to the same quarter last year. As a group, analysts predict that Chevron Co. will post 6.37 EPS for the current fiscal year.
YFD Battalion Chief speaks on fracking dangers at YSU - (WKBN) – A Youngstown Fire Battalion Chief was part of a speaking event at YSU Saturday afternoon. Senior Battalion Chief Sil Caggiano spoke on the potential hazard crews face when responding to gas and oil wells.Science journalist Justin Nobel presented years of research on fracking. Those findings were recently published in an issue of Rolling Stone Magazine. .Caggiano says in Mahoning County there are two wells that pose a risk.“We’ve got at least two wells in Mahoning County that we know of that are testing three hundred times over the acceptable limits, so these things are just stuff we’re just starting to discover as we dig further and further and peel the onion of this thing back, and we’re starting to discover this stuff,” said Caggiano.Caggiano has served the citizens of Youngstown and Mahoning County for over 37 years. He has been working to increase the safety of handling hazardous materials nationwide.
Writer warns of radioactive hazards of oil and gas work - Martins Ferry Times Leader — A Rolling Stone writer was joined by an expert in the field for a community discussion on the hazards posed to workers and communities by the often-overlooked hazard of radiation associated with oil and gas work. Justin Nobel, a freelance science journalist, said he spent 20 months working on the story“America’s Radioactive Secret,” uncovering the impact of radioactive material in extracted oil and gas, as well as the lingering contamination of the equipment used to extract the material and transport it. Nobel was joined Friday evening at Ohio University Eastern’s Shannon Hall by scientist Julie Weatherington-Rice, who has spent decades studying the fields of geology and soil science. Weatherington-Rice recounted a time in the 1960s in Morrel County, north of Columbus, Ohio, when oil and gas development was just beginning. She said lack of oversight of the oil and gas companies took a toll on the communities. “It was the wild west,” she said. “No regulations. They were buying family cemetery plots and putting rigs up. They were putting rigs on townhouse lanes. … Everybody’s plants were turning brown from the salt. In 1986, the state of Ohio said they were going to ‘do something’ about the companies, make them more responsible, get rules into place, allow for local zoning, and the (Ohio Department of Natural Resources) tried to stop it, saying the legislature didn’t know anything about it, so they wouldn’t stop it.” Weatherington-Rice also touched on the radioactivity of materials such as barium and uranium in the earth, and the time it takes those materials to decay — often thousands to billions of years. “It’s the gift that keeps on giving,” she said. . Nobel and Weatherington-Rice both stressed that the radioactive material present pose a threat both to communities where oil and gas are extracted and to the workers who interact on a more personal level. “What came up in the reporting, what the first line of concern is, is really the workers,” Nobel said. “Workers are not receiving proper protection. The brine trucks that we see all the time are not just carrying water, as some workers are told. They’re carrying a substance that has toxic salts, toxic heavy metals, and naturally occurring radioactivity, through the element radium. What I found in the report is that there’s enough radium in one Marcellus brine truck to appropriately be labeled a radioactive hazard. That means the driver doesn’t know what they’re carrying — if it were labeled appropriately, that driver would need hazmat training and couldn’t go on certain roads, by schools, by reservoirs …\
Investigation: Oil and Gas Workers Exposed to Radioactivity from Fracking Waste - Journalist Justin Nobel was trying to wrap his head around fracking and gas development in the Marcellus and Utica shale in Pennsylvania and Ohio. So he spent two weeks on the ground, learning from residents and activists in the region. At the end of his trip, a community organizer happened to mention something about radioactivity in the waste produced from gas development. That was two years ago. Nobel’s investigative piece, “America’s Radioactive Secret,” about the dangers of radioactive oil and gas waste was published recently in Rolling Stone. The piece focuses on worker and community safety and health concerns over the wastewater that comes up out of oil and gas wells and the regulatory black hole that puts people at risk. Justin Nobel talked with The Allegheny Front’s Kara Holsopple about his story in this bonus episode of our podcast:
The Oil Industry's Radioactive Secret - “All oil-field workers are radiation workers.” That quote comes from a blockbuster investigation by Justin Nobel writing in Rolling Stone, who has spent more than a year and a half researching and reporting on radioactivity in fracking waste.When a well is drilled, it produces a ton of brine, a salty substance that comes out of the ground. Shale wells can produce as much as ten times more brine than they do oil and gas. While hydrocarbons prove to be useful, the brine needs to be hauled somewhere for disposal. Often it is reinjected into disposal wells, or, in some cases it is sent to water treatment plants.The problem is that the brine can be radioactive. As Nobel writes in Rolling Stone, radioactive brine may be dramatically increasing the cancer risk for people who come in contact with it. The workers who handle the waste are most obviously at risk. But there are plenty of others. The brine is used for de-icing roads, so municipalities are essentially spreading radioactivity all over roads in various parts of the country.Old oilfield equipment is also repurposed. Rolling Stone spoke with a Louisiana inspector who saw a child sitting on a fence that was so radioactive that someone might receive a full year’s radiation dose in a single hour.The oil and gas industry dismisses the risk of radioactivity in the brine, which is naturally occurring, as not something that anybody should be worrying about. However, some of the experts that Nobel interviewed argue otherwise.First of all, the notion that just because something exists naturally in the world somehow makes it benign, is odd.“Arsenic is completely natural, but you probably wouldn’t let me put arsenic in your school lunch,” one nuclear-forensics scientist told Rolling Stone. Second, the industry is barley regulated, if at all, when it comes to handling radioactive substances. Officials at EPA and the Nuclear Regulatory Commission sounded perplexed when Nobel presented questions to them about the risk, each indicating that they were not responsible for regulating radioactivity in the oil and gas industry. Nobel profiled several people who have come in contact with brine and have suffered from an array of worrying health problems. This is not just an environmental story or a public health story, but it could also be a financial one. This is a whole aspect of the oil and gas industry that is mostly unregulated, underreported and largely unknown to the public. And it could yet turn into a massive liability for the industry if local, state or the federal government ever decided to get serious about it.
Local Residents Take Cracker Plant Concerns to Columbus — Some concerned area residents met with representatives of the Ohio Environmental Protection Agency and Gov. Mike DeWine to express concerns about an ethane cracker plant proposed for Belmont County.The project, being considered by PTT Global Chemical America and Daelim Industrial Co. Ltd., would use the ethane contained in the local natural gas stream to make plastic. If the plant is constructed, it would be located at the former site of FirstEnergy’s R.E. Burger coal-fired electric generating station at Dilles Bottom, south of Shadyside along the Ohio River.“The facility has been issued water pollution discharge permits by the OEPA despite concerns about pollution in the Ohio River, which more than 5 million people depend on for clean drinking water,” the group wrote in a news release distributed after the meeting. “The OEPA issued these permits without testing existing levels of toxic chemicals in the Ohio River, leaving the public in the dark about additional pollution from the proposed facility. Recent testing by the Environmental Working Group has revealed that both Cincinnati and Columbus already have dangerous levels of ‘forever chemicals’ like PFAS in their drinking water.”Group members pointed out that DeWine has met with PTTGCA officials but thus far has not met in person with concerned residents. The group presented the OEPA and governor’s staff with letters Wednesday that lay out their concerns and requests.“One goal of our meeting with Governor DeWine’s staff today was to directly ask the Governor to pull his support of the PTTG ethane cracker plant proposed for Belmont County,” said Bridgeport resident Bev Reed. “As a Belmont County citizen and young person, I feel deeply that investing in more fossil fuel extraction and plastics right at the moment in time when we should be divesting from both is a terrible mistake. Governor DeWine should represent his constituents in Ohio rather than major overseas corporations and pull his support of this project.” DeWine’s office declined to comment on the meeting, deferring to the OEPA.
Edgeworth council approves restrictions on natural gas development - Every municipality in the Commonwealth of Pennsylvania must provide for hydraulic fracturing, or fracking, within its borders. While there are no known plans for a fracking operation in the small, highly-developed borough of Edgeworth, residents have voiced concerns about the lack of an adequate location for any future equipment.As the practice of fracking becomes more widespread in Pennsylvania, municipalities like Edgeworth have taken steps to preemptively update their zoning ordinances to account for the activity. After holding a public hearing Jan. 21, Edgeworth council voted unanimously to amend the borough’s zoning ordinance relating to oil and gas resources development after receiving feedback from residents.“We already had an ordinance in place, but we had been approached by some residents who wanted us to make sure we had some extra provisions for health, safety and welfare,” Borough Manager John Schwend said.Edgeworth is about 1.7 square miles and largely residential. The borough’s new zoning ordinance provides for gas resources development as a conditional use in the C-1 and C-2 commercial districts that run along the length of the borough between Route 65 and the Ohio River. Gas resources development was previously permitted as a special exception in the C-1 district, borough code shows.In an interview, Hugh St. Martin, an Edgeworth resident who attended the Jan. 21 hearing, expressed concern about the proximity of the bustling commercial district to residential areas. He noted a contradiction between the state constitution – which guarantees residents the right to clean air and water – and the minimum setback requirement. Multiple scientific studies have found an association between proximity to fracking sites and adverse health impacts. One 2014 survey of residents in Washington County, conducted by researchers from Yale, found that residents living near gas facilities were more likely to develop health issues like headaches and nosebleeds. Incidents of health problems doubled for residents living within two kilometers (or roughly one and one-quarter miles) of a gas well.
'Rule of capture' applies to fracked wells: Pa. Supreme Court — The Supreme Court of Pennsylvania said oil and natural gas coming from shale wells drilled and hydraulically fractured are protected by the common "rule of capture," but left open the possibility that neighbors to a fracked well could claim trespassing if fissures opened by fracking extended onto their land. The ruling brought a quiet sigh of relief to Pennsylvania's shale gas drillers. Under the rule of capture, oil and gas that flow into a well are the property of the well owner, regardless of how those molecules got there. Had the court ruled that fracked wells illegally pull in a neighbor's gas, the entire land and lease assumptions of the shale gas industry that produces 19.6 Bcf/d from state wells would be called into question."The risk of complex litigation may lead to a vast reduction of development activities throughout the commonwealth," the Marcellus Shale Coalition, a trade group for the state's shale gas industry, said in its April 2018 amicus brief on the appeal to the state Supreme Court. "Developers who use hydraulic fracturing may rely on pressure differentials to drain oil and gas from under another's property, at least in the absence of a physical invasion," the court said in an opinion issued Wednesday. The case, Southwestern Energy Co. v. Briggs, arose when the Briggs family, whose Susquehanna County farm is adjacent to a Southwestern well, sued in November 2015, claiming that by virtue of fracking, Southwestern was draining gas from their property as well as trespassing on their land, presuming that any shale fractures extended into the shale beneath their farm. After the county common pleas court issued a summary judgment in favor of Southwestern, the Briggs family appealed and the state's Superior Court found that hydraulically fractured wells were different from conventional vertical wells because they artificially create and stimulate the flow of gas molecules (Superior Court of Pennsylvania No. 1351 MDA 2017). Southwestern appealed that ruling to the state Supreme Court.The Supreme Court said the appeals court erred in assuming a distinction between artificial and natural well construction techniques, noting that all oil and gas drilling is an artificial imposition on the land. The appeals court also erred in assuming without evidence that because a well is fracked, fissures extend outside the boundary of the driller's leasehold, the high court said (Supreme Court of Pennsylvania 63 MAP 2018).
Falling natural gas prices batter National Fuel - Tumbling natural gas prices are putting a hurt on National Fuel Gas Co. The Amherst-based energy company's first-quarter profits fell by 16% and warned that its profits this year will be about 12% lower than it forecast in October. With natural gas prices falling and expected to drop even further, National Fuel said it is further scaling back its natural gas drilling operations in western and central Pennsylvania, cutting spending on its drilling program by about $100 million from a year ago and dropping to a single drilling rig beginning this summer, down from three rigs a year ago. "We remain steadfast in our commitment to the responsible development of our integrated Appalachian asset base, with responsible capital allocation at the heart of our financial decisions." Those decisions center largely around the continued decline in the price of natural gas produced in from its Pennsylvania drilling territory. Natural gas prices dropped by 11% during the first quarter and the company projects that they will fall by about 14% this year. A lack of available pipeline capacity in the drilling region is causing natural gas produced there to sell for less than the national spot market prices. Even with its reduced drilling, National Fuel still expects its oil and gas production to rise by about 14% during the current fiscal year as the company brings wells now being drilled online.
US natural gas futures fall to four years lows - US natural gas futures fell to their lowest in almost four years on Wednesday on forecasts for milder weather through mid February than earlier expected. On its last day as the front-month, gas futures for February delivery on the New York Mercantile Exchange fell 5.7 cents, or 2.9%, to settle at $1.877 per million British thermal units (mmBtu), their lowest close since March 2016.The March future, which will soon be the front-month, lost about 4 cents to $1.865 per mmBtu. “With the rollover to the March contract, the weather influence will further diminish and the possibility of a sustained cold spell capable of erasing the current supply surplus will be further reduced," Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois, said in a report, noting “we still see appreciably more downside than upside price risk from current levels."Since hitting an eight-month high of $2.905 per mmBtu in early November, futures have collapsed 35%. Record production and mild weather have enabled utilities to leave more gas in storage, making shortages and winter price spikes much less likely.Meteorologists projected the weather in the US Lower 48 states will turn from warmer-than-normal now to mostly colder from Feb. 9-13. That, however, is warmer than Tuesday's outlook, which called for cold from Feb. 5-12. So far, this winter has been milder than usual with average daily temperatures 3 degrees Fahrenheit higher than normal in December and 5 degrees higher in January.Refinitiv projected average demand in the Lower 48 states, including exports, would rise from 120.2 billion cubic feet per day (bcfd) this week to 120.6 bcfd next week. The forecast for next week is lower than Refinitiv's 123.6-bcfd estimate on Tuesday due to an expected drop in heating demand. The amount of gas flowing to US LNG export plants was on track to jump to a record 9.4 bcfd on Wednesday, according to early pipeline flow data from Refinitiv. The US gas industry is counting on LNG exports, which soared 53% in 2018 and 68% in 2019, to remain the biggest driver of future demand growth.
US working natural gas in underground storage decreases by 201 Bcf: EIA — US natural gas working stocks fell by 201 Bcf last week, which marked the first above-average pull of 2020, but futures continued to decline as the heating-demand spike subsided. Storage inventories fell to 2.746 Tcf for the week ended January 24, the US Energy Information Administration reported Thursday morning. The pull was less than an S&P Global Platts' survey of analysts calling for a 207 Bcf draw. The withdrawal was more than the 171 Bcf pull reported during the corresponding week in 2019 as well as the five-year average draw of 143 Bcf, according to EIA data. Stocks were 524 Bcf, or 23.6%, more than the year-ago level of 2.222 Tcf and 193 Bcf, or 7.6%, more than the five-year average of 2.553 Tcf. Cold weather moved across the central and eastern US for the week ended January 24, driving residential and commercial demand to the highest weekly average so far of the winter season, according to S&P Global Platts Analytics. Total demand increased by 17.6 Bcf/d to an average of 124.1 Bcf/d as the Northeast region contributed more than half of the gains. Temperatures in both the Northeast and the Southeast fell by 17 degrees from the average a week earlier, boosting total demand nearly 50% week over week to nearly 32 Bcf/d overall, up from 21.7 Bcf/d. Even with demand hitting its highest level of the season last week, the weakening of prices at NYMEX has continued unabated. Both the February and March contracts have traded in the sub-$2/MMBtu range since January 17, and look to be testing new lows as the February contract settled Wednesday at $1.88/MMBtu, only 1 cent higher than where March, now the prompt month, opened Thursday. A slightly smaller-than-expected withdrawal pushed March lower by 3 cents to $1.84/MMBtu following the EIA announcement Thursday morning. This also deepens the backwardation in the curve, putting March NYMEX at a more than 10-cent discount to May, for example, with each month sequentially valued higher all the way through August. A forecast by S&P Global Platts Analytics' supply and demand model calls for a much lesser draw of 115 Bcf for the week ending January 31, which would add to the surplus. Total demand is 12 Bcf/d lower week over week to average 112.1 Bcf/d, as temperatures warmed in the Midwest and Northeast US, driving declines in residential and commercial demand. However, LNG feedgas demand continues to inch higher, reaching an average of nearly 9.2 Bcf/d in spite of weak netbacks worldwide for US LNG exports. Upstream, US supplies are down by 1.4 Bcf/d, due to a large decline in LNG sendout, down 1 Bcf/d, and a smaller drop in net Canadian imports, down 0.3 Bcf/d. Both are mainly due to the warmer weather across the eastern half of the US.
'We can't live like this': residents say a corrupt pipeline project is making them sick - A community in Pennsylvania says clay-colored water appeared during a drilling mud spill, but the pipeline company insists it’s not to blame. The Tarrs, who moved into their spacious detached home in semi-ruralPennsylvania last April, have relied upon bottled water and family generosity since June, when their crystalline tap water first turned murky.Since then, they’ve spent more than $32,000 on new equipment, lab tests, bottled water, repairing pipes and parts damaged by the turbid water. It still isn’t safe, and they don’t know why. “It’s sad and frustrating, I can’t bathe my daughter, wash my hands or do a load of laundry, it’s like living in constant crisis. We’re not the only ones in this situation, but we feel so alone,” said Erica Tarr, 31, a paediatric nurse. The clay-colored water appeared around the time of a drilling mud spill at a nearby construction site for the Mariner East 2 (ME2) pipeline – a beleaguered multi-billion dollar project transporting volatile natural gas liquids from the shale fields of eastern Ohio and western Pennsylvania to an export facility in Delaware county, ready to ship to Europe to manufacture plastics. The ME2 horizontal directional drilling (HDD) project – which is subject to multiple criminal and regulatory investigations – hascontaminated surface and groundwater sources in hundreds of mud spills, and created sinkholes in parks, roads and backyards since construction began in early 2017. HDD drilling is particularly susceptible to spills known as inadvertent returns, in which lubricating mud erupts through weak spots in the rock.But as the Tarrs’ tap water became increasingly turbid and the pressure plummeted, the pipeline company Sunoco Logistics, a subsidiary of Texas-based Energy Transfer LP, insisted the project was not to blame. So, in October they installed a sophisticated filter system and drilled a new well in their picturesque wooded backyard, a couple of hundred meters from the worksite. The water seemed fine for a few days. But then it started smelling strongly of nail polish and burned Erica’s mouth when she brushed her teeth. Lab results detected toluene and MTBE – volatile organic compounds found in fuel.
Magistrate finds pipeline opponents guilty in trespass case that exposes tensions between residents and pipeline construction | StateImpact Pennsylvania - A Chester County district magistrate judge found two pipeline opponents guilty of summary trespass and disorderly conduct in a case the defendants say illustrates ongoing intimidation by private security hired to guard Energy Transfer’s Mariner East construction sites. Magistrate judge John Bailey found Mark Clatterbuck guilty of trespass, and his wife Malinda guilty of disorderly conduct Tuesday, ordering them each to pay a $100 fine plus court costs. The charges relate to an incident that occurred in mid-December when Uwchlan Township resident Carrie Gross was showing the Lancaster couple a Mariner East 2 pipeline construction site on Devon Drive in the township. Gross and the Clatterbucks say they complied when a security guard asked them to leave the sidewalk in front of the site. They were surprised to be pulled over by Uwchlan Township police after driving away. The security guard, Charles Hall, had called 911 to report a group of trespassers. Uwchlan Township police officer Philip Owen charged Mark Clatterbuck with trespassing, and arrested Malinda Clatterbuck when she got out of the car to film her husband’s arrest. She was charged with disorderly conduct. “The security guards are just intimidating people,” Malinda Clatterbuck said. “We did nothing wrong. We just walked away when he told us to. And the court upholds the lies of the industry to intimidate us.” Those who live along the pipeline path say the tactic has been used repeatedly by the pipeline company: call local police and report trespassing on easements that run through backyards, parks and roads in densely populated Chester and Delaware counties. In December, the Chester County district attorney went after Energy Transfer’s security team, charging members with bribery in illegally hiring state constables to guard construction sites while carrying badges and guns. On the 911 call, Crystle said, Charles Hall told the dispatcher he worked for Energy Transfer, but on the stand, Hall told the court he worked for the construction company.
Lawsuits ensnare energy giant, threaten projects -- Thursday, January 30, 2020 -- Energy Transfer Partners is in the crosshairs of trial attorneys who say an FBI investigation into approval of one of its pipelines points to fraud. Will the legal fight thwart plans for some of the nation's well-known energy projects?
U.S. FERC sides with PennEast natgas pipeline NJ eminent domain case - - The U.S. Federal Energy Regulatory Commission on Thursday supported the view of companies developing the $1 billion PennEast natural gas pipeline that they can use federal eminent domain to gain access to properties owned by New Jersey. PennEast sought the FERC decision after the U.S. Court of Appeals for the Third Circuit ruled in September that the company could not use federal eminent domain to condemn land controlled by the state. FERC in January 2018 approved PennEast’s request to build the pipeline from Pennsylvania to New Jersey, and the company promptly sued in federal court under the U.S. Natural Gas Act to use the federal government’s eminent domain power to gain access to properties along the route. New Jersey opposed construction of the pipeline and did not consent to PennEast’s condemnation suits on properties the state owns or in which it has an interest. PennEast needs the land to build its 120-mile (190-km) pipeline, which is designed to deliver 1.1 billion cubic feet per day of gas from the Marcellus shale formation in Pennsylvania to customers in Pennsylvania and New Jersey. One billion cubic feet is enough gas to supply about 5 million U.S. homes for one day.
Stymied in N.J., PennEast proposes building gas pipeline only into Lehigh Valley for now - With approvals being held up in New Jersey, PennEast Pipeline Co. LLC announced plans Thursday for construction terminating in the Lehigh Valley for now.The consortium of natural gas companies behind the proposal has been working since August 2014 to get permits for a 120-mile, 36-inch-diameter underground line. It would originate near Pennsylvania’s Marcellus Shale gas-producing region in Dallas, Luzerne County, and end at Transco’s pipeline interconnection near Pennington, Mercer County, in New Jersey.PennEast now says it is looking for Federal Energy Regulatory Commission approval to break the project into two phases. Phase One would consist of 68 miles of 36-inch pipe, constructed entirely within Pennsylvania and ready to carry natural gas by November 2021. Phase Two would complete the route through Northampton County and New Jersey, with a targeted completion of 2023. FERC on Jan. 18, 2018, gave PennEast two years to build the pipeline. The company earlier this month asked the agency for a two-year extension on that approval into 2022. The pipeline is planned to serve exclusively domestic customers, rather than for export, PennEast has maintained. Under the phased approach, PennEast says it would have three delivery points within Pennsylvania, tying in to UGI Utilities Inc.'s system to serve the Blue Mountain Ski Resort and new interconnections with Columbia Gas and Adelphia Gateway.
Now Trump administration would like to see bankrupt Philadelphia refinery kept open - The bankrupt Philadelphia Energy Solutions oil-refinery complex, where fuels have been produced for 150 years, is not dead yet. Even the White House has become involved in efforts to maintain the site as a petroleum processing facility. Industrial Realty Group, the spurned bidder for the company that shut down after a devastating June fire, has teamed up with former refinery chief executive Philip Rinaldi to try to upstage a bankruptcy court sale to rival Hilco Redevelopment. Hilco’s bid in a recent bankruptcy auction was $25 million less than IRG’s, but Hilco was selected as the winner, according to a court filing. “We think we offer a superior solution from every single aspect that you can think of,” Rinaldi, whose company is called Philadelphia Energy Industries, said in an interview Tuesday. “We think it’s a better solution for the estate. It’s a better solution for Philadelphia. It’s a better solution for the region.” Rinaldi and labor union leaders have pressed Peter Navarro, the assistant to the president for trade and manufacturing policy, to put the Trump administration’s weight behind a bid to keep the 335,000-barrel-per-day refinery operating. They argue that more than a thousand jobs and national security interests would be affected by the closure of the East Coast’s largest oil refinery and make the Northeast too dependent upon fuel imports. It’s unclear what type of influence the White House could bring to bear on a bankruptcy process that is scheduled to be decided at a Feb. 6 confirmation hearing in Wilmington. But the union leaders suggested the administration might send a signal to the bidders, who will eventually require approval from the U.S. Environmental Protection Agency to either operate a refinery or to clean up the heavily contaminated site for a new occupant. “The EPA would have to get involved -- it’s going to take millions upon millions of dollars to clean the place up,” said Jim Snell, business manager of Steamfitters Local 420 and one of four labor leaders who met Thursday with Navarro.
Newly revealed restrictions challenge redevelopment of bankrupt Philly refinery’s land - Advocates for restoring the Philadelphia Energy Solutions complex in South Philadelphia as an oil refinery say the 1,300-acre property comes with legal restrictions that inhibit its reuse as anything unrelated to energy or chemical production, complicating the property’s potential bankruptcy sale to an industrial redeveloper. A deed restriction on the properties, included as part of a previous sale, provides that the land can be used only for commercial or industrial activity. The language specifically excludes schools, nursing homes, residential-style facilities, and “publicly accessible recreation areas,” which some community activists had hoped would replace refining operations. Another deed restriction appears to even more narrowly circumscribe potential uses of the property by limiting disturbances of its soil, which is seriously contaminated after 150 years of oil processing. The deed language provides that “disturbance of the subsurface strata and soils of the premises shall be avoided,” except as may be necessary when constructing and developing improvements to the refinery, or “installing new operations, business or processes at the refinery that are related to the refinery business, the energy industry generally and the chemical industry.”
Fighting the Fossil Fuel Economy in Appalachia - About 30 miles outside of Pittsburgh, along the Ohio River, lies one of the largest active construction projects in the United States. Dozens of cranes dominate the more-than-300-acre site, where hundreds of construction workers assemble a massive petrochemical facility set to convert natural gas into plastic pellets used to develop a range of products from plastic bottles to car parts. The ethane cracker plant being developed in Monaca, Pennsylvania, by Royal Dutch Shell is one of at least five currently under construction or being planned throughout Appalachia’s Ohio River Valley, where the petrochemical industry is beginning to expand from its base along Louisiana’s Gulf Coast (grimly known as “Cancer Alley”).Thousands of fracking wells drilled throughout Pennsylvania and West Virginia since 2012 have driven growth in natural-gas production in the Appalachian region.. Pennsylvania state lawmakers offered Royal Dutch Shell nearly $1.7 billion in over a 25-year period to construct the plant in Pennsylvania, with job creation and economic opportunity as a driving argument in favor of its construction. Though the fracked-gas industry’s supporters have extolled the economic prosperity the plant is projected to bring to the region, signs are already showing those promises are falling far short. Many jobs aren’t going to locals and residents are left to suffer from the pollution created by these industries. A Green New Deal would provide the resources to develop sustainable economic infrastructure, from energy infrastructure to resources to develop and sustain clean manufacturing, without destroying the environment. Despite the myth that the petrochemical industry creates jobs, the reality is quite different. The southwest region of Pennsylvania has continued to face a steady population decline throughout the fracked-gas boom. Republicans often credited the industry with providing over 200,000 jobs in the state, but in 2015, the state’s department of labor stated that roughly 160,000 of those jobs had been erroneously attributed to the industry. By contrast, there are currently more than 90,000 clean-energy jobs in Pennsylvania, growing at a rate five times faster than the state’s overall employment rate. Even so, the state’s incentives and goals for clean energy continue to lag far behind the rest of the U.S. Building Shell’s Monaca cracker plant has brought around 6,000 temporary construction jobs to the region, though only an estimated 600 permanent jobs will be created once the plant goes into operation. Rather than using local steel, the project is utilizing imported steel, mostly from China. What the plant will bring to the region is more carbon emissions. An estimated 1,000 active fracking wells are required to operate the plant at any given moment once production fully beginsin the early 2020s. The annual carbon emissions from the plant would effectively eliminate the gains from carbon emissions reductions the city of Pittsburgh plans to make by 2030. The plant is little more than a last-ditch effort to squeeze profit out of an industry that is destined to become obsolete in favor of green, sustainable technologies.
W.Va. committee votes for tax credit for natural gas storage hub— In the hopes of bringing a natural gas liquids storage hub to West Virginia, the West Virginia House of Delegates Energy Committee passed a tax credit for the natural gas industry on Tuesday. House Bill 4421, sponsored by Del. Eric Householder, R-Berkeley and chairman of the Finance Committee, would give tax credits against personal income tax or corporate net income tax to natural gas liquids storers or natural gas liquids transporters. Lawmakers critiqued the vagueness of the fiscal note, and then passed an altered version of the bill rending the fiscal note invalid. The original version would have given tax credits to natural gas liquids producers, natural gas liquids storers, natural gas liquids users or natural gas liquids transporters.The fiscal noted had noted that, "numerous businesses use at least one natural gas liquid for general heating purposes or general operation purposes such as fueling forklift vehicles. West Virginia businesses collectively pay more than $400 million each year in local personal property taxes, mainly on machinery, equipment and inventory." In an interview following, Del. Evan Hansen, D-Monongalia, an environmental scientist and a member of the committee who voted against the bill, said that the fiscal note basically meant "this would impact some portion of that $400 million dollars." "The fiscal note didn't have any estimate in terms of how much this would cost the state or local communities so I thought it was irresponsible to vote for something without knowing how much it would cost," he said. "This could potentially be big. It could be in the tens or hundreds of millions of dollars in losses to the state budget." Vivian Stockman, the executive director of OVEC, the Ohio Valley Environmental Coalition, who was present at the meeting, said she walked out "shellshocked and flabbergasted" that no comments abut environmental impact, including impacts on air, water and climate, were made during the meeting. Stockman said the proposed Appalachian Storage and Trading Hub would run along 400 miles or so of the Ohio River, leading to more underground storage of natural gas liquids, six major pipelines, thousands of miles of minor pipelines, cracker plants, and "a huge increase in fracking to supply the feedstock for this petrochemical complex of which the end-product would be plastic." "Worldwide, we have a huge movement against single-use plastic because our seas are choking with it, our bodies – apparently we eat about a credit card's worth of plastic a week," she said. "People are sick from the pollution related to plastic. Plastic's bad for the climate and bad for the water. It's kind of like 'we would prop up a dying industry and give it tax breaks in order to pollute ourselves?'"
Recovery plan proposed for endangered bumble bee involved in pipeline litigation - The U.S. Fish and Wildlife Service has released a draft of a $13.4 million recovery plan designed to secure a stable population of an imperiled bumblebee species that played a key role in a federal appeals court decision that brought construction of the Atlantic Coast Pipeline to a halt 13 months ago. The once-common rusty patched bumblebee could be found in two Canadian provinces and 28 states from Maine to Georgia and across the upper Midwest prior to the 1990s, when the species entered a sharp decline. The bee has since disappeared from 90 percent of the areas in which it was once found, and is now known to exist in small, scattered populations in 13 states, including West Virginia, and one province, according to the U.S. Fish and Wildlife Service. Reasons for the decline are unclear, although contributing factors are believed to include spread of a pathogen carried by domestic bees, use of certain pesticides and herbicides, and climate change. As populations of the bee continued to plummet and become more isolated during the first decade of the current century, scientists determined that the bee was on the brink of extinction, and recommended it be listed for Endangered Species Act protection. In January 2017, the rusty patched bumblebee became the first bee species to make the federal Endangered Species list. Since then, West Virginia and Virginia have been the only states east of Illinois to produce live rusty patched bumblebees in scientific surveys. In a biological opinion allowing the ACP to receive a permit for building the pipeline through West Virginia and western Virginia, the USFWS concluded that populations of the rusty patched bumblebee and three other endangered species in the project area were unlikely to be harmed by pipeline work.
Charge dismissed against Mountain Valley Pipeline opponent - A misdemeanor charge that an opponent obstructed construction of the Mountain Valley Pipeline in Montgomery County was dismissed Thursday. General District Judge Gino Williams ruled that pipeline officials brought the wrong charge against Phillip Flagg during a July 13 encounter in which Flagg secured himself to a concrete structure in the pipeline’s right of way, blocking work for several hours. Flagg was charged with obstructing the free passage of others in a public place. But the easement on which the incident occurred was private property, according to defense attorney Jennifer French of Wytheville. French said she was prepared to make that argument after the prosecution presented evidence Thursday, but Williams dismissed the charge with no prompting. Flagg, 24, of Austin, Texas, is one of more than 50 people charged with trying to block pipeline construction in multiple ways since work on the project began in early 2018. Burying the 303-mile pipeline along steep slopes has caused widespread problems with erosion. Opponents also decry Mountain Valley’s use of eminent domain to obtain land for the project, and say burning natural gas will contribute to climate change. Before the July 13 incident, Flagg spent several months in a tree stand, blocking Mountain Valley crews from cutting trees in the Elliston area. He did not face charges related to the tree-sit, which is continuing a short distance from where he was arrested. “I’m not too proud to admit that the time I spent in the oak simply isn’t enough to stop this pipeline,” Flagg said in a statement released by Appalachians Against Pipelines shortly after his arrest. “Each of us has our piece to contribute — when one person steps up, others will follow.”
Virginia Tech professor seeks to change Mountain Valley Pipeline agenda -Virginia Tech Appalachian studies professor Emily Satterwhite chained herself to a site excavator in protest against Mountain Valley Pipeline construction June 28, 2018, to bring attention to the Appalachian community.“I have always admired the people who have stood up to power (against) corporations,” Satterwhite said. “When the fossil fuel industry announced an expansion into the county — where I live in Appalachia — I knew immediately that it was something I would have to take a stand against.”At dawn, Satterwhite ascended into the morning air on top of Brush Mountain. A 30-foot construction excavator, which was owned by the Mountain Valley Pipeline, became the subject of Satterwhite’s protest where she demonstrated opposition to the project’s presence in Southwest Virginia. Determined to protect her Appalachian community, Satterwhite climbed the imposing structure to act as a physical barrier and delay construction. Satterwhite bound herself to the excavator’s hydraulic piston through a steel lockbox, known as a sleeping dragon, securing her forearms to the structure. “I wanted to block construction,” Satterwhite said. “I chose Brush Mountain because it’s so close to Blacksburg and Virginia Tech as this special, sacred place for us here. When they were using heavy equipment to degrade the ecosystem, I climbed an excavator and locked myself to it at dawn.” According to The Roanoke Times, authorities met Satterwhite with aerial platforms and removed her bonds with a grinder shortly before arresting her for trespassing. Despite legal ramifications, Satterwhite vocalized her and her community’s opinions toward the pipeline. Banners surrounded Satterwhite saying, “Water is Life — we won’t back down,” to encourage the dismissal of the pipeline.
Virginia Attorney General Mark Herring asks Supreme Court to block Atlantic Coast Pipeline - Virginia’s attorney general wants the U.S. Supreme Court to uphold a decision striking down a permit to let the Atlantic Coast Pipeline cross the Appalachian Trail in a brief that also challenges the need for the pipeline. Attorney General Mark Herring filed an amicus brief in the appeal from the Fourth Circuit Court of Appeals that the Supreme Court is slated to hear next month. And he goes beyond the permit question at issue in the appeal to attack outright the $7.8 billion joint venture by Dominion Energy Inc. (NYSE: D), Duke Energy Corp. (NYSE: DUK) and The Southern Co. (NYSE: SO). Herring disputes the pipeline’s claim that “the project is necessary to address an unmet and growing demand for natural gas in Virginia and North Carolina.” “That claim does not withstand scrutiny,” he says. “Indeed, recent analyses indicate that the demand for natural gas will remain flat or decrease for the foreseeable future and can be met with existing infrastructure.” Herring’s brief has been hailed by environmental groups who have argued from the outset that the Federal Energy Regulatory Commission failed in its initial duty years ago to make an independent determination of whether the pipeline is warranted. Greg Buppert of the Environmental Law Center, which represents the groups in the Supreme Court case, says the center’s position is that FERC allowed the partners in the pipeline to contend their demand for additional pipeline capacity simply on the strength of their own utilities contracting to transport gas through it. FERC, he contends, should have looked at other issues, including whether their needs could be met by the Transco Pipeline that already serves North Carolina and Virginia. “This is a duplicative scheme for Duke and Dominion shareholders to make a 15% return on their investment on the backs of their utility rate payers,” he says. Utility customers cannot be charged directly for the cost of building the project. But the utilities will buy the gas with the cost of the pipeline — including the 15% return — built into what they pay for any gas they buy from the pipeline to produce electricity. As a result, Buppert says electricity customers ultimately pay the costs.
Delaware City refinery agrees to pay $70,000 to settle air pollution problems - Delaware environmental regulators announced Monday that the Delaware City Refining Company will pay $70,000 for months of air pollution violations. That includes a February 2019 fire that shut down Del. 9 and Del. 72 for hours and sent more than 6,000 pounds of "various pollutants" into the air, according to a press release from the Department of Natural Resources and Environmental Control.That fire largely included the release of sulfur dioxide and hydrogen sulfide into the air, according to DNREC records. Both chemicals are considered poisonous and can cause a slew of health problems if inhaled, according to the U.S. Environmental Protection Agency. The settlement announced Monday would resolve the refinery's air pollution-related violations that occurred between November 2018 and June 2019.According to DNREC's environmental release notification system, the refinery reported releases of benzene, hydrogen sulfide, fuel oil, crude oil and petroleum in late 2018 and the first half of 2019. Since July 2019, the refinery has reported eight other hazardous releases of sulfur dioxide, propylene, propane and petroleum products, one as recently as Jan. 25.Hydrogen sulfide is a colorless, poisonous and flammable gas that smells like rotten eggs. Acute exposure to the chemical can impact heart rate, blood pressure, the respiratory system and may cause skin irritations, nausea, vomiting, diarrhea, blurred vision, sensitivity to light and neurological effects such as giddiness, irritability and dizziness.In worst cases, exposure can lead to coma or death, according to the National Oceanic and Atmospheric Administration's CAMEO Chemicals database. Sulfur dioxide is a colorless, poisonous, corrosive gas that can have a choking or suffocating odor, according to the CAMEO database. It states the chemical is "very toxic by inhalation and may irritate the eyes and mucous membranes. ... It may cause death or permanent injury after very short exposure to small quantities." People with asthma or heart problems are at greater risk during exposure to these chemicals, according to the EPA.
Demonstrators ask Michigan Gov. Whitmer to shut down Line 5 --Chanting "no oil tunnel," demonstrators gathered outside Gov. Gretchen Whitmer's office on Monday to hand over 14,039 petition signatures, asking her to shut down the Line 5 pipeline that runs beneath the Straits of Mackinac. "I love my beautiful lakes," Jackie Schmitz of Middleville said. " And I don't want to see them poisoned." Organized by the environmental group Oil and Water Don't Mix, more than 50 people walked from the Capitol to the George W. Romney Building, which houses Whitmer's office. Outside the Romney building, they presented a binder full of the petition signatures to Kara Cook, Whitmer's energy and environment policy adviser. Demonstrators gather outside Gov. Gretchen Whitmer's office in downtown in Lansing on Monday, Jan. 27, 2020, to deliver 14,039 petition signatures asking the governor to shut down Line 5.Buy Photo Demonstrators gather outside Gov. Gretchen Whitmer's office in downtown in Lansing on Monday, Jan. 27, 2020, to deliver 14,039 petition signatures asking the governor to shut down Line 5. (Photo: Craig Mauger / The Detroit News) The petition says that instead of "leaving a vulnerable and hazardous oil pipeline operating in the Mackinac Straits for years," Whitmer should "take action now to decommission Line 5." The demonstration occurred two days before Whitmer's second State of the State address on Wednesday. Attorney General Dana Nessel has asked a state court for an order to shut down and decommission Line 5 because its 67-year-old easement is a public nuisance and violates public trust and environmental laws. ADVERTISING Sean McBrearty, Michigan campaign organizer for Clean Water Action, told reporters that the demonstrators are hoping to hear that Whitmer will take the "necessary steps to address climate change" and "shut down" the pipeline. Environmentalists fear a spill from Line 5 in the straits, where the 67-year-old dual span transports up to 540,000 barrels per day of light crude oil and natural gas liquids. Enbridge, which owns the pipeline, is advancing plans to build a tunnel to house the pipeline in the Straits. This month, a Michigan Court of Appeals ruling reaffirmed Enbridge's right to move forward with plans for tunnel construction. BY CHARLES SCHWAB 3 Things to Track In Earnings Season See more → But McBrearty said Monday the "whole pipeline needs to go." "The pipeline crosses over 400 different water crossings in Michigan," McBrearty said. "So a 4.5-mile tunnel is a 4.5-mile Band-Aid on a 645-mile problem."
Commissioners asked how county would react if Line 5 spilled-- If there was an oil spill from Enbridge's Line five pipeline would Cheboygan County be ready to react? That is the question Straits of Mackinac Alliance representative asked at the Cheboygan County Board of Commissioners meeting on Tuesday. If there was a spill in the Straits of Mackinac, oil could spread to Cheboygan County shorelines within 36 hours. The Line 5 pipeline also crosses inland through Indian River. An oil spill would affect the environment, health and economy of Cheboygan County. "Our focus is narrow, it's not dealing with whether or not this pipeline is going to shut down, but unfortunately we're at the tip of the spear,” Straits of Mackinac Alliance representative Roger Gauthier said. “We are the ones who are going to have to react the most and we're the ones who are most likely to incur the most amount of damage." To make sure the county is ready, Gauthier suggested the board take three actions. Address realistic oil spill hazards, secure funding from Enbridge so first responders can get hazardous material equipment and conduct emergency response exercises.
State, Enbridge join forces to defend Line 5 screw anchor permits— A day after Enbridge Energy apologized to the state of Michigan for drilling debris left near Line 5 in the Straits of Mackinac, the state and Canadian pipeline giant joined forces to defend permits for the oil pipeline. In a nearly two-and-half-hour hearing, attorneys for the state and Enbridge argued that current permitting laws only require the Department of Environment, Great Lakes and Energy to assess the damage anchor supports could cause to the actual dirt of the lake bottom and not the overall risk such a construction poses to the Great Lakes. “EGLE is preempted from denying a permit because it might harm the design of an interstate pipeline, that is absolutely correct,” said Assistant Attorney General Daniel Bock, arguing instead that federal agencies had purview over the pipeline’s design. Administrative Law Judge Daniel Pulter said the department appeared to be “putting its head in the sand” and “being over-simplistic” regarding its responsibilities over the dual pipeline. "This is Flint water happening all over again,” Pulter told Bock. “This is a case where the department should be out in front looking at it.” Enbridge and Michigan’s unlikely alliance in the hearing, where Enbridge functioned as an intervenor, comes as Attorney General Dana Nessel is working in Ingham County Circuit Court to shut down Line 5 on the grounds that it is a public nuisance and environmental hazard. Nessel's office supported the defense of the permits in a statement Wednesday, arguing that the pipeline should be anchored as long as it is in the water. "There is no conflict or inconsistency in arguing that Line 5 should be removed as soon as possible –which the AG is trying to do through her lawsuit against Enbridge – and wanting the Line to be as secure as possible while it remains in the water," said Kelly Rossman-McKinney, a spokeswoman for Nessel.
State regulators to hear public comments on Line 3 pipeline project once again | MPR News - State utility regulators are once again preparing to make a decision on the Line 3 oil pipeline replacement project. The Minnesota Public Utilities Commission approved Enbridge Energy's Line 3 project, which would replace the aging oil pipeline that runs across northern Minnesota, in June 2018.But last summer, the Minnesota Court of Appeals ruled that the project first needed a revised environmental study in order to move forward. The court said the project’s original environmental review didn't adequately address the potential impact of a spill in the Lake Superior watershed.On Friday, the PUC will meet in St. Paul to take public comment on the revised study. On Monday, PUC commissioners will decide whether to accept it — and whether they will again approve the controversial project.The new pipeline would replace one of the five Enbridge pipelines that carry oil across northern Minnesota. It has drawn strong opposition from environmental groups, tribal groups and some tribal governments and climate change activists.Enbridge says the project is necessary — that the current Line 3 pipeline has been transporting oil across northern Minnesota from Alberta, Canada, since the 1960s and needs to be replaced. Labor and industry groups support the project for the construction jobs it would create. Local government officials tout the benefits of the tax revenue it would generate for the counties it crosses.But opponents argue that a new pipeline would enable more oil to be transported — and then burned — worsening the effects of climate change. They say they are concerned about the risk of oil spills in a part of Minnesota replete with lakes and rivers.If the project is approved, E nbridge has said it hopes to begin construction later this year. The controversial project has already attracted several legal and other challenges, and more are expected.
Cheniere Energy's 1,000th LNG cargo headed to France - Houston liquefied natural gas company Cheniere Energy hit a milestone 1,000th export shipment of LNG — and the cargo is headed to France. The Norwegian-flagged LNG tanker Hoegh Galleon left the company's Corpus Christi LNG export terminal with the company's 1,00th cargo on Monday morning. Cheniere Energy CEO Jack Fusco told the Houston Chronicle that the tanker is headed to France and that the milestone shipment comes less than four years after the company's first cargo was sent out from Sabine Pass LNG in Louisiana in February 2016. The 1,000 cargoes, he said, carried enough natural gas to power all 7.4 million home in Texas for nearly five years.
Kinder Morgan faces new lawsuit from Hill Country property owners regarding pipeline construction | kvue.com — Several property owners in Texas' Hill Country have filed a new federal lawsuit against Permian Highway Pipeline, LLC; Kinder Morgan Texas Pipeline LLC; and several other companies in an attempt to prevent the Permian Highway Pipeline to be built on their properties.The lawsuit, which was filed on Jan. 24, states four property owners have either declined to sell their claims to the land or sold it due to the defendants' threat of using eminent domain provisions to forcefully purchase the land.According to the lawsuit, the defendants did not actually have the legal authority to use Texas' eminent domain provisions outlined by Chapter 21 of the Texas Property Code since the pipeline in question is an interstate gas pipeline, and therefore under exclusive jurisdiction of the Natural Gas Act.The Natural Gas Act forbids the construction or operation of interstate gas pipelines without a certificate of public convenience and necessity, which is issued by the Federal Energy Regulatory Commission (FERC).The act also limits the use of eminent domain for interstate pipelines to certificate holders, which the lawsuit alleges the defendants did not have. The lawsuit claims that the defendants' use of Texas eminent domain authority deprived, and is depriving, the property owners of rights that are guaranteed by federal law.
Kinder Morgan obtains final pieces of right of way for controversial pipeline - Houston pipeline operator Kinder Morgan says it has obtained rights to the final pieces of land needed to route a controversial natural gas project through the picturesque and environmentally sensitive Texas Hill Country. With the land under its control, Kinder Morgan can build the 430-mile Permian Highway Pipeline, a project to move 2 billion cubic feet of natural gas per day from the Permian Basin of West Texas to the Katy Hub near Houston, the company’s president of natural gas Tom Martin told investors during a Tuesday morning meeting in downtown Houston. “Last week, we announced during our earnings call that we had 99 percent of the right-of-way but now, we’re at 100 percent,” Martin told investors. “We have all the permits, except for the U.S. Army Corps of Engineers permit. But we expect that to come in the very near future.” Plans to build the $2 billion pipeline through Hill Country face stiff opposition from a coalition of landowners, environmentalists, cities, counties and groundwater conservation districts. Opponents plan to file two endangered species lawsuits to stop the project. One of the lawsuits focuses on destruction of habitat of the golden-cheeked warbler, an endangered songbird that makes its home in the forests of the Hill Country. The other focuses on concerns about pollution to the Edwards Aquifer, an underground freshwater reservoir that is home to endangered and threatened species such as the Texas blind salamander, Barton Springs salamander, Austin Blind salamander, San Marcos salamander, fountain darter, Comal Springs dryopid beetle and the Comal Springs riffle beetle. Those lawsuits could be filed as early as Friday, said Jessica Karlsruher, executive director for the Texas Real Estate Advocacy and Defense Coalition, or TREAD Coalition, a landowner group opposing the project. “Municipalities and landowners want to make a point,” Karlsruher said. “The lawsuits are the only course of action they have in the absence of due process for pipeline routes.” Neither the TREAD Coalition nor its members oppose the oil and natural gas industry, but they want to reform state eminent domain laws that favor pipeline companies over landowners, Karlsruher said. The coalition and its allies lost a lawsuit opposing the project on state constitutional grounds in June 2019 but Karlsruher said organization and its members will be lobbying for reforms when the Legislature meets again in 2021. “How Kinder Morgan conducts business in Texas is very un-Texan,” Karlsruher said.
Texas oil well blowout kills 1 worker, injures 3 others (AP) — One worker was killed and three others were injured Wednesday during the blowout of a Central Texas oil well. All four were contractors working at a Chesapeake Energy well site on a county road near Deanville, Texas, 28 miles (45 kilometers) southwest of Bryan, when flames erupted from the wellhead about 3:30 p.m., Chesapeake spokesman Gordon Pennoyer said in an email. A blowout is an eruption of oil or gas from the wellhead that can erupt in flames if there is an ignition source, such as a spark. Pennoyer provided no information on the conditions of the three injured workers, who he said were airlifted to hospitals in Austin and Houston. Emergency responders were still at the scene, including a wild-well control crew, he said.
Texas energy sector declined for 10 straight months in 2019 - The health of the Texas energy sector declined for 10-straight months to close out 2019, even as oil and gas production steadily rose throughout the year, according to a new report from the Texas Alliance of Energy Producers. An index measuring the strength of the Texas oil industry fell by almost 10 percent last year, showing a steady decline, but certainly not on par with the most recent oil bust of 2014-16, or even the shorter downturn in 2008. Last year was defined by weaker oil and gas prices, job losses, plunging rig count and drilling activity, a smaller number of state drilling permits issued, and a dip in well completions through hydraulic fracturing, said Texas energy economist Karr Ingham, who heads the Texas Petro Index.But things could be worse, he cautioned, with crude oil prices languishing in the range of $50-$60 per barrel. Plenty of exploration and production continue in Texas, especially in the Permian Basin. "Unlike the previous two contractions, crude oil prices actually stabilized in 2019, helping to sustain higher levels of E&P activity than would otherwise be the case in a sharply declining price environment, and this helped to sustain industry employment on the operating-producing side of the industry employment ledger," Ingham said. The index is calculated using a variety of industry benchmarks, including oil and gas prices, rig counts, drilling permitting, well completions, production volumes and employment levels, among other factors. The Texas rig count declined by almost 25 percent during the calendar year, but the 2019 average was down only about 10 percent from the 2018 average.
Chevron posts $6.6 billion loss in the fourth quarter - Chevron on Friday posted a $6.6 billion loss in the fourth quarter due to $10.4 billion worth of write-offs related to shale gas production in Appalachia and deep-water projects in the Gulf of Mexico. In December, the company warned that this charge would be $10 billion to $11 billion. Shares slid 3.85% on Friday after the company reported $36.35 billion in revenue for the period, which missed analyst expectations and was down 14% year over year, hurt by weakness in the company's upstream division.Chevron said it earned $1.49 per share excluding items, down from $1.95 per share a year earlier.Here's how the energy giant's results fared on an adjusted basis relative to Wall Street expectations:Adjusted earnings: $1.49 cents per share vs. $1.45 expected by a Refinitiv survey of analystsRevenue: $36.35 billion vs. $38.639 billion expected by RefinitivA year earlier, the company earned $3.7 billion. Total earnings for 2019 slid 80%, to $2.924 billion, compared with $14.824 billion in 2018.Oil-equivalent production at 3.08 million barrels per day was unchanged year over year, although the company said its annual daily production exceeded 3 million barrels per day for the first time.The company's upstream operations in the U.S. lost $7.5 billion in the quarter, down from earnings of $964 million a year earlier. That was primarily due to $8.2 billion in write-offs related to Appalachia and Gulf of Mexico operations, as well as lower crude and natural gas prices.
The Financial Noose Tightens At Denbury Resources - Earlier this year Denbury Resources (DNR) management initiated yet another debt swap that resulted in about $245 million of convertible notes issued. These notes are initially convertible into 370 shares per note with a provision that the board of directors can increase that conversion ratio if the board feels this is in the best interest of the company to do so. Currently the potential dilution is approximately 90 million shares and mandatory conversion can be triggered of the stock price trades for more than $2.43 in any 10 day period of fifteen consecutive trading days. Clearly some financial issues are coming to the fore when a clause like that is part of the convertible bond issue. Management still reports a total principal debt balance of $2.436 billion. While that is lower than the previous year, the working capital deficit expanded to offset a fair amount of the long-term debt decreases. Clearly, the cash flow is not available to pay down the debt. Therefore, shareholders can look forward to more dilution as equity is exchanged periodically to bring the debt levels to a more manageable amount. On December 23, 2019, the company announced that it had sold a 50% working interest in some properties for $50 million and a carried interest in 10 new wells. This will cost the company (initially) about 500 BOED (mostly oil). Furthermore, the company should only receive about a 6.25% royalty interest from the 10 new wells initially until payout. The interest would revert to a 50% interest after payout. In addition the company had earlier announced a voluntary separation plan that will result in a $17 million charge. The company estimates a short payback time for the separation plan. Labor savings can be substantial as long as they do not impair operating activities of the company. Still, all of this taken together points to a company that is increasingly desperate to decrease its debt load. If the company now has cash flow of only $344 million from operating activities at the current time, then there is not much flexibility for lower oil prices in this financial structure.
Cramer sees oil stocks in the 'death knell phase,' says they are the new tobacco - CNBC's Jim Cramer said Friday that he's done with fossil fuel stocks because young investor's concerns about climate change are holding them down.On "Squawk Box," Cramer compared oil and other fossil fuel stocks to the sigma attached to investing in tobacco companies, saying they are in the "death knell phase." He added, "They're tobacco. I think they're tobacco." "I'm done with fossil fuels ... they're just done. We're starting to see divestment all over the world," Cramer said. "You're seeing divestiture by a lot of different funds. It's going to be a parade. It's going to be a parade that says, 'Look, these are tobacco and we're not going to own them.'" Cramer said there are reasons to think that some of the fossil fuel stocks look like attractive buying opportunities, but the desire of money managers and funds to avoid the sector makes him stay away. The "Mad Money" host's comments come a few weeks after BlackRock chiefLarry Fink used his annual letter to the world's biggest companies to warn that climate change will soon cause a "significant reallocation of capital." BlackRock, with more than $7 trillion in assets under management, will put "sustainability at the center of our investment approach," from portfolio construction to launching new investment products that screen fossil fuels, Fink wrote. "Look at BP; it's a solid yield, very good. Look at Chevron; they're buying back $5 billion worth of stock. Nobody cares," Cramer said Friday. "This has to do with new kinds of money managers who frankly just want to appease younger people." Shares of Chevron and Exxon both fell in early trading Friday after announcing quarterly results. Chevron missed revenue expectations and saw its adjusted earnings decline, and Exxon's earnings per share came in below what analysts expected. However, Cramer said that better financial performance for oil companies wouldn't even turn their stocks around.
Exxon at 10-Year Low - It’s almost as if the last decade never happened for investors of Exxon Mobil Corp. shares. Once the gold-standard of Big Oil, the stock closed Monday at its lowest since October 2010, amid a slump in oil prices due to concerns about weak demand coupled with a glut. The S&P 500 also posted its worst one-day decline since October. But for Exxon, which dropped out of the index’s top 10 largest companies by market value for the first time last year, the malaise runs deeper than the state of the crude market. Chief Executive Officer Darren Woods is running a counter-cyclical strategy by investing heavily in new oil and gas assets, at a time when many investors are demanding energy companies improve returns for shareholders. Some shareholders are even demanding a plan to move away from fossil fuels altogether. Exxon is betting on a “windfall of cash” to arrive from its investments sometime in the mid to late 2020s, said Noah Barrett, a Denver-based energy analyst at Janus Henderson, which manages $356 billion. “Right now there’s higher value placed on generating cash flow today.” Exxon is ramping up capital spending to more than $30 billion a year, without a hard ceiling, as it develops offshore oil in Guyana, liquefied natural gas in Mozambique, chemical facilities in China and the U.S. Gulf Coast, as well as a series of refinery upgrades. Woods is convinced the world will need oil and gas for the foreseeable future and sees an opportunity for expansion while competitors shy away from such long-term investments. The short-term cost of those investments is that Exxon can’t fund dividend payouts with cash generated from operations, instead resorting to asset sales and borrowing, according to Jennifer Rowland, an analyst at Edward Jones & Co. Exxon is the “clear outlier” among Big Oil companies on that front, she said. Exxon declined to comment. Exxon’s current challenges stem in large part from flag-planting deals made when commodity prices peaked during the past decade. It spent $35 billion on U.S. shale gas producer XTO Energy Inc. in 2010 when shale oil promised outsize returns. It has invested $16 billion in Canadian oil sands since 2009, only to remove much of those reserves from its books. Former CEO Rex Tillerson’s 2013 exploration pact signed with Russia was caught behind a wall of sanctions and later abandoned.
As Fracking Companies Face Bankruptcy, US Regulators Enable Firms to Duck Cleanup Costs – DeSmog - In over their heads with debt, U.S. shale oil and gas firms are now moving from a boom in fracking to a boom in bankruptcies. This trend of failing finances has the potential for the U.S. public, both at the state and federal levels, to be left on the hook for paying to properly shut down and clean up even more drilling sites. Expect these companies to try reducing their debt through the process of bankruptcy and, like the coal industry, attempting to get out of environmental and employee-related financial obligations. In October, EP Energy — one of the largest oil producers in the Eagle Ford Shale region in Texas — filed for bankruptcybecause the firm couldn't pay back almost $5 billion in debt, making it the largest oil and gas bankruptcy since 2016. EP Energy hasn’t produced a profit since 2014 and Bloomberg reported that the company would need oil to be at “a price closer to $70 per barrel” for EP to be profitable. Oil has not come close to averaging over $70 a barrel since 2014. Despite its financial struggles at current low oil prices, the company plans to continue operating after restructuring and eliminating up to $3 billion in debt. However, EP has not identified any funds that it would be setting aside for well cleanup, which is not unusual for an oil and gas company. In response, as part of the bankruptcy proceedings, the U.S. Department of the Interior filed a document arguing that EPEnergy is still responsible for its obligations to assure the “decommissioning, plugging, and abandonment” of any of theEP Energy wells that are located on leased federal and tribal lands. Ideally, that would mean EP Energy sets aside funds for the proper cleanup and end-of-life processes for its oil and gas wells, which number more than 800 in the Eagle Ford region. However, the federal government hasn't even named a number yet for how much that should be. The federal government is only getting around to assessing EP Energy's potential liabilities once the firm is already in the bankruptcy process, revealing one of the flaws in the current system. Federal and state governments have not been holding fracking companies fully liable for the environmental damage and cleanup costs of their drilling activity.
Potential US fracking ban would have little immediate impact on nationwide oil and gas production - Recent analysis conducted by Rystad Energy suggests that if fracking activity were to be eliminated on federal acreage – in accordance with a stated policy goal of at least one presidential candidate – the result would be a widespread shift of capital from federal to private and state-owned acreage in a bid to replace the lost oil volumes. In other words, a potential fracking ban would likely have little immediate impact on nationwide oil and gas production figures. “Even in the long-term, the impact might be quite negligible as seen from the greater industry perspective,” says Artem Abramov, Head of Shale Research at Rystad Energy. “However, the effects of such a ban could have stronger negative effects on one key shale producing region in particular – the New Mexico portion of the prolific Permian Delaware Basin.” New Mexico has more than half of the most prospective property under federal acreage, in Eddy and Lea counties. While there is federally-owned land across the nation and in each individual state, the distribution is not uniform and is generally more concentrated in the west, especially in the Rockies and along the West Coast. There are 10 states in the US (excluding Alaska and the Gulf of Mexico) with more than 20,000 square miles of land owned by the federal government, of which three states can be viewed as important contributors to domestic hydrocarbon production – Wyoming, New Mexico and Colorado – each of which has between 40,000 and 50,000 square miles of federal land. “New Mexico has the highest relative contribution to activity on federal acreage, where the share of federal lands has been fluctuating at around 60% in recent years. Both Wyoming and North Dakota saw the share of federal acreage, relative to total activity, at close to 25% in the three-year period from 2017 through 2019, whereas horizontal activity on Colorado’s federal land is insignificant,” says Abramov. Oil production from federal lands surpassed 1 million bpd during the summer of 2019, doubling over the most recent two-year period. New Mexico accounted for the largest share of oil production growth in 2018-2019, as shown in the chart above. In North Dakota, federal lands represent only 6% of overall territory, but much of that acreage is concentrated within the core Bakken shale basin; this explains the state’s high contribution of production from federal property. Total gas production on federal lands in the US Lower 48 excluding GoM exhibits a lower growth rate, largely due to the vast gas production base coming from western and central Wyoming. Still, gas production increased by about 50% between the second half of 2016 and the third quarter of 2019. Associated gas output from Delaware New Mexico’s federal acreage was a key growth driver, yet significant additional contributions came from the Utica Shale in Ohio.
Colorado finds 50,000 oil, gas well reports were incomplete, missing - Over two years, more than 50,000 required monthly oil and gas well production reports weren’t turned in or were incomplete, which meant the state of Colorado wasn’t getting a complete picture of the taxes owed by the industry, according to a state audit released Tuesday.The state auditor’s report, which reviewed activities from 2016-18, found that of the 420 operators actively producing oil and gas, 316 of them turned in 1,209 incomplete required monthly well reports and/or failed to submit as many as 50,055 well reports. That matters because the taxes operators pay are based on gross income tied to oil and gas production.The Colorado Oil and Gas Conservation Commission did not verify that oil and gas operators were properly maintaining and calibrating equipment used to measure the accuracy of the reporting of oil and gas production, the audit said.If the COGCC had imposed the maximum $200 daily fine for each well, the state would have received as much as $308 million, the auditor calculated. COGCC Director Jeff Robbins, who took over the agency in 2019, said his staff has started making improvements and implementing the audit’s recommendations.The Revenue Department has also started following through on the audit’s recommendations, spokesman Dan Carr said. He stressed that the COGCC reports aren’t the sole source of information the department uses to determine what taxes are owed. “It’s not what we use to determine gross revenue,” Carr said. Eight of the 11 operators in the audit’s sample did not submit oil and gas withholding statements with their severance tax returns. The statements are used to identify mineral interest owners who haven’t filed severance taxes. The Department of Revenue didn’t always use complete production data when auditing oil and gas severance taxes to verify production amounts reported on tax returns, according to the audit.After exemptions and tax credits are applied, Colorado’s effective severance tax rate is 0.54% on oil and gas, the lowest out of nine states in the region, according to the audit. For coal, the effective rate is 0.62%
Lawsuit planned to stop Idaho-Wyoming natural gas pipeline (AP) — Two environmental groups have given notice they intend to file a lawsuit to stop a proposed underground natural gas pipeline from Idaho to Wyoming the groups say will harm protected grizzly bears and other wildlife. The Alliance for the Wild Rockies and Yellowstone to Uintas Connection sent a required 60-day notice to sue to the U.S. Forest Service and U.S. Fish and Wildlife Service this week. The groups contend the Forest Service’s approval of the pipeline project in November violated the Endangered Species Act. The groups also say the 18-mile (29-kilometer) portion of the 50-mile (80-kilometer) pipeline would cut a corridor through the Caribou-Targhee National Forest and create a road through six Inventoried Roadless Areas. The 2001 Roadless Rule prevents road construction and timber harvest in designated roadless areas, which are typically 5,000 acres (2,000 hectares) or larger. “That means motorized vehicles will use this corridor in perpetuity to maintain and inspect the pipeline and remove vegetation,” said Mike Garrity, executive director of the Alliance for the Wild Rockies. Sarah Wheeler, spokeswoman for the Caribou-Targhee National Forest, said the agency doesn’t comment on pending litigation. About 26 miles (40-kilometers) of the pipeline crosses private land and about 4 miles (6 kilometers) crosses state land. Wyoming-based Lower Valley Energy wants to build the pipeline that would start near Montpelier in southeastern Idaho and run to Afton, Wyoming. The company on its website says it has some 5,000 natural gas customers in Afton. It has been trucking natural gas to the town, but officials say delivery has been unreliable and the town has nearly run out several times.
Two North Dakota oil companies face enforcement actions - The North Dakota Industrial Commission is pursuing multiple enforcement actions against two oil companies with locations in Williams County, the Henry Hill Oil Services Company and Samson Oil and Gas USA. According to the complaint filed with the North Dakota Industrial Commission by the Department of Mineral Resources, Henry Hill Oil Services failed to report a blowout on or about Aug. 25, 2019, that occurred at the Ellis Federal #1-5 SWD well in Williams County. The company also did not properly test blowout prevention equipment as required by state law, and allowed production fluids, including saltwater and drilling mud, to pool on the ground. North Dakota law requires spills to be contained and removed so that they don’t infiltrate the soil. Henry Hill Oil Services reported the spill on Sept. 4, but, according to the complaint, the company willfully under-reported the size of the spill, and has still not responded with the appropriate resources to clean up the spill. The company also did not use a qualified, third-party inspector on at least four occasions during construction of several of its gathering systems. The complaint lists these occasions as May 29 and June 24 at the Billy Batts Gathering System, Aug. 14 at the Micky Gathering System, and Aug. 14 at the Franky Gathering System. Hydrostatic and pneumatic testing documents, required by North Dakota law, have also not been filed, the complaint says. These are listed as the Maston Gathering System, in service November 2017; the Crescent Point Gathering System, in service on or about Dec. 19, 2018; the Hanson Gathering System, in service Jan. 26, 2018; the Sonny Gathering System in service on or about Sept. 18, 2018; the Nine Point Gathering System, in service on or about March 12; the Nine Point Gibbons Gathering System, in service May 21; and the Billy Batts Gathering System, in service on or about June 4, 2019. In all, the company faces potential fines for 20 counts, as well as costs totaling $2,136 for expenses incurred to investigate the matter. The amount of fines will be determined as the enforcement action proceeds, based on responses, or lack thereof, from the company. The complaint against Samson lists a spill at the Kermit 1-13H well in Williams County, where fluids were allowed to pool on the surface of the land and infiltrate the soil.
What's next for the Keystone XL pipeline in South Dakota? (AP) — Plans for construction of the Keystone XL oil sands pipeline inched forward last week with several approvals at both the federal and state levels, but opponents in South Dakota say they haven’t given up on preventing, or at least slowing, the pipeline’s construction. Plans for the $8 billion project have been over a decade in the works. TC Energy, the Canadian company building the pipeline, plans to begin construction in South Dakota in August, according to a court filing in Montana that also spells out planned work in that state and Nebraska. The company plans to move equipment to construction sites starting in February and prep worker accommodation sites in March. After the South Dakota Water Management Board approved five water permits for the pipeline’s construction last week, Sara Rabern, a spokeswoman for TC Energy, said the company does not need any more permits from South Dakota agencies, but is working to “finalize” permits from other authorities. The pipeline would stretch 1,200-miles (1,930-kilometers) from western Canada to Nebraska, where it would connect with other lines that go to Gulf Coast refineries. It would be capable of pumping 830,000 barrels (35 million gallons) of crude oil a day. TC Energy says the project would provide a $3.4 billion boost to the U.S. economy and reduce greenhouse gas emissions from trains that transport oil. Opponents say that burning the tar sands oil will make climate change worse and worry that an oil spill could cause major environmental damage. Legal battles still loom.The Army Corps of Engineers must approve TC Energy’s plans to drill beneath three major rivers along the route, which include the Cheyenne River in South Dakota and the Missouri and Yellowstone rivers in Montana. The approval for TC Energy to cross the Cheyenne River was suspended in August after TC Energy withdrew their notice for the project. The Sierra Club, along with several conservation and landowner groups, is suing the Army Corps of Engineers in federal court in Montana. They argue that the Corps should be more stringent in their requirements for water crossing permits. The South Dakota Water Board’s decision to approve the water permits for construction last week can also be challenged in court. Several opponents who contested the permits have said they’re weighing whether to continue.
U.S. crude oil production efficiency continues year-over-year improvements - U.S. EIA - U.S. oil production from tight formations increased in 2019, accounting for 64% of total U.S. crude oil production. This share grew because of the increasing productivity of new wells that were brought online during 2019. Since 2007, the average first full month of oil production from new wells in regions tracked by the U.S. Energy Information Administration’s (EIA) Drilling Productivity Report (DPR) has increased. The growing initial production rates have helped oil production from tight formations to increase despite the slowdowns in drilling activity when oil prices fell between 2015 and 2016. Since 2017, recovering oil prices and more efficient production from new wells have helped producers cover costs of drilling, production, and the development of new technologies. The average new well in each DPR region produced more oil in 2019 than wells drilled in previous years in those same regions. This trend has persisted for more than 10 consecutive years. More effective drilling techniques, including the increasing prevalence of hydraulic fracturing and horizontal drilling, have helped to increase these initial production rates. In particular, well productivity was improved because of the injection of more proppant during the hydraulic fracturing process and the ability to drill longer horizontal components (also known as laterals) and perforate more stages. Increasing well productivity has supported crude oil production even in years such as 2015, when oil prices fell and rig counts dropped. In 2016, rig counts continued to decline sharply, and total U.S. crude oil production decreased for the first time in 10 years. Fewer wells were drilled; however, those that were drilled were drilled more quickly and located in more productive areas, which led to increasing per-well production.Rig counts have fluctuated throughout 2019 in all DPR regions. The aggregate rig counts declined 16% in the first 11 months of 2019. Despite the decrease in rig count, producers are capable of drilling more efficient wells faster to keep U.S. crude oil production growing.
EIA forecasts U.S. crude oil production will keep growing through 2021, but more slowly -- In the January 2020 update of its Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) forecasts that U.S. crude oil production will average 13.3 million barrels per day (b/d) in 2020, a 9% increase from 2019 production levels, and 13.7 million b/d in 2021, a 3% increase from 2020.U.S. crude oil production growth slows because of a decline in drilling rigs during the past year. EIA expects this trend will continue through most of 2020. Despite the decline in rigs, EIA forecasts production will continue to grow as rig efficiency and well-level productivity rise, offsetting the decline in the number of rigs until drilling activity accelerates in 2021.EIA’s U.S. crude oil production forecast is based on the West Texas Intermediate (WTI) price forecast in the January 2020 STEO, which rises from an average of $57 per barrel (b) in 2019 to an average of $59/b in 2020 and $62/b in 2021. The price forecast is highly uncertain, and any significant divergence of actual prices from the projected price path could change the pace of drilling and new well completion, which would, in turn, affect production.Crude oil production in the Lower 48 states has a relatively short investment and production cycle. Changes in Lower 48 crude oil production typically follow changes in crude oil prices and rig counts with about a four- to six-month lag. Because EIA forecasts WTI prices will decline during the first half of 2020 but begin increasing in the second half of the year and into 2021, EIA forecasts U.S. crude oil production will grow slowly until the end of 2020. Crude oil production in Alaska and the Federal Offshore Gulf of Mexico—which collectively accounted for about 19% of U.S. total crude oil production in 2019—is driven by long-term investment that is typically less sensitive to short-term price movements. Once final data are available, EIA expects the data will show that Lower 48 crude oil production reached its largest annual average volume of 9.9 million b/d, and EIA expects it to increase further by an average of 1.0 million b/d in 2020 and 0.4 million b/d in 2021. EIA forecasts that production from the Federal Offshore Gulf of Mexico will grow by 0.1 million b/d in 2020 to 2.0 million b/d and to remain relatively flat in 2021 because several projects expected to come online in 2021 will not start producing until late in the year and will be offset by declines from other producing fields. Alaska’s crude oil production will remain relatively unchanged at about 0.5 million b/d in both 2020 and 2021. EIA forecasts that Permian crude oil production will average 5.2 million b/d in 2020, an increase of 0.8 million b/d from 2019 production levels. For 2021, the Permian region will produce an average of 5.6 million b/d. EIA forecasts that the Bakken region in North Dakota will be the second-largest growth area in 2020 and 2021, growing by about 0.1 million b/d in each year.
US oil output growth to slow, but peak still over a decade away: EIA - — The US shale oil boom will not burn out, but will spend the next 20 years fading away, the US Energy Information Administration said Wednesday in its latest Annual Energy Outlook. Annual US crude oil output climb to 14 million b/d by 2022, an increase of nearly 7.6 million b/d in a decade, but domestic will then level off, increasing by less than 400,000 b/d over the next decade as operators move to less productive plays and well productivity declines, according to EIA projections in the report. US oil output will begin a slow decline in the mid-2030s, falling another 500,000 b/d over the next decade and declining below 12 million b/d by 2050, EIA said. The projection is the reference case for EIA's production outlook, a forecast in between low and high oil and gas supply cases. In its reference case, EIA forecasts production in the Lower 48 to account for 70% of cumulative domestic output, peaking at 13.84 million b/d in 2032, accounting for 96% of total US output that year. Oil production in Alaska will climb from 480,000 b/d in 2019 to a peak of 910,000 b/d in 2041, due mainly to development of fields in the National Petroleum Reserve–Alaska before 2030 and by the development of fields in the 1002 Section of the Arctic National Wildlife Refuge after 2030, EIA said. The agency said it remains unclear, however, if prices will make exploration and development of ANWR fields economical. EIA said US Gulf of Mexico production will reach a record 2.4 million b/d in 2026, due to deepwater discoveries of oil and natural gas resources. "Many of these discoveries occurred during exploration that took place before 2015, when oil prices were higher than $100 per barrel, and they are being developed as oil prices rise," EIA said. "Offshore production increases through 2035 before generally declining through 2050 as a result of new discoveries only partially offsetting declines in legacy fields."
Green Myths Canada's LNG Sales Force Tells the World - Representatives of the British Columbia, Alberta and federal governments are making the global rounds these days to sell the notion that liquefied natural gas exports can help the climate crisis.Dave Nikolejsin, deputy minister of the B.C. Ministry of Energy, Mines and Petroleum Resources, for example, flew to Japan last September along with members of the Canadian Society for Unconventional Resources.There they tried to impress upon the Japanese attendees “the role of Canadian LNG in meeting global climate policy objectives and reducing emissions of carbon dioxide.”The pitch goes like this: According to LNG Canada, the big Shell project now under construction in northern B.C., could replace 20 to 40 coal-fired plants in countries like China and India with Canadian methane, and reduce their emissions by 60 to 90 million tonnes.That’s impressive, says LNG Canada, because 90 million tons equals about 80 per cent of Canada’s car pollution. Or all of B.C.’s annual greenhouse gas emissions.In fact, Darren Gee, president and CEO of Peyto Exploration, which fracks for gas in B.C., believes Canada has a “moral obligation to provide the rest of the world with the country’s clean, responsibly-developed energy to improve lives and preserve the environment.”And so, while the blockaders of northern B.C.’s LNG Canada pipeline await police eviction while claiming to stand up for Indigenous sovereignty and climate protection, backers of the project lay claim to their own moral high ground.Such claims are problematic, if not false. The best evidence to date reveals two quite inconvenient truths.One, B.C.’s LNG is not cleaner than coal, due to leakage rates in our fracked shale fields of three per cent.Two, there is no guarantee that China will use Canadian gas to actually displace coal power production, given that coal-fired plants already operate as efficiently as methane-fueled ones. Let’s take those in order.
Global LNG Poised for Terrible Year as Supply Floods Market – Liquefied natural gas prices are poised to test record lows this year thanks to an onslaught of new supply and warmer winter temperatures curbing consumption.The startup of new export projects from Australia to the U.S. has flooded the market, while brimming stockpiles in Europe and an expected slowdown in Chinese demand have dumped cold water on consumption prospects. LNG for spot delivery to North Asia is on track to hit an all-time low this summer, while gas prices in Europe and the U.S. are trading at the weakest seasonal levels since 1999. “The outlook for natural gas over the next year or so isn’t great,” said Marco Dunand, chief executive officer of trading house Mercuria Energy Group Ltd. ”There’s a surplus already in the U.S. and Europe. And the mild winter in Asia means another surplus is building up there,” he said in an interview. Mercuria jumped into LNG trading last year with hires from EDF Trading Ltd. U.S. gas exports have surged amid the nation’s shale boom, but plummeting prices may now throttle back shipments or encourage sustained maintenance while firms weather the storm. Producers and companies with off-take agreements may decide not to load cargoes because prices are too low to earn a profit after accounting for shipping costs.“The global oversupply of LNG has been building and building and building,” said Ron Ozer, founder of gas-focused hedge fund Statar Capital LLC in New York. “The gas market can’t stomach the oversupply and warm weather, and it’s getting both.”With cargoes from the Gulf of Mexico currently priced around $2.65 per million Btu, cash margins are positive only because of weak U.S. benchmark prices, according to Robert Sims, an analyst at Wood Mackenzie Ltd.
Venezuela Weighs Privatizing Oil in Face of Economic Free Fall - Facing economic collapse and painful sanctions, the socialist government of Venezuelan President Nicolas Maduro has proposed giving majority shares and control of its oil industry to big international corporations, a move that would forsake decades of state monopoly. Maduro’s representatives have held talks with Russia’s Rosneft PJSC, Repsol SA of Spain and Italy’s Eni SpA. The idea is to allow them to take over government-controlled oil properties and restructure some debt of state oil company Petroleos de Venezuela SA in exchange for assets, according to people with knowledge of the matter. The proposal, which could offer a balm to the country’s disintegrating oil industry, is in early stages and faces major obstacles. Venezuelan laws would have to be changed, there is disagreement over how to finance the operations, and Washington’s sanctions bar any U.S. companies from doing business with the Maduro regime without a waiver. The sanctions have also discouraged non-U.S. firms from investing in Venezuela. Once an admired state-dominated company producing 3.5 million barrels per day, PDVSA is pumping at a record-low of 700,000, despite sitting on the world’s largest known reserves. Its finances are in tatters: The central bank’s hard-currency reserves have plunged to the lowest in three decades while the government’s cash holdings total less than $1 billion. For the U.S. Treasury to change its policy would almost certainly require sign-off from opposition leader Juan Guaido, who is backed by Washington over Maduro and is the leader of the National Assembly, where laws are passed. While Guaido and the opposition favor increasing foreign participation and investment in Venezuela, they don’t want to do anything that would help Maduro survive. They are pushing for him to step down and permit new presidential elections.
Brazilians mobilize to clean up massive mysterious oil spill -- A major oil spill, coming from a mysterious source in the South Atlantic Ocean, has been contaminating Brazil’s coastline since Aug. 30. The oil has already reached a 1,500-mile stretch of the coast across 11 Brazilian states. It’s contaminated beaches, coral reefs, estuaries, mangroves, and at least 14 nature conservation areas. And it has been impacting the health of traditional coastal communities, including the livelihood of hundreds of thousands of people. While the oil was spreading out of control, President Jair Bolsonaro was on a tour around the Middle East, seeking to strengthen relationships with oil-producing countries. Left with no choice, the population from affected regions, especially those that rely on the sea to make a living, together with civil society organizations, volunteered to clean up the oil mess. “The government took over 40 days to activate the emergency plan — or National Contingency Plan — which should have been activated immediately,” said Thiago Almeida, a climate and energy campaigner at Greenpeace Brazil. “Due to the inaction and inability of the government to deal with the problem, the population literally rolled up their sleeves and went to do it themselves.” A group of residents has been on the frontline of the emergency response in Pernambuco, one of the Brazilian states most affected by the oil spill. The Salve Maracaípe group, through Instagram, raised awareness about the urgent need in removing the oil from beaches and coastal environments, and mobilized thousands of volunteers to help. They also created crowdfunding campaigns, on national and international platforms, to raise funds for buying personal protective equipment, or PPE, such as safety masks, gloves and chemical resistant clothing, including water and food for those involved in the heavy cleanup activities. These essential resources have not been provided by the government at the urgency and scale needed. “We saw the need to mobilize, to act, to purchase PPEs [for safe oil cleanup by volunteers],” said Daniel Galvão, leader of the Salve Maracaípe group and a specialist in oceanography. “But we had no money for that. So we started a crowdfunding campaign.” Now with over 60,000 followers, Salve Maracaípe’s page on Instagram has tripled its visibility in recent months, as many people shared their messages and got sensitized about the need to help clean up the oil. In short time, the group gathered almost $30,000 with the crowdfunding campaigns, which allowed them to acquire health and safety resources and to increase the clean up efforts throughout the state. Embed from Getty Images
French NGOs and local authorities take court action against Total - An alliance of 14 French local authorities and several NGOs will take unprecedented court action this week against the French oil firm Total to try to force the firm to drastically reduce its greenhouse gas emissions.It is the first climate change litigation against a private company in France. Campaigners want the court to ensure Total does more to curb its emissions.Total is on the list of top 20 global fossil fuel companies whose joint exploitation of the world’s oil, gas and coal reserves can be directly linked to more than a third of all greenhouse gas emissions in the modern era, according to analysis last year.The towns and local authorities that have brought the case range from Bayonne, in the south-west, to La Possession, on Réunion island in the Indian Ocean, and Sevran, north of Paris. They argue that the climate emergency is already being felt by ordinary citizens and not enough is being done by large firms. Under a French law called the duty of vigilance, large companies must set out clear measures to any prevent human rights violations or environmental damage resulting from their activities. The non-governmental organisations bringing the case said Total had not included enough substantial detail in its vigilance plan to curb emissions, and the firm was out of step with the Paris climate agreement’s goals on limiting global heating. On Tuesday, a court summons will be made in Nanterre, outside Paris. Sandra Cossart, the head of Sherpa, a French NGO working on economic transparency and corporate-related human rights, said: “It’s the first climate litigation in France against a private company, and it aims to change that company’s strategy in terms of greenhouse gas emissions.” Sign up to the Green Light email to get the planet's most important stories Read more Sandra said that under the duty of vigilance law, “Total is legally required to identify the risks resulting from its contribution to global warming and to take the necessary measures to reduce its emissions.” She said the case was an “important moment” to show that big companies have to step up on the climate emergency. “The more impact you have, the more responsibility you have.”
Oil major pledges to become carbon neutral by 2030, drawing sharp criticism from climate activists - Sweden’s oil major Lundin Petroleum has pledged to become carbon neutral by the end of the decade, announcing plans to replace “Petroleum” with “Energy” in its name. The company, which is one of Europe’s largest independent oil producers, said Monday that it will achieve carbon neutrality by 2030 by reducing emissions from operations, improving energy efficiency and developing carbon capture mechanisms. “We have a target of 2030 to reach carbon neutrality across our operations and we have set out a realistic and deliverable pathway towards this, which clearly differentiates us as an independent oil and gas producer in our industry,” Alex Schneiter, President and CEO of Lundin Petroleum, said in a statement published Monday. The board of Lundin Petroleum has also proposed changing the firm’s name to Lundin Energy, as part of a broader so-called ’decarbonization strategy.” The move has been sharply criticized by Greenpeace Sweden, with the climate activist group accusing the energy company of hypocrisy. Isadora Wronski, head of Greenpeace Sweden, told CNBC via email on Monday that the “only real answer” to the climate emergency is to quickly phase out all extraction and burning of fossil fuels. “There is an inherent paradox in Lundin Petroleum setting a goal of ‘carbon neutrality’ while their ambition is being a ‘leading provider of oil and gas in the future,’” Wronski said. “Ridding ‘Petroleum’ from the company name does not change the fact that Lundin is in the oil business and their product is one of the environmentally most harming products there is. The Lundin Petroleum proposed name change and ‘decarbonization strategy’ reflects that oil companies understand that they are a dying breed.” “Lundin simply has to pivot or die,” Wronski said.
Oil spill from S-Oils offshore buoy contained off the coast of S.Korea - A crude oil spill from South Korea's S-Oil's offshore buoy was contained off the southeastern coast of South Korea, the country's coast guard and the refiner said on Wednesday. The leak occurred early Wednesday as the offshore buoy's pressure gauge was broken but the source of the leak was sealed, the Ulsan Coast Guard said in a statement. The exact leaked volume is not yet known, but there was no damage to nearby fish farms, the coast guard said. The oil slick was hundreds of metres long and 150-200 metres (218.72 yards) wide, according to South Korea's Yonhap News agency. S-Oil is looking into details of the leak, a spokesman said. S-Oil, whose top shareholder is Saudi Aramco, runs a 669,000 barrels per day refinery in the southeastern city of Ulsan.
Vizhinjam port plans steps to tackle oil spill - The upcoming International Multi-purpose Deepwater Seaport at Vizhinjam here will be the first port in the State to have Facility Level Oil Spill Disaster Contingency Plan in line with the National Oil Spill Disaster Contingency Plan (NOS-DCP). The preparation of the contingency plan involves detailing the port structures, port vessel types that will operate in the region, the fuel they use, chemicals and fuels they will carry, and assessment of the chances of oil or chemical spill even in remote cases. The contingency plan will enable the port authorities to utilise resources at hand to deal with any accident or emergency situation. PPP dreamThe Adani Vizhinjam Ports Private Ltd (AVPPL), the multi-port operator tasked with the execution of the ambitious project, has entrusted the preparation of the OSDC plan to KITCO Ltd, the premier public sector technical consultancy agency. The contingency plan is in the final stages of approval and this will enable the port authorities to have all the equipments, resources and people to handle any emergency situation, according to KITCO officials. The plan will also detail the likely trajectory in the event of an accident, rescue measures to be undertaken, and preventive steps to avoid accidents. The contingency plan being worked out for Vizhinjam seaport assumes significance, as none of the ports across the State have the facility level contingency plans. Kerala also does not have a State-level oil disaster contingency plan in place.
OPEC mulls extending oil production cuts through end-2020 - OPEC members are discussing a potential extension of the oil production cuts through the end of 2020, an OPEC source told Russian news agency TASS on Friday. Talks are at early stages, but there is an understanding that after March, the cuts should be extended until the end of the year, the OPEC source told TASS on the sidelines of the World Economic Forum in Davos. “Certainly, we can review any agreement at the meeting in June,” TASS’s source at OPEC said.According to the source, it is “unlikely” that the cartel decides to relax the quotas in March, because the market is still very bearish in its demand growth outlook.At the OPEC+ meeting in December, OPEC and its Russia-led partners decided to deepen the oil production cuts by 500,000 bpd in the first quarter of 2020, when demand is expected at its weakest for 2020. This brings total production reductions at 1.7 million bpd—that is if rogue members fall in line with their quotas.Considering the pledge from OPEC’s largest producer and de facto leader Saudi Arabia that it would continue to significantly overcomply with its share of the cuts, the total OPEC+ cuts could be as high as 2.1 million bpd, OPEC said.The agreement in its current form expires at the end of March and OPEC and its allies ar e set to meet early that month to decide how to proceed with the deal.
Price of OPEC daily basket drops - OPEC Secretariat calculations showed that the prices of the Organization of the Petroleum Exporting Countries (OPEC) daily basket decreased on Monday to set at USD61.98 per barrel in comparison with USD62.52 per barrel on Friday. The OPEC basket, which is also known as the OPEC reference basket of crude (ORB), is a weighted average of oil prices from different international OPEC members. For now OPEC averages the prices of oil from 14 different countries which are Algeria, Angola, the Republic of the Congo, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela.
Oil Falls to Three-Month Low as Virus Spread Raises Demand Fear - Oil tumbled to the lowest in more than three months as China’s deadly coronavirus crippled the world’s second-largest economy and threatened worldwide energy demand. Futures pared losses on Monday in New York after earlier dropping close to $52 a barrel. Traders spooked by the worsening viral outbreak took some comfort from the Saudi Arabian assurances that the world’s biggest crude exporter is closely monitoring the situation and its impact on oil markets. “I think it’s relieving some of the pressure,” Michael Lynch, president of Strategic Energy & Economic Research Inc. “People are overreacting based on a worst case scenario of no OPEC response.” The Saudis are signaling that once the impact of the virus is clearer, they’re “willing to re-balance the markets,” Lynch said. The virus is the latest upheaval for the oil market, which has been struggling with demand concerns for months. Investors are selling crude and other commodities amid a broad withdrawal from riskier assets and fears the virus will curtail fuel consumption as travel is restricted. Gasoline futures tumbled to the lowest price in more than 11 months. West Texas Intermediate for March delivery was down 2.1% to $53.07 at 10:47 a.m. on the New York Mercantile Exchange, after earlier dipping to the lowest intraday price since Oct. 10.Brent futures were down 2.5% at $59.20 on the London-based ICE Futures Europe exchange after sinking as much as 3.6%. Hedge funds boosted bullish bets on New York-traded futures by 2.8% in the week ended Jan. 21, the most in a month, a day before prices tipped into the worst three-day slump since September.
Oil tumbles into bear market, hits more than 3-month low on fears coronavirus will slow global growth -Oil dropped to its lowest level since October on Monday, as fears over a potential slowdown in crude demand, sparked by the coronavirus outbreak, continued to pressure prices. U.S. West Texas Intermediate crude fell 1.9%, or $1.05, to settle at $53.14 per barrel, for the fifth straight session of losses, and the lowest closing price since Oct. 15. At its low, WTI dipped more than 3% to hit $52.13, a price not seen since Oct. 10. The contract is coming off its third straight week of losses and worst week since July, and is now trading in bear market territory after falling more than 20% from its recent April high of $66.60. International benchmark Brent crude fell 2.5%, or $1.53, to $59.16. It’s also coming off its third straight week of losses, and its worst week since Dec. 2018. The flu-like coronavirus, first identified on Dec. 31 in the Chinese city of Wuhan, has now killed 82 people, according to Chinese officials, with at least 2,900 confirmed cases worldwide. The virus has spread to 10 additional countries, including South Korea, Japan and the United States, where the fifth case was confirmed on Sunday. A slowdown in China’s economy would hit oil demand since the nation is the world’s largest crude oil importer —importing a record 10.12 million barrels per day in 2019 — and the world’s second-largest oil consumer, according to data from the General Administration of Customs. “Supply risk has been tested in acute fashion over recent months, but the coronavirus presents the first major severe test to demand in years,” RBC analyst Michael Tran said in a note to clients Monday. “Concerns surrounding the virus and the negative impact on demand have taken the oil market hostage and have sent oil prices on a five-day losing streak.”
Oil prices log lowest finish in over 3 months as coronavirus stokes fears of weak demand - Oil prices fell for a fifth session in a row on Monday, settling at their lowest in more than three months, as the growing death toll and spread of China’s deadly influenza over the weekend incited fresh fears that the illness could hurt global energy demand. “The virus is fuelling fears of a cooling of oil demand, which would mean that the global oil market would be oversupplied to an even greater extent if no further measures are taken to reduce supply,” said analysts at Commerzbank, in a note to clients. West Texas Intermediate crude for March delivery declined by $1.05, or 1.9%, to settle at $53.14 a barrel on the New York Mercantile Exchange. Prices for the front-month contract, which fell 7.5% last week, settled Monday at their lowest since Oct. 15, according to Dow Jones Market Data. March Brent crude fell $1.37, or 2.3%, to $59.32 a barrel on ICE Futures Europe following a 6.4% decline last week. Prices for the global benchmark logged their lowest finish since Oct. 21. China extended this week’s Lunar New Year holiday and took increasingly drastic measures to halt the spread of the coronavirus, amid warnings it was growing more contagious. As of Monday, the death count rose to 80 and the number of infected neared 3,000 confirmed cases. In the U.S., there are now five confirmed cases, with a handful of infections in other countries, such as France and Japan. Rattling investors, in Wuhan, China — the epicenter of the virus’s outbreak — the mayor said that five million of the city’s 11 million people had left the city before the travel ban was imposed. As well, reports that the virus may be infectious during its incubation period may make containment even more difficult. For the oil markets, “the real question remains whether the virus will continue to cause disruption beyond the near-term, with an extended outbreak, related quarantines, and general slowing of economic activity capable of imposing significant downside risk for global oil demand,” said Robbie Fraser, senior commodity analyst at Schneider Electric.
Oil prices likely to ‘stay down’ for months: Analysts fear impact of fast-spreading coronavirus Oil prices slumped to multi-month lows on Monday, with energy market participants increasingly concerned about demand growth as the coronavirus spreads globally. International benchmark Brent crude traded at $58.99 a barrel Monday afternoon, down nearly 2.8%, while U.S. West Texas Intermediate (WTI) stood at $52.70, tumbling over 2.7%. Both crude benchmarks have slipped to lows not seen since early October, as oil traders closely monitor the outbreak of a deadly pneumonia-like virus. On Sunday, Chinese officials confirmed there had been more than 2,700 confirmed cases of coronavirus, including 461 people in a critical condition as the death toll rose to 80. The virus, which started in the Chinese city of Wuhan, has spread to other major cities such as Beijing, Shanghai, Macao and Hong Kong. China has warned the ability of coronavirus to spread is getting stronger, spooking financial markets and prompting a sharp fall in oil prices. Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said in a statement on Sunday that he was confident the outbreak would be contained.
Oil falls for sixth day as China virus spreads - Oil futures slipped on Tuesday, extending losses into a sixth session as the spread of a new virus in China and other countries raised concerns about a hit to economic growth and slower oil demand.Brent crude was down 15 cents, or 0.3%, to $59.17 at around 0114 GMT, after touching a three-month low on Monday at $58.50.U.S. West Texas Intermediate was down 12 cents, or 0.2%, at $53.02, after slipping to its lowest since early October in the previous session at $52.13.The United States warned against travel to China and other countries put out advisories as the death toll from the spreading coronavirus outbreak rose to 100 people and left millions of Chinese stranded during the biggest holiday of the year.Oil investors are concerned travel advisories, other restrictions and any fall-off in economic growth in the world's second-biggest economy and elsewhere will dampen demand for crude and its products, amid plentiful supply."Jet fuel demand has already been negatively impacted given our real time observation of Chinese flight activity," RBC Capital Markets said in a note.U.S. crude stockpiles likely rose last week, according to a Reuters poll, underlining the supply side concerns.
OPEC Considers Deeper Oil Cuts Amid Virus Market Meltdown - As leading OPEC producers downplayed fears of crippled demand growth in an attempt to calm the oil market on Monday, the cartel is said to be considering extending the ongoing production cuts or even deepening them to stave off excessive price slides due to the coronavirus outbreak in China, an OPEC source told S&P Global Platts. According to S&P Global Platts’ source in OPEC, the ministers of the OPEC+ coalition are in discussion to closely watch the market and get ready “to do anything if there is a need for it.” OPEC members were already said to be discussing a potential extension of the oil production cuts through the end of 2020, because of the still bearish outlook on oil demand growth, an OPEC source told Russian news agency TASS on Friday. A day earlier, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman had said that all options are on the table for the next OPEC+ meeting in March, including further cuts in oil production.But the spread of the coronavirus and the rising death toll from it spooked market participants in the past few days and dragged oil prices below $60 a barrel Brent Crude, below OPEC’s supposedly comfortable level of prices and way below the $80 a barrel price which OPEC’s leader and largest producer, Saudi Arabia, needs to balance its budget this year. The Saudis tried to jawbone the market higher early on Monday, and the United Arab Emirates (UAE) chimed in to downplay what it called a “market over-reaction” over fears that the virus will erode oil demand in China—the world’s largest oil importer and main oil demand growth driver. “The Kingdom of Saudi Arabia and other OPEC+ producers have the capability and flexibility needed to respond to any developments, by taking the necessary actions to support oil market stability, if the situation so requires,” Energy Minister Prince Abdulaziz bin Salman said in a statement carried by the official Saudi Press Agency.In a separate statement, the UAE’s energy minister Suhail al-Mazrouei said, as carried by Reuters: “It is important that we do not exaggerate projections related to future decreases in oil demand due to events in China, and the market does not over-react based on psychological factors, driven by some traders in the market.”
OPEC wants to extend oil production cuts until June -- OPEC is inclined to extend the ongoing production cuts at least through June and could discuss deeper cuts if need be, OPEC sources told Reuters on Tuesday, as oil prices continue to slide on fears that the coronavirus outbreak in China will impact oil demand. OPEC is very likely to extend until June the current cuts, which expire in March, one source in OPEC told Reuters, while another added that “A further extension is a strong possibility and a deeper cut is a possibility.”The cartel could also consider rolling over the cuts as-is until the end of the year, or even deepen the cuts if the demand destruction turns out to be significant, according to the sources.Even Russia—which has always been OPEC’s reluctant partner agreeing to rollover of the cuts at each OPEC+ meeting at the very last moment and which is said to want out after March—is reportedly considering staying in the pact if oil prices continue to be below $60 a barrel.Oil prices have dropped by around 10 percent since the first reports of the deadly coronavirus came out of China last week.Early on Tuesday, oil prices were on track for a sixth consecutive day of losses, with WTI Crude trading below $53 and Brent Crude barely hanging to the $58 a barrel handle. On Monday, OPEC’s leader Saudi Arabia tried to jawbone the market higher, and the United Arab Emirates (UAE) chimed in to downplay what it called a “market over-reaction” over fears that the virus will erode oil demand in China—the world’s largest oil importer and main oil demand growth driver. But while the leading OPEC producers downplayed fears of crippled demand growth in an attempt to calm the oil market, the cartel was said to be considering extending the production cuts or even deepening them to stave off excessive price slides due to the coronavirus outbreak in China, an OPEC source told S&P Global Platts on Monday.
OPEC+ Halts Slide In Oil Prices - The coronavirus continues to send panic through global markets. Oil prices turned positive on Tuesday, with WTI trading close to $54 and Brent just above $59. With tens of millions of people essentially locked down in China, oil demand is expected to take a hit. The sharp drop in oil prices over the past week and fears about a renewed oil supply surplus has OPEC+ turning on the rumor mill again. An OPEC source says that the group will consider extending the cuts until June, while other source said the group might also consider a deeper cut from current levels. The current deal expires in March. Oil has declined by around $7 per barrel in a little over a week, and some analysts think the selloff has gone too far. “Several questions remain unanswered about the potential fallout from the coronavirus, but if the experience from the 2003 SARS outbreak is any indication, demand worries are likely overdone,” Barclays said in a note. Others agreed. “We believe coronavirus is a Chinese jet fuel demand story for now and not yet a global demand story,” RBC Capital Markets wrote.Libya’s oil production has plunged to 280,000 bpd as the LNA continues to blockade the country’s oil export terminals. Libya has very little storage capacity so once filled, output could soon fall further. The head of the National Oil Corp. said that the country’s oil production is rapidly falling to zero. Exxon’s stock closed at a 10-year low on Monday. Bloomberg notes that the oil major is running a counter-cyclical strategy – spending heavily at a time when prices are low and supply is readily available – in order to profit from the next cycle. Most if its big projects – Guyana, Mozambique, Gulf Coast petrochemicals – will not “meaningfully begin contributing” to cash flow until 2023-2025, Scotiabank said. Goldman Sachs said that its “concern” is the “lack of [free cash flow] in the business model if oil prices do not recover.” Gazprom will move forward without foreign companies in order to complete the Nord Stream 2 pipeline. The project is nearly complete but has been delayed because of U.S. sanctions. “The Nord Stream 2 project, which is already 94 per cent complete, will be finished by the Russian side,” Gazprom deputy head Elena Burmistrova said.
Oil Claws Back Some Virus Losses -- Oil extended its recovery from a virus-induced slump as a report showing a drop in U.S. crude inventories, a rebound on Wall Street and speculation OPEC+ will step in to prop up prices reassured investors. The American Petroleum Institute reported stockpiles fell by 4.27 million barrels last week, which would be the biggest drop this year if confirmed by government data due later on Wednesday. That took some attention away from the novel coronavirus, which kept spreading as confirmed cases in China overtook the official number of infections during the SARS epidemic. Oil has rebounded 1.6% after closing at a three-month low on Monday amid concern over the potential impact of the outbreak on travel and economic activity in China, the world’s biggest energy consumer. The Organization of Petroleum Exporting Countries and its allies could deepen output cuts at its next meeting in March to take account of lower demand due to the virus, according to Ed Morse, head of commodities research at Citigroup Inc. Oil prices stabilized in line with broader risk sentiment, and prices were further bolstered by the API report, Stephen Innes, chief Asia market strategist at AxiCorp, said in a note. A potential supply response from OPEC “should provide some semblance of a floor until oil traders receive concrete evidence that containment is working and that infection rates are slowing,” he said. West Texas Intermediate for March delivery rose 1% to $54 a barrel on the New York Mercantile Exchange as of 7:45 a.m. in London. The contract finished 0.6% higher on Tuesday. Brent for March settlement added 0.9% to $60.05 a barrel on the London-based ICE Futures Europe exchange after closing up 0.3% on Tuesday. The global crude benchmark traded at a $6.05 per barrel premium to WTI. U.S. crude stockpiles are currently at a three-month low after big declines in December. Analysts surveyed by Bloomberg are forecasting a 1.29-million barrel drop in inventories ahead of the official Energy Information Administration data.
WTI Extends Gains After Surprise Crude Draw - Oil prices rebounded markedly (snapping a 5-day losing streak) from mid-October lows today on no particular news out of China at all (except bad news). There’s some short-covering “after the worst-case demand scenario got priced in,” . Sentiment improved after the sell off captured the attention of Saudi Arabia and China ramped up efforts to contain the outbreak. “They’ve shown the market they’re not going to take this lying down.”For now, let's see what the initial impact of oil demand fears were on inventories. API
- Crude -4.27mm (+500k exp)
- Cushing +1.02mm (-870k exp)
- Gasoline +3.27mm (+1.3mm exp)
- Distillates -141k (-1.1mm exp)
Despite expectations for a modest build, API reported a crude inventory drawdown of 4.27mm... WTI was hovering around $53.50 ahead of the print, and jumped modestly higher on the API data... Despite the gains on Tuesday, investors remain cautious of the pathogen’s potential to destabilize oil demand. “There’s a wait-and-see attitude that seems to be driving markets right now,” The virus fears are really a question of how much demand destruction occurs and how long that lasts,”
Oil rises more than 1% as markets wait on virus impact, US stocks fall -Oil prices rose for a second day on Wednesday, recouping some losses after a five-day rout on talk that OPEC could extend oil output cuts if a new coronavirus hurts demand, while data showing a decline in U.S. stockpiles helped steady prices. Brent crude rose 81 cents, or 1.4%, to $60.36 per barrel. U.S. West Texas Intermediate crude was up 81 cents, or 1.5%, at $54.29 per barrel. Financial markets that have been hit by the spread of the virus out of China are trying to assess the economic fallout, with the death toll rising to 132 and airlines reducing flights to China. “While the coronavirus continues to the spread both in and outside China the market is trying to adjust positions across all asset classes,” said Saxo Bank analyst Ole Hansen. “Commodities, most of which depend on global growth and demand, have been caught in the crosshairs of these developments ... China (is) the world’s biggest buyer of most commodities, from crude oil and fuel to copper and iron ore.” British Airways suspended all direct flights to and from mainland China after Britain warned against all but essential travel to the country, and jet fuel demand has slumped in Asia as airlines have cancelled connections. The Organization of Petroleum Exporting Countries wants to extend oil production cuts until at least June from March, and may deepen the reductions, should demand for oil in China be significantly reduced by the spread of the virus, OPEC sources said. OPEC and its allies including Russia, have been trying to stabilise prices amid questions over the global demand outlook and rising supplies, particularly out of the United States. “A further extension is a strong possibility and a deeper cut is a possibility,” one OPEC source told Reuters. Any fallout of the China virus on oil demand is likely to be clearer over the coming week, the source said. In the United States, crude oil inventories fell by 4.3 million barrels last week, data from industry group the American Petroleum Institute showed on Tuesday, compared with analysts’ expectations of a gain of 482,000 barrels.Gasoline stocks were up by 3.3 million barrels, compared with forecasts in a Reuters poll of a 1.3 million-barrel gain. Distillate fuel inventories, which include diesel and heating oil, fell by 141,000 barrels, against expectations of a 1 million barrel drop.
OPEC’s waning influence laid bare as coronavirus outbreak hammers oil prices, analysts say - OPEC’s battle to support oil prices as China’s coronavirus spreads internationally shows the producer group is struggling to wield the same influence over global crude markets, energy analysts have told CNBC. It comes amid speculation that OPEC and non-OPEC producers, sometimes referred to as OPEC+, could extend production cuts if the intensifying outbreak of the coronavirus hampers oil demand growth. International benchmark Brent crude traded at $59.85 a barrel Wednesday afternoon, up over 0.6%, while U.S. West Texas Intermediate (WTI) stood at $53.59, around 0.2% higher. Both crude benchmarks have pared some of their recent losses, after slumping to multi-month lows earlier in the week. “Will deeper OPEC supply curbs provide the panacea for the current oil market malaise? Probably not,” OPEC is starting to realize they have ‘less influence’ China’s National Health Commission confirmed Wednesday that the coronavirus had infected 5,974 people, with 132 deaths and 103 cured. The virus, which was first discovered in the Chinese city of Wuhan, has spread to other major cities such as Beijing, Shanghai, Macao and Hong Kong. Financial markets have been spooked by the spread of a deadly pneumonia-like virus, with energy market participants trying to assess the potential economic fallout.
U.S. crude stockpiles rise more than expected as refiners cut runs-EIA – (Reuters) - U.S. crude oil stockpiles rose far more than anticipated last week as refiners cut runs on the back of weakened demand for fuel, with gasoline inventories building to a record high, the Energy Information Administration said on Wednesday. Crude inventories rose 3.5 million barrels in the week to Jan. 24 to 431.7 million barrels, compared with analysts’ expectations in a Reuters poll for a 482,000-barrel rise. That came as refiners cut back runs sharply, with utilization rates dropping 3.3% last week to 87.2% of total capacity. Refinery crude runs fell by 933,000 barrels per day, EIA said. Overall demand in the last four weeks has sagged, with gasoline product supply - a measure of demand - down by 4.4% from the year-ago period, and distillate fuel demand down 8.3%, EIA said. Oil prices were little changed following the news, but remained weak as a consequence of ongoing concern about the effects of the coronavirus on travel, and by extension, fuel demand. [O/R] U.S. crude futures dropped 16 cents, or 0.3%, to $53.33 a barrel as of 10:50 a.m. ET (1550 GMT), while Brent was up 27 cents to $59.78 a barrel. “A big drop in refining runs was a bit disappointing, leading to a bigger than expected build in crude,” “Because the market was oversold anyway, there’s a chance to recover, because the products (inventories) were pretty much in line with expectations.” U.S. gasoline stocks rose for a 12th straight week, growing by 1.2 million barrels to an all-time high at 261.2 million barrels, the EIA said. Analysts had expected a 1.3 million-barrel rise. Distillate stockpiles, which include diesel and heating oil, fell 1.3 million barrels in the week to 144.7 million barrels, versus expectations for a 1.1 million-barrel drop, the EIA data showed. U.S. Gulf Coast distillate inventories last week rose by about 2 million barrels to 48.9 million barrels, the highest since September 2017.
WTI Extends Losses After Failed Missile Attack, Big Crude Build - Oil prices surged overnight after API's surprise draw and headlines about a Houthi missile attack on Aramco facilities, but after tagging unchanged from Friday's close (erasing the post-virus drop), comments that all missiles were intercepted sent prices lower and refocused traders' attention on the potential for an imminent demand crisis due to the 'Devil'-Virus spreading across the world. Refinery utilization rates have been sluggish for this time of year, “If refineries are not operating at capacity, it’s because they don’t have the demand, a lower draw or a build could make the demand fear worse” So all eyes once again revert to inventories.. DOE:
- Crude +3.548mm (+500k exp)
- Cushing +758k (-870k exp)
- Gasoline +1.203mm (+1.3mm exp)
- Distillates -1.289mm (-1.1mm exp)
A big surprise crude draw from API was not enough to trump china demand fears but the official data from DOE shows a much bigger than expected 3.548mm crude buil As Bloomberg warns, the world is swimming in refined products. Gasoline stockpiles hit a seasonal high in data going back 29 years in last week’s report. Demand is likely to be soft, especially if we see a big slowdown in exports to Asia as fears persist about the coronavirus. US Crude production remains at a record high, as forward-looking rig-counts begin to stabilize after their collapse...
Oil prices fall as EIA reports the biggest weekly U.S. crude-supply climb since November - Oil futures saw mixed trading on Wednesday, with U.S. prices down after government data revealed that domestic crude inventories posted a bigger-than-expected weekly climb—their largest since November. Global benchmark crude prices, meanwhile, inched higher on the back of reported conflicts in the Middle East. West Texas Intermediate crude for March delivery CLH20, -0.65% on the New York Mercantile Exchange fell 20 cents, or 0.4%, to $53.28 a barrel, while April Brent crude BRNJ20, -0.29% was down 21 cents, or nearly 0.4%, at $59.30 a barrel on ICE Futures Europe. “Brent is being driven by Houthi attacks on Aramco and by fire on tanker in the region,” Meanwhile, “WTI being driven by softening refinery demand for crude and poor US margins.” Early Wednesday, the Energy Information Administration reported that U.S. crude supplies rose by 3.5 million barrels for the week ended Jan. 24. Analysts polled by S&P Global Platts forecast a much smaller rise of 1.4 million barrels, while the American Petroleum Institute on Tuesday reported a decline of 4.3 million barrels.“The large crude stock build is the first thing to notice, a result of a decline in refinery utilization...and inputs, while production stayed at a record high,”
Oil falls for 6th time in 7 sessions on coronavirus fears, higher inventories - Oil fell on Wednesday as worries about the impact of the coronavirus outbreak on demand and a larger-than-expected build in U.S. inventory weighed on prices, although losses were offset by talk that OPEC could extend oil output cuts. Brent crude gained 30 cents to settle at $59.81 per barrel. U.S. West Texas Intermediate crude slid 15 cents, or 0.3%, to settle at $53.33 per barrel, for its sixth negative session in 7 trading days. Financial markets that have been hit by the spread of the virus out of China are trying to assess the economic fallout, with the death toll rising to 132 and airlines reducing flights to China. “Following the outbreak of coronavirus, commodities markets suffered from a technical selloff,” said Michel Salden, senior portfolio manager of Vontobel Asset Management, who argued that oil prices would likely soon rebound. “While coronavirus might lead to a drop in oil demand equivalent to 200-300,000 barrels per day ... all this combined makes this years selloff in oil, -14% from peak, overdone versus the mild correction in equity markets, only down 2% from peak. British Airways suspended all direct flights to and from mainland China after Britain warned against all but essential travel to the country, and jet fuel demand has slumped in Asia as airlines have cancelled connections. U.S. crude stocks and gasoline inventories grew more than expected last week as refiners cut runs, the Energy Information Administration said in its weekly report. Crude inventories rose by 3.5 million barrels in the week to Jan. 24 to 431.7 million barrels, compared with analysts’ expectations in a Reuters poll for a 482,000-barrel rise.
Oil falls as virus death toll in China climbs -- Oil prices fell on Thursday on concerns over the potential economic impact of the coronavirus that continues to spread worldwide, while the market also considered the possibility of an early OPEC meeting.Brent was down $1.24, or 2%, at $58.56 per barrel, having risen 0.5% on Wednesday. U.S. West Texas Intermediate crude was down $1.21, or 2.3%, at $52.12 per barrel, after dropping 0.3% in the previous session.Countries have started isolating hundreds of citizens evacuated from the Chinese city of Wuhan on Thursday to stop the spread of an epidemic that has killed 170 people as worry about the impact on the world's second-biggest economy rattled markets.Prices have steadied in recent days at three-month lows as investors tried to assess what economic damage the virus might inflict and to demand for crude oil and its products.But now the rising death toll from the virus and its spread has again turned screens red, with global equities falling. The MSCI world equity index, which tracks shares in 49 countries, fell 0.5% as European shares followed Asian indexes down."The market is really driven by Asia and the China virus. The only thing that can change the current trend is an emergency OPEC meeting," ."The World Health Organisation's Emergency Committee is set for another meeting later on Thursday to reconsider whether the rapid spread of the virus should be considered a global emergency.Major multinationals are closing operations in China and Airlines around the world are suspending or reducing direct flights to China as travel warnings are issued by governments and passenger numbers drop.Algeria's energy minister Mohamed Arkab said on Wednesday it was very possible that an OPEC meeting could be advanced to February instead of the scheduled meeting in March. ING cautioned that outages in Libya - where production has been steadily declining amid a blockade - should not be discounted .The bigger than expected build in U.S. crude oil inventories last week also kept pressure on prices.Crude stocks rose by more than seven times market expectations, gaining 3.5 million barrels in the week to Jan. 24, the U.S. Energy Information Administration (EIA) said on Wednesday.Gasoline stocks rose to a record high, increasing for a 12th consecutive week to 261.1 million barrels, the EIA said.
Oil falls to new three-month lows as virus fears grow, OPEC mulls meeting - Oil futures dropped on Thursday, with U.S. prices logging their lowest settlement since early August, as worries rise over the potential economic impact from the continued spread of the coronavirus. “Alarm bells are going off in global markets after the World Health Organization (WHO) is saying they deeply regret calling the outbreak of the coronavirus moderate,” said Phil Flynn, senior market analyst at The Price Futures Group, in a note. That’s “raising fears that the virus is much worse than official Chinese channels are telling us. If that fear permeates the public in other parts of the world, it could be a real risk to global economic growth.” On Thursday afternoon, WHO declared that coronavirus is a public health emergency of international concern. West Texas Intermediate crude for March delivery CLH20, +0.14% on the New York Mercantile Exchange fell $1.19, or 2.2%, to settle at $52.14 a barrel, after trading as low as $51.66. The settlement was the lowest for a front-month contract since Aug. 7, according to Dow Jones Market Data. March Brent crude BRNH20, +0.05%, which expires at Friday’s settlement, shed $1.52, or 12.5%, to $58.29 a barrel, for the lowest front-month contract finish since Oct. 8. Chinese authorities on Thursday said more than 7,700 people have been infected, with at least 170 dead. World Health Organization officials expressed “great concern” over the virus’s spread outside of China. “Assessing demand destruction in real time is difficult, and the market has clearly adopted a sell first, ask questions later approach to the coronavirus,” strategists at RBC Capital Markets wrote in a research note dated Thursday.
Oil slides as virus outbreak shakes economic growth predictions - (Reuters) - Oil prices fell on Friday and were on track for a fourth straight weekly loss on mounting worries about economic damage from the coronavirus that has spread from China to around 20 countries, killing more than 200 people. Prices briefly found support after Russian Energy Minister Alexander Novak said Russia was ready to bring forward a meeting of OPEC and its allies to February from March to address a possible hit to global oil demand from the virus. Novak said he was in discussions with OPEC leader Saudi Arabia and that the oil-producing nations would need several more days to assess the impact and decide on the date of the meeting. “The cartel stands ready to act again if necessary but may accept the short-term pain for now on the expectation that the economic consequences won’t be as bad as people fear and (the) price will bounce back to more acceptable levels on its own,” said Craig Erlam, senior market analyst at OANDA. Brent crude LCOc1 fell 13 cents to settle at $58.16 a barrel and was down about 4% on the week. U.S. West Texas Intermediate (WTI) CLc1 fell 58 cents to end the session at $51.56 a barrel, down 4.8% on the week. During the session, prices sank to as low as $50.97 a barrel, the lowest since early August. Both benchmarks had risen more than $1 a barrel early in the session. Global equity markets were poised for their first monthly loss since August and Wall Street’s main averages tumbled more than 1% on Friday, as mixed corporate earnings added to worries over the impact of the coronavirus. Disruptions in supply chains and travel curbs prompted economists to temper growth expectations for China, the world’s second-largest economy. Goldman Sachs said the outbreak was likely to shave 0.4 percentage point from China’s economic growth in 2020 and could also drag the U.S. economy lower.
U.S. oil futures fall almost 16% in January - Oil futures settled lower on Friday, with U.S. prices down nearly 16% for the month of January. That was the biggest monthly percentage decline since May of last year. Concerns over a slowdown in the global economy and demand for oil kept pressure on prices for the commodity. March West Texas Intermediate oilCLH20, +0.14% fell 58 cents, or 1.1%, to settle at $51.56 barrel on the New York Mercantile Exchange. That was the lowest front-month contract finish since Aug. 7, according to FactSet data. Prices lost 4.85% for the week and 15.6% for the month.
Brent Oil Has Worst Run in 14 Months as Virus Cripples Big Oil Buyer China - Oil prices had their worst monthly loss in more than a year on Friday as top buyer China remained virtually crippled by the coronavirus crisis. Attempts by OPEC and its allies to expedite a meeting to prop the market also barely helped. Brent, the London-traded global benchmark for crude oil, settled down 71 cents, or 1.2%, at $56.52. Brent struck a four-month low of $56.16 in intraday trade. New York-traded West Texas Intermediate, the benchmark for U.S. crude, settled down 58 cents, or 1.1%, at $51.56 per barrel. WTI hit a near-six-month low of $51.11 earlier. With January coming to a close Friday, Brent posted a monthly loss of just over 14%, its biggest slide since November 2018, when it lost 22%. WTI fell nearly 16%, its worst since May. Friday’s losses came despite Russia’s news agency Ifax reporting that Energy Minister Alexander Novak was agreeable to the plan by Saudi Arabia and others in the OPEC+ group to bring forward to next month their scheduled meeting in March, in an attempt to put a floor under the market. Bloomberg, in a separate report Thursday, said Moscow appeared resistant to expediting a meeting as it would mean deeper output cuts for those involved — something independent oil producers in Russia were against. The Ifax report, however, suggested that the only problem for Moscow was agreeing with the rest of OPEC+ on a new date for the meeting. Data showed China’s factory activity faltered in January, adding to fears about the fallout to the economy from the month-long coronavirus epidemic, which showed no signs yet of coming under control after having killed more than 200 people and infected nearly 10,000. Goldman Sachs (NYSE:GS) revised down China's 2020 GDP growth expectations to 5.5% from 5.9%. Global markets briefly calmed late on Thursday after the World Health Organization gave China top marks for its efforts in battling the epidemic and containing it largely within its borders, despite its spread to nearly two dozen other countries. Yet, when trading resumed Friday, sentiment crashed again.
Iraqi security forces kill protester, rockets hit U.S. embassy (Reuters) - Iraqi security forces shot at anti-government protesters in Baghdad on Sunday, killing at least one person, and unidentified men set fire to sit-in tents in a southern Iraqi city, police and medics said, as months-long civil unrest escalated. Separately, at least one of five Katyusha rockets fired at Baghdad’s fortified Green Zone hit the U.S. embassy, wounding three people, in a rare direct targeting of the compound, security sources said. Reuters could not independently verify the rocket attacks. Anti-government protests erupted in Baghdad on Oct. 1 and quickly turned violent. Security forces and unidentified gunmen have shot protesters dead. Nearly 500 people have been killed in the unrest. The protests are an unprecedented leaderless challenge to Iraq’s Shi’ite Muslim-dominated and largely Iran-backed ruling elite, which emerged after a U.S.-led invasion toppled Sunni dictator Saddam Hussein in 2003. Demonstrators are demanding that all parties and politicians be removed, free and fair elections be held and corruption rooted out. The government has responded with violence and piecemeal reform. The international community has condemned the violence but not intervened to stop it. In Baghdad, one protester was killed, police sources and medics said, and more than 100 others hurt across the country after the security forces tried to clear protest camps. At least 75 of those hurt were in the southern city of Nassariya. A Reuters witness said protesters set fire to two security vehicles and hundreds of other demonstrators controlled key bridges in the city. Later, unidentified men set fire to tents that are part of a months-long sit-in in the city centre. Protests have flared in the last two days after populist cleric Moqtada al-Sadr, many of whose supporters had participated, said he would no longer be involved in anti-government demonstrations.Sadr opposes all foreign interference in Iraq but has aligned himself more closely in recent months with Iran and the Tehran-backed parties that dominate state institutions in Baghdad.
Iraqi government cracks down on anti-US protests - Iraq’s caretaker Prime Minister Adel Abdul Mahdi ordered a brutal crackdown on peaceful mass demonstrations that erupted on Friday. Protesters chanted “get out, get out, occupier,” and called for the immediate withdrawal of US troops from the country. For the last three days, security forces have fired teargas and live ammunition, killing at least 12 people and wounding dozens more in the capital, Baghdad, and in the southern cities of Basra, Nasariyah, Dhi Qar and Diwaniya, in a bid to disperse the protests. According to the Iraqi High Commission for Human Rights, more than 500 people have been killed since the protests began on October 1 with several rights groups accusing security forces of using excessive force. There have been reports of kidnappings, torture, snipers on rooftops and armed gunmen in drive-by shooting of protesters. The protests, sparked by unemployment, particularly among young people, the lack of electricity and water, poor services and rampant corruption, rapidly escalated, with calls for the government to resign, a new prime minister independent of the main political blocs, fresh elections, an end to the sectarian-based political system and the prosecution of those implicated in corruption and the killing of protesters. While the protests have mainly taken place in Baghdad and nine predominantly Shia provinces, they have generally been supported by Sunni Iraqis. Most of the Sunni politicians, however, have remained silent over the protests. Although Abdul Mahdi resigned last month, he remains in office until a new prime minister is appointed. Candidates nominated by the government have been rejected by the protesters as being too close to the old corrupt setup. But a new prime minister must have the support of the largest bloc, Sairoon, led by populist Shiite cleric Muqtadr al-Sadr, as well as Hadi al-Amiri’s Fatah bloc that is closely linked to the Hashd al-Shabi, or Popular Mobilization Forces (PMF) militia, that is aligned with Iran. These blocs fear that under a more politically independent politician, they will lose their own power and influence, not to say access to the country’s oil resources. The crackdown came just hours after Moqtada al-Sadr withdrew his support for the “million strong march” he had called on Friday, amid fears that the protesters might attack the presidential palace or the heavily-fortified Green Zone that houses the US embassy and other foreign missions. He said he was ending his support—always qualified—for the anti-government demonstrations, as part of his bid to retain political control over the government and choice of prime minister and so avoid fresh elections. Al-Sadr has millions of supporters in Baghdad’s poorest neighbourhoods and the south and heads the largest political bloc in Iraq’s parliament, which holds several ministerial posts. Al-Sadr, who has long sought to balance between Washington and Tehran, has found it increasingly difficult to contain his supporters’ hostility to the corrupt politicians that have ruled the country since the US-led invasion of Iraq in 2003. His support for Friday’s demonstration was aimed at bolstering his own support, while keeping anti-US sentiment under control.
Iraq Protest Death Toll Soars Past 600 After Fresh Weekend Unrest - Over a weekend which late Sunday witnessed what was presumably Iraqi militia-fired missiles score a rare direct hit on the US Embassy in Baghdad, mass protests across multiple cities against both the Iraqi government and American forces' continued presence inspired by Shia firebrand cleric and nationalist Moqtada al-Sadr continued. While the protests stalled on Saturday after Sadr the night before appeared to have withdrawn support for the demonstrations, they were unleashed again Sunday with new ferocity which left at least two more protesters dead amid clashes with police. Large anti-government protests have been intermittent for the past few months; however, the last three days have been particularly intense with at least 15 killed and over 200 injured, according figures produced by Independent High Commission for Human Rights of Iraq. This brings the total death toll since protests began in October to more than 600, according to the commission as well as Amnesty International. Sadr has both given support to the 'nationalist' protests and "million man march" demonstrations which erupted last week calling for an end to American military occupation; however, he's faced accusations of betraying the protesters to Iran when he briefly withdrew support Friday into Saturday, and given he's seen as part of the Shiite religious establishment. His political faction is also the largest bloc in Iraqi parliament. The popular cleric stirred resentment upon announcing Friday that a "temporary halt" in the resistance to US occupation was needed. “We will do our best to prevent taking Iraq to another possible war,” he said.
US embassy attack: Rockets strike embassy compound in Baghdad - - Three rockets struck the US Embassy compound in Baghdad on Sunday, leaving one person injured, a US official told CNN initial reports indicate.The official said the injury was minor and the individual had since returned to duty.In a call with Iraqi Prime Minister Adil Abdul Mahdi on Monday, Secretary of State Mike Pompeo "expressed his outrage at the continued assaults by Iran's armed groups against US facilities in Iraq, including yesterday's rocket attacks against our Embassy, which resulted in one injury," a readout from State Department spokesperson Morgan Ortagus said. “The Secretary underlined once again that these attacks demonstrate a wanton disregard for Iraqi sovereignty and a failure to rein in these dangerous armed groups. He appreciated Prime Minister Abd al-Mahdi's commitment to strengthen security to protect American personnel and diplomatic facilities," Ortagus wrote. "The Secretary noted that we view last night's attack on the Embassy as an attempt to distract Iraqi and international attention away from the brutal suppression of peaceful Iraqi protesters by Iran and its proxies."Ortagus said that Pompeo expressed the US' "willingness to discuss the scope of our forces in Iraq over time."There have been numerous rocket attacks on Baghdad's Green Zone, where the embassies of the US and several other western countries are located, and the area surrounding it in recent months. However, the whole of Iraq is on a heightened state of alert as tensions between the US and Iran have dramatically increased in recent weeks after the US killing of key Iranian general Qasem Soleimani and Iran's retaliatory missile attack on an Iraqi base housing US troops. No one immediately claimed responsibility for Sunday's attack. Since September there have been more than 14 attacks by Iran and Iranian-supported militias on US personnel in Iraq, according to the State Department.
US stops weapons delivery to Iraq amid tensions with Baghdad - The United States stopped all weapons deliveries to Iraq in the midst of the growing tensions with the government in Baghdad, the US-based Inside Defense news site reported, APA reports quoting Sputnik.The freeze includes halting supplies for the new F-16 fleet, the report said on Monday citing Air Force spokesperson Brian Brackens.The Pentagon will resume shipments "when the environment in Iraq is safe enough," Brackens said, according to the report. On Sunday, three missiles landed on the US embassy's territory in Baghdad, with one of the missiles hitting the embassy’s restaurant. Several people were reportedly injured.
US Military Announces Three New Bases in Iraq After Iraqis Demand Full Withdrawal -Less than a week after millions of Iraqis took to the streets demanding the U.S. military leave for good, the United States announced that is planning to build three new military bases in Iraq, according to military news service Breaking Defense. The three sites chosen – Erbin, Sulimania and Halabja – are all extremely close to Iran, with Halabja (the site of the 1988 chemical weapons attack) just eight miles from the border.The news will come as a shock to the Iraqi parliament, who earlier this month voted overwhelmingly (with some abstentions) to expel American forces from the country. But the U.S. government has flatly refused to leave. “At this time, any delegation sent to Iraq would be dedicated to discussing how to best recommit to our strategic partnership — not to discuss troop withdrawal, but our right, appropriate force posture in the Middle East,” said State Department spokesperson Morgan Ortagus, adding, “We strongly urge Iraqi leaders to reconsider the importance of the ongoing economic and security relationship between the two countries… We believe it is in the shared interests of the United States and Iraq to continue fighting ISIS together.” Earlier this month the U.S. decided to send an extra 3,000 troops to the region.President Trump responded by threatening sweeping mass punishments against the Iraqi people. “We’re not leaving unless they pay us back for it…If they do ask us to leave, if we don’t do it in a very friendly basis, we will charge them sanctions like they’ve never seen before ever,” he said. U.S.-led sanctions on Iraq in the 1990s are thought to have killed over one million people, including over half a million young children. Successive U.N. diplomats in charge of Iraq during the sanctions denounced them as genocide against its people. Trump said his sanctions would make the ones on Iran look tame by comparison. “If there’s any hostility,” he said, “we are going to put sanctions on Iraq, very big sanctions.” Trump also threatened to commit genocide against the people of Iran, destroying their cultural heritage sites in a move condemned by many and compared to the Taliban’s destruction of the world-renowned Buddhas of Bamyan in Afghanistan.
Lula: We knew that Blair knew there were no Iraqi WMDs - Former Brazilian President Lula da Silva revealed in an exclusive interview with Brasil Wire and the Michael Brooks Show that Brazil already knew that then UK Prime Minister Tony Blair was lying about Iraq possessing weapons of mass destruction in the build up to the Iraq war. Lula says that they knew that Blair knew Saddam Hussein did not possess such weapons, through Brazilian diplomat and director general of the OPCW, José Bustani, as the UK Prime Minister used the phantom weapons to make a worldwide case for an invasion of the middle eastern country. The invasion is now regarded as a catastrophic decision, which cost a million lives and is blamed for triggering a spiral of violence and suffering which continues to this day. Iraq this month demanded the exit of all US forces from the country. “I had a good and respectful relationship with Tony Blair. And I had a good relationship with Gordon Brown. Those were the two (UK) governments with which I had contact. Unfortunately the role of Tony Blair in deciding to enter the war in Iraq was regrettable. He knows it was regrettable. He suffers aggression today on the streets of London because of the war in Iraq.” remarked Lula, as he recalled his relations with the British Government during his 2003-2011 presidential terms “And he knew there were no chemical weapons in Iraq.” Lula stated. “Do you know why we also knew about this? It was Ambassador Bustani. He was the the secretary who dealt with chemical weapons. And he exausted himself saying, “they don’t have them”. Because he said they didn’t have them, the Americans demanded that (Lula’s predecessor) Fernando Henrique Cardoso remove Bustani, and he was removed.” Lula explained.
Another US Soldier Dies In Syria Under Trump's Secure The Oil Mission - A year after four Americans died in a bomb blast in northern Syria - the single deadliest day for the some 700 troops still there - another US solider has died. A 22-year-old U.S. Army Reserve soldier identified by the Pentagon as Spc. Antonio Moore was killed Friday in a vehicle rollover accident. His combat engineering unit based out of North Carolina was conducting a route clearing operation in Deir Ezzor province in Syria's east, where US forces have been supporting Syrian Kurdish forces (SDF) in "securing the oil fields" — as President Trump has recently described the mission. Though numbers have varied, most reports put current troops levels in Syria at over 500, with the AP in a new report saying 750 troops deployed in the country, citing Defense Department officials. An official Army statement issued Saturday reads: “The 363rd Engineer Battalion is deeply saddened at the loss of Spec. Antonio Moore.” It continued: “Antonio was one of the best in our formation. He will be missed by all who served with him. We will now focus on supporting his family and honoring his legacy and sacrifice.” Moore's reserve unit - 363rd Engineer Battalion, 411th Engineer Brigade, out of Knightdale, N.C. - was only somewhat recently established, in 2015, and includes only 100 service members.
Iran’s Bid to Integrate With Global Economy Coming to an End - Iran’s six-year push to integrate with the global economy appears to be coming to an end. On Monday, Iran threatened to withdraw from its last remaining commitments to the 2015 deal that limited its nuclear program in exchange for the lifting of international sanctions. On the same day, Foreign Minister Javad Zarif pulled out of this week’s World Economic Forum, the global economy’s annual networking event in Switzerland. The moves follow a speech by Supreme Leader Ayatollah Ali Khamenei on Friday, in which he accused Europe of joining the U.S. campaign to “bring Iran to its knees.” His regime had hoped the so-called EU-3 -- Britain, France and Germany -- would help Iran to circumvent U.S. President Donald Trump’s return to “maximum pressure” sanctions by upholding the nuclear deal. But that no longer seems feasible, if it ever was. The EU-3 last week said they would trigger a dispute mechanism at the United Nations Security Council that’s likely to finally kill the so-called Joint Comprehensive Plan of Action. The deal lay at the heart of President Hassan Rouhani’s strategy of opening up to international markets in order to answer the Islamic Republic’s perennial dilemma of how to meet popular economic expectations, while still maintaining defiance of the U.S.
20,000 US Troops Have Surged Into Middle East Since Last Spring to ‘Counter Iran’ - — The Associated Press reports a staggering surge of US troops into the Middle East since last Spring: “Over the past eight months, the United States has poured more than 20,000 additional troops into the Middle East to counter the escalating threat from Iran that peaked with the recent missile attack on American forces in Iraq.” This despite President Trump’s multiple prior pledges to “bring the troops home” especially related to Syria and Iraq. Following the Soleimani assassination and subsequent Iranian ballistic missile retaliation on Ayn al-Assad airbase, where Friday it was reported that 34 soldiers suffered traumatic brain injuries (a dramatically increased figure up from the prior 11), this trend in force build-up looks to continue. Here’s breakdown of the staggering numbers via the AP: The top commander for US forces in the Middle East told a gathering of Marines and sailors during a speech aboard the USS Bataan on Thursday they could be there for “quite a while”. Gen. Frank McKenzie addressed the question of any near-term potential draw down of the extra forces: “we’ll work that out as we go ahead,” he said. Underscoring the Iran constitutes a serious “threat” he admitted:“I’m not sure how long you’re going to stay in the theater. We’ll work that out as we go ahead. Could be quite a while, could be less than that, just don’t know right now.”On the Iran threat specifically, he said further, “I do believe that they are deterred right now, at least from state-on-state actions by our response. And so I think that while that threat remains, I think we’re in a period where they’re certainly not seeking to escalate anything.” Ironically Gen. McKenzie’s words were given a day before possibly up to one million Iraqis protested across the country Friday demanding an end of America’s military presence.
No, Iran Won’t Have A Nuclear Bomb ‘In A Matter Of Months’ American Conservative. Scott Ritter. As Iran puts the final nail in its nuclear agreement with the West, hyperbolic headlines have warned that the Islamic Republic could have a nuclear weapon “within months.” Politicians have said it, pundits have repeated it, and hawkish national security experts proclaim it with barely disguised excitement. Don’t believe it for a second. The entire formulation of Iran’s “breakout period” after which they would present their first and only nuclear bomb is based on an artificial construct—great for talking points and fear mongering from podiums, but in no sense a scientific reality. The fear of an Iranian nuclear weapon has been at the top of a list of so-called malign activities undertaken by the Iranian government that the Trump administration alleges threaten regional security and by extension U.S. national interests. While the issues on this list are not new (having defined U.S.-Iranian relations for the better part of two decades), the stakes involved have never been higher. The framework of agreements that have held the Iranian nuclear program in check during this time have deteriorated to the point of collapse, and the ramifications promise to be dire. At the heart of the crisis with Iran is a nuclear enrichment program that has been subjected to an unprecedented degree of international scrutiny, and about which there is virtually nothing that is unknown in terms of its present composition and functioning. As a signatory to the nonproliferation treaty (Iran signed the NPT in 1968 and ratified it in 1970), Iran’s nuclear activities are subjected to safeguards inspections carried out under the auspices of the International Atomic Energy Agency (IAEA).
Pentagon Now Says 50 US Troops Suffered Brain Injuries in Iran’s Missile Strike - — The Pentagon casually slipped in an update to their ever evolving casualty numbers from the Jan.8 Iranian ballistic missile attack on Ayn al-Assad air base in Iraq, which the American public was initially told resulted in “no casualties” and that “all is well”: The Pentagon now says 50 American military service members suffered traumatic brain injuries following Iran’s Jan. 8 missile attack on a base in western Iraq that was housing the U.S. military personnel. — ABC News“Of these 50, 31 total service members were treated in Iraq and returned to duty, including 15 of the additional service members who have been diagnosed since the previous report,” Pentagon spokesperson Lt. Col. Thomas Campbell said late Tuesday. “Eighteen service members have been transported to Germany for further evaluation and treatment.”To review, Trump’s first address to the nation following the major unprecedented attack on US forces in retaliation for Qassem Soleimani’s death indicated “no casualties” and that “all is well!”. Two weeks later, the Pentagon stunned reporters by indicating 11 US troops actually suffered traumatic brain injury (TBI). And two days after this the count shot up to 34, and it became evident that among these up to half had serious enough injuries to be evacuated to hospitals outside the country, with most transferred to Germany, and some later taken back to the United States for continued observation. Four days following last Friday’s “34” update, we’re now up to 50 troops injured. In summary, the figures went from zero to 11 to 34 to 50… and who knows where from here. It must also be remembered that US officials and media pundits slammed Iranian state media for its repeat claims that the Jan.8 ballistic missile attack resulted in major casualties. Iranian media went so far as to report emergency medical evacuations of US personnel from the scene. US officials scoffed and laughed at this “fake news” at the time — and just days ago the semi-official major Iranian media outlet Fars News had its English news website taken offline by order of US Treasury for sanctions violations and state propaganda.
Iran's Fars News Knocked Off Web By US Treasury Order - Iran's well-known state media outlet Fars News Agency says US sanctions have knocked it off the internet. As of Friday and into early Saturday the en.farsnews.com domain remained inaccessible while the outlet says it quickly alternately established English content on https://en.farsnews.ir/, which remains live. Iran says the US Treasury Department shut down international access to its English news site due to new regulations related to US sanctions.https://t.co/Y1sm3SQURo Domain Blocked Under US Sanctionshttps://t.co/JK7Worzcpa pic.twitter.com/U2wNL78mYH— Fars News Agency (@EnglishFars) January 25, 2020 It's not the first time state-linked Iranian media outlets have had access to Western audiences blocked, with PressTV complaining in recent months about being blocked on YouTube and other popular social media sites; however it's less common for their domains to be blocked. Fars outlet issued a Farsi language tweet Friday which reads according to a translation: "From an hour ago, audience access to the Fars News Agency site has encountered a problem due to being placed on America's sanctions list, and the technical part of [this] News Agency is working to create access for the audience on the farsnews.ir domain."It further said administrators of its state-controlled site were notified Friday that it was being shut down after the US Treasury Department ordered the drastic action it due to sanctions violations.
“It’s a Disaster for Europe To Be So Subservient to the U.S” - Der Spiegel. In an interview, Iranian Foreign Minister Mohammad Javad Zarif warns of the threat of escalation in the nuclear dispute. He says Tehran won't rule out negotiations with Washington, even after General Qassem Soleimani's assassination, if the U.S. changes course and lifts sanctions. He also shows understanding for the protests against the government.
Russian mercenaries, a CIA-linked general and lots of oil: Explaining Libya’s war - Libya has seen its oil production slashed by 75% in just one week as warring factions within the country attempt to use the key commodity to seize control. Output from Africa’s third-largest oil producer has plummeted from around 1.2 million barrels per day (bpd) to just over 320,000 bpd, its state oil company said — an estimated loss of $256 million in revenue. That’s thanks to pipeline closures and blockades of export terminals last week by rebel groups under the command of rogue general Khalifa Haftar, whose militias are battling the U.N.-recognized Government of National Accord (GNA) in Tripoli to take control of the Libyan capital. Fighting in Libya resurged over the weekend, torching a cease-fire brokered by Russia and Turkey in early January. The move is a power play for Haftar, the charismatic leader whose fleet of Libyan militia groups, collectively known as the Libyan National Army (LNA), launched an assault on Tripoli last April that’s taken thousands of lives and displaced more than 140,000 people. The rabidly anti-Islamist Haftar is seen as the strongest power player within Libya — whose nearly decade-long conflict now involves several international powers — and his militias control the country’s east and much of its south. The east is home to the lion’s share of Libya’s oil facilities. The output drop in the OPEC state sent the price of Brent crude spiking last week and could be devastating for the Libyan economy. But regional analysts are calling it a quick leverage grab and questioning how long it will last, while noting that ample global crude supply and fears over China’s coronavirus are keeping a heavy lid on oil prices. The 76-year-old commander, who is credited with a major role in defeating Islamic State militants in 2016 alongside U.S. airstrikes, also happens to be an American passport holder. A rival of longtime Libyan dictator Moammar Gadhafi, Haftar lived in the Virginia suburbs for several years while working as a CIA asset to plot against the former leader. After the Arab Spring, he apparently spent several years back in Virginia to “enjoy his grandchildren,” he told the New Yorker Magazine in a 2015 interview. So Haftar poses a massive headache for the U.S. A former ally, they can’t exactly sideline him; but his violent assault for power stands in the way of a democratic Libya that Washington had hoped for after its NATO intervention helped topple Gadhafi in 2011 during the Arab Spring.
Turkey’s Erdogan: No military solution to the conflict in Libya -Unilateral recourse to force will not bring peace to Libya, Unilateral recourse to force will not bring peace to Libya, Turkish President Recep Tayyip Erdogan cautioned on the first of a two-day visit to Algeria. "We reiterated that a solution to the conflict in Libya cannot be achieved through military means," Erdogan said during a press conference with his Algerian counterpart, Abdelmadjid Tebboune, on Sunday. "We are constantly in touch with neighbouring countries and major international actors to reach a permanent ceasefire and a return to political dialogue." Erdogan earlier in the day lambasted eastern-based military commander Khalifa Haftar for violating a fragile truce between his Libyan National Army (LNA) and forces loyal to the UN-recognised Government of National Accord (GNA). Since the 2011 overthrow of Muammar Gaddafi, Libya has hardly had a stable government. Fighting escalated in April after Haftar launched an offensive to wrest control of the capital, Tripoli, from the GNA, headed by Prime Minister Fayez al-Sarraj. Haftar, who is affiliated with a rival government in the east and enjoys the backing of, among others, the United Arab Emirates, Egypt and France, says his military campaign is aimed at "cleansing" western Libya of "terrorist groups". His critics accuse him of being a new Gaddafi in the making.:
The War in Libya Will Never End - General Khalifa Haftar and his Libyan National Army (LNA) continue to partly encircle Libya’s capital, Tripoli. Not only does the LNA threaten Tripoli, but it is within striking distance of Libya’s third-largest city, Misrata. Both Tripoli and Misrata are in the hands of the Government of National Accord (GNA), which is backed by the United Nations and—most strongly—by Turkey. The second-largest city—Benghazi—is in the hands of Haftar’s LNA. Haftar’s LNA is backed by Saudi Arabia, Egypt, and Russia. There has always been a whiff of suspicion that Haftar himself is an old CIA asset—having lived under the shadow of the CIA headquarters in Langley, Virginia, for decades. What the NATO war on Libya did to that country is to turn it into a battlefield of other people’s ambitions, to reduce Libya into a chessboard for a multidimensional game that is hard to explain and even harder to end. On January 19, the United Nations and the German government held a conference in Berlin on the Libyan question. Curiously, the two belligerent parties from Libya were in Berlin but did not attend the conference. General Haftar of the LNA and Fayez Serraj of the GNA stayed in their hotels to be briefed by German Chancellor Angela Merkel and the UN representative on Libya Ghassan Salamé. In 2012, the UN had said that no conference should be held that is not “inclusive” and does not have the stakeholders at the table. Nonetheless, the point of this exercise was not so much to create a deal within Libya as to stop the import of arms and logistics into Libya. “We commit to refraining from interference in the armed conflict or in the internal affairs of Libya,” agreed the external parties, “and urge all international actors to do the same.” External backers of each of the sides—Egypt, France, Russia, Turkey, the United States—were all signatories of this agreement. You can imagine that none of them will take it seriously. Merkel hastened to Istanbul after the Berlin conference to solidify the pact she has made with Turkey’s President Recep Tayyip Erdoğan, who then flew to Algeria to say that he would not appreciate external intervention into Libya. It is not Erdoğan alone who sounded bewildering—all the other leaders who came to Berlin made similar remarks. You stay out of Libya, they said, but we will have to be involved in any way we think appropriate. Turkey has provided the GNA with arms and logistical assistance, and it has helped bring a few hundred Syrian jihadis to Libya to assist the GNA-backed militias. The UN released a statement recently with a clear indication that the deal is not worth its paper. “Over the last ten days,” the UN notes, “numerous cargo and other flights have been observed landing at Libyan airports in the western and eastern parts of the country providing the parties with advanced weapons, armoured vehicles, advisers and fighters.” It does not name the countries that continue to violate the embargo, but everyone knows who they are.
Turkey Deploys Warships, Air Defenses & Heavy Armor To Libya - The Libyan National Army (LNA) announced that Turkey had deployed two Turkish warships, anti-aircraft missiles and air defense systems to the capital city of Tripoli.In addition to this accusation, the LNA said the Turkish military sent at least 3,000 Syrian militants to Libya since late December. “The number of Syrian mercenaries transported by Turkey to Libya exceeded three thousand,” the Libyan National Army spokesman, Major General Ahmed al-Mesmari said at a press conference yesterday evening, noting that “Ankara transported dangerous terrorists from Syria to Libya through the Misrata and Mitiga airports and Port of Tripoli.”Weeks after the Turkish government announced plans to send various forces to Libya to support that country's internationally recognized government, there are now indications that those deployments are well underway. Two Turkish Navy Gabya class frigates have appeared off the coast of Tripoli, the official Libyan capital, and there are reports emerging now that Turkish troops and heavy armor are arriving in that city, too.The French President, Emmanuel Macron, accused Turkey of violating the pledges it had made during the Berlin conference held on January 19 to settle the Libyan crisis, noting that France had monitored during the past days ships transporting Syrian mercenaries to Libya. — The DriveBig News: Turkish Frigates Appear Off Tripoli, Libya amid Reports of Turkish Troops and Tanks Landing Ashore Islamist Erdogan's warships, soldiers & tanks arrive from Turkey to support GNA militias & Syrian mercenaries against Libyan Parliament-backed LNA https://t.co/Tyj9MNgoHo— James Wheeler (@wheelertweets) January 29, 2020Macron said, during a press conference with Greek Prime Minister Kyriakos Mitsotakis in Paris, that “Turkey has broken its promises it made during the Berlin conference.” Macron further said, “In recent days, we detected Turkish ships carrying Syrian mercenaries who arrived in Libya.”
Turkey Demands Greece "Demilitarize" 16 Aegean Islands Amid Gas Drilling Dispute - At a moment tensions are soaring over Turkey's expansive East Mediterranean claims, and after starting early last summer it began sending oil and gas exploration and drilling ships off Cyprus' coast, Ankara is demanding that Greece “demilitarize” its islands in the Aegean Sea, reports Bloomberg. The demand from Turkish Defense Minister Hulusi Akar, who formally requested Greece move to withdraw armed forces and weaponry from 16 Aegean islands near Turkey on Wednesday, is rich given it's Turkey that's been provocatively sending warships and military jets to accompany illegal gas drilling in the area, something lately condemned by the EU. “Greece, arming 16 out of 23 islands with non-military status, in violation of agreements in the Aegean sea, should act in accordance with international law,” said Defense Minister Akar, cited in state-run Anadolu Agency. “We expect Greece to act in line with international law and the agreements it has signed,” he added. Though becoming increasingly internationally isolated over the drilling issue in EU-member Cyrpus' Exclusive Economic Zone (EEZ), Turkey has remained unmoved and at times is positively boastful about it. Not shying away from admitting Turkish maritime claims now stretch from Cypriot waters all the way to Libya (based on a controversial recent maritime boundary 'deal' signed with the Tripoli Government of National Accord), Akar further had this to say according to state media: In addition to the fight against terrorism, Turkey's activities are ongoing in the Aegean, Eastern Mediterranean, off Cyprus, and Libya, Akar said, adding that they are carried out in accordance with international law and the territorial integrity of the countries. Turkey is a guarantor country for the Turkish Republic of Northern Cyprus (TRNC) and is committed to fulfilling its responsibilities, he said. "The Cyprus issue is our national issue. Whatever we need to do there, we've done so far and will continue to do so. We will continue to protect the rights of both our own and Cypriot brothers," he added.
Turkey Moves Toward Passage Of Controversial "Marry Your Rapist" Law - We have often discussed the struggle of women in Muslim countries in resisting religious-based requirements for coverings and limitations on their movements and interactions. Turkey was once the exception among these countries as a secular, modern nation. That was before the rise of Islamic parties under the authoritarian President Recep Tayyip Erdogan. Turkey under Erdogan has already rolled back on protections for girls and women in abuse cases. Now the country is considering a horrific law aptly called the “marry-your-rapist” bill. Under this legislation, men accused of having sex with underaged girls could avoid punishment if they marry their victims. We have discussed the continuing practice of forced marriages and sexual abuse of girls in Muslim countries, including clerics who insist that girls as young as nine are ready for marriage. This law would effectively allow men to buy their way out of punishment by striking a deal with a victim’s family. Since many girls come from poor families, the opportunity to buy your way out of a rape case is high. Not only has Erdogan destroyed the country’s secular traditions but eviscerated civil liberties and press freedoms. Women quickly felt the pressure of his Islamic parties. Erdogan himself declared that a woman who did not bear children was “incomplete” and that equality with men was “against nature.” He declared bluntly: “You cannot put women and men on an equal footing. It is against nature.”
Yemen's Houthis seize key route in deadly clashes around capital - Yemen's Houthi rebels made gains against government troops north and east of the capital Sanaa on Monday, seizing a strategic road in deadly fighting, loyalist military officials said. The pro-government sources told the AFP that the rebels had captured the route that connects Sanaa to the provinces of Marib, to the east, and Jawf to the north. Dozens have been killed or wounded in the fighting around Sanaa in the past 48 hours, according to the military sources, but they were not able to give precise figures. "The Houthis are now seeking to take Hazm, the capital of Jawf province," one official told AFP on condition of anonymity. The rebels were now just five kilometres from the city, this source added. Before the latest upsurge in fighting, Jawf province had been mostly controlled by the Houthis, with its capital still in the hands of the government. Marib province is partly under Houthi control, with its capital also held by government forces. The renewed fighting erupted nearly two weeks ago with a 18 January missile strike on a pro-government military camp that killed 116 people.
Yemen's Houthis Launch Failed Missile Attack On Saudi Aramco Facility - Yemen's Houthis claimed Wednesday its Shia militants targeted Saudi Aramco facilities with a missile strike in Jizan on the Red Sea in the kingdom's south, which caused a brief surge in oil, jumping above $54 a barrel in New York, before it slipped back down to a nearly 3-month low on reports that no missiles reached their intended targets, leading to skepticism about the Houthi statement. An hour after the announcement briefly rattled oil markets, a Saudi oil official indicated that all missiles were intercepted by Saudi defenses — though details still remain unclear and unconfirmed, especially the timeline of when the attack allegedly happened. It marks the first such Houthi attack on Aramco facilities since the major Sept.14 drone and missile strikes which severely damaged two facilities deep inside Saudi Arabia, knocking all the country's production offline for at least a day. Reuters reports: "Houthi military spokesman Yahya Saria did not give a timeframe for the assault." State oil giant Aramco itself has not issued confirmation or denial. And further, the Houthi military statement indicated "the group that has been battling a Saudi-led military coalition for nearly five years had also targeted non-energy Saudi facilities near the border with Yemen," according to Reuters. Typically either the Saudis or Houthis themselves release some level of video evidence for such major rocket attacks. In past rocket attacks from Yemen onto Saudi soil, Riyadh has released images of missile debris which fell short of the intended target. The Saudis have yet to provide proof that an "intercept" did in fact take place. The Jazan facility, while not a crude oil production or major export site, is home to a 400,000 barrel-a-day Aramco refinery, which is further expected to operate at full capacity by the end of 2020.
U.S. Navy Confirms Incident Off Coast Of UAE As Oil Tanker Burns - Footage of a crude tanker off the coast of the Emirate of Sharjah, UAE, surfaced on Twitter about an hour ago.Thick black smoke is seen billowing from the mid-section of a massive crude tanker moored off the coast.BREAKING: Footage of Tanker on fire off the coast of the Emirate if Sharjah, UAE #oott #tanker #fire pic.twitter.com/32GDx3YUdI— Katie McQue (@katiemcque) January 29, 2020 The U.S. Navy's Fifth Fleet has just confirmed there's an incident off the coast of UAE'S SHARJAH but didn't describe what was happening. The "incident" comes hours after Yemen's Houthi rebels launched a missile attack on a Saudi Aramco facility, but an official report has indicated missile defense systems intercepted the projectiles before they could hit their intended targets. Tensions in the Middle East are surging again as crude plunges almost 20%, or just about the technical level of declaring a bear market, in 14 sessions as the coronavirus outbreak across China has traders more worried about a reduced demand outlook.
Trump leaps into Middle East fray with peace plan that Palestinians denounce - (Reuters) - U.S. President Donald Trump on Tuesday proposed creating a Palestinian state as part of a Middle East peace plan, drawing Palestinian condemnation for imposing strict conditions and agreeing to let Israel maintain control of long-contested West Bank settlements. Trump announced his plan for Israeli-Palestinian peace at a White House event with embattled Israeli Prime Minister Benjamin Netanyahu standing at his side. It includes what Trump called a four-year freeze by Israel on new settlement activity. Although Trump’s stated aim was to end decades of conflict, the plan he advanced favored Israel, underscored by the absence of Palestinians from Trump’s announcement. It seemed unlikely to immediately advance Israeli-Palestinian talks that broke down in 2014, but the plan was called “an important starting point for a return to negotiations” by the United Arab Emirates. Saudi Arabia and Egypt also offered encouraging statements. Palestinian President Mahmoud Abbas, however, mocked what Trump has called the “deal of the century,” describing it as the “slap of the century.” Palestinians have refused to deal with the Trump administration in protest at pro-Israel policies such as moving the U.S. Embassy from Tel Aviv to Jerusalem, the eastern part of which is sought by the Palestinians. Trump set in motion a four-year timeline for Palestinians to agree to a security arrangement with Israel, halt attacks by the Islamist militant group Hamas and set up governing institutions in order to establish a Palestinian state with its capital in Abu Dis, a part of east Jerusalem. That too poses a potential problem for Palestinians. Abu Dis is a West Bank village just east of the Israeli municipal boundaries for Jerusalem. Palestinians living in Abu Dis are cut off by a high concrete Israeli security wall and checkpoints. Palestinians reject any proposal that does not envision a Palestinian capital in all of East Jerusalem, which includes the walled Old City. Trump’s plan says that barrier should serve as a border between the capitals of the two states, adding that Jerusalem should remain Israel’s undivided, sovereign capital.
Deal of the century offers non-sovereign Palestinian state - US President Donald Trump’s deal of the century offers a non-sovereign Palestinian state which would not have an army or call East Jerusalem its capital, Rassd reported yesterday. Quoting Israeli newspaper Yedioth Ahronoth, Rassd said Trump expects Palestinian Authority (PA), PLO and Fatah President Mahmoud Abbas to reject it. He will, therefore, give the deal a four-year-preparation period in the hopes of Abbas’ successor accepting it. Yedioth Ahronoth reported Israeli officials saying that the non-sovereign Palestinian state will be established on 70 per cent of the area of the occupied West Bank with Jerusalem’s neighbourhood of Shuafat as its capital. Jerusalem, including Al-Aqsa Mosque and all other holy sites, would remain under Israeli control. The Muslim and Christian sites would, however, be administered jointly by the PA and Israel. Between 30 and 40 per cent of Area C in the occupied West Bank will be annexed by Israel. Fifteen Israeli Jewish settlements would remain isolated and 60 settlement posts with 3,000 settlers will be dismantled. According to the Oslo Accords, the occupied West Bank is divided into three areas: A, B and C. Area A, which includes 18 per cent of the West Bank, is under full administrative and security control of the PA. Area B, which includes 21 per cent of the occupied West Bank, is under the administrative control of the PA and the security control of the Israeli occupation. Area C, which includes 61 per cent of the West Bank, is under full administrative and security control of Israel. During the four years of preparation, building in Area C is to be frozen completely.
Trump unveils farcical Mideast “peace plan” as Netanyahu is indicted - Donald Trump joined with Israeli Prime Minister Benjamin Netanyahu at the White House Tuesday to publicly unveil what the US president described as his “vision for peace” in the Middle East. It was a farcical proposal, endorsing all of the policies of the Israeli right while guaranteeing rejection by the Palestinian people. The timing of the release of the “vision,” which is supposedly the brainchild of Trump’s son-in-law Jared Kushner and the product of over two years of work, was patently set to meet the immediate political needs of both Trump and Netanyahu. It came as Trump’s impeachment trial in the US Senate continued into its second week and only hours after Netanyahu was formally indicted on charges of fraud and bribery. The indictment came after Netanyahu dropped a futile attempt to win a vote in the Israeli Knesset granting him immunity from prosecution. Trump’s announcement clearly was aimed at boosting the badly tattered image of Netanyahu, who faces his third election contest in less than a year. During the last round of voting, Trump similarly tried to promote the Israeli prime minister’s chances by announcing US recognition of Israel’s illegal claim to the occupied Syrian Golan Heights. The Trump administration has also recognized Jerusalem as Israel’s capital, moving its embassy there, and has cut off hundreds of millions of dollars in aid to the Palestinians. Late last year, it announced that it no longer regarded Israeli settlements on occupied Palestinian territory as “inconsistent with international law.” In what amounted to self-parody, Trump proclaimed a “historic breakthrough” for the plan on the grounds that he had succeeded in winning approval from both Netanyahu and his rival in the Israeli elections set for March 2, Benny Gantz, the Blue and White Party candidate, who is a former chief of the Israel Defense Forces (IDF). Gantz, in an attempt to offset the obvious effort to boost Netanyahu’s status as a world statesman, flew to Washington on Monday and met with Trump privately before flying back to Israel for the anticipated vote on Netanyahu’s bid for immunity. That this “breakthrough” included absolutely no discussion, much less agreement, with any Palestinian representative was taken as a matter of course. The US president allowed that the Palestinians would have four years to accommodate themselves to the US-Israeli diktat, while his son-in-law threatened that this would be their “last chance” to obtain an independent Palestinian state.
Israel Will Vote Sunday To Annex West Bank Lands Delineated In Trump's 'Peace Plan' -Immediately following Trump's unveiling details of his 'deal of the century' Mideast peace plan alongside Israeli PM Netanyahu at the White House, Netanyahu announced that Israel will move forward to vote Sunday to annex some 30% of all West Bank territory.Netanyahu said that "Israel will apply its laws to the Jordan Valley and to the Jewish communities in Judea and Samaria." This means a million or so Palestinian residents could come under Israeli rule, which sparked a fierce backlash both internationally and among some members of US Congress. Look on Bibi’s face tells you how good #DealOfTheCentury is to Palestinians pic.twitter.com/15RwftvAEC — EHSANI2 (@EHSANI22) January 28, 2020 "This is not a peace plan. It is theft. It is erasure," Left-wing congresswoman Ilhan Omar tweeted following Trump and Netanyahu's midday remarks. It was immediately seen by many pundits as setting up Israeli hardliners for a big land grab which concedes all to Israel without even consulting the Palestinian side on the 'deal', per The Washington Post: The package is expected to propose a redrawn border between Israel and the West Bank that would formalize Israeli control over large Jewish settlements. It would give U.S. blessing to some forms of Israeli security control over the territory Israel seized in 1967 and has occupied since, according to two people familiar with the plan who spoke on the condition of anonymity before the plan’s release. Another Democrat, Michigan representative Andy Levin, slammed the plan for not in reality being a "two-state solution" - instead he noted it's "in name only". This is what a future State of Palestine can look like, with a capital in parts of East Jerusalem. pic.twitter.com/39vw3pPrAL — Donald J. Trump (@realDonaldTrump) January 28, 2020"Don't be fooled," Rep. Levin wrote on Twitter. The proposed plan not is not promising "a lasting peace that will protect Israel's future as a democratic homeland for the Jewish people or fulfill Palestinians’ aspirations for self-determination," he said. Aside from Hamas and the Palestinian Authority under Abbas immediately rejecting the plan to which they were not privy, nor had any negotiating role (after already declaring it would be dead on arrival), Turkey was among the first internationally to condemn it.
Palestinian Authority cuts ties with Israel and U.S. - (Reuters) - The Palestinian Authority has cut all ties with the United States and Israel, including those relating to security, after rejecting a Middle East peace plan presented by U.S. President Donald Trump, Palestinian President Mahmoud Abbas said on Saturday. Abbas was in Cairo to address the Arab League, which backed the Palestinians in their opposition to Trump’s plan. The blueprint, endorsed by Israeli Prime Minister Benjamin Netanyahu, calls for the creation of a demilitarized Palestinian state that excludes Jewish settlements built in occupied territory and is under near-total Israeli security control. “We’ve informed the Israeli side ... that there will be no relations at all with them and the United States including security ties,” Abbas told the one-day emergency meeting, called to discuss Trump’s plan. Israeli officials had no immediate comment on his remarks. Israel and the Palestinian Authority’s security forces have long cooperated in policing areas of the occupied West Bank that are under Palestinian control. The PA also has intelligence cooperation agreements with the CIA, which continued even after the Palestinians began boycotting the Trump administration’s peace efforts in 2017. Abbas also said he had refused to discuss the plan by with Trump by phone, or to receive even a copy of it to study it: “Trump asked that I speak to him by phone but I said ‘no’, and that he wants to send me a letter ... but I refused it.” Abbas said he did not want Trump to be able to say that he, Abbas, had been consulted. He reiterated his “complete” rejection of the Trump plan, presented on Tuesday.
Israel's settlements: Over 50 years of land theft explained - Al Jazeera interactive - To the casual visitor or tourist driving through the occupied West Bank or Jerusalem, Israeli settlements may appear as just another set of houses on a hill. The middle-class suburban style townhouses, built fast and locked in a grid of uniform units, stand like fortified compounds, in direct contrast to the sprawling limestone Palestinian homes below. Settlement homes, mostly constructed of cement with a cosmetic limestone cladding, tend to fashion a similar look: American-style villas topped by red-tiled roofs and surrounded by lush, neatly trimmed green lawns. By 2018, there were 611,000 Israeli settlers living in 250 settlements in the occupied West Bank, including East Jerusalem, in contravention of international law. The largest settlement, Modi'in Illit, houses more than 70,000 Israeli Jews in the occupied West Bank. The mega-settlement has its own mayor, as well as schools, shopping malls and medical centres. Some settlements even have their own universities. Today, between 600,000 and 750,000 Israelis live in these sizeable settlements, equivalent to roughly 11 percent of the total Jewish Israeli population. They live beyond the internationally recognised borders of their state, on Palestinian land that Israel occupied in 1967, comprising East Jerusalem and the West Bank. Since then, the Israeli government has openly funded and built settlements for Israeli Jews to live there, offering incentives and subsidised housing. So why have these housing compounds caused so much rancour and been called a threat to the prospect of peace in the Holy Land? Follow this journey to find out.
Families in Disbelief After Israeli Army Kills Three Gaza Teens — On Tuesday afternoon, just before maghrib – the fourth daily Muslim call to prayer – Mohammed Abu Mandel, Salem al-Naami and Mahmoud Saed decided to take a break from their studies and spend some time on family farmland in the northern besieged Gaza Strip. The plan, family and friends told Middle East Eye, was to light a bonfire and relax ahead of the high-pressure tawjihi exams that would mark the end of high school in a few months’ time. But the three 17-year-olds never came home.That evening, Israeli forces shot and killed the three boys, alleging that they had crossed the separation barrier between the blockaded Palestinian enclave and Israel in an attempt to carry out an attack. The teenagers’ families have vehemently rejected the accusations, as they seek to understand what happened to their sons, whose bodies Israel is now withholding. According to a friend of the slain teenagers, who asked not to be named, Mohammed, Salem and Mahmoud gathered in the square of the village of al-Zawayda on Tuesday afternoon after a long day at school.“It was about an hour before sunset, and they decided to go to some farmland owned by Salem’s family,” the friend told MEE. “They just wanted a break from hard studying.”The Naami family’s land is located some 200 metres from the fence that separates Gaza from Israel east of the Maghazi refugee camp. While the area is often monitored by Israeli forces – which enforce a ‘buffer zone’ hundreds of metres into the Palestinian territory – the teenagers regularly came to the area to relax around a bonfire, the friend said.“I had plans at home, so I didn’t go with them,” he recalled. “I was busy and forgot about them, until later that night when I heard the news. I called their families to find out what happened, but none of them had returned home.” At around 11 pm that night, a relative called Mohammed’s father, Hani Abu Mandel, asking in veiled terms if he knew where his son was after reading news about young Palestinians being killed by Israeli forces. Hani said Mohammed was out with his friends, but began to worry. He tried to call his son’s phone, only to get no response.An Israeli army statement said the three teenagers had crossed some 400 metres into Israel and were hiding in a thicket when a military jeep approached them. The army said that the young men threw two objects believed to be explosives at the jeep, prompting soldiers to open fire, killing them all.But Mohammed’s father refused to believe the army’s version of events.“The closest he ever got to resisting [against Israel] was by attending the Great March of Return protests a few times,” Hani said of his son. “He never held a gun, he didn’t participate in any military groups and I’m sure he didn’t know how to make a grenade. “If the boys crossed the border, I bet they did it for entertainment only and were unaware of what the consequences could be. The Israelis are lying.”
US airstrikes in Afghanistan hit ten-year high in 2019 - The US Air Force reported Monday that it carried out more airstrikes in Afghanistan in 2019 than any year in the last decade. Manned and unmanned aircraft dropped 7,423 bombs, topping the previous decade high of 7,362 in 2018. Nearly two decades into its criminal neocolonial occupation, the United States government is dropping an average of 20 bombs on the country per day. The rise in airstrikes has resulted in an increase of civilian casualties at the hands of the US military with a UN report from December finding that American attacks from January to October had claimed the lives of 579 civilians and wounded 306, a third higher than in 2018. Among the US massacres which made headlines last year was a drone strike at the end of November which killed an entire family, including three women, in Khost province. The attack came just one day after President Donald Trump made a Thanksgiving Day photo-op appearance at Bagram Air Base, flying in and out in the dark of night. In September a drone strike in Nangarhar province, along the border with Pakistan, killed 30 farm workers and injured 40 others as they were sleeping after a day’s work picking and shelling pine nuts. By conservative estimates, the 18-year-old US-led war and occupation of the country has directly resulted in the deaths of more than 157,000 people, including 43,000 Afghan civilians, with hundreds of thousands of others dying from the effects of the fighting. More than 3,500 US and other NATO soldiers have lost their lives in Afghanistan and thousands more wounded over the years. Seventeen American soldiers died in Afghanistan in 2019, the highest number since 2015. Even as the number of US troops in the country has fallen to 12,000—down from a peak of 100,000 during Barack Obama’s surge in 2009—and 4,000 more expected to leave the country soon, the Pentagon has pursued a dramatic increase in the pace of airstrikes as part of the Trump administration’s efforts to pressure the Taliban into agreeing to a settlement in the longest war in American history. Trump threatened last year that he could quickly kill “10 million” Afghans and wipe the country of 35 million “off the face of the Earth,” while insisting that he hoped for a negotiated agreement. The Afghan-Pakistan border was the chosen site for the dropping of the largest nonnuclear weapon in the US arsenal, the Massive Ordnance Air Blast bomb, in April 2017, demonstrating that there were no restraints on what the US military would do in pursuit of American imperialist interests.
Taliban Claims It Shot Down US Spy Plane Over Afghanistan - In a stunning breaking development, video and images from the crash site of a downed aircraft in Afghanistan appears to show that an Air Force airborne communications jet has crashed. The Taliban is claiming responsibility while further saying "high ranking US military personnel" and "CIA members" were on board, though this is not verified."A U.S. Air Force’s E-11A BACN (Battlefield Airborne Communications Node) crashed during the morning on Jan. 27, 2020 in Afghanistan," aircraft analysis site The Aviationist writes, noting identifying features from local video. "The mishap happened in the Taliban-controlled area in Dih Yak, Ghazni. Early reports identified the jet as a passenger aircraft from Ariana Afghan Airlines, but the company immediately denied the reports." Other independent aviation and military analysts were quick to agree that it's an Air Force surveillance and communications aircraft, after international headlines described that a "mystery crash" occurred over Taliban-controlled territory. It's unclear how many crew members and personnel were on board, but local footage doesn't appear to show survivors. Local Afghan government officials have confirmed a plane went down. CBS is reporting the bodies of at least two crew members have been found among the wreckage. The US Army is said to be investigating. Update (0955ET): The Taliban is now claiming that all U.S. military personnel on the U.S. Air Force's E-11A BACN plane were killed. Taliban spokesman Zabihullah Mujahed said, "a special American aircraft which was flying over Afghanistan for an intelligence mission was technically shot down by the Taliban." Mujahed said the crash occurred in the Taliban-controlled Sado Khel area of the Deh Yak district in Ghazni province on Monday. He added that "all on board including high-ranking CIA officers were killed."
Top CIA Chief 'Killed in Downing of US Jet' - Iranian media outlets claim “many CIA” officers were killed in a plane crash in Afghanistan on Monday. The Taliban initially asserted large numbers of Americans were killed, and Russian media and Iranian media then said a senior CIA officer responsible for killing IRGC Gen. Qasem Soleimani was on board. The claim has been greeted with skepticism.Michael D’Andrea’s name began to appear in Farsi media in the wake of the Soleimani killing when articles at Mehr News and Radio Farda claimed he was involved in planning the US operation. Later, on January 27, his name appeared again in rumors after the plane crash. There are many who might have an interest in spreading conspiracies about the Taliban downing high-ranking US intelligence officers. Nevertheless, Iran’s Tasnim News Agency ran with the story, quoting Russian sources that said the “assassin of Soleimani was on the plane and [was] killed in the crash.” It claims that D’Andrea “is the most prominent figure in the US CIA in the Middle East. He has been in charge of operations in Iraq, Iran and Afghanistan.” The Taliban was quoted as saying it had shot down the plane. Tasnim refers to D’Andrea as “Ayatollah Mike” and “the Prince of Darkness,” relying on old US newspaper clippings. Press TV of Iran has also included the report, claiming top CIA officers were killed and repeating rumors about D’Andrea. But the original reports from the Taliban only spoke of a plane being shot down and some CIA members allegedly being on it. The US says an American E-11A plane was shot down in Ghazni province, around 900 km. from the Iranian border.Linking its downing to the Soleimani killing would be a major development and appear to show that Iran is active in Afghanistan with the Taliban,a claim that has been made in the past. Iran watches US movements in Afghanistan carefully and has met with the Taliban recently. Iran has also tried to down US drones that stray near Iran’s border. The US has dropped a record number of bombs on the Taliban in the last year, as it also tried to push it toward the peace table.
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