Fed may need more aggressive interest rate hikes, Powell says - Cooling in the economy appears to have “partly reversed” based on recent data on jobs, consumer spending, production and inflation, Federal Reserve Chair Jerome H. Powell told Congress on Tuesday morning, suggesting the central bank could keep raising interest rates more aggressively than expected just a few months ago. “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated,” Powell told the Senate Banking Committee. “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.” The remarks, given at the start of two days of testimony on Capitol Hill, underscore how quickly the economy continues to shift three years since the pandemic began. They also mark a clear signal from the economy’s most powerful policymaker that the Fed would consider sharper interest rate hikes if officials felt the economy was moving in the wrong direction. Stocks dove into the red Tuesday morning, with the Dow Jones industrial average falling roughly 200 points shortly after Powell began testifying. By mid-morning, the Dow had bounced back a bit and was down 125 points, or 0.37 percent. The S&P 500 fell 0.6 percent, and the Nasdaq 0.5 percent. Should we still be worried about a recession? Fed leaders will convene again March 21 through 22, where they will announce their next rate hike and release a fresh set of economic projections on inflation, the unemployment rate, economic growth and the future path for the baseline interest rate controlled by the central bank control. For much of last year, the Fed sprinted to catch up to inflation that soared to 40-year highs, hiking interest rates by 4.5 percentage points in less than a year. Once rates were high enough to actively slow the economy, the Fed decided to slow its pace, scaling down from a half-point increase in December to a quarter-point in its first meeting of 2023. The plan then was to stick to a few more quarter-point increases until pausing rate hikes altogether, so the full weight of the Fed’s decisions last year could work through the economy. But in a matter of weeks, that plan has been cast into doubt by economists and Fed watchers, who point to a recent crop of hotter-than-expected data and argue the Fed might have to scale up once again. If the Fed did scale back up to a half-point hike, central bankers would be going against many of their messages from the past few months. Officials have argued that smaller, quarter-point increases give them more flexibility as they tip-toe up to the federal funds rate’s ultimate level. Rate hikes also operate with long lags, and policymakers have warned about the risks of going too far, too fast, especially since the Fed has the dual responsibility of controlling prices and also supporting the labor market.Fed leaders have consistently said they will make decisions based on all the data before them, and they typically don’t commit to specific moves weeks before a policy meeting. But Powell’s remarks appeared to answer growing anxiety that the Fed risks falling behind in its inflation fight once again if it sticks to its previous plans of quarter-point hikes.
Powell sees higher peak for interest rates - Chair Jerome Powell said the Federal Reserve is likely to lift interest rates higher and potentially faster than previously anticipated with inflation persisting, an unexpectedly aggressive posture following last month's step down in the pace of hikes. The remarks, coming in testimony before Congress on Tuesday, opened the door to officials lifting the Fed's benchmark lending rate by a half percentage point at the next meeting if upcoming reports on jobs and prices show rate hikes have done little to cool the economy. "The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated," Powell told the Senate Banking Committee. "If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes." Near-term bond yields jumped, stocks fell and the dollar extended gains. Traders bet the Fed is likely to raise rates by a half point at the next meeting later this month, instead of continuing the quarter-point pace from the prior gathering. They now see rates peaking close to 5.6% this year, up from about 5.5% yesterday. Fed officials are trying to cool inflation without triggering a recession that drives up unemployment. "Although inflation has been moderating in recent months, the process of getting inflation back down to 2% has a long way to go and is likely to be bumpy," Powell said. Inflation remains well above the Fed's longer-run objective, he added. The Fed began an aggressive campaign to raise its federal-funds rate a year ago, moving to a range now of 4.5% to 4.75%. Even so, the U.S. economy has shown remarkable resilience. Payrolls increased by more than 1 million in the three months through January, and recent consumption and inflation data point to persistent price pressures. "We do have two or three more very important data releases to analyze before the time of the FOMC meeting," he told lawmakers, referring to the Federal Open Market Committee. "Those are going to be very important in the assessment we have of this relatively recent data."
Powell says that Fed may need more aggressive rate hikes - The Federal Reserve may need more aggressive interest rate hikes as cooling in the U.S. economy and inflation appears to have “partly reversed,” Federal Reserve Chair Jerome Powell said Tuesday. The warning from Powell comes as the Biden administration continues its fight to tame inflation, and could signal a reversal from the central bank after it slowed rate hikes late last year, when there were indications that the U.S. economy may be weakening. But Powell told members of the Senate Banking Committee on Tuesday that recent economic indicators, such as jobs data, spending and inflation show that the cooling that presented itself may have begun to reverse, saying the numbers have come in “stronger than expected.” “Data from January on employment, consumer spending, manufacturing production and inflation have partly reversed the softening trends that we’d seen in the data just a month ago,” Powell told lawmakers. “The breadth of the reversal, along with revisions to the previous quarter, suggests that inflationary pressures are running higher than expected.” Powell said that if the data indicated that faster tightening in the economy is needed, the Fed would be willing to “increase the pace of rate hikes.” Fed leaders are set to meet later this month to consider policy changes, including their next rate hike. They slowed rate increases at the beginning of this year from a half point increase in December to a quarter of a point increase at the start of 2023. Powell faces Senate heat as Fed ramps up inflation fight Obama-era consumer protections could be overruled by SCOTUS. Here’s what’s at stake. The warning from Powell also comes as jobs data keeps surpassing expectations from economists and Fed leaders. The U.S. economy added 517,000 jobs in January and unemployment fell to 3.4 percent, a level not reached since the 1960s. The numbers have thrown into doubt any impression that the economy is weak. Republicans have pounced on inflation numbers as one of their main arguments against the Biden administration, arguing the White House has been unable to tame runaway inflation. But President Biden and his allies point to other strong economic indicators, like job growth and unemployment, as significant accomplishments. ‘
Traders are betting the Fed will hike rates by a half-point in March - Bond traders boosted bets that the Federal Reserve may re-accelerate the pace of rate increases at the policy meeting later this month, after central bank head Jerome Powell said he's ready for faster monetary tightening if economic data justifies it. Interest-rate swaps Tuesday showed a shift in bets for the March 22 meeting, with a half-point hike seen as more likely than a quarter-point move. Traders are betting that the Fed will raise the key borrowing costs by 109 basis points to a peak of about 5.66% by September. Shorter-maturity notes led the jump in yields, deepening the inversion of the yield curve and pushing the two-year Treasury rate above 5% for the first time since 2007. An upside down-shaped curve suggests that traders anticipate a more restrictive policy that will slow down the economy significantly. The Bloomberg dollar index jumped to a level unseen since early January, while the S&P 500 Index tumbled around 1.7%. Two-year yields jumped as much as 13 basis points to 5.02%, while 10-year yields were up just 2 at 3.98%. The gap between the two- and 10-year notes widened as much as 104 basis points, marking the deepest inversion since 1981. The 30-year yields were 113 basis points below two-year rates, marking a record gap between the two. In testimony before the Senate Banking Committee, Powell said the US central bank is likely to raise interest rates higher than previously thought. "If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase" the pace of rate hikes, he said.
The Fed still seems determined to bring about a recession - by New Deal democrat - As I wrote on Saturday, several coincident indicators have stabilized in the past several months (for example, Redbook consumer sales, which has been at roughly 5% YoY for 8 weeks; and payroll tax withholding, which was only up 1.2% YoY for the last 4 months of 2022, but is up 4.7% YoY for the first 9 weeks of this year). This has led to increased speculation that the US will avoid an economic downturn, and maybe even avoid a slowdown altogether. But unless the Fed changes its perspective, I find it difficult to see that happening. First of all, Fed Chairman Jerome Powell as well as other Board members have expressed concern about the continued elevated level of inflation in their favorite metric, the “sticky” price index for core PCE’s. Here’s the long term historical view of that in comparison with the Fed funds rate: And here is the close up since the end of the pandemic recession: For most of the past 60+ years, the Fed funds rate was higher than core PCE inflation. While that wasn’t the case for most of the last 15 years, it is certainly the case that the 5%+ difference during 2021 was the most by which PCE core inflation exceeded the Fed funds rate. Given the historical comparisons, the Fed probably feels that they should hike at least another 0.50% so that the Fed funds rate at very least is equal to the inflation rate. And as I’ve noted a number of times before, this is the steepest rate at which the Fed has hiked interest rates since 1982: Only in 1974, 1980, and 1981 did the Fed hike rates more rapidly. Since it takes time for the effects of Fed rate hikes to spread through the economic system (for example, as I have recently pointed out, housing under construction is less than 1% below its all time record set in October), the downward pressure put on the economy from those rate hikes is far from abating. Further, some members of the Fed have been transparent that they want to see sharp deceleration in wage growth, which as of January was down from its 2021 peak of 7.0%, but still at 5.1% YoY, an extremely strong rate of gains compared with the last 40+ years: In order to do that, they are going to have to bring the game of “reverse musical chairs” to an end. By this game I mean the cycle by which the lowest paying employers at any given time find themselves being unable to fill positions, leading to competition to escalate wages on offer, so as not to be the unlucky loser. So long as the cycle continues, there are always employer “losers,” and so ongoing pressure to continue to raise wages. And that means bringing down the number of job openings compared with actual hires: the latest number of which we will find out in Wednesday’s JOLTS report for January. Another way of looking at the same thing is that the trend line of sales vs. employment, as to which the former has completely outperformed the latter since the rounds of pandemic stimulus: must be brought back into equilibrium. Unless there is going to be a renewed surge in employment gains (*extremely* unlikely), that means bringing down real sales. And in the past, brining down real consumption has *always* meant recession: Under these circumstance, I just can’t see how we can avoid a real downturn in consumption and employment.
Powell faces Senate heat as Fed ramps up inflation fight - Federal Reserve Chairman Jerome Powell took heat from lawmakers Tuesday after warning that interest rates will need to be raised higher as the central bank continues its fight against inflation. “The ultimate level of interest rates is likely to be higher than previously anticipated,” Powell said during a hearing held by the Senate Banking Committee. “If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes,” Powell said. Higher interest rates are meant to lower prices by slowing economic activity, which can also push the economy into a recession and put people out of work. There are currently about 5.6 million people looking for jobs, with a national unemployment rate of 3.4 percent, the lowest in more than five decades, according to Labor Department data. But if the Fed hits its expected year-end unemployment rate of 4.6 percent, there will be more than 7.6 million unemployed people, based on calculations by The Hill. That’s about 2 million more people in need of a job. “[We’re going to have] 2 million people out of work. Can you stop it at 2 million people?” Sen. Elizabeth Warren (D-Mass.) asked Powell. “History suggests that the Fed has a terrible track record of containing modest increases in the unemployment rate.” Lawmakers in both parties responded with concern to Powell’s more aggressive stance on future rate hikes. “When you’re slowing the economy, you’re trying to put people out of work. That’s your job, is it not?” Sen. John Kennedy (R-La.) said to Powell during the hearing. “You’re trying to raise the unemployment rate,” he continued. The Fed’s baseline interest rate is 4.57 percent after the central bank boosted the overnight bank borrowing rate to a span of 4.5 to 4.75 percent. Fed officials had expected to boost that rate to 5.1 percent by the end of this year, according to a projection released in December. But that terminal rate is now expected to be higher and will be updated at the Fed’s rate-setting Federal Open Market Committee (FOMC) meeting later this month. Warren expressed fears the faster rate hikes would push the economy toward a tipping point. “Once the economy starts shedding jobs, it’s kind of like a runaway train. It is really hard to stop,” Warren said. “In fact, 11 out of the 12 times that the unemployment rate increased by a full percentage point within one year, unemployment went on to rise another full percentage point on top of that.” Powell countered that the Fed could not afford to let up its fight against inflation, which he said would bring much deeper pain if left alone. The Fed chief and his colleagues have repeatedly argued that a recession caused by fighting inflation now would pale in comparison to one caused by hyperinflation in the future. “Will working people be better off if we just walk away from our jobs and inflation remains at 5 [or] 6 percent?,” Powell said. Powell also argued that the labor market was too strong to allow inflation to come down on its own, with wages still rising 4.4 percent over the past 12 months, according to Labor Department data. But there’s growing concern among some economists that due to the specific nature of the inflation seen in the aftermath of the coronavirus pandemic, during which the global economy was shut down and then rebooted, interest rate hikes may not be the best tool for containing inflation. That’s because rising prices are generally associated with higher labor costs. But labor share of value in the economy has been falling since the pandemic, while the capital share has been increasing along with record corporate profits. That’s a deep structural change in the way the U.S. economy functions that has been throwing economists for a loop. Lawmakers on Tuesday were also paying attention to these new dynamics. “Would you agree that changes in the size of corporate profits can be one of the factors that affects the inflation rate?” Sen. Chris Van Hollen (D-Md.) asked Powell on Tuesday, which prompted an affirmative response from Powell. Van Hollen challenged Powell to contemplate a scenario in which wages and benefits for workers could continue to grow at a healthy level even as inflation comes down to 2 percent, provided that profits for corporations would shrink. Powell said he thought something like this could happen over the “shorter term.” Markets had been expecting rate hikes of 0.25 percentage points out of the March and May FOMC meetings, but Powell’s comments on Wednesday pushed the probability of a 50-basis point hike at the next meeting above 50 percent, according to a prediction algorithm by financial data company CME. Powell’s renewed hawkishness on interest rate levels comes after an uptick in the personal consumption expenditures (PCE) price index and a smaller-than-expected drop in last month’s consumer price index (CPI).
How the Fed's Powell answered 3 big questions about jobs - Federal Reserve Chair Jerome Powell on Tuesday warned the American public that high inflation and labor shortages could push the central bank to raise interest rates higher and faster than they expected. Powell’s remarks to the Senate Banking Committee sparked a selloff in the stock market, with investors alarmed that higher rates could tank the economy. But senators were more eager to hear what his warning might mean for the job market. Fed officials had already estimated that unemployment could rise more than 1 percentage point — which could equate to about 2 million lost jobs — and they may update those projections at their next meeting this month. Friday’s jobs report for February will offer further clarity on a labor market that has shown stunning growth even in the face of higher rates. Powell suggested that he’s still holding out hope that joblessness won’t have to rise significantly, but he also made it clear that fighting inflation is his top priority. The unemployment rate — a more than 50-year-low of 3.4 percent — may not be sustainable without further stoking price spikes, he indicated.“We’re very far from our price stability mandate and, in effect, the economy is past most estimates of maximum employment,” he told the committee in his semiannual testimony. Still, he said, inflation has been fed by unprecedented factors related to the pandemic that, as they fade, might aid the central bank. Here are some key exchanges between the Fed chair and lawmakers:
- Sen. John Kennedy (R-La.): “You’re trying to raise the unemployment rate, are you not?”
- Powell: “No, we’re not — we’re trying to realign supply and demand, which could happen through a bunch of channels, like for example, just job openings.” While Powell flatly denied that his goal was to see unemployment increase, he acknowledged that the Fed does want to see the labor market weaken. Those might seem contradictory, but the thinking is that if there are fewer open jobs, it will help cool wage gains, which feed inflation, without necessarily causing a rise in joblessness. Kennedy was driving at a separate but related point: It’s a good idea, in his mind, to cut government spending to help reduce inflation because the Fed’s tools are much blunter and potentially more painful to the labor market.
- Sen. Elizabeth Warren (D-Mass.): “Chair Powell, if you could speak directly to the 2 million hardworking people who have decent jobs today who you’re planning to get fired over the next year, what would you say to them? How would you explain your view that they need to lose their jobs?”
- Powell: “I would explain to people more broadly that inflation is extremely high, and it’s hurting the working people of this country badly — all of them. Not just 2 million, but all of them are suffering under high inflation, and we are taking the only measures we have to bring inflation down.”
- Warren: “And putting 2 million people out of work is just part of the cost, and they just have to bear it?”
- Powell: “Will working people be better off, if we just walk away from our jobs and inflation remains 5, 6 percent?”This was an unusually testy moment from Powell, who is generally calm and collected under questioning, including from Warren.
Goolsbee's appointment at Chicago Fed points to rising political tension at central bank --The recent appointment of a prominent Democratic economist to lead the Federal Reserve Bank of Chicago is fueling friction over political partisanship in the US central bank. Austan Goolsbee became president of the Chicago Fed in January, but only after a contentious hiring process. Bloomberg News reported Feb. 17 that two of the Fed's Washington-based board, both of whom had been nominated for their roles by then-President Donald Trump, took the rare step of abstaining from supporting the appointment. And while the regional bank's directors unanimously approved Goolsbee's selection, several have a pattern of giving money to Democratic political candidates, a fact which hasn't previously been reported. Nothing prohibits directors of regional Fed boards from contributing to political campaigns, according to the Fed's code of conduct. And there is no evidence suggesting a direct connection between the donations and Goolsbee's selection, which a Chicago Fed spokesman said was "apolitical." Goolsbee, 53, is widely considered qualified for the job: Before joining the Chicago Fed, he spent nearly three decades as a professor at the University of Chicago's Booth School of Business, and holds a doctorate in economics from the Massachusetts Institute of Technology. He also previously advised Democrats including former President Barack Obama and has a history of robustly defending Democratic policies and criticizing Republican ones on TV and radio talk shows. Such a history is providing fresh impetus to concerns that the central bank is becoming increasingly politicized, risking the independence of monetary policy from the cut and thrust of government. Goolsbee's appointment, which was backed by Fed Chair Jerome Powell and four other governors in Washington, also raises questions about the opaque process for choosing regional Fed leaders. Bloomberg obtained a record of the Fed board vote on his appointment through a Freedom of Information Act request. It follows a series of recent controversies among the regional Fed banks that has prompted bipartisan calls in Congress for more Fed oversight, and led to internal changes aimed at reining in political activity. "The central bank is way more political than it appears," said Kaleb Nygaard, a research fellow at the University of Pennsylvania's Wharton Initiative on Financial Policy and Regulation. "Just because the reserve banks are one step removed from partisan politics, that doesn't mean they are not partisan positions." Governors Christopher Waller and Michelle Bowman declined to comment on their decisions to withhold support for the pick. Goolsbee, who cast his first vote on monetary policy this year, also declined to comment, the Chicago Fed spokesman said. Goolsbee is among several people under consideration to be President Joe Biden's choice to succeed Lael Brainard as Fed vice chair in Washington, Bloomberg News reported Feb. 23. That role would require Senate confirmation.
Biden under mounting Senate pressure to name a Latino to Fed -Pressure on President Biden is building among Senate Democrats to fill a vacancy at the Federal Reserve with a Latino, a move which would place the U.S. central bank's first Hispanic into a leadership role. Sens. Sherrod Brown, Jack Reed and Raphael Warnock on Tuesday joined Robert Menendez and Catherine Cortez Masto, who have previously asked the Biden administration to appoint a Latino to the Fed to improve diversity. The senators voiced their backing during Fed Chair Jerome Powell's semiannual testimony before the chamber's banking committee. "I support Sen. Menendez and others who have called for a diverse nominee," said Georgia's Warnock. "The fact that we have never had a Latino person serve on the Federal Reserve Board, I think is a huge oversight." In its 109-year history, the Fed has never had a Latino in a top leadership position. New Jersey's Menendez and most of the Congressional Hispanic Caucus last month sent a letter to Biden urging him to fill the open spot with a Latino. The vacancy was created by Fed Vice Chair Lael Brainard's departure last month to lead Biden's National Economic Council. The president will nominate her replacement, subject to Senate confirmation. White House Press Secretary Karine Jean-Pierre Monday said filling the vacancy is a priority for Biden and that there will be an update "in the near future." So far, none of the people that have emerged as top contenders are Latino.
Business Cycle Indicators and the Employment Release by Menzie Chinn - NFP employment increase of 311K beat the Bloomberg consensus of 205K. This number confirms the continued strength in the economy overall, at least according to the key indicators followed by the NBER BCDC plus S&P Global (nee IHS Markit) monthly GDP. Figure 1: Nonfarm payroll employment, NFP (dark blue), Bloomberg consensus of 3/9 (blue +), civilian employment (orange), industrial production (red), personal income excluding transfers in Ch.2012$ (green), manufacturing and trade sales in Ch.2012$ (black), consumption in Ch.2012$ (light blue), and monthly GDP in Ch.2012$ (pink), GDP (blue bars), all log normalized to 2021M11=0. Q3 Source: BLS, Federal Reserve, BEA 2022Q4 2nd release via FRED, S&P Global/IHS Markit (nee Macroeconomic Advisers) (3/1/2023 release), and author’s calculations.Given the debate over the strength of the labor market, particularly insofar as it relates to the 2022H1 figures, the following graph highlights the fact that if there was a slowdown in 2022H1 (particularly 2022Q2), it’s largely been reversed. Figure 2: Nonfarm payroll employment from February 2023 CES release (blue), Bloomberg consensus as of 3/9 (red square), household series adjusted to NFP concept (red), QCEW total covered workers, seasonally adjusted using log transformed Census X-13 (teal), all in 000’s, s.a. Light blue shading denotes a hypothesized 2022H1 recession. Source: BLS, BLS QCEW, and author’s calculations.While the employment increase was larger than expected, this was on downwardly revised December and January numbers summing to 55K; in other words, in terms of the level of employment, the 311K translates to 206K increase compared to 205K consensus increase.Here’s another picture of the evolution of the labor market, from various perspectives — total NFP, aggregate hours from private NFP, civilian employment, and private NFP from ADP.Figure 3: Nonfarm payroll employment from February 2023 CES release (blue), aggregate hours (green), Private NFP series from ADP (tan), civilian employment (red), all s.a., in logs 2021M11=0. Light blue shading denotes a hypothesized 2022H1 recession. Source: BLS and ADP via FRED, and author’s calculations.
Biden budget to reignite debates over spending, debt limit - Capitol Hill spending fights are expected to ratchet up later this week when President Joe Biden releases his budget request for fiscal 2024 and officially kicks off spending negotiations for the year. The budget release Thursday marks the third such request issued by the Biden administration. While Congress routinely dismisses the president’s blueprint, this year’s version will come under even greater scrutiny as House Republicans look to square off against the White House. The request also comes amid a broader spending fight set to dominate the year as Congress continues to veer toward a potential default in the coming months when the nation is set to reach its debt limit. Republicans have already said that they will require larger spending cuts to earn their support for raising that limit. Democrats meanwhile are pressing for a clean debt limit extension. The White House is already setting up the fiscal 2024 request as the latest message in that broader fight. “The budget will show how the President plans to invest in America, continue to lower costs for families, protect and strengthen Social Security and Medicare, reduce the deficit, and so much more,” White House press secretary Karine Jean-Pierre told reporters Friday. Broad brushstrokes on the plan have already started to emerge. Biden told an audience in Virginia last week that he intends to call for additional taxes on the wealthiest Americans as a way to help drive down the deficit. “I’m gonna raise some taxes,” he said. The policy push is sure to run into Republican opposition. Still, Office of Management and Budget Director Shalanda Young argued the White House budget represents a plan to drive down the deficit. In a video posted to Twitter last week, she also attacked Republicans for not yet producing their own plan. “The president will be in stark contrast to that when he delivers his budget on March 9 that actually shows how he intends to reduce the deficit by $2 trillion,” Young said. “He believes we have to grow this economy from the bottom up and the middle out.” Biden said in his State of the Union address last month that his budget would bring those reductions over 10 years and extend the solvency of Medicare. Republicans have yet to release an official framework on their spending cuts.
Biden’s ’24 budget aims to trim deficit and shore up Medicare. House GOP opposition hardens. - House Republicans have unleashed an early onslaught of attacks against President Biden and his 2024 budget, as they ready their own plan seeking billions of dollars in spending cuts — and steel themselves for a political standoff over the country’s finances. The president’s blueprint for the next fiscal year, slated for release on Thursday, is expected to preserve funding for his top economic priorities. It aims to shore up the future of Medicare and reduce the deficit by $2 trillion over the next decade, as Biden has promised publicly, reiterating his commitment to new tax increases targeting billionaires and some corporations. But the fate of Biden’s budget falls to an increasingly restive Congress, where some Republicans already have rejected the document outright. In a sign of the two parties’ competing, conflicting visions, GOP leaders have held firm in their bid to slash federal health, science, education and labor spending next fiscal year — and have hardened in their opposition to the new taxes that the White House seeks. “We’re going to see a budget that continues to increase taxes, and continues to spend taxpayer moneys, and continues to have this 15th consecutive month of inflation persist as a result of that,” said Rep. Jodey Arrington (R-Tex.), the leader of the House Budget Committee, who is drafting his party’s plan. The early political barbs set the stage for a higher-stakes showdown this summer, when the United States must act to raise or suspend the debt ceiling — the legal limit on how much the government can borrow to pay its bills. Taking control of the House in January, Republicans pledged to seize on the fast-approaching deadline as a bargaining chip, raising the prospect that a protracted spending battle could cause a significant disruption to the economy. The budget fight comes at a perilous time for the country’s finances. The government’s debt has ballooned in recent years, and the discrepancy between what Washington raises and spends is expected to grow by nearly $19 billion over the next decade, according to the nonpartisan Congressional Budget Office, which released its latest analysis last month. Democrats and Republicans alike have contributed considerably to that gap, which has worsened this year as prices have risen and interest rates have spiked, making it more expensive for the government to borrow money. Adding to the challenge, two of the largest federal programs — Social Security and Medicare — do not collect enough in payroll taxes from workers to cover current and future retirees’ benefits. The two entitlements could face an insolvency crisis over the next decade, the CBO has warned, threatening steep cuts to seniors’ aid. Seizing on the dour report, Republican lawmakers have pledged a return to austerity, even if they must bargain over the country’s credit to accomplish their aims. To further highlight the issue, House Speaker Kevin McCarthy (R-Calif.) has invited Phillip Swagel, director of the CBO, to brief lawmakers from both parties on the country’s fiscal state later this week, and GOP leaders are preparing to hold hearings on federal spending. Biden, for his part, plans to head to Philadelphia on Thursday to tout his own vision. Previewing the budget with reporters, White House press secretary Karine Jean-Pierre stressed Monday that Biden “understands his fiscal responsibility,” including the need to address the country’s debt. She added that Biden’s speech would detail his efforts to “invest in America, continue lowering costs for families, protect and strengthen Social Security and Medicare, reduce the deficit and more.”
Biden to unveil plan averting Medicare funding crisis, challenging GOP - - The White House on Tuesday proposed raising taxes on Americans earning more than $400,000 and reducing what Medicare pays for prescription drugs in an attempt to ensure that the health-care program for seniors is funded for the next two decades, challenging Republicans over an imminent funding crisis. As forecasters warn that a key Medicare trust fund will run into major financial problems within five years, the administration proposed three key changes — including the tax hike and new rules to reduce prescription drug costs — to bolster the program for at least 25 years. Roughly 60 million seniors depend on Medicare for their health insurance. Because the program is spending money at a much faster clip than it brings in funding, it faces automatic federal cuts starting in 2028, raising the nightmare scenario of medical providers refusing care to senior citizens if Congress and the White House don’t address the looming shortfall first. The administration is introducing the measures as part of the White House’s broader 2024 budget proposal, but it faces an unlikely path to passage through a Republican-controlled House of Representatives. The budget is set to be released Thursday. President Biden’s introduction of a Medicare financing plan aims for a direct contrast with the GOP, which has weighed cuts to the program while also criticizing the administration for approving legislation last year aimed at reining in spending on prescription drugs. The White House’s plan amplifies the high political stakes of Medicare and Social Security — by far the two biggest federal programs — ahead of the 2024 presidential election. Details of the plan were first reported Tuesday morning by The Washington Post. “The budget I am releasing this week will make the Medicare trust fund solvent beyond 2050 without cutting a penny in benefits. In fact, we can get better value, making sure Americans receive better care for the money they pay into Medicare,” the president wrote in a separate New York Times op-ed. “If the MAGA Republicans get their way, seniors will pay higher out-of-pocket costs on prescription drugs and insulin, the deficit will be bigger, and Medicare will be weaker.” The White House’s proposal would raise the net investment income tax, created by the Affordable Care Act, from 3.8 percent to 5 percent for all Americans earning more than $400,000 per year, in line with Biden’s pledge not to raise taxes for anyone under that threshold. The tax applies to capital gains and investment income. The plan also would expand this tax by applying it to more kinds of income from pass-through firms — businesses in which the owners pay taxes on their personal income taxes. Currently, these kinds of business owners do not pay this tax. Additionally, the plan calls for expanding new rules reducing Medicare prescription drug payments beyond the measures approved last year as part of the Inflation Reduction Act. The plan would give the administration authority to negotiate what price the federal government pays for more drugs than the limited number approved as part of Democrats’ legislative package last year, while also speeding up the process for negotiations. The prescription drug changes would bring in an additional $200 billion for the Medicare trust fund, the plan states. The proposal would also cap co-pays for some generic drugs, such as those used to treat hypertension and high cholesterol, to $2 per prescription per month.
Biden seeks contrast with GOP as he pushes new Medicare plan - Today, as he pushes a new plan to extend the solvency of Medicare, President Biden is seeking a contrast with Republicans that will almost certainly resonate into next year’s presidential campaign. Biden’s plan relies on an increase in the Medicare tax rate on earned and unearned income above $400,000 and strengthening Medicare’s newly established negotiation power on drug prices. In a guest essay in the New York Times, Biden argues that Republicans, by contrast, would weaken the program through benefit cuts.In Tallahassee, one of Biden’s would-be successors, Florida Gov. Ron DeSantis (R), is poised to deliver a closely watched State of the State address Tuesday. DeSantis has yet to formally announce a 2024 White House bid, but his speech comes amid a spate of national travel, including a visit to the early nominating state of Iowa planned later this week.
Biden Pitches Tax Hike On High-Earners To Solve Medicare Funding Crisis - President Joe Biden on Tuesday proposed raising taxes on Americans earning over $400,000 per year, and granting the government new power to negotiate prescription drug prices as part of an attempt to keep Medicare afloat for the next two decades."The budget I am releasing this week will make the Medicare trust fund solvent beyond 2050 without cutting a penny in benefits," Biden('s team) said in a Tuesday op-ed in the NY Times shortly before the announcement. "In fact, we can get better value, making sure Americans receive better care for the money they pay into Medicare.""If the MAGA Republicans get their way, seniors will pay higher out-of-pocket costs on prescription drugs and insulin, the deficit will be bigger, and Medicare will be weaker," the statement continues.Biden's budget, set for release on Thursday, proposes raising Medicare taxes from 3.8% to 5% for those making above $400,000, and would eliminate a loophole used by business owners and high-earners to avoid additional taxes, according to a White House fact sheet.In fact, it's the same loophole the Bidens used to dodge as much as $500,000 in taxes.. In addition to the higher Medicare tax rate on income above $400,000, Biden’s plan would eliminate a loophole that allows certain business owners who receive income through an S corporation, limited liability company, or limited partnership to avoid paying Medicare taxes on some of their income.The plan would also dedicate the proceeds from a tax created as part of Obamacare — known as the net investment income tax — to the Hospital Insurance Trust Fund. While doing so would not impact the overall federal deficit, since it amounts to diverting an existing revenue stream, the proposal does allow the administration to say it is extending the program’s solvency. -Bloomberg Law"The Budget’s expansion of Medicare drug negotiations will not only save money for the federal government — it will also cut beneficiaries’ out-of-pocket costs by billions of dollars," the plan states.That said, as the Washington Post notes, "The administration is introducing the measures as part of the White House’s broader 2024 budget proposal, but it faces an unlikely path to passage through a Republican-controlled House of Representatives."Republicans are sure to rule out all of the new proposed taxes in the administration’s plan, and some budget hawks are adamant that the White House should be pushing spending cuts as well. Biden’s plan is also likely to elicit further rebuke from the pharmaceutical industry, which has alleged restrictions on federal spending discourage research and innovation in groundbreaking medicine. –WaPo According to House Speaker Kevin McCarthy (R-CA), the GOP isn't targeting Medicare or Social Security - while conservatives have long said that raising the net investment income tax to fund Medicare is a bad idea.
Biden’s budget directs billions to health programs -The president’s budget released Thursday includes numerous lines dedicated to bolstering health care measures first included in the Inflation Reduction Act, but it notably left out funding for several key areas. President Biden’s budget builds on measures included in the Inflation Reduction Act, including calling for the $35 insulin cap for Medicare to be expanded to the entire commercial market as well as making the expanded subsidies for the Affordable Care Act permanent. More than $10 billion was set aside for Biden’s Cancer Moonshot initiative and investments were also proposed to improve the U.S.’s behavioral health system. While the proposal included the tax code reforms aimed at shoring up Medicare that Biden announced earlier this week, the plan did not include similar measures to prevent Social Security from becoming insolvent. The budget hinted at another possible tax hike, stating the administration “looks forward to working with the Congress to responsibly strengthen Social Security by ensuring that high-income individuals pay their fair share.” Discussion over securing Medicare and Social Security has recently gained traction at the Capitol, but a tax hike will be a nonstarter for the GOP-controlled House, with Republicans already declaring the proposed Medicare tax increase will never be realized in the divided government. Biden’s proposal also notably left out any plans for new COVID-19 funding, with some measures instead directed at addressing the impacts of the pandemic on areas such as the disrupted supply chain, unemployment insurance and mental health. The budget called for $20 billion in mandatory funding to the Department of Health and Human Services for “pandemic prevention and preparedness.” The White House had said last year that the U.S. would move toward privatizing COVID-19 treatments and vaccines in 2023. The national COVID-19 public health emergency is scheduled to end May 11 and the budget appears to be another indication that the federal government is ready to move past the pandemic era.
Biden's $6.8 trillion budget challenges Republicans, raises taxes on rich - (Reuters) - U.S. President Joe Biden on Thursday unveiled plans for government spending and higher taxes on the wealthy, choosing the swing state of Pennsylvania to reveal his playbook for an expected 2024 re-election bid. Speaking at a Philadelphia union hall, the Democratic president challenged Republican opponents on fiscal responsibility, highlighting plans to cut U.S. deficits nearly $3 trillion over 10 years by raising taxes on those earning more than $400,000 a year. Overall, the budget would increase federal spending in the twelve months starting in October to $6.8 trillion from the $6.2 trillion expected to be spent in the current fiscal year. "For too long, working people been breaking their necks, the economy's left them behind - working people like you - while those at the top get away with everything," Biden told Pennsylvania blue-collar workers, a group he also targeted in his 2020 presidential campaign. Biden's budget proposal faces stiff opposition from Republican lawmakers emboldened by winning control of the House of Representatives in November's midterm elections. Large parts of his agenda are unlikely ever to be enacted by this Congress. The plan, however, is a political statement that directly challenges Republican House Speaker Kevin McCarthy's threats to block an increase in the $31.4 trillion limit on federal borrowing unless Biden agrees to rein in federal spending.
Climate, federal workers loom large in Biden’s $6.8T budget -President Joe Biden unveiled a sweeping $6.8 trillion budget plan Thursday that would increase federal spending on climate and clean energy programs while boosting pay for federal workers.The White House’s budget proposal for fiscal 2024 aims to funnel more cash into the administration’s key policy priorities, including efforts to slash greenhouse gas emissions and promote renewable energy. To increase revenue, the president wants to increase taxes on corporations and wealthy individuals and end tax subsidies for oil and gas companies.“My 2024 Budget is a blue-collar blueprint to rebuild America in a fiscally responsible way that leaves no one behind,” Biden wrote. “The Budget continues lowering costs for families — with new measures to expand health coverage, cap prescription drug costs, invest in quality child care, build affordable housing, reduce home energy bills, make college more affordable, and more.” Of course, Biden’s annual spending wish list is just that — a wish list. The White House will ultimately hash out a final compromise on federal spending with Congress, a prospect that’s more contentious now that Republicans have assumed control of the House. Biden’s plans to boost agency budgets, increase pay for federal employees and slash oil and gas subsidies are certain to face opposition on Capitol Hill.“This is the start of a healthy dialogue,” Shalanda Young, the director of the White House budget office, told reporters Thursday. “When you look at this president’s view of the world and what this budget supports, it shows you what he values. And that’s what this is going to be about. We’re happy to have that debate with anybody.”Biden’s budget plan cites the “the existential threat of climate change” and touts the passage of massive laws that aim to slash greenhouse gases and incentivize renewable energy and new infrastructure.The proposal would significantly boost funding for agencies at the center of implementing those laws. EPA would see a 19 percent boost from its 2023 funding level; the Interior and Energy departments would also see increases of 9.3 percent and 13.6 percent, respectively.Employees in agencies across the federal government would see a pay raise under Biden’s plan. The president proposes an average pay bump of 5.2 percent for civilian and military personnel.The White House said its proposal “maintains the administration’s unwavering support for the career civil service through its advancement of a legislative proposal to block Schedule F,” a Trump administration effort to make it easier to fire federal employees.Biden’s budget proposal would reduce the deficit by nearly $3 trillion over the next decade, the White House said, by “making the wealthy and big corporations pay their fair share and cutting wasteful spending on Big Pharma, Big Oil, and other special interests.”The president wants to end billions of dollars of federal tax subsidies for oil and gas companies, according to the White House. Biden, who has frequently criticized oil and gas companies’ high profits amid high energy costs, seeks to eliminate “special tax treatment for oil and gas company investments, as well as other fossil fuel tax preferences,” in his budget proposal. That move would save $31 billion, the White House said.
Biden once again targets fossil fuel benefits in budget proposal - President Biden is once again taking aim at government subsidies for the fossil fuel industry in his new budget proposal after a contentious year between the administration and the industry. Biden’s proposal – which is highly unlikely to be taken up by Congress — would raise $31 billion by “eliminating special tax treatment for oil and gas company investments, as well as other fossil fuel tax preferences,” said a White House fact sheet. Another fact sheet described the proposal as “cutting wasteful spending on Big Pharma, Big Oil, and other special interests.” Biden has previously proposed getting rid of incentives for this industry, but this year’s proposal comes after he had repeatedly slammed oil company profits in the wake of high gasoline prices. The industry has pushed back, citing disruptions caused by Russia’s invasion of Ukraine and accusing Biden of attempting to “vilify” energy companies. The proposal also includes a number of items the administration said would reduce Americans’ energy bills, including $375 million for grants to assist weatherization of homes and $800 million for efficiency upgrades through LIHEAP, the Department of Health and Human Services’ Low Income Home Energy Assistance Program. Another $300 million would go to improving energy efficiency and climate resilience in public housing, while more than $5 billion would go to fund climate and energy-efficient technology research at various agencies and bureaus, including the Interior Department, the Commerce Department, the National Aeronautics and Space Administration (NASA) and the National Science Foundation. The budget would put $35 million toward creating a new laboratory at a historically Black college or university through the Office of Energy Efficiency and Renewable Energy. The proposed budget also would require the Department of Agriculture to target all funding for new or rehabilitated rural housing construction toward projects “that improve energy or water efficiency, implement green features, or address climate resilience.”
Biden budget speech slams oil profits, ‘MAGA Republicans’ - President Joe Biden made a public pitch for his annual budget proposal in Philadelphia on Thursday as he took aim at oil and gas companies’ profits and touted his administration’s climate change policies. The president used his speech at a Philadelphia union hall to tout his team’s work during the administration’s first two years in office and to make a case for enacting the broad-ranging $6.8 trillion budget proposal released earlier Thursday. “Here’s why I’m here today: For too long, working people have been breaking their necks. The economy has left them behind — working people like you — while those at the top get away with everything, get everything,” Biden said. The White House’s budget proposal for fiscal 2024 would direct more funding toward the Biden administration’s policy priorities, including climate and clean energy programs. The plan seeks to increase revenue by increasing taxes on corporations and wealthy individuals and ending tax subsidies for oil and gas companies (Greenwire, March 9). “My budget cuts wasteful spending by getting rid of special tax breaks for big oil companies who made $200 billion in profit last year,” Biden said. Biden noted bipartisan accomplishments during his tenure, but he said the new GOP majority in the House has suggested “cooperation may have come to an end,” and he slammed “MAGA Republicans” for refusing to work with Democrats. “This is not your father’s Republican Party,” he said. Biden’s latest budget request seeks more money for climate agencies and their programs — a prospect that’s certain to see pushback from congressional Republicans. “No one can deny that we have a climate crisis,” he said, touting his administration’s efforts to incentivize renewable energy. “I’m from Scranton,” he told the crowd. “I’m not against coal per se. A lot of people made a living on that. But we’re providing incentives for folks to make the transition.” He pointed to policies that offer tax credits and rebates for energy-efficient appliances. “The new heat pumps, they can heat the whole damn house,” he said. “I’m serious. Not a joke.”
U.S. House Republican hardliners unveil spending demands for raising debt ceiling (Reuters) - The hardline U.S. House Freedom Caucus responded to President Joe Biden's $6.8 trillion budget proposal on Friday, with a list of demands including a near freeze on discretionary spending and an end to multiple programs, in exchange for raising the debt ceiling. The caucus of at least 37 members, which can stymie legislation in the narrowly divided House of Representatives, issued a position paper that would keep defense spending flat and reset nondefense discretionary spending at pre-COVID-19 pandemic levels while holding annual spending growth to 1%. Biden's proposal and the hardline response are just early salvos in a budget negotiation that has higher-than-usual stakes because House Republicans have said they will not vote to lift the nation's $31.4 trillion debt ceiling unless Biden agrees to spending cuts. With the Senate narrowly controlled by Biden's Democrats and the House narrowly held by Republicans, neither proposal is likely to pass unaltered. Dubbed "Shrink Washington, Grow America," the plan also calls for ending Biden's student loan forgiveness program, rescinding unspent COVID-19 relief funding and recouping $80 billion allocated by Congress last year for the Internal Revenue Service. House Freedom Caucus Chairman Scott Perry said the plan would mean a $131 billion spending cut for fiscal 2024, which begins on Oct. 1, and save $3 trillion over a decade. The plan, which parallels some of the priorities being pursued by House Budget Committee Chairman Jodey Arrington, comes amid a standoff over the $31.4 trillion debt ceiling that has raised concerns about a political standoff between Biden and House Republicans that could lead to the nation's first-ever default. The House Freedom Caucus, whose members forced House Speaker Kevin McCarthy to endure 15 floor votes before being elected to his top post, is among a number of congressional groups hoping to influence the budget that Arrington's panel is due to produce in coming weeks. "America will not default on our debts unless President Biden chooses to do so," Perry told reporters at a news conference. "To ensure America does not default on our debts, the House Freedom Caucus is offering a responsible solution." On Thursday, Biden unveiled a budget that would cut deficits by nearly $3 trillion over 10 years by raising taxes on those earning more than $400,000 a year. It would also increase federal spending in 2024 to $6.8 trillion from the $6.2 trillion expected to be spent in the current fiscal year. "To president Biden: your budget is dead on arrival," said Representative Byron Donalds, a House Freedom Caucus member. Biden said the Freedom Caucus wants to retain $2 trillion in tax cuts enacted under former President Donald Trump, without imposing new tax levies on the wealthy. "And in addition to that, on top of that, they're going to say we have to cut 25% of every program across the board," Biden said. "I don't know (that) there's much to negotiate on."
Freedom Caucus lays out spending cut demands for debt limit - Members of the House Freedom Caucus on Friday presented a set of spending cuts and budget proposals they want as a condition of even considering voting in favor of raising the national debt ceiling, laying down one of the first markers in the House Republican Conference for debt ceiling negotiations. The hard-line conservative caucus wants to cap overall discretionary spending at fiscal 2022 levels for 10 years while allowing for 1 percent growth per year, which would be a $131 billion cut from current levels. The group would aim to keep defense spending at current levels. In addition, the caucus called to end President Biden’s student loan forgiveness program; rescind unspent COVID-19 and Inflation Reduction Act funds; enact the REINS Act, a bill that would broaden congressional input on agency regulations; and loosen domestic energy production regulations. The group also wants to restore “Clinton-era work requirements on welfare programs” like Medicaid and pass a preemptive continuing resolution to set nondefense discretionary spending at fiscal 2019 levels in order to pressure Congress to pass appropriations. “We’ve got a serious proposal. We urge our colleagues on the Republican side and the Democrat side to come along. If you don’t like what we’ve offered – bless you, that’s fine. What have you got to offer?” House Freedom Caucus Chairman Scott Perry (R-Pa.) said in a press conference on Friday, flanked by more than a dozen of the group’s other members. Perry added the plan largely looks at nondefense discretionary spending, and that defense spending could remain flat while other cuts could achieve getting the top-line discretionary figure to fiscal 2022 levels. The demands come as Speaker Kevin McCarthy (R-Calif.) pushes President Biden for a deal on spending reductions as a condition of raising the debt ceiling, although McCarthy has not laid out his own specific proposals. Any official budget position for the House GOP is likely to be less aggressive than the House Freedom Caucus plan, but Perry forecast optimism about agreement: “We’re not assuming leadership is opposed to any of this.” The Freedom Caucus indicated it was open to negotiation on the measures. “If somebody else on our side of the aisle or the other side of the aisle or a combination of the two wants to bring some plan together, we’re certainly going to consider it, but this is where we stand,” Perry said. Rep. Lauren Boebert (R-Colo.) alluded to the rules change concessions that many of the members extracted from McCarthy from the drawn-out Speaker election earlier this year.
Yellen warns U.S. House members of 'economic collapse' from default - (Reuters) - U.S. Treasury Secretary Janet Yellen urged members of the U.S. House of Representatives on Friday to raise the federal debt ceiling without conditions, warning that a default on U.S. debt would cause "economic and financial collapse." Yellen, in budget testimony before the Republican-controlled House Ways and Means Committee, said that failure to increase the $31.4 trillion borrowing cap would threaten the economic progress that the U.S. has made since the COVID-19 pandemic. "In my assessment - and that of economists across the board - a default on our debt would trigger an economic and financial catastrophe," Yellen said. "I urge all members of Congress to come together to address the debt limit – without conditions and without waiting until the last minute." Asked about the possibility of prioritizing payments to cover U.S. debt payments first from available cash resources, as some Republicans have suggested, Yellen said that was "not a solution to the debt ceiling issue." "Prioritization is simply not paying all of the government's bills when they come due. That is something we have never done since 1789. And that really is just default by another name." The only option to avoid a crushing spike in interest rates following a default is for the U.S. to commit to pay its bills on time, she said. "If we don't do that and think that there's some shortcut around it that will avoid economic chaos, we're kidding ourselves because not paying the government's bills will produce economic and financial collapse," she said.
Biden proposes Pentagon budget hike with eye on China, Russia -- Biden is requesting $842 billion for the Pentagon, up from the $816 billion Congress approved for the last fiscal year and well over the $773 billion he asked for in 2022.The budget proposes investments to support the defense industrial base, nuclear modernization efforts and a 5.2 percent pay increase for U.S. troops and the civilian workforce.The president also wants to take on China and Russia. The request for the Defense Department includes $9.1 billion to bolster the U.S. presence in the Indo-Pacific region and another $6 billion to support Ukraine and NATO allies.In a message to Congress, Biden said this year’s budget proposal “cements our commitment to confronting global challenges and keeping America safe.”“It outlines crucial investments to out-compete China globally and to continue support for Ukraine in the face of unprovoked Russian aggression,” the president said.While Republicans themselves are likely to advocate for certain defense spending increases, Biden’s $6 trillion overall budget is likely dead on arrival in the GOP-controlled House, where the slim Republican majority wants to slash spending and reduce the federal deficit.“A budget that proposes to increase non-defense spending at more than twice the rate of defense is absurd,” Rep. Mike Rogers (R-Ala.),chairman of the House Armed Services Committee (HASC), said in a statement. Sen. Jack Reed (D-R.I.), who chairs the Senate Armed Services Committee, called it a “strong” budget, a similar sentiment shared by HASC ranking member Rep. Adam Smith (D-Wash.).“President Biden’s topline request addresses a complex range of national security and national defense challenges,” Smith said in a statement, “from strategic competition with China and Russia, to addressing challenges posed by rogue actors and violent extremist organizations and climate change.”Despite the hefty number, the defense budget is actually a small cut compared to the last fiscal year when considering inflation, according to Mark Cancian with the Center for Strategic and International Studies.Still, the defense budget is expected to get another boost by the time Congress approves the National Defense Authorization Act.
Watch: Samantha Power Lets Slip The US Is At War With Russia, But "Ukrainians Doing The Fighting" -- In a CNN panel last week, the head of the United States Agency for International Development (USAID) Samantha Power issued some very revealing words on the Russia-Ukraine war, wherein she admitted that the US is at war with Russia but that it's "Ukrainians doing the fighting". Her words came during a CNN 'town hall' event, which also featured Biden national security adviser Jake Sullivan, marking the one-year anniversary of Russia’s invasion. She had specifically responded to a question from an audience member, who asked: "What vital interest does to the US have in Ukraine?" At one point in forming a response she actually gave what ranks among the most ridiculously simplistic clichés sometimes uttered by D.C. policymakers - that America stands up to "bullies". "I think Americans understand bullies and the importance of standing up to bullies," she said. But here's where she said the quiet part out loud, letting it slip that in some sense the US sees Ukraine as a pawn in the greater geostrategic game of ultimately defeating Russia: She explained the need for a broad coalition of countries in order to show "This isn't just the United States and Russia, this in fact is Ukrainians on the front lines, Ukrainians doing the fighting..." The set of assumptions behind this statement by a top Biden admin official is very revealing, however casually she may have slipped it in. Watch the clip below:
US Begins 'Training Assessment' For Ukrainian Pilots On F-16s - The White House has so far ruled out calls to provide the Ukrainian government with F-16 fighter jets, but clearly the idea is still on the table and Biden may be close to pulling the trigger amid intense administration discussions. "Two Ukrainian pilots are currently in the United States undergoing an assessment to determine how long it could take to train them to fly attack aircraft, including F-16 fighter jets, according to two congressional officials and a senior U.S. official," a weekend NBC report indicates. "The Ukrainians’ skills are being evaluated on simulators at a U.S. military base in Tucson, Arizona, the officials said, and they may be joined by more of their fellow pilots soon," the report continues. The officials additionally said 10 more Ukrainian pilots are expected to join the program soon, and they may arrive in the US this month. The officials emphasized that this does not yet constitute a fighter jet training program for Ukrainian pilots, and that actual aircraft will not be flown - only the advanced flight simulators. But clearly if F-16s are approved, this will form the basis of formal training on the jets. One of the main reasons for the hold-up in approving jets for Ukraine, apart from the fact that Russia is vowing severe and unpredictable escalation, is the significant time investment of the training, which could take at least a year or years. Colin Kahl, defense undersecretary for policy, recently told the House Armed Services Committee that the US has "not started training on F-16s" and that the delivery timeline is about 18 months. The training program for F-16s also happens to be about 18 months. "So you don’t actually save yourself time by starting the training early in our assessment," said Kahl. "And since we haven’t made the decision to provide F-16’s and neither have our allies and partners, it doesn’t make sense to start to train them on a system they may never get." The White House has so far ruled out calls to provide the Ukrainian government with F-16 fighter jets, but clearly the idea is still on the table and Biden may be close to pulling the trigger amid intense administration discussions."Two Ukrainian pilots are currently in the United States undergoing an assessment to determine how long it could take to train them to fly attack aircraft, including F-16 fighter jets, according to two congressional officials and a senior U.S. official," a weekend NBC report indicates. "The Ukrainians’ skills are being evaluated on simulators at a U.S. military base in Tucson, Arizona, the officials said, and they may be joined by more of their fellow pilots soon," the report continues. The officials additionally said 10 more Ukrainian pilots are expected to join the program soon, and they may arrive in the US this month.The officials emphasized that this does not yet constitute a fighter jet training program for Ukrainian pilots, and that actual aircraft will not be flown - only the advanced flight simulators. But clearly if F-16s are approved, this will form the basis of formal training on the jets.One of the main reasons for the hold-up in approving jets for Ukraine, apart from the fact that Russia is vowing severe and unpredictable escalation, is the significant time investment of the training, which could take at least a year or years. Colin Kahl, defense undersecretary for policy, recently told the House Armed Services Committee that the US has "not started training on F-16s" and that the delivery timeline is about 18 months. The training program for F-16s also happens to be about 18 months."So you don’t actually save yourself time by starting the training early in our assessment," said Kahl. "And since we haven’t made the decision to provide F-16’s and neither have our allies and partners, it doesn’t make sense to start to train them on a system they may never get."
Zelensky pushes for more US aid as Russia pressures Bakhmut - Ukrainian President Voldymyr Zelensky is pushing for more security assistance from the U.S. and western allies as his troops face an immense assault from Russian forces in the embattled town of Bakhmut. In an interview with CNN’s Wolf Blitzer that aired Wednesday night, Zelensky renewed a plea for the Biden administration to supply F-16 fighter jets as Ukraine struggles to fend off repeated Russian missile strikes on critical infrastructure. The Ukrainian president said President Biden previously told him that Ukraine does not need advanced fighter jets in the current state of the war, a position Zelensky said he disagrees with. “What fighter jets could do is they could help us to defend ourselves,” Zelensky argued. “It’s a part of the air defense … and we don’t have the fighter jets to deal with it and to counteract the Russian hits. We really need this.” Zelensky also told Blitzer that Ukraine will need additional “new weaponry” from western allies in order to carry out a counteroffensive against Russian forces in occupied regions of eastern Ukraine. That includes long-range artillery, which the U.S. has yet to provide over fears Ukraine might strike into Russian territory. Zelensky told CNN that Ukraine is not interested in Russian land. “We need only to protect our peaceful civilian population,” he said. “I believe we can push Russia even further with these long-range missiles.”
Washington raises ire with missiles sale - Chinadaily.com. - China has lodged solemn representations over the latest United States arms sales to China's Taiwan, China's Defense Ministry said on Friday afternoon, expressing "firm opposition and strong dissatisfaction". Senior Colonel Tan Kefei, the spokesman for the Ministry of National Defense, demanded that the US stop arms sales to Taiwan and military contacts with the island, stop meddling in the Taiwan question and stop escalating tensions across the Taiwan Straits. The US State Department has approved a $619 million sale of hundreds of missiles to equip new US-made F-16 fighter jets that the island is expecting to receive by the middle of this decade. The proposed sale — which the US State Department's Defense Security Cooperation Agency informed Congress of on Wednesday — comes amid heightened tensions between Washington and Beijing over the Taiwan question and other issues, such as a slew of legislative measures put forth recently by the US House of Representatives aimed at restricting China across a wide range of areas. Ma Xiaoguang, a spokesman for China's Taiwan Affairs Office, said on Thursday, "We firmly oppose the sale of arms by the US to Taiwan." Ma urged the US to abide by the one-China principle and the provisions of the three Sino-US joint communiques, to stop the arms sale and any military ties with the island. "The US should stop playing with fire on the Taiwan question, and deal with it cautiously," he said. Chinese Foreign Ministry spokeswoman Mao Ning said on Thursday: "Such sales undermine China’s sovereignty and security interests, and harm China-US relations and peace and stability across the Taiwan Straits. "The US calculus to use Taiwan to contain China (is) the root cause of the tensions in the Taiwan Straits." US Secretary of State Antony Blinken has said that one of the reasons that the world is so concerned about a crisis across the Taiwan Straits "is because this is not an internal matter". Mao has called the remarks "absolutely irresponsible and absurd".
China’s new foreign minister slams U.S. 'malicious confrontation' - China’s new foreign minister, Qin Gang, came out swinging in his debut press conference Monday, warning that U.S. policies toward China were pushing the two countries toward potential conflict.Qin used the nearly two-hour briefing to denounce everything from the Biden administration’s Indo-Pacific Strategy and weapons sales to Taiwan to what he said was the U.S. role in prolonging Russia’s aggression against Ukraine. The press briefing on the sideline of the annual meeting of China’s 3,000-member parliament, the National People’s Congress, marked Qin’s highest profile public event since he completed his tenure as Chinese ambassador to the U.S. in December.Qin accused the Biden administration of policies designed to “contain and suppress China in all respects” driven by what he called a “hysterical neo-McCarthyism” that was inflicting serious harm on bilateral relations.“If the United States does not hit the brake, but continues to speed down the wrong path … there will surely be conflict and confrontation and who will bear the catastrophic consequences?” Qin said.Qin hinted at the potential for nuclear conflict between the two countries by saying that those policies could risk “the future of humanity.” And he implicitly referenced Biden’s comments in his State of the Union speech last month that the United States seeks “competition, not conflict” with China by accusing the U.S. of “not fair competition, but malicious confrontation.” Qin’s uncompromising tone echoes that of his patron, Chinese paramount leader Xi Jinping. On Monday, Xi accused the U.S. and other Western countries of “all-round containment, encirclement and suppression against us, bringing unprecedentedly severe challenges to our country’s development,” the Wall Street Journal reported on Monday, citing Chinese state media. That rhetoric also casts doubt on the sustainability of Xi and President Joe Biden’s agreement in their meeting in Bali, Indonesia, in November to try to stem the slide in U.S.-China ties.Bilateral ties have been battered by the discovery and subsequent destructionof a Chinese spy balloon over the continental U.S. in February. Biden administration warnings last month that the Chinese government isconsidering providing lethal weaponry to Russia in its war against Ukraine have further roiled relations. And the conclusion of a Department of Energy report published last week that concluded (albeit with low confidence) that a laboratory leak in Wuhan, China, sparked the Covid-19 pandemic has renewed congressional anger toward China’s role in a pandemic that has killed more than a million Americans.
Taiwan Convinces Kevin McCarthy To Downgrade Taipei Trip To Avoid Angering China - Taiwan's president Tsai Ing-wen has convinced House Speaker Kevin McCarthy (R-CA) to downgrade a planned trip to Taipei, and instead meet in California in order to avoid an 'aggressive Chinese military response,' the Financial Times reports.According to several people familiar with the situation, Tsai and McCarthy agreed to downgrade the visit because of Taiwanese security concerns, as tensions run high between Beijing and Washington. The move is a backtrack for McCarthy, who said last summer that he would visit Taiwan if elected Speaker of the House.The venue change comes as the US steps up contingency planning for the region — one of the world’s most dangerous flashpoints — and highlights the impact of China’s military posturing to constrain Taiwan and undermine its de facto independence.Washington has been rife with speculation about whether McCarthy would visit Taipei. Advocates of a trip say senior US lawmakers should show support for the country in the face of rising Chinese aggression, while critics argue that high-profile visits provoke China without helping Taiwan. –FT According to a senior Taiwanese official, McCarthy's team was provided with "some intelligence about what the Chinese Communist party is recently up to and the kinds of threats they pose," adding that China is "not in a good situation."In August, former House Speaker Nancy Pelosi (D-CA) sparked China's fury after visiting Taiwan - the first such trip by a US Speaker in 25 years. In response, the CCP held giant military exercises which included the firing of ballistic missiles over the country for the first time in history."There might be policies even more irrational than in the past emanating from Beijing," said the Taiwanese official to FT. "If we can try to control this together, the risks it brings for everybody can be contained better."US officials have recently played down suggestions of an imminent Chinese attack on Taiwan, but the Biden administration is stepping up contingency planning with allies.President Joe Biden has on four occasions over the past four years said the US would intervene if China launched an unprovoked attack on Taiwan. -FTAccording to McCarthy, Taiwan's concerns over a provocation were "reasonable."
Republicans cast Biden as weak on China for not banning TikTok - For months, the Biden administration has been negotiating a potential deal with TikTok, owned by the Beijing-based ByteDance, to address concerns the app may pose a national security risk. TikTok has testified to Congress that it has never and would not share U.S. user data with the Chinese government, and disputed claims by lawmakers that it poses a security threat. But as those discussions have dragged on without a resolution, Republicans have cast Democratic leaders as being too soft on China for not backing a more drastic measure: banning TikTok throughout the United States. White House press secretary Karine Jean-Pierre said last week the administration takes concerns about TikTok “very seriously” but would not comment on talks with TikTok, which are being led by the Committee on Foreign Investment in the United States. “We have been clear about our concerns on apps like TikTok,” she said. “And so, look, we are focused on the challenges of certain countries including China seeking to leverage digital technologies and Americans’ data in ways that present … unacceptable national security risk.” As part of their critiques, Republicans have dinged the White House for briefing TikTok influencers about the administration’s work on the coronavirus pandemic, the war in Ukraine and reproductive rights, among other topics, as my colleague Taylor Lorenz has reported. “While the Biden Administration is busy inviting TikTok influencers to the White House to promote a liberal agenda, I’m focused on putting safeguards in place to protect Americans’ privacy and our children,” tweeted Rep. Gus Bilirakis (R-Fla.), a member of the House Energy and Commerce Committee. TikTok CEO Shou Zi Chew is testifying to the panel on March 23. Jean-Pierre said the White House has never allowed the app on its devices. The White House did not return a request for comment. “A U.S. ban on TikTok is a ban on the export of American culture and values to the billion-plus people who use our service worldwide,” TikTok spokesperson Brooke Oberwetter said. Republican lawmakers are leveling similar criticisms against their counterparts on Capitol Hill, where a GOP-led panel last week advanced legislation to give Biden more power to ban the app over objections from Democrats. Advertisement After the GOP-led House Foreign Affairs Committee last week advanced a proposal to give Biden more power to block the app in the United States in a party-line vote, Chairman Michael McCaul (R-Tex.) called out panel Democrats for opposing the measure. Rep. Gregory Meeks (N.Y.), the panel’s top Democrat, issued a statement after last week’s vote panning the GOP for rushing to pass a “hastily drafted measure” that could harm national security and infringe on users’ free speech rights before the administration completed its review. Sen. Marco Rubio (R-Fla.), who is leading a bill to ban the app entirely, has urged Senate Majority Leader Chuck Schumer (D-N.Y.) to call it up for a vote. The measure has a Democratic co-sponsor in the House, Rep. Raja Krishnamoorthi (Ill.), while Sen. Angus King (Maine), an independent who caucuses with Democrats, is a co-sponsor in the Senate.
America’s Chips War With China: Another Sanctions Backfire Coming? by Yves Smith - The US is trying to hold its high ground of dominance of the semiconductor industry via export restrictions and subsidies to increased domestic manufacturing, notably via the Chips Act. Yet experts are quietly warning that this plan to decouple from China may backfire, particularly if pursued too aggressively.Semiconductors are fundamental to the operation of commerce and consumer communications, so the US believes it has found a key choke point by which it can impede China’s further rise as an economic superpower. But the wee problem with that view is that the US view thought it had an even more powerful choke point with Russia via its supposed dependence on dollar payment systems. We know how that movie is working out.Admittedly, the US actions against China’s chips industry are not of the “kill the economy” ambitions of its sanctions against Russia. But there’s a weird myopia in not understanding that China has plenty of ways of retaliating if thing were to get ugly, given US dependence on China for many imports, starting with pharmaceutical ingredients and seemingly humble chemicals like ascorbic acid. And as we’ll address soon, a broad analysis of technology leadership by an Australian think tank shows the China to be number 1 in 37 of 44 categories.We’ll provide a high level treatment today and plan to go deeper in future posts. Let’s return to the various semiconductor protection moves. As far as I can tell, the justifications were to prevent Chinese spying on Americans and impede China from using advanced chips in military applications (although truth be told, armed forces don’t make much use of the super-small chips that are the focus of the curbs). But even experts who are sympathetic with the idea that the US should do more to protect its interests in its dealings with China think that even with obviously over-broad Trump era measures having been rolled back, the new restrictions aren’t well targeted. From Jon Bateman, a senior fellow at the Carnegie Endowment for International Peace,in Politico in January: America has embarked on one of its most difficult and dangerous international challenges since the Cold War. The task: reversing decades of economic and technological integration with its chief rival, China.This technological decoupling, if done selectively, will help to preserve America’s military edge, protect key U.S. industries from unfair competition, and push back on Beijing’s human rights abuses. But if decoupling goes too far, it will drag down the U.S. economy, drive away allies, stymie efforts to address global crises like climate change, and increase the odds of a catastrophic war….Restrictions on Chinese technology make sense when they match the scale of specific threats and buy time for America to bolster its own tech base. But Washington seems intent on a grander crusade — to hobble China at a fundamental level — with little regard for the risks to global stability, the U.S. economy and American alliances.
Ruler's sister warns North Korea ready to act - — The influential sister of North Korea’s leader warned Tuesday that her country is ready to take “quick, overwhelming action” against the United States and South Korea, a day after the U.S. flew a nuclear-capable B-52 bomber in a demonstration of strengthen against the North. Monday’s U.S.-South Korean training involving the B-52 bomber over the Korean Peninsula was the latest in a series of drills between the allies in recent months. Their militaries are also preparing to revive their largest field exercises later this month. Kim Yo Jong didn’t elaborate on any planned actions in her statement, but North Korea has often test-launched missiles in response to U.S.-South Korean military drills because it views them as an invasion rehearsal. “We keep our eye on the restless military moves by the U.S. forces and the South Korean puppet military and are always on standby to take appropriate, quick and overwhelming action at any time according to our judgment,” Kim Yo Jong said in the statement carried by state media. “The demonstrative military moves and all sorts of rhetoric by the U.S. and South Korea, which go so extremely frantic as not to be overlooked, undoubtedly provide (North Korea) with conditions for being forced to do something to cope with them,” she said. After Monday’s training, South Korea’s Defense Ministry said the B-52’s deployment demonstrated the allies’ decisive capacities to deter North Korean aggressions. The U.S. deployed a long-range U.S. B-1B bomber or multiple B-1Bs to the peninsula a few times earlier this year. South Korea said those drills demonstrated the allies’ ability to make a decisive response to potential North Korean aggressions. Last Friday, the South Korean and U.S. militaries announced they would conduct a computer-simulated command post training from March 13-23 and restore their largest springtime field exercises that were last held in 2018. In a separate statement Tuesday, North Korea’s Foreign Ministry called the flyover of the U.S. B-52 bomber a reckless provocation that pushes the situation on the peninsula “deeper into the bottomless quagmire.” The statement, attributed to the unnamed head of the ministry’s foreign news office, said “there is no guarantee that there will be no violent physical conflict” if U.S.-South Korean military provocations continue.
Tulsi Gabbard: Democrats Are The Party Of Division, Authoritarianism, & War - Democrats are funding a dangerous war in Ukraine, stifling ideological dissent, and polarizing this country. That was the message from former Democratic presidential candidate Tulsi Gabbard, speaking on the final day of CPAC. The former congresswoman took shots at radical gender ideology and accused President Joe Biden of stoking racial tensions by embracing identity politics. She accused Biden of “fanning the flames of divisiveness.” “They reduce each of us to the color of our skin,” Gabbard said in her speech, saying the Democrats “have become the racists they claim to hate.” Gabbard, now a registered independent, denounced her former political party for its reckless armament of Ukraine and warned that the policy of providing lethal aid is bringing the United States to the “brink of nuclear war.” “They’ve sent now over $100 billion to fuel this proxy war,” she said. On Friday, Secretary of State Anthony Blinken promised an additional $400 million in weaponry and utility gear to Ukraine, with tensions rising as Ukrainian President Zelenskyy has vowed to use Western arms to retake Russian-occupied Crimea. Gabbard, a combat veteran who served two tours of duty in Iraq, has long espoused a message of ending “regime change wars” and advocating for a more restrained foreign policy. Many within the Republican Party align with Gabbard’s anti-war sentiments. After watching Gabbard’s speech, Rep. Matt Gaetz (R-Fla.) told The Epoch Times that he supports her advocacy to end U.S. financial support for the Ukrainian military. The congressman talked about working closely with Gabbard in the House Armed Services Committee and butting heads with the pro-war “so-called national security experts,” as he called them. “I think we need a focused foreign policy based in realism, not fantastical dreams of turning countries like Syria into Jeffersonian democracies,” he said. “I want a strong, well-funded, highly capable military that we rarely use.” On the topic of gender, Gabbard called out progressives for rejecting “the fact that there is such a thing as a woman.” “All the ladies can attest here that we are in fact real,” she said, adding that Democrats are confusing fiction with reality.
US Issues Ultra-Rare Rebuke Of Israeli Top Minister: "Repugnant & Disgusting" -- The Biden administration this week issued a very rare rebuke directed at close US ally Israel, which receives billions in foreign aid annually, following controversial remarks by far-right Israeli finance minister Bezalel Smotrich.State Department spokesman Ned Price called statements by Smotrich "irresponsible, repugnant and disgusting" in what was probably the most strongly worded condemnation directed at a top Israeli minister in recent history.Smotrich earlier in the week called on Israelis to "wipe out" the Palestinian village of Hawara, a West Bank town which recently saw a wave of settler violence which left at least one Palestinian dead and injured over 100 others, amid a scene of torched homes and cars.Price emphasized this week that the Biden administration condemns Smotrich’s comments and considers them as an "incitement to violence". He then said the US calls on Israeli Prime Minister Netanyahu to publicly disavow Smotrich’s comments and to urge the opposite, for the sake of peace.According to The Times of Israel: US State Department spokesman Ned Price said Finance Minister Bezalel Smotrich’s call to “wipe out” the Palestinian town of Huwara were “irresponsible, repugnant and disgusting.”“Just as we condemn Palestinian incitement to violence, we condemn these provocative remarks that also amounts to incitement to violence,” he says after being asked about the senior minister’s comments during a press briefing.“We call on Prime Minister Netanyahu and other senior Israeli officials to publicly and clearly reject and disavow these comments,” Price adds.
Michael Bloomberg: Israel Is Courting Disaster – NY Times OpEd - In more than 20 years of public life, I have steadfastly supported Israel and its people in both word and deed, including by buildingmedical facilities there, co-founding a leadership center, supporting its innovative local programs and funding other good causes. I have never gotten involved in its domestic politics or criticized its government initiatives. But my love for Israel, my respect for its people and my concern about its future are now leading me to speak out against the current government’s attempt to effectively abolish the nation’s independent judiciary.Under the new coalition’s proposal, a simple majority of the Knesset could overrule the nation’s Supreme Court and run roughshod over individual rights, including on matters such as speech and press freedoms, equal rights for minorities and voting rights. The Knesset could even go as far as to declare that the laws it passes are unreviewable by the judiciary, a move that calls to mind Richard Nixon’s infamous phrase “When the president does it, that means that it is not illegal.” Prime Minister Benjamin Netanyahu’s government is courting disaster by trying to claim that same power, imperiling Israel’s alliances around the world, its security in the region, its economy at home and the very democracy upon which the country was built.The economic damage is already being felt, as the pummeling of the shekel has shown. A large number of business leaders and investors have spoken out against the government’s proposal, publicly and privately. And in a disturbing sign, some people have already begun pulling money out of the country and re-evaluating their plans for future growth there. As the owner of a global company, I don’t blame them.Companies and investors place enormous value on strong and independent judicial systems because courts help protect them — not only against crime and corruption but also government overreach. Just as important, they protect what their employees value most: individual rights and freedoms.Companies are in a global competition for talent. So are countries. The best and brightest want to live in countries where they can be assured they will not be persecuted or discriminated against because of what they believe or whom they love. Israel’s commitment to those legal protections played a crucial role in its development as a so-called start-up nation, able to compete with Silicon Valley and other tech centers for high-skilled workers.In fact, the extraordinary rise in Israel’s economic standing over the last generation may be Mr. Netanyahu’s greatest achievement. It’s fair to say that no prime minister has done more to transform its economy into a global powerhouse. Yet unless he changes course, Mr. Netanyahu risks throwing all that progress — and his own hard-earned legacy — away. The economic damage could make the cost being paid by the United Kingdom for Brexit look like bubkes.But it’s not just the economy, of course. Israel’s security is based partly on a relationship with the United States built on shared values — freedom, equality, democracy — that can only be sustained by a commitment to the rule of law, including an independent judiciary capable of upholding it. If Israel retreats from that long-term commitment and moves its model of governance toward one that mirrors those of authoritarian countries, it risks weakening its ties to the United States and other free nations.That would be a devastating loss for Israel’s security, harm prospects for a peaceful resolution of the Palestinian conflict and could even imperil the future of the Jewish homeland. It would also undermine the deep attachment millions of people around the world feel toward the country, often because of the pride our parents instilled in us not only for its Jewish character but also for its strong commitment to freedom.
Mexican president slams US lawmakers for suggesting military action against cartels - Mexican President Andrés Manuel López Obrador slammed U.S. lawmakers on Thursday for suggesting military action against Mexican drug cartels, after two Americans were killed in a kidnapping across the border last week. “We are not going to allow any foreign government to intervene, much less a foreign government’s armed forces,” López Obrador told reporters during a press conference. “We are not a protectorate of the United States, nor a colony of the United States,” he added. “Mexico is a free, independent, sovereign state.” Four Americans were kidnapped by armed men just across the border in Mexico last week, after traveling to obtain a medical procedure. Two of the Americans died in the kidnapping, while one was injured and another remained unharmed. A Mexican citizen was also killed in the initial shootout. A Mexican cartel, known as the Gulf cartel, has reportedly claimed responsibility for the kidnapping, according to The Associated Press. The group condemned the violence in a recent letter obtained by the AP and said it planned to turn over those involved to the authorities. In the wake of the kidnapping, Sen. Lindsey Graham (R-S.C.) said that he was prepared to introduce legislation to designate certain Mexican cartels as foreign terrorist organizations and “set the stage to use military force if necessary.” “I would tell the Mexican government if you don’t clean up your act, we’re going to clean it up for you,” he told Fox News on Monday. Rep. Dan Crenshaw (R-Texas), who introduced a resolution in January to allow for the authorization of force against cartels in Mexico, doubled down on his effort following the kidnapping. “Our goal is to help the Mexican people rid themselves of violent cartels and the corrupt politicians who take their money,” Crenshaw said in response to a critical tweet from the Mexican senate’s majority leader. “If you’re against that, I’m against you.”
WHO Urges Countries To Reveal Intel On COVID Origins After FBI Director's Statements -Following the dramatic narrative shift on Covid origins by US authorities, the World Health Organization is asking any governments with intelligence on the virus' origins to come forward and present their information. "If any country has information about the origins of the pandemic, it’s essential for that information to be shared with WHO and the international scientific community," WHO Director-General Tedros Adhanom Ghebreyesus said Friday, coming quickly on the heels of FBI Director Christopher Wray saying this week that the source of the pandemic was "most likely a potential lab incident in Wuhan". The WHO chief said further, "Not so as to apportion blame but to advance our understanding of how this pandemic started, so we can prevent, prepare for and respond to future epidemics and pandemics.""WHO continues to call for [China] to be transparent in sharing data and to conduct the necessary investigations and share the results. To that effect, I have written to, and spoken with, high-level Chinese leaders on multiple occasions, as recently as just a few weeks ago."Tedros also stressed, and not for the first time, that "Until then, all hypotheses on the origins of the virus remain on the table."
China calls on WHO for COVID origins tracing in the US - - Chinadaily.com - China has called for the World Health Organization to conduct COVID-19 origins tracing in the United States, blasted the US for politicizing the origins tracing issue and urged the country to share information about the pandemic. WHO Director-General Tedros Adhanom Ghebreyesus said on Friday the organization "continues to call for China to be transparent in sharing data", adding that "continued politicization" only makes it harder to identify the origins. Commenting on Tedros' remarks, Foreign Ministry spokeswoman Mao Ning said on Monday that China, which has twice received WHO experts for origins tracing cooperation since the pandemic broke out, has shared more data and research findings than any other country. The WHO and China issued a joint report on origins tracing in March 2021 after their experts worked together for about a month in Wuhan, Hubei province from January to February that year. According to the report, the introduction of the virus through a laboratory incident was considered to be "extremely unlikely". It also recommended further research "around earlier cases and possible hosts" for the virus "around the world". The report is scientific and authoritative, and has laid a solid foundation for global origins tracing, Mao said. China has recommended experts to join the WHO's Scientific Advisory Group for the Origins of Novel Pathogens, and organized events for Chinese experts to share research findings with the WHO secretariat and SAGO, according to Mao. "China always supports and takes part actively in science-based global origins tracing, and at the same time firmly opposes all forms of political manipulation," the spokeswoman said. The US has ignored the conclusions in the WHO-China joint report, and pressured the WHO into repeatedly demanding origins tracing in China, Mao said. Meanwhile, the US has never invited WHO experts to the US for relevant research or shared any early data, the spokeswoman said, adding that the country has "turned a blind eye" to the world's concerns about its bio labs in Fort Detrick and elsewhere around the world.
Ex-CNN President Jeff Zucker Ordered Staff To Ignore Lab-Leak Theory -- Former CNN president Jeff Zucker ordered network employees not to investigate the Covid-19 lab leak theory because he considered it a "Trump talking point," a "well-placed" CNN insider told Fox News Digital on Monday. The 'theory' was recently bolstered by a Department of Energy finding that a lab-leak was the most likely origin for the virus, while FBI Director Christopher Wray confirmed last week that his agency believes the same."People are slowly waking up from the fog," the insider told Fox. "It is kind of crazy that we didn't chase it harder."Throughout Zucker's tenure as CNN's chief, he pulled what was once widely seen as a straight-news organization to an anti-Trump operation. CNN bent over backwards to knock down what former President Trump and members of his administration said lending credibility to the lab-leak theory, as the White House was deemed a nemesis by the network. -Fox NewsFox News notes that on March 28, 2020, CNN's Oliver Darcy published a story with the headline:"Here’s how to debunk coronavirus misinformation and conspiracy theories from friends and family."Add this near the top of the mountains of media scandals. On a vital question of this generation - how did COVID originate? - they claimed a certainty they lacked, and banished a theory that was fully viable, because they prioritized their partisan allegiances above reporting.— Glenn Greenwald (@ggreenwald) March 6, 2023"While the coronavirus pandemic has isolated family and friends inside their homes, it has in many cases increased online or over-the-phone communication with loved ones," Darcy wrote. "But, in some cases, relatives and friends share poor information – whether it is bad science related to how to prevent the virus, debunked rumors about cities being put on lockdown, or conspiracy theories about the origins of Covid-19. While any strain of misinformation is not ideal, misinformation related to a public health crisis has an especially dangerous element to it," he continued.CNN host Fareed Zakaria notably said that "the far right has now found its own virus conspiracy theory" while discussing the lab-leak theory.
Fauci 'Prompted' Scientists To Fabricate 'Proximal Origins' Paper Ruling Out Lab-Leak: House GOP - Dr. Anthony Fauci - who offshored banned gain-of-function research to make bat coronaviruses more transmissible to humans - has been accused by Congressional investigators of having 'prompted' the fabrication of a paper by a cadre of scientists aimed at disproving the Covid-19 lab-leak theory. On February 1, 2020, Fauci and his boss, NIH Director Dr. Francis Collins, and at least eleven other scientists participated in a conference call during which several of them warned that COVID-19 may have leaked from a lab in Wuhan, China - may have been intentionally genetically manipulated.Three days after the call, four participants from the call (Scripps Research virologist Kristian Andersen, University of Sydney virologist Edward Holmes, Tulane School of Medicine virologist Robert Garry, University of Edinburgh virologist Andrew Rambaut and Columbia University virologist Ian Lipkin) seemingly discarded their concerns over a lab-leak, and drafted "The Proximal Origin of SARS-CoV-2," which they sent to Fauci and Collins.Also heavily involved (yet not credited) was Dr. Jeremy Farrar, the current Chief Scientist at the World Health Organization.As a related aside - the Washington Examiner revealed last week that two authors of "Proximal Origin" who initially expressed concerns over a lab-leak and then changed their tune (Anderson and Garry), received millions in NIH grants under Fauci. Now, according to the House Select Subcommittee on the Coronavirus Pandemic, Fauci 'prompted' the creation of the paper;"New evidence released by the Select Subcommittee today suggests that Dr. Fauci “prompted” the drafting of a publication that would “disprove” the lab leak theory, the authors of this paper skewed available evidence to achieve that goal, and Dr. Jeremy Farrar went uncredited despite significant involvement." More: (embedded GOP document)
Fauci's Lies Exposed... Jim Jordan Goes Ballistic Over Scientists' Lab-Leak Flip-Flop - Rep. Jim Jordan (R-OH) was on fire Wednesday during the first COVID select subcommittee investigating the origins of Covid-19, where former CDC Director Dr. Robert Redfield said he was "sidelined" from internal debates over the origins of the virus, and that former White House chief medical adviser Dr. Anthony Fauci didn't appreciate Redfield's support for the theory that it emerged from a lab."This was an a priori decision that there’s one point of view that we’re going to put out there, and anyone who doesn’t agree with it is going to be sidelined," said Redfield. "And as I say, I was only the CDC director, and I was sidelined."The 71-year-old Redfield told Oversight Committee Chairman James Comer (R-KY) that his support for the lab leak theory likely prompted his exclusion."I think I made it very clear in January [2020] to all of them why we had to aggressively pursue this," he said. "And I let them know as a virologist that I didn’t see that this was anything like SARS or MERS. … And they knew that was how I was thinking."Jordan then focused the conversation to two top Fauci advisers - Dr. Kristian Andersen and Dr. Robert Garry - who suddenly changed their stance on lab leak theory. The two notably emailed Fauci on Jan. 31, 2020 where they suggested that anomalies in the virus pointed to a non-natural origin. According to Anderson, the virus had "unusual features" that "(potentially) look engineered," and that other scientists "all find the genome inconsistent with expectations from evolutionary theory."Jordan went on a tear... "So three days after they say it came from a lab, they changed their position, and the only intervening event was a conference call with Dr. Fauci and Dr. Collins. Again, a call that Mr. Redfield (CDC Director at the time) was not allowed to be on ... And then three months later, Shazam! They get 9 million bucks from Dr. Fauci. Why, isn't that something?"Watch (and consider following @VigilantFox):Rep. @Jim_Jordan: There Are 9 Million Reasons Why Two Top Scientists Changed Their Stance on Lab Leak Theory"So three days after they say it came from a lab, they changed their position, and the only intervening event was a conference call with Dr. Fauci and Dr. Collins. Again,…https://t.co/Oz6PWslbnG pic.twitter.com/fwgY26z6ca— The Vigilant Fox 🦊 (@VigilantFox) March 8, 2023Meanwhile, lawyers have claimed that statements by Fauci under oath aren't credible due to contradicting evidence.
Fauci says Redfield’s testimony of COVID call was ‘unequivocally incorrect’ -- Anthony Fauci, who led much of the U.S. response to the COVID-19 pandemic, said testimony from former Centers for Disease Control and Prevention (CDC) Director Robert Redfield that he was excluded from a conference call about the possible origins of the virus was “unequivocally incorrect.” Fauci told Fox News Channel’s Neil Cavuto in an interview on Thursday that he was not involved in deciding who would be involved in a call he took with a group of evolutionary virologists to discuss the “possibility” that the virus was “engineered.” “He is totally and unequivocally incorrect in what he’s saying that I excluded him,” he said. “I had nothing to do with who would be on that call.” Fauci, the former director of the National Institute of Allergy and Infectious Diseases, made his comments in response to testimony that Redfield gave on Wednesday before a House select subcommittee investigating the COVID-19 pandemic. Republicans serving on the committee focused much of their attention on the theory that the virus escaped from a research laboratory in Wuhan, China, causing the pandemic to start. Redfield said he believes this theory “based on the biology of the virus itself” more so than the theory that the virus naturally spread from an animal to humans. Rep. Nicole Malliotakis (R-N.Y.), a member of the subcommittee, asked Redfield about a meeting that Jeremy Farrar, the director of the British charity Wellcome Trust, organized of 11 top scientists from five time zones, including Fauci, to discuss the pandemic in February 2020. She said Fauci responded to an invitation he received for it that he wanted to “keep this group really tight” and keep the discussion “in total confidence.” Redfield testified that he had multiple conservations in January 2020 with Fauci, Farrar and Tedros Ghebreyesus, the director-general of the World Health Organization, about scientists needing to explore both hypotheses. Malliotakis asked Redfield why he was “excluded” from the call Farrar organized, and Redfield responded that he was told that they “wanted a single narrative” and he had a different point of view about the origins of the pandemic.
House votes to declassify info about origins of COVID-19 (AP) — The House voted unanimously Friday to declassify U.S. intelligence information about the origins of COVID-19, a sweeping show of bipartisan support near the third anniversary of the start of the deadly pandemic. The 419-0 vote was final congressional approval of the bill, sending it to President Joe Biden’s desk. It’s unclear whether the president will sign the measure into law, and the White House said the matter was under review. “We’re taking a look at the bill,” said White House press secretary Karine Jean-Pierre. Debate in the House was brief and to the point: Americans have questions about how the deadly virus started and what can be done to prevent future outbreaks. “The American public deserves answers to every aspect of the COVID-19 pandemic,” said Rep. Michael Turner, R-Ohio, the chairman of the House Intelligence Committee.
US rescinds recent Covid testing rules for travelers from China - People who want to fly from China to the U.S. will have an easier time of it starting Friday.Special Covid testing rules for people traveling from China and its administrative areas, which were put in place on January 5 during a big outbreak of cases in China, were officially rescinded at 3 p.m. ET Friday, according to a news release from the US Centers of Disease Control and Prevention.A source had told CNN earlier this week that the CDC order was expected to be dropped as soon as Friday.What this means is travelers departing from China, Hong Kong, Macau and a few designated airports located elsewhere will no longer have to submit to a pre-flight test to get a negative result or show documentation of recent recovery from Covid-19 to board a flight to the U.S.The CDC said in its Friday news release that the order was put in place because of “concerns that Covid-19 cases were surging in the [People’s Republic of China].“At that time, mitigation measures were largely not known to be in use in the PRC, and there were significant gaps in data and information on cases, hospitalizations and deaths.”The CDC said it now has more confidence things have gotten better in China.“Current available epidemiologic data through global data sets and modeling results indicate that the Covid-19 surge experienced by the PRC has returned to a baseline measure,” the release said.The CDC also said that no variants of concern have emerged from China. The agency said it will work with other agencies “to monitor travel patterns” between China and the U.S. and “adjust its approach as needed.”
COVID vaccine prices could quadruple --The U.S. government paid around $10 billion in the early years of the pandemic to develop and purchase Moderna's COVID-19 vaccine as part of Operation Warp Speed. So far, any American who wants the shot has paid nothing out-of-pocket for it — the federal government has footed the bill.But once it's time to switch to the next version of the vaccine (expected to be tailored to whatever strain of the virus is circulating later this year), individual patients will have to pay for the shot if their health insurance doesn't cover it. The proposed price: roughly $130 per dose.Sen. Bernie Sanders, for one, is outraged."How is the CEO of this company thanking the taxpayers of this country who are responsible for making him and his colleagues incredibly rich?" Sanders asked rhetorically on the Senate floor recently. "He is thanking them by proposing to quadruple the price."Sanders chairs the Senate Committee on Health, Education, Labor and Pensions, which has called Moderna CEO Stéphane Bancel in for questioning about the company's pricing plan on March 22.The same day Bancel's appearance before the committee was announced, Moderna said it would provide the vaccine to uninsured or underinsured patients at no cost. This patient assistance program is set to begin in MayModerna's move is politically savvy, says Larry Levitt, executive vice president for health policy at the Kaiser Family Foundation."This gives Bancel a talking point when he appears before Bernie Sanders," Levitt says. "I think it blunts the criticism, but I think there will still be plenty of criticism."
Sanders introduces bill to raise minimum teacher pay to $60,000 a year - Sen. Bernie Sanders (I-Vt.) introduced legislation on Thursday that would make the minimum pay for public school teachers in the U.S. $60,000 a year, following calls from President Biden to give teachers a raise last month. The Pay Teachers Act of 2023, co-sponsored by a number of lawmakers including Sens. Elizabeth Warren (D-Mass.) and Ed Markey (D-Mass.), would provide states with federal funds to establish minimum teacher salaries of at least $60,000 a year. It would also triple the funding of the Title I-A program, which provides funding to schools with a high percentage of students that come from low income backgrounds. “It is simply unacceptable that, in the richest country in the history of the world, many teachers are having to work two or three extra jobs just to make ends meet,” Sanders said in a statement. “No public school teacher in America should make less than $60,000 a year.” The bill would also triple funding for rural education programs and prop up programs to diversify the teacher workforce. The push from Sanders to boost public teacher pay comes after Biden included a call for raises for public educators in his State of the Union address last month. “Any nation that out-educates is going to out-compete us,” Biden said in the speech. “Let’s give public school teachers a raise.”
What Biden might try next if his student loan forgiveness plan is struck down --The Biden White House has been reluctant to talk about alternatives to its student loan relief plan for fear of undermining its case now before the Supreme Court, but should the justices strike down the proposal, they do have some options. Lawyers for the administration made their case to save President Biden’s student debt forgiveness before the justices on Tuesday, but with the plan at the mercy of a conservative-leaning court, eyes are on the administration for what comes next. “I’m confident we’re on the right side of the law. I’m not confident about the outcome of the decision yet,” Biden told reporters Wednesday. The relief was a top promise for the president during his 2020 campaign, and he announced his plan to eliminate up to $20,000 in student loan debt just a few months before last year’s midterm elections. From the outset, observers knew the proposal would be challenged legally, and it quickly became the subject of multiple lawsuits around the country, with two cases ultimately reaching the high court. Despite the apparent odds stacked against them, the Biden administration has tried to maintain an optimistic tone and not entertained talk of backing off. “The plan that we put forward in August is the plan that we have, which is also a plan that you heard the solicitor general really defend in a strong and powerful way yesterday. And that’s our plan, and we believe in our legal authority to get that done and get that implemented,” press secretary Karine Jean-Pierre said Wednesday, adding that Education Secretary Miguel Cardona had reached out to borrowers this week to let them know the White House has their back. “Our focus right now is getting this done. You saw the solicitor general really give a strong argument yesterday in front of the highest court in the land. There’s a reason we took it to the Supreme Court,” Jean-Pierre said. In the short term, perhaps the most viable alternative Biden could explore if the high court nixes his proposal is loan forgiveness through a new executive action, a possibility backed by leading Democrats including Senate Majority Leader Chuck Schumer (N.Y.) and Sen. Elizabeth Warren (Mass.). In 2021, Schumer, Warren and other Democrats called on Biden to use authority under the Higher Education Act (HEA) to cancel up to $50,000 in student loan debt for all borrowers. The 1965 law allows for student loan relief for certain groups, including those whose institutions have since closed. “Congress has already granted the Secretary of Education the legal authority to broadly cancel student debt under section 432(a) of the Higher Education Act of 1965 (20 U.S.C. 1082(a)), which gives the Secretary the authority to modify, ‘… compromise, waive, or release any right, title, claim, lien, or demand, however acquired, including any equity or any right of redemption,’” the Democrats wrote.
'The Government Is Trying To Kill Us Now': Low-Income Americans Fume In Mile-Long Food Lines After Pandemic Benefits End -- Over the past year, 18 US states have officially ended pandemic-era states of emergency - including the covid food benefit, while a December mandate from Congress will end aid in March for the other 32 states, along with the District of Columbia, the US Virgin Islands and Guam. The collective return to pre-pandemic policies includes enhanced unemployment benefits and child tax credits, as well as a rollback adjustment to Medicaid that boosted enrollment.Now, people are waiting up to nine hours in mile-long lines for free food - some of whom say they can only afford to eat once per day, while others say they limit expensive food items such as meat for specific family members, such as growing teenage boys."I thought, ‘Wow, the government is trying to kill us now," said 63-year-old Danny Blair of Kentucky. Blair, who lives in a mobile home with his wife, survives on his Social Security disability check, the Washington Post reports."They are going to starve us out," Blair continued, apparently unaware that government assistance provided during the pandemic wasn't permanent. Blair and his wife hop into their truck twice a month at 4 a.m. to ensure they get a few staples at the Hazel Green Food Project’s giveaway. On a recent Friday, they waited nine hours until local prisoners on work duty started loading bags of meat and vegetables, potato chips and cookies into vehicles in one of the nation’s most impoverished communities.From the front to the back of the line, the sea of despair and hardship along this desolate Kentucky highway foreshadowed what may be in store for millions of Americans as the federal government ended the remaining pandemic increase in monthly food stamp benefits this week. -WaPoAs the Post frames it, the pullback of pandemic-related aid could pose a setback to the Biden administration's efforts to 'slash poverty' while building a 'healthier and more sustainable middle class' - none of which were the stated goals of the temporary aid."We saw positive benefits from this and less hardship, including for families with children," said Dottie Rosenbaum, a senior fellow at the nonpartisan Center on Budget and Policy Priorities, who points out that all the free money helped reduce childhood poverty rates in 2021. "We can expect that to reverse now."Following the reduction in benefits, the average SNAP recipient's benefits are expected to drop by around $90 per month, according to the Center on Budget and Policy Priorities. That said, an even greater reduction is in store for seniors and the working poor who receive assistance from other government programs, and will likely qualify for less.
DOJ sues to block JetBlue’s $3.8 billion Spirit takeover - The Justice Department and some state attorneys general on Tuesday sued to block JetBlue’s $3.8 billion purchase of ultra-low-cost Spirit Airlines, in an attempt to counter decades of industry consolidation and ensure Americans maintain access to cheaper fares.Filed in Boston federal court, the lawsuit comes after an almost year-long investigation of the merger, which would create the fifth-largest U.S. airline, and alleges the deal would raise prices and reduce consumer choice in travel options. JetBlue and Spirit have argued that though the merger will mean fewer seats available to passengers, fares would remain low. Massachusetts, New York and the District of Columbia joined the suit.In the lawsuit, DOJ says the merger would be especially harmful to “cost-conscious” travelers, and observed that it would remove 10 to 15 percent of seats “from every Spirit plane in operation today.”“Fewer seats means fewer passengers—and higher prices for those who can still afford to make their way onto the plane. This is unlikely to stop business travelers flying on corporate expense accounts, but would put travel out of reach for many cost-conscious travelers,” the suit read.The lawsuit opens a new high-stakes opportunity for the Biden administration to make good on its pledge to boost competition across the economy. DOJ scored a key victory last fall in blocking the merger of publishing giants Penguin Random House and Simon and Schuster. However, it also lost challenges to a health care technology deal, a merger of two sugar producers and a deal between two national security contractors.The Department of Transportation is also weighing whether to intervene in the deal, according to two people familiar with the matter who were granted anonymity because they are not authorized to speak with the media. The agency has broad consumer protection authority which DOT could use to step in front of the merger, but the agency hasn’t made such a move in decades. DOT declined to comment about whether they planned to exercise this authority.
Transportation post has become political nightmare for Buttigieg - When Pete Buttigieg became Transportation secretary at the start of the Biden administration, some Democrats said it would be a perfect platform for his political prospects if not in 2024, then 2028. Buttigieg could crisscross the country, appearing before crowds in key states while elevating his name recognition, resume and overall brand. Instead, the job of Transportation secretary has been a set of compounding problems for Buttigieg, 41, who has been seen as one of the Democratic Party’s brightest stars. Buttigieg has been blasted for taking too long to travel to East Palestine, Ohio, the site of a train derailment that has created serious environmental and health concerns for the community. In January, he bore the brunt of criticism over a disastrous holiday travel season for Southwest Airlines, which resulted in thousands of people being stranded. And that same month, he was criticized over problems with the FAA, which had to ground flights for two hours for the first time in more than 20 years. “I don’t think his story was supposed to go this way,” said one Democratic strategist. “I think he took the job thinking there wouldn’t be a lot of risk surrounding the role. I don’t think he understood how political this job would be and how he’d be a punching bag.” The latest criticism came on Thursday from Sen. Mitt Romney (R-Utah) who said Buttigieg is “not ready for the responsibilities he has.” “He was a fine mayor from what I understand, but the position he’s got really would be better served by a person who’s managed a large enterprise, a state, or something of the scale he’s now dealing with,” Romney told the HuffPost when he was asked about Buttigieg’s job performance. In the past, Transportation secretaries weren’t always magnets for political criticism. But Buttigieg’s situation is unique. He’s among the most high-profile figures in the Biden administration, seen as second to Vice President Kamala Harris in terms of Democratic presidential politics as a potential successor to Biden. He’s also leading a department that is now solidly in the news given the times. COVID-era issues with the supply chain, travel and inflation have put various transportation issues in Buttigieg’s portfolio in the public view. GOP opponents have suggested that Buttigieg got his job because of his high political profile and that he didn’t deserve it. “Pete Buttigieg couldn’t organize a one-car funeral,” Sen. Tom Cotton (R-Ark.) wrote on Twitter at the time. “He was never remotely qualified for this role.” Rep. Andy Biggs (R-Ariz.) also sought to cast blame on Buttigieg. “… I am not surprised that he doesn’t know anything because that’s consistent with how he’s handled any kind of question or issue that we’ve had in our transportation sector since he became secretary,” Biggs said on Fox and Friends, the morning show on Fox News. Republicans have hit Buttigieg on personal terms as well, criticizing him for taking family leave in 2021 to care for his newborn twins alongside his husband. Earlier this week, the Transportation Department’s internal watchdog said it would also be auditing Buttigieg’s use of Federal Aviation Administration (FAA) jets. The audit came after a request from Sen. Marco Rubio (R-Fla.) who pointed to a FOX News Digital report showing the secretary had flown at least 18 times on the FAA planes.
Norfolk Southern CEO declines to commit to pay long-term health costs after train derailment -Testifying before the Senate on Thursday, the CEO of Norfolk Southern stopped short of making commitments to pay for East Palestine, Ohio, residents’ health care in the wake of a train derailment that spilled hazardous chemicals in the town. Asked by Environment and Public Works Committee Chair Sen. Tom Carper (D-Del.) whether he would compensate people for possible long-term medical costs and economic damage, Norfolk Southern President and CEO Alan Shaw did not directly answer the question. “Senator, we’re committed to doing what’s right for the folks of East Palestine,” Shaw said. “I told my team, we’re going to do more than less with the environmental cleanup and we’re going to do more than less with the citizens of East Palestine.” Asked by Carper if he’d commit to paying for long-term medical testing, Shaw similarly did not make any specific commitments. “I’m committed to doing what’s right,” he said. “We’re going to be there today, tomorrow, a year from now, five years from now, ten years from now.” Pressed later by Sen. Bernie Sanders (I-Vt.) on the question of paying for all of the healthcare needs of the people of East Palestine, Shaw repeated “we’re going to do what’s right.” “What’s right is to cover their healthcare needs, will you do that?” Sanders replied. “Everything is on the table, sir.” Shaw said.
INSIGHT: US Congress may make it easier to issue pipeline permits – US energy trade groups see an opening for reforming how the country issues permits for pipelines and other energy infrastructure because Congress is facing several pieces of legislation that it must pass this session.
- Limits on pipeline capacity can constrain new oil and gas production, the source of domestic supplies of chemical feedstock
- Permit reform has bipartisan support
- The Farm Bill and the nation’s debt ceiling all present opportunities to address permit reform
The inability to receive permits to build new pipeline capacity can distort energy markets.Energy companies are running out of pipeline capacity to take away natural gas produced in the Marcellus and Utica Shale formations in the northeastern US.Growing oil production in other parts of the country could also face constraints. Oil wells – particularly those in shale basins like the Permian in west Texas and the Bakken in North Dakota – produce associated gas. If oil producers run out of pipeline capacity to ship out that gas, then that will limit their ability to increase crude production.Slow, cumbersome permitting could sabotage the renewable energy projects that feature so prominently in President Joe Biden’s administration.The Bipartisan Infrastructure Law and the Inflation Reduction Act (IRA) set aside billions of dollars for energy transmission, hydrogen, carbon capture and many other renewable and low-carbon projects.These can be enormous projects that approach the scale of a refinery or a petrochemical complex, said Ryan Lance, CEO of ConocoPhillips. He made his comments during the CERAWeek by S&P Global energy conference.“It is procedurally impossible to today to go on this journey unless we tackle the permitting process,” Lance said.
How Ohio train wreck could complicate permitting overhaul - Last month’s train derailment and chemical spill in Ohio has led to finger-pointing from both sides of the political aisle, but it is also now hardening attitudes on a still-live issue on Capitol Hill: permitting overhaul. The connection may not be perfect, but progressives see the accident as a warning sign — that deregulation leads to disastrous environmental results. “You get things like [East Palestine] when you take shortcuts,” Rep. Jared Huffman (D-Calif.), ranking member on the Natural Resources Subcommittee on Water, Wildlife and Fisheries, said last week. Most Republicans, on the other hand, see the derailment as a call for building even more energy infrastructure. “It should highlight how much safer pipelines are than trains, so it should make what, to me, is an obvious case [for more pipelines],” Sen. Kevin Cramer (R-N.D.) said on the accident. As the East Palestine incident undergoes congressional scrutiny, the growing divide among lawmakers could further scramble negotiations on permitting. Later this week, the CEO of Norfolk Southern Co., the train company at the center of the disaster, will testify before a Senate panel, where questions on regulations will likely be prominent. At the same time, the House Natural Resources Committee will be marking up its portion of what will become the House GOP’s big energy and permitting package. The bill focuses on streamlining reviews and limiting legal challenges. In recent hearings Democrats have already been trying to connect the dots between Ohio and the attempt to ease environmental reviews of energy projects. “The results of deregulation are not more pointed than what happened in East Palestine and that derailment,” House Natural Resources ranking member Raúl Grijalva (D-Ariz.) said last week during a hearing on GOP legislation. “That happened, cause and effect, after the former administration, the Trump administration, effectively deregulated some of the safety regulations that existed for railroads,” he added. Despite that type of rhetoric from Democrats and some administration officials suggesting Trump-era regulatory rollbacks were a culprit in the crash, to this point, officials say that changes in safety standards have not yet played a role. A preliminary report from the National Transportation Safety Board pointed to an overheated wheel bearing. According to that report, the Norfolk Southern crew tried to slow the train down before it derailed.
Ohio train accident spills into permitting debate - Last month’s toxic train derailment is hardening the divide between Democrats and Republicans over how to overhaul the nation’s energy permitting process.Democrats see the accident as a warning sign that easing requirements and speeding up environmental reviews could lead to future disasters. Republicans take it as proof that the U.S. needs to build more energy infrastructure like pipelines to keep more chemicals, oil and natural gas off the roads and rails,writes POLITICO’s E&E News reporter Jeremy Dillon. Meeting President Joe Biden’s goal of a carbon-free electric grid by 2035 will likely require building a network of long-distance power lines to carry wind and solar energy to cities. But the approval process for such power lines can take years, if not decades.That’s why some Democratic lawmakers support easing project permitting requirements. But they also worry a permitting overhaul could mean expediting fossil fuel infrastructure, which is the goal for many Republican lawmakers — hence the partisan gridlock. Democrats argue the Ohio accident highlights the need for strict environmental and safety regulations. “You get things like [East Palestine] when you take shortcuts,” said Democratic Rep. Jared Huffman of California.Republicans, on the other hand, say the derailment proves how critical it is to build more energy infrastructure. They have made clear that they will only support a permitting overhaul that includes relaxed pipeline reviews.“I think one of the points to be made is you’re carrying this liquid in the pipeline underground, it can’t derail,” Sen. Shelley Moore Capito, a top Republican from West Virginia, said in a recent hearing. “It’s safer. There’s no question about that.” House Republicans are finalizing their permitting proposal this week, with the goal of moving it by the end of the month as part of a broader energy package. To advance, the proposal will need to find favor among Democrats in the Senate, where its prospects are unclear.
US senator favours separate energy-permit reform bill – US Senator Joe Manchin, whose proposal for permit reform failed in 2022, would like to see Congress make another attempt with a separate bill, he said on Friday. Manchin’s proposals were attached in a continuing resolution. The proposals attracted bipartisan support but failed to break the Senate’s 60-vote threshold to pass most legislation in the 100-seat chamber. Oil, gas and midstream producers have long complained about the time and effort needed to receive permits for pipelines and other energy infrastructure. Manchin spoke of the delays holding up the Mountain Valley Pipeline, which, once approved, would ship natural gas from the Marcellus and Utica shale through his state. However, the cumbersome permitting process of the US could threaten the ambitions of recent legislation passed during the administration of US President Joe Biden, said Senator Lisa Murkowski (Republican, Alaska). She made her comments during the CERAWeek by S&P Global energy conference. She cited the Bipartisan Infrastructure Law, the Inflation Reduction Act (IRA) and the Chips and Science Act. “There is so much on the table in terms of opportunity and grants and programmes and tax credits,” she said. “We are going to lose all of that good that we put into play if we cannot address the permitting.” Murkowski said bipartisan permitting legislation is possible. Manchin added, “Republicans have been begging for permitting reform for years.” Despite such Republican support in previous years, Manchin’s proposal did not attract enough bipartisan votes to pass the Senate, something he blamed on political dynamics. In the current congressional session, Democrats hold a majority in the Senate and Republicans hold one in the House of Representatives, so any legislation will have to be bipartisan if it has a chance of passing Congress. After the Republicans captured a majority in the House in the midterm elections of 2022, Manchin approached Representative Kevin McCarthy (Republican, California), the new speaker of the House. “Permitting was the first thing that came out of our mouths,” Manchin said. “The US has the most over-regulated, over-judicated process in the world. We just can’t continue.” Manchin’s proposals would not remove steps in the permitting process, but they would impose timelines and seek other ways to make existing processes more efficient. In addition he suggested that a future reform bill could allow federal agencies to simultaneously review a permit application. This could include the Environmental Protection Agency (EPA), the Department of the Interior and the US Army Corps of Engineers, he said. Meanwhile, the reform must allow people to retain their ability to challenge permits in court without abusing the system to sabotage the projects from ever being built.
Biden delays five-year offshore leasing plan, sparking Manchin pushback - In his latest clash with the White House, Sen. Joe Manchin III (D-W.Va.) sharply criticized the Biden administration Wednesday for delays on a new federal offshore drilling plan that the Interior Department says it needs until December to put into effect. Manchin — an oil industry advocate who has been key to supporting Biden policies in a narrowly divided Congress — has recently pushed back against the administration for its appointments and its implementation of the Inflation Reduction Act, including on how it affects oil and natural gas leasing in Alaska. In court documents this week, Interior Department officials argue that they need the rest of this year to finish a legally required five-year plan to lease offshore territory for oil and gas development. The plan is months behind deadlines set in law, but in a federal appeals court brief Monday, department officials said they need the extra time to review public comments and complete other legally required analyses on a proposal issued last summer. Manchin says the delays pose a risk to steady domestic supplies of oil and natural gas. He accused the administration of slow-walking a new plan as part of its push against fossil fuels. He also said the administration was failing to meet legal requirements that every other administration has met to have a new five-year offshore leasing plan in place before the prior plan expired. “They are putting their radical climate agenda ahead of our nation’s energy security, and they are willing to go to great lengths to do it,” Manchin said in a news release Wednesday. “I will hold their feet to the fire on this.” An Interior Department spokeswoman declined to respond to Manchin’s comments. Although months of further delays have been widely expected, Interior had not made any announcement about its timeline or publicly detailed its plans before Monday’s court filing. The last five-year plan expired in June, and Interior officials had signaled last summer that a new proposal for 2023-2028 was unlikely to be in place by the start of this year. The industry’s largest trade group, the American Petroleum Institute, has sued over the delays — which have been developing since the Trump administration — and has asked the U.S. Court of Appeals for the D.C. Circuit to order Interior to approve a new program by Sept. 30. Interior officials said in their court brief Monday that that is not enough time and, further, that the judges should reject the API’s request because the group does not have standing to file such a challenge. The plan is a top priority for oil companies because offshore sites account for roughly 15 percent of U.S. production, and that output is likely to decline years from now if the government limits new leasing in the meantime. Leaders at the API and other industry executives at the CERAWeek energy conference here have said they are frustrated that the administration has let so many deadlines lapse and consider Interior’s plan a major signal for how Biden will treat U.S. oil companies. “We’re 250 days from when the last five-year plan expired,” API President Mike Sommers said in an interview Monday. “So are they going to do a five-year plan that actually encourages development in the Gulf of Mexico?” Manchin has expressed outrage in recent weeks at several policies of the administration, especially over how it is fulfilling the energy and climate provisions of last year’s Inflation Reduction Act. Manchin helped negotiate the spending package and has criticized the administration as reluctant to meet the spirit of the law, especially its offshore drilling mandates and rules tied to electric-vehicle tax credits. He has threatened to withhold support for executive branch appointees that need Senate confirmation, a major challenge for Biden because of Democrats’ slim Senate majority and because Manchin controls the Senate Energy Committee.
Manchin says he won’t advance Biden lands nominee - Sen. Joe Manchin (D-W.Va.), who chairs the Senate committee tasked with evaluating presidential nominees related to energy and natural resource issues, said Friday that he will not advance one of President Biden’s nominees. Manchin, in a Houston Chronicle opinion piece, said he would not advance the nomination of Laura Daniel-Davis, who has been nominated to be assistant secretary for lands and minerals management at the Interior Department. “Today, I have also decided, as chairman of the Senate Energy and Natural Resources Committee, that I will not be moving forward the nomination of Laura Daniel-Davis as assistant secretary of the Department of Interior,” he wrote. He cited an internal Interior Department memo in which Daniel-Davis signed off on a decision not to lower the fees that companies have to pay to the federal government to extract oil and gas because of climate change concerns. Based on that memo, Manchin said last week that he “will not support anyone who agrees with this type of misguided reasoning.” He went a step further Friday saying he wouldn’t move the nomination forward. In response, Interior Department spokesperson Melissa Schwartz expressed disappointment and said that Daniel-Davis will continue to work in the administration, where she is currently principal deputy assistant secretary for land and minerals management. “We are very disappointed to learn of the Chairman’s position via today’s op-ed after his support during two committee hearings and votes over the past two years,” Schwartz said via email. “Laura Daniel-Davis has served this Administration, as she has two others, with a dedication that we should aspire to see in every public servant. She will continue to lead this portfolio at Interior and implement President Biden’s direction, stated consistently and clearly since Day One, with respect to carefully balancing the role that public lands and waters play as we face the climate crisis,” she added.
These 9 House Democrats voted to overturn a Biden administration water regulation - with most Republicans on the disapproval resolution. The measure, which passed in a 227-198 vote, seeks to terminate the Biden administration rule that determines which waters must abide by federal regulations as part of the Waters of the United States. The Biden administration — when compared to the Trump administration — has a broader outlook on which bodies of water should be protected. In a floor lookout this week, the office of House Majority Leader Steve Scalise (R-La.) said the administration’s rule “expands the federal government’s regulatory power and places the burden on small businesses, farmers, local communities, manufacturers, and private property owners.” The vote was largely along party lines with a few exceptions. One Republican, Rep. Brian Fitzpatrick (Pa.), opposed the measure, and nine Democrats supported it: Reps. Sanford Bishop (Ga.), Jim Costa (Calif.), Angie Craig (Minn.), Henry Cuellar (Texas), Don Davis (N.C.), Jared Golden (Maine), Vicente Gonzalez (Texas), Jimmy Panetta (Calif.) and David Scott (Ga.). The office of House Minority Whip Katherine Clark (D-Mass.) urged members of the caucus to vote “no.” In a statement following the vote, Davis said he supported the resolution to “side with the farmers and agricultural communities of eastern North Carolina.” “Let me be clear: clean water is important to all – farmers and our agricultural communities depend on it for their livelihoods. What I cannot support is a rule that creates uncertainty for our farmers,” he added. The Hill reached out to the other lawmakers for comment. The resolution to overturn the administration’s water resolution now moves to the Senate, though it is unclear if it will clear that chamber. A spokesperson for Sen. Joe Manchin (D-W.Va.) told The Hill that the senator will vote in support of the resolution, and Rep. Jon Tester (D-Mont.) said he is undecided. The resolution needs a simple majority to pass.
Biden makes Oval Office pitch on critical minerals - President Joe Biden and the head of the European Commission met at the White House on Friday and agreed to forge ahead with a trade pact that will allow the European Union to tap into supply chains flourishing under the landmark Inflation Reduction Act.After the meeting, European Commission President Ursula von der Leyen told reporters the two leaders are advancing the pact to jointly tackle the threat of climate change, and that the agreement will ensure critical raw materials that are sourced or processed in the European Union will have access to the American markets “as if they had been sourced in the United States.” Biden and von der Leyen in a joint statement released after the meeting said they intend to immediately begin negotiations on a targeted critical minerals agreement on enabling critical minerals extracted or processed in the European Union to count toward requirements for clean vehicles in the Section 30D clean vehicle tax credit of the Inflation Reduction Act.The E.U. and White House are also working on a “transparency dialogue” around incentives that are being given to the clean tech industry, and von der Leyen said the combination of addressing electric vehicles, access to critical minerals, supply chains and transparency are all necessary to addressing climate change in a joint manner.“For us it’s important on both sides of the Atlantic to know what kind of incentives are being given to the clean tech industry, to make sure that we join forced to boost the clean teach industry that is crucial and paramount for reaching circular economy, a net zero economy,” said von der Leyen.According to the joint statement, the so-called Clean Energy Incentives Dialogue aims to coordinate incentive programs in the U.S. and Europe so they are “mutually reinforcing” and don’t lead to “windfalls for private interests.” The dialogue will be part of the EU-U.S. Trade and Technology Council, according to the release, and will help support information sharing on non-market policies and practices of third parties like China.Biden and van der Leyen also said in the release that they are committed to “achieving an outcome” in the Global Arrangement on Sustainable Steel and Aluminum negotiations by October 2023. “Together, we will incentivize emission reductions in these carbon-intensive sectors and level the playing field for our workers,” the two leaders said in the statement.Biden’s meeting with von der Leyen arrives after weeks of stated tension among European officials around the Inflation Reduction Act, which was signed into law late last year (Climatewire, March 10).European officials have warned that some provisions, specifically those around domestic content requirements for EVs, discriminate against European companies producing clean technologies and materials.Senate Energy and Natural Resources Chair Joe Manchin (D-W.Va.) in a statement Thursday night criticized what he said were rumors about the administration “thoughtlessly considering opening up the EV credit’s eligibility beyond our free trade agreement partners and allow the laundering of Chinese minerals and materials through Trojan horse agreements” (E&E Daily, March 10).
Biden scraps reliance on market for faith in broader government role - President Biden has embarked upon the most ambitious use of federal economic power in several decades as he seeks to reshape major U.S. industries for long-term prosperity while pressing businesses to deliver immediate benefits for consumers by lowering prices today.Biden’s twin-barreled economic offensive faces numerous hurdles but has sparked billions of dollars of private-sector investment and changed entrenched corporate practices.Audi and Eli Lilly last week became the latest companies to respond to Washington’s carrot-and-stick approach, as the German carmaker said it “probably” would boost its U.S. output in response to the administration’s electric-vehicle subsidies and the pharmaceutical giant bent to the president’s calls to slash the price of insulin.Eli Lilly, one of the world's top insulin producers, said on March 1 it would cut the price of the drug that 7 million Americans use daily by 70 percent. (Video: Reuters)Biden is spending federal cash on several audacious goals, including reversing the erosion of high-technology manufacturing, accelerating the transition to a clean-energy economy and repairing the nation’s rotting infrastructure. At times, he has stretched the powers given to him by Congress in pursuit of unrelated social policies. And where he lacks legislative authority, the president has jawboned corporate executives to cut drug prices, airline fees and the cost of internet access. Biden’s rejection of long-standing orthodoxy on the state’s proper economic role marks the end of an era in which Washington habitually bowed to the market — and is a gamble on an interventionist approach that in the past has delivered economic wins as well as government waste.“This is a big moment,” said Harvard University professor Jeffry Frieden, the author of “Global Capitalism.” “This is a substantial shift in policy, and it’s going to be important to national economic growth for the foreseeable future.”
CERAWeek: What Big Oil thinks of the climate law - — The enactment of sweeping U.S. climate change legislation may be pivotal for early-stage technologies like low-carbon hydrogen, but an arduous permitting process and other challenges could stunt their progress, oil and gas executives said Tuesday. The Inflation Reduction Act — signed into law by President Joe Biden last year — includes approximately $369 billion in climate and energy spending. Much of that comes in the form of tax credits targeting everything from wind and solar to batteries to “clean” hydrogen made from renewable or low-emissions electricity. But while oil and gas leaders gathered at CERAWeek by S&P Global said the law will incentivize investments in carbon capture technologies and carbon-free hydrogen, they also called for changes to the permitting process to make it easier to build projects involving those technologies. “It’s still procedurally impossible for our country to go through this because our permitting does not allow us to do this,” said Ryan Lance, CEO of ConocoPhillips Co., a Texas-based oil and gas company. Lance was one of many energy executives to weigh in on the climate law and permitting issues Tuesday at CERAWeek, one of the most prominent energy conferences in the world. The comments follow those of senior White House adviser John Podesta, who said Monday that it’s time to get back to work to pass “permitting reform legislation” (Energywire, March 7). Sen. Joe Manchin, a West Virginia Democrat who supports permitting changes, is scheduled to speak Friday at CERAWeek. The annual event, which runs Monday through Friday this week in Houston, is being held for the first time since the Inflation Reduction Act was signed by Biden in August. The conference underscores ongoing challenges facing the oil and gas industry amid rising global temperatures and the Biden administration’s efforts to significantly curtail greenhouse gas emissions that drive climate change. For oil and gas and related sectors of the economy, hydrogen produced from renewable energy could help slash without eliminating fossil fuels, according to some experts. How far the administration’s signature climate law will go toward incentivizing that and other technologies, however, is an open question. Although Lance said the law has made hydrogen production in the U.S. “probably the cheapest in the world,” other speakers said the financial picture for hydrogen gas made without fossil fuels remains uncertain.
Biden admin paradox: Boost oil — and cut CO2? -— The Biden administration’s seemingly contradictory energy and climate strategy was on full display here Wednesday: Try to pivot away from fossil fuels, but promote them for now.Energy Secretary Jennifer Granholm faced that paradox as she addressed energy leaders and insiders gathered in a hotel ballroom, praising the uptick in U.S. oil and gas exports during Russia’s war in Ukraine while touting a clean energy shift.“Europe is poised to reach the spring without major outages or shortages, and that’s thanks in no small part to many in this room, who have been producing and exporting and working with the U.S. and with allies,” Granholm said.“Indeed, the U.S. has become in this year an indispensable energy partner to our allies and a global energy powerhouse,” she said to applause.Granholm’s remarks at the CERAWeek by S&P Global conference came one year after she called on the oil and gas industry — at the same meeting of energy leaders — to boost production (Energywire, March 10, 2022). At the time, industry leaders criticized the Biden administration for what they saw as a slow permitting process for liquefied natural gas terminals and other projects.Since then, U.S. crude oil exports to Europe have climbed along with an increase in liquefied natural gas shipments. The European Union slapped a ban on seaborne Russian crude in December amid Russia’s continuing war in Ukraine. And last month, the body banned some key Russian petroleum products (E&E News PM, Feb. 6).The surge comes as the Biden administration is simultaneously pushing to decarbonize the U.S. power sector by 2035 and move away from vehicles and power plants that rely on oil and gas from many of the companies appearing at the conference. President Joe Biden has called for a net-zero U.S. economy by midcentury.“We know that oil and gas is going to remain a part of our energy mix for years to come,” Granholm said. “Even the boldest projections for clean energy deployment suggest that in the middle of the century we are going to be using abated fossil fuels.”The fossil fuel sector says it’s trying to work constructively with the White House. But top representatives of the industry are increasingly pressuring the Biden administration to deliver on one of its most coveted priorities: more leases to operate in the Gulf of Mexico, Alaska and throughout the western United States.“The president said we’re going to be around for a while — at least 10 years,” said Mike Sommers, president of the American Petroleum Institute trade group, referring to remarks made during President Joe Biden’s State of the Union address that many conservatives mocked (Energywire, Feb. 8).“There has to be signals to the industry that these investments in the United States continue to make sense based on government policy. The policy has to meet the improved — not great but improved — rhetoric that we’ve heard from the administration in the last year,” Sommers said in an interview Wednesday.
No avoiding it now: Immigration issues threaten Biden’s climate program - President Joe Biden’s plan for greening the economy relies on a simple pitch: It will create good-paying jobs for Americans. The problem is there might not be enough Americans to fill them. That reality is pressuring the Biden administration to wrestle with the nation’s immigration system to avoid squandering its biggest legislative achievements.“There’s no question that addressing our broken immigration system in America would address many workforce shortages,” Sen. Ben Ray Luján (D-N.M.), a vocal proponent of immigration overhaul, told POLITICO. “There’s employment needed right now. Jobs are available.”Congress has put a record amount of money behind boosting jobs the U.S. workforce presently does not appear equipped to fulfill. That includes $369 billion in climate incentives from the Inflation Reduction Act, $550 billion in new money through the Infrastructure Investment and Jobs Act, and theCHIPS and Science Act’s $52 billion to boost semiconductor manufacturing.Lawmakers, former administration officials, clean energy and labor advocates said immigration fixes are needed if the administration wants to ensure its biggest victories don’t go to waste — and that the nation can fight climate change, add jobs and beat geopolitical rivals like China in the global marketplace. Those changes include raising annual visa caps for highly skilled workers needed to grow the next wave of U.S. industry and securing ironclad work protections for people in the country on a temporary basis, they said. It’s the key to building a workforce needed to design, manufacture and install millions of new appliances, solar panels and electric vehicles.The high stakes for Biden’s jobs agenda, which will be a pillar of his likely reelection message next year, may force the White House to finally grapple with an issue it’s mostly kept on the back burner.President Donald Trump cut legal immigration in half over his four years in office through a mix of executive orders that halted immigration from Muslim countries and limited the ability of people seeking to join their spouses and other family members in the U.S. As Republicans have attacked Biden over the migrant crisis at the southern border, his administration has kept some of his predecessor’s immigration policies in place. And the White House is wary about enabling additional GOP attacks that would likely ignore the economic rationale for any easing of legal migration and simply hammer Biden as “soft” on immigration.In addition, calling for foreign-born workers would appear at odds with Biden’s blue-collar, American-made green revolution. Last decade saw the U.S. population grow at its slowest rate since the Great Depression, yet the White House remains somewhat hesitant to take further executive action or use its bully pulpit on immigration, according to people familiar with the administration’s thinking. But they said the administration recognizes immigration tweaks could break a labor shortage raising the price of goods through supply chain constraints, slowing clean energy projects and preventing highly skilled people from helping American businesses lead in emerging global industries.
Senate chatter grows louder on carbon tariff - Optimism is growing in the Senate for instituting a tariff on carbon-intensive goods, a concept environmentalists have long considered a crucial tool to combat climate change. Republicans are actively engaging on the issue, with Sen. Bill Cassidy of Louisiana dangling introduction “in a month, or a month or two,” of what would be the first GOP-led carbon tariff bill — ever. Sen. Kevin Cramer (R-N.D.) is working on a product, too. Advocates also see a chance for Sen. Sheldon Whitehouse (D-R.I.) to raise the profile of the issue. As Senate Budget Committee chair, Whitehouse has pledged to draw the connection between the climate crisis and future economic calamity, and discussion of a carbon tax has already arisen in that context. Advertisement Sen. Mitt Romney (R-Utah), at a recent committee hearing, noted, “We do a lot of things that make us feel good about ourselves but will have almost no impact on global emissions. If we want to do something serious about global emissions, we need to put a price on carbon.” For many years, climate hawks were preoccupied with the government setting a price for greenhouse gas emissions to encourage emitters to pursue alternative, more environmentally friendly means of energy production. Democrats at one point discussed putting a carbon tax in the Inflation Reduction Act as a revenue-raiser but dropped it amid concerns it could disproportionately affect lower-income households. Many Republicans, however, are inclined to balk at any new tax, period. Now, lawmakers are more focused on getting agreement on a carbon border adjustment mechanism, or CBAM, which is tantamount to environmental trade policy that would slap a fee — or tariff — on imported goods based on their carbon content as a means of incentivizing decarbonization broadly. It’s far from certain the current chatter will lead to a bill that can actually become law in the 118th Congress, where partisan divisions in a presidential election cycle will make legislating exceedingly difficult. But lawmakers and advocates say there’s an opportunity at the very least to build momentum now around an issue that has been the subject of debate for years, thanks not just to a growing recognition of mounting climate challenges but increased anxiety about China’s rising power and influence.
House Republicans announce major energy package as top priority bill - House Republicans on Thursday announced that a major energy package that has been in the works for weeks will be known as H.R.1, signifying that it’s the party’s top priority for the congressional session. The bill, called the Lower Energy Costs Act, is expected to include a large slate of energy policy proposals.It includes proposals aimed at speeding up the country’s approval process for energy and mining as well as limiting states’ ability to block projects like pipelines that run through their waters, according to press releases from the House Natural Resources and Transportation and Infrastructure Committee. The bill is also expected to to include suggestions from the House Energy and Commerce Committee, which on Thursday took up legislation that would prohibit a ban on fracking, limit the president’s authority to block cross-border project permits — such as President Biden’s blocking of the Keystone XL pipeline — remove restrictions on natural gas imports and exports, as well as repeal portions of the Inflation Reduction Act that provided funding to address climate change and pollution. Majority Leader Steve Scalise issued a statement Thursday saying he’ll formally introduce the bill next week.“I am proud to announce that I will be introducing our H.R. 1, the Lower Energy Costs Act, to cut red tape and increase energy production here at home to lower energy costs and stop our reliance on hostile foreign dictators for our energy and minerals,” Scalise wrote.“With the introduction of the Lower Energy Costs Act, we will put a stop to the war on American energy, become energy independent again, and lower costs for families who are struggling,” he added. The legislation is not expected to ultimately become law, given its highly partisan nature. But, it gives an indication as to what Republicans are pointing to as their top policy priorities.
House GOP readies its first big agenda push: A massive energy bill - Nearly three months after they swept in, House Republicans are almost ready to take the first big piece of their agenda to the floor. And it’s not exactly a shoo-in.Speaker Kevin McCarthy and his team have spent weeks assembling a marquee energy package designed to unite their fractious conference and accomplish one of their biggest pledges from last year’s gas-price-obsessed midterms. The energy package — which they aim to pass the last week of March — is set to include some of the party’s most popular pitches over the past decade, from boosting fossil-fuel production on federal lands to disapproving of President Joe Biden’s block on the Keystone XL pipeline to easing environmental reviews of energy and mining projects.But that wide-ranging appeal across the GOP’s ideological spectrum also creates more pressure points for McCarthy to manage. He’ll have zero room for error and face a herculean task in preventing last-minute changes on the floor that could risk unraveling the entire plan.“Everybody will have a little different perspective. But when you want to attack inflation in this country, it starts with an all-of-the-above energy policy, and I think that will be the more unifying thing,” said House Majority Whip Tom Emmer (R-Minn.).While each of the 20 or so bills getting united for the House package has broad support in committee, senior Republicans are still deciding how exactly to maneuver on the floor. While conservatives have demanded a kind of “open season” for amendments, GOP leaders sense that could be a risky strategy for such a high-stakes bill — one that’s likely to be a key plank in their 2024 platform. They’re still undecided on whether to allow a so-called “open rule,” according to multiple lawmakers and aides.“That’s the five-vote majority problem,” said Rep. Kelly Armstrong (R-N.D.), noting that the GOP has already seen energy issues like offshore drilling pit cause intra-party tension on the floor — most recently pitting drill-skeptical Florida Republicans against their colleagues. “If you have a delegation that has a problem, you have a bill problem.”The big energy package has long been atop the GOP’s agenda, not all of which has gone smoothly after a dragged-out speaker’s race and slow start to legislating. While House Majority Leader Steve Scalise (R-La.) had pledged to bring up bills on the southern border, criminal justice and abortion insurance restrictions within the first two weeks of the new majority, those bills have all stalled amid resistance within the conference.And there’s another big reason House Republicans are relishing the chance to bring this to the floor. It’s considered their opening bid on the wonky yet critical issue of energy permitting — a rare policy area that both parties believe could lead to a bipartisan deal that President Joe Biden’s willing to sign.They know that their package’s pro-fossil-fuel proposals and its targeting of Biden’s progressive climate policies are unlikely to garner bipartisan support, but GOP lawmakers hope the permitting plank in particular represents an aggressive starting point for negotiations with Senate Democrats. Perhaps their most politically vulnerable centrist, Sen. Joe Manchin (D-W.Va.), watched his permitting reform plan fall short last year even as his party controlled both the House and Senate.
The battle over Biden's 'woke' investing rule is far from over - The Washington Post --President Biden is expected to issue the first veto of his presidency after Congress last week passed a bill that would repeal a Labor Department rule on climate-friendly investing. But the presidential veto will hardly end the battle over the rule, which 25 Republican attorneys general have challenged in federal court. The congressional vote “was somewhat performative because everyone knew that Biden would veto it," Josh Lichtenstein, a partner at the law firm Ropes & Gray, told The Climate 202. "I think the litigation is probably the most credible actual threat to the rule.”The litigation comes as conservatives increasingly charge that ESG investing — shorthand for environmental, social and governance investing — allows fund managers to prioritize social issue considerations over earnings. The battle over the rule has a long and winding history.
- In 2020, the Trump administration finalized a rule requiring those overseeing retirement plans to always put economic interests ahead of other considerations.
- In November, the Biden administration reversed the Trump regulation, replacing it with a rule clarifying that plan managers may consider ESG factors as long as they’re in the best financial interest of beneficiaries.
- Led by Texas Attorney General Ken Paxton, 25 states sued in January over the Biden rule.
- And last week, the House and Senate moved to rescind the Biden rule under the Congressional Review Act, which allows lawmakers to scrap a regulation within 60 legislative days of its enactment by a simple majority vote.
The states argue that the rule allows retirement fund managers to prioritize ESG considerations over profits, jeopardizing the savings of millions of Americans.The regulation “prioritizes woke Environmental, Social, and Governance (ESG) investing over protecting the retirement savings of approximately two-thirds of the U.S. population,” Paxton said in a statement last month.
Another FBI Whistleblower Says He Was Forced To Inflate Domestic Terrorism Numbers - Another FBI whistleblower has stepped forward to tell the House Select Subcommittee on the Weaponization of Federal Government that the agency had him boost domestic terrorism figures by dividing cases into multiple subdivisions. FBI Special Agent Garret O'Boyle from the Kansas City field office told Congressional investigators that the agency had him divide a single domestic terrorism case into "four different cases," so that the FBI could go to Congress and say "look at all the domestic terrorism we’ve investigated," Fox News reports. "Where, really, I was working on one case," O'Boyle continued. "But, the FBI can then say, well, he actually had four, and so we need you to give us more money because look at how big of a threat all this domestic terrorism is." He also said that the FBI created a specific threat tag for pro-lifers "THREATSCOTUS2022" amid the leak of the Supreme Court's opinion in Dobbs v. Jackson Women's Health Center - as opposed to the raging pro-abortionists nationwide. According to O'Boyle, the threat tag was shifted and "began focusing on pro-life adherence." "When this threat tag came out, it was like, why are you focusing on pro-life people?" he said in an interview reviewed by Fox News. "It’s pro-choice people who are the ones protesting or otherwise threatening violence in front of Supreme Court justices’ houses."
Discover Credit Cards Will Track Gun Purchases From April - Credit card provider Discover Financial Services will soon allow its network to track purchases made using payment cards at gun stores—triggering criticism that such activity leads to targeting gun owners. In September, the International Organization for Standardization (ISO) had launched a Merchant Category Code (MCC) for gun retailers. ISO is the organization responsible for classification of merchant categories used by payment cards. Discover told Reuters that it plans to implement the code beginning April. “We remain focused on continuing to protect and support lawful purchases on our network while protecting the privacy of cardholders,” the company said. Discover’s decision has attracted strong criticism online. “This is a MASSIVE problem Congress needs to address, IMMEDIATELY!” Lauren Boebert (R-Colo.) said in a March 3 tweet. “Discover Card will begin tracking firearm purchases starting next month. There are more than 50 million Discover cards in use right now. They are coming for your guns little by little,” Congressman Troy E. Nehls (R-Texas) said in a March 3 tweet. “It’s called a Social Credit System. I have been warning ppl this is coming. This is just the tip of the iceberg,” said radio host Doll Arntzen. Social Credit System is a national credit rating system used by Beijing that ranks and blacklists people in China based on criteria approved by the communist regime. “American citizens should be able to exercise their Second Amendment rights without fear of being tracked or discrimination against. We’re solving this in West Virginia with the Second Amendment Financial Privacy Act. Congress needs to follow our lead,” said Riley Moore (R-W.Va.) in a tweet.
Greene to introduce resolution declaring Antifa a terrorist organization Rep. Marjorie Taylor Greene (R-Ga.) said on Sunday that she will be introducing a resolution to declare Antifa as a terrorist organization on Tuesday, after blaming the group for protests at a police training facility in Atlanta. “Antifa are domestic terrorists and I’m introducing my resolution to officially declare them a terrorist organization on Tuesday,” she tweeted on Sunday. A progressive group called “Stop Cop City” has been protesting against the new training facility being built in the wooded parts of Atlanta since plans for it were announced, arguing it will promote the militarization of the police and may result in environmental concerns. Fox 5 reported Sunday that the facility was on lockdown after at least one construction vehicle was set on fire amid the latest protests on Sunday. Greene blamed the far-left organization Antifa for the incident on Twitter, though she did not offer any evidence that Antifa was behind the protests on Sunday. “This is domestic terrorism. It was planned for weeks and announced on social media. Antifa are self proclaimed communists and consistently organize to attack our government over and over again. They should be taken seriously and not tolerated anymore,” she tweeted. In January, Georgia Gov. Brian Kemp (R) issued a state of emergency after peaceful protests broke out in response to a police shooting of an activist during an operation to clear out the construction site for the facility. Greene’s resolution would not be the first of its kind. Rep. Lauren Boebert (R-Colo.) introduced a resolution in 2021 to designate Antifa as a terrorist organization, but the resolution did not get any traction in the Democrat-controlled House.
House Republicans refuse to join Democrats in denouncing white supremacy - More than two dozen Republicans on the House Oversight and Accountability Committee have refused to join Democrats in signing a letter denouncing white supremacy. Earlier this week, ranking member Rep. Jamie Raskin (D-Md.) sent a letter to Chairman James Comer (R-Ky.) urging Republicans to join him and his fellow Democrats in denouncing “white nationalism and white supremacy in all its forms, including the ‘Great Replacement’ conspiracy theory.” Though all 20 committee Democrats signed the letter, all 26 Republicans on the committee refused to sign. The letter comes after the committee’s recent hearing “On the Front Lines of the Border Crisis: A Hearing with Chief Patrol Agents.” According to the letter, multiple Republican members “invoked dangerous and conspiratorial rhetoric echoing the racist and nativist tropes peddled by white supremacists and right-wing extremists,” during the hearing, including describing migrants arriving to the country as an “invasion.” Raskin also argued that some members have accused the Biden-Harris administration of deliberately opening the border in order to change American culture. This rhetoric, Raskin wrote, is used by extremists who believe pro-immigration policies are actually part of a conspiracy theory to replace white Americans. The “Great Replacement” theory has been used to justify terror acts such as the mass murders of Black Americans at a Tops Supermarket in Buffalo, N.Y., the Tree of Life Synagogue in Pittsburgh, Pa., and a Walmart in El Paso, Texas. “This is not the first time that you and other House Republicans have been called on to publicly renounce and denounce the racist and xenophobic tenets of white supremacy,” Raskin wrote. “As Chairman, you have another opportunity to take a public stand against the deliberate amplification of dangerous racist rhetoric that has had deadly consequences in this country,” he added. In a statement to Newsweek, a spokesperson for Oversight Committee Republicans said the letter was meant to “distract” from the number of border crossings under the Biden administration, which have reached record levels.Obama-era consumer protections could be overruled by SCOTUS. Here’s what’s at stake. - The Consumer Financial Protection Bureau, the Obama-era consumer watchdog formed in response to the 2008 financial crisis, finds itself facing another existential threat.The Supreme Court recently agreed to take up a ruling from the ultra-conservative Fifth Circuit Court of Appeals finding that the CFPB’s funding mechanism is unconstitutional. The agency itself has long enjoyed public support: A voter poll conducted at the beginning of December 2022 found that 8 out of 10 people polled supported its mission.Depending on the high court’s ruling, the CFPB could face major hurdles in its efforts to crack down on predatory lending and enforce other consumer protection laws. Other agencies could be threatened, too. The agency itself was created to help protect consumers from the types of business practices to led to the Great Recession and housing market meltdown in 2008.With fewer resources, the CFPB could struggle to go after large institutions such as Wells Fargo, which in December agreed to pay $3.7 billion to settle a CFPB lawsuit accusing the bank of unlawfully repossessing vehicles, freezing accounts and hitting consumers with surprise overdraft fees when they had sufficient funds.Rep. Patrick McHenry (R-N.C.), chairman of the House Financial Services Committee, who cheered the Fifth Circuit decision, has pledged to pass bills to bring the CFPB under the appropriations process and limit its rule-making authority, among other measures that would weaken the agency’s power.Critics of the anti-CFPB push note that the Fifth Circuit lawsuit was brought by a trade association representing payday lenders, which the CFPB frequently sues for alleged predatory tactics. They also point to industry donations.Liberal advocacy group Accountable.US noted that McHenry was the top recipient of campaign contributions from commercial banks in the 2022 election cycle, receiving $1.6 million, and has brought in the third most campaign cash from payday lenders among sitting members of Congress.Republicans in Congress are preparing for a Supreme Court ruling that would require the CFPB to be funded through the appropriations process instead of the Federal Reserve. With control of the House, Republicans would have considerable leverage in appropriations negotiations, giving them considerable control over CFPB’s future, experts say. GOP lawmakers, along with allies in the financial services sector, have long lamented that Congress has little control or oversight over the independent agency. They’ve also pushed back on the CFPB’s recent efforts to cap bank overdraft fees and credit card late fees, arguing that they’d shift costs to other consumers. “I think at the end of the day, the bureau probably survives, but with a smaller budget and maybe a bipartisan commission. But Republicans are gonna be in the drivers’ seat, so they’ll be able to say, ‘If Democrats want this bureau at all, you’re going to do it our way,’”
US Supreme Court hears case challenging Section 230 online liability shield -- On February 21, the US Supreme Court heard oral arguments in the case of Gonzalez v. Google. The lawsuit seeks to hold Google’s YouTube responsible for the death of Nohemi Gonzalez, a 23-year-old college student who was killed during a terrorist attack in Paris in November 2015. The suit—which was dismissed by the Northern District Court of California and the dismissal then upheld by the Ninth Circuit Court of Appeals—was brought by the Gonzalez family in 2016. The family asserted that videos produced by ISIS and posted on YouTube were promoted by the platform’s algorithms and, therefore, violated US laws against aiding and abetting terrorists. The lawsuit asserts that YouTube helped to spread the ISIS video content, contributed to the radicalization of users and their recruitment as terrorists and, therefore, assisted the deadly attack in Paris that killed Nohemi Gonzalez. For its part, Google has argued that the Gonzalez family’s claims that YouTube gave support to terrorists are based on “threadbare assertions” and “speculative” arguments. The Electronic Frontier Foundation and the American Civil Liberties Union have filed amicus briefs supporting Google on the grounds that the lawsuit represents a threat to First Amendment rights and freedom of speech online. The legal issue at the heart of the case is the federal law known as Section 230 of the Communications Decency Act—part of the Telecommunications Act of 1996—which protects online services from liability for the content posted by users of their platforms. The 1996 law was an update to the Communications Act of 1934 that created the Federal Communications Commission (FCC) and regulated telephone, telegraph and radio communications in that era. The core language of Section 230 is as follows: “No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider.” To the extent that the courts have adhered to this aspect of the law, Section 230 has functioned as a shield that protects internet companies from being liable for establishing the legal or illegal character of speech on their platforms. The 1996 law was influenced by an environment when information and news distribution were still dominated by print media. In that era, a liability line had been drawn between “publishers” and “distributors” of content such that a publisher was legally responsible for the material being printed while a distributor would be unaware of it and immune from any liability. What the transformation of global online activity and technology since 1996 has demonstrated—and this can never be addressed by the US Supreme Court or Congress—is the need for platforms such as Google, Facebook, YouTube and Twitter to be made public utilities. The continued ownership of these advanced technologies by a handful of billionaires for the purpose of increasing their personal wealth threatens both free speech and the transformation of the platforms into tools of authoritarianism. The provisions of Section 230 that are the subject of conflict within the political establishment and being argued by the Supreme Court are what are known as “Good Samaritan” protections. Contradicting the shield portion of the law, this requirement demands that online services “remove” or “moderate” content that is deemed “obscene, lewd, lascivious, filthy, excessively violent, harassing, or otherwise objectionable, whether or not such material is constitutionally protected.” In other words, according to this broad definition of what is “objectionable” material, online services are expected to violate the First Amendment and censor content on their platforms—with the proviso that they act “in good faith”—without fear of being prosecuted for acts against free speech. Along these lines, an aspect of the Gonzalez v. Google case before the Supreme Court is the assertion that YouTube failed to find and remove the objectionable ISIS content. The case says that the platform recommended the terrorist videos through its “user-persuasion” algorithm. These attention-getting-and-holding techniques are not based on an evaluation of the content itself but preoccupied with the advertising revenue they generate.
Twitter discloses another possible government censorship effort | The Hill - An old saying, attributed to Henry David Thoreau, maintains that you do not have to find a trout in your glass to know someone is watering down the milk. This week Americans found a veritable school of trout in their milk — an unintentional demonstration by the Biden administration of why such a gathering of fish is often called a “lie.”In the 17th release of the “Twitter Files,” journalist Matt Taibbi disclosed that the U.S. government is funding a group that has supported the censorship of dissenting viewpoints on social media, including those of U.S. citizens.That may sound familiar. Just a few weeks ago, I wrote here that the congressionally created, federally funded National Endowment for Democracy (NED) had supported the British-based Global Disinformation Index (GDI). The index was widely ridiculed for targeting ten conservative and libertarian sites as the most dangerous sources of disinformation; it sought to persuade advertisers to withdraw support for those sites, while listing their most liberal counterparts as among the most trustworthy.At the time, I noted that the Biden administration had played us for chumps. As we celebrated the demise of the infamous Disinformation Governing Board with its “Disinformation Nanny,” the Biden administration never disclosed a larger censorship program.Shortly after my column posted in The Hill, the NED wrote to me to say that it was discontinuing support for the GDI. Microsoft also was forced into retreat after it was shown to be pushing the GDI’s biased blacklist.Again, many celebrated a victory for free speech.Yet, here we are again staring down at a trout in our milk. This week, Taibbi reported that the State Department’s Global Engagement Center (GEC) may have supported a different disinformation blacklisting operation.The GEC controversy appears strikingly similar to the one involving the NED. Both have supported third-party organizations that carried out blacklisting. Taibbi contends that the GEC contracted with the Atlantic Council’s Digital Forensic Research Lab (DFRLab), which sent suggested blacklists to Twitter; DFRLab says Taibbi’s report is incorrect and that it does not make content moderation decisions.Yet, even Twitter censors reportedly balked at the size of the suggested blacklists and lack of supporting evidence. One list submitted by the GEC included several CNN journalists and Western government accounts, according to Taibbi.Twitter’s Patrick Conlon reportedly mocked the list by referring to network anchor Anderson Cooper, joking: “Not exactly Anderson’s besties, but CNN assets if you will.” Yoel Roth, then Twitter’s head of trust and safety, responded “omg” and “what a total crock.”It would be funny except for the fact that we know Twitter has admitted censoring many of those targeted by the government.Still, many congressional Democrats continue to oppose efforts to investigate government censorship efforts, unleashing a type of Red Scare 2.0 by accusing critics of supporting insurrectionists or being “Putin lovers.” Others have simply insisted that if you see a trout in your milk, it is just your opinion.
"They Lied To Us All": Tucker Exposes January 6 Fraud And Kangaroo-Court Cover-Up - On Monday night, Fox News' Tucker Carlson dropped unseen footage from the January 6, 2021 Capitol protest which revealed that the entire Democrat / RINO / MSM narrative underpinning the event was a complete lie.For starters, the surveillance footage show Capitol Police calmly escorting the so-called "QAnon Shaman," Jacob Chansley, throughout the Capitol complex, and even helped him find open doors.“The tapes show the Capitol police never stopped Jacob Chansley," said Carlson. "They helped him. They acted as his tour guides."Chansley, shirtless, adorned in red, white and blue face-paint and wearing a furry bison-head hat, emerged as one of the most iconic symbols of Jan 6. He was sentenced to 41 months in federal prison for "obstructing an official proceeding."The video of Chansley is jarringly inconsistent with the leftist characterization of Jan. 6 as an "insurrection." Far from thwarting Chansley's ambition to reach the Senate chamber, two Capitol police officers escorted him there. Along the way, the trio passed a large group of Capitol police officers, who appear disinterested in Chansley, even despite his flamboyant attire. The video shows Chansley and his police escorts approaching various doors to the chamber, with a police officer pushing and pulling them to see if they're unlocked.In light of the new video, it's clear that a Nov 2021 Department of Justice press release hailing Chansley's prison sentence gave a grossly misleading description of how the Navy vet and Arizonan reached the Senate chamber: "Chansley continued into the building through a broken door at approximately 2:14 p.m. He kept moving, reaching the Gallery of the Senate and then the Senate floor." "We counted at least nine officers who were within touching distance of unarmed Jacob Chansley," said Carlson on Monday. "Not one of them even tried to slow him down." “The one very serious regret that I have [is] believing that when we were waved in by police officers that it was acceptable," 33-year-old Chansley said in an interview aired by Carlson.Legacy media is no better at truth telling than the Soviet Pravda. Today we learn the truth: the Q-Anon Shaman was escorted around the capital and let into the Senate chambers by police. He even praised them for their hospitality. pic.twitter.com/AExUn5hzru"I was told the QAnon shaman was leading an insurrection not the one who is being led by police throughout the capital building. No wonder all the footage was kept from us for 2 years," tweeted Donald Trump Jr. "As always they lied to us all!"Carlson also revealed that uncharged agitator Ray Epps lied during his sworn testimony."Epps testified that when he sent the text messages to his nephew, he had already left the Capitol grounds to return to his hotel room. That is not true," said Carlson.
Tucker Carlson ripped by Capitol Police, GOP senators for mischaracterizing Jan. 6 - Capitol Police Chief Thomas Manger on Tuesday ripped Fox News and host Tucker Carlson for airing an “offensive and misleading” portrayal of the Jan. 6 attack on the Capitol. Manger wrote in an internal message to officers that Carlson’s Monday night primetime program “conveniently cherry-picked from the calmer moments of our 41,000 hours of video” to incorrectly portray the violent assault as more akin to a peaceful protest. He added that Carlson’s “commentary fails to provide context about the chaos and violence that happened before or during these less tense moments.” It’s an unusually blunt statement from Manger, who has labored keep his department away from political conflagrations. And the pushback could easily put the chief at odds with Speaker Kevin McCarthy, who had granted Carlson unfettered access to internal footage related to the riot. But Manger wasn’t alone in his criticisms — a number of Republican senators said they were, at the very least, troubled by Carlson’s depiction. “Anybody that trespassed into the United States Capitol, you know, whether they did peacefully … did it illegally,” Sen. Kevin Cramer (R-N.D.) said. “I think that it’s unfortunate that [Carlson] is the exclusive holder of the tape recording. I just think it’s the kind of thing that should be made available to everybody at the same time, so as to not have a political angle to it.” Asked about the portrayal of Jan. 6 on Carlson’s show, Sen. Mitt Romney (R-Utah) described the day as a violent attack and said any effort to “normalize that behavior is dangerous and disgusting.“ “I was here. It was not peaceful. It was an abomination,” added Sen. John Kennedy (R-La.) “You’re entitled to believe what you want in America, but you can’t resort to violence to try to convince others of your point of view.” And Senate Minority Leader Mitch McConnell held up Manger’s letter during his weekly briefing with reporters, saying that he would “associate myself entirely with the opinion of the chief of the Capitol Police about what happened on January 6th.” A Fox News spokesperson did not immediately return a request for comment on Carlson’s use of the Jan. 6 footage.
Tucker Carlson’s Jan. 6 footage sparks bipartisan outrage - Fox News host Tucker Carlson whipped up a firestorm Tuesday on Capitol Hill, sparking bipartisan backlash and igniting tensions with Capitol Police by downplaying the Jan. 6 Capitol riot on his prime-time program as “mostly peaceful chaos.” His show divided Republicans, with a number of GOP senators ripping his portrayal of the incursion at the Capitol on Jan. 6, 2021. Capitol Police Chief J. Thomas Manger, who rarely offers opinions on political issues, said the Monday night show was filled with “offensive and misleading conclusions about the Jan. 6 attack.” “The program conveniently cherry-picked from the calmer moments of our 41,000 hours of video. The commentary fails to provide context about the chaos and violence that happened before or during these less tense moments,” Manger wrote in a memo to lawmakers. “Those of you who contributed to the effort to allow this country’s legislative process to continue know firsthand what actually happened.” The segment was the first of two installments planned for this week relying on security footage granted to Carlson by House Speaker Kevin McCarthy (R-Calif.). Carlson was expected to air more clips from the footage during his show on Tuesday evening. Senate Minority Leader Mitch McConnell (R-Ky.) issued a scathing rebuke of Carlson and Fox on Tuesday, holding up a copy of the memo and saying he wanted to associate himself “with the opinion of the chief of the Capitol police about what happened on Jan. 6.” “It was a mistake, in my view, [for] Fox News to depict this in a way completely at variance with what our chief law enforcement official in the Capitol” described, McConnell said. It’s an unusual position for the host of one of Fox’s most-watched programs, who, while often a magnet for the ire of the left, seldom gets such direct criticism from those on the right. Carlson, who has previously criticized McCarthy on his show, suggested at the start of the year that the new House Speaker release all Jan. 6 security footage in order to win support from detractors threatening to block his path to the gavel. McCarthy later gave Carlson exclusive first access to the footage, but has denied that release came as a result of negotiations for the Speakership. McConnell says Fox News made ‘a mistake’ by underplaying violence of Jan. 6 Though McCarthy and other Republicans said last week that footage released for broadcast would be subject to a Capitol Police security review, and Carlson said as much on his show, Capitol Police said it saw just one of the several clips that Carlson aired on Monday: An interior door that Carlson said was blurred as a result of security concerns. “We repeatedly requested that any clips be shown to us first for a security review,” Capitol Police told The Hill on Monday. “So far we have only been given the ability to preview a single clip out of the multiple clips that aired.”
'Bulls---': GOP senators rebuke Tucker Carlson for downplaying Jan. 6 as 'mostly peaceful' — Senate Minority Leader Mitch McConnell, R-Ky., and other Senate Republicans on Tuesday lashed out at conservative Fox News host Tucker Carlson after he characterized the deadly Jan. 6 attack on the Capitol as "mostly peaceful chaos."At a GOP leadership press conference, McConnell said he wanted to associate himself with the letter sent to the U.S. Capitol Police force by Chief Thomas Manger, who denounced Carlson for spreading “offensive and misleading conclusions” about the Jan. 6 insurrection, including a “disturbing accusation” that Officer Brian Sicknick’s death had nothing to do with the riot. "I want to associate myself entirely with the opinion of the chief and the Capitol Police about what happened on January 6," McConnell said as he held up a copy of the letter. "It was a mistake, in my view, for Fox News to depict this in a way that’s completely at variance with what our chief law enforcement official here at the Capitol thinks.” A handful of other Senate Republicans on Tuesday pushed back on Carlson's claim that Jan. 6 was "peaceful chaos," with Sen. Thom Tillis of North Carolina blasting those remarks as “bullshit.” Carlson, the popular but controversial figure on Fox, made those comments to his millions of viewers Monday night as he aired select clips of never-before-seen surveillance footage of the Capitol on Jan. 6 and downplayed the violent insurrection that injured 140 police officers during an hourslong assault. “I think it’s bullshit,” Tillis told reporters in the Capitol. “I was here. I was down there and I saw maybe a few tourists, a few people who got caught up in things,” he added. “But when you see police barricades breached, when you see police officers assaulted, all of that ... if you were just a tourist you should’ve probably lined up at the visitors’ center and came in on an orderly basis.” Tillis said Carlson's depiction was as “inexcusable” and compared it to those who downplayed the fires and "devastation" during protests in Kenosha, Wisconsin, in 2020 following the police shooting of Jacob Blake, a Black man. Republican Sen. Kevin Cramer, a North Dakota conservative, said he was in the Capitol on Jan. 6 and firmly rejected Carlson's portrayal of that day as “some rowdy peaceful protest of Boy Scouts.” “I think that breaking through glass windows and doors to get into the United States Capitol against the borders of police is a crime. I think particularly when you come into the chambers, when you start opening the members' desks, when you stand up in their balcony — to somehow put that in the same category as, you know, permitted peaceful protest is just a lie,” Cramer said. “I think it doesn’t do any good for the narrative,” he added. On his show Monday night, Carlson said that while there were a few bad apples, most of the Jan. 6 rioters were peaceful and called them “sightseers,” not “insurrectionists.”
McConnell slams Fox and Tucker Carlson for Jan. 6 portrayal : NPR - Senate Republican Leader Mitch McConnell joined a chorus of widespread attacks on Fox News host Tucker Carlson for his portrayal of the Jan. 6 attack on the Capitol since he accessed more than 40,000 hours of security footage. Carlson and his team had exclusive access to the security tape surrounding the attack thanks to House Speaker Kevin McCarthy, drawing concerns the host would use the tapes to spread a new wave of disinformation. McConnell said he aligned himself with remarks issued earlier Tuesday by U.S. Capitol Police Chief Tom Manger to his rank-and-file slamming Carlson's "offensive and misleading conclusions" about the siege. He held up Manger's one-page statement — called "Truth & Justice" — near the Senate chamber on Tuesday. "It was a mistake, in my view, for Fox News to depict this in a way that's completely at variance with what our chief law enforcement official here at the Capitol thinks," McConnell told reporters. Earlier Tuesday, Manger asked his statement be read at roll call meetings for rank-and-file and posted on all Capitol Police bulletin boards. In the memo, which was obtained by NPR, Manger listed out a series of falsehoods portrayed by Fox:
- Carlson pushed "outrageous and false" allegations that officers acted as "tour guides." Manger refuted that characterization saying that officers who were severely outnumbered were using "de-escalation tactics to try to talk rioters.
- The program "cherry-picked from the calmer moments" outside the violent attack to push a false narrative dismissing the violence of the siege.
- The Fox News host claimed fallen officer Brian Sicknick's death had "nothing to do with his heroic actions on January 6." The department maintains, Manger wrote, "that had Officer Sicknick not fought valiantly for hours on the day he was violently assaulted, Officer Sicknick would not have died the next day."
McCarthy says he doesn’t regret sharing Jan. 6 footage with Tucker Carlson - Speaker Kevin McCarthy (R-Calif.) said he does not regret sharing footage from the Jan. 6, 2021, attack on the Capitol with Fox News’ Tucker Carlson despite receiving bipartisan blowback, arguing that the decision was made for transparency. “No,” McCarthy told reporters on Tuesday when asked if he regretted granting Carlson access. “I said at the very beginning, transparency. And so what I wanted to produce for everybody is exactly what I said. The people could actually look at it and see what’s gone on that day.” McCarthy’s comments came one day after Carlson aired never-before-seen angles of footage from the Jan. 6 attack on his prime-time show, rejecting the notion that the day was a “deadly insurrection” and instead describing it as “mostly peaceful chaos.” A number of deaths have been tied to the Capitol attack, and more than 100 law enforcement officers were injured amid the violence.. Asked on Tuesday if he agreed with Carlson’s description of Jan. 6 being “mostly peaceful chaos,” McCarthy responded, “I don’t know what Tucker Carlson said.” When pressed on if he believed the day was an insurrection, McCarthy returned to the matter of transparency. “I continue to hold that my job here, just like I was asked long before, is to make sure all the transparency comes out. And that’s exactly what I’m doing,” McCarthy said. “And just like all of you cover news, people who are able to interpret the way they want. But I think the fairest way to do it instead of trying to clip it into something else, allow all the transparency so everybody can see so Jan. 6 never happens again.” Later Tuesday evening, however, he reiterated that he condemns what transpired on Jan. 6. Carlson’s broadcast on Monday night — the first of a two-part installment — — ignited a political firestorm on Tuesday, with lawmakers from both sides of the aisle, and even a top law enforcement official, condemning the host’s depiction of the deadly riot. Capitol Police Chief J. Thomas Manger, who does not frequently weigh in on political matters, wrote to lawmakers in a memo that Carlson’s show was full of “offensive and misleading conclusions about the Jan. 6 attack.” “The program conveniently cherry-picked from the calmer moments of our 41,000 hours of video. The commentary fails to provide context about the chaos and violence that happened before or during these less tense moments,” Senate Minority Leader Mitch McConnell (R-Ky.) on Tuesday held up a copy of Manger’s statement and told reporters he wanted to “associate myself entirely with the opinion of the chief of the Capitol police about what happened on Jan. 6.” He said his “concern is how it was depicted.” “It was a mistake, in my view, [for] Fox News to depict this in a way completely at variance with what our chief law enforcement official here at the Capitol” described, McConnell added. McCarthy sidestepped questions about that criticism hours later. Pressed on McConnell’s reaction, McCarthy said he hoped the Senate minority leader “would’ve been concerned” about reporting from CNN that said, during the Jan. 6 riot, lawmakers were brought to Fort McNair. The Speaker said members were told not to share their location. McCarthy brought up CNN’s reporting at a separate point during the press conference as well..
McCarthy hit with ethics complaint - House Speaker Kevin McCarthy (R-CA) is facing an ethics complaint filed by a nonprofit watchdog group that accuses the GOP leader of being politically motivated in his release of security camera footage of the Jan. 6 riot to Fox News host Tucker Carlson.Members of Public Citizen filed a complaint against McCarthy on Tuesday, requesting that the Office of Congressional Ethics investigate the speaker over whether he violated House rules. The request comes one day after Carlson began releasing portions of the footage on his prime-time show, prompting concerns among other news outlets he would “advocate an inaccurate story of events.”“The Speaker’s release of security footage exclusively to Tucker Carlson is pure and simple using congressional resources for partisan gamesmanship — the very type of polarizing gamesmanship that has caused such damage to the public’s perception of the integrity of Congress,” the group wrote in its letter. McCarthy’s decision to give Carlson the footage came in response to demands from Republican lawmakers who pushed the party leader for weeks to release the video. McCarthy has repeatedly defended his decision to share the footage with Carlson, arguing the release was important to ensure a transparent investigation into the Capitol riot.The House speaker has vowed to make the footage available to other news outlets once Carlson’s crew is finished sifting through it, but it’s unclear how long that may take. Public Citizen denounced McCarthy over the decision to provide the footage exclusively to Carlson, accusing the speaker of violating the First Amendment.“It was wrong for Speaker McCarthy to provide this footage to one organization that happens to be politically aligned with him and not release the videos to the media generally at the same time,” the letter states. “This is not like granting an exclusive interview; this is providing a valuable government resource exclusively to one news outlet and discriminating against others, which flies in the face of First Amendment values.”McCarthy has previously defended releasing the surveillance tapes to only Carlson, brushing off criticism as other journalists just being “jealous.”
Tucker Carlson revels in congressional ‘hysteria’ over Jan. 6 footage - Fox News host Tucker Carlson mocked the criticism he received on Tuesday from congressional leaders on both sides of the aisle, including Senate Majority Leader Charles Schumer (D-N.Y.) and Minority Leader Mitch McConnell (R-Ky.), during the second night of his prime-time show focusing on the Jan. 6 Capitol breach. “They’re all on the same side. So it’s actually not about left and right. It’s not about Republicans and Democrats. Here, you have people with shared interests….The people who, underneath it all, have everything in common are all aligned against everyone else,” Carlson said. McConnell in a press conference earlier Tuesday said he wanted to associate himself “with the opinion of the chief of the Capitol police about what happened on Jan. 6,” referring to Police Chief J. Thomas Manger, who said that Carlson’s Monday night show was filled with “offensive and misleading conclusions about the Jan. 6 attack.” Carlson used security footage to argue on his Monday night show that the violence on Jan. 6 was “mostly peaceful chaos.” The network said 3.6 million people watched Carlson’s show on Monday, a notable bump from the 3 million the host typically averages per weeknight. Schumer said on the Senate floor earlier in the day that Carlson’s show was “one of the most shameful hours we’ve seen on cable television,” calling on Fox News and its owner Rupert Murdoch to tell Carlson to not air more security footage. “You don’t often see the Senate Majority Leader openly call for censorship on the floor of the Senate, as if that was totally normal and didn’t contradict the spirit and the letter of the First Amendment. But, of course, it does,” Carlson said. “But what’s really happening, or what you’re seeing, is hysteria — the overstatement, the crazed hyperbole, the red-in-the face anger. What is that? Outrage? Of course, it’s fear. It’s panic.” Carlson additionally name-checked GOP Sens. Thom Tillis (N.C.) and Mitt Romney (Utah), who had also criticized his Monday night show. “One thing we learned today is that they’re all in agreement with each other,” he said, lumping them in with Democratic critics. “They kind of outed themselves. They sort of showed their membership cards of whatever club this is to the public. So keep a list. If you want to know who’s actually aligned, despite the illusion of partisanship, we found out today,” Carlson said. House Speaker Kevin McCarthy (R-Calif.) had granted Carlson exclusive access to a trove of around 44,000 hours of Capitol security footage from Jan. 6, but told reports on Tuesday evening that he did not watch Carlson’s show on Monday night. McCarthy said that he did not regret giving Carlson access to the footage in wake of the criticism. “I said at the very beginning, transparency. And so what I wanted to produce for everybody is exactly what I said. The people could actually look at it and see what’s gone on that day,” McCarthy said.
GOP Leader McConnell remains in hospital after concussion — Senate Republican leader Mitch McConnell was being treated Thursday for a concussion and is expected to remain in the hospital for “a few days” after he tripped and fell at a hotel dinner the night before, his spokesman said. The Kentucky senator, 81, was at a Wednesday evening dinner for the Senate Leadership Fund, a campaign committee aligned with him, when he tripped and fell. The dinner was at the Waldorf Astoria Washington DC, formerly the Trump International Hotel. Spokesman David Popp said McConnell is being treated for a concussion and “is grateful to the medical professionals for their care and to his colleagues for their warm wishes.” McConnell’s office did not provide additional detail on his condition or how long he may be absent from the Senate. Returning from a trip to Philadelphia Thursday evening, President Joe Biden told reporters at the White House that he’d spoken with McConnell’s family. “I think he’s gonna be all right,” Biden said of his former Senate colleague. Concussions can be serious injuries and take time for recovery. Even a single incident of concussion can limit a person’s abilities as they recover. In 2019, McConnell tripped and fell at his home in Kentucky, suffering a shoulder fracture that required surgery. The Senate had just started a summer recess, and he worked from home for some weeks as he recovered. First elected in 1984, McConnell in January became the longest-serving Senate leader when the new Congress convened, breaking the previous record of 16 years.
Rupert Murdoch: Hannity, Ingraham ‘went too far’ in promoting Trump’s false claims about 2020 election - Rupert Murdoch, owner and co-chairman of Fox Corp, worried to Fox News Media CEO Suzanne Scott that top hosts Sean Hannity and Laura Ingraham “went too far” in endorsing former President Trump’s false claims about the 2020 election, new court filings show. In an email dated Jan. 21, 2021, Murdoch wrote to Scott bemoaning the network was still “getting mud thrown at us” over the Jan. 6 riot at the U.S. Capitol and for suggestions that the rhetoric of top talent at the network could have contributed to the attack. “Maybe Sean and Laura went too far,” Murdoch wrote to Scott, Fox News’ top executive, according to the filing. “All very well for Sean to tell you he was in despair about Trump but what did he tell his viewers?” The court filings were made late Tuesday by Dominion Voting Systems, which is suing Fox for defamation seeking $1.6 billion in damages, arguing the network knowingly aired false claims about its software. Fox has so far unsuccessfully moved to have the case dismissed on First Amendment grounds and has called into question the snippets Dominion has highlighted in court filings and cast doubt on the company’s financial valuation. Fox issued a scathing rebuke of Dominion’s filings on Tuesday evening, accusing the voting systems company of smearing its journalistic integrity and highlighting the fact top host Maria Bartiromo invited Dominion CEO John Polus on her show to discuss the allegations being made against his company. “Thanks to today’s filings, Dominion has been caught red handed using more distortions and misinformation in their PR campaign to smear FOX News and trample on free speech and freedom of the press,” Fox said in a statement. “We already know they will say and do anything to try to win this case, but to twist and even misattribute quotes to the highest levels of our company is truly beyond the pale.” Murdoch’s email to Scott is just the latest in a slew of revelations made public through Dominion’s process of legal discovery, which Fox’s attorneys have argued have made for good headlines as the company builds its legal case but do not yet meet the legal standard for defamation. Murdoch, in a previously filed court document, acknowledged Hannity was “privately disgusted” with Trump’s actions following his loss in the 2020 election, despite showing steadfast support on air. “Thanks Paul,” Murdoch wrote to former House Speaker Paul Ryan, who sits on the board of Fox Corp., according to the previous filing. “Wake-up call for Hannity, who has been privately disgusted by Trump for weeks, but was scared to lose viewers.”
Docs: Trump urged Fox News owner to order attacks on Blankenship - Then-President Donald Trump urged the owner of Fox News, Rupert Murdoch, to use the influence of his network to help sink the Senate candidacy of coal baron Don Blankenship in 2018, according to newly released court documents.Blankenship was surging in the polls in the final days of a bruising West Virginia GOP primary race, prompting concern among Trump and other Republicans that his potential victory could lead to a failed attempt to unseat incumbent Sen. Joe Manchin, a Democrat, in the general election.So, Trump appealed to Murdoch to ramp up the network’s criticism of Blankenship, lawyers for Dominion Voting Systems said in court documents as part of a defamation lawsuit against Fox News. Murdoch then pressured Fox News CEO Suzanne Scott and Fox News President Jay Wallace to attack Blankenship through the network’s celebrity hosts Sean Hannity and Laura Ingraham.“Anything during day helpful but Sean and Laura dumping on him hard might save the day,” Murdoch wrote in an email days before the primary, according to the documents.The court documents don’t contain details about Trump’s request for help from Murdoch. It’s unclear how Trump, who dislikes email, contacted Murdoch, or what precisely was said between them. The filings indicate, however, that Dominion lawyers possess details surrounding the communication, during which Trump “appealed for help defeating Don Blankenship.”A Trump spokesperson did not respond to requests for comment.Fox News is the subject of a $1.6 billion defamation lawsuit filed by Dominion Voting Systems over the network’s false assertions that voting machines were responsible for Trump’s 2020 electoral loss. Dominion asserts that Fox executives and on-air hosts knew they were pushing election misinformation but continued to spread conspiracy theories to prevent losing their audience to right wing competitors such as Newsmax and One America News Network.The communications released in court filings show Murdoch and Fox executives also tried to sway other races. At one point, Murdoch pressured Scott on the “importance of giving exposure to Republicans in close Senate races,” the documents say.
Flynn Sues DOJ, FBI For Malicious Prosecution, Wants $50 Million --Retired Lt. Gen. Michael Flynn, former national security adviser to President Donald Trump, has filed a lawsuit against the Department of Justice (DOJ), FBI, and others, alleging he was maliciously prosecuted. He is demanding at least $50 million in compensation.“Defendant maliciously investigated and prosecuted General Flynn by initiating and continuing a baseless counterintelligence investigation and by filing a criminal information lacking probable cause,” says the suit, filed on March 3 with the U.S. District Court for the Middle District of Florida (pdf). The former head of the Defense Intelligence Agency (DIA) under the Obama administration was investigated by the FBI starting in August 2016 for supposed ties to Russia. In 2017, he was charged with lying to the FBI during an interview earlier that year. The suit alleges that the FBI, and later prosecutors from the office of special counsel Robert Mueller, investigated and prosecuted him for political reasons, considering him a threat. “General Flynn—who already had a reputation as a hands-on disruptor at DIA, who had publicly excoriated the politicization of the intelligence community, and who had made clear his desire to overhaul the national security structure and the ‘interagency process’—was a direct threat, not only to the self-interest of entrenched intelligence bureaucracies and the federal officials involved, but to exposing their prior and ongoing efforts to derail and discredit President Trump,” the suit says. The case against Flynn was riddled with contradictions and inconsistencies. FBI agents had already decided to close his case by early January 2017, but higher-ups intervened to keep it open on the justification that Flynn may have violated an obscure and antiquated law called the Logan Act by discussing with a Russian ambassador the priorities of the incoming administration during the transition period. DOJ officials at the time rejected the legal theory. The 1799 Logan Act, which prohibits certain kinds of unauthorized diplomacy, may in fact be unconstitutional, several lawyers previously told The Epoch Times. It has never been successfully prosecuted, much less aimed at an incoming national security adviser.
New York Republicans go to all-out war against Santos - New York’s House Republicans are racing away from the walking political grenade known as George Santos. Six of Santos’ New York colleagues, particularly the four who flipped tight battleground districts last fall, are working — out in the open and behind the scenes — to contain the blowback from the embattled lawmaker’s deceptions about his past. The first-term foursome started by breaking from the vast majority of their party by calling for Santos to resign, a move that could reduce the GOP’s already tiny majority. And the newly elected New York Republicans are only growing louder: They’re pushing legislation aimed at hitting Santos financially, hoping to prevent the now-notorious fabulist from profiting off book or TV deals on his story. And they’re firing off fighting words on social media and local airwaves. But their public criticisms haven’t insulated them from daily questions about his record, particularly as Democrats look to tie them to him. Their frustration, simmering for two months as negative Santos headlines build up, is close to boiling over. “He is a bludgeoning tool the Democrats are using without regard for truth. They’re lying about us in relationship to him,” Rep. Marc Molinaro (R-N.Y.) said in an interview. “And he’s caused us every day to have to respond to his very existence in the House of Representatives, instead of giving 100 percent of our time to the important issues that Americans and the people who sent us to Washington care about.” “Every time that we’re having a conversation we seem to be talking about George Santos,” echoed Rep. Anthony D’Esposito (R-N.Y.). The anti-Santos Republicans’ stand is a lonely one. Most others in their conference prefer to spurn Santos in more subtle ways that don’t call for forcing him out, which would tee up a special election in a battleground district that could chip at their four-vote majority. But New York’s newest House Republicans assumed war footing for a reason: Mere months after the Empire State gave the GOP its fattest gains of an otherwise lackluster midterms, they say Santos is making their own donors squeamish and their voters suspicious. “At a minimum, donors who gave to him want to spend time on the phone speaking about what’s the latest and how can we hold him accountable. And then others are scared off,” said first-term Rep. Nick LaLota (R-N.Y.). “I guess some of them are embarrassed that they are now associated with this scam,” LaLota added. “And they’re not so eager to pick up the phone when a politician is asking for their support again — because the last time they did it, their name wound up in a paper associated with probably the most terrible person in Long Island politics.” Santos, who’s now formally under investigation by the House Ethics Committee, has faced harsh scrutiny after revelations he lied about core components of his educational and professional background. In a Monday interview, he dismissed the idea that his problems might affect his colleagues.
Santos accused of orchestrating credit card skimming operation -Rep. George Santos (R-N.Y.) has been accused of orchestrating a credit card skimming operation in which he schemed to steal information from ATM and credit cards, according to asworn statement from a former roommate of his obtained by Politico. The declaration from Gustavo Ribeiro Trelha, who said he met Santos when he rented a room in a Florida apartment from the now-congressman, states he was accused of a federal crime of credit card fraud in 2017 and pleaded guilty. Trelha, who is from Brazil, served seven months in prison and was then deported. His attorney, Mark Demetropoulos, sent the letter to the FBI, U.S. attorney’s office for the Eastern District of New York and Secret Service office in New York on Wednesday. Trelha said Santos was known to him as Anthony Devolder, another name that others with ties to Santos have said they knew him by. He added that he learned from Santos how to clone ATM and credit cards after he started renting the room from him. “Santos taught me how to skim card information and how to clone cards. He gave me all the material and taught me how to put skimming devices and cameras on ATM machines,” Trelha said. He said Santos had a warehouse in Orlando, Fla., that housed materials such as printers and blank ATM and credit cards that could be painted and engraved with stolen account and personal information. Trelha said he went to Seattle and began to steal credit card information from ATM terminals, with the deal being that the profits would be split evenly between the two of them. He decried that Santos threatened his friends after he was arrested to not tell authorities that Santos was the one in charge. Trelha claimed Santos also stole the money that he collected for his bail. He said he has other witnesses who can back up his statements, according to Politico’s reporting.The sworn statement is the latest development in potential legal trouble that Santos is facing. He received criticism from members of both parties after reports revealed he made many false statements about his educational, professional and personal background.
Kari Lake wins CPAC vice president poll, topping DeSantis, Haley -Former Arizona GOP gubernatorial candidate Kari Lake won a straw poll for the Republican vice presidential pick during the Conservative Action Political Conference (CPAC) this weekend. Among a field of 28 candidates, Lake won the poll with 20 percent of the vote, beating former United Nations ambassador Nikki Haley and Florida Gov. Ron DeSantis. DeSantis received 14 percent of the vote, and Haley, who announced her bid for the White House last month, won 10 percent. Lake, who was also a featured speaker at CPAC’s Ronald Reagan Dinner over the weekend, has refused to accept her loss in the governor’s race last November and is challenging the election results in court. Her official campaign Twitter account responded to the CPAC straw poll results by suggesting she’d be unable to serve in the role. “We’re flattered, but unfortunately our legal team says the Constitution won’t allow for her to serve as Governor and VP at the same time,” it said. Former Secretary of State Mike Pompeo and entrepreneur Vivek Ramaswamy, who has declared his campaign for the presidency, each received six percent of the vote. All of the other Republicans listed in the field, including Sen. Ted Cruz (Texas) and former Vice President Mike Pence, did not receive more than five percent. Former President Trump easily won the CPAC straw poll for the presidency with 62 percent of the vote, while DeSantis came in second-place with 20 percent of the vote.
Young Republicans Are Begging Party Elders To Stop Saying ‘Woke’ – Rolling Stone — To attend the Conservative Political Action Conference is to find oneself on the front lines of the war against woke. During her speech on Friday, 2024 hopeful Nikki Haley deemed “wokeness” a “virus more dangerous than any pandemic.” Sen. John Kennedy (R-La.) argued Americans ought not to be governed by “deeply weird, nauseously woke people who hate George Washington, Abraham Lincoln, Dr. Seuss, and Mr. Potato Head.” Ron DeSantis, grand poobah of the anti-woke, wasn’t there, but Moms for Liberty, the DeSantis-championing “parents’ rights” group, was, its members milling outside the main hall in navy “STOP WOKE” T-shirts.To the young Republicans in attendance, the vernacular feels a bit cringe. “We don’t really use ‘woke’ as our term,” says Evan Masse, a student at the Community College of Rhode Island. Chris Johnson, the managing director of Young Conservatives for Carbon Dividends, likened its use to how an out-of-touch uncle might search for the words to describe a nephew at the Thanksgiving table. “I think a lot of older folks use it if they don’t really know what they’re referring to,” he says. “It’s a catchall colloquialism.”Several young conservatives I spoke with at CPAC echoed some version of that criticism of party elders. Some worry that going so hard on “woke” — a term now used almost entirely derogatorily by Republican detractors — will turn off upcoming generations of voters already disinclined to support the GOP. Others simply said it had lost its meaning, as many once-favored slang terms do, when the septuagenarians in Congress started punctuating their Fox News hits with it. This next generation of GOP activists nevertheless support the principles behind the “woke” wars — the market basket of education- and gender-related policies being passed in red states across the country. They just really wish the Olds would stop saying “woke.” For nearly 50 years, CPAC has been the Republican Party’s premiere annual gathering, where the party’s leading lights commingled with its staunchest activists — especially its youngest ones — for a chest-beating pep rally. Or, at least, it had been. This year’s conference had been haunted by sexual harassment allegations against Matt Schlapp, the president of CPAC’s sponsoring organization, which scared awayboth financial backers and attendees. Some of those expected leading lights, such as DeSantis and former vice president Mike Pence, accepted invitations to a competing confab in Florida. Fox News, once among the event’s key financial sponsors, appeared to have instituted a blackout on CPAC coverage.The conference remained tonally consistent in spite of these developments: Comic-Con for the Trump-loving Newsmax set. CPAC’s biggest celebrities are those who had led the GOP’s race toward the conspiratorial fringe. It’s the sort of place where a pancake makeup-ed Rep, Matt Gaetz (R-Fla.) is in high demand for selfies — but not as high as Rep. Marjorie Taylor Greene (R-Ga.). Where former Michigan secretary of state candidate Kristina Karamo rubs elbows with former Arizona Senate candidate Kari Lake, neither of whom has conceded their races. Where Steve Bannon periodically led a few dozen in a booming chant of “Take Down the CCP!” “CPAC is fundamentally, at this point, political entertainment to a certain degree,” Johnson says of the scene.
Frost on DeSantis targeting Black, LGBTQ transgender people: ‘it’s fascism’ - Rep. Maxwell Alejandro Frost (D-Fla.) said in an interview Sunday that Florida Gov. Ron DeSantis’s (R) drumbeat of policies targeting Black, transgender and LGBTQ people are “fascism.” During an appearance on “CNN Newsroom,” host Jim Acosta asked Frost, the first Generation Z lawmaker to serve in Congress, about how Democrats should take on DeSantis. “We take that on by number one being bold in our messaging and calling it out for what it is,” Frost told Acosta, saying that DeSantis was not attempting to improve education with his policies, but was “acting on scapegoating vulnerable communities due to his failures.” “This is what we’re up against in Florida right now and it’s hard to keep track of because it seems like there’s a new victim, there’s a new bill every day,” he added. “But we have to call it for what it is he is abusing his power and using the state to target political opponents and political enemies. And there’s a word for that. and it’s fascism, and we have to be honest about it.” According to the Washington Post, Republican lawmakers in Florida have proposed a new batch of legislation that includes proposals to require teachers to use pronouns matching children’s sex as assigned at birth, and establish a universal school voucher program. DeSantis has also signed the Parental Rights Education bill, also referred to as the “Don’t Say Gay” bill into law last year, which prohibits state educators from talking about sexual orientation or gender identity in schools. And the governor sparked criticism earlier this year after he barred the teaching of Advanced Placement African American Studies course in the state school curriculum. Frost’s remarks come as DeSantis’ is widely seen as a leading contender for the GOP’s 2024 predicential nomination, though he had indicated an official announcement will not come until after the state’s legislative session. “It’s just a problem for Florida now, sure. But in a few years, it can be a problem for the nation,” Frost said of DeSantis’ political tactics.
Women who seek abortion in South Carolina could face death penalty — A new bill introduced in the South Carolina Statehouse could put the death penalty on the table for women who get an abortion. House Bill 3549 is an amendment to the South Carolina Prenatal Equal Protection Act of 2023 and would define "person" to include an unborn child at any stage of development. This would ensure that an unborn child who is a "victim of homicide" or "victim of assault" is given the same protections under state laws -- including, up to the death penalty.
Facebook and Google are handing over user data to help police prosecute abortion seekers - As abortion bans across the nation are implemented and enforced, law enforcement is turning to social-media platforms to build cases to prosecute women seeking abortions or abortion-inducing medication — and online platforms like Google and Facebook are helping. Through data collected by online pharmacies, social media posts, and user data requests from law enforcement for message and search logs, cases for prosecution can be built against women for seeking abortion — and it has been happening since before Roe was overturned. This spring, a woman named Jessica Burgess and her daughter will stand trial in Nebraska after being accused of performing an illegal abortion — with a key piece of evidence provided by Meta, the parent company of Facebook. Prosecutors said Burgess helped her daughter find and take pills that would induce an abortion. The teenage Burgess also faces charges of illegally disposing of the fetal remains. TechCrunch reported that internal chat logs were provided to law-enforcement officers by the social-media company, which indicated the pair had discussed their plan to find the medication through the app. Meta said in a statement regarding the Nebraska incident that it responded to "valid legal warrants from local law enforcement" prior to the Supreme Court's decision in Dobbs v. Jackson Women's Health Organization, which overturned nationwide abortion rights and allowed for bans in some states. And though the warrants Meta responded to in this case "did not mention abortion" — since law enforcement had requested the chat logs while investigating the teen's disposal of the remains, which incidentally revealed the discussion of abortion pills — the subsequent charges reveal how data released by social-media companies can be used to prosecute people for abortion, even when they are being investigated for other reasons. An investigation by ProPublica found online pharmacies that sell abortion medication such as mifepristone and misoprostol are sharing sensitive data, including users' web addresses, relative location, and search data, with Google and other third-party sites — which allows the data to be recoverable through law-enforcement requests. ProPublica found similar web trackers that capture user data on the sites of at least nine online pharmacies that offer abortion pills by mail, including Abortion Ease, BestAbortionPill.com, PrivacyPillRX, PillsOnlineRX, Secure Abortion Pills, AbortionRx, Generic Abortion Pills, Abortion Privacy, and Online Abortion Pill Rx. None of the pharmacies immediately responded to Insider's requests for comment. Google search histories have been used to prosecute women for their reproductive health choices since before the overturning of Roe v. Wade last year. In 2018, a Mississippi woman named Latice Fisher was charged with second-degree murder after she delivered a stillborn baby — paramedics discovered the child lifeless, in the woman's toilet, when she called for help. The charges were based in part on her Google search history, which included a query for "buy Misopristol Abortion Pill Online'' 10 days earlier, The Washington Post reported. Officers discovered Fisher's search history after she surrendered her phone. Representatives for Google told Insider the company has a policy on user data requested by the government, which requires law enforcement to "attest that their requests for user data do not pertain to certain abortion-related investigations" as set forth by a California law that prohibits search warrants for electronic communications that are based on abortion investigations. The California-based company applies this standard for all state law enforcement requests.
Powell says holistic capital review is a balancing act for the Fed - The Federal Reserve's ongoing capital review will be a balance act between financial safety and economic support, Chair Jerome Powell told lawmakers Tuesday. Powell told the Senate Banking Committee that if the current "holistic" review of requirements determines that capital levels should be higher, the Fed will be careful not to overdo it. But he added that determining minimum capital requirements is not an exact science. "It's always a balance. We know that higher capital makes banks safer and sounder. We also know that you will, at the margin, provide less credit the more capital you have to have, but I think it's never exactly clear that you're at perfect equilibrium," he said. "It's a fair question, I think, to look at that." Powell's testimony came as part of a two-day stint on Capitol Hill to deliver his semiannual monetary policy report to Congress. The Fed's holistic capital review was a common line of questioning during the hearing. Several Republicans on the committee questioned whether banks really needed to hold more capital, given their ability to weather the financial distress of the COVID-19 pandemic. Ranking member Sen Tim Scott, R-S.C., and the rest of the Republicans on the committee sent a letter to Powell last week questioning the Fed's approach to the review. They used Tuesday's hearing to ask the chair whether the Fed would adhere to principles of tailoring — setting capital requirements for individual banks based on their specific risk exposures — if it adjusts capital rules. "Yes, I can easily commit to that," Powell said. "We're very strongly committed to tailoring, and I can say that anything we do will reflect tailoring, which is a long held principle for us and also now a requirement of law." Fed Vice Chair for Supervision Michael Barr called for the holistic capital review as one of his first acts after being sworn in as the central bank's chief regulator last summer. The effort is set to encompass all of the Fed's various capital standards to see how they work for their individual purposes and in totality.
Democrats push for financed emissions reporting in SEC climate proposal -Democratic lawmakers are pressing the Securities and Exchange Commission not to scale back new climate disclosure regulations that are expected to be made public in the coming weeks. Fifty congressional Democrats wrote to SEC Chair Gary Gensler on Sunday, urging the commission to "issue a strong climate risk disclosure rule as quickly as possible." The SEC released draft climate disclosure rules in March 2022. They would require corporations to report publicly on the greenhouse gas emissions generated by their business activities. Led by Senator Elizabeth Warren, D-Mass., and Representative Dan Goldman, D-N.Y., the lawmakers argued that limiting the proposal in anticipation of possible legal pushback would be "deeply misguided." "It is increasingly clear that climate change and the clean energy transition will have significant impacts on companies' costs and risks across industries," the lawmakers wrote. "The SEC's rule must push companies to take the necessary steps to issue those disclosures and prepare for that eventuality." A spokesperson for the SEC did not immediately respond to a request for comment. The Democratic lawmakers urged the SEC not to revise certain language in the proposal that would require more companies to disclose climate-related financial risks. They also expressed support for provisions in the draft proposal that would require the reporting of Scope 3 greenhouse gas emissions. Scope 3 emissions cover pollutants generated in a company's value chain, including a category related to financing activities.A report last year from the consulting firm Bain found that financed emissions are underreported, and that they account for at least 95% of corporate emissions. The Democratic lawmakers wrote that the possible "curtailing" of Scope 3 emissions disclosures is "deeply concerning."
Treasury Secretary Yellen warns that losses tied to climate change could 'cascade through the financial system' - Treasury Secretary Janet Yellen on Tuesday warned that climate change is already taking a significant economic toll and could cause extensive losses to the U.S. financial system in the coming years. Yellen made the remarks during the first meeting with the Climate-related Financial Risk Advisory Committee (CFRAC), an advisory board that was set up last year by the Financial Stability Oversight Council in an effort to bolster U.S. action to minimize climate risk to the economy. "As climate change intensifies, natural disasters and warming temperatures can lead to declines in asset values that could cascade through the financial system," she said during the meeting. "A delayed and disorderly transition to a net-zero economy can lead to shocks to the financial system as well." Climate-related disasters have caused economic losses through infrastructure damage, disruptions in critical services and losses in property values, according to a federal government report released last year. The U.S. experienced an average of nearly eight $1 billion disasters every year over the past four decades. In the past five years, that number has jumped to nearly 18 events annually. "These impacts are not hypothetical," Yellen said. "They are already playing out." Yellen said states like California, Florida and Louisiana have recently endured especially severe storms and wildfires, and she noted how tornadoes across the South and intensifying storms on the West Coast indicate that climate change is accelerating. She said some insurers are raising rates or even pulling back from high-risk areas in response to rising losses. "This has potentially devastating consequences for homeowners and their property values," Yellen said. "Developments like these can spill over to other parts of our interconnected financial system." The Biden administration has taken executive actions to address climate risk to the economy, including an impending Securities and Exchange Commission measure that will require publicly traded companies to disclose their greenhouse gas emissions. The agency is now considering scaling back its proposed climate-disclosure rule. Yellen has previously promoted the historic climate investments in President Biden's Inflation Reduction Act, specifically touting the legislation's tax credits and other private sector incentives aimed at lowering both energy costs for consumers and greenhouse gas emissions.
SVB Financial/Silicon Valley Bank Shares Collapse 55% Today, 84% from Consensual Hallucination Peak, as it Shores Up Balance Sheet & Liquidity to Face the Future - SVB is massively involved in all segments of the startup scene that is now facing a mass extinction event. By Wolf Richter SVB Financial, which owns Silicon Valley Bank, the 16th largest bank in the US with $210 billion in assets, came out with some fascinating announcements late yesterday and early today about shoring up its balance sheet and liquidity.After having already plunged 65% in a series of breath-taking dives, and dead-cat bounces from their startup-and-crypto consensual-hallucination peak in November 2021, shares of SVB Financial [SIVB] kathoomphed so far today another 55%, to around $119 at the moment, the lowest since 2016, and are now down 84% from the November 2021 high, thereby getting inducted into my pantheon of Imploded Stocks. [Update: SIVB closed at $106, -60%; now trading at $85 afterhours, -69% in total for the day; updated chart in the comments. This is just stunning].The 84% plunge from the high already exceeds SVB’s Dotcom Bust plunge of 77% from September 2000 through October 2002 (my discussion in July of this SVB phenomenon) The Dotcom Bust was a horrible creature for Silicon Valley, and SVB Financial is another indication that this current bust – we still have to come up with an appropriate name – promises to outdo the Dotcom Bust.Silicon Valley Bank is heavily involved with all aspects of the startup scene. And the startup scene – across all sectors, from biotech to crypto, and across all stages, from early-stage outfits to companies that already went public – is getting the rug pulled out from under it by the collapse of consensual hallucination.It had to happen some day anyway. It always does sooner or later. But now the end of easy money, after years of central-bank money printing and interest rate repression, is getting blamed, including by SVB Financial.SVB said in a series of filings with the SEC late yesterday and today that it would raise $2.25 billion in equity capital in a three-pronged approach that is heavily dilutive for existing stockholders:
- A public stock offering of $1.25 billion of common shares;
- A private sale of $500 million of “depositary shares” to General Atlantic, a growth equity firm, which happens to be a “longstanding client of SVB”;
- And the sale of $500 million of mandatory convertible preferred shares
Bank Failure #1 in 2023: Silicon Valley Bank - From the FDIC: FDIC Creates a Deposit Insurance National Bank of Santa Clara to Protect Insured Depositors of Silicon Valley Bank, Santa Clara, California Silicon Valley Bank, Santa Clara, California, was closed today by the California Department of Financial Protection and Innovation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect insured depositors, the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB). At the time of closing, the FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank. ... As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits. At the time of closing, the amount of deposits in excess of the insurance limits was undetermined. The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers. As of the December 2022, Silicon Valley Bank was the 16th largest US bank in terms of assets.
SVB Financial Group shut down by regulators -- In the latest update regarding the rapidly moving SVB Financial Group saga, the Federal Deposit Insurance Corporation (FDIC) said Friday that SVB has been shut down by the California Department of Financial Protection and Innovation. The regulator, which appointed the Federal Deposit Insurance Corporation as receiver, revealed that the FDIC created the Deposit Insurance National Bank of Santa Clara (DINB) to protect insured depositors. "The FDIC as receiver immediately transferred to the DINB all insured deposits of Silicon Valley Bank," the FDIC said in a statement. They added that all insured depositors will have access to their insured deposits no later than Monday, March 13. The FDIC said it will pay uninsured depositors an advance dividend within the next week. For any remaining uninsured funds, depositors will receive a receivership certificate. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to certificate holders. The SVB plunge started Thursday after it revealed it had to sell billions of dollars worth of securities at a loss and was seeking to raise $2.25B in equity to shore up its balance sheet. This caused a wave of concerns, hitting other bank stocks in the process. As of December 31, 2022, SVB had around $209B in total assets and approximately $175.4B in total deposits, although the FDIC said that at the time of closing, the amount of the deposits in excess of the insurance limits was undetermined. "The amount of uninsured deposits will be determined once the FDIC obtains additional information from the bank and customers," they added. They also confirmed that the DINB will maintain SVB's normal business hours, with banking activities resuming by Monday.
Silicon Valley Bank Swiftly Collapses After Tech Startups Flee - Silicon Valley Bank became the biggest US lender to fail in more than a decade after a tumultuous week that saw an unsuccessful attempt to raise capital and a cash exodus from the tech startups that had fueled the lender’s rise. Regulators stepped in and seized it Friday in a stunning downfall for a lender that had quadrupled in size over the past five years and was valued at more than $40 billion as recently as last year. The move by California state watchdogs to take possession of the bank, known as SVB, and appoint the Federal Deposit Insurance Corp. as receiver adds to the turmoil at smaller lenders caused by the US’s rapid interest-rate increases. Just days earlier, Silvergate Capital Corp. announced it was shutting its bank down, spurring a broader selloff in industry stocks. Banks were already suffering from the jump in rates that eroded the value of their portfolios, and meanwhile customers in the technology and crypto startup worlds were yanking cash amid a slump in their businesses. In SVB’s case, the turmoil fed on itself as customers worried about its health rushed to withdraw money. “Bank runs are a lot about psychology. And at this point, it’s very rational to be nervous,” said Saule Omarova, a law professor at Cornell University. In Washington, the situation prompted a series of discussions among top regulators. Treasury Secretary Janet Yellen called a meeting Friday with leaders from the Federal Reserve, the FDIC and the Office of the Comptroller of the Currency to discuss developments around SVB. Yellen said in a statement that the US banking system “remains resilient” and the regulators “have effective tools” to address the fallout. The government is assessing whether it can sell SVB, or parts of it, by Monday, said a person familiar with officials’ conversations, who asked not to be identified speaking about internal deliberations. That’s the day when customers can come to the bank and start taking out the rest of their money. Treasury representatives didn’t immediately respond to an emailed request for comment.
Silicon Valley Bank collapse marks 2nd biggest bank failure in U.S. history - Regulators rushed Friday to seize the assets of one of Silicon Valley's top banks, marking the largest failure of a U.S. financial institution since the height of the financial crisis almost 15 years ago. Silicon Valley Bank, the 16th-largest bank in the U.S., failed after depositors hurried to withdraw money this week amid anxiety over the bank's health. It was the second biggest bank failure in U.S. history after the collapse of Washington Mutual in 2008. The bank served mostly technology workers and venture capital-backed companies, including some of the industry's best-known brands. "This is an extinction-level event for startups," said Garry Tan, CEO of Y Combinator, a startup incubator that launched Airbnb, DoorDash and Dropbox and has referred hundreds of entrepreneurs to the bank. "I literally have been hearing from hundreds of our founders asking for help on how they can get through this. They are asking, 'Do I have to furlough my workers?'" Nearly half of the U.S. technology and health-care companies that went public last year after getting early funding from venture capital firms were Silicon Valley Bank (SVB) customers, according to the bank's website. The bank also boasted of its connections to leading tech companies such as Shopify, ZipRecruiter and one of the top venture capital firms, Andreesson Horowitz. Tan estimated that nearly one-third of Y Combinator's startups will not be able to make payroll at some point in the next month if they cannot access their money.
Silicon Valley Bank is largest failure since 2008 crisis, billions stranded - Startup-focused lender SVB Financial Group became the largest bank failure since the 2008 financial crisis on Friday, in a sudden collapse that roiled global markets and left billions of dollars belonging to companies and investors stranded. California banking regulators closed the bank, which did business as Silicon Valley Bank, on Friday and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of its assets. The main office and all branches of Silicon Valley Bank will reopen on March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, the FDIC said. But 89% of the bank's $175 billion in deposits were uninsured as the end of 2022, according to the FDIC, and their fate remains to be determined. The FDIC is racing to find another bank over the weekend that is willing to merge with Silicon Valley Bank, according to people familiar with the matter who requested anonymity because the details are confidential. While the FDIC hopes to put together such a merger by Monday to safeguard unsecured deposits, no deal is certain, the sources added. An FDIC spokesperson did not immediately respond to a request for comment. Separately, SVB Financial, the parent company of Silicon Valley Bank, is working with investment bank Centerview Partners and law firm Sullivan & Cromwell to find buyers for its other assets, which include investment bank SVB Securities, wealth manager Boston Private and equity research firm MoffettNathanson, the sources said. These assets could attract competitors and private equity firms, the sources added. It's unclear if any buyer will step up to buy these assets without SVB Financial having filed for bankruptcy first. Credit ratings agency S&P Global (NYSE:SPGI) Ratings said on Friday it expected SVB Financial to enter bankruptcy because of its liabilities. SVB did not respond to calls for comment. Companies such as video game maker Roblox Corp and streaming device maker Roku said they had hundreds of millions of dollars in deposits at the bank. Roku said its deposits with SVB were largely uninsured, sending its shares down 10% in extended trading. Technology workers whose paychecks relied on the bank were also worried about getting their wages on Friday. An SVB branch in San Francisco showed a note taped to the door telling clients to call a toll-free telephone number. The collapse sent shockwaves through the startup community, which had come to view the lender as a source of reliable capital. The bank's customers were met with locked doors on Friday. A client dashboard was down, a UK-based client of the bank told Reuters. Dean Nelson, CEO of Cato Digital, was in a line outside of SVB Santa Clara headquarters, hoping to get answers. Nelson said he was worried about the company's ability to pay employees and cover expenses. "Access to the cash is the biggest problem for the majority of the companies here. If you’re a startup, cash is king. The cash and the workflow, to be able to have the runway is critical."
Five things to know about the Silicon Valley Bank collapse - Regulators shut down Silicon Valley Bank on Friday, marking the biggest bank failure since the 2008 recession and sending shockwaves across the tech world. The Federal Insurance Corporation (FDIC) created a National Bank of Santa Clara to hold deposits and other assets of the failed Silicon Valley Bank, but the abrupt closing is impacting tech firms which are facing immediate effects like ensuring employees get paid. More than 93 percent of the $161 billion deposited at Silicon Valley Bank is not insured by the FDIC, according to a Bloomberg News analysis. The closure will have further reaching impacts for the tech world, and is spurring additional concerns for banks. Silicon Valley Bank, established four decades ago, catered to the start-up and venture capital-funded tech world. Its clients included brands such as Shopify, ZipRecruiter and venture capital firm Andreessen Horowitz, according to the bank’s website. Wedbush analyst Dan Ives called it a “nightmare situation.” “This will have a massive ripple impact across the tech ecosystem and Silicon Valley private company artery. SVB is a foundational piece of the tech startup community and will have a constrained impact on funding for tech startups going forward,” Ives said in an email. Even businesses that aren’t clients are getting impacted by the closure, especially with the most immediate impact on delaying payrolls. Parker Conrad, CEO of Rippling, a payroll processor that used Silicon Valley Bank, said there would be payment delays of pay runs initiated earlier this week. The company is focused on “getting these employees paid as quickly as possible,” he said in a Twitter thread. Going forward, Rippling will use JPMorgan Chase & Co. Kevin Yun, co-founder of GrowSurf, told Semafor that he thought he had “nothing to do with SVB,” since his customer-referral software company used another bank, Mercury. But by using Rippling, his company is getting roped into the larger impact of the shutdown, too. Silicon Valley Bank was uniquely dependent on the growth of startups and other tech companies.Silicon Valley Bank was hit hard by the series of the Federal Reserve’s rising interest rates. It’s the latest way rising interest rates have hit the tech sector. Tech companies and the ecosystem they are created in are highly sensitive to increases in interest rates because many companies, particularly startups, operate on high levels of debt.Venture capital and other riskier forms investment also become less profitable as businesses face higher borrowing costs, and the steep decline in crypto values also sapped billions from many tech businesses.
After big bank failure, renewed questions about Home Loan Bank System -- Silicon Valley Bank's failure is shining a spotlight on the Federal Home Loan Bank of San Francisco, which lent billions to the California bank last year to help shore up its liquidity and now stands to get repaid ahead of depositors and the Federal Deposit Insurance Corp. The $209 billion-asset Silicon Valley Bank was taken over Friday by the California Department of Financial Protection and Innovation with the FDIC appointed as the bank's receiver. Silicon Valley Bank ran aground in a classic liquidity squeeze. It invested in long-term bonds with short-term deposits even as the Federal Reserve was quickly raising rates and causing the bonds' value to fall. Access to the Federal Home Loan Bank System may have influenced the borrowing strategy and risk appetite of SVB Financial, the bank's parent based in Santa Clara, Calif., experts said. The Home Loan Bank System has a "super lien" priority ahead of other creditors and the FDIC. Silicon Valley Bank was the largest borrower of the San Francisco Home Loan Bank and a major shareholder as well. The bank borrowed $13.5 billion in the third quarter, making up 20% of the San Francisco Home Loan Bank's total borrowings at the time. "The Home Loan Bank of San Francisco will get paid first, and that makes the FDIC's cost of resolution greater," said Karen Petrou, managing partner at Federal Financial Analytics. "The cost of resolution is $13 billion dollars more to the FDIC — and therefore to other banks and potentially the taxpayers — than it would otherwise be." Mary Long, a spokeswoman for the San Francisco Home Loan Bank, said the failure of Silicon Valley Bank, its largest borrower, did not threaten the safety and soundness of the regional bank. The "FHLB San Francisco's financial strength and stability is not in question," Long said. The San Francisco bank's president and CEO is Teresa Bazemore, a veteran banker with more than 30 years' experience. The Home Loan banks conduct continuous assessments of each member's creditworthiness and financial condition based on information reported to the primary regulator, Long said. The banks generally determine the maximum amount of advances and terms based on eligible collateral pledged by member banks.
These companies held money at Silicon Valley Bank and aren’t sure if they’ll recover the funds --Roku held approximately $487 million of its $1.9 billion in cash at Silicon Valley Bank, whichcollapsed Friday and was taken over by the Federal Deposit Insurance Corporation, the streaming technology company disclosed in an SEC filing.That’s approximately 26% of the company’s cash and cash equivalents, Roku (ROKU) said, adding that most of its deposits with the bank are uninsured.“The company’s deposits with SVB are largely uninsured,” Roku said. “At this time, the company does not know to what extent the company will be able to recover its cash on deposit at SVB.”However, Roku said it has enough existing cash and cash flow from operations to “meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond.” SVB collapsed Friday morning after a stunning 48 hours in which a bank run and a capital crisis led to the second-largest failure of a financial institution in US history. California regulators closed down the tech lender and put it under the control of the FDIC.The FDIC is acting as a receiver, which typically means it will liquidate the bank’s assets to pay back its customers, including depositors and creditors.But the FDIC insured limit is $250,000 – many depositors had cash amounts in the millions stored at SVB. Companies may have gotten money out during the bank run. Roblox also said in a filing that 5% of its $3 billion in cash was held at SVB. The video game company said the collapse will not affect its day-to-day operations.Toronto-based AcuityAds Holding had US $55 million in SVB, and just US $4.8 million elsewhere. That means more than 90% of the company’s deposits were held in SVB.In a statement, the company said it requested a trade halt and its remaining cash “will be used to support continuing operations.”Crytpo lender BlockFi, which filed for bankruptcy in November, disclosed it held $227 million with SVB in a bankruptcy filing Friday. BlockFi said in November it had halted withdrawals after facing “significant exposure” to Sam Bankman-Fried’s FTX exchange, as well as its sister hedge fund Alameda.BlockFi’s money in SVB is not FDIC-insured because it was in a money market mutual fund, the company learned from its bankruptcy trustee early this week.And aerospace manufacturer Rocket Lab held almost 8%, or approximately $38 million, of its total cash at the collapsed bank, it said in a Friday filing.
Startups are worried about paying employees after SVB collapse - Founders are starting to worry about whether startups will be able to keep paying employees following the failure of Silicon Valley Bank.One payroll service provider Rippling notified customers on Friday that some payroll processing had stalled because SVB helped process its payments. The company switched to JPMorgan Chase, but not soon enough: Paychecks were already "in flight" with SVB and have yet to be paid out — and the firm is still trying to understand what the bank's failure on Friday will mean for them, Rippling Chief Executive Officer Parker Conrad said in a Twitter post.Startup founder Brad Hargreaves said some firms may not be able to make payroll next week. And because boards are incredibly sensitive to employing workers they can't pay, he said, "Expect mass layoffs later today, Monday at latest."
Blindsided by SVB, Credit Traders Are Rushing Toward Safety-- The rapid failure of Silicon Valley Bank is threatening to upend a rebound in credit markets that had been luring investors back to even some of the riskiest corporate borrowers.With phones ringing nonstop on credit trading desks Friday as traders and money managers sought to understand the potential fallout from the biggest US bank collapse in more than a decade, investors across the globe rushed to derivatives markets that offered a hedge against losses, trading data show.One credit-default swaps index linked to the debt of European financial institutions recorded trading volumes that were three times the levels of a typical Friday, data compiled by Bloomberg show.The extra premium investors demand to own the bonds of US junk-rated companies instead of investment-grade debt saw the biggest spike since last June, according to Bloomberg index data. Meanwhile, in the resurgent US leveraged loan market, prices dropped by the most since October, a Morningstar LSTA index shows.Whether the rush to safety continues on Monday may depend on US regulators finding a buyer, or buyers, for the now-seized SVB. But one thing’s for sure: the situation has laid bare the hidden risks lurking in the financial system after the Federal Reserve’s rapid rate hikes.As Schroders’ David Knutson told Bloomberg’s Caleb Mutua in an interview on Friday, it’s “just the first inning.”“We’ve had a regime shift in costs and now these business plans are failing and their intermediaries that are levered are struggling,” he said.
SVB Financial had Investment-Grade Credit Ratings (Moody’s, S&P) up to Collapse. Got Slashed in One Fell Swoop to Default by Wolf Richter - Let me just divert your attention for a moment from the collapse of SVB Financial and what it might and might not mean for the financial system or the startup bubble or whatever, to another troubling aspect of SVB Financial that shows that no one has learned anything since the Financial Crisis, least of all the credit rating agencies.So you know what is coming: The solid investment-grade rating on a company – SVB Financial – that then collapsed with its investment-grade rating, taking investors down with it.On Wednesday March 8, Moody’s still had an A3 rating on SVB Financial, owner of the now defunct Silicon Valley Bank, as it was already collapsing for all to see. Three notches into investment grade – a very respectable rating!In the evening of that day, after SVB disclosed a $1.8 billion loss on the sale of bonds, a planned capital raise, and a slew of liquidity measures, Moody’s downgraded it by just one itty-bitty notch, to Baa1, still three notches into investment grade.Then on March 10, after Silicon Valley Bank was shut down and put into receivership, Moody’s downgraded SVB by 13 notches, in one fell-swoop, all the way across junk territory, to its lowest rating, to C, which is Moody’s rating for default. And it said that it will withdraw the rating.That’s how worthless these credit ratings are if you rely on them for your bond holdings. But they’re good for your amusement, apparently. Here is my cheat sheet for corporate bond credit ratings by rating agency.Similar with S&P Global Ratings: On March 9, a day behind Moody’s, it downgraded SVB Financial by one notch to BBB-, which is still investment grade.Then on March 10, after SVB Financial collapsed and was taken over by the FDIC, S&P slashed its rating by 10 notches all the way through junk territory to D, for default, its lowest rating.Holders of its bonds and preferred stock (like bonds, a liability on the bank’s balance sheet) got the rug pulled out from under them.
Who saw it coming? Short sellers were out front of bank upheaval | American Banker While this week's bank-stock drama blindsided most of the market, at least one corner of Wall Street spied trouble ahead. Short sellers pushed bearish interest in the $2.2 billion SPDR S&P Regional Banking ETF (ticker KRE) gradually higher for weeks before it peaked at about 78% of shares outstanding on March 3, according to data from analytics firm S3 Partners. That was the highest level in at least a year. Bets against regional banks have been winners as concerns about balance sheets started rippling through the financial system. The fund, the largest ETF tracking regional banks, has dropped almost 15% in the past week — Thursday's slide was its worst since June 2020 — after Silicon Valley-based SVB Financial Group was forced to unload bonds to raise cash. But while those bets show at least some smart-money investors were out front of the selloff, it's also clear much of Wall Street was taken by surprise by the risk. Shares of regional banks were up more than 8% on the year as recently as a week ago even as evidence built that surging money rates were pressuring bank deposits and the bonds that back them. Data compiled by Bloomberg show aggregate share-price forecasts for all manner of financial institutions envision upside of more than 20%, and 2023 earnings estimates for the group are among the strongest in the S&P 500. Mutual fund managers have been flocking to the group. "I don't think investors had given much thought to the degree that bank balance sheets can be a mess as the result of the moves in rates," said Steve Sosnick, chief strategist at Interactive Brokers. "We all know that bank balance sheets are chock full of illiquid assets. That's their business model. It was stunning to see how much of a haircut they had to take on their liquid assets." S3 short interest data showed bets against KRE rising until last week. Bad news from SVB Financial and another small American bank, Silvergate Capital, sparked the rout. First, Silvergate announced plans to wind down operations and liquidate after it was caught in the crypto industry meltdown. Then SVB said it needed to shore-up its liquidity, catching the market off-guard and causing Thursday's panic.
Crypto Shaken as SVB Risk Depegs Second-Largest Stablecoin -- The fallout from the failure of Silicon Valley Bank reached further into crypto, unhinging a key cog in the market that’s meant to be among the safest digital assets in the space.The second-largest stablecoin, USD Coin traded as low as 81.5 cents as investors digested the exposure of its issuer Circle Internet Financial Ltd. to Silicon Valley Bank, which had just collapsed in one of the largest failures in US banking history. Late Friday, after hours of silence, Circle disclosed that $3.3 billion of its roughly $40 billion stockpile of reserves was held with the failed bank.On Saturday afternoon, Chief Executive Officer Jeremy Allaire provided additional detail on Circle’s exposure to the bank, saying in a statement on the company’s blog and in tweets that USDC was “100% collateralized with a combination of cash and US Treasuries” and would remain “redeemable 1 for 1” with the US dollar. USDC’s price rallied on the statement, trading around 97 cents as of 3:45 pm in New York.“Specifically, USDC is currently collateralized 77% ($32.4B) with US Treasury Bills (with a three month or less maturation period), and 23% ($9.7B) with cash held at a variety of institutions, of which SVB is only one,” according to the blog post. Circle’s Treasuries are held in custody at BNY Mellon, and managed by BlackRock.A majority of its cash reserves are held at BNY Mellon; Circle said it deposited $5.4 billion there in the last week. The stablecoin firm had previously disclosed that its cash reserves were held at six banks, including BNY Mellon and Silicon Valley Bank, but before Friday had not provided specific dollar amounts for the individual allocations.USD Coin, or USDC, is an asset-backed stablecoin and a widely used plank of crypto markets. The token is intended to hold a constant $1 value, fully backed by reserves of cash and short-dated Treasuries.USDC had a circulating supply of 39.7 billion tokens as of Saturday afternoon in New York, CoinGecko data shows. Billions of dollars worth of the token had been redeemed by traders since Friday, some of whom swapped their holdings into Tether’s USDT stablecoin, data from Nansen and Curve Financial show.
Silvergate has collapsed - Silvergate Bank, which had been a cornerstone in the crypto world, announced it’s closing and returning deposits.In a press release,the bank’s holding company, Silvergate Capital Corporation, said it made the decision to shut down“in light of recent industry and regulatory developments.” It’s been clear for a while thatthe company was struggling along with some of its most high-profile clients like FTX and Genesis.InJanuary, its earnings report revealed that it lost a billion dollars in one quarter after its customers withdrew $8.1 billion. Then, on March 1st, it filed a document saying its financials were even worse than the quarterly report had shown. There are several concerns about whatthe crypto landscape will look like without Silvergate, especially when it comes to where companies will turn to get cash.My colleague Elizabeth LopaǑo has done an excellent job summarizing a lot of them in this explainer. One of the major concerns is that crypto companies may turn to less regulated institutions for their banking needs, potentially making the space even riskier for everyone involved.In other words, if there isn’t a bank playing by the rules willing to do business with them,they may have to find a bank that doesn’t. As for the next steps for the bank, it’s liquidating “in an orderly manner and in accordance with applicable regulatory processes” and is “considering how bestto resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets.” It also shut down its Silvergate Exchange Network, which let crypto exchanges like Coinbase,Gemini, and Kraken move money between themselves and other institutions earlier this month. As all of this has been going down, companies like Coinbase,Crypto.com, and Paxos have started moving away from the bank.Even the Tether stablecoin took the opportunity to distance itself from the institution.Its list of allies was thin, and the government was scrutinizing it for its role in the FTX meltdown. Silvergate’s collapse will almost surely draw scrutiny from lawmakers, especially those who are concerned aboutthe crypto contagion reaching the traditional financial sector. “Today we are seeing what can happen when a bank is overreliant on a risky, volatile sector like cryptocurrencies,” said Senator Sherrod Brown (D-OH), who is the chair of the Senate Banking,Housing, and Urban ALJairs CommiǑee. “I’ve been concerned that when banks get involved with crypto, it spreads risk across the financial system and it will be taxpayers and consumers who pay the price.”
Silvergate stock falls Thursday after bank announces voluntary 'wind down' - Silvergate Capital (SI) stock fell 41% at the open of Thursday's trading day after the bank announced it would wind down operations and liquidate its bank.Shares of its crypto-friendly peer, Signature Bank (SBNY), were also volatile Thursday morning. They were down 12.18% as of Thursday's close. Silvergate announced its voluntary liquidation and wind down of its business late Wednesday afternoon.The total market capitalization for all crypto assets as measured byCoinmarketcap fell below $1 trillion early Thursday morning. It is currently valued at $994 billion, down more than 6% over the past 24 hours as of 5 p.m. New York time.Bitcoin (BTC-USD) is changing hands at $20,300, down 8% to a seven week low. Silvergate's shutdown raises new doubts about the relationship between traditional banks and the cryptocurrency world, said one observer."One of the crypto industry's favorite narratives has always been that it would overwhelm traditional banks by providing superior services," said John Paul Koning, author of the financial blog Moneyness. "Well, crypto has finally overwhelmed its first bank, not because crypto was superior," he added. Representations of virtual currency bitcoin on top of a U.S. dollar banknote are pictured through broken glass in this illustration taken June 25, 2021. REUTERS/Dado Ruvic/IllustrationBut one analyst, Conor Ryder with Kaiko, said Thursday that there is still "glaring" evidence of the need for a crypto-friendly bank. "The next best contender will likely be a smaller bank raising their hand to take on the risk of crypto in search of a wave of new deposits," Kaiko's Ryder added in a research note.Silvergate's decision to liquidate came one week after it said Silvergate faced business and regulatory challenges causing the company to weigh its "ability to continue as a going concern for the twelve months."That notice spooked crypto-related firms using the bank such as Coinbase, Paxos, Galaxy Digital and others that chose to distance themselves from Silvergate last Thursday, hastening further withdrawals."The Bank's wind down and liquidation plan includes full repayment of all deposits. The Company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets," Silvergate said.Silvergate Bank, a state-chartered bank, is jointly regulated by the Federal Reserve and the state of California. Its holding company, Silvergate Capital, is also regulated by the Federal Reserve.’
Silvergate is in talks with FDIC officials on ways to salvage bank - --US regulators have been sent to the headquarters of Silvergate Capital Corp., as the troubled crypto-friendly bank looks for a way to stay in business. Federal Deposit Insurance Corp. officials have been discussing with management ways to avoid a shutdown, according to people familiar with the matter. One possible option involves lining up crypto-industry investors to help Silvergate shore up its liquidity, said one of the people. FDIC examiners arrived at the firm's La Jolla, California, offices last week, the people said. The lender hasn't made a decision on how to deal with its deepening financial turmoil, said the people, who asked not to be named discussing internal deliberations. FDIC examiners were authorized to go to the bank's offices by the Federal Reserve, which is the lender's main federal overseer, said one of the people. A representative for Silvergate didn't respond to phone and e-mailed messages seeking comment. The FDIC said it doesn't comment on "open and operating institutions." The Fed declined to comment. The FDIC's involvement is the latest sign of the urgency of Silvergate's woes. Last week, the firm said mounting losses may force it to evaluate its viability. Because deposits from the lender's clients are insured by the government, the regulator could play a major role in any potential solution. The involvement of the Fed and FDIC doesn't mean that the bank won't ultimately be able to navigate its troubles without regulators, another person said. As of Dec. 31, Silvergate's deposits totaled $6.3 billion, according to filings by the firm. That's less than half of the $13.2 billion it reported at the end of September. The FDIC examiners are reviewing the firm's books and records, according to one of the people. Silvergate was hit hard by crypto exchange FTX's implosion, revealing in January that a surge in withdrawals by clients forced it to sell billions of dollars worth of assets and take steps to stabilize its balance sheet. The bank reported a $1 billion loss last quarter and last week announced that it was discontinuing its flagship crypto payments network after clients distanced themselves from the bank amid increasing uncertainty. Meanwhile, US prosecutors in the Justice Department's fraud unit have been looking into Silvergate's dealings with FTX and trading firm Alameda Research. The bank hasn't been accused of any wrongdoing, and the investigation could end without charges being filed. Although no decision about Silvergate's fate has been made, when a bank is on the financial brink, regulators can opt to put it into receivership — effectively taking over the lender. From there, the FDIC can come in and find ways to remedy the situation. In that scenario, the agency tends to favor merging the troubled institution into a healthy lender, but in the absence of a buyer, the agency could instead choose to pay off depositors, who are insured for as much as $250,000 per depositor, per insured bank, for each account ownership category.
Four questions, many answers: What banks need to know about Silvergate | American Banker - Silvergate Bank's quick demise through a self-liquidation is prompting a closer look at the many red flags that ensnared the California bank even before the collapse of cryptocurrency exchange FTX late last year forced a run on deposits. The state-chartered Silvergate's voluntary liquidation, announced Wednesday, will allow the La Jolla, Calif.,-based bank to wind down its operations, sell remaining assets and pay off its depositors. The process is being monitored by California's Department of Financial Protection and Innovation. Among the many lessons to be learned from Silvergate's collapse is that a liquidity crunch can quickly engulf a bank, particularly if management makes the wrong bet on interest rates, experts said. Silvergate's monoline business model was concentrated in the crypto industry, where the risks and correlated aftershocks were not fully understood. "They didn't think deposits would dissipate so quickly in an environment where the securities portfolio was deeply underwater," said Todd H. Baker, senior fellow at the Richman Center for Business, Law and Public Policy at Columbia Business School and Columbia Law School. Silvergate's management "underestimated how much they were exposed in multiple ways to interest rate rises, and they probably underestimated how aggressive the regulators would be trying to essentially get a handle on their overall situation," Baker added. Silvergate had an unusual business model, holding billions in zero-interest deposits from crypto exchanges. Both FTX and Alameda Research had accounts at Silvergate. It also operated the Silvergate Exchange Network cryptocurrency trading platform that served as a payments network for crypto companies to swap fiat currencies with each other. When the bank shut its network last week, crypto depositors fled en masse. The deposit and industry concentration, interest rate squeeze and lack of any other meaningful business were self-inflicted wounds. "Diversification is important for risk management," Baker said. "And liquidity risk is real."
- What happened to Silvergate?
- Will Silvergate's demise lead to new or different regulations?
- Did bank supervisors take their eyes off the ball?
- Does this change the politics of crypto?
After Silvergate and Silicon Valley Bank Collapse, Bitcoin and Ethereum Crash - The repercussions of the announced "wind down" of Silvergate Bank were still unfolding when Silicon Valley Bank failed. Market leaders Bitcoin and Ethereum saw heavy losses, but they weren’t the only losers: virtually every leading cryptocurrency is down by double-digit percentages coming into the weekend. The markets were first roiled by the demise of crypto bank Silvergate. The writing was on the wall last week when the bank delayed filing its annual 10-k report with the United States Securities and Exchange Commission, leading to a sustained pullback in prices throughout the previous week. The speculation continued on Tuesday, when the White House’s press secretary said Washington was monitoring the situation. The following day, Silvergate’s parent company announced the bank was shutting operations. The news led to a market-wide selloff which sent the combined market capitalization of all cryptocurrencies back below a trillion dollars.By that point, concerns about Silicon Valley Bank were already clogging the rumor mill.According to CoinGecko price data, Bitcoin (BTC) is down 10.5% and is sitting right at the $20,000 support level at the start of the weekend. It’s at $20,055 at the time of writing. Ethereum (ETH), the world’s No. 2 cryptocurrency by market cap, had a similar trajectory this week. It's down 9.5% over the last seven days and is starting the weekend around $1,425. Similar losses of around 15% were posted by Polygon (MATIC), which is now worth $1.04, Polkadot (DOT) is worth $5.52, Shiba Inu (SHIB) trades at $0.00001024, Avalanche (AVAX) changes hands at $14.76, Uniswap (UNI) is worth $5.63, and Chainlink (LINK) trades at $6.20. The steepest losses this week (around 20% or more) were posted by Filecoin (FIL), which is currently worth $5.30, OKB trades at $39.74, Solana (SOL) changes hands at $17.74, and Dogecoin (DOGE) trades at $0.065269.
'I can't get my money out': Billionaire investor Mark Mobius says China is restricting flows of capital out of the country - Mark Mobius, a pioneer in emerging markets investing, said China is restricting investment outflows from the country, a move that would be taking place as the world's second-largest economy is trying to shake off pressure from COVID-19 lockdowns. "I'm personally affected because I have an account with HSBC in Shanghai. I can't get my money out. The government is restricting the flow of money out of the country," Mobius said on Thursday on the Fox Business show "Mornings with Maria". "So I would be very, very careful investing in China," the founder of Mobius Capital Partners said. Mobius, who has spent decades traveling the world searching for investment opportunities, said he hasn't been able to get an explanation about why he's running into the restrictions in China. "It's just amazing. They're putting all kinds of barriers," he said. "They don't say, 'No, you can't get your money out,' but they say, 'Give us all the records from 20 years of how you've made this money,' and so forth. It's crazy." Hong Kong, on the other hand, "seems to be a little more open," he said. The previous executive chairman of Templeton Emerging Markets Group said he's been able to get his money "in and out" of the financial center. Mobius's warning came days before China's President Xi Jinping was expected to cement his third term at a key government meeting starting this weekend. China late last year abruptly began lifting long-standing COVID lockdown measures and economists worldwide are expecting a recovery process to ignite a resurgence in activity in services and manufacturing. Mobius said the reopening play is resulting in commodity prices starting to move higher. But the current government is operating "in a completely different direction" than China's former market-oriented leader Deng Xiaoping, Mobius said. India is a place that investors should consider, he said.
FTX: the legend of Sam Bankman-Fried | FT Film | Financial Times (watch for free) FTX, Sam Bankman-Fried's cryptocurrency exchange, exploded onto the scene in just a few years. Endorsed by celebrities and accepted by the establishment, it attracted big-name investors and was valued at $32bn before it collapsed in a matter of days. Regulators fell for it, venture capitalists fell for it, celebrities fell for it - everyone fell for the legend of Sam
Bankman-Fried can have flip phone, limited internet while on bail, US proposes - - Sam Bankman-Fried should be allowed while on bail to have a flip phone with no internet capability and a basic laptop with limited functions, but be forbidden from using other electronic communication devices, the U.S. Department of Justice said. The proposal to limit the indicted FTX cryptocurrency exchange founder's communications was filed late on Friday in Manhattan federal court, on behalf of the government and Bankman-Fried's defense team. It requires approval by U.S. District Judge Lewis Kaplan, who oversees the case. Kaplan had signaled at a Feb. 16 hearing that he might jail the 30-year-old Bankman-Fried for testing the limits of his $250 million bail package by communicating in ways that could not be monitored. The judge said he did not want to set Bankman-Fried "loose in this garden of electronic devices," following accusations that Bankman-Fried tried to contact possible government witnesses and used a virtual private network to watch football. Bankman-Fried pleaded not guilty after prosecutors said he stole billions of dollars of FTX customer funds to plug losses at his Alameda Research hedge fund. He faces 12 criminal charges under an indictment made public on Feb. 23. The proposed flip phone or other non-smartphone for Bankman-Fried would be limited to voice calls and SMS text messages. Laptop internet use would be restricted to specified virtual private networks, 23 websites for personal use covering news, including Reuters, sports and food delivery, and websites to help Bankman-Fried prepare for his scheduled Oct. 2 trial.
Judge still thinks proposed Bankman-Fried bail conditions too lenient (Reuters) - A U.S. judge on Friday said he remained unsatisfied with a proposal to impose tight restrictions on how the indicted FTX cryptocurrency exchange founder Sam Bankman-Fried communicates with the outside world while free on bail.Bankman-Fried is fighting to stay out of jail pending his scheduled Oct. 2 fraud trial, with U.S. District Judge Lewis Kaplan expressing concern the former billionaire was testing the limits of his $250 million bail package.Prosecutors have charged Bankman-Fried, 31, with stealing billions of dollars in FTX customer funds to plug losses at his hedge fund Alameda Research, and making tens of millions of dollars in illegal political donations to buy influence in Washington, D.C. Bankman-Fried's behavior while on bail became an issue after prosecutors said he tried to contact FTX Chief Executive John Ray and an in-house lawyer, in a possible attempt to tamper with witnesses. Defense lawyers said Bankman-Fried was trying to help, not interfere. Last Friday, prosecutors and defense lawyers proposed letting Bankman-Fried have a flip phone with no internet capability and a basic laptop with limited functions, but be forbidden from using other electronic communication devices. But at Friday's hearing, Kaplan said Bankman-Fried was "inventive," and could find a way to circumvent the restrictions and secretly communicate with others electronically.
SEC’s Gensler rejects crypto’s threat to move overseas - Wall Street’s top cop on Tuesday slammed crypto businesses for refusing to get in line even after a crackdown by regulators and said he sees no risk in them pulling up stakes to head overseas. “We lose more if investors get harmed here,” SEC Chair Gary Gensler said in an interview at the agency’s headquarters in Washington. “It’s a basic bargain in finance: If you want to raise money from the public, disclose certain facts and figures.” Gensler’s agency has pursued an aggressive enforcement campaign against the $1 trillion crypto market since FTX founder Sam Bankman-Fried’s indictment on conspiracy, fraud and campaign finance charges late last year. The SEC has announced lawsuits and forced settlements with banner firms like Genesis Global Capital, Gemini Trust and Kraken for offering unregistered securities products to investors. Now, as Europe moves ahead with rules for digital assets and U.S. lawmakers remain locked in a stalemate over the need for new regulations, crypto giants are threatening to move their businesses across the Atlantic. Gensler brushed off concerns about the plight of the U.S. industry as he faces a barrage of criticism from digital asset executives and their allies in Congress over how he’s regulating the space. House Republicans are ramping up oversight of his crypto enforcement actions and plan to scrutinize his every move, but he’s also under pressure from progressives like Sen. Elizabeth Warren to continue clamping down. Yet Gensler said the flurry of litigation and enforcement actions hasn’t done much to convince firms to follow the law. He said crypto businesses have eschewed what typically happens when agencies come down on bad behavior in financial markets. Rather than coming into compliance with U.S. securities, “this is a field that seems to belie that in some circumstances,” he said. Gensler, a Democrat who led the Commodity Futures Trading Commission during the Obama administration, has long claimed that securities laws already apply to digital asset businesses and that the agency does not need new broad authority from Congress. Top firms like Coinbase and Ripple have resisted those claims and have lobbied lawmakers and regulators to create new rules for their industry — an effort set to soon pay off in Europe with the Markets in Crypto-Assets law, or MiCA. Gensler is skeptical of the European law’s effectiveness. “Do you know that MiCA doesn’t even cover Bitcoin?” he said, before adding that while the SEC often consults and talks with its international counterparties, he has “to focus on how to best help the American public.” U.S. lawmakers, meanwhile, are still debating how to regulate the market’s exchanges and brokerages. Crypto lobbyists have framed Gensler’s push to force their industry to comply with 90-year-old securities laws as a war against financial innovation. Whatever changes brought by crypto markets will pale compared to what could come as brokerages and financial data aggregators move to incorporate artificial intelligence into their offerings, Gensler said.
Barr says Fed has the tools to deal with crypto risks - The Federal Reserve's top regulator says the central bank doesn't need new rules to address the cryptocurrency risks in the banking system. Fed Vice Chair for Supervision Michael Barr delivered his first dedicated remarks on crypto regulation Thursday morning at the Peterson Institute for International Economics, a Washington, D.C.-based think tank.Barr said he would welcome a codified framework from Congress on crypto regulation, but even without one, the Fed and other bank regulators are already well equipped to handle the risks digital assets pose to the banking system, particularly those around liquidity and concentration risks. "In the absence of that comprehensive framework, it's important for regulators to use our existing authorities, both banking regulators and market regulators, to do our best to protect the public and protect the financial system," Barr said in response to a question from the event's moderator, IIE nonresident senior fellow Anna Gelpern. "Inside the banking system, we have the tools we need."Barr's comments come as bank regulators in Washington carve out their positions on crypto through policy statements. This guidance has raised concerns among some industry participants that the agencies are trying to effectively block crypto firms from accessing the banking system.In his remarks, Barr made the case that crypto assets are simply being given the same treatment as any other financial product with a similar risk profile. While the sector has a number of idiosyncrasies that banks must be aware of — including the volatility of asset prices, the interconnectedness of various market participants and the pervasiveness of misrepresentation by issuing parties — Barr said crypto is largely subject to "the same fundamental liquidity and credit risks as traditional assets." Because of this, the Fed's basic risk management practices can be applied effectively.Barr said the impact of recent crypto firm failures on banks have been "limited in the aggregate," but the episodes stand as evidence that crypto could present a threat to banks if not properly supervised. He added that the Fed is working with regulatory agencies around the world to come up with global standards for dealing with crypto risks in an attempt to limit regulatory arbitrage. Barr said the U.S. is lagging behind the European Union and Japan, which have already established crypto-specific policies, but added that the U.S. has a long tradition of adapting legacy rules for contemporary activities."We have an existing regulatory infrastructure that can be adapted to new products and services, and that is usually the way the United States ends up moving forward with regulating a new kind of product — to say, 'Is this new kind of product, like an existing product that we developed?' and 'In what ways can we therefore regulate it using our existing tools?'" he said. "In the absence of Congress adapting a different framework, that's the framework we use."
Lawmakers debate fate of other regulators around CFPB Supreme Court case — Lawmakers and expert witnesses tried to suss out what would happen to other financial regulatory agencies should the Supreme Court rule that the Consumer Financial Protection Bureau's funding mechanism is unconstitutional. A number of Democratic lawmakers have raised concerns that other financial regulatory agencies, including the Fed, could face inadvertent consequences from the pending Supreme Court case over the CFPB. The Fed, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the National Credit Union Administration all have funding structures outside of the traditional congressional appropriations process. At a hearing of the House Financial Services Subcommittee on Financial Institutions and Monetary Policy, Rep. Andy Barr, R-Ky., asked witnesses to address the "sky is falling" concerns that the Supreme Court case could undermine the constitutionality of other self-funding banking regulators. Barr, yesterday, reintroduced his legislation that would bring the CFPB under congressional appropriations. Some of the Republican-called witnesses appeared to agree that the Supreme Court case would call into question the validity of other self-funded agencies. Devin Watkins, an attorney at the Competitive Enterprise Institute, said in his opening testimony that the Supreme Court decision could leave other agencies, including the Fed, OCC, FDIC, NCUA, the Office of Financial Research and the Federal Housing Finance Agency, open to challenges. He recommended that Congress pass conditional appropriations to guarantee those agencies' operations in the event that the Supreme Court rules the CFPB's funding mechanism unconstitutional."There are other agencies out there that do have nonappropriated funds and Congress should review those as well, and think about how to return those agencies to the congressionally funded appropriations process as well," he said in response to Barr's question. Brian Johnson, managing director at Patomak Global Partners LLC and former deputy director of the CFPB under Trump-appointee to the agency Kathy Kraninger, likened the CFPB more to regulators like the Securities and Exchange Commission and the Commodity Futures Trading Commission, and said that its funding should be considered differently than prudential regulators such as the Fed and the FDIC. "Fundamentally, the CFPB is in a different situation than the FDIC, the NCUA, the Fed and the OCC as each of those agencies has been assigned by Congress a safety and soundness mission — in other words, they're prudential regulators," he said. "And they provide a service to banks in the form of guaranteed liabilities — in terms of liability insurance, in terms of deposit insurance — and they supervise institutions for safety and soundness to guard against the risk to taxpayers." The CFPB, meanwhile, is "fundamentally a market conduct regulator," he said.
Powell says Fed does not give CFPB a 'blank check' for budget -The Federal Reserve does not give the Consumer Financial Protection Bureau a "blank check" to fund its budgets, Fed Chair Jerome Powell told lawmakers on Wednesday. During a three-hour-long House Financial Services Committee Hearing, Rep. Blaine Luetkemeyer, R-Mo., asked Powell whether the Fed had any oversight authority for the CFPB's spending plans. Powell said the Fed does not."So, they just get a blank check," Luetkemeyer said. "You just told me they just get a blank check. They send you a bill. You send them a check. There's no accountability there." Powell disputed that characterization, saying the CFPB's budget is capped by the Dodd-Frank Act of 2010, the legislation that authorized the creation of the agency. "No, I think there are limits built into the law," Powell said, "which I don't have in the front of my head."Luetkemeyer questioned whether that statutory limit was actually adhered to. "I have yet to see a limit, Mr. Chairman," he said. "I'd love to see what the limits are because I don't think that they've ever agreed to have that."The exchange was one of several during the hearing that touched on the Fed's relationship with the CFPB. The conversations come at a time when the bureau's funding mechanism is having its constitutionality challenged in the Supreme Court.According to the text of Dodd-Frank, the Fed is supposed to transfer an amount deemed "reasonably necessary" for the CFPB to carry out its duties. The law states that this amount shall not exceed 12% of the Fed's annual operating expenses, with an allowance for adjustments in line with the federal government's employee cost index. Last fall, the U.S. Court of Appeals for the Fifth Circuit deemed this funding structure to be unconstitutional, on the grounds that it circumvents the congressional appropriations process. The ruling has cast doubt on virtually all of the CFPB's past actions.
Rep. Andy Barr reintroduces CFPB funding bill -Rep. Andy Barr, R-Ky., chairman of the House Financial Services Subcommittee on Financial Institutions and Monetary Policy, has reintroduced a bill that would put the Consumer Financial Protection Bureau under the congressional appropriations process.Republicans have promised stricter oversight of the CFPB in the now Republican-controlled House. Although Barr's "Taking Account of Bureaucrats' Spending Act" isn't likely to get bipartisan support and advance beyond the House, however, it's still a powerful portent of where Republican interests lie with regard to the agency. "The CFPB is the most unaccountable and authoritarian agency in the entire federal bureaucracy. I'm leading this legislation to give the CFPB the wholesale makeover it needs to finally be accountable to Congress," Barr said in a statement. "The Fifth Circuit Court of Appeals and prominent legal scholars have been clear that the CFPB's novel and unique funding structure is unconstitutional by violating the Appropriations Clause. The TABS Act corrects this by requiring the Bureau to go through the traditional federal appropriations." The bill, along with subjecting the CFPB to the traditional congressional appropriations process, would rename the bureau the "Consumer Financial Empowerment Agency."
CFPB, NLRB team up to address employee surveillance and employer-driven debt - The Consumer Financial Protection Bureau and the National Labor Relations Board are teaming up to jointly address employee surveillance and employer-driven debt. The two agencies said Tuesday that they signed an agreement to share information that would help address certain practices that harm workers and may run afoul of federal consumer protection laws, labor laws and regulations. The effort would address issues such as training repayment agreements that may saddle workers with debt by requiring workers to foot the bill for training and employee surveillance tools."Many workers discover that getting a job can mean piling up debt instead of making a living," CFPB Director Rohit Chopra said in a press release. "Information sharing with the National Labor Relations Board will support our efforts to end debt traps that stop workers from leaving one job for another."The CFPB said that employees may not realize that employer surveillance tools that track productivity can continue to track them outside of working hours. Companies that own and use surveillance tools "might sell worker data to financial institutions, insurers, and other employers," the bureau said, noting that "certain actions by these surveillance companies may be violating the Fair Credit Reporting Act along with other consumer financial protection laws."
CFPB issues special report on so-called "junk fees" --The Consumer Financial Protection Bureau issued a special report on unlawful junk fees in bank accounts, mortgage servicing and auto loans. CFPB Director Rohit Chopra spoke on Wednesday at a White House virtual meeting with a handful of Democratic officials and state lawmakers to discuss ways in which states are tackling the proliferation of junk fees. Cracking down on junk fees has become a politicalrallying cry for President Biden as the Democratic Party seeks to portray itself as helping consumers cut costs."One of the things we want to see in our economy is companies competing by offering the best product at the best price," Chopra said at the event. "What you end up seeing is a lot of firms looking at ways to obscure that price, to tuck in a fee late in the game."Most states have a prohibition on "unfair and deceptive practices," and Chopra urged state lawmakers to strengthen laws that "go after some of these fees." In the 20-page report, the CFPB described a number of junk fees that examiners found during an eight-month period ending February 1st. The CFPB said some banks continue to assess what it called "surprise" overdraft fees — also known as "authorized-positive, settle-negative fees" — in which a consumer's account has a positive balance when a debit is authorized but then an overdraft fee gets charged because the debit is processed after other transactions are settled."Account holders could not reasonably avoid these surprise fees, irrespective of account disclosures," the CFPB said.
Senate Democrats press ABA to crack down on 'check washing' — Senate Democratic lawmakers wrote to the American Bankers Association criticizing the process of "check washing," a kind of check fraud that the lawmakers said has "become an elaborate and organized method of successfully scamming consumers and banks." Check washing involves changing the payee name on a check, and often the dollar amount, according to the United States Postal Inspection Service. The lawmakers, including Senate Banking Committee Chairman Sherrod Brown, D-Ohio, and Sens. Elizabeth Warren, D-Mass., and Catherine Cortez Masto, D-Nev., asked the bank group to come up with a plan to address the issue with its members by March 17. "Check washing has become an elaborate and organized method of successfully scamming consumers and banks. In 2022, banks saw an 84% increase in check fraud, costing consumers an estimated $815 million," the senators said in the letter. "The increase in check fraud has left many Americans in difficult situations where thousands of dollars are stolen from them. Making matters worse, banks are delaying the process of resolving their fraud claims by weeks and even months." Small banks have complained for months about the rise of check washing and check fraud, saying that large banks have been slow in repaying the smaller banks that get defrauded. Last month, the Community Bankers Association of Illinois asked the Federal Deposit Insurance Corp., Federal Reserve and Office of the Comptroller of the Currency to develop supervisory guidance to encourage larger banks to repay smaller, defrauded banks in a more timely manner.
Fraudsters turn to Telegram to recruit 'walkers' for check fraud -- Check fraud is on the rise, in part as a result of increasing mail theft, and recruiters have found a new place to recruit people to cash their fake or doctored checks: Telegram. Late last month, the Financial Crimes Enforcement Network (FinCEN) released an alert to financial institutions on a nationwide surge in check fraud schemes targeting U.S. mail. Even though the use of checks is declining in the U.S., their continued availability makes checks sent in the mail targets for theft, according to the alert. From March 2020 to February 2021, the U.S. Postal Service Inspector Service, which is the law enforcement arm of the Postal Service, received 299,000 mail theft complaints — an increase of 161% compared with the same period a year earlier. Additionally, FinCEN received 23% more check fraud-related reports from financial institutions in 2021 compared to 2020. The number of reports nearly doubled from 2021 to 2022, from 350,000 suspicious activity reports to 680,000. Maria Noriega, senior cyber threat intelligence analyst at Q6 Cyber, has been watching fraudsters communicate on Telegram about these schemes, helping each other recruit check walkers — people who can deposit a fraudulent check for them at a bank. In a typical scheme, a fraudster will use a bank account to which they have stolen access, or they will create an account using a synthetic identity — a combination of stolen and fabricated identifying information. Such an account is sometimes called a mule account. The fraudster then goes to illicit channels — often cross-platform messaging app Telegram, according to Noriega — to seek out help depositing a stolen check. The fraudster typically gets a reply from a broker, someone who can give the check to a walker. "A lot of this goes on, I believe, in private messages," Noriega said. "However, fraudsters do also look for walkers [directly] on the platform, so you'll see posts where they say they're looking for a walker and will pay them some amount to walk a check for them."
FHA to greenlight stand-alone 40-year modification - The Federal Housing Administration is moving forward with a proposal that would help people with hardships make their mortgage payments more manageable.Under the policy change, which follows a public notice and comment period last year, borrowers will be able to get a so-called stand-alone 40-year modification. Modifications are used to make loans more affordable when borrowers have had hardships that led to long-term reductions in income compared to the period in which their loans were first originated.Previously, the Department of Housing and Urban Development division that insures mortgages widely used by first-time homebuyers with income constraints allowed loan terms to be modified out to 40-year terms only in conjunction with a partial claim.Under the new policy, even if a distressed borrower exceeds limits for the amount that can be set aside to be paid later in a second lien (30% of the unpaid principal balance), they'll be able to extend the loan term out to 40 years.A partial claim as implemented in response to the pandemic must still be included with a 40-year modification if funds are available, according to Mortgagee Letter 2023-06, which the FHA issued in conjunction with a final rule on March 8. The provisions of the letter allow immediate implementation, with a May 8 mandatory effective date.The new policy will provide more leeway to homeowners with hardships, whose ability to get more affordable terms for their mortgages has been hamstrung by rising loan costs asfederal monetary policy officials have put upward pressure on lending rates.Other mortgages backed by the Department of Veterans Affairs and government-sponsored enterprises already had a similar type of modification as an option, but the FHA did not. The department also recently moved to expand the applicability of some temporary mortgage contingencies previously used only for people with pandemic hardships through its COVID-19 loss mitigation options so that they also could be used to address other forms of distress.
Black Knight Mortgage Monitor: Home Prices Declined in January, "on pace to fall below 0% by March/April" - Note: The Black Knight House Price Index (HPI) is a repeat sales index. Black Knight reports the median price change of the repeat sales. Press Release: Black Knight: Sellers Retreat From the Market, Increasing Inventory Shortage and Buoying Home Prices; Affordability Takes Step Back on Rising Interest Rates: Today, the Data & Analytics division of Black Knight, Inc. (NYSE:BKI) released its latest Mortgage Monitor Report, based on the company’s industry-leading mortgage, real estate and public records datasets. With both supply and demand in the housing market being impacted by a volatile interest rate environment, this month’s report looks at the continuing – and worsening – shortage in for-sale inventory and the role it is playing in keeping affordability tight and buoying home prices. “The interplay between inventory, home prices and interest rates has been the defining characteristic of the housing market for the last two years, and this continues to be the case,” said Walden. “Today, we see buyer demand dampened under pressure from rising rates and their impact on affordability, with purchase rate-lock volumes cooling in late February. However, when rates ticked down closer to 6% early in the month, we saw a rebound of buyside demand. On the other side of the equation, we’ve seen a consistent theme of potential sellers – many with first-lien rates a full 3 percentage points below today’s offerings – pulling back from putting their homes on the market. In fact, January marked the fourth consecutive monthly decline in overall for-sale inventory according to our Collateral Analytics data, with the primary driver being a 25-month stretch of new listing volumes running below pre-pandemic averages. While demand remains weak, faltering supply has resulted in months of available inventory stagnating near 3.1 in recent months. … This month’s report draws further upon the Black Knight HPI – the timeliest and most granular in the industry – to look at January 2023 home price trends, finding that prices fell once again, pulling back by 0.24% from December 2022 and a more modest 0.13% on a seasonally adjusted basis. Though January marked the seventh consecutive month of falling home prices, the month’s decline was the smallest during that span. Home prices are now -5.5% off their June peak (or off -2.9% seasonally adjusted). The annual home price growth rate – which tracks growth over the prior 12 months – fell to 3.4% in January. That is already more than a full percentage point below the 30-year average – and is on pace to fall below 0% by March/April. Price impacts could strengthen again if 30-year rates continue to climb as they have through late February, although tight inventory will put a floor on how much prices will ease. Here is a graph of the Black Knight HPI. The index is still up 3.4% year-over-year but declined for the seventh consecutive month in January and is now 5.5% off the peak in June 2022.
- • Home prices fell again in January, pulling back by 0.24% from December and a more modest 0.13% on a seasonally adjusted basis
- • That’s the smallest monthly decline in seven months, as falling interest rates and improving affordability in late 2022/early 2023 ran into tightening supply
- • All in, home prices are now 5.5% off their June peak and a more modest 2.9% off peak when adjusting for typical seasonal trends
- • The annual home price growth rate fell to 3.43% in January – more than a full percentage point below the 30-year average – and is on pace to fall below 0% by March/April
Here is a graph on delinquencies from Black Knight. Overall delinquencies are near record lows.
- • At 3.38%, the national delinquency rate declined 10 bps in January and is now down 15% (60 bps) year over year
- • January’s 2.9% decline in delinquencies was broad-based, led by a 4.8% drop in early stage delinquencies (30 days past due)
- • 60-day and 90-day delinquencies both decreased slightly (0.8% and 0.6% respectively)
- • Serious delinquencies (90+ days past due) continued to improve nationally, falling by 4K, with 44 states seeing volumes shrink in the month, while Florida added another 1.7K in the wake of Hurricane Ian
There is much more in the mortgage monitor.
Housing March 6th Weekly Update: Inventory Decreased 2.6% Week-over-week -- Altos reports that active single-family inventory was down 2.6% week-over-week. Usually inventory bottoms in early February, so we'd expect inventory to bottom seasonally soon.Here are the same week inventory changes for the last five years: […] This inventory graph is courtesy of Altos Research. As of March 3rd, inventory was at 419 thousand (7-day average), compared to 430 thousand the prior week. The second graph shows the seasonal pattern for active single-family inventory since 2015.The red line is for 2023. The black line is for 2019. Note that inventory is up from the previous two years (the record low was in 2022), but still well below normal levels.Inventory was up 74.3% compared to the same week in 2022 (last week it was up 76.2%), and down 48.8% compared to the same week in 2019 (last week down 47.5%). A key will be when inventory starts increasing in 2023 - so far inventory has declined about 14.7% over the first nine weeks of 2023.Mike Simonsen discusses this data regularly on Youtube.
Hotels: Occupancy Rate Down 5.6% Compared to Same Week in 2019• Occupancy: 62.8% (+3.0%, -5.6%)
• verage daily rate (ADR): $151.35 (+8.9%, +14.1%)
• Revenue per available room (RevPAR): $95.06 (+12.1%, +7.7%)
*Due to the pandemic impact, STR is measuring recovery against comparable time periods from 2019. Year-over-year comparisons will once again become standard after Q1.The following graph shows the seasonal pattern for the hotel occupancy rate using the four-week average. NOTE: Last year, the occupancy rate was close to normal after the first quarter (depressed due to a surge in COVID), so STR will only be comparing to 2022 after Q1.The red line is for 2023, black is 2020, blue is the median, and dashed light blue is for 2022. Dashed purple is 2019 (STR is comparing to a strong year for hotels). The 4-week average of the occupancy rate is close to the median rate for the previous 20 years (Blue).
Update: Framing Lumber Prices Down 72% YoY, Below Pre-Pandemic Levels -Here is another monthly update on framing lumber prices.This graph shows CME random length framing futures through March 3rd. Lumber is currently at $369 per 1000 board feet.This is down from the peak of $1,733, and down 72% from $1,441 a year ago.Prices are down 8% compared to the same week in 2019, and below the pre-pandemic levels of around $400.There is somewhat of a seasonal demand for lumber, and lumber prices usually peak in April or May.It is unlikely we will see a significant runup in prices this Spring due to the housing slowdown.
Trade Deficit increased to $68.3 Billion in January -From the Department of Commerce reported: The U.S. Census Bureau and the U.S. Bureau of Economic Analysis announced today that the goods and services deficit was $68.3 billion in January, up $1.1 billion from $67.2 billion in December, revised.January exports were $257.5 billion, $8.5 billion more than December exports. January imports were $325.8 billion, $9.6 billion more than December imports.Both exports and imports increased in January.Exports are up 13% year-over-year; imports are up 3% year-over-year. Both imports and exports decreased sharply due to COVID-19 and then bounced back. The second graph shows the U.S. trade deficit, with and without petroleum.The blue line is the total deficit, and the black line is the petroleum deficit, and the red line is the trade deficit ex-petroleum products.Note that net, exports of petroleum products are positive.The trade deficit with China decreased to $25.2 billion in January, from $36.4 billion a year ago.The trade deficit was close to the consensus forecast.
Used-Vehicle Auction Prices Jump for Third Month, after Last Year’s Plunge. More Trouble Brewing for “Core” CPI by Wolf Richter -- More trouble brewing beneath the surface for inflation. Used vehicle wholesale prices at auction jumped 4.3% in February from January, seasonally adjusted, the biggest month-to-month jump for any February since 2009, and the third month in a row of increases, with hefty price increases across all eight vehicle segments, according to Manheim, the largest auto auction house in the US and a unit of Cox Automotive. Not seasonally adjusted, wholesale prices jumped by 3.7%, to $20,652, second month in a row of increases. These price increases “were not typical” for February, Manheim said. Both metrics of wholesale prices are adjusted for changes in the mix and mileage. These auction prices show that dealers have to pay more to restock their inventory. And they’re going to try to pass on the increased costs to their retail customers. The Consumer Price Index for used vehicles usually picks up changes in retail prices within two to three months: Price increases month-over-month in February from January: The year-over-year price decline was reduced to -5.6%, not seasonally adjusted, from peak-decline of -13.1% in December. Rental risk units rose 0.5% year-over-year, after the big month-to-month jumps in January and February. Sellers had more pricing power than typically seen this time of year: The average daily sales conversion rate jumped to 64.3% in February, from 59.4% in January, both of them well above normal for this time of the year. Used vehicle retail sales fell 5% month-to-month and 9% year-over-year, on a same-store basis, according to initial estimates based on data from Dealertrack, a service of Cox Automotive. This came after the jump in sales in January (+16% month-over-month and +5% year-over-year) that had pushed supply of vehicles down. Wholesale supply fell to 24 days at the end of February, from 26 days in January, 32 days in December, and 29 days in February a year ago. Retail supply at dealers fell for the second month in a row, to 41 days by the end of February, down from 48 days in January, and from 57 days in December, based on vAuto data, a service of Cox Automotive. This declining supply explains why dealers were more eager to buy at auctions – to replenish their inventories for spring selling season – and they bid up prices in the process. These two consecutive months of dropping supply into the spring selling season (tax refund season) suggests that there will be more pricing pressures going forward:
All Portland Walmart Stores To "Permanently Close" Amid Theft Wave - In order to address the issue of shoplifting and retail theft, the final two Walmart stores in the city of Portland will shutter their doors in late March. FOX 12 Oregon reported that the Walmart locations at 1123 North Hayden Meadows Drive and 4200 Southeast 82nd Avenue at the Eastport Plaza would close on Mar. 24. "The decision to close these stores was made after a careful review of their overall performance. We consider many factors, including current and projected financial performance, location, population, customer needs, and the proximity of other nearby stores when making these difficult decisions. After we decide to move forward, our focus is on our associates and their transition, which is the case here," a spokesperson with Walmart told the local media outlet. The announced closures come amid a wave of violent crime across the Portland metro area, which includes retail thefts, armed robberies, and homicides. The city has also seen a surge of violent protests from ANTIFA and BLM groups. Oregon Live reported that in 2022, Portland set a new record for homicides with 101 cases, surpassing the previous year's record of 92. Meanwhile, a National Retail Federation report revealed that retailers experienced an average surge Data from the Portland Police Bureau indicated that between January 2022 and January 2023, the city witnessed more than 6,000 burglary incidents. Additionally, the data revealed over 27,000 larceny offenses.
Amazon Announces Store Closures In High Crime Cities - Amazon has announced it will be closing several grocery stores in high crime cities like NYC, Seattle and San Francisco, but claims the measure is related to “cost-cutting”. The retail giant said it would be permanently shutting down eight of its 29 Amazon Go stores, which are designed for maximum convenience as the shopper can just scan the items as they leave, with no staff required.Criminals can also conveniently jump over the barrier with no one there to stop them.Despite the cashier-free system helping Amazon’s bottom line, the company claimed it was closing the outlets because they haven’t met profitability expectations.“The stores being closed include two in downtown Seattle that had already been shut on a temporary basis, leaving five in the city. In addition it is closing two in New York City and four in San Francisco. The six closings of stores still operating are due to take place April 1,” reports CNN.The first such store opened by Amazon in 2016 in Seattle was subsequently looted by Black Lives Matter “protesters” during the George Floyd riots.As we highlighted yesterday, Walmart is also closing its final two stores in Portland, but cited the same ‘profitability’ excuse as Amazon, prompting widespread skepticism.Jeremy Girard of the Oregon Retail Crime Association says shoplifting in the city has a “crisis level” and stores are losing $5 million per year to theft.“We’re having big retailers leave,” said Jordan Zaitz, a member of the Portland Police’s Neighborhood Response Team.“I mean, to have Walmart close two of its stores is a really big deal. The people in those neighborhoods, that’s where they shop.”
BLS: Job Openings Decreased to 10.8 million in January - From the BLS: Job Openings and Labor Turnover Summary: The number of job openings decreased to 10.8 million on the last business day of January, the U.S. Bureau of Labor Statistics reported today. Over the month, the number of hires and total separations changed little at 6.4 million and 5.9 million, respectively. Within separations, quits (3.9 million) decreased, while layoffs and discharges (1.7 million) increased. The following graph shows job openings (black line), hires (dark blue), Layoff, Discharges and other (red column), and Quits (light blue column) from the JOLTS. This series started in December 2000. Note: The difference between JOLTS hires and separations is similar to the CES (payroll survey) net jobs headline numbers. This report is for January the employment report this Friday will be for February. Note that hires (dark blue) and total separations (red and light blue columns stacked) are usually pretty close each month. This is a measure of labor market turnover. When the blue line is above the two stacked columns, the economy is adding net jobs - when it is below the columns, the economy is losing jobs. The spike in layoffs and discharges in March 2020 is labeled, but off the chart to better show the usual data. Jobs openings decreased in January to 10.8 million from 11.2 million in December. The number of job openings (black) were down 6% year-over-year. Quits were down 12% year-over-year. These are voluntary separations. (See light blue columns at bottom of graph for trend for "quits").
January JOLTS report consistent with a softening, but still very strong, labor market - This morning’s JOLTS report for January, unlike the recent payrolls report, generally showed further softening in the labor market. While hires (red in the graph below, normed to a value of 100 as of February 2020) increased 121,000, quits (gold) declined 207,000, and openings (blue) declined 410,000: The downward trend in quits is most noticeable. Since employees voluntarily quit more, the more confident they are about new job prospects, this is a clear sign of *relative* weakening. The increase in hires is more a flattening of the trend, which had been decelerating. The trend in openings does appear to be softer, although given the increase in the last few months before January, that is more questionable. For comparison purposes, here is the same graph covering the period since the inception of the series through 2019: Note that all three appeared to be weakening just before the 3 recessions since 2000; but openings have continued to increase on a secular basis. That businesses may have been maintaining job postings even when they were not actively looking, but just to troll for resumes; and further that that behavior has probably been spreading throughout industry; is one reason why I do not place as much value in this series as I do in others. Still, the overall trend is useful evidence of the status of the jobs market. Finally, layoffs and discharges increased sharply, by 241,000, in January, to their highest level since October 2020: Here is their record before the pandemic: Note that the current level of layoffs and discharges would be very good for any period since 2000 up until the pandemic hit. To summarize: the January JOLTS report is most consistent with a continued very strong labor market, but one which is softening in comparison with even stronger levels during 2021-22. A weakening of this report, particularly as to job openings, is one of the main indicators I have been looking at for evidence that broader employment metrics are beginning to capitulate. I don’t think this report puts us there in any meaningful sense. Still, in Friday’s employment report I will be focusing most intently on whether employment in three leading sectors – temporary jobs, manufacturing, and residential construction – has either continued negative (as to the first sector) or turned negative (as to the last two). JOLTS and jobless claims: the labor market remains a strong positive, Angry Bear, New Deal democrat
Layoffs & Discharges Jump amid Tech & Social Media Cutbacks. Overall Labor Market Still Tight with some Signs of Loosening - By Wolf Richter - Actual layoffs and discharges in the US – not mere announcements of layoffs by global companies that may not even take place in the US – is one of the major points that stood out in today’s Job Openings and Labor Turnover Survey (JOLTS) by the Bureau of Labor Statistics: After slowly zig-zagging higher for months from the tightest-labor-market lows, they jumped in January. Every day even during the best of times, companies lay off or fire people, which is part of the normal churn in the vast US labor market. Between 2011 and 2019, layoffs and discharges averaged 1.8 million per month. During good times, most of these workers find new jobs quickly. But during bad times, the flow of newly unemployed workers increases, while companies cut back on their hiring, and unemployment rises. This isn’t happening yet. What happened in January was that layoffs and discharges jumped to 1.72 million, the highest since December 2020, after having edged higher for months from the historic lows of around 1.4 million in 2021 and 2022. Layoffs and discharges have now reached the low end of the pre-pandemic range. There is a clear pattern of returning to the normal range – a sign the labor market is getting a little less tight: People having second thoughts before quitting? In the tight labor market over the past two years, one of the phenomena was that workers figured out that there were better jobs out there, that paid more or had better working conditions, or less of a commute, and they massively quit their current job to take on a better job, which created a huge amount of churn in the labor force. This arbitrage by the newly empowered workers spread wage increases across the economy as employers had to up the ante to hire and retain staff. The number of workers who quit their jobs, after having gently zig-zagged down for months, dropped more sharply in January, to the lowest since May 2021, to 3.88 million, down from around 4.5 million in late 2021 and early 2022. The pre-pandemic record was 3.55 million in January 2020, already indicating a lot of churn in a tight labor market. So this is still a historically large number of quits, in what is still a tight labor market, but it shows that some of the frenzy is leaching out: The decline in quits from the super-high levels a year ago, to still historically high levels, could be a sign of changes in the labor market, including:
- Employers no longer upping the ante to the extent they used to, providing less incentives for workers elsewhere to quit their current jobs to jump ship.
- Fewer alluring job openings out there in tech and social media, as we’ll see in a moment.
- Less confidence among workers that they will find a better job.
ADP Reports Wage Growth Slowing Despite Job Gains After tumbling last month to its lowest in two years (blamed on weather), ADP's employment report was expected to show a rebound in Feb, adding 200k jobs. The actual print was even higher at +242k (with January's revised up to +119k). Large companies dominated the beat... Business Services and Construction sectors saw job losses... ADP's chief economist Nela Richardson said of the January weakness, "we saw the impact of weather-related disruptions on employment during our reference week."Richardson's comments for February:"There is a tradeoff in the labor market right now. We're seeing robust hiring, which is good for the economy and workers, but pay growth remains quite elevated. The modest slowdown in pay increases, on its own, is unlikely to drive down inflation rapidly in the near-term." However, pay growth for job stayers slowed to 7.2 percent in February, the slowest pace of gains in 12 months. Pay growth decelerated for job changers, too, falling to 14.3 percent from 14.9 percent. As a reminder, ADP has dramatically under-forecast BLS 'official' job gains for months... Equity bulls better start hoping for a big ugly print in payrolls soon or The Fed's hawkish dreams may come true sooner rather than later. All eyes now turn to JOLTS data (and the potential for a big miss).
February Employment Report: 311 thousand Jobs, 3.6% Unemployment Rate --From the BLS: Total nonfarm payroll employment rose by 311,000 in February, and the unemployment rate edged up to 3.6 percent, the U.S. Bureau of Labor Statistics reported today. Notable job gains occurred in leisure and hospitality, retail trade, government, and health care. Employment declined in information and in transportation and warehousing. ... The change in total nonfarm payroll employment for December was revised down by 21,000, from +260,000 to +239,000, and the change for January was revised down by 13,000, from +517,000 to +504,000. With these revisions, employment gains in December and January combined were 34,000 lower than previously reported. The first graph shows the jobs added per month since January 2022. Total payrolls increased by 311 thousand in February. Private payrolls increased by 265 thousand, and public payrolls increased 46 thousand. Payrolls for December and January were revised down 34 thousand, combined. The second graph shows the year-over-year change in total non-farm employment since 1968. In February, the year-over-year change was 4.34 million jobs. Employment was up significantly year-over-year. The third graph shows the employment population ratio and the participation rate. The Labor Force Participation Rate increased to 62.5% in February, from 62.4% in January. This is the percentage of the working age population in the labor force. The Employment-Population ratio was unchanged at 60.2% (blue line). The fourth graph shows the unemployment rate. The unemployment rate increased in February to 3.6% from 3.4% in January. This was above consensus expectations; however, December and January payrolls were revised down by 34,000 combined.
US Added 311,000 Jobs in February; Unemployment Rate at 3.6% --The labor market continued its energetic expansion in February, extending a hotter-than-expected streak that has created abundant job opportunities while frustrating the Federal Reserve in its drive to contain stubborn inflation.Employers added 311,000 jobs in February, the Labor Department reported Friday, continuing a hotter-than-expected streak that has created abundant job opportunities while frustrating the Federal Reserve in its drive to contain stubborn inflation. The unemployment rate ticked up to 3.6 percent, still an exceptionally low level brought about by robust job creation and workers’ slow return to the labor force after the pandemic. It was 3.4 percent in January, the lowest since 1969. …Hiring has been a persistent source of dynamism in the economy since the pandemic lockdowns eased, even in the face of interest rate increases that have raised fears of a recession.In remarks at the White House, President Biden hailed the jobs report as a sign that his administration’s policies had helped sustain the American economy. “Today’s jobs numbers are clear: Our economy is moving in the right direction,” he declared.But there were signs in the February report that the job market’s extreme tightness might be easing.Overall, an influx of more than 400,000 job seekers lifted the labor force participation rate, which has been slow to recover as older people retired early. The rate for those in their prime working years — ages 25 to 54 — jumped to 83.1 percent, finally exceeding its prepandemic level.Wages grew 0.2 percent from January to February, a continued deceleration and the smallest increase since February 2022. And the average workweek shrank slightly, another indication of reduced demand for workers that is likely to provide some comfort to Federal Reserve policymakers, who have closely watched earnings as a driver of inflation.The central question around the Fed’s strategy is whether higher interest rates can take the air out of price increases without throwing millions of people out of work. So far, inflation has been easing slowly, but continued job gains have brightened the consumer mood. That has powered a turnaround in retail spending and moved economists’ projections of an impending recession further into the future — if it happens at all.Part of the resilience in hiring reflects Americans’ continued desire to return to their pre-2020 habits of going on vacations and eating out at restaurants. “Some of these sectors, especially services, are still recovering from the pandemic,” said Eugenio Alemán, chief economist at the financial services firm Raymond James. “I think that puts the thought of a recession kind of in doubt.”
U.S. adds 311k jobs in February but earnings slow, jobless rate rises -- The U.S. economy continued to create jobs faster than most expected in February, but wage growth eased and the average worker's working hours fell, suggesting that the labor market is indeed starting to cool. The Labor Department said nonfarm payrolls rose by 311,000 through the middle of the month, well above the 205,000 consensus forecast, but down from a revised 507,000 in January. January's numbers had been distorted upward by seasonal adjustments and other statistical quirks. While the headline number was above forecasts, key elements of the survey pointed to a slight weakening of the labor market. Average hourly earnings growth slowed to 0.2%, rather than staying at 0.3% as expected, while the average number of hours worked edged down to 34.5 from 34.6. Gilles Moec, chief economist with French asset management giant AXA, said that the report was consistent with the Fed raising the target range for fed funds by 25 basis points at its meeting in two weeks' time, in as much as it had not borne out fears of inflationary pressures rising again. "Fed’s hesitation is on the calibration of the next hike, not on whether or not it should hike, so today’s payroll is probably enough to keep them at 25 bps, unless we have a freak CPI next week," Moec said. At the same time, he added, the labor market still remains too strong for the Fed to contemplate ending its hikes and contemplating any lowering of rates. The unemployment rate rose to 3.6% from 3.4%, while the percentage of working-age adults in the active workforce reached its highest since the early days of the pandemic, inching up to 62.5% from 62.4%, Both of those indicators suggest a modest improvement in labor supply, which has been nowhere near the level needed to fill the vacancies created by the disruption of the pandemic. U.S. stock futures turned positive after the release, which pointed again to a scenario resembling the Federal Reserve's desired "soft landing" for the economy. While job growth was materially above expectations, the other elements of the report suggested that the labor market - while still hot - is cooling down a little rather than overheating. "The overall story still seems to be one of slowly cooling wage growth,"
February jobs report shows decelerating trend continuing -As I’ve written several times this week, my focus on this report was on whether manufacturing and residential construction jobs turned negative or not, whether temporary jobs continued on their downward trajectory, and whether the deceleration apparent in job growth would reappear after the blockbuster January report.Deceleration absolutely reasserted itself: and manufacturing jobs appear to have rolled over, while construction and temporary jobs held up:Although here too the decelerating trend is apparent. Here’s my in depth synopsis:
- 311,000 jobs added. Private sector jobs increased 265,000. Government jobs increased by 46,000. The three month moving average of growth declined slightly to 351,000, still 67,000 higher than the average in December.
- The alternate, and more volatile measure in the household report rose by 177,000 jobs. The above household number factors into the unemployment and underemployment rates below.
- U3 unemployment rate increased +0.2% to 3.6%.
- U6 underemployment rate also rose 0.2% to 6.8%.
- December was revised downward by -21,000, and January was also revised downward by -13,000, for a net decrease of -34,000 jobs compared with previous reports.
- the average manufacturing workweek, one of the 10 components of the Index of Leading Indicators, declined -0.2 hours to 40.7, down -0.9 hours from February peak last year of 41.6 hours.
- Manufacturing jobs declined by -4,000.
- Construction jobs increased 24,000.
- Residential construction jobs, which are even more leading, increased by only 1,200.
- Temporary jobs, which had been declining late last year, rose for the second month in a row, by 6,800.
- the number of people unemployed for 5 weeks or less rose 343,000 to 2,289,000.
- Average Hourly Earnings for Production and Nonsupervisory Personnel increased $.013, or +0.5%, to $28.42, a YoY gain of 5.3%, an increase from its previous deceleration to 5.1% in January.
- the index of aggregate hours worked for non-managerial workers declined -0.4%.
- the index of aggregate payrolls for non-managerial workers was unchanged, and resumed its deceleration to 7.4% YoY, the lowest since early 2021, although still more than 1% higher YoY than inflation as of the last reading.
- Leisure and hospitality jobs, which were the most hard-hit during the pandemic, rose 105,000, and have improved to -2.4% below their pre-pandemic peak.
- Within the leisure and hospitality sector, food and drink establishments added 69,900 jobs, and are now only -0.9% below their pre-pandemic peak.
- Professional and business employment rose 45,000. This series has also been decelerating consistently, and is now up 2.7% YoY, the lowest increase since mid-2021.
- The Labor Force Participation Rate increased 0.1% to 62.5%, vs. 63.4% in February 2020.
- The number of job holders who were part time for economic reasons rose 17,000.
- Those not in the labor force at all, but who want a job now, declined -211,000 to 5.103 million, compared with 4.996 million in February 2020.
SUMMARY: In absolute terms, this report was yet another solid positive report in terms of job growth. In relative terms, however, the deceleration which was apparent for most of last year resumed. Positive signs included growth in temporary and construction jobs, the nearly total recovery in food and drinking places jobs, resumed stronger wage growth, an increase in labor force participation, and a decline in those who aren’t in the labor force but want a job now.Negatives included a resumption in the decline of the manufacturing work week, a decline in manufacturing jobs (plus downward revisions for the prior two months), increases ini both the un- and under-employment rates as well as short term unemployment, and an outright decline in the number of hours worked.Deceleration was apparent in residential construction jobs, professional and business jobs, and aggregate non-supervisory payrolls.In sum, we have further deceleration but no indication of any imminent downturn in the number of actual jobs available in the economy.
Comments on February Employment Report - The headline jobs number in the February employment report was above expectations, however employment for the previous two months was revised down by 34,000, combined. The participation rate increased, and the unemployment rate increased to 3.6%. Leisure and hospitality gained 105 thousand jobs in February. At the beginning of the pandemic, in March and April of 2020, leisure and hospitality lost 8.2 million jobs, and are now down 410 thousand jobs since February 2020. So, leisure and hospitality has now added back about 95% all of the jobs lost in March and April 2020. Construction employment increased 24 thousand and is now 310 thousand above the pre-pandemic level. Manufacturing lost 4 thousand jobs and is now 198 thousand above the pre-pandemic level. In February, the year-over-year employment change was 4.34 million jobs. Prime (25 to 54 Years Old) Participation Since the overall participation rate is impacted by both cyclical (recession) and demographic (aging population, younger people staying in school) reasons, here is the employment-population ratio for the key working age group: 25 to 54 years old. The 25 to 54 participation rate increased in February to 83.1% from 82.7% in January, and the 25 to 54 employment population ratio increased to 80.5% from 80.2% the previous month. Both are at the pre-pandemic levels and suggest essentially all of the prime age workers have returned to the labor force. The graph shows the nominal year-over-year change in "Average Hourly Earnings" for all private employees from the Current Employment Statistics (CES). There was a huge increase at the beginning of the pandemic as lower paid employees were let go, and then the pandemic related spike reversed a year later. Wage growth has trended down after peaking at 5.9% YoY in March 2022 and was at 4.6% YoY in February. Wages growth was strong last year in the March through July period, so year-over-year wage growth will likely slow over the next few months. From the BLS report: "The number of persons employed part time for economic reasons, at 4.1 million, was essentially unchanged in February. These individuals, who would have preferred full-time employment, were working part time because their hours had been reduced or they were unable to find full-time jobs." The number of persons working part time for economic reasons increased in February to 4.067 million from 4.050 million in January. This is at pre-recession levels. These workers are included in the alternate measure of labor underutilization (U-6) that increased to 6.8% from 6.6% in the previous month. This is down from the record high in April 22.9% and up from the lowest level on record (seasonally adjusted) in December 2022 (6.5%). (This series started in 1994). This measure is below the level in February 2020 (pre-pandemic). Unemployed over 26 Weeks This graph shows the number of workers unemployed for 27 weeks or more. According to the BLS, there are 1.057 million workers who have been unemployed for more than 26 weeks and still want a job, down from 1.111 million the previous month. This is at pre-pandemic levels. Summary: The headline monthly jobs number was above expectations; however, employment for the previous two months was revised down by 34,000, combined. The headline unemployment rate increased to 3.6%. Overall, this was a solid employment report.
People found living in tunnel under Colorado highway flyover - — Police say they found people living in a tunnel beneath a highway flyover in Wheat Ridge, Colorado, and now the state is working to clean out the encampment.The Wheat Ridge Police Department released a video showing cluttered conditions inside the tunnel, located under the Highway 58 flyover at Interstate 70. Police said an officer found the encampment after spotting someone climbing into the tunnel. “It turns out people have been trespassing, living there and storing excessive amounts of trash and property throughout the length of the flyover,” the department said in a release.In the video released Thursday, officers navigate through piles of boxes and other clutter, alongside hanging clothes, canned goods and other pantry items lined up on a table. The Colorado Department of Transportation has contracted a company to clean out the encampment, police said. CDOT uses the tunnel to inspect the flyover.
VW wouldn’t locate kidnapped child because his mother didn’t pay for find-my-car subscription -Cory Doctorow --The masked car-thieves who stole a Volkswagen SUV in Lake County, IL didn’t know that there was a two-year-old child in the back seat — but that’s no excuse. A violent car-theft has the potential to hurt or kill people, after all. Likewise, the VW execs who decided to nonconsensually track the location of every driver and sell that data to shady brokers — but to deny car owners access to that data unless they paid for a “find my car” subscription — didn’t foresee that their cheap, bumbling subcontractors would refuse the local sheriff’s pleas to locate the car with the kidnapped toddler.-----The local sheriff called Volkswagen and begged them to track the car. VW refused, citing the fact that the mother had not paid for the $150 find-my-car subscription after the free trial period expired. Eventually, VW relented and called back with the location data — but not until after the stolen car had been found and the child had been retrieved.----- In short: the automotive sector has filled our cars with surveillance gear, but that data is only reliably available to commercial data-brokers and hackers who breach Big Cars’ massive data repositories. Big Car has the IT capacity to fill our cars with cheat devices — but not the capacity to operate an efficient surveillance system to use in real emergencies. Big Car says that giving you control over your car will result in your murder — but when a child’s life is on the line, they can’t give you access to your own car’s location.
‘Disrespected’: 9th grader’s parents suing over Pledge of Allegiance confrontation (AP) — The parents of a ninth grade South Carolina student who said she was accosted by a teacher for quietly walking to class instead of stopping and reciting the Pledge of Allegiance are suing the teacher, principal, school district and state education officials. Marissa Barnwell said she was walking quietly to class and decided not to stop for the pledge or a moment of silence that followed. A teacher yelled at her, confronted her and pushed her against a wall. Barnwell was then sent to the principal’s office, which she said was humiliating because she feared she was in trouble. The principal promised to look at the video of the encounter and sent her back to class, but Barnwell said he never let her know that the teacher was wrong and she was right. “I was completely and utterly disrespected,” Barnwell, 15, said at a news conference Thursday, according to The State newspaper. “No one has apologized, no one has acknowledged my hurt. … The fact that the school is defending that kind of behavior is unimaginable.” Barnwell’s parents are suing the River Bluff High School teacher, the principal, Lexington School District 1, and the South Carolina Education Department in federal court, saying they violated the girl’s civil rights and her First Amendment rights to both free speech or not to speak at all. A state law passed more than 30 years ago requires public schools to play the Pledge of Allegiance at a specific time every day.
Youngkin calls for gender-neutral bathrooms after question from transgender Virginia teen - Virginia Gov. Glenn Youngkin (R) called for gender-neutral bathrooms in schools on Thursday, in response to a town hall question from a transgender Virginia teenager. “Look at me. I am a transgender man,” Niko, a 17-year-old from Arlington, Va., said at a CNN town hall. “Do you really think that the girls in my high school would feel comfortable sharing a restroom with me?” Youngkin, who issued a series of restrictive guidelines to Virginia schools last fall related to transgender students, said on Thursday that it was important to accommodate students. “That’s why I have said many, many times, we just need extra bathrooms in schools,” he said. “We need gender-neutral bathrooms and so people can use the bathroom that they, in fact, are comfortable with.” Youngkin’s guidelines would require transgender students to participate in activities and use school facilities that align with the sex they were assigned at birth. It would also make it more difficult for students to change their name or gender presentation at school. However, the suggestion that transgender students can use gender-neutral bathrooms in response to such restrictions faces legal challenges elsewhere in the country. Several transgender students in Oklahoma are suing the state over such a policy, which required them to use “a single-occupancy restroom or changing room” if they declined to use facilities matching their sex assigned at birth under a new law.
West Virginia senators reject bill to ban child marriage - West Virginia state senators on the Judiciary Committee rejected a bill on Wednesday to ban child marriage under all circumstances. The bill, which was narrowly voted down 9-8 by the committee, sought to establish 18 as the age of consent for marriage and remove the ability for minors to even seek consent from a parent, guardian or court to marry. In West Virginia, children as young as 16 can currently marry with parental consent, while those under 16 must request a waiver from a judge, according to ABC News. A Pew Research Center analysis based on 2014 data found that the state had one of the highest rates of child marriage in the country. “I just wanted to remind everyone in the room that this is International Women’s Day,” state Senate Minority Leader Mike Woelfel (D) said after the committee rejected the bill, according to MetroNews. “Thank you.” Democratic state Delegate Sen. Kayla Young, the lead sponsor on the bill, slammed the committee vote on Wednesday. The bill was overwhelmingly passed by the West Virginia House of Delegates last week. “They first moved to table the bill without discussion, which failed, so they killed the bill instead,” Young said in a tweet. “For now, there will be no floor for the age of marriage in WV, endangering our kids.” The bill was successfully discharged from the Senate Judiciary Committee on Thursday but it remains to be seen if it can pass the full state Senate.
Boebert praises high rural teen birth rates while announcing first grandchild - Rep. Lauren Boebert (R-Colo.) is announcing that she’ll soon be “a 36-year-old grandmother,” while praising “rural conservative communities” that “value life.” The Colorado Republican revealed that the girlfriend of her 17-year-old son, Tyler, is due next month. “I’m going to tell you all for the first time in a public setting, that not only am I a mom of four boys, but come April, I will be a gigi to a brand new grandson,” Boebert said this week at a Conservative Political Action Conference (CPAC) event.The lawmaker described her and her husband as “so excited to welcome this new life into our family.”“Now any of you who have young children who are giving life, there’s some questions that pop up. There’s some fear that arises,” Boebert told the audience as she was presented with the Moms for America’s “Mothers Influence Award” on Tuesday for taking “an incredible stance in empowering moms, promoting liberty, and raising patriots!”
Audits of Covid-19 Aid for Schools Find Millions of Dollars Misspent –WSJ - Millions of dollars in Covid-relief funds sent to school districts, colleges and state governments for education have been spent on questionable or potentially fraudulent expenses since 2020, federal and state auditors have found.The U.S. Education Department’s Office of Inspector General examined a sampling of the spending attached to more than $280 billion in federal pandemic funds, and identified faulty awards, double payments and improper contracts, according to reports recently released by the office.
US schools misspend COVID-19 funds, report says - Chinadaily.com -- Tens of millions of dollars in federal pandemic funds sent to US school districts, colleges and state government for education have reportedly been misspent since 2020 because of faulty awards, double payments and improper contracts. A total of $280 billion of such funds were paid, and federal and state auditors had found the misspending, The Wall Street Journal reported on Friday. Three states had been audited, it said, and Oklahoma may have misspent the most: $31 million out of $40 million paid to schools and education programs. Oklahoma improperly spent $8 million to provide 5,000 families with $1,500 grants to buy their children computers and other supplies for the 2021 school year. Families who received the help spent more than $650,000 on noneducational items such as televisions, gaming systems, Apple Watches and Christmas trees. Oklahoma also used funds to provide vouchers of up to $6,500 for low-income students attending private schools during the pandemic. Auditors said that for every eight out of 10 students receiving the grants, the state could not provide supporting documents to show they were enrolled and attended private schools. Republican Oklahoma Governor Kevin Stitt blamed the misspending partly on federal pressure to distribute the money quickly without clear guidance. "That's what happens when big government goes out just throwing money around," The Wall Street Journal quoted him as saying. Stitt said a vendor that the state used to administer a program for low-income families improperly handled hundreds of thousands of dollars. "There's … $650,000 worth of this misspending where the low-income people spent it on a washer-dryer, instead of educational materials." The audit found that the federal government gave at least $1.2 million to colleges and universities that were closed, and another $73 million was paid in duplicate grants to colleges and universities, the newspaper said. However, the funds were recovered by the Education Department. The audit found that only part of the $122 billion COVID-19 relief fund for K-12 public school districts, about 27 percent, has been spent. However, the nonprofit news organization Chalkbeat reported that due to the slow speed of data submission and aggregation from district to state to the federal agency, the spending should be much higher than that, the newspaper said. The Education Department is auditing another nine pandemic-related programs and plans to publish a report on technology spending in the coming months, the report said.
Some parents misled others about their kids' covid status, study finds - Some parents in the United States were dishonest about their children having the coronavirus or did not follow testing and quarantine guidelines, according to a study published Monday.The parents’ behaviors could have contributed to the spread of the coronavirus, said the study’s authors, who included researchers from U.S. and British universities.The study, though, may not be demographically representative of U.S. parents since people were not chosen through random sampling. Parents were recruited to participate through a panel of volunteer online survey takers. Also, 70 percent of the respondents were women.More than 1.1 million people have died of the coronavirus in the United States, and more than 103 million cases have been reported, according to data tracked by The Washington Post. Globally, there have been more than 6.8 million deaths and 758 million infections because of the coronavirus, according to the World Health Organization.The latest study on pandemic behavior in JAMA Network Open, a peer-reviewed publication, offers some clues about how the virus spread in the United States.The researchers analyzed answers by 580 parents who had children under the age of 18 living with them during the course of the pandemic.The survey was conducted in December 2021.Parents chose not to disclose their child’s covid status most commonly because they said they wanted “to exercise personal freedom as a parent,” the study authors stated. Parents also wanted their children to “resume a normal life.”Some parents were dishonest about their children’s vaccination status to allow them to participate in activities; others said they covered up their children’s covid status so they would not miss school; and still others said they did not tell the truth as they could not afford to miss work themselves, the researchers found.
1 in 4 Parents Lied About Kids’ COVID Status: Survey – More than 1 in 4 parents lied to school officials about their children’s COVID-19 status or refused to comply with public health rules during the height of the pandemic, a new study found. Researchers said they suspected the 26% of parents who misrepresented their children’s health status may have undercounted the actual figure. “If anything, 26% is probably the minimum” of parents who misled school officials, said Angela Fagerlin, PhD, a researcher at the University of Utah Medical School. In the survey, many parents said they considered it their right as parents to make their own decision about their children’s health status, Fagerlin, who is also the chair of the Department of Population Health Sciences at the University of Utah School of Medicine, said. “It appears that many parents were concerned about their children missing school," she said. “At the same time, they’re potentially exposing other kids to a serious illness.” In the survey, parents were asked whether they lied or misrepresented information about their children on seven different COVID-19 topics, including illness and vaccination status and if they followed quarantine protocols. Researchers tallied survey responses collected in December 2021 from 580 parents, whose average age was 36 and of whom 70% were women. Results were published Monday in the journal JAMA Network Open. Overall, 24% of parents said they lied to people that their children were with while knowing or suspecting the children had COVID. About half of parents cited at least one of the following reasons for doing so: parental freedom, child did not feel very sick, or wanted the child’s life to feel “normal.” About 20% of parents said they avoided testing when they thought their child had COVID, and parents also reported allowing children to break quarantine rules at a similar rate. More than half of parents who avoided testing said they were worried testing would hurt or feel uncomfortable. About 4 in 10 parents who lied about their child’s illness status or who lied about whether their child should be in quarantine said they did so because of guidance from a public figure such as a celebrity or politician. At least 3 in 10 said they lied because they could not miss work to stay home with their child. “We need to do a better job of providing support mechanisms like paid sick leave for family illness so that parents don’t feel like their only option is to engage in misrepresentation or non-adherence to public health guidelines during a future infectious disease outbreak that matches or exceeds the magnitude of COVID-19,”
For a snapshot of the culture wars, attend a school board meeting - To attend a Loudoun County School Board meeting, you must pass through a police cordon in the parking lot and a metal detector inside the building. More officers guard the shiny new auditorium and hallway, and bags larger than a sheaf of printer paper are not allowed inside. Nor are containers, voice enhancement devices, large signs, banners, “visual props” or “any item … that may be used as a projectile or weapon.” This wealthy Northern Virginia suburban county has become a culture-war hotspot, and school board meetings, ground zero. Rowdy parent protests against critical race theory have ended in arrests. Last year, a high-profile sexual assault case in the schools was (wrongly) portrayed as a transgender bathroom issue. Yet last Tuesday’s board meeting was business as usual — almost reassuringly so. On the agenda: naming the new middle school, awarding a contract to buy musical instruments, reviewing the effects of school-zone changes, hiring American Sign Language interpreters. Partway through, a high school choir arrived to sing the national anthem.And then came “public comment.” Parents and others exercised by the various controversies showed up to make their voices heard.“Let go of all the far-left politics and release the report,” said one parent, in a shirt that read “Moms for Liberty.”She referred to the school district’s internal assessment of its handling of attention-grabbing sexual assaults in the schools, which the board, at its previous meeting, decided not to make public.“I hope all your political aspirations and careers fail,” hissed another speaker on the same subject, calling board members out by name.I asked others in the room which issue they thought the board most urgently needed to address.Others were more concerned about social media and phone usage turning classrooms into a “dystopia” and about a fentanyl-fueled drug epidemic spilling over into high school restrooms.(Asked to verify that charge, Dan Adams, the school district’s media and communications coordinator said, “Because of our need to protect student and staff confidentiality, we cannot share details about any specific medical emergency.”)Many championed the teaching of Black history and equal opportunity for students and teachers alike. Librarians protested book bans. And one parent stood up to support the board, denouncing the threats of violence some members have received. “This is not what democracy looks like.”
Sexual assault reports increase at US military academies (AP) — Reported sexual assaults at U.S. military academies shot up during the 2021-22 school year, and one in five female students told an anonymous survey that they had experienced unwanted sexual contact, the Pentagon said Friday. The survey results were the highest since the Defense Department began collecting that data. Defense and military leaders said student-reported assaults at the Army, Navy and Air Force academies jumped 18% overall compared with the previous year. Calling the increase “extremely disappointing and upsetting,” defense officials said teams are visiting all three academies this month to try and target improvements and changes to address the problem. The increase was driven largely by the Navy, which had nearly double the number of reported assaults in 2022, compared with 2021. It’s unclear whether the phasing out of COVID-19-related restrictions contributed to the increase, including at the U.S. Naval Academy, which is directly adjacent to bars in downtown Annapolis, Maryland. “The results are, simply put, extremely disappointing,” said Vice Adm. Sean Buck, superintendent of the Naval Academy. “The current situation is unacceptable and we must improve our culture.” A student survey accompanying the report found increases in all types of unwanted sexual contact — from touching to rape — at all the schools. And it cites alcohol as a key factor. The report was released Friday. The military services and the academies have struggled for years to combat sexual assault and harassment, with myriad prevention, education and treatment programs. But despite reams of research, and expanded programs, the numbers continue to grow. Young Army soldiers last month dismissed videos and training as outdated, and told service leaders that small group discussions would be more effective.
Who runs Temple University: A look at the university’s Board of Trustees --For over a month, 750 Temple University graduate teaching assistants and research assistants have been on strike. They are demanding an increase from their average current rate of pay of $19,500 a year to a base wage of $32,800, affordable healthcare for their dependents, improved parental and bereavement leave, and improvements in work assignments and the amount of work. Temple has responded ruthlessly to the strike. On February 8, just over a week into the walkout, the university announced an end to healthcare coverage and tuition waivers (costing about $20,000 on an annual basis) for those on strike. The university also announced that tuition for the Spring semester would be due by March 8 for the strikers. Temple’s graduate and research assistants, whose work is fundamental to the functioning of the university, are engaged not only in a struggle against Temple, but against the Democratic Party, which controls state and local politics, has heavy influence on Temple’s Board of Trustees, and has strong ties with the union which purportedly represents the striking workers. Pennsylvania’s governor is Democrat Josh Shapiro, and the Democrats are the majority party in the Pennsylvania House of Representatives. Philadelphia, where Temple is located, is overwhelmingly dominated by Democrats, from the mayor to a 14-3 majority on the city council. The state has had a Democratic governor for 16 of the last 20 years. State funding for public higher education institutions such as Temple has declined by over 34 percent in the period 2007-2017, the fourth sharpest decline of any state, according to the Center on Budget Policies and Priorities. This has led to the state providing only 10 percent of all funding for Temple in 2019, down from 65 percent in 2011. The university has been forced to offset these declines, delivered by the Democratic Party, by both gouging its students through cuts to education and hikes in tuition and service fee increases, and as the strike has shown, by impoverishing university workers. Temple’s Board of Trustees has a strong Democratic Party presence, along with an assortment of wealthy individuals in banking, finance, communications, insurance and real estate. A few biographies of Board members will suffice to show the close ties of Temple’s leadership with the Democratic Party and the financial elite.
Why Student Loan Debt Relief Is A Worse Idea Than You Think -The U.S. Supreme Court has heard different arguments from supporters and opponents of President Joe Biden’s student debt forgiveness program. It is probable that the justices will rule before June. However, it is important to remember a few challenges.Student loans are an essential tool to help maximize the number of citizens that have access to the best and most exclusive tuition. American universities are among the top in the world and high-quality tuition comes with an elevated cost. To help the disadvantaged access top universities it is important to have a thriving and affordable loan system, a solid grant program and an open market that supports the majority, including those who are not in university yet.We must aim to make the current system better, not maintain it disguising the problem with a deficit-financed subsidy. A student loan debt relief program does nothing to solve the cost of tuition. It justifies it and will likely make fees rise again as universities see that the government subsidizes those that may take a difficult-to-pay loan. Furthermore, by providing a subsidy to the already indebted, banks may have an incentive to give loans to students with less probability to repay them. It is likely to create a wave of non-performing loans predicated on the view that this scheme will be prolonged and even increased. The reader may say that I am exaggerating, which I find interesting when we are living every day the result of debt accumulation excess.A student loan debt relief program is a subsidy to take risky debt. It penalizes those that paid their loans and those that access new tuition, and it incentivizes others who did not take student loans and worked their way through college to take a risky loan. It may sound like a clever idea on paper, but it helps an exceedingly small proportion of citizens while hurting everyone else. Why? Because the loan relief program is paid with higher deficit, which means higher taxes and more inflation now and in the future. There is no revenue measure that finances this scheme because the government already runs a massive deficit. One cannot think of this measure without considering that the Federal budget runs an unsustainable deficit and that there has been no discussion of any budget cuts to finance this program, let alone the structural deficit.Providing a subsidy to students that cannot pay their loans does not help them consume more. First, even if that were the case, the impact on total consumption of those that receive the relief compared to the negative effect for those that suffer higher taxes and persistent inflation does not even move the needle. However, I believe that the impact on consumption even for those benefitted by the program will be limited. It is unlikely that a partial bailout of the debt of a citizen is going to make a complete reversal of that person’s credit score. A partial debt release will make a small impact on one family or citizen, but extraordinarily little to consider this a stimulus for the economy.If the debt relief of students is considered a stimulus for the economy that will boost consumption, why do the same proponents ask for constant increases in taxes for those that can consume and invest?
77 Percent of American Youth Can’t Qualify for Military Service - pdf - Malnutrition, especially malnutrition manifesting as obesity, poses a threat not only to our nation’s health, but to our national security. Nationwide, 77 percent of youth between the ages of 17 and 24 cannot qualify for military service, an increase from 2017’s ineligibility rate of 71 percent. Overweight disqualifies 11 percent of youth from serving if they so choose, and contributes to the 44 percent of youth who are disqualified for multiple reasons.1 Obesity rates for 2- to 19-year-olds increased from 17 percent in 2009–10, to 19 percent in 2017–18.2 During the pandemic, rates of obesity among children in this age group increased even further, from 19 percent in August 2019 to 22 percent in August 2020.3 While such increases are alarming, there are solutions. The Special Supplemental Nutrition Program for Women, Infants and Children (WIC) provides access to healthy foods and nutrition education for women, infants, and children under 5 years old. Participation has been linked to improved dietary quality, and increased fruit and vegetable consumption.4 Older children consume up to half of their daily calories at school, making the National School Lunch Program (NSLP) an important component of good nutrition. The Healthy Hunger-Free Kids Act of 2010 led to updated nutrition standards for the NSLP and improved guidelines for food and drinks available in schools.5 Since these standards were implemented, fruit and vegetable consumption by participating children increased by 16 and 23 percent, respectively.6 Providing opportunities for children to reach the recommended 60 minutes of moderate to vigorous activity at school can also help kids maintain a healthy weight.7
CDC recommends hepatitis B screening for all adults -The US Centers for Disease Control and Prevention (CDC) today recommended universal hepatitis B (HBV) screening for adults, spelling out the details and background behind its decision in the latest issue ofMorbidity and Mortality Weekly Report.The CDC said people with chronic hepatitis B infection are at increased risk for liver cancer and cirrhosis and are 70% to 85% more likely to die prematurely than uninfected people. It said about 580,000 to 2.4 million people have chronic HBV infection, two thirds of whom may not be aware of their infections.Though the HBV vaccine is highly effective, about 70% of adults are unvaccinated. Treatments are available but aren't curative, but they can help reduce morbidity and mortality.The updated screening recommendations call for all adults to be screened with three lab tests at least once during a lifetime. The CDC's recommendations also expand risk-based recommendations to include anyone who has had high-isk exposures, including people who are or were incarcerated, those with previous sexually transmitted disease, those with multiple sexual partners, and those with a history of hepatitis C infection.The CDC said anyone who requests HBV screening should receive it, regardless of risk, because people may be reluctant to reveal risks that carry stigma.
AARP’s Billion-Dollar Bounty -In September, AARP, the giant organization for older Americans, agreed to promote a burgeoning chain of medical clinics called Oak Street Health, which has opened more than 100 primary care outlets in nearly two dozen states.The deal gave Oak Street exclusive rights to use the trusted AARP brand in its marketing — for which the company pays AARP an undisclosed fee.AARP doesn’t detail how this business relationship works or how companies are vetted to determine they are worthy of the group’s coveted seal of approval. But its financial reports to the IRS show that AARP collects a total of about $1 billion annually in these fees. Mostly the fees come from health care-related businesses eager to sell their wares to the group’s nearly 38 million dues-paying members.Paid AARP partnerships comes with a lot. AARP promotes its partners in mailings and on its website. Plus, partners can use the familiar AARP logo for advertisements in magazines, online, or on television. AARP classifies the payments as “royalties.”AARP’s 2020 financial statement, the latest available, reports just over $1 billion in royalties. This is more than three times what it collected in member dues or just over $300 million. Of the royalties, $752 million were from unnamed “health products and services.”Controversy has long dogged these sorts of alliances, which have multiplied over the years, and the latest is no exception. Are the chosen partners actually a good choice for AARP’s members? Or are they buying the endorsement of one of the country’s most respected organizations with lavish payments?Health policy analyst who worked for the group in the 1980s, Marilyn Moon:“I don’t have a problem with AARP endorsing travel packages. But when AARP lobbies on Medicare issues while profiting off partnerships with those who are marketing to Medicare patients, that certainly is a problem. There are reasons for concern about the latest partnership. Less than two months after announcing the AARP deal, Oak Street revealed it was the subject of a Justice Department civil investigation into its marketing tactics. Question arose of whether it violated a federal law that imposes penalties for filing false claims for payment to the government. Oak Street has denied wrongdoing and says it is cooperating with the investigation. Companies like Oak Street, whose funders have included private equity investors, have alarmed progressive Democrats. Some health policy analysts worry the companies may try to squeeze excessive profits from Medicare with the services they market mainly to people 65 or older. Oak Street hopes it can cut costs by keeping patients healthy and in the process turn a profit, though it has yet to show it can do so.
Kids' COVID symptoms—not rates of severe disease—evolved with variants -Fever and cough were more common among Canadian children infected with the SARS-CoV-2 Delta and Omicron variants than the original, wild-type virus and the Alpha variant, but rates of hospitalization and intensive care unit (ICU) admission stayed the same over time, finds a study published yesterday in JAMA Network Open.The Pediatric Emergency Research Canada COVID Study Group assessed symptoms among 1,440 COVID-19 patients younger than 18 years seen at 14 Canadian emergency departments (EDs) from August 4, 2020, to February 22, 2022. Research assistants telephoned patients' caregivers a median of 2 days after their ED visit. Median age was 2.0 years. Whole-genome sequencing was conducted for 26.9% of patients, identifying Alpha (40.7%), Delta (45.6%), and Omicron (11.9%), in addition to one Beta and six Gamma cases; the remainder of the tests were inconclusive.Children with Alpha infections reported the fewest COVID-19 symptoms (195 of 237 [82.3%]), while Omicron patients reported the most (434 of 468 [92.7%]). Relative to the wild-type virus, Omicron and Delta were more strongly tied to fever (odds ratios [ORs], 2.00 and 1.93, respectively) and cough (ORs, 1.42 and 1.57).Upper respiratory tract symptoms were most common with Delta (OR, 1.96), while lower respiratory tract and systemic symptoms were tied to Omicron (ORs, 1.42 and 1.77, respectively).Compared with Delta patients, Omicron patients were more likely to undergo chest radiography (difference, 9.7%), receive intravenous fluids (difference, 5.6%) or corticosteroids (difference, 7.9%), and return to the ED (difference, 8.8%). The proportions of patients hospitalized or admitted to an ICU did not differ among variants. Patients with Delta infections were most often also infected with other respiratory viruses (40.0%). Of the 69.3% of parents asked about their child's COVID-19 vaccination status, 8.0% said they had received at least one dose, 81.8% were unvaccinated, and 10.2% were unsure."Although the characteristics of presenting symptoms changed as the SARS-CoV-2 virus evolved, unlike in adults where mortality declined in subsequent waves, the proportions of infected children experiencing undesirable outcomes in our study remained stable," the authors wrote.
Are some immune to Covid? Science is trying to unravel immunity to the virus - Three years into the pandemic, a select group of people have achieved something some once thought impossible: They have never tested positive for Covid. Scientists around the world are searching for the genetic reasons these people have dodged Covid — despite repeated exposure to the virus.Were they born with a form of super immunity? What's behind their Houdini-like success at escaping infection?"Mostly luck," said Adam Zimmerman, 40, of Rockville, Maryland, laughing. Neither Zimmerman nor his wife and children have tested positive for Covid. "We took whatever mitigation steps we could and then hoped for the best," Zimmerman said, noting that his family is up to date with their vaccines. "So far, so good."Since March 11, 2020, more than676 million people around the world have had a confirmed infection. Nearly 60 percent of the U.S. population has had Covid, according to the Centers for Disease Control and Prevention. There could be millions more missed cases because the individuals never had symptoms.Even though millions of people have been vaccinated and followed precautions similar to the Zimmermans, they still got sick from Covid, either because of breakthrough infections or waning immunity.Yet scientists believe it is possible that some people have never been infected because they entered the pandemic equipped with a kind of biological armor against the virus that causes Covid. Now they want to unravel the mysteries hidden in the immune systems of true "Covid dodgers.""We are searching for rare genetic variants that make people resistant to SARS-CoV-2 infection," said Dr. Jean-Laurant Casanova, a pediatric immunologist, geneticist and professor at Rockefeller University in New York. "If we were to discover them, the impact would be significant."
- In a rare and strong bipartisan vote today, the US House of Representatives voted to declassify US intelligence information about the origins of SARS-CoV-2, the Associated Press and other media outlets reported. The Senate has passed a similar measure, which will now go to Biden's desk for a signature. Two US agencies have concluded that a lab leak was the likely source of the virus in China, the US Department of Energy with low confidence and the Federal Bureau of Investigation with moderate confidence. Other US intelligence agencies, however, have not changed their assessment—also with low confidence— that the source was natural, involving a jump from animals to humans. Last week the World Health Organization pressed China on the origins and also urged countries to share what they know to help nations avoid future pandemics. Scientists have published extensive studies that support a natural source that came from a live-animal market in Wuhan, China, but so far, it's not clear what other information US officials have that would support the lab-leak scenario.
- The Cochrane Library today issued a statement clarifying its recent review on mask and respirator use in households and healthcare settings, which some people have used to suggest that the measure isn't useful for preventing the spread of COVID-19. In a statement, the group said characterization of the findings is misleading, that the review was inconclusive, and that the primary evidence wasn't able to address whether the intervention itself reduces a person's risk of contracting or spreading the virus.
- In updated Omicron variant proportion estimates today, the US Centers for Disease Control and Prevention (CDC) said XBB.1.5 makes up nearly 90% of cases, up from 87% the week before. The virus makes up about 80% or more of cases in all US regions. The CDC also added another subvariant to its proportion tracking, XBB.1.5.1, which makes up an estimated 1.6% of cases.
Multiple COVID variants found in New York rats: study -- Three different coronavirus variants were discovered in New York City’s rat population, according to a new study. A release from EurekAlert on Thursday states that rats were found to be infected with the alpha, delta and omicron COVID-19 variants. Henry Wan, the principal investigator for the study and the director of the Center for Influenza and Emerging Infectious Diseases at the University of Missouri, said in the statement that the finds demonstrate why additional monitoring of COVID-19 in rat populations is necessary to keep track of a possible secondary spreading of the virus from animals to humans. “Overall, our work in this space shows that animals can play a role in pandemics that impact humans, and it’s important that we continue to increase our understanding so we can protect both human and animal health,” Wan said. The release states New York City has about 8 million rats, which also widespread across other urban areas in the United States. It notes that two previous studies indicated that rats had been exposed to the virus, but which variants they interacted with had been unknown. Tom DeLiberto, the SARS-CoV-2 coordinator for the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) Wildlife Services and a coauthor of the study, said the USDA and APHIS sampled rats in New York in fall 2021 to look for evidence of infections. He said they engaged in two efforts to trap the rats in September and November in and near local wastewater systems.
COVID Numbers NYC: Millions of Rats Infected, May Fuel New Variants, Study Finds – The rodent population scouring New York City, already public enemy no. 1, poses a new threat as researchers reveal that millions of wild rats could be carrying the virus that causes COVID-19.New research out Thursday again raises the question of possible animal-to-human transmission in one of the Big Apple's largest population groups: rats. Already, prior research has shown the virus can live in household pets, big cat zoo animals and wild deer.The team of rat trappers who published research in the American Academy of Microbiology's journal mBio found the wild rodents susceptible to the virus, and through further lab study determined they can catch several of its variants.“To the best of our knowledge, this is one of the first studies to show SARS-CoV-2 variants can cause infections in the wild rat populations in a major U.S. urban area,” Dr. Henry Wan, of the University of Missouri, said.The team behind the research captured 79 rats in the fall of 2021, mostly in Brooklyn parks. Samples from the rodent groups were tested and 13 (16.5%) came back positive, the study found. Expanding the animals' positivity rate outward to the study's estimated citywide rat population (8 million), it can be speculated that some 1.3 million rats might show an immune response to COVID-19.Being the robust rodents they are, rats given the virus inside a lab environment did not show any extreme reactions to SARS-CoV-2. Despite high levels of viral RNA within the animals' noses and lungs, none experienced weight loss or other significant reactions.Of the three variants, Alpha, Delta and Omicron, rats appeared susceptible to all three, the researchers found through the additional "virus challenge study." However, Delta replicates "more efficiently" than the other two in rats.A review of the data by The Los Angeles Times takes the implications a step further, saying the findings suggest that not only could rats be a source of reinfection for people, but they could also become a source of new variants that could pose problems for humans down the road, potentially.
Even mildly ill COVID-19 patients report chest pain at 6 months, 1 year - An unpublished study involving nearly 150,000 COVID-19 survivors who had mild infections in Salt Lake City suggests that many still had chest pain 6 months and 1 year later.The research was presented yesterday at the American College of Cardiology's Scientific Conference in New Orleans.Intermountain Health researchers compared three groups of 148,158 people each, including COVID-19 patients treated in an outpatient setting from March 2020 to December 2021, a control group of matched patients seen for other indications during the same period, and a historical control group seen from January 2018 to August 2019.While the COVID-19 patients had significantly higher rates of chest pain than the other groups, they didn't have higher rates of other cardiovascular events. "While we didn't see any significant rates of major events like heart attack or stroke in patients who had an initial mild initial infection, we did find chest pains to be a persistent problem, which could be a sign of future cardiovascular complications," principal investigator Heidi May, PhD, said in an Intermountain Healthcare news release. "It could be that lasting effects of infection on the cardiovascular system are hard to quantify in terms of diagnoses or other events in the short-term and won’t be realized until longer follow up."
COVID-19 survivors may be at higher risk of gastrointestinal disorders at 1 year -- A study of more than 11.6 million people published today in Nature Communications suggests that COVID-19 survivors are at increased risk for a range of gastrointestinal disorders at 1 year.Researchers from the Veterans Affairs Saint Louis Health Care System used their national healthcare database to compare the gastrointestinal outcomes of 154,068 COVID-19 survivors with those of 5,638,795 contemporary uninfected controls and 5,859,621 prepandemic controls.At 1 year postinfection, COVID-19 patients were more likely than controls to have gastroesophageal reflux disease (hazard ratio [HR], 1.35; burden, 15.50 per 1,000 people), peptic ulcer disease (HR, 1.62; burden, 1.57), pancreatitis (HR, 1.46; burden, 0.6), functional dyspepsia (HR, 1.36; burden, 0.63), gastritis (HR, 1.47; burden, 0.47), irritable bowel syndrome (HR, 1.54; burden, 0.44), and cholangitis (HR, 2.02; burden, 0.22). The respective risk and burden of a composite of any diagnosis were 1.37 and 17.37.Signs and symptoms were constipation, abdominal pain, diarrhea, vomiting, and bloating. The risk and burden of a composite of all signs and symptoms were 1.54 and 24.02, respectively.Compared with the contemporary control group, the risk of having any gastrointestinal outcome was elevated among COVID-19 patients (HR, 1.36; burden, 62.34), regardless of age, sex, race, and underlying medical conditions. The risks were also heightened relative to historical controls, and a comparative analysis suggested that hospitalized COVID-19 patients were at increased risk of severe gastrointestinal symptoms relative to those hospitalized with flu. While nonhospitalized patients were also at elevated risk, the likelihood of gastrointestinal disorders gradually rose along with COVID-19 severity, with the greatest risk among those who were hospitalized or admitted to an intensive care unit."Although the absolute burdens (expressed per 1000 persons at 1-year) may appear small, because of the large number of people with SARS-CoV-2 infection, these rates may translate into large number of affected people," the authors wrote. "This will have ramifications not only for the personal health of affected individuals, but also on health systems."
Omicron less likely than wild-type virus to result in long COVID, study suggests -Swiss researchers find that the SARS-CoV-2 Omicron variant is much less likely to lead to long COVID than the original, wild-type virus.The research, to be presented at next month's European Congress of Clinical Microbiology & Infectious Diseases (ECCMID) in Copenhagen, Denmark, and not peer-reviewed, found that healthcare workers (HCWs) first infected with Omicron BA.1 were no more likely to have long COVID than their never-infected peers.The team evaluated the trajectory of long-COVID symptoms in 1,201 previously infected and uninfected HCWs from nine Swiss healthcare networks in March 2021 (Q1), September 2021 (Q2), and June 2022 (Q3).Participants were regularly tested for COVID-19 and completed symptom questionnaires; uninfected (control) participants were identified through detection of SARS-CoV-2 antibodies. Median participant age was 43 years, and 81% were women. Median follow-up was 18 months.The 157 HCWs infected with the wild-type virus were 67% more likely than uninfected participants to report persistent symptoms, falling to 37% in Q3. The most common symptoms were loss of smell or taste, tiredness/weakness, burnout/exhaustion, and hair lossA similar pattern was seen in Fatigue Severity Scale (FSS) scores among wild-type–infected HCWs, with a 45% higher risk of fatigue in Q1, declining to 11% in Q3. After wild-type infection, neither Omicron infection nor vaccination affected the outcomes. Rates of long COVID among the 429 HCWs with Omicron infections were the same as those of controls for symptoms and 8% higher for FSS. The reason for the similar rates is unknown, lead author Carol Strahm, MD, of Cantonal Hospital St. Gallen, said in an ECCMID news release.
Study finds people suffering from Long COVID have significantly higher rates of cardiovascular events and excess deaths -- As the Biden administration attempts to rapidly draw the curtains on the COVID pandemic, a critical study published last week in the Journal of the American Medical Association has only offered further confirmation that infection with SARS-CoV-2, the virus that causes COVID-19, has dire long-term implications. The study in JAMA Health Forum conducted by Dr. Andrea DeVries and colleagues from Elevance Health, Inc. Indianapolis, Indiana, utilizing a large commercial insurance database, found that people who developed the post-acute phase of COVID-19 (Long COVID) suffered increased risk of “cardiovascular events and excess all-cause mortality.” To conduct their study, the authors compared and contrasted two groups. One comprised 13,435 individuals who had experienced post-COVID conditions and the other 26,870 without evidence of COVID-19. Additional analyses were performed on a subgroup of persons who had experienced Long COVID after severe acute infections that required them to be hospitalized within a month of their infection.What is significant about their study is how well its subjects matched the US population, allowing one to generalize its findings to the US population.In the latest study, all adult age groups (mean age of 50) are well represented from every region of the country. Women account for 58 percent of the study population. The largest age-group is represented by those who are 45 to 64 years-old, comprising nearly 52 percent. More than 40 percent were in the lower socioeconomic indices and over half the subjects had two or more health co-morbidities. Also, approximately 27 percent of those with post-COVID syndrome had been hospitalized after their infection.The findings were staggering. Among those with Long COVID one month after their infection up to twelve months from first testing positive, rates of cardiac arrhythmias were 2.35-fold higher. Pulmonary embolism, which is a blood clot that travels to the lungs, occurred in eight percent of the Long COVID patients, a rate that was 3.64 times higher than purportedly non-infected individuals. Ischemic strokes occurred at nearly twice the rate, affecting almost 4 percent. Coronary artery disease affected 17 percent of the Long COVID group, nearly twice the rate. Rates of heart failure, chronic obstructive pulmonary disease, and asthma had all doubled.Beside the morbidity associated with Long COVID and higher utilization of medical care, there was a pronounced jump in mortality associated with COVID 30 days after the acute phase of infection, with the curves diverging more slowly after day 90 from first infection. One year later, among the Long COVID group, 2.8 percent had died, compared to 1.2 percent in the non-COVID group. This translates to an excess death rate of 16.4 per 1,000 or a rate, more than 2.3 times higher than those that remained uninfected.The authors note in their summary, “Results from this study [indicate] a statistically significant increased risk for a range of cardiovascular conditions as well as mortality. While these risks were heightened for individuals who experienced a more severe acute episode of COVID-19, it is essential to note that most individuals (72.5 percent) in the cohort did not experience hospitalization during the acute phase. Many of these conditions will have lasting effects on quality of life.”
The most important lesson not learned from COVID -Three years after the World Health Organization declared the COVID-19 pandemic, we have widespread population immunity against the virus. But no one is immune to the absence of adequate preventative care, a glaring shortcoming that COVID put into stark relief. Health care institutions, policymakers, and even patients have learned the wrong lessons: that health is about damage control, not prevention.The pandemic laid bare the importance of healthier lifestyles and the relevance of mental health to physical health. Skyrocketing rates of depression, alcohol and drug overuse, and death by overdose should have alerted us that we need a holistic approach to health care. What COVID should have taught us is that health includes mental and physical wellbeing; it is about more than test results, and it is a lifelong process — not a pitstop or PCR test. Instead, the private sector is rolling out mental health apps and Zoom therapy. The medical establishment now classifies obesity as a disease, an ICD-10 code to treat with Ozempic, never mind that in the past 40 years, the U.S. obesity rate has gone from 15 percent in 1980 to 41.9 percent in 2020. The wellness industry continues to brandish anti-aging and weight loss products and services, profiting off modern medicine’s failure to meet the moment.When I review these individual struggles and wrong turns, I realize that perhaps the most troubling lesson lost from our three-year COVID struggle is the failure to re-value primary care and its importance for all Americans.
What's your current risk of getting long Covid? Perhaps 5%-10% -It's a question few people know how to answer, even after three pandemic years and more than 100 million Covid cases in the U.S.: When someone gets infected today, what is their risk of developing long Covid?"Even the medical community is unclear on all of this. The data is just emerging so rapidly and the estimates are varied," said Dr. Rainu Kaushal, chair of the department of population health sciences at Weill Cornell Medicine.In the absence of definitive data on long Covid risk, seven researchers investigating the condition's prevalence in the U.S. offered NBC News their best guesses. Most said it's fair to assume that the current risk for vaccinated people is 10% or less, and some thought the odds were smaller — 5% or lower.Even reinfections bring a risk of long Covid, they added."You may get long Covid the second time around, the third time around. That reinfection is absolutely consequential, and you’re pretty much doing Russian roulette again," said Dr. Ziyad Al-Aly, chief of research and development at the Veterans Affairs St. Louis Health Care System and a clinical epidemiologist at Washington University in St. Louis.Since the start of the pandemic, nearly 38 million adults in the U.S. have reported post-Covid symptoms that lasted three months or longer, according to an NBC News analysis of data from a household surveyconducted by the Census Bureau. The survey results showed that as of February, around 11% of adults who'd ever had Covid were experiencing long Covid.Those figures lump vaccinated and unvaccinated cases together, though the risk profiles differ: The researchers interviewed estimated that for unvaccinated people, the risk of long Covid is around 15% to 20%.The U.S. is still recording more than 225,000 new Covid cases each week, according to the Centers for Disease Control and Prevention, so long Covid is an ever-present threat."Out of 100 people you see, 95 or 96 people are going to be just fine. But you could be one of those unlucky four, and I personally don’t want to take my chances," Al-Aly said. Long Covid is most often defined as symptoms lasting at least three months after a coronavirus infection, though the symptoms are wide-ranging and vary in severity and duration. Many patients reportfatigue, brain fog, shortness of breath, heart palpitations, and muscle, joint or chest pain.Overall, the rate of long Covid has been decreasing since the Census Bureau started including questions about it in its household survey in June 2022. At that time, 19% of respondents who'd had Covid reported current symptoms that had lasted three months or longer.But Sharon Saydah, a senior epidemiologist at the CDC who leads the agency’s post-Covid conditions team, said the survey is "not a good way to judge individual risk," given that it includes new long Covid cases and those that have lasted since earlier in the pandemic.Experts offered a few likely explanations for the downward trend in long Covid cases: the uptake of vaccines and treatment, and the nature of the omicron variant.A spate of studies have shown that even getting a single Covid shot decreases a person’s chances of long-term symptoms, and that the riskdeclines further with each additional shot. The antiviral Paxlovid also seems to lower the odds of long Covid, according to a study that’s awaiting peer review."We now have more things that can help reduce your risk," said Dr. Michael Gottlieb, an emergency medicine physician and researcher at Rush University Medical Center.Studies have also shown a decline in long Covid rates after the rise of the omicron variant, though researchers disagree as to whether the variant itself is associated with fewer long-term health issues than its predecessors."The existing data does suggest that the risk of long Covid in the post-omicron era may be less, but it's confounded by the rise in vaccination rates occurring essentially over the same time period," said Dr. Stuart Katz, a principal investigator with the National Institutes of Health's RECOVER initiative, which is studying the long-term effects of Covid.Factors that influence a person's risk of long Covid include their age, sex, health history and the severity of their illness. According to areview in the journal Nature, women and people with Type 2 diabetes or ADHD may have an elevated risk.Kaushal said she is seeing persistent heart and kidney problems in older men who had severe Covid, as well as sleep disorders and shortness of breath in younger women.
New WHO Chief Scientist Made Crucial Change To Paper Claiming COVID-19 Didn't Come From Lab -- The World Health Organization’s new chief scientist made a crucial change to an influential 2020 paper that claimed it was “improbable” that COVID-19 came from a laboratory, a newly disclosed email shows.Jeremy Farrar, the chief scientist, was credited in one message with helping guide the paper about the origin of COVID-19, according to one email released by the U.S. House select subcommittee on the coronavirus pandemic on March 5.“Thanks for shepherding this paper. Rumors of bioweaponeering are now circulating in China,” Dr. Ian Lipkin, a Columbia University professor, wrote to Farrar in the message.“Yes I know and in US – why so keen to get out ASAP. I will push nature,” Farrar responded.In the early 2020 paper, Lipkin and four co-authors claimed: “It is improbable that SARS-CoV-2 emerged through laboratory manipulation of a related SARS-CoV-like coronavirus.”SARS-CoV-2 is the virus that causes COVID-19.A draft of the manuscript, published by Nature, included a different word, the House panel found.“Sorry to micro-manage/microedit! But would you be willing to change one sentence?” Farrar wrote to Kristian Andersen, who co-authored the paper, in an email just one day before publication.Farrar asked to insert “improbable” in place of “unlikely,” the email showed.“Sure,” Andersen responded.The paper also stated that “SARS-CoV-2 is not a laboratory construct” and that the authors “do not believe that any type of laboratory-based scenario is plausible.”“This evidence suggests that Dr. Farrar was more involved in the drafting and publication of Proximal Origin than previously known and possibly should have been credited or acknowledged for this involvement,” the panel said.
What's going on in China? Flu outbreak ushers Covid-like lockdowns as cases rise | World News - Hindustan Times -An influenza outbreak in China has picked up intensity over the past week as the northwestern city of Xi’an imposed a pandemic-style lockdowns to curb the surge in infections, Bloomberg reported. The positivity rate for flu jumped to 41.6% this week from 25.1% the previous week, the Chinese Center for Disease Control and Prevention said, as per Bloomberg while the Covid positivity rate was down to 3.8% from 5.1%.The city of Xi’an said that it would employ measures similar to those used to curb Covid-19 which would include school and business closures included in the response. Xi’an has a population of nearly 13 million residents who were locked down for a month in 2021 because of Covid. The positivity rate has increased for six consecutive weeks, according to government data.But the authorities were criticised for choosing to impose lockdowns to curb the influence outbreak, CNN reported. The popular tourist destination which is located in Shaanxi province imposed an emergency response plan that would allow it to close down businesses, schools, and "other crowded locations".CNN reported that on China's version of Twitter- Weibo- residents argued that it would be better to vaccinate rather than initiate lockdowns.“How would people not panic considering that Xi'an's suggestion to halt business and work activities was issued without specific guidance on the national level to identify the disease?,” a user asked.This also comes amid reports that many pharmacies in China are finding it difficult to keep up with the demand for flu medications.
'Zombie' drug of horse tranquilizer-laced fentanyl ravages US and alarms health officials -- - Public health officials are fighting a losing battle to save the lives of people who overdose from a new and extremely lethal drug concoction that puts users in a zombielike state of consciousness.As fentanyl-related deaths in the United States reached an all-time high last year, and the Biden administration has vowed drastic actions to quell the latest iteration of the opioid epidemic, an even more harmful drug combination is spreading across the country.Fentanyl laced with the horse tranquilizer xylazine threatens to upend U.S. government efforts to stomp out the opioid epidemic because it will not succumb to emergency overdose medicine Narcan."We need to take it very seriously," said Dr. Nora Volkow, director of the National Institute on Drug Abuse at the National Institutes of Health, during an interview with the Washington Examiner. "The more we find these drug combinations, the more challenging it is clinically on the one hand to reverse overdoses, to treat the opioid use disorder, and also to treat all the complications that are emerging."The lethal drug combination, which Volkow calls a "tsunami reaction," is spreading like wildfire across states unbeknownst to many drug users and cannot be detected by the public through individual test strips, according to Dr. Susan Sherman, a professor at Johns Hopkins University who studies Baltimore residents who use fentanyl.Fatal overdoses from xylazine-laced fentanyl have been reported in Washington, D.C., and 36 states. According to NIDA research, Pennsylvania has seen the highest increase in overdose deaths involving xylazine, jumping from 2% of all drug overdose deaths to 26% over the past five years. That's compared to 19% of all drug overdose deaths in Maryland and 10% in Connecticut.The Drug Enforcement Administration sent out an intelligence report warning about the rise in overdose deaths connected to xylazine. The Northeast region of the U.S. had the most xylazine overdose deaths over the two-year period of 2020 and 2021, followed by the South. The October report warned use will likely increase and "be commonly encountered in the illicit fentanyl supply."
How sugar substitutes sneak into foods and affect your health - Washington Post - Many people are cutting back on their sugar intake for health reasons. But the food industry has found another way to give consumers their sweet fix. It is quietly replacing the sugar in many packaged foods with sucralose, stevia, allulose, erythritol and a wide variety of other artificial sweeteners and sugar substitutes. Low- and zero-calorie sweeteners have been used in diet soft drinks for decades. But now food companies are adding them to a growing number of packaged foods, including many that might surprise you! These include bread, yogurt, oatmeal, muffins, canned soups, salad dressings, condiments and snack bars. The number of food products containing low- or no-calorie sugar substitutes has surged in the past five years, according to an analysis by Mintel, the market research firm. The food industry says sugar substitutes help people manage their weight and reduce intake of added sugars. But studies suggest that fake sugars can also have unexpected effects on your gut and metabolic health and even promote food cravings and insulin resistance, a precursor to Type 2 diabetes. Table sugar, or sucrose, is still the dominant sweetener in the food supply, and eating a lot of ultra-processed foods with added sugar has been linked to chronic illness and obesity. The number of new food products containing sucrose has fallen by 16 percent in the last five years. Use of high-fructose corn syrup and agave syrup also have declined. “These low-calorie sweeteners are ubiquitous in the food supply, and so people often aren’t even aware that they’re consuming them,” said Allison Sylvetsky, an associate professor in the department of exercise and nutrition sciences at George Washington University. Many sugar substitutes are known as high-intensity sweeteners because they’re often hundreds of times sweeter than table sugar. Some are synthetic, like sucralose, aspartame, and saccharin, while others, like allulose, stevia and monk fruit extract, are referred to as “natural” because they’re derived from plants.Sugar substitutes can be found in ingredient lists on food packages, often with names that many consumers don’t recognize, like adventame, neotame and acesulfame potassium. Foods that claim “no artificial sweeteners” often are sweetened with stevia and other so-called “natural” sugar substitutes.A variety of these sweeteners are turning up in cereals, juices and other packaged foods marketed to kids — even though public health groupshave discouraged their use among children.Sucralose and acesulfame potassium are regularly used in Greek yogurts, tortilla wraps and other foods served in school meals. Schools in some states have experimented with serving chocolate milk sweetened with a blend of sugar and monk fruit extract.Scientists used to think that non-nutritive sweeteners were largely inert, activating sweet receptors on our tongues and passing through our bodies without causing metabolic changes. But questions remain about the health effects of consuming large amounts of these ingredients.The World Health Organization cautioned people to limit their intake of sugar substitutes because of their potential for “undesirable” long-term effects, including detrimental effects on gut and metabolic health.But one rigorous study led by Suez and carried out at the Weizmann Institute of Science in Israel last year looked at what happened when people were given aspartame, saccharin, stevia, or sucralose in amounts well below the FDA’s daily allowances. The study found that these sweeteners caused changes in both the function and composition of the participants’ gut microbiomes, the communities of bacteria, viruses and fungi that live in the intestines.
PAHO warns of rising chikungunya cases in the Americas, some fatal --The Pan American Health Organization (PAHO) today sounded another alarm about chikungunya activity in South America, with the mosquito-borne virus expanding to new areas with an unusually high number of cases and deaths.In an epidemiologic alert yesterday and a new risk assessmenttoday, PAHO said the outbreak is complicated by COVID-related supply problems depleting stocks needed to battle mosquitoes that spread the virus and by overstretched healthcare systems that are juggling other health threats, such as COVID-19 and mpox.In February, PAHO warned of an intensifying chikungunya outbreak, following brisk activity in 2022. Earlier this month, the US Centers for Disease Control and Prevention (CDC) issued a Health Alert Network advisory to clinicians, warning that US travelers may be affected by a worsening outbreak in Paraguay.The virus is transmitted primarily by infected Aedes aegypti andAedes albopictus mosquitoes. Infections are typically mild, consisting of fever and joint pain. However, PAHO said older people, babies, and people with underlying conditions can experience severe complications, which can be fatal.The group warned that many people in the Americas may be vulnerable to chikungunya, given that the region's last major outbreak occurred in 2014. Infection with the virus is thought to confer lifelong immunity.During the first 8 weeks of this year, the region reported nearly 115,539 cases in 14 countries, 33 of the illnesses fatal, with Paraguay and Brazil among the hardest-hit countries.In Paraguay, cases have been reported from 18 of the country's regions, with the most from Central and Asuncion departments. An unusual feature of the outbreak is the number of infections reported in newborns, with 132 reported so far, 4 of them fatal. Also, 219 suspected cases of meningoencephalitis were reported, 38 of them in newborns, which PAHO said may be related to chikungunya and would be an uncommon presentation of the disease.Paraguay's first chikungunya outbreaks in 2015 and 2016 involved the Asian genotype, but the East/Central/South Africa genotype is now circulating.At a briefing today on COVID-19 and other health issues, Marcos Espinal, MD, DrPH, PAHO's acting assistant director, said there are three chikungunya genotypes, and so far health officials haven't seen many differences in the clinical profiles. He said there could be some cocirculation of genotypes in South American countries, but so far, scientists haven't confirmed any link between genotype cocirculation and more severe disease.
Five countries report more vaccine-derived polio cases - In its weekly update yesterday, the Global Polio Eradication Initiative (GPEI) reported more polio cases from five countries, four in Africa and one in Israel that was previously reported by the country's health officials.In Africa, Chad reported one circulating vaccine-derived poliovirus type 2 (cVDPV2) case in Salamat, which is included with its 2022 total that is now at 44 cases. The Democratic Republic of the Congo reported 17 cases from six provinces, bringing its 2022 total to 312. It also reported 10 more circulating vaccine-derived poliovirus type 1 (cVDPV1) cases, boosting its 2022 total to 115.Madagascar reported 5 more cVDPV1 cases, the first such cases of 2023. In 2022, it reported 14 cases. Nigeria reported 1 more cVDPV2 case, in Lagos, raising its 2022 total to 48.The GPEI also reported the case from Israel, the earlier-reported patient from North province, marking its first case of 2023. The investigation has turned up three positive cases in the patient's asymptomatic contacts.
US reports new H5N1 avian flu detections in mammals -The US Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) added 10 more H5N1 avian flu detections in mammals to itsrunning list, which adds reports from four states and includes five different species.Seven of the detections were in Colorado, where the virus was found in three mountain lions, a bobcat, two red fox, and a black bear.Kansas and Oregon both reported detections in striped skunks, and North Carolina reported a detection in a black bear.The new H5N1-positive samples bring the number of known US detections in mammals to 131.Health officials are closely monitoring continuing reports of H5N1 spillovers to mammals, which have been reported from the Americas and Europe. The Eurasian H5N1 clade currently hitting birds and poultry in multiple world regions has a mutation that makes it more recognizable to mammal airway cells, including humans.Human infections have been rare and have occurred in people who had close contact with poultry. Of the handful of cases that have been reported, some were severe or fatal, with others thought to represent environmental contamination rather than true infections.
China reports new H5N6 and H9N2 avian flu cases --Hong Kong's Centre for Health Protection (CHP) said today that China has reported another H5N6 avian flu case, which involves a 49-year-old man from Guangdong province whose symptoms began on Dec 17, 2022, after contact with live poultry. On Dec 21 the man was hospitalized, and he is now in serious condition. H5N6 infections are often severe or fatal. Since 2014, China has reported 83 H5N6 cases. The virus is known to circulate in poultry in some Asian countries, but so far only China and Laos have reported human cases. Also, China reported two more H9N2 avian flu cases, according to the CHP's monthly avian flu report. The patients are a 6-year-old girl from Sichuan province who got sick on Oct 23, 2022, and a 9-month-old girl whose symptoms began on Nov 15, 2022. H9N2 is also known to circulate in poultry in a number of Asian countries, but most human cases have been reported in China. Illnesses are usually mild and affect children. In other avian flu developments, Cambodian officials said the daughter and father who were recently infected with H5N1 were both exposed to village poultry and that there is no sign of human-to-human transmission, according to the Associated Press.The story said the father had few symptoms and has been released from the hospital after testing negative three times. His 11-year-old daughter had a severe infection and died from her illness.
France reports H5N1 avian flu in foxes; more poultry hit in South America -Veterinary officials in France reported H5N1 avian flu in samples from red foxes, part of ongoing detections in mammals, and two South American countries that recently reported H5N1 in wild birds for the first time reported their first virus findings in poultry.In a notification to the World Organization for Animal Health (WOAH) yesterday, French officials said the virus was found in sample from a fox, one of three found dead on Feb 10 in a nature reserve near the city of Meaux, about 35 miles northeast of Paris. The dead foxes were found near dead gulls.The virus found in the fox belongs to the 2.3.4.4b H5N1 clade that is circulating in wild birds and poultry—with occasional mammal detections—across multiple continents. Health officials are closely watching the developments in mammals, because the virus appears to have mutations that may make it more recognizable to mammalian airway cells. A few human infections have been reported involving the clade, all in people who had close contact with poultry.Other countries in Europe have reported H5N1 detections in mammals, including the United Kingdom and Spain, which reported an outbreak involving the virus on a mink farm.Argentina and Uruguay were among the South American countries to report their first H5N1 detections in wild birds in February, and now the two countries have reported highly pathogenic H5 in poultry, according to notifications from WOAH.Argentina reported two outbreaks in commercial poultry, one at a breeder farm in Bueno Aires province in the east housing 17,000 birds and another at a broiler chicken farm in Rio Negro province in the north that has 190,000 birds, according to the WOAH report.Elsewhere, Uruguay reported an H5 outbreak in backyard birds of different species in Tacuarembo department in the north-central part of the country, including hens, guinea fowl, and ducks, according to aseparate report from WOAH. Of 195 birds at the location, the virus killed 94.In US developments, federal officials reported more H5N1 outbreaks in three states, including Pennsylvania, where the virus struck commercial farms in four counties.In its latest updates, the US Department of Agriculture Animal and Plant Health Inspection Service (APHIS) said the outbreaks in Pennsylvania include two commercial turkey farms and a duck breeding farm. Affected counties include Bucks, Chester, Lancaster, and Northumberland.Meanwhile, Idaho and Nevada reported smaller outbreaks, presumably in backyard flocks.The outbreaks lift the nation's poultry losses to nearly 58.6 million birds across 47 states.
Quick takes: H5N1 avian flu in sea otter, other mammals; US, UK mull poultry vaccination | CIDRAP
- The United States has reported six more H5N1 avian flu detections in mammal species, according to anotification from the World Organization for Animal Health (WOAH). Most involve animals found dead, except for a raccoon from Montana with neurologic symptoms that was euthanized. Other detections include three mountain lions, two from Wyoming and one from Colorado, a bobcat in Colorado, and a river otter in Wisconsin.
- Chile has reported another H5N1 detection in a mammal, this time in a sea otter, according to a government report translated and posted by Avian Flu Diary, an infectious disease news blog. In February, Chile reported its first detection of the virus in a mammal, a sea lion.
- In the wake of record poultry losses from H5N1, the Biden administration is considering a vaccination campaign for poultry, according to the New York Times. The report said the US Department of Agriculture is testing vaccine candidates and has launched discussions with poultry industry executives about a possible vaccine campaign. Also, the UK Department for Food, Environment, and Rural Affairs said in ablog post that it is exploring the possibility of poultry vaccination but hasn't changed its policies, which currently ban vaccine use in poultry and other captive birds. Some countries, such as China, allow poultry vaccination, but other nations prohibit the practice because of several issues, such as the risk that vaccinated birds without clinical signs could continue to spread the virus.
CWD confirmed in white-tailed deer in Manitoba, new Mississippi county -For the first time, chronic wasting disease (CWD) has been detected in white-tailed deer in Manitoba—previous detections were in mule deer—and the disease has spread to another county in Mississippi.In a news release this week, Manitoba Natural Resources and Northern Development (MNRND) reported 2 CWD cases in white-tailed deer, along with 11 new detections in mule deer. The agency said that, since 2021, officials have confirmed 18 CWD infections in mule deer and 2 in white-tailed deer.This week's update didn't specify the number of new cases in mule deer, but a December 15, 2022, MNRNDnews release said 7 cases were confirmed at that point, all near the Manitoba-Saskatchewan border. Some of the new cases were in deer located a bit farther eastin Manitoba. More positive tests could be revealed in the coming weeks, as officials said wait times for tests are around 16 to 20 weeks, CTV News reported.CWD is a highly contagious, fatal disease that affects members of the deer family (cervids), such as deer, elk, moose, and caribou. Animals infected with CWD may appear healthy until late in the disease progression. Though CWD is not known to infect humans yet, public health officials recommend that people not eat meat from a CWD-infected animal."If the disease spreads and becomes endemic to Manitoba, there is a serious risk that CWD will threaten the health of all cervid populations in the province," MNRND said.The Mississippi Department of Wildlife, Fisheries, and Parks (MDWFP) on March 3 confirmed CWD for the first time in Tunica County in the northwestern corner of the state.The sample was from a hunter-harvested doe, but the MDWFP didn't say when the deer died. Testing by the Wisconsin Veterinary Diagnostic Laboratory confirmed CWD. Since 2018, 206 CWD-positive white-tailed deer have been detected in 10 Mississippi counties.
U.S. judge: California can't ban alligator imports, sales (AP) — California cannot ban the importation and sale of crocodile and alligator products, a federal judge has ruled, in a victory for the state of Louisiana, which challenged the ban along with businesses in multiple states. Mueller wrote that the California law illegally ran afoul of federal law, and she rejected arguments that California was only seeking to regulate activity within the state Federal law controls trade in those products and preempts California from barring trade in them, Chief U.S. District Judge Kimberly Mueller in Sacramento, California, wrote in a ruling dated Tuesday. Mueller had already blocked enforcement of the law while lawsuits challenging it played out in her court. Plaintiffs included businesses based in California, Louisiana, Texas, Florida, Montana and Wyoming. The California ban had covered products made from alligators and two species of crocodile — Nile and Saltwater. All can be sold legally under international treaty and U.S. federal law. Mueller rejected arguments that California was only seeking to regulate activity within the state. “California is not regulating crocodile takings with its borders,” she wrote. “Nothing in the record suggests crocodiles reside in California, migrate into California or have been introduced into California.” According to the court record, the Nile crocodile is listed as threatened and some species of saltwater crocodile are threatened or endangered. The American alligator is no longer threatened or endangered — there are now an estimated 2.9 million in Louisiana in the wild or on farms — but it's treated as threatened because alligator products can be difficult to tell apart from products made from endangered crocodiles. Louisiana argued in filing the suit that the economy surrounding alligators has played a key role in bringing back the American alligator population and is an important factor in protecting wetlands and other species besides alligators that depend on the wetlands. Louisiana said that because most of the state’s coastal habitat is privately owned, the state does not have direct control over how it is managed. But the alligator industry provides economic incentives for landowners to take steps to protect marshlands that serve as habitat for the alligators.
‘We’re going after’ PFAS exposure, Biden tells firefighters - President Joe Biden wants to limit the risks firefighters face from exposure to toxic chemicals in their gear and from wildfires fueled by climate change, he said Monday. The president, speaking to a crowd at the International Association of Fire Fighters Legislative Conference on Monday, listed a series of policy priorities aimed at improving safety and benefits for firefighters. “You guys are the best, you women are the best, and that’s not hyperbole,” Biden told the group. “You’re the very best America has to offer. We owe you.” The president pointed to the high rate of cancer among firefighters. “Toxic substances you’re exposed to on the job are almost certainly why cancer is a leading killer to firefighters,” he said. Biden added, “We’re going after toxic exposure to PFAS, so-called forever chemicals, that for years have been in your gear, your equipment … that you depend on to be able to do your job.” Firefighters are exposed to per- and polyfluoroalkyl substances (PFAS) — a highly toxic class of chemicals linked to a wide variety of health problems even at very low doses — from the protective gear they wear on the job (Greenwire, Feb. 16, 2021). “I’m determined, determined, to make sure you have the gear that protects you without making you or your family sick. You deserve it,” the president said Monday to applause. With “climate change becoming so severe,” Biden added, “we’re calling on you more and more.” And “extreme heat and drought turn wildfire season into wildfire years,” he said. Biden pointed to the massive climate law enacted last year, which funnels about $370 billion toward climate and clean energy initiatives. That law “makes the most significant investment in history in confronting climate change, including protecting forest health, reducing fire risk in nearby communities to protect you,” he said.
US neighborhoods with more people of color suffer worse air pollution - The neighborhood where Emprezz Nontzikelelo struggles to breathe the worst air in America was the only part of Bakersfield where Black families like hers were allowed to live when she was growing up. Still populated by predominantly low-income people of color, the eastern side of Bakersfield lies downwind of the oilwells, freeways and pesticide-choked agricultural fields of California’s Central Valley and backs up to a busy rail yard that ships the valley’s produce around the nation. As in Bakersfield, across the US people of color are often the ones forced to live with the nation’s worst fine particle air pollution. The Guardian worked with academics to analyze air pollution in the contiguous US at a neighborhood level and created a top 10 ranking of local areas breathing the worst air. And a new interactive map allows Americans to see the estimated pollution levels in their neighborhoods at an unprecedented level of detail. The analysis, based on a model created by a team of researchers at institutions including the University of Washington, shows that the more people of color who live in a neighborhood, the higher the fine particulate air pollution levels are likely to be. “In our society, people of color are given the least value,” said Professor Robert Bullard, who helped to start the environmental justice movement, and was not involved with the research. He teaches at Texas Southern University in central Houston, which is another air pollution hotspot identified by the Guardian. “The underlying variable that is most predictive is systemic racism,” he said. And people like Nontzikelelo, 77, bear the brunt. A lifetime of breathing Bakersfield’s air, which has regularly exceeded federal action levels for fine particulate pollution by huge amounts, has left Nontzikelelo struggling with chronic obstructive pulmonary disorder so bad that she has frequently had to temporarily move away from Bakersfield to give her lungs a break and regain her health. While the Clean Air Act has prompted steady improvement in air quality around the country in the last five decades, studies by environmental researchers have shown that a wide gap persists in air pollution levels suffered by people of different races.The Guardian’s map is based on a cutting-edge model developed by Center for Air, Climate and Energy Solutions (CACES), a multi-university research center partnered with the US Environmental Protection Agency (EPA). The model estimates fine particulate air pollution, or PM2.5, at a far more local level than would otherwise be possible.
Power plants' challenge to cross-state ozone rules tossed by appeals court (Reuters) - A federal appeals court on Friday rejected a challenge to a Biden administration regulation requiring reductions in pollution that blows across state lines by power companies that allege the new rule will cost them hundreds of millions of dollars. A unanimous three-judge panel of the U.S. Court of Appeals for the D.C. Circuit tossed the power companies' petition, after finding the technical analysis used by the U.S. Environmental Protection Agency to finalize the 2021 rule was sound. The EPA declined to comment and counsel for the power companies did not immediately respond to a request for comment. The agency's rule requires coal power plants in 12 mostly Midwestern and Northeastern states that have previously failed to meet emissions reductions standards to install costly emission controls. The requirements aim to reduce pollution including ground level ozone, also known as smog, that can travel downwind across state lines and degrade air quality. It is part of what are known as the “good neighbor” provisions of the federal Clean Air Act's National Ambient Air Quality Standards, which set thresholds for pollution and potential monetary penalties for failure to meet those goals. The Midwest Ozone Group, a trade organization that represents power companies, challenged the rule shortly after it was issued in 2021, arguing the EPA rushed its analysis to meet court-crafted deadlines. The D.C. Circuit, in prior litigation, had sent an earlier version of the rule back to the EPA for a better explanation of its analysis in 2019.
When it comes to smog, Cook County is the worst neighbor in the country, EPA finds – - When it comes to lung-damaging smog, Chicago and the rest of Cook County are the nation’s worst neighbors. Newly released data from the U.S. Environmental Protection Agency show air pollution from the city and 120 of its suburbs contributes more to smog violations in other states than any other county. Wisconsin suffers the brunt of Cook County’s dirty air during hot summer days, when smog is formed by a reaction between sunlight and pollution from car and truck exhaust, power plants and factories, fumes from volatile solvents and gasoline vapors. Based on an analysis of air quality monitoring during the past several years, the EPA projects Chicago and the Cook County suburbs will account for more than a fourth of this summer’s smog problems in Kenosha and about a fifth of the noxious air Wisconsinites breathe in Racine and Sheboygan. Only New York comes close to being that bad of a neighbor. The EPA determined the state is responsible for 16% of the dirty air in nearby Fairfield County, Connecticut, which also gets hit by pollution drifting east from Chicago. But smog, technically known as ground-level ozone, doesn’t travel in just one direction. Pollution from Wisconsin is responsible for more than 3% of the smog in Cook County, the EPA concluded, enough to violate the federal Clean Air Act. Indiana polluters also send worrisome concentrations of dirty air to Illinois’ largest county and to Wisconsin, the EPA data shows. So do states as far away as Texas. With scientists concluding smog is more dangerous than previously thought, the Biden EPA is moving to clamp down on large polluters. The agency’s Good Neighbor Plan, expected to take effect by May, will impose more stringent limits on nitrogen oxide and sulfur dioxide emissions from coal- and gas-fired power plants in Illinois, Indiana, Wisconsin and 22 other states. A handful of other industries will be required to reduce their smog contributions for the first time.
Breached Dam, Incineration of Soil Flood East Palestine With Fresh Fears of Toxins --The collapse Friday night of a makeshift dam designed to hold back wastewater and new concerns by local groups and residents about the nearby incineration of contaminated soil from last month’s train derailment are the latest anxiety-producing woes to behest the community of East Palestine, Ohio.Watchdogs on the ground reported that the dam broke after heavy rains in the area on Friday.According to local Channel 19 News:Residents tell 19 News heavy rain has caused Leslie Run Creek to rise, and spill over the makeshift dam, near the derailment sight. 19 News was able to obtain several photos of water from that manmade dam covering the Main Street area of town.Residents fear the contaminated water may seep into homes or businesses—causing another level of fear for those who live in the area.Local resident Eric Cozza told the news outlet he was scared of what the released waters could do to the community. “I fear that now the chemical is in the ground, it’s going to leech towards the water ducts, our aquifer for drinking water,” Cozza said. “I’m concerned that the park is now contaminated. Kids won’t be able to play there or walk through there on their way to school.”Status Coup News, which has been reporting from East Palestine and speaking with residents since the disaster occurred, reported Friday night that flooding from the breached dam was going “into The Original Roadhouse restaurant parking lot where a lot of locals eat and drink.”The outlet also reported that the pictures of the broken dam posted to social media were taken by local resident Neko Figley, who was told by contractors to leave the area because it was “super dangerous to be here right now.”River Valley Organizing, a multi-racial, working-class group active in the Ohio River Valley region, said in a statement Friday that residents of East Palestine are still being ignored a month after 38 rail cars of a Norfolk Southern train went off the tracks on February 3.“It’s been one month since our lives were turned upside down,” the group said, “but we still aren’t getting what we need from the government or Norfolk Southern. We heard the people of this community loud and clear: they want safe homes, and independent environmental and health testing—now.”On Saturday, The Guardian reported on fresh fears over the incineration of contaminated soil that was taken from the crash site, not least because one of the nearby facilities where the material is being taken has a history of EPA violations. According to the Guardian:The new plan is “horrifying,” said Kyla Bennett, a former [EPA] official now with the Public Employees for Environmental Responsibility non-profit. She is one among a number of public health advocates and local residents who have slammed Norfolk Southern and state and federal officials over the decision. […]Incinerating the soil is especially risky because some of the contaminants that residents and independent chemical experts fear is in the waste, like dioxins and PFAS, haven’t been tested for by the EPA, and they do not incinerate easily, or cannot be incinerated.“Why on earth would you take this already dramatically overburdened community and ship this stuff a few miles away only to have it deposited right back where it came from?” Bennett asked.She further told the Guardian that the “most important thing in my mind is the human health and health of the environment” and that burning this toxic material under such conditions flies “in the face of basic human decency and science.” “The plan to incinerate dioxin and PFAS contaminated soil from Norfolk Southern’s toxic spill deeply troubles us and will continue to build distrust and anxiety,” the group said. “It’s not clear the plan will work and puts communities down wind at risk of contamination.”According to an update from the office of Ohio’s Republican Gov. Mike DeWine, the Ohio EPA has reported that approximately 1,700 tons of solid waste have been removed from the disaster site in East Palestine as of Friday.Of that waste, reportsThe Chronicle-Telegram, 660 tons has gone to Heritage Thermal Services—the company with a litany of past violations—in East Liverpool, Ohio, which is in Columbiana County not far from East Palestine. Another 190 tons was hauled to the Giles incinerator for in-state burning and 880 tons of the solid waste was shipped out of state to landfills in Michigan and Indiana.Meanwhile, 3.2 million gallons of liquid wastewater have been collected in the area with the large majority going out of state, to facilities in Michigan and Texas, for deep-well injection.Amanda Kiger, director of River Valley Organizing, said one of her concerns was the incineration of toxin-laden materials so close to the residents still reeling in East Palestine.EPA and other government officials, she told the Guardian, “are just dumping more shit on Columbiana county,” Kiger said.”They say, ‘We already poisoned them so it doesn’t matter if we poison them more.'”
“It’s gonna keep happening all over America”: East Palestine, Ohio residents speak out at town hall on train derailment -Last Thursday, environmental activist Erin Brockovich held her second town hall meeting in East Palestine, Ohio. The meeting was organized with several law firms involved in preparing a class-action lawsuit against Norfolk Southern (NS) over the catastrophic derailment and release of toxic chemicals into the atmosphere and water supply in the eastern Ohio town. Brockovich’s meeting was held the afternoon before a second meeting in town, where residents confronted officials from NS and the Environmental Protection Agency. Anger and frustration over the disaster and ongoing cover-up were evident at both meetings. “There’s a lot of things that they’re not telling us, so that’s concerning,” “They’re keeping a lot of other information that people need. It’s all about the money. They’re gonna try to get off as cheap as they can and they’re gonna hurt a lot of people.” As if to drive the point home, a second massive derailment of a NS train occurred in the state on Saturday, in Springfield. Residents were told to shelter in place while emergency crews assessed the situation. About 20 cars in a 212-car train derailed, including four tanker cars. Officials claim there was no leakage from those cars, two of which contained “diesel exhaust fluid” and the other two “residual amounts of polyacrylamide water solution.” The dangerous length of the train, at around two miles long and more than 50 cars longer than the train which derailed in East Palestine, underscores that nothing is being done to address any of the underlying safety issues which led to the disaster, and that Norfolk Southern and the other railroads are being allowed by the government to carry on as they had before. Brockovich’s second town hall was addressed by numerous lawyers and experts who presented extensive information on the science of the chemicals released, the naked profiteering by the railroads and neglect of basic safety measures. The presentations included 150 slides from attorney Mikal Watts on the role of Norfolk Southern in the accident. He pointed to the railroad’s push for increased profits, which jumped 62 percent in just two years, from $2 billion in 2020 to $3.2 billion last year, based on forcing workers to work longer hours and cuts in maintenance and safety. Watts revealed that Norfolk Southern alone had 3,397 train derailments in a 20-year period, approximately 170 derailments a year. This amounts to nearly one derailment every two days, at only one of the seven major Class I railroads. Nearly a month following the February 3 derailment, the EPA finally announced Thursday that it would require NS to begin testing for dioxins, a class of highly toxic chemicals that were almost certainly released into the atmosphere by the “controlled” release and burn of a derailed tanker car following the accident.Meanwhile, government “counter-terrorism” experts have been far more closely following the activities of Brockovich in the region. Late last month, before her first town hall in East Palestine, a joint federal and state counter-terror “fusion center” issued a bulletin warning that her “placing blame solely on Norfolk Southern” would lead to “[increased] tensions within the community” and a rise in “special interest extremism.” The potential activities branded by the report as “extremist” consisted entirely of legally-protected activities such as “protests in/around East Palestine and/or at the Statehouse in Columbus” which called for “for changes in governmental policy.”
Ohio law enforcement links Erin Brockovich to potential for 'special interest terrorism' threat in East Palestine --Ohio law enforcement issued a report late last month warning that events planned in East Palestine by the environmental activist Erin Brockovich could prompt a terrorist threat from violent extremists, according to an intelligence bulletin obtained by Yahoo News.Dated Feb. 24 and distributed to law enforcement agencies by the Department of Homeland Security (DHS), the Ohio Statewide Terrorism Analysis & Crime Center Terrorism Analysis Unit Situational Awareness [STACC TAU] report obtained by Yahoo News "assesses that special interest extremist groups will continue to call for changes in governmental policy, which may lead to protests in/around East Palestine and/or at the Statehouse in Columbus.”The report then singles out the reaction by Brockovich, a whistleblower who helped build a successful lawsuit against the California utility company Pacific Gas and Electric in a case involving contaminated groundwater, to the Feb. 3 train derailment and release of toxic chemicals in East Palestine.“On 24 February, environmental activist Erin Brockovich USPER [United States person] is scheduled to be in East Palestine to explain residents’ legal rights. Brokovich has urged the community to use common sense and ask questions. Brockovich is also placing blame solely on Norfolk Southern.The STACC TAU assess this event could potentially increase tensions within the community.”The report assesses the risk posed by Brockovich and other activist groups that have planned events in East Palestine in the wake of the Norfolk Southern train derailment and the controlled burn of vinyl chloride, a carcinogenic ingredient used in the production of plastic products after the derailment.“According to the FBI, special interest terrorism differs from traditional right-wing and left-wing terrorism in that extremist special interest groups seek to resolve specific issues, rather than effect widespread political change,” the report states. “Such extremists conduct acts of politically motivated violence to force segments of society, including the general public, to change attitudes about issues considered important to the extremists’ cause.”
Here’s the real reason the EPA doesn’t want to test for toxins in East Palestine --The agency is familiar with dioxins, having researched its adverse effects, and if they test the soil in East Palestine for it, they will find it - The decision to release and burn five tanker cars of vinyl chloride and other chemicals at the site of a 38-car derailment in East Palestine, Ohio, just over three weeks ago unleashed a gigantic cloud full of particulates that enveloped surrounding neighborhoods and farms in Ohio and Pennsylvania.It is well documented that burning chlorinated chemicals like vinyl chloride will generate dioxins. “Dioxin” is the name given to a group of persistent, very toxic chemicals that share similar chemical structures. The most toxic form of dioxin is 2,3,7,8-tetrachlorodibenzo-p-dioxin or TCDD. TCDD is more commonly recognized as the toxic contaminant found in Agent Orange and at Love Canal, New York and Times Beach, Missouri, both sites of two of the most tragic environmental catastrophes in US history.Dioxin is not deliberately manufactured. It is the unintended byproduct of industrial processes that use or burn chlorine. It is also produced when chemicals such as vinyl chloride are burned such as occurred in East Palestine. We have seen the impact of exposure to dioxins in communities from Love Canal and Times Beach to Pensacola, Florida. And now, we are asking, why isn’t EPA testing for dioxins in East Palestine, Ohio? Are dioxins present in the soil downwind from the site of the accident?At a townhall meeting in East Palestine last week, people talked about what it was like when the black cloud reached their property. One person who lived 15 miles away described burned ash material from the fire that settled on her property. Another who lived 3 miles away described how the black cloud completely smothered his property. Repeatedly people asked: was it safe for my kids to play in the yard? Is it safe to grow a garden? What is going to happen to my farm animals?These are important questions that deserve to be answered. Today there are no clear answers. Why? Because no one has done any testing for dioxins anywhere in East Palestine. No one. And, it seems, that the EPA is uninterested in testing for dioxins, behaving as though dioxin is no big deal.This makes no sense. Testing for dioxin, a highly toxic substance, should have been one of the first things to look for, especially in the air once the decision was made to burn the vinyl chloride. There is no question that dioxins were formed in the vinyl chloride fire. They would have formed on the particulate matter – the black soot – in the cloud that was so clearly visible at the time of the burn. Now, the question is how much is in the soil where people live in and around East Palestine. Without testing, no one will know and the people who live there will remain in the dark, uncertain about their fate. This is important because of the adverse health effects associated with exposure to dioxins. Exposure to dioxins can cause cancer, reproductive damage, developmental problems, type 2 diabetes, ischemic heart disease, infertility in adults, impairment of the immune system and skin lesions.
New study reveals alarming aftermath of the East Palestine train derailment: 'Everything in the creek is dead' - It has been a month since the Feb. 3 derailment of a Norfolk Southern train carrying toxic chemicals in East Palestine, Ohio. Since then, over 43,000 aquatic animals have died in and around East Palestine, according to the Ohio Department of Natural Resources (ODNR).The derailment killed an estimated 38,222 minnows and around 5,550 other small fish, crayfish, amphibians, and macroinvertebrates. ODNR’s research claims that these animals died immediately, meaning animals in the affected streams are not still suffering from the incident.One of the leaked chemicals was vinyl chloride — a toxic flammable gas used to create a commonly-used hard plasticcalled polyvinyl chloride (PVC).Authorities carried out a controlled release of the vinyl chloride to neutralize burning the cargo and prevent an explosion. The EPA identified four other substances that leaked into the air, soil, and water during the derailment.Based on visual observations of sampling sites, the ODNR initially reported only 3,500 dead animals. But it quickly became clear that over 10 times as many animals were killed following the derailment. Sam Hall, a student at West Virginia University, told Cleveland 19 News that he found tens of thousands of dead aquatic animals in a single weekend. “There’s dead frogs, dead crayfish, dead fish, everything in the creek is dead,” Hall said. “It was all just sitting on the bottom covered in fungus rotting, and there’s just a terrible chemical smell through this entire valley.”People have made several anecdotal reports of pets in and near the derailment site becoming sick and dying. As a precautionary measure, the ODNR disposed of all the collected poisoned wildlife and removed additional dead fish from the impacted waterways.ODNR doesn’t believe the derailment of chemical spill directly harmed any terrestrial wildlife. The agency collected dead land animals — three dead birds and one dead opossum, but ODNR Agency Director Mary Mertz said they contained no evidence of chemical poisoning. Mertz also reported none of the species killed are threatened or endangered.
East Palestine toxic train derailment: Residents experiencing symptoms— Health assessment surveys from East Palestine, Ohio, have shown that the most common symptoms experienced by residents since last month's toxic train derailment include headaches, coughing, and anxiety. The findings of the survey, conducted by the Ohio Department of Health and the U.S. Department of Health and Human Services, were released Friday. Other common symptoms reported by residents were fatigue and irritation, pain, or burning of their skin, according to a statement from Ohio Gov. Mike DeWine’s office.The "After Chemical Exposure (ACE) Community" survey was completed by 168 people who in the last two weeks have either gone to the state's health assessment clinic or have been visited at home by federal officials. The median age of those surveyed was 57 and nearly all respondents are older than 18.DeWine's office said Friday that officials will use the information to "better understand how the derailment incident may be impacting residents and determine appropriate public health response." Nearly three-quarters, or 74%, of the participants, said they had experienced headaches since the derailment. Six in ten reported coughing, and just over half said they had experienced irritation, pain, or burning of their skin.Of the 168 respondents, 64% reported feeling anxiety and 58% said they felt fatigue or tiredness. In addition to releasing results from the health assessment surveys, DeWine's office provided updates on the remediation process in the area. According to DeWine's office, the state's Environmental Protection Agency is overseeing train track removal operations. In a plan submitted by Norfolk Southern, the removal of tracks, excavation of soil, and reconstruction of the rails are set to be completed by April 30. DeWine's office also said water sample results from private water systems of East Palestine homes "continue to show no harmful levels of contaminants." Of the 157 private systems tested, 57 samples have been verified and none have shown harmful levels. Hazardous waste removal from the derailment is ongoing, according to DeWine's office. The hazardous waste has been hauled to various disposal sites in Ohio and other states. The Ohio Environmental Protection Agency said in total, about 3.2 million gallons of liquid wastewater have been removed from the East Palestine area and approximately 1,700 tons of solid waste have left the derailment site. Federal and state officials have repeatedly said it’s safe for evacuated residents to return to the area and that air testing in the town and inside hundreds of homes hasn’t detected any concerning levels of contaminants. U.S. Environmental Protection Agency has ordered the company to cover the costs of cleanup from the derailment that toppled 38 rail cars in East Palestine. On Monday, Ohio, Gov. Josh Shapiro's office said he met with Norfolk Southern CEO Alan Shaw last week and secured an initial commitment for financial aid as the cleanup from the derailment continues. According to the governor, the company will pay $5 million to reimburse fire departments for equipment that was contaminated or damaged and $1 million to Beaver and Lawrence counties to help business owners and residents whose livelihoods were damaged. Another nearly $1.4 million will go to state agencies that responded, including for setting up a health clinic for residents, Shapiro added.
East Palestine Residents Diagnosed With Chemical Bronchitis After Train Derailment - theTrumpet.com | World News, Economics and Analysis Based on Bible Prophecy - The ongoing environmental disaster in East Palestine, Ohio, is likely the worst environmental disaster in United States history. The Ohio Department of Natural Resources estimates that 38,222 minnows and 5,550 other species (such as chickens, crayfish, fish, foxes, frogs and sheep) have died as a direct result of the February 3 chemical spill when a 150-car train derailed. Fortunately, no humans died. Everyone within a 1-mile radius of the site was evacuated before the government set fire to an undetermined amount of vinyl chloride, butyl acrylate, ethylhexyl acrylate and ethylene glycol monobutyl. But the toxic fumes spread over roughly 2,000 square miles downwind of the burn site, exposing thousands of people to small amounts of phosphene gas. This exposure is causing dozens of cases of chemical bronchitis.Local resident Melissa Blake told nbc News that she was diagnosed with bronchitis after she started coughing up gray mucus in the wake of the train crash. Such symptoms are worrying, and Blake is not the only resident experiencing them. Deborah Weese, a nurse practitioner at Quickmed Columbiana, told nbc that she has evaluated as many as 10 people per day who have symptoms consistent with exposure to toxic chemicals. Howard Yang, a manager at a manufacturing company near the derailment site, told nbc News that half of his workers were too sick to work three weeks after the train derailment. People ended up with rashes, nausea, vomiting, bloody nose, eye issues. A lot of coughing, wheezing. We sent a lot of workers to the hospital to get checked out, and sure enough, in most cases, it was a diagnosis of “chemical bronchitis.” Federal and state officials have repeatedly said it is safe for evacuated residents to return to the area, but many do not trust the government. The Federal Emergency Management Agency refused to help East Palestine for two weeks, and Transportation Secretary Pete Buttigieg did not visit for three weeks. In fact, many believe Buttigieg never would have visited the contamination site if Donald Trump did not show up in East Palestine with 13 pallets of clean water.It is clear that the government wants to put this environmental disaster behind it as quickly as possible while the residents of East Palestine find out the hard way whether or not their air is safe to breathe and their water is safe to drink.
East Palestine, Ohio: Survey finds people who were surveyed complaining most of headaches, anxiety, coughing | CNN — A day after angry residents repeatedly interrupted a railroad company official at a town hall, Ohio Governor Mike DeWine’s office released the results of health assessment surveys conducted in East Palestine, revealing the most common symptoms reported by residents since the toxic train derailment include headaches, anxiety and coughing.Other symptoms reported since the derailment about one month ago were fatigue, irritation, pain and a burning sensation on the skin, according to a statement from the governor’s office.The Ohio Department of Health, along with local and federal health partners, is using information from these surveys “to better understand how the derailment incident may be impacting residents” and determine an appropriate public health response, the statement said.The most common symptom among the nearly 170 people observed by a doctor was headache – 74% of the respondents. Sixty-four percent of respondents reported anxiety, 61% reported coughing, 58% reported fatigue/tiredness and 52% reported irritation/pain/burning of skin.Officials with the Columbiana County Health Department continue to test water samples from private water systems in East Palestine. As of Friday, 157 systems have been sampled, of which 57 samples “have been verified” and show to have no harmful contaminant levels associated with the derailment, according to the statement. The announcement follows a town hall Thursday, where East Palestine residents repeatedly grilled a railroad company official regarding cleanup efforts at the crash site.“We’re going to do the right thing, we’re going to clean up the site,” said Norfolk Southern representative Darrell Wilson as shouts were raised from those in attendance. “We’re going to test until we get all the contamination gone.” “No, you’re not!” one voice cried out.After the derailment, the dangerous chemical vinyl chloride was released and burned to prevent a potentially deadly explosion, and other chemicals of concern that were being transported are feared to have leaked into the surrounding ecosystem in Ohio and Pennsylvania – with potentially damaging health consequences. Crews involved in the cleanup have also reported medical symptoms, according to a letter on behalf of workers’ unions.During Thursday’s town hall, officials with the Environmental Protection Agency said Norfolk Southern’s plans to remediate the site were under consideration that night, and Mark Durno, Regional Response Coordinator for the EPA, told CNN’s Brenda Goodman that teams were poised to approve it.That paved the way for the process to begin Friday morning. The EPA has ordered the freight rail company to fully clean up the site of the wreck.However, an EPA source with detailed knowledge of the situation told CNN Friday the agency has not fully accepted the remediation plan and expects to receive an updated draft by next week. While preliminary work has begun on the tracks, the excavation of soil has not begun, the source explained.
Here's why it's hard to clean up toxic waste from the East Palestine train derailment - It's been nearly a month since a Norfolk Southern train derailed and spilled hundreds of thousands of pounds of toxic chemicals into the air, soil and water around East Palestine, Ohio. In the weeks since, authorities have undertaken a massive operation to clean up the hazardous materials.More than 700 tons of contaminated soil and nearly two million gallons of liquid have been collected from the derailment site, Ohio officials say, with much more left to clean up under the order of the Environmental Protection Agency.The effort to remove vast amounts of contaminated soil and water from the small town in eastern Ohio has involved at least seven different licensed hazardous waste disposal facilities across four states: Ohio, Indiana, Michigan and Texas.The tangle became even more complicated when the EPA enacted a one-day pause on Norfolk Southern's removal operations last weekend after officials in Texas and Michigan raised concerns about East Palestine waste coming to disposal facilities in their states."Why are these materials not being taken somewhere closer? Is there something these jurisdictions know that we don't know?" said Judge Lina Hidalgo, the top elected official of Harris County, Texas, after news broke last week that 30 truckloads of contaminated firefighting water were arriving each day to Deer Park, a suburb of Houston.Afterward, officials announced several new disposal sites for the East Palestine waste, including a landfill in Indiana — which prompted objection from yet another state official, Indiana Gov. Eric Holcomb. "The materials should go to the nearest facilities, not move from the far eastern side of Ohio to the far western side of Indiana," he said.Officials say they are still searching for other disposal sites.The controversy underscores the complexities of a cleanup process that officials are undertaking as quickly as possible.Experts warn that it will likely take years to complete the cleanup of East Palestine – if it can ever be considered truly complete.
Opinion: Another toxic train derailment will happen if we don’t rein in plastics - Los Angeles Times - Images of dead fish floating in murky water and menacing plumes of gray smoke are haunting the nation’s front pages. Interviews with distressed residents are interspersed with exasperated talking heads on our television screens. A month after the train derailment disaster in East Palestine, Ohio, America continues to bear witness to the community’s suffering.Though any fiery train wreck is hazardous, this one was particularly catastrophic given the chemicals onboard. Chief among them was cancer-causing vinyl chloride gas, which officials intentionally released into the surrounding air to avoid an explosion. Residents were evacuated during this operation, but long-term pollution and exposure concerns remain. Just last week the Environmental Protection Agency ordered the railway to test the air for dioxins, which can also cause cancer and linger in the environment long after vinyl chloride and other plastic chemicals are burned.Soon the camera crews will pack up and public attention will shift to the next big story. But for East Palestine, the story is just beginning, and the following chapters are likely to be grim. We know because the same chemical contaminated — and eventually destroyed — several towns in Louisiana decades ago. Morrisonville, La., was founded after the Civil War by freedmen and blossomed into a vibrant, predominantly African American community. But in 1958, chemical giant Dow built a vinyl chloride plant near the river, displacing the town’s sugar and cotton plantations. Demand for PVC plastic — the main product manufactured with vinyl chloride — grew, and the plant further encroached on the community. As one resident put it to the Times-Picayune at the time, the plant was right “on top of us.” Blaring sirens warning of toxic releases soon became a part of daily life. During these events, residents were told to close windows and doors and huddle inside to avoid breathing in too much of the toxic fumes. When environmental groups and the EPA started noticing increased diseases and dying fish in the 1980s, Dow made modest offers to buy residents out of their homes, often barely enough to buy or rent a new home. When residents refused, they faced pressure. If they didn’t take the offer, the company suggested, their property would soon become worthless because of the pollution. By the early 1990s, the town was entirely abandoned, save for a graveyard. Reveilletown, La., was another bustling community built by formerly enslaved people and destroyed by the PVC plastics industry. A major manufacturer, Georgia Gulf, eventually overtook the town, spewing vinyl chloride and its byproducts into the air and water. The company razed the community, dispersing the residents far from one another — severing their common bonds, church memberships and any political cohesion they might otherwise have had. Vinyl chloride producers polluted the town and a decade ago began buying out residents when the toxic consequences were borne out.Vinyl chloride production not only laid waste to these towns, but it also contributed to the surrounding region becoming known as “Cancer Alley.” The water, air and land in this area have become the sewers of America’s plastic and chemical industries. Seven of the 10 U.S. census tracts with the highest cancer risks from air toxics are in this area, according to a 2014 EPA analysis. The same analysis found that residents of one town are 50 times more likely than the average American to develop cancer from air pollution.
Southern Ontario hit by intense winter storm with thundersnow and heavy snowfall, Canada - (3 videos) An intense winter storm roared through southern Ontario on Friday night, March 3, 2023, bringing heavy snowfall, thundersnow, and howling wind gusts. Despite spring being just a few weeks away, the storm resulted in dangerous travel, scattered power outages, and flight disruptions. Southern Ontario was hit by one of the region’s biggest snowfall events of the season on Friday night into Saturday morning, resulting in dangerous travel and scattered power outages. The intense winter storm brought strong wind gusts, thundersnow, and significant snowfall amounts, which lasted through the early morning hours on Saturday. The storm was characterized by snowfall rates of over 5 cm (2 inches) per hour) and wind gusts of 60 – 70+ km/h (37 – 43+ mph), leading to travel warnings and power outages in several areas. The southern regions of the area were hit the hardest, and the storm lingered into the afternoon for eastern sections. Flight delays and cancellations were also experienced as the high winds and heavy snowfall blanketed the region. Thundersnow was also reported in many areas experiencing the most intense snowfall rates. As of Saturday evening, significant snowfall totals have been reported in several locales. Scarborough and Orangeville have seen the highest snowfall amounts, with 32 cm (12.6 inches) reported, followed by 31 cm (12.2 inches) at Trenton airport, 30 cm (11.8 inches) in Vaughan, and Newmarket, 29 cm (11.4 inches) in North York, 27 cm (10.6 inches) in Waterloo, and 24 cm (9.4 inches) at Toronto’s Pearson International Airport.While this notable snowfall event has passed, southern Ontario is now bracing for another round of snow to start the new week. The new snowfall is not expected to be as severe as the previous winter storm, but travel is still expected to be impacted through Monday across southern Ontario, particularly in the west end of the Greater Toronto Area (GTA) and towards the southwest. The new snowfall may cause further difficulties for commuters and residents who are already dealing with the aftermath of the storm. To stay safe, residents are advised to be cautious while driving, avoid unnecessary travel if possible, and prepare for possible disruptions to transportation and daily activities.
Crestline residents in survival mode following powerful winter storm - People living in the mountains are desperately digging themselves out of an unprecedented winter storm. "The only way I could describe this is like if we had an avalanche fall over the San Bernardino Mountains and we're just stuck," said Pablo Tello, a Lake Arrowhead resident. Roads remain impassible as people make the cold trek in search of needed supplies. Gordon walked a mile to and from his home looking for food. Crestline's only grocery store, Goodwin & Sons Market, was destroyed after its roof collapsed under the weight of snow. However, emergency ready-to-eat meals are being handed out in the parking lot to those who need it. Folks are left shell-shocked by the powerful storm's aftermath. "I've been up on this mountain my whole life from Big Bear to here in Crestline, and this is the worst storm I've seen in 30 some odd years I've been up here," Gordon said. "We only stay stocked up for maybe three or four days, and the grocery store is just down the street, so we're like it's not a big deal, but then when the grocery store collapsed and all these trees are snapping and we're in and out of power it's real hard right now," Gordon added. In the whiteout, the community is in survival mode as they rally around each other. "I bought these strictly for decorations to put over my fireplace in my living room and right now these are a lifesaver," Tello said while holding an ornament. "These are the only thing I was able to use to get to the gas meter at my house and other people's houses just to uncover them so they catch fire." For now those affected say they'll have to wait for the help that's needed immediately. "Without our neighbors, without the helping coming from down the hill and without Caltrans we're isolated. We can't survive," Gordon said. The biggest concern is that it may take days or even weeks to clear all these roads, so time is running out for those who need it most.
Snowed-In And Terrified- Trapped California Mountain Residents Plea For Help - The historic storm that swept through California over the last week—prompting Gov. Gavin Newsom to declare a state of emergency March 1—has passed. But for residents living in San Bernardino Mountain communities, the nightmare has only just begun, as many remain snowed in rationing food, medications, water, and heat. “I can’t even walk 50 feet because it’s up to my shoulders,” Lake Arrowhead resident Becky Gardner told The Epoch Times. Gardner said she panicked when she saw pictures on social media of some locals spending hours digging out snow from on-top gas meters to prevent gas leaks. Melting snow, experts say, can block a vent on a meter’s regulator disrupting gas pressure which could lead to a fire or explosion. The San Bernardino County Fire Department advised residents to do so if they can get to their meters safely, according to a March 2 post on Twitter. Gardner said she is concerned for her elderly neighbors, who have also been stuck inside for over a week. With uncertainty of when roads will be cleared, she said she is preparing to save her last logs of wood for her fireplace. Like Gardner, anxiety and frustration have been mounting for some residents who remain trapped. “It’s been about 10 days,” Lake Arrowhead resident Casey McLelland told The Epoch Times. McLelland said the family has lived in the area since the 1970s and they say they’ve never seen anything like this. “This is truly, truly one of a kind,” she said. She said her 90-year-old grandmother, who lives across town by herself, is out of medication for her arthritis and has been without heat since last night. She said she is losing hope and has lost track of time. “If you have a life or death emergency right now, more than likely you’re going to die,” she said. “I’m not trying to be dire or dramatic, but that’s kind of where it’s at this moment, because even if a fire department gets the call, they can’t get to you,” she said. According to the National Weather Service, Lake Arrowhead received more than 8 feet of snow over the last week. Normally, the region accumulates around 13 feet of snow each year. Since the most recent storm, San Bernardino County crews have been working to clear roads as fast as possible and deliver much-needed essentials to desperately trapped residents and visitors.
Atmospheric river rolls into California; evacuation warnings issued - Los Angeles Times --Another massive storm began rolling into California on Thursday, a system that’s expected to bring rainfall, winds and more snow to an already drenched and snowbound state. The inbound storm — sometimes called a Pineapple Express — is the result of a northern pressure ridge linking with subtropical moisture moving up from Hawaii. Such systems are known to drop heavy precipitation. The storm has prompted a flurry of evacuation warnings and orders, especially in Northern California, which is in line to receive the brunt of the system. The atmospheric river began to hit Northern and Central California on Thursday morning, with the peak of the storm expected to last through Friday morning, according to the National Weather Service in San Francisco. Much of Northern California, from the Bay Area to the Central Coast, is also under a wind advisory, with gusts as strong as 50 miles per hour expected during the storm. Gov. Gavin Newsom on Thursday requested a presidential emergency declaration to authorize federal assistance supporting the state and local response to the storms. The governor also has proclaimed a state of emergency in 21 counties to support disaster response and relief efforts. Mountains east of Sacramento are set to receive several inches to several feet of snow. The National Weather Service issued a winter storm warning Thursday evening for Southern Trinity County with up to 8 inches of snow possible at elevations above 2,500 feet. But the main concern is flooding. “The ground is already saturated and streams/rivers are already swollen,” the weather service wrote in a forecast report. “When additional heavy rainfall falls on an already saturated ground the only thing it can do is run off.” The Santa Cruz Mountains could see up to 8 inches of rain, with other parts of the region receiving between 1 and 6 inches of rain, the weather service reported. The city of Watsonville issued evacuation orders for areas along the Pajaro River at 5 p.m. Thursday with shelters opened at Watsonville Veterans Memorial Building and the Cabrillo College gymnasium. The area under the evacuation order includes Bay Village, a senior community that sits near Salsipuedes Creek. New storm could bring more peril to California rivers already hit by deadly flooding According to the National Weather Service, other rivers that could see flooding include the Russian River at Hopland; the Salinas River at Bradley and Spreckels; the Merced River at Stevinson; the Tuolumne River at Modesto; the Cosumnes River at Michigan Bar; the Mokelumne River at Benson’s Ferry; and Bear Creek at McKee Road. Nearly two dozen additional river locations across the state may surge above their “monitor stage” — meaning they could potentially overflow their banks and cause minor flooding in low-lying areas. That includes multiple locations along the Sacramento and San Joaquin rivers. Officials in Fresno and Madera counties have issued evacuation warnings for residents in their areas, warning of potentially serious flooding from the incoming storm. Fresno County Sheriff’s Office spokesperson Tony Botti said officials were particularly concerned about flooding around Pine Flat, as well as Millerton Lake, which feeds into the San Joaquin River and flows west toward Mendota, Tranquility and other communities. At Oroville Dam — which suffered a near-catastrophic failure amid a series of atmospheric rivers in 2017 — state operators said they could begin releasing water down the dam’s rebuilt main spillway as early as Friday. In San Jose, police will be enforcing evacuation orders of local creeks that have been in place since January. Police will be announcing the orders to homeless people residing in the creekbeds. Low-lying regions of Santa Cruz County, including Felton Grove, Paradise Park, Soquel Village, Rio Del Mar Flats and areas along Corralitos Creek, were placed under evacuation warnings ahead of the storm. “If you flooded in January, you are likely to flood again,” the county said Thursday on Twitter. “Please be prepared to leave if necessary. This is a warning not an order, but leave now if you feel unsafe.”
More Snow and Rain Raise Flooding Risk in California - A dangerous winter storm was dumping heavy precipitation over large swaths of California on Friday, raising the risk of significant flooding and pushing cities to issue evacuation warnings. The storm, known as an atmospheric river, began on Thursday and was forecast to bring heavy rain and snow over parts of the state through the weekend. Central California was expected to be hit the hardest, and considerable flooding impacts were possible across portions of the central coast and the San Joaquin Valley, forecasters said. As of Friday morning, most of California’s more than 39 million residents were under a weather warning or advisory, and dozens of counties were under a state of emergency. The number of power outages was also rising. Forecasters have warned of “copious amounts of heavy snow” in the mountains of Northern and Central California through Friday, some of it in mountain towns already buried in snow from weeks of storms. Excessive rain was also forecast along the Central Coast, and forecasters warned that significant snowmelt at lower elevations could trigger flooding — all before another atmospheric river approaches next week. Even by the standards of a state that has faced a brutal few weeks of extreme weather, the impact could be severe. “This is an unrivaled, unparalleled weather event not experienced in several decades, perhaps back to 1969,” Gov. Gavin Newsom expanded on Thursday a state of emergency that he had declared last week for 13 counties to include 21 more, many of them in Northern and Central California. The California Department of Transportation had more than 4,000 employees working statewide, including more than 57 who were operating snowplows, graders, loaders and dump trucks in San Bernardino County. The California National Guard was moving high-water vehicles into position in preparation for flood-response operations, and San Francisco said that it was giving away 10 sandbags per address to residents and businesses. The city of Merced, about 115 miles southeast of Sacramento, issued an evacuation warning for some residents living around Bear Creek. San Jose issued evacuation orders to homeless residents living along the county’s rivers and creeks. Monterey County began urging some residents to prepare to evacuate. The storm posed clear risks to road safety. The fire department in Contra Costa County, east of San Francisco, said on Twitter that one person was in critical condition after a four-vehicle accident that the authorities believed was linked to the weather. South of San Francisco, a 40-mile coastal stretch of California’s iconic Highway 1 was closed in the counties of Monterey and San Luis Obispo after reports of rockfalls. The California Department of Transportation reported spinouts and emergency work on other roads. Statewide, about 70,000 customers were without power as of Friday morning, according to poweroutage.us. Most of them were in Monterey County. Livestock was at risk in some places, too. In Northern California, the authorities were working with state and federal agencies on Thursday to drop hay for stranded cattle in the hill country of Humboldt County. “We know that there have been some cattle that have died,” said William Honsal, the county sheriff. “We will not know the number until the snow melts.”
California concerned over flooding potential after heavy rains (Reuters) - Emergency officials in California's San Luis Obispo County spent early Friday patrolling levies and swollen rivers after an atmospheric river storm drenched the already-saturated state with torrential rain, raising the flooding risk in some areas. As much as 5 inches (13 cm) of rain has already fallen in some spots across the county, with some seeing as much as 7 inches. In higher elevations of the coastal county, which sits roughly midway between Los Angeles and San Francisco, as much as 15 inches of rain may fall, the National Weather Service said as it issued a flash flood warning. U.S. President Joe Biden on Friday declared an emergency in California, ordering federal assistance to help local, tribal and state officials respond to the severe weather. Emergency crews have spent the last day preparing for the possibility of dangerous flooding, monitoring levies, creeks and rivers and filling sandbags, said Rachel Monte Dion, the county's emergency services coordinator. Some personnel spent the night in trailers watching for flooding in low-lying areas across the county, which was hit hard by heavy downpours in January, causing a levy to fail and damaging homes. "We're very concerned. Since January, it's been raining steadily here and so our ground is fully saturated and our creeks are full," Dion said, noting that more than 1,200 residents were under evacuation orders and warnings. "We are all on edge, expecting a very busy day today," she said. The heavy rains in northern and central California raised concerns that melting snow from a spate of blizzards in mid-elevation mountains could add to runoff and cause flooding downstream. Gusty winds accompanying the showers are also expected to uproot trees loosely anchored in rain-soaked soils. The storm is the product of what meteorologists call an atmospheric river, a high-altitude current of dense, subtropical moisture streaming into the West Coast from the warm Pacific waters around Hawaii. It marks the latest of 10 such California storms since Christmas, adding to an exceptionally wet, snowy winter in a state that in recent years has been plagued far more by drought and wildfires than by severe precipitation.
Scientists survey sand following SoCal storms — When storms hit California in January and February, the sand moved all over the place at beaches up and down the coast. Scientists at UC San Diego’s Scripps Institution of Oceanography are using a tricked-out jet ski, complete with GPS, sonar and other tools to figure out where the sand went. The jet ski drives in lawnmower like patterns close to the shore and out a short distance and back to collect measurements. The data will help the team put together depth maps comparing the sea bed before and after the storms. Researcher Bob Guza said the storm in early January 2023 took a “big bite” out of the beaches comparable to the beach erosion following the 2016 El Niño. He said data shows about 80% of sand lost in 2016 eventually came back during a two-to-three-year period, but that doesn’t mean the same thing will happen with these recent storms.
As the West's drought eases, this area remains in the worst on record — and it's hitting farmers hard --Cate Casad started noticing the for-sale signs pop up over the last year on farms around Central Oregon, which has been mired in water shortages amid a yearslong megadrought. Casad and her husband, Chris, are first-generation farmers and ranchers who started off with just a few acres of land east of Bend, then moved north in 2017 to scale up their farm. Now, the couple manages around 360 acres of farmland in Jefferson County, where they grow organic food and raise cattle, heritage breed hogs and pastured chickens. Only a year after that move, they started experiencing the impact of the drought and water cuts so severe that they made the tough decision to stop growing potatoes — a valuable crop that took them nine years to build a local market for. But while Casad is determined to keep farming, neighboring farms have decided to cut their losses and sell land. “It’s devastating,” Casad told CNN. “Each year since then, we’ve been cutting back more and more and more to the point in which last year was the worst year yet — and this year, we think will be very similar.” As much-needed winter storms alleviate drought conditions in California and southern parts of Oregon, the deluge of snow and rain in the West largely missed Central Oregon, leaving Crook, Jefferson and Deschutes counties dry. And many of the farmers in this area don’t have priority rights to the water – putting their farms at heightened risk of failure.Around the peak of the western drought in the summer of 2021, nearly 300,000 square miles of the West was in exceptional drought, the worst designation in the US Drought Monitor. Comprising 10 states — every state in the West except Wyoming — this designation covered one-quarter of all the land.But now the exceptional drought has nearly disappeared after a winter deluge of rain and snow — all except for about 1,500 square miles, nearly all contained in Crook County. It has spent 87 consecutive weeks mired in the worst drought category — the longest current stretch anywhere in the country.Oregon state climatologist Larry O’Neill said Crook missed out on a full year’s worth of rain over the last three years and “by several different measures” has seen the worst drought in Oregon’s recorded history.“What we’re seeing now is this really poor water supply and how we haven’t really had any recharge in the last couple years,” O’Neill said. “Even if you stretch back to the year 2000 in that region of Central Oregon, 16 out of the last 22 years have received below-average precipitation.”Seth Crawford, a county judge in Crook, said most of the ranches and farms there rely on reservoir water, “and those reservoirs levels are at historic lows.” Farmers are seeing reductions in harvest yields and have had to shift to crops that require less water, which tend to be less valuable. And then their expenses pile up.“Our ranchers and farmers have had to sell livestock which will result in a negative effect on their bottom line,” Crawford told CNN, and they “are hauling water to locations where, historically, livestock water was provided by springs and pond. In addition to the issues that farmers and ranchers deal with, our rural residents are needing assistance in well-deepening and water quality.”
Drought Exacerbates Water System Built On 'Foundation Of Racism And Violence' | Climate Signals - Mass amounts of precipitation across what is now the Western United States have eased the worst megadrought in more than a millennium, but that snow and rain has largely missed central Oregon, CNN reports. Much of Crook County remains in "exceptional drought," the worst designation given by the U.S. drought monitor, as it has for 87 weeks — the longest of anywhere in the country. The exceptional dearth of precipitation is exacerbated by a centuries-old water rights system built on extraction and Indigenous extermination. “While we’re all experiencing drought, not all drought is equal due to this 100-year-old Western water law that’s been put in place and hasn’t been changed, and that’s serving people very inequitably,” Andrea Smith of the High Desert Food and Farm Alliance, told CNN. “But it is a system we’re dealt and working with right now – and there’s a lot we have to do to change it.” That system, the LA Times reports, is under unprecedented scrutiny as growing pressure from tribes, environmental groups, water experts, and the impacts of climate change squeeze the antiquated and byzantine system. “The whole water rights system sits on a foundation of racism and violence,” Max Gomberg, a former State Water Resources Control Board staffer who now works with the environmental group, told the Times. “It needs to be abolished.”
Is California’s antiquated water rights system racist? - Los Angeles Times It’s an arcane system of water law that dates back to the birth of California — an era when 49ers used sluice boxes and water cannons to scour gold from Sierra Nevada foothills and when the state government promoted the extermination of Native people to make way for white settlers.Today, this antiquated system of water rights still governs the use of the state’s supplies, but it is now drawing scrutiny like never before.In the face of global warming and worsening cycles of drought, a growing number of water experts, lawmakers, environmental groups and tribes say the time has finally come for change. Some are pushing for a variety of reforms, while others are calling for the outright dismantling of California’s contentious water rights system.Calls for reform were heightened recently when the environmental group Restore the Delta released an analysis that concluded that the people who make decisions about California’s water are overwhelmingly white and male.“The whole water rights system sits on a foundation of racism and violence,” saidMax Gomberg, a former State Water Resources Control Board staffer who has sharply criticized the Newsom administration and now works with the environmental group. “It needs to be abolished.” The report was released as state lawmakers held a hearing on several reform proposals that would address longstanding problems within the water rights system.“This is not an easy conversation, but I think it’s long overdue,” said Assemblymember Rebecca Bauer-Kahan (D-Orinda), who chairs the Water, Parks and Wildlife Committee.Bauer-Kahan said there are many signs the existing system is “not functioning well and equitably,” including the “inability to halt illegal diversions.”During the hearing, experts such as Richard Frank, a UC Davis law professor, argued for a “more nimble system,” while Ellen Hanak, director of water policy for the Public Policy Institute of California, said the changing climate is stressing the water rights system. “We’re confronting 21st century climate change, drought and water supply problems with a 20th century system of California water infrastructure and a 19th century system of water rights, and that’s a problem,” said Frank, director of the California Environmental Law and Policy Center. Hanak and other researchers urged the Legislature to clarify that the State Water Board has the authority to enforce and curtail all water rights, including the oldest “senior” water rights, called riparian rights and pre-1914 rights. They also called for enabling the board to respond more quickly to dry conditions by relaxing requirements that limit when the agency can curtail diversions from rivers and streams.The researchers recommended renegotiating senior water users’ contracts for supplies from the Central Valley Project and the State Water Project, California’s two main systems that transport water from the Sacramento-San Joaquin River Delta. They said the current contracts promise larger water deliveries than the delta can support in dry years. Felicia Marcus, a researcher at Stanford University and former chair of the State Water Board, warned that “the crises ahead will make our crises today look like a picnic. So we need to invest in a system that will work for everyone.”
Tropical Cyclone “Freddy” — The longest-lived and one-of-a-kind tropical cyclone in history - History is being made in the world of tropical cyclones, as Tropical Cyclone “Freddy” continues to make its mark. Born northwest of Australia on February 3, 2023, Freddy is now being called one-of-a-kind and the longest-lived cyclone ever documented.
- This storm is something never seen before and will undoubtedly go down in history as an exceptional tropical cyclone.
- Freddy traversed the entire 10 000 km (6 200 miles) wide Indian Ocean and became the first Category 5 storm of 2023, while also breaking the record for the most amount of cyclone energy ever recorded.
- The cyclone has made two landfalls to western Madagascar and Africa’s Mozambique, resulting in multiple fatalities. As of March 3, at least 14 people have been killed — 7 in Mozambique and 7 in Madagascar.
- Freddy could possibly make another landfall in Mozambique at the end of the week, but the forecast is still too uncertain to be able to precise timing and exposed areas.
Freddy originated from a weak area of low pressure that was embedded in a monsoon trough of low pressure stretching east-west across the Timor Sea between northern Australia and southern Indonesia. On February 6, 15 days before it would make its first landfall in Madagascar, both the Australian Bureau of Meteorology and the US Joint Typhoon Warning Center reported the formation of Tropical Cyclone “Freddy” about 676 km (420 miles) NW of the northwest coast of Australia.In a rare but not unprecedented event, Freddy tracked across the entire Indian Ocean from east to west in almost a straight line with very little deviation in latitude. Along the way, Freddy underwent four separate rapid intensification cycles, the first southern hemisphere storm to do so. Freddy was also the first storm to reach the equivalent of Category 5 intensity on the Saffir-Simpson scale for 2023.Most notably, Freddy has set the record for having the highest accumulated cyclone energy (ACE) of any southern hemisphere storm in history. ACE is an index used to measure the total amount of wind energy associated with a tropical cyclone over its lifetime.Despite this, Freddy’s record-breaking streak is far from over. Forecast to crush the previous record set back in 1994 by Hurricane John’s 31-day streak across the Pacific, Freddy will retain tropical characteristics for at least another week. This has resulted in a puzzling storm track that seems more like a pinball than a tropical cyclone, said meteorologist Rachel Modestino of The Weather Network. Moving backward, Freddy is expected to double dip on Madagascar and Mozambique impacts. The storm aims to graze eastern Madagascar before heading back to Mozambique into the weekend, tallying its landfalls to at least three. This backtrack is abnormal as weather systems typically move from east to west in the Southern Hemisphere, but Freddy has moved the complete opposite for six days.Upon its approach to eastern Madagascar, the storm is expected to strengthen into a Category 1 cyclone, grow vertically and interact with the prevailing westerlies. Freddy will travel northwest through the work week towards Mozambique, where its third landfall is forecast by Friday or Saturday, March 10 or 11. At 06:00 am UTC on March 6, 2023, the center of Severe Tropical Storm “Freddy” was about 390 km (232 miles) SW of Antsirabe and 480 km (298 miles) SW of Fianaranstoa, Madagascar. The cyclone had a maximum 10-minute wind speed of approximately 92 km/h (57 mph) and was moving SW at a speed of 4 km/h (2.3 mph). Its minimum central pressure was 981 hPa, according to the La Reunion RSMC. Freddy’s movement should slow down significantly today under the influence of contradictory steering flows, the center said. A gradual turn towards the west and then the northwest should take place due to the strengthening of the subtropical ridge to the south and southwest of Freddy. The trajectory should be established permanently towards the northwest from Tuesday, March 7. The dispersion between models remains strong for the rest of the week, concerning both the speed of movement and the direction of movement. However, according to the present forecast, Freddy could approach Mozambique at a mature stage at the end of the week. In terms of intensity, Freddy is currently benefiting from rather favorable environmental conditions despite a small westerly shear stress which should cause its intensity to level off on Monday. Then, the intensification should remain slow at first because of the presence of mid shear, followed by the arrival in waters with less energetic potential.
Tropical Cyclone “Freddy” stalls on the coast of Mozambique, delivering catastrophic amounts of rainfall – video - Tropical Cyclone “Freddy” is delivering potentially catastrophic amounts of rainfall over the Quelimane region of Mozambique as the storm stalls just 30 km (18 miles) offshore with winds of 175 km/h (110 mph). Over the past couple of weeks, heavy rains and floods in Mozambique claimed the lives of at least 117 people. Freddy is now the longest-lasting cyclone ever recorded. As of March 10, it marks 33 days of lasting, since it was named on February 6 off the coast of north-western Australia.Up to 700 mm (28 inches) of further rainfall is expected near the landfall zone, which was already inundated by Freddy’s first passage over a week ago. Widespread flooding is expected over the entire region of northern Mozambique, and into southern Malawi where over 200 mm (8 inches) are possible.Impacts on inhabited lands during the next 72 hours are expected to be contained, but the slow movement of Tropical Cyclone “Freddy” will amplify its influence close to the landing zone in the province of Zambezia near Quelimane, according to RSMC La Reunion.In Mozambique, storm-force winds are expected over the maritime fringe of Zambezia district, becoming more present on Sunday morning, March 12, with hurricane-force winds likely in the immediate vicinity of the landing zone.The sea is also expected to be very rough (4 to 6 meters; 13 to 20 feet) and could become punctually high during the next night off Zambezia and Sofala regions. A surge estimated between 2 to 2.5 meters (6.5 to 8.2 feet) is possible near the landing zone at Quelimane, with the mouth of the river Eponym experiencing locally 3 to 3.5 meters (9.8 to 11.5 feet). Improvement is expected early next week.Heavy rains are expected to continue in the Zambezia district with between 300 and 400 mm (11.8 to 15.7 inches) expected on the near coast and between 100 and 200 mm (3.9 to 7.9 inches) in the interior (Zambezia and northern Sofala districts) in the next 24 hours. Within 72 hours, between 100 and 300 mm (3.9 to 11.8 inches) of rain could possibly spread over the two regions mentioned above with totals that could reach up to 500 mm (19.7 inches) locally, including over southern Malawi.
Heavy rains produced by Cyclone Yaku cause severe flooding and landslides in western Ecuador - (videos) Heavy rain caused by Cyclone Yaku produced severe flooding and landslides in western Ecuador, resulting in the deaths of at least 3 people. The worst affected was Chone Canton in Manabí Province. The National Meteorology and Hydrology Service of Peru (Senamhi) described Yaku as an unusual and unorganized tropical cyclone. The Risk Management Secretariat of Ecuador (SGR) reported that three people lost their lives due to the extreme weather, with two fatalities caused by a landslide and one due to the overflow of the Mosquito River. Furthermore, approximately 2 000 people have been affected, and one house has been destroyed. According to El Comercio, 90% of downtown Chone was flooded on March 7. In addition, damaged homes and crops were reported in nearby rural areas, forcing authorities to declare a state of emergency. Two additional rivers, Garrapata and Chone, have broken their banks, causing further damage and danger to residents in the area. National authorities have taken swift action to provide assistance and humanitarian aid to those affected. However, with the floods causing the evacuation of the Chone Basic Hospital, the situation remains challenging. Despite the efforts made by the authorities, further rainfall is forecast for March 9. This clockwise low pressure system is also responsible for the extreme rainfall in Tumbes, Piura, and Lambayeque, as well as the anticipated intensification of rains in La Libertad, Lima, and Ancash in the coming days. Senamhi specialists identified the formation of this system at the end of February and have been closely monitoring its progress and potential impacts. Cyclone Yaku, as it is known, is associated with the warming of the sea surface temperature and the second band of the Intertropical Convergence Zone (ITCZ).
At least 15 killed in Indonesia landslide, dozens missing - Al Jazeera - At least 15 people have been killed, with dozens missing after torrential rains and landslides hit Indonesia’s Natuna region on the edge of the South China Sea.Pictures and video from the national disaster mitigation agency (BNPB) showed landslides cascading through forested areas and dumping mud and debris on houses on the remote Serasan island.Bits of metal from torn-off roofs and fallen trees were also visible following the disaster on Monday.The location of the landslide and continued rain were complicating search and rescue efforts, the BNPB said on Twitter. Communications had also been cut off, it said.The Natuna Search and Rescue Agency’s head, Abdul Rahman, told the AFP news agency that 15 people had been confirmed dead and 50 were missing.“The weather is changing. The wind is still blowing hard. The tidal waves are high,” said Junainah, the spokesperson for the Riau Islands Disaster Mitigation Agency, who goes by one name.A 60-person search and rescue team left for the island on Monday afternoon, with the journey expected to take 7 to 8 hours by fast boat.BNPB spokesperson Abdul Muhari said a helicopter would be deployed on Tuesday to speed up the logistics delivery process. A main road in the area was also cut off because of the landslides, further hampering the evacuation process.Indonesia is prone to landslides during the rainy season, aggravated in some places by deforestation, and prolonged torrential rain has caused flooding in different areas of the archipelago nation.
At least 15 killed, 50 missing after large landslide hits Serasan island, Indonesia - A large landslide hit the Indonesian region of Natuna on Monday, March 6, 2023, leading to the deaths of at least 15 people. 50 others are still missing, as search and rescue teams struggle to reach the affected areas due to poor weather conditions and damaged communication lines. The landslide, triggered by the heavy rains, tore through a forested area, destroying homes, roads, and other infrastructure on the remote island of Serasan. The affected area is located on the edge of the South China Sea, approximately a five-hour boat ride from the capital of Natuna. A 60-person search and rescue team was deployed to the island on Monday afternoon, and a helicopter was scheduled to be dispatched today to help speed up the logistics delivery process. However, the search and rescue operations are proving to be a challenge due to the harsh weather conditions and downed communication lines. Sementara itu, Kepala Bidang Kedaruratan, Pusdalops PB dan Logistik BPBD Provinsi Kepulauan Riau, Junainah melaporkan bahwa data korban meninggal dunia masih berpotensi berubah. Sebab, hingga saat ini proses evakuasi masih berlangsung.#LongsorNatuna #BNPBIndonesia pic.twitter.com/oW0pAFbl3r — BNPB Indonesia (@BNPB_Indonesia) March 6, 2023 Abdul Rahman, the head of Natuna Search and Rescue Agency, told the AFP news agency on Tuesday that 15 people had been confirmed dead and 50 were still missing. This is up from 10 reported late on Monday. The Riau Islands Disaster Mitigation Agency’s spokesperson warned that the death toll may rise, given that the weather conditions are still unfavorable, with strong winds and tidal waves. According to the disaster mitigation agency, survivors are being evacuated from the Searasan region, and the search and rescue operations are ongoing.
Alaska’s Fisheries Are Collapsing. This Congresswoman Is Taking on the Industry She Says Is to Blame. - The late 1990s and early 2000s were boomtimes for halibut fishermen in Alaska. Over 80 million pounds of the flatfish were being harvested annually. Deckhands could earn $250,000 a season. Erik Velsko, 39, was one of those fishermen. But within a few years, the stock plummeted by more than half and the quotas for commercial fishermen were slashed accordingly. Velsko’s share has gone from 12,000 pounds annually to less than 4,000 pounds. His brother-in-law, who also fishes out of Homer, has had his quota cut from about 90,000 pounds to 20,000 pounds. Many fishermen have gotten out of the business altogether. Halibut wasn’t the only so-called directed fishery to experience such a catastrophic drop. The crab fleet — made famous in the reality show “Deadliest Catch” — has been mostly stuck in port for two years after the near total collapse of the snow crab population and the decades long decline of red king crab. This year both fisheries were closed, a major blow to many of Alaska’s coastal communities, who rely on related industries, including processing, to float their economies. At the same time, subsistence and sport salmon fishing on the state’s two largest rivers has been shut down because of dwindling salmon runs. There is one fishing industry that has not suffered. The fleet of nearly 250 trawl boats that catch groundfish (species such as pollock and yellowfin sole that congregate on or near the ocean floor), have recorded banner seasons — permitted to bring in between 3 and 4 billion pounds of fish annually for worldwide distribution. What makes this inequity especially jarring for the captains of halibut, crab and salmon boats is that the trawlers, some as long as a football field, which drag vast nets along the sea bottom, also scoop up millions of pounds of species they don’t actually want, and they throw most of it overboard no matter how valuable it might otherwise be. It’s called bycatch. Roughly two-thirds of the total halibut caught in the Bering Sea since 2006 has been bycatch taken in trawler nets most of which is dumped. In 2021, when subsistence fishermen were prohibited from fishing for chinook and chum salmon on the Yukon River, pollock boats swept up more than half a million individual salmon from the Bering Sea. And while red king crab and snow crab fisheries have been shuttered this year, the trawl industry has still been permitted to discard up to 4.3 million individual snow crab and 32,000 red king crab though they don’t always reach their cap. The reasons for the crash of the halibut, crab and salmon populations — a collective disaster that has sucked hundreds of millions of dollars from the Alaskan economy — have been hotly debated for years. But evidence is growing from government agencies including the National Oceanic and Atmospheric Administration, conservation groups and fisheries scientists that the trawl industry is causing greater damage to marine habitat than previously assumed and that the removal of vast quantities of pollock, an important source of food for other species such as fur seals and Steller sea lions, is causing disruptions to the larger ecosystem. At the same time, the groundfish fishery, which accounts for roughly 80 percent of the annual catch in Alaska, has come to dominate the regulatory system that sets fishing quotas for all species, Velsko says. In some ways, conflicts of interest are built into federal fisheries management and have become entrenched. Industry representatives or commercial operators with ties to the trawl fleet frequently serve on the North Pacific Fishery Management Council, the regional NOAA body which regulates the industry, and vote on policy that affects their sector. “It should’ve been more obvious two decades ago,” said Jim Balsiger, who served as NOAA’s top fisheries official in Alaska for 20 years before retiring in 2021. “Removing three to four billion pounds of fish from the Bering Sea every year for four decades is not a benign activity.” But, in the case of halibut and the other recently closed sectors, it has been the directed and subsistence fisheries that have had to limit their quotas to help restore depleted populations. The trawlers on the other hand have been allowed to maintain at or near the same levels of wasted bycatch for certain species. “The directed fishery has had to bear the burden of conservation,” Velsko says. Trawl industry representatives say that bycatch, which the industry is required by law to discard, is not the driving force behind recent crab, salmon, and halibut declines. They point to climate change and warming waters as well as natural population variability as the primary culprits. Over the last couple of decades, trawl vessels have significantly reduced waste and improved efficiency, according to Chris Woodley, executive director of the Groundfish Forum, which represents about 18 boats that fish in the Bering Sea and account for the majority of halibut bycatch. (Directed fisheries still bring in most of the halibut caught in Alaska waters when the Gulf of Alaska and Aleutian Islands fishing grounds are included.) Since the mid-1990s, the fleet has dramatically reduced the volume of fish — both targeted and non-targeted species — it tosses overboard. The discard rate has gone from about 50 percent to less than five over the last 20 years, according to Woodley.
Nations agree on ‘world-changing’ deal to protect ocean life - More than 190 countries have reached a landmark deal for protecting the biodiversity of the world’s oceans, agreeing for the first time on a common framework for establishing new protected areas in international waters.after years of stalled talks, will help safeguard the high seas, which lie beyond national boundaries and make up two-thirds of Earth’s ocean surface. Member states have been trying to agree on the long-awaited treaty for almost 20 years. Environmental advocacy groups heralded the finalized text — which still needs to be ratified by the United Nations — as a new chapter for Earth’s high seas. Just 1.2 percent of them are currently environmentally protected, exposing the vast array of marine species that teem beneath the surface — from tiny plankton to giant whales — to threats such as pollution, overfishing, shipping and deep-sea mining. “Two-thirds of the ocean has just been exposed to the will and want of all,” said Rebecca Hubbard, the director of the High Seas Alliance consortium of nongovernmental organizations that participated in the negotiations, in a telephone interview Sunday. “We have never been able to protect and manage marine life in the ocean beyond countries’ jurisdictions,” she said. “This is absolutely world-changing.”Despite U.N. members agreeing to a final version of the text, it is expected to take years for the treaty to be formally adopted by member states and come into force. The United States, in particular, is often slow to ratify environmental treaties — and often will decline to approve them at all.Once the treaty takes legal effect, nations can begin proposing the establishment of new marine protection areas. Even then, enforcement will remain a challenge. International waters today are a Wild West of sorts, with little to no policing. Illegal fishing runs rampant and some seafood vessels even use slave labor.Still, the treaty is a much-needed start to conservation on the high seas as the pressures on the world’s oceans increase.
Global carbon dioxide emissions reached new highs in 2022: report -- Carbon dioxide emissions related to energy production globally rose at a slower pace by 0.9 percent in 2022, reaching more than 36.8 billion metric tons. The International Energy Agency (IEA) released the report as climate experts emphasize the importance of global CO2 emissions, implying that they should be reduced in order to ensure that the latest climate targets set by the World Resources Institute in the United States are met. The IEA said that “emissions still remain on an unsustainable growth trajectory.” “The apparent slowdown in carbon emissions last year is no cause for celebration,” said Antoine Halff, a founding partner of Kayrros, an energy consulting firm that makes extensive use of satellite imagery. “This is not a positive achievement flowing from virtuous climate policies, but rather a byproduct of Russian aggression and its adverse effect on European energy-intensive industries on the one hand, and on the other hand the nefarious effect of China’s public health policies on its economy.” While emissions remain at a rate of growth that is unsustainable, the carbon dioxide rate in 2022 was significantly slower than in 2021, when it grew more than 6 percent. That slower rate of energy usage was a rebound from the pandemic, the agency said. But last year’s disruptions, from the war in Ukraine to work restrictions related to the pandemic in China, meant the “increase of global emissions was not as fast as the agency had feared it would be,” the IEA said. “Two major events contributed to reducing emissions last year,” said Halff. “China’s zero-covid policy and the war in Ukraine took a big bite off of world carbon emissions last year, but that was partly offset by a resurgence of coal as a substitute for scarce or pricey natural gas.” As a result, emissions in the U.S. grew by 0.8 percent due to a significant increase of extreme temperatures in the building sector as cutbacks in emissions came from other areas, such as solar and wind energy. While other countries reduce their natural gas usage, the United States increased its fuel usage by 89 million metric tons.
What If the World Cannot Save the World from Climate Change? -Yves here. This sort of well-meaning piece makes me want to tear out my hair. Yes, dealing with climate change is ultimately a governance problem, but not in the way John Feffer describes.First, almost pervasively, activists who are correctly pushing for action to contain global warming fail to admit the scale and severity of changes needed in terms of daily activities and commerce, with the richest nations and individuals needing to make the biggest adjustments.Second, there are no proposals of remotely sufficient scale. There’s way too much reliance on private sector incentives, Green New Deal hopium, and nowhere enough prohibition. Martin Weitzman’s classic public goods analysis looked at when the approach for curtailing externalities (in his example, pollution) should use taxation as opposed to prohibition. When the societal cost is higher than private costs, prohibition is the answer. Climate change induced havoc and loss of life to humans and other species (for instance, greater disease proliferation under higher average temperatures) should trump any private cost questions. Yet no one will even propose severely restricting private jet flights.Third, even if the collective “we” had some sort of plan, we can’t implement in it in a democratic or even nominally democratic system like America’s. We would need to adopt war-level-mobilization approaches. That includes creating winners and losers on a sudden and very large scale. There isn’t remotely the social consensus to move in that direction.And that’s before getting to national winners and losers. Consider this section from Conor’s post yesterday on NATO v. Russia in North Africa, quoting Yale Environment 360:Atman Aoui, president of the Moroccan Association for Mediation, an NGO, sees large renewable projects such as the Noor solar park as part of a wider attempt to take control of desert regions that have previously been the domain of tribal groups. The sheer scale of the projects is “challenging assumptions that a low-carbon energy transition is inherently progressive,” he says.Noting the scheme’s use of large amounts of water, he adds, “The irony that a project intended to mitigate climate change is only worsening the effects of climate change in one of Morocco’s poorest and most water-stressed regions is not lost on residents.”That is before getting to the question of whether initiatives like this really are net positives, or are just the climate change version of Larry Summers’ recommendation that rich countries send their garbage barges to Africa.To give a first world micro-example of this problem, I just ran into the Tesla charging station in the heart of Mountain Brook Village. Telsa never should have been allowed to build brand-specific charging stations! It’s wasteful and inefficient to have duplicative charging infrastructure. But the US will just about never stand up to commercial interests.Fourth, on top of the picking industrial/commercial winners and losers problem, from a governance perspective, we have the problem of conflicting obligations: family/tribal, local communities, national, global. Humans have seldom been good at working out how to manage competing levels of responsibility. The tensions and contradictions get greater as societies become more complex.
Why EPA's huge social cost of carbon might fail to halt CO2 -EPA is about to finalize a sky-high value for carbon that could be used whenever the federal government leases land to oil drillers or buys new mail trucks.But its effect on actual policymaking may be limited.The agency’s stratospheric social cost of carbon — at $190 a ton — could fail to strengthen regulations, cut fossil fuel production on federal lands or make buying decisions friendlier to the climate, according to experts — at least without further legal and regulatory changes.“Some people say the social cost of carbon is the most important number you’ve never heard of. There’s another story saying it’s the least important number that you always hear about,” said Max Sarinsky, a senior attorney at the Institute for Policy Integrity at New York University. “I think maybe both of those are true.”Draft social cost of greenhouse gas metrics for carbon, methane and nitrogen oxides are now under review by a panel of outside experts. The proposed figures are sharply higher than those now being used by the Biden administration — about $51 a ton for carbon. EPA’s draft metric aims to reflect a decade of research on the costs of greenhouse gases on society. The last science-based update was in 2013.It’s unclear when the agency will release its final value. When it does, the whopping metric could be used across the federal government, including in upcoming EPA rules, Energy Department efficiency mandates, Department of Transportation fuel efficiency rules and environmental reviews for major projects.Recent climate guidance demands that agencies monetize the climate consequences of projects using the “best available” social cost of greenhouse gases (Climatewire, Jan. 10).But it might fail to live up to expectations — of supporters and critics alike. The idea that the metric could provide an internal carbon tax that drives all aspects of federal decisionmaking may never materialize.Lawmakers on both sides of the political divide have cast the social cost of greenhouse gases as a powerful regulatory tool. Sen. Shelley Moore Capito (R-W.Va.) introduced legislation in the last Congress to bar agencies from using it for fear it would hamstring fossil fuel development.Sen. Sheldon Whitehouse (D-R.I.) said the metric would embed climate change considerations into everything the U.S. government did.“A robust social cost of carbon should be used across government decision-making, not just in regulations,” Whitehouse told E&E News in an email this week. “Think grants, permitting, purchasing, royalty rates, investment decisions, and trade agreements, just to name a few.”
Midwest CO2 pipeline rush creates regulatory chaos - A complicated question is looming in the Midwest over plans to build thousands of miles of carbon dioxide pipelines: Who would regulate them? The answer could affect the Biden administration’s hopes for a massive buildup of carbon sequestration projects, which would in many cases be supplied by those pipelines. Safety advocates say there are loopholes in federal safety regulations that could leave the lines largely unregulated. Pipelines being converted from shipping natural gas to carrying CO2 aren’t covered by current rules, for example. Existing standards to move carbon dioxide for enhanced oil recovery also may not be adequate for new pipeline projects, critics say. “There’s a lot of ambiguity,” said Bill Caram, executive director of the Pipeline Safety Trust, an advocacy group. “The way the regulations are written leaves it open.” Pipeline companies scoff, saying the Department of Transportation, through its Pipeline and Hazardous Materials Safety Administration (PHMSA), has clear jurisdiction over the lines planned in the Midwest. “There is a misconception that somehow we would not be subject to new regulations, and that is just not the case,” said Andy Bates, a spokesperson for Navigator CO2 Ventures, which is seeking approval from regulators in several states to build the Heartland Greenway, a 1,300-mile pipeline network that would take CO2 captured from biofuel makers across the Midwest to a sequestration site in central Illinois. But uncertainty about PHMSA’s jurisdiction is adding to backlash against Navigator and two other Midwest pipeline projects. Opponents have been pushing for a moratorium on construction of the projects until new federal regulations for carbon dioxide pipelines are completed. PHMSA has begun an overhaul of its existing rules, but the agency isn’t projecting a first draft before October 2024. And PHMSA regulations often take years. The jurisdiction issue is creating confusion for some state regulators. In January, the Illinois Commerce Commission, which is weighing approval of Navigator’s project, sent a formal request asking PHMSA whether the federal agency would regulate the pipeline once built. Commission spokesperson Victoria Crawford said it also asked “whether and to what extent PHMSA inspects such pipelines.” A PHMSA spokesperson said the agency is reviewing Illinois’ request, adding that it will “need to investigate the characteristics of the pipeline facility.”
US carbon pipeline faces setback as residents refuse to cede land rights - (Reuters) - Navigator CO2 Ventures’ proposed carbon pipeline project in the U.S. Midwest is struggling to secure a site to store millions of tons of greenhouse gas it hopes to collect from the region’s ethanol plants, as residents refuse to give up land rights over fears the underground reservoirs could leak, according to documents reviewed by Reuters. The issue could slow the project, one of three carbon pipelines planned in the Midwest that aims to help the ethanol industry reduce its climate footprint in line with federal government efforts to decarbonize the U.S. economy. The projects are a major test of the viability of carbon capture and storage as a climate solution. In Illinois, Navigator has restarted the permit process for its Heartland Greenway pipeline in part due to difficulty getting land rights from residents living above the underground formations where it hopes to store up to 15 million metric tons annually of carbon dioxide, according to a Reuters review of the state regulatory docket and interviews with landowners along the proposed route. Residents along the proposed route of the pipeline, as well as along the routes of two other carbon pipelines proposed by Iowa-based Summit Carbon Solutions and Denver-based Wolf Carbon Solutions, have expressed concern about damage to their farmland from installing the pipeline and safety risks if the pipeline were to leak. Some living above Navigator's proposed sequestration site are also worried that carbon dioxide stored 5,800 feet underground could seep upward and contaminate their groundwater with carbonic acid, which is formed when carbon dioxide meets water. Acidification of groundwater can kill plants or sub-soil animals and increase concentration of metals in drinking water, according to research by the Intergovernmental Panel on Climate Change.
100+ Groups Urge Congress to Abandon 'Carbon Utilization Fantasy' - More than 100 organizations on Monday urged the congressional sponsors of a new proposal that would boost the tax credit for certain carbon capture projects to shift their focus to solutions that will actually address the fossil fuel-driven climate emergency.The groups—including 350.org, Beyond Plastics, Center for Biological Diversity, Food & Water Watch, Indigenous Environmental Network, Michigan Environmental Justice Coalition (MEJC) Action!, Physicians for Social Responsibility, Science and Environmental Health Network (SEHN), and Waterspirit—oppose the Captured Carbon Utilization Parity Act (S. 542/H.R. 1262).Introduced last week by Sens. Sheldon Whitehouse (D-R.I.) and Bill Cassidy (R-La.) and Reps. David Schweikert (R-Ariz.) and Terri Sewell (D-Ala.), the legislation would increase the 45Q tax credit for carbon capture and utilization (CCU) "to match the incentives for carbon capture and storage (CCS) for both direct air capture (DAC) and the power and industrial sectors."The groups sent a letter to the four sponsors arguing that:This bill does not advance climate solutions, but is rather a giveaway to fossil fuel companies and other corporate polluters under the guise of climate action. Promoting the utilization of captured CO2 in petrochemicals, plastics, and fuels, as your legislation would encourage, will perpetuate environmental justice harms and subsidize the oil and gas industry to do it. Rather than perpetuating these climate scams, we encourage you to support the elimination of subsidies for the fossil fuel industry instead of enriching them through carbon capture schemes.In addition to stressing that such projects consume a lot of water while producing emissions and chemical waste—further endangering frontline communities that are disproportuantely home to people of color and low-income individuals—the organizations pointed out that "carbon capture has a long history of overpromising and under-delivering.""The overwhelming majority of captured carbon to date has been used to increase oil production via enhanced oil recovery (EOR)," the letter highlights. "The myth of a massive carbon management paradigm that uses and re-uses carbon dioxide on any large scale serves only to greenwash the reality of how carbon dioxide is used: for oil production.""As laid bare in an investigation from the U.S. Treasury Inspector General for Tax Administration, the 45Q tax credit is rife with abuse as credits are improperly claimed," the letter further notes. "Moreover, documents uncovered by the House Oversight Committee's investigation into major oil companies and climate disinformation revealed that the biggest proponents of CCS also understand the technology to be costly, ineffective, and requiring continued and increasing government subsidization.""The myth of a massive carbon management paradigm that uses and re-uses carbon dioxide on any large scale serves only to greenwash the reality of how carbon dioxide is used: for oil production."Citing a report from the United Nations' Intergovernmental Panel on Climate Change, the organizations also explained that "in contrast to things like solar power and batteries, carbon capture is not the kind of technology that gets significantly cheaper over time, and increasing public subsidies to spark a carbon management industry will not result in a self-sustaining system."
Greenlane wins contract for RNG pipeline project in Ohio - Greenlane Renewables Inc. is pleased to announce that it has been awarded a $7.2 million (US$5.4 million) contract through Synthica St Bernard LLC for a food waste to pipeline RNG project in Ohio, United States. Greenlane will supply an integrated sulfur removal and water wash system for upgrading biogas generated from food waste streams into pipeline-spec renewable natural gas (RNG) for direct injection into the local natural gas pipeline network. The project will process approximately 190,000 annual tons of organic waste from nearby food and beverage manufacturers. The project is expected to generate approximately 250,000 MMBtus (million Btus) of pipeline-quality RNG each year that will be injected into a local natural gas pipeline on the regional distribution
Wind, solar, and batteries increasingly account for more new U.S. power capacity additions --Wind, solar, and battery storage are growing as a share of new electric-generating capacity each year. In 2023, these three technologies account for 82% of the new, utility-scale generating capacity that developers plan to bring online in the United States, according to our Preliminary Monthly Electric Generator Inventory. Utility-scale solar capacity didn’t start ramping up in the United States until 2010. As the cost of solar panelsdropped substantially and state and federal policies introduced generous tax incentives, solar capacity boomed. As of January 2023, 73.5 gigawatts (GW) of utility-scale solar capacity was operating in the United States, about 6% of the U.S. total. Just over half of the new U.S. generating capacity expected in 2023 is solar power. If all of the planned capacity comes online this year as expected, it will be the most U.S. solar capacity added in a single year and the first year that more than half of U.S. capacity additions are solar. Prior to 2000, U.S. wind capacity was negligible. Similar to solar power, tax incentives, lower turbine construction costs, and new renewable energy targets helped fuel the growth of U.S. wind capacity. As of January 2023, 141.3 GW of wind capacity was operating in the United States, about 12% of the U.S. total. Developers plan to add another 7.1 GW in 2023.The majority of U.S. wind capacity is located in the blustery, central part of the country, which also offers wide-open prairies that can accommodate large wind farms. Offshore wind farms along the country’s coastline offer significant potential for future wind capacity growth. This year, developers are planning one new offshore wind farm.Wind and solar are intermittent sources of generation; they only produce electricity when the wind is blowing or the sun is shining. Because batteries can store electricity from wind and solar generators for later use, battery storage systems are increasingly installed with wind and solar projects. In 2023, developers plan to add 8.6 GW of battery storage power capacity to the grid, which would double total U.S. battery power capacity.Although significant renewable capacity has been added in the past decade, differences in the amount of electricity that different types of power plants can produce mean that wind and solar made up about 17% of the country’s utility-scale capacity in 2021 but produced only 12% of our electricity.
This geothermal startup showed its wells can be used like a giant underground battery | MIT Technology Review -In late January, a geothermal power startup began conducting an experiment deep below the desert floor of northern Nevada. It pumped water thousands of feet underground and then held it there, watching for what would happen.Geothermal power plants work by circulating water through hot rock deep beneath the surface. In most modern plants, it resurfaces at a well head, where it’s hot enough to convert refrigerants or other fluids into vapor that cranks a turbine, generating electricity. But Houston-based Fervo Energy is testing out a new spin on the standard approach—and on that day, its engineers and executives were simply interested in generating data. The readings from gauges planted throughout the company’s twin wells showed that pressure quickly began to build, as water that had nowhere else to go actually flexed the rock itself. When they finally released the valve, the output of water surged and it continued pumping out at higher-than-normal levels for hours.The results from the initial experiments—which MIT Technology Review is reporting exclusively—suggest Fervo can create flexible geothermal power plants, capable of ramping electricity output up or down as needed. Potentially more important, the system can store up energy for hours or even days and deliver it back over similar periods, effectively acting as a giant and very long-lasting battery. That means the plants could shut down production when solar and wind farms are cranking, and provide a rich stream of clean electricity when those sources flag. There are remaining questions about how well, affordably, and safely this will work on larger scales. But if Fervo can build commercial plants with this added functionality, it will fill a critical gap in today’s grids, making it cheaper and easier to eliminate greenhouse-gas emissions from electricity systems.
Ethanol Group Representative Says Industry Close to Making Permanent E15 Fix -- With summer E15 restrictions about to kick in, federal lawmakers are poised to reintroduce a legislative fix within the next week, an official with the Renewable Fuels Association told an ethanol industry audience during an ethanol forum held in LaVista, Nebraska, on Tuesday. The EPA last week launched a public-comment period on a proposal to grant petitions from eight states to make a change in federal law to allow year-round E15 sales permanently in those states. On Monday, attorneys general in Iowa and Nebraska filed an intent to sue with EPA Administrator Michael Regan if the agency does not change the effective date of granting those petitions from 2024 to 2023. Troy Bredenkamp, senior vice president of government and public affairs for the RFA, said during the Nebraska Ethanol Board's Emerging Issues ethanol forum that the states' petitions have jump-started efforts to find a national fix. "I think the short answer is, I think we're closer than we've been in a long time," Bredenkamp said during a panel discussion. "And much of that has to be attributed to the state effort. When those state governors petitioned their government to opt out of the RVP program last April, that really set into motion something that a lot of people weren't expecting." EPA is set to grant the petitions of Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota and Wisconsin. Last November, E15 legislation, the Consumer and Fuel Retailer Choice Act of 2022, was introduced in the U.S. Senate by Sen. Deb Fischer, R-Neb., and then in the House in December by Rep. Angie Craig, D-Minn. Bredenkamp said a divided Congress in 2023 will make it difficult to pass any legislation, but federal lawmakers are poised to take another shot at the bill. "It was a long shot to get it done in the lame duck. We were pretty close," he said. "We were closer than we've been in a while, but at the end of the day, some negotiations with the merchant refiners -- they were just asking for way too much. So, fast forward to the new Congress. We're in a position right now, especially with the decision we saw on the EPA last week, to really ratchet up the pressure again to get something done legislatively. We anticipate reintroduction of the same bill that we introduced last year to happen within the next week."
NYC Pol Wants Feds to Rein in Faulty Lithium-Ion Batteries –The federal government must establish safety standards for lithium-ion batteries and even use its Homeland Security and Border Patrol agencies to keep substandard power packs from getting into the country, a Bronx member of Congress said yesterday.Amid an increase in documented fires caused by the powerful batteries, Rep. Ritchie Torres introduced legislation to require the Consumer Product Safety Commission to establish safety standards for the batteries, a move, he said, would protect New Yorkers, including the city’s nearly 65,000 delivery workers who rely on the batteries to power the electric mobility devices that are essential for their jobs.“My legislation … is an expression of the government’s highest obligation, which is public safety,” said Torres, whose borough experienced yet another fire over the weekend, when seven people were injured and a neighborhood grocery store and Laundromat were reduced to rubble.Though not in his bill, Torres also called on the U.S. Customs and Border Patrol and the Department of Homeland Security to prevent defective or uncertified batteries, such as those not inspected by the internationally known Underwriters Laboratory, from entering country.“We must hold manufacturers accountable for producing safer devices and safer batteries [and] hold online marketplaces accountable for preventing the sale of dangerous bikes and devices,” Torres said. “And Customs and Border Patrol and DHS [must block] the importation of these dangerous devices.”Torres’s call echos one made by the FDNY last month, which similarly asking for the Consumer Product Safety Commission, which has limited power, to intervene. FDNY Commissioner Laura Kavanagh wrote that the consumer regulator should “be proactive in … seizing imported devices at the ports that fail minimum industry standards, levying penalties against manufacturers who fail to inform [regulators] of hazards posed by their products, and seeking additional recalls of unsafe products.” So far this year, there have been 33 fires that the FDNY attributes to lithium-ion batteries, causing 42 injuries and two fatalities. Last year, 216 fires caused 147 injuries and six fatalities, according to city stats. But the FDNY has not been able to determine how many of the fires were associated with electric bikes as opposed to other ubiquitous items like laptops, mopeds, scooters, or iPhones. Electric Citi Bikes, for example, use lithium-ion batteries yet have had no reported fires in the past two years, but then again, the Citi Bike fleet uses certified batteries that are recharged in a controlled setting.
As coal disappears, mining states launch rescue efforts - West Virginia’s governor is begging. Lawmakers are pleading. And power plant workers are scrambling to save their jobs.But one of West Virginia’s largest coal plants may close this spring despite the rescue efforts of political leadership in one of America’s top coal mining states.The fate of Pleasants Power Station has become a litmus test of West Virginia’s ability to preserve a fuel that has long underpinned its economy. The fight is being repeated in coal mining states across America. As coal disappears from the country’s electric mix, mining states are launching efforts to save what remains of a once mighty industry.Indiana, Kentucky and Utah are weighing legislation to make it harder to close coal facilities. Montana lawmakers have tried to penalize utilities that didn’t keep up with maintenance of the state’s largest coal plant. And Wyoming has mandated that power companies supply some of their electricity using coal plants equipped with carbon capture.In West Virginia, Gov. Jim Justice promised to do “any and everything” to keep Pleasants Power Station running.“Think of the coal miners getting up every day, going to work every single day. Think of the coal miners this is affecting,” Justice, a Republican who made a fortune in the coal industry, said during a press conference last month. “We need it so, so, so badly,”The wave of preservation efforts comes as coal consumption in the U.S. continues to tumble. Federal energy forecasters predict coal use this year will fall to levels not seen since the Eisenhower administration (Climatewire, March 3). But coal-reliant states remain undeterred, launching bids to save power plants from retirement — and thus complicate America’s efforts to green the grid.States that mine the fuel remain disproportionately reliant on coal for their electricity supplies. Take West Virginia. Almost 90 percent of the state’s electricity generation came from coal last year, according to the U.S. Energy Information Administration. In Wyoming and Kentucky, that figure was around 70 percent.By contrast, coal accounted for 20 percent of power generation nationally in 2022 — less than the 22 percent generated by the combination of wind, solar and hydro, according to EIA estimates.The climate impacts are substantial. Wyoming, West Virginia, Kentucky, Montana, North Dakota and Indiana — six states ranking in the top 10 for annual coal production — account for 16 percent of American power sector emissions. But they are home to only 5 percent of the U.S. population.
Coal is expensive. West Virginia wants more of it. - West Virginia is at a crossroads on coal.The state’s upcoming decisions on its iconic fossil fuel could have major implications for reducing planet-warming pollution, the future of coal in the eastern United States, and how much people pay for electricity in the region,writes POLITICO’s E&E News reporter Miranda Willson.The rub: As coal-fired power plants across the country retire at record rates, West Virginia is trying to ramp up operations at three of its major power plants.The state’s utility regulator argues that the move could lower costs for customers by maximizing in-state energy and limiting power purchases from the regional electricity market, which tend to be more expensive.But the company running these plants, American Electric Power, says it's already struggling to secure enough coal supplies. That’s in part because mining companies are increasingly shipping their product to lucrative markets overseas. Running plants more often would require a hefty increase to customers’ monthly bills, the company said.The utility regulator denied the company’s request to increase power rates and convened a task force to find a solution. Environmental advocates and others argue that extending the life of West Virginia coal, which accounts for about 90 percent of the state’s electricity generation, will only drive up prices and hurt the planet.The price of coal in the U.S. has nearly quadrupled in the last three years. And over the last 15 years, electricity rates in West Virginia have risen faster than the national average.Boosting coal-plant production could also significantly increase the carbon pollution causing the climate crisis. According to federal data, one of the plants in question produced more than 11.5 million metric tons of carbon dioxide in 2021, making it one of the 10 dirtiest plants in the country.Coal backers argue that the fuel is necessary until the state’s power system is updated to accommodate an influx of cheaper natural gas, wind and solar power.
EPA proposes 'strongest ever' limits on coal plant discharges - Coal-fired power plants are facing another crackdown as the Biden administration moves forward with plans to limit toxic discharges into lakes and rivers in a major strike at one of the largest sources of industrial water pollution. EPA is pursuing stricter limits on wastewater released by coal plants, unraveling a controversial move by the Trump administration to loosen those standards. The agency said Wednesday that the changes will see pollutants in discharged wastewater reduced by around 584 million pounds, in what EPA Administrator Michael Regan called the “strongest ever” limits offered under any president. Speaking with reporters Tuesday afternoon, Regan said that the decision was rooted in deep concerns around public health, as well as a wider mandate to aid low-income communities and people of color. He cited the Biden administration’s directive to “follow the science” and said hard data had prompted the proposal. Coal-fired power plants are the source of at least 30 percent of all national industrial water pollution, a number that is higher in regions like the Southeast. EPA’s latest crackdown will run through effluent limitation guidelines (ELGs), a mechanism allowing the agency to regulate wastewater associated with specific industries. That includes steam electric plants, including coal-fired power facilities. Regulators are targeting that subset of plants through the new ELGs, which hit several major wastewater streams including flue gas desulfurization wastewater, bottom ash transport water and combustion residual leachate. Additionally, EPA is looking to establish a new group of definitions for legacy wastewaters, or streams that are present in surface impoundments before more aggressive limitations underlined in a permit go into effect. The agency said it will seek public comment around whether to develop tighter standards for those legacy wastewaters. The new ELGs are intended to address a long-running environmental crisis that has seen toxic industrial pollution threaten bodies of water across the country. Coal-fired power plants often use water to flush ash out of their boilers, with the resulting liquid discharged into ponds. That water can be laced with everything from arsenic and mercury to lead and hexavalent chromium, all of which carry significant health risks. Those ponds overflow, bringing wastewater into other nearby bodies of water and posing major health and environmental problems, especially when it reaches drinking systems. The Biden administration is moving to head off such crises. But EPA also caveated that it will offer some flexibility as it rolls out its proposal. The agency said plants would have additional time if they were in the process of installing technologies to be in compliance with different standards introduced under prior presidential administrations. Moreover, plants that are in the process of closing or moving to natural gas can continue to meet those prior standards. To that end, EPA is also finalizing a regulation allowing plants to opt into the early retirement subcategory, phasing down their operations by 2028. Officials declined to speak to specifics about how many plants might be interested in taking that route, but said that conversations with industry members had indicated that a number of operators were hoping to take advantage of the opportunity.
As coal declines, oil and gas emerge stronger than ever - Call it a tale of America’s two energy transitions. In one, utilities are rapidly closing coal plants, with consumption of the fossil fuel falling to levels not seen since the Eisenhower administration. In the other, American oil and gas drillers are on track to set new pumping records, driven by high demand at home and abroad. Analysts say the dynamic highlights the challenges facing the Biden administration as it attempts to green the world’s largest economy. The Inflation Reduction Act is injecting a massive amount of cash into clean energy technology, but the transition is uneven. Electric cars and heat pumps are replacing gas cars and furnaces — but they also drive up electricity demand on America’s grid, requiring vast amounts of energy that can’t yet be provided by zero-carbon sources. The U.S. Energy Information Administration predicts coal will account for 17 percent of American power generation this year, compared to 24 percent for renewables and 37 percent for natural gas. Such a result would have been nearly unthinkable 15 years ago, when coal accounted for almost half of U.S. power generation. But in 2023, American coal consumption will hit a low of 434 million tons, according to EIA. The last time Americans burned so little coal was 1957, when Dwight Eisenhower was president and the country’s population was less than half of what it is today.More than a third of U.S. coal capacity has retired since 2012, according to EIA figures. The reasons for that plummet are numerous.Many coal facilities are just plain old — the average coal plant in the U.S. was around 45 years old in 2021. When faced with the need to upgrade aging coal plants to meet environmental regulations, many power companies simply shut them down.But the biggest reason for coal’s demise is the growth of cheaper — and often cleaner — alternatives. A wave of cheap gas initially knocked coal from its roost as the power sector’s fuel of choice. Recent years have seen utilities increasingly swapping coal for renewables.The same is not yet true for oil and gas.While electric vehicle sales have accelerated, sport utility vehicles and trucks remain the most popular cars in America. Four of the top five selling models in 2022 were trucks or SUVs, according to CNBC. Americans are also driving and flying more, helping oil demand recover from a low during the early days of the pandemic.Natural gas demand is also on the rise, with higher consumption from power plants helping the country set a new record for gas use in 2022.The result is a shift in America’s emissions profile.In 2005, coal burning produced 2.1 billion metric tons of carbon dioxide, or more than a third of the country’s CO2 emissions associated with fossil fuel consumption, according to EPA figures. That same year, natural gas emissions accounted for 1.2 billion metric tons of CO2 emissions.But by 2021, gas emissions had risen in coal’s place. Coal burning produced 957 million metric tons of CO2 emissions, while gas accounted for 1.6 billion metric tons.Oil, meanwhile, remains the leading source of CO2 emissions in the U.S., reaching 2 billion metric tons in 2021.
BP CEO defends spending plans as climate protesters block entrance to London energy conference — BP CEO Bernard Looney on Tuesday sought to defend the firm's fossil fuel spending plans, reaffirming the need for an "orderly" energy transition and highlighting the oil giant's commitment to net-zero emissions by 2050. His comments came shortly after dozens of protesters blocked an entrance to the InterContinental London Park Lane hotel on the first day of International Energy Week, a global energy conference that brings together senior figures from across the industry. Holding banners reading "Climate Criminals Enter Here" and "No New Oil," activists from climate action group Fossil Free London gathered outside the luxury hotel to protest BP's continued fossil fuel investment. Their chants could be heard throughout the opening sessions of the conference. "Energy is the lifeblood of society," BP's Looney said as he addressed those in attendance. "An energy system that works is one that provides energy that is secure and affordable as well as lower carbon — what's known as the energy trilemma," Looney said. "It is a complex and, indeed, it is a massive challenge," he continued. "To solve it, action is clearly needed to accelerate the energy transition and at the same time, that transition has got to be orderly. We need to do both. We need to invest in the energy transition and — not or — we need to invest in today's energy system, which is predominantly an oil and gas system."
New York nuclear plant now producing green hydrogen in first for the U.S. - Clean hydrogen production is underway at the Nine Mile Point Nuclear Station in Oswego, New York. The facility is the first-of-its-kind in the United States to generate clean hydrogen using nuclear power. This nuclear milestone is part of a $14.5 million cost shared project between the U.S. Department of Energy (DOE) and Constellation to demonstrate how nuclear power plants can help lower the cost and scale-up the production of clean hydrogen. Constellation will use the hydrogen generated on-site to help cool the power plant. DOE supported the construction and installation of a low-temperature electrolysis system at the Nine Mile Point nuclear power plant that leverages the facility’s existing hydrogen storage system.Constellation’s new Hydrogen Generation System produces hydrogen without emissions by using electricity generated at the plant to split water into hydrogen and oxygen. The system started producing clean hydrogen in February to supply hydrogen for plant operations—a process that was previously dependent on trucked-in deliveries of hydrogen made from fossil fuels.
Federal and Tennessee leaders back plans for more nuclear power in state — Federal and state leaders are pushing plans to build a new type of nuclear reactor here that they claim could provide a clean source of power and an economic development tool for Tennessee. The initiative comes more than 40 years after Congress killed plans for a previous type of nuclear plant along the Clinch River. "This is the future of energy in America," Gov. Bill Lee said Friday after touring the site where the Tennessee Valley Authority is preparing to build up to four small modular reactors in the next decade. During a tour of the 935-acre site Friday, Lee voiced strong support for the new smaller, factory-built reactors that TVA wants to locate just a few miles from where Oak Ridge scientists developed some of the world's first nuclear reactors after World War II. "Tennessee leads the nation in many ways, and today we are talking about Tennessee leading the nation in power generation," Lee told reporters. "We know that when TVA builds out these sites with these reactors over the next few years, there will be an ecosystem that will be created around that power generation. Tennessee needs to be the place where that happens." Lee has created a $50 million "fast track" fund for the nuclear power industry to encourage nuclear equipment makers to locate and grow in Tennessee, and he expects thousands of jobs could be created over time if the small modular reactors prove to be successful and Tennessee attracts some of their manufacturers. "No other state in the country comes close to Tennessee's legacy, resources and potential to be a leader in nuclear energy," Lee said in a Feb. 6 speech to state lawmakers as he announced his $50 million incentive plan for the industry.
TVA plans to make Tennessee leader in next-generation nuclear energy -- Just weeks after Gov. Bill Lee proposed investing $50 million to recruit companies to make Tennessee a leader in nuclear energy, the Tennessee Valley Authority gave the public its first look at the Clinch River Nuclear Site that could house the first next-generation reactor on TVA's grid. Lee and U.S. Rep. Chuck Fleischmann, R-Chattanooga, joined the March 3 tour of the site a little over 30 miles west of Knoxville, near Oak Ridge. Fleischmann was appointed chair of the House Appropriations Energy and Water Development Subcommittee in January, and is known as one of Congress' foremost experts on nuclear energy. "The rest of the world is moving forward on nuclear," Fleischmann said. "We need to be in this area. As (TVA CEO) Jeff Lyash has pointed out time and time again, the world's demand for electricity is going to continue to increase." In his State of the State address on Feb. 6, Lee proposed investing $50 million to recruit companies to put Tennessee at the forefront of nuclear power generation. Lee said nuclear power could be a solution for advancing clean energy in the country while also being reliable and cheap. "There's a lot of conversation around the world about energy independence, about what is clean energy (going to) look like going forward," Lee said during the Clinch River Nuclear Site visit. "TVA is leading the country in the development of these future reactors. We want Tennessee to be leading the country and creating the ecosystem that can surround the development of these reactors." The Clinch River reactor would be a small modular reactor, a more compact and more easily constructed facility than the large nuclear power plants marked by cooling towers most people associate with nuclear energy. If all goes according to plan, the Clinch River plant could be operational sometime in the 2030s, TVA senior technical advisor for the project Joe Shea said.
Defenders claimed corrupt energy bill would save money. Prosecutor smashed that claim, too - Ohio Capital Journal — On the stand in federal court, one witness after another testified that he supported a massive utility bailout because it would save consumers more than $1 billion. But as they did with so many other claims, prosecutors on Thursday appeared to demolish that one as well. The bailout legislation, House Bill 6, is at the center of the racketeering trial of former Ohio House Speaker Larry Householder and former Republican Party Chairman Matt Borges. They’re accused of facilitating a scheme to use $61 million in utility money to make Householder speaker. Fresh off of his election to the post at the start of 2019, Householder rammed through a $1.3 billion bailout that mostly went to prop up failing nuclear and coal plants owned by FirstEnergy Solutions, a subsidiary of Akron-based FirstEnergy.Through more than five weeks of testimony, a parade of the bailout’s supporters claimed that it was something of a free lunch: Even though it would pay massive ratepayer dollars to the utility, customers would still end up saving money. The supporters pointed to a fiscal note produced by the Legislative Service Commission saying that the savings would come from the bill’s elimination of fees associated with energy efficiency and renewables.Throughout the trial, U.S. District Judge Timothy Black limited testimony about the virtues or ills of HB 6, saying that he wanted to keep the proceeding from becoming a referendum on the bill. But its supporters still underlined the supposed savings as a major selling point.“I wanted to do away with costly mandates,” Householder said on the witness stand as he tried to argue that he supported the bill not for personal gain, but because he thought it was good policy for his fellow Ohioans.Rep. Bill Seitz, R-Cincinnati, also voted for HB 6. He said eliminating the mandates would save consumers $2.3 billion. Two Another Republican who voted for the bill, Reps. Brett Hillyer, also took the witness stand and cited the purported savings it would create for consumers.Pat Tully, too, touted the purported savings.He was working as a senior official for the Public Utilities Commission of Ohio. On Jan. 25, 2019, a lobbyist for FirstEnergy — a company he was supposed to be regulating — forwarded Tully’s resume to Householder’s right-hand man. Within weeks, Tully was working for the Republican Caucus, helping PUCO Chairman Sam Randazzo draft the bailout legislation.Randazzo also was supposed to be regulating FirstEnergy and it’s unclear whether PUCO policyprevented him from drafting a bailout law benefiting it. But he later resigned after the FBI raided his Columbus condo — and after FirstEnergy admitted it paid him $4.3 million right around the time Gov. Mike DeWine appointed him to the state’s top regulatory post.On the witness stand in the racketeering case, Tully claimed that getting rid of efficiency and renewable mandates would save ratepayers between $1 billion and $2 billion.But as she cross examined Householder on Thursday, Assistant U.S. Attorney Emily Glatfelter poked some gaping holes in such claims of consumer savings.One is that the legislative analysis didn’t take into account a $50-million-a-year “decoupling” charge House Bill 6 created. It used FirstEnergy’s best recent year as the basis to create subsidies for FirstEnergy coal plants in the event usage or lower electricity rates forced revenue to drop below what it was in that basis year.
FirstEnergy scandal whistleblower feels vindicated after trial testimony - — Tyler Fehrman, the Republican operative who is credited with exposing mass public corruption in the Ohio Statehouse, says he finally feels vindicated following nearly four years of hell.He testified on Monday in the state's largest public corruption trial, which is nearing its conclusion with closing arguments to be made on Tuesday. Former Ohio House Speaker Larry Householder faced a brutal cross-examination Thursday, before co-defendant Matt Borges declined to testify in his defense.Householder is accused of accepting a nearly $61 million bribe in exchange for legislation, House Bill 6, that would provide a $1.3 billion bailout to FirstEnergy and other utility companies. Former GOP leader Matt Borges is also charged in the conspiracy. The two men have a combined trial and have both pleaded not guilty.After H.B. 6 passed, citizens started a repeal effort, which is where Fehrman comes in.Back in 2019, Fehrman was in a tough spot. He was struggling financially, was dealing with his divorce and was working job-to-job, Fehrman testified in federal court Monday.His current job was working for a company hired to gather signatures to get the legislation off the books, he said.When his mentor, Borges, wanted to meet up in early September, Fehrman happily agreed."That initial meeting seemed like normal coffee with myself and a guy who was a close friend, but also a mentor, someone I really looked up to," Fehrman told News 5. "The conversation started normally... even though we were on opposite sides."Borges was in support of the energy bailout, and his desire to learn more about Fehrman's work became evident quickly into the discussion. The mentor started peppering Fehrman with questions about logistics in the ballot process, how many signatures they had and the amount of individuals working to get support, he testified."I was like, 'no way, like, there's no way I'm going to give him this information and he shouldn't be asking me,'" Fehrman said. "But then he paired it with, 'how much debt do you have? What's left on your car note? Let's talk about your child support arrears.'"Borges only knew this information because the pair had been friends for around a decade, Fehrman said. That conversation led to Borges offering to take care of a difficult financial situation, the operative added."I just instantly felt my heart sink," he said. "There was that pit in your stomach where it is like, 'no, this is not all right.'"There was an implication that Borges would take care of his difficulties if he could spy for him, he added.While leaving, Fehrman felt violated and scared, he said. Borges had been someone he could rely on, a job reference who opened doors for him, but more importantly, someone to call a friend."We ceased being friends as soon as he made this ask of me," he said.
Former Ohio House Speaker Larry Householder convicted in $60 million bribery scheme - Former state House Speaker Larry Householder and former Ohio Republican Party Chair Matt Borges were convicted Thursday in a $60 million bribery scheme that federal prosecutors have called the largest corruption case in state history.A jury in Cincinnati found the two guilty of conspiracy to participate in a racketeering enterprise involving bribery and money laundering, after about 9.5 half hours of deliberations over two days.U.S. Attorney Kenneth Parker said the government's prosecution team showed that "Householder sold the Statehouse, and thus he ultimately betrayed the people of the great state of Ohio he was elected to serve." He called Borges "a willing co-conspirator.""Through its verdict today, the jury reaffirmed that the illegal acts committed by both men will not be tolerated and that they should be held accountable," Parker said.Attorneys for Householder and Borges did not immediately respond to messages left by The Associated Press on Thursday.Prosecutors alleged that Householder orchestrated a scheme secretly funded by Akron-based FirstEnergy Corp. to secure his power in the Legislature, elect his allies — and then to pass and defend a $1 billion nuclear power plant bailout benefiting the electric utility. They alleged that Borges, then a lobbyist, sought to bribe an operative for inside information on the referendum to overturn the bailout. Householder, 63, had been one of Ohio's most powerful politicians — and twice elected speaker — until the Republican-controlled House ousted him after his indictment from his leadership post, and then in a bipartisan vote, and with Householder vigorously objecting, from the chamber. It was the first such expulsion in 150 years.
Householder and Borges felony convictions just a start in stopping Ohio pay-to-play corruption - Ohio Capital Journal -The fact that former Ohio Republican House Speaker Larry Householder and former Ohio Republican Chair Matt Borges are now convicted felons in a $61 million political bribery, $1.3 billion utility bailout scandal is just a beginning.Ohio still has a long way to go in cleaning up a rampant culture of pay-to-play corruption that has been ripping off Ohioans and poisoning state government for decades.In a historic moment for Ohio on Thursday, a federal jury found Householder and Borges guilty for their roles in what prosecutors said was likely the biggest bribery and money laundering scandal ever in our state.Householder and Borges were convicted of racketeering, which is the same charge typically brought against members of organized crime.And that’s exactly what this was, organized crime: treating our state government as a mechanism for large-scale grift, robbery, and personal enrichment.In the summer of 2020, FBI arrests led to a slew of charges against a variety of players. Here are the results:
- • Householder: Found guilty at jury trial, facing up to 20 years;
- • Borges: Found guilty at jury trial, facing up to 20 years;
- • Lobbyist Jeff Longstreth: Pleaded guilty, testified against Householder and Borges, facing 0-6 months;
- • Lobbyist Juan Cespedes: Pleaded guilty, testified against Householder and Borges, facing 0-6 months;
- • Lobbyist Neil Clark: Died by suicide in 2021 after pleading not guilty;
- • FirstEnergy: Entered into a deferred prosecution agreement and paid $230 million.
- • Dark money 501(c)(4) Generation Now: Pleaded guilty.
This is justice at work. What Householder and Borges have done to all Ohioans and our state government — and their own lives now that they’re going to prison — is nothing to take relish in.It’s a very sad thing for our state, in the end, that we’ve gotten this far gone.But justice finally being done for the people of Ohio must be applauded.Former U.S. Attorney David DeVillers, current U.S. Attorney Kenneth L. Parker, Assistant U.S. Attorney Emily Glatfelter, Assistant U.S. Attorney Matthew Singer, FBI Special Agent Blane Wetzel, former state Rep. Dave Greenspan, and organizer Tyler Fehrman have all done a tremendous public service. As did U.S. Southern District Judge Timothy S. Black, maintaining a fair trial and steady hand.On the flip side, we have the others: Those with their fingerprints all over this scandal who have either tolerated or actively enabled Ohio’s culture of corruption, and then buried their heads in the sand and refused to condemn this enormous, arrogant criminality. This includes Ohio Gov. Mike DeWine and Lt. Gov. Jon Husted.
What the Ohio corruption verdicts mean for energy policy - Jurors in Ohio’s House Bill 6 criminal corruption case have returned guilty verdicts against both former Ohio House Speaker Larry Householder and lobbyist and former Ohio Republican Party chair Matt Borges. Beyond the verdicts, experts say the case is notable for what it revealed about the systemic nature of political corruption in Ohio.“Among the most jarring aspects of this case, besides the sheer scale of dark money funneled to Ohio politicians, was the degree to which corrupt activity was treated by elected officials as the ‘normal way of doing business,’” said Kyle Marcum, policy director for Ohio Citizen Action. Householder and Borges were charged with violating the federal Racketeer Influenced and Corrupt Organizations Act, or RICO, for actions relating to their roles in a $60 million scheme to pass and protect Ohio’s nuclear and coal bailout law, which also gutted the state’s clean energy standards. Most of the money came from FirstEnergy and its affiliates. And most of the funds flowed through dark money organizations — groups that did not have to report their donors and can generally avoid campaign finance limits if they don’t coordinate activities with a candidate or campaign. Money in the HB 6 case was “no mere ordinary satchel of cash politicians whip up,” said David Niven, who teaches about Ohio state politics at the University of Cincinnati. Rather, the government alleged there was a criminal enterprise under a statute generally used to go after organized crime. And while there was a single count under RICO for each defendant, the government’s allegations amounted to a charge that there was “a concerted effort to pervert, in this case, the laws of Ohio,” Niven said.“If that was ‘business as usual’ in politics, then the business of politics needs to change,” said Vipal Patel, former acting U.S. Attorney for the Southern District of Ohio, who is now at Squire Patton Boggs law firm. For Niven, the case is “a pretty dramatic wakeup call that the normal course of business in Ohio has slipped, way, way, way off the rails.” “We need to rebuild Ohioans’ trust in our state’s leadership, and we need an end to fossil fuel and utility corruption,” said Nolan Rutschilling, managing director of energy policy for the Ohio Environmental Council. Judge Timothy Black’s jury instructions ran 72 pages long. Jury deliberations lasted less than a day and a half following a full day of closing arguments on Tuesday and rebuttal on Wednesday.The case is important for Ohio and nationally regardless of how the verdict came out.“It does show that everybody is accountable for their conduct, and that while money is a part of our political system, there is a line that donors and elected officials cannot cross,” said Michael Benza, who heads the Financial Integrity Institute at Case Western Reserve University School of Law,“This trial laid bare how Ohio’s energy policy has been influenced by utility interests and how urgently Ohio needs comprehensive climate and energy reform,” said Marcum. “After so many years of energy policy that largely favors utilities and fossil fuels, Ohio needs equitable, forward-looking solutions that will protect our air and water, the health of Ohioans, and provide clean energy jobs to keep Ohio competitive in the 21st-century economy.”
Ohio O&G Commission Moves Rapidly to Lease State Land for Drilling -- Marcellus Drilling News - Last week MDN told you about a presentation by the Muskingum Watershed Conservancy District (MWCD) to the Ohio Oil & Gas Land Management (OGLM) Commission, a commission established years ago to lease state-owned land for shale drilling (see Shale Drilling Safe and Successful on Ohio Public Lands for Years). The OGLM dragged its collective feet, FOR YEARS, and finally, the state legislature had enough and passed a law bypassing the OGLM until it can get its act together (see OH Gov. Signs Bill Expanding Drilling in State Parks, NatGas “Green”). The new law lit a fire under the OGLM, which has adopted a standard lease and is proposing the legislature adopt tweaks to allow for higher royalties and a bidding process.
Shale Drilling Safe and Successful on Ohio Public Lands for Years -Marcellus Drilling News - In January of this year, Ohio Gov. Mike DeWine signed House Bill (HB) 507 into law, a new law that expands the ability to drill for oil and gas in state parks and also legally redefines natural gas as a source of “green energy” (see OH Gov. Signs Bill Expanding Drilling in State Parks, NatGas “Green”). The new law has torqued off the radical left in the state. You would think from the comments by greenies that drilling on and under public land will be the end of days. Except we have a shining example of successfully and safely drilling shale wells on Ohio public lands for years: The Muskingum Watershed Conservancy District (MWCD).
Ascent Drilled & Fracked 75 Utica Wells in 2022, Made $361M Profit - Marcellus Drilling News -- Ascent Resources, originally founded as American Energy Partners by gas legend Aubrey McClendon, is a privately-held company that focuses 100% on the Ohio Utica Shale. Ascent is Ohio’s largest natural gas producer (352,000 leased acres) and the 8th largest natural gas producer in the U.S. The company issued its fourth quarter and full-year 2022 update yesterday. Ascent net production averaged 2.2 Bcfe/d (billion cubic feet equivalent per day) during 4Q, and averaged 2.1 Bcfe/d for the year. The company made $1.6 billion in profit during 4Q, and $361 million in profit for the entire year (versus losing $806 million in 2021).
Ohio Justices Should Exempt Fracking Equipment, Co. Says – Law360 - The Ohio Supreme Court should rule that a fracking company's equipment purchases were not subject to sales and use tax because the equipment was directly used in the hydraulic fracturing process,...
29 New Shale Well Permits Issued for PA-OH-WV Feb 27-Mar 5 | Marcellus Drilling News -- New shale permits issued for Feb. 27 through Mar. 5 in the Marcellus/Utica stayed the same as the prior week. There were 29 new permits issued in total last week, including 7 new permits for Pennsylvania, 20 new permits for Ohio, and 2 new permits issued in West Virginia. Last week the top receiver of new permits was Hilcorp Energy with 8 new permits–all of them in Columbiana County, OH. The second highest number of permits went to Encino Energy, with 4 permits in Carroll County and 2 in Columbiana County. EOG Resources also received 4 permits in Carroll County. It seems the northern part of the Ohio Utica saw a lot of love last week. Ascent Resources, Bradford County, Carroll County, Clarion County, Columbiana County, Coterra Energy (Cabot O&G), Encino Energy, EOG Resources, EQT Corp,Harrison County, Hilcorp Energy, Laurel Mountain Energy, Lycoming County, Marshall County, Southwestern Energy, Susquehanna County
Increased hospitalizations for heart attacks, heart failure seen in older adults living near fracking sites — A new University of Chicago study examining Medicare claims found older adults living near fracking sites in Pennsylvania were more likely to be hospitalized for cardiovascular diseases than those who lived in nearby New York state, where fracking is banned. The research was published March 6 in The Lancet Planetary Health. Her team collected Medicare claims data for tens of thousands of patients generated between 2002 and 2015 in both northern Pennsylvania, which experienced a fracking boom, and next-door New York state, where UNGD was banned. They found an association between the development of new fracking sites and increased rates of hospitalization for health conditions such as acute myocardial infarction, heart failure and ischemic heart disease. “Although we can’t point to one specific part of fracking operations as the culprit, folks living near fracking sites could be affected by exposure to things like air or water pollution that often come with fracking activity,” said Kevin Trickey, first author on the study and a former research analyst in the Sanghavi lab. “Our study connects nearby fracking activity to real, serious human health outcomes, suggesting it’s not just a matter of economics or environmental sustainability — but that policymakers and residents alike should start prioritizing the health of citizens, whether drilling new wells or plugging old ones.”Researchers have previously found elevated levels of airborne hydrocarbons and other pollutants near fracking sites, but a clear relationship between those pollutants and negative health outcomes has not yet been established. While prior studies have indicated a likelihood of this connection, this study applies statistical analysis to economics data for causal inference analysis to more directly connect UNGD to specific negative health outcomes in older adults. In the current study, the team determined there were an additional 11.8, 21.6 and 20.4 hospitalizations for acute myocardial infarction, heart failure and ischemic heart disease, respectively, per 1,000 Medicare users than would be expected if there were no fracking in the area.“We don’t find strong associations easily in the world,” Sanghavi said. “We’ve heard a lot of anecdotes, seen the documentaries, but it’s usually very difficult to find the connection, even when it exists. Even in cases where an individual might have an experience that seems to have a direct relationship to something like fracking, that doesn’t necessarily translate to a population health effect, and here we find that — yes, there is a measurable association with people’s health.”The effects were not just limited to the initial phases of UNGD. The study found that the risk continued even after drilling ended, indicating that the health impacts could be connected to the byproducts of the regular functioning and production of the well. The researchers say these results should be a call to action for communities and policy makers affected by fracking development. “This study provides additional evidence for those who think they may be experiencing exacerbated health issues as a result of fracking in their communities,” Sanghavi said. “I hope that these results can help communities and governments — who have an interest in protecting people’s health — by equipping them with more information for making an informed decision about UNGD.
Our View: Time for state to take another look at fracking severance tax | Times Leader -A story on page 1 of Sunday’s business section reported on how the Pennsylvania Budget and Policy Center believes we should reconsider levying a Severance Tax on natural gas extracted in Pennsylvania through “unconventional wells” (read: “fracking”).This is a debate we had when the fracking boom took off in 2011, and again when then-Gov. Tom Wolf, a Democrat, proposed a severance tax in 2015. Obviously, severance tax proponents lost both times, with the state opting for — and sticking with — an “impact fee.”As Budget and Policy Center Director Marc Stier pointed out during an online media event, the problem is that the impact fee does not increase when the price of natural gas goes up or the amount of gas produced rises (you can see the full slide-show presentation at krc-pbpc.org, use their search feature to look for “severance tax”)A chart the center presented showed that in some years this would not have made much of a difference. Comparing the actual revenue from the impact fee to the money that would have been raised by a 5% severance tax, the center showed a severance tax would have raised little more or even less than the impact fee in 2011, 2012, 2015 and 2016. Mind you it would still be more than the impact fee alone, because the center proposes keeping the impact fee intact.There were a few years where the severance tax would have substantially boosted state revenue, but it wasn’t until 2021, and especially 2022 that the difference between the two became truly glaring. The center notes production has increased steadily even as the price of gas fluctuated. To quote from the center’s presentation slide: “… in 2021 and 2022, production was at an all-time high while the price of gas increased from 63-cents in 2020 to an estimated $5.27 in 2022.“When production is high and gas prices are high, a severance tax will bring in significantly more money than the impact fee will.”The center estimates that a 5% severance tax would have raised about $1.7 billion in 2022, thanks to the big bump in the price of gas.Stier dismissed two old arguments against a severance tax.First: Fear that companies would simply stop drilling in Pennsylvania are unwarranted because we remain the only state without as severance tax, and companies are still drilling and extracting in states with such a levy, even in states where the tax is higher than the 5% the center is recommending. Moreover, demand is expected to keep growing as Europe weens itself off gas from Russia and turns to the U.S. to help make up the difference.Second: Claims that a severance tax would get passed on to Pennsylvania residents are unwarranted simply because — thanks to pipelines and compressed gas transportation technologies — natural gas is a fungible (our word, not his) commodity. More bluntly: Nothing requires companies to sell gas drilled in Pennsylvania to Pennsylvanians.Stier said most of the gas extracted here is sold elsewhere. By extension, that would mean we are buying natural gas from out of state. And since we are the only state without a severance tax, that in turn means we are likely paying for a severance tax levied elsewhere.
MVP Gets Sign-Off From Fish & Wildlife, but Fourth Circuit Could Deliver Fresh Setbacks - The U.S. Fish and Wildlife Service (USFWS) has issued an updated review of the Mountain Valley Pipeline (MVP) that could pave the way for the 2 million Dth/d natural gas conduit to receive further permits and complete construction this year. However, even with the updated USFWS Biological Opinion, posted to the project’s FERC docket Wednesday, MVP remains vulnerable to further delays amid ongoing legal challenges to other permits, according to analysts.The latest Biological Opinion, developed after an earlier approval in February 2022 was vacated by the U.S. Court of Appeals for the Fourth Circuit, is a “critical milestone” for MVP to meet federal Endangered Species Act requirements, analysts at ClearView Energy Partners LLC said in a recent research note.The USFWS review also serves as a “key input” in the process of completing other pending federal permits, the analysts said.For one, MVP is awaiting revised approval for a 3.5-mile crossing of the Jefferson National Forest along the Virginia/West Virginia border. The pipeline is also awaiting a permit from the U.S. Army Corps of Engineers under Section 404 of the Clean Water Act (CWA). The permit depends on the revised Biological Opinion from the USFWS, the ClearView analysts said.In a recent call with investors, MVP sponsor Equitrans Midstream Corp. outlined plans to have the 303-mile Appalachia-to-Southeast natural gas projectin service by the end of this year.CEO Thomas Karam said “based on the permitting timeline announced by other agencies, we expect to receive all of the required permits and approvals over the next few months. This timing will allow for mobilization of construction crews in the summer of 2023, which will position us to bring MVP into service in 2023.”Those plans could, once again, depend on what happens in the Fourth Circuit. The court has ruled against MVP on numerous occasions since 2017, when the Federal Energy Regulatory Commission issued the project’s certificate.“At the risk of sounding like a broken record,” pending decisions from the Fourth Circuit “remain critical to MVP’s goal of bringing the project in service by year end,” ClearView analysts said. “We did not think that oral argument in the appeal of West Virginia’s state water quality certification…went particularly well for MVP.”Whether the Fourth Circuit opts to vacate the West Virginia permit, issued under CWA Section 401, is the “real obstacle” in MVP’s path toward completing construction, according to ClearView. An adverse decision in that case could lead to a delay or suspension of the Army Corps water permit and “would also result in FERC, under its current policy, withholding authorization to resume construction anywhere on the project until that permit is reinstated,” the analysts said.
Kathairos Solutions emerges as methane elimination leader in Appalachian Basin oil and gas operations - The pressure to reduce methane emissions in the US energy sector continues to intensify, as does the need for innovative solutions to support ambitious targets set by government, regulators and industry leaders alike. Kathairos Solutions is leading the way among clean tech providers, allowing oil and gas producers to completely eliminate methane venting on remote well sites in the simplest and most economical way possible. Through expanding partnerships with producers and government, Kathairos is proud to announce an intensified commitment to the country's clean energy transformation. The company will be installing more than 1,500 methane elimination systems across the Appalachian Basin in the year ahead – an unprecedented technology deployment that will eliminate an estimated 211,500 metric tons of CO2e emissions annually. On Tuesday, March 28, Kathairos will host oil and gas industry insiders in downtown Pittsburgh to showcase Kathairos' revolutionary liquid nitrogen technology, proven to power remote well site devices effectively, affordably and at scale. "We feel an urgent need to focus our resources on Appalachia at this time, given that regulations now clearly point to zero tolerance for methane venting by 2026, if not sooner," said Dick Brown, President and CEO of Kathairos. The technology saw rapid adoption throughout North America in 2022, led by a series of forward-thinking producers in the Marcellus and Utica shale basins. The large-scale, 1500-unit deployment of Kathairos' transformative methane elimination systems will commence in April as a focused effort across southwestern and northeastern PA – home to thousands of well sites currently venting methane in their routine operations – a highly potent greenhouse gas.
Petroleum spill in Geneva caused by nearby leaking fuel container — The city of Geneva has contained the petroleum spill in Seneca Lake that began Saturday afternoon, city officials said Monday. The New York State Department of Environmental Conservation (NYS DEC) says they were notified of a possible petroleum spill impacting Seneca Lake. Once Spill Response experts and local emergency services responded to the scene, they were able to trace the source of the petroleum back to a leaking fuel container located at a property blocks away near Central Ave. and Buffalo St. They add the petroleum was released from a tote. NYS DEC’s initial investigation revealed that the container — which can hold up to 250 gallons, the city said — was leaking fuel onto the ground and into a storm sewer which eventually reached Marsh Creek and Seneca Lake. The leak occurred because the container was left open, officials said. Spill mitigation protocols, according to NYS DEC, which includes the placement of a harbor boom around the outfall into the lake, sorbent boom, as well as pads at the lake and various area of Marsh Creek. Spill booms, berms, and vaccuum systems were used to collect the spilled petroleum. The NYS DEC adds they are working with the property owner to get more information, and the investigation remains ongoing.
EIA Further Slashes Henry Hub Natural Gas Forecast After Record-Warmth in January, February - Amid lower-than-expected heating demand this winter, the Energy Information Administration (EIA) said Tuesday it is raising its projected end-March natural gas storage carryout to more than 1.9 Tcf, a 27% increase compared to projections issued in January. A 1.9 Tcf end-March carryout would also represent a 23% surplus to the prior five-year average, EIA said in its updated Short-Term Energy Outlook. EIA said it now expects Henry Hub to average around $3.00/MMBtu in 2023, down 50% year/year. Perhaps unsurprisingly given the precipitous downward trajectory natural gas futures have traced this winter, EIA’s latest Henry Hub outlook reflects a hefty 50% discount versus January forecasts. Last month, EIA modeled an average Henry Hub spot price of $3.40 for 2023. Henry Hub spot prices averaged $2.38 in February, the lowest monthly average since September 2020, the STEO data show. In terms of domestic consumption, residential/commercial demand for natural gas is on track to decline 11% year/year in the first quarter on mild winter temperatures — historically mild, in fact, according to the agency. “Preliminary data from the National Oceanic and Atmospheric Administration for January and February indicate the first two months of 2023 may be close to the warmest on record for that period in data going back to 1895,” researchers said. “The mild weather was concentrated in the eastern part of the United States.” EIA said it expects residential/commercial demand to average near 32 Bcf/d in March, close to the five-year average, with heating degree days expected to total closer to historical norms for the month. Total U.S. consumption is set to average 99.1 Bcf/d in 1Q2023, down 5% from 1Q2022 levels, according to the latest STEO. Despite lowering its Henry Hub forecast in the latest STEO, EIA said it still expects rising prices in the coming months as the Freeport LNG terminal’s roughly 2 Bcf/d of capacity comes back online and drives an increase in export demand. Also contributing to upward pressure on prices will be “seasonal increases in natural gas demand in the electric power sector,” researchers said. “In addition, we expect natural gas production will be relatively flat for the rest of 2023 as producers reduce drilling in response to lower prices.”
New Fortress Energy looks to fast-track LNG developments (UPI) -- New York-based New Fortress Energy said Tuesday it was working to take more control of its supplies of liquefied natural gas after reporting that profits improved over third-quarter levels.New Fortress is developing a so-called Fast LNG program, which utilizes modular technology to lower costs and quicken the pace of deployment. The company said last year that it expected the program could account for more than half of the LNG supply expected on the market between this year and next.While the company said it relied in the past on third-party suppliers, its Fast LNG program could change that."We believe these developments will allow us to control our own LNG supply and complete the value chain enabling full vertical integration of our business," it said.Giles Fareer, the head of gas and LNG research at Wood Mackenzie, said recently that the geopolitical premium from the war in Ukraine supported higher natural gas prices last year and led to a surge in long-term export deals, which "created huge momentum" for LNG project development.Wood Mackenzie expects the United States to overtake Australia and Qatar this year to become the world leader in LNG exports.New Fortress said it invested more than $2 billion on its Fast LNG program last year. By the middle of this year, it expects to start construction on its first-ever floating liquefied natural gas unit.The company reported adjusted net income of $182.7 million during the fourth quarter, an improvement over third quarter levels of $85.6 million.
U.S. gas producer Chesapeake makes LNG handshake with Gunvor - (UPI) -- U.S.-based shale natural gas producer Chesapeake Energy said Monday it signed a long-term agreement to deliver liquid gas to a company in Singapore.Chesapeake signed a heads-of-agreement deal with the Singapore branch of multinational commodity trading company Gunvor. The U.S. company said itwould supply Gunvor with the gas equivalent of 100 billion cubic feet of liquefied natural gas annually for a period of 15 years.A start date is set at 2027 and both sides in the interim will look for "the most optimal" U.S. facility to turn gas into the liquid form for exports."This agreement reflects the powerful combination of the premium rock, returns, and runway of our competitively positioned Haynesville natural gas assets combined with the strength of our balance sheet and financial position to securely supply global LNG markets," Nick Dell'Osso, the president and CEO at Chesapeake, said.The Haynesville shale play straddles the border of Louisiana and Texas and is the third-largest inland natural gas producer in the country. It's estimated 16 billion cubic feet of production in March is about half that of the largest shale reserve, the Appalachia basin, which covers both the Marcellus and Utica shales.Chesapeake during the fourth quarter produced the equivalent of 20% of the daily average from Haynesville.The company, however, said in its fourth-quarter earnings report that drilling activity will decline in 2023. Chesapeake said it would drop two rigs in the Haynesville play and another in the Marcellus shale this year.Dell'Osso said that while the demand for natural gas is accelerating, his company was focusing on capital discipline "as we navigate current market volatility."Chesapeake's ambitions with LNG, however, should help solidify the United States as the world's leading exporter of the super-cooled liquid form of natural gas.
Chesapeake Steps Into LNG Market to Supply Gunvor with U.S. Natural Gas - Chesapeake Energy Corp. has reached a tentative deal to supply Gunvor Group Ltd. with up to 2 million metric tons/year (mmty) of LNG from a U.S. liquefaction facility that the companies plan to jointly select. Under a heads of agreement (HOA) announced Monday, Chesapeake would supply global commodity trader Gunvor with the super-chilled fuel for 15 years beginning in 2027. Gunvor would purchase the liquefied natural gas at prices indexed to the Japan-Korea Marker on a free-on-board basis. The announcement builds on a strategy unveiled by Chesapeake last year to gain exposure to the international gas market. One of the largest producers in the Haynesville Shale, Chesapeake’s management team has previously discussed the possibility of taking equity stakes in liquefaction projects, signing gas supply agreements at prices linked to international benchmarks and entering offtake deals with foreign buyers. CEO Nick Dell’Osso said Monday the HOA reflects Chesapeake’s strong position in the Haynesville, which is near the LNG corridor along the Gulf Coast. He added that it “marks an important initial step on our path to being LNG ready and we look forward to entering into additional agreements while export capacity continues to come online.” NGI’s Patrick Rau, director of strategy and research, noted that the 2 mmty included in the HOA translates to roughly 250 MMcf/d, or about 5-10% of Chesapeake’s current U.S. output. He added that netback prices to the Gulf Coast from Asia are above $10/MMBtu, which is well above current Henry Hub prices, making the link to JKM attractive for the time being. In addition to the seven LNG terminals operating in the Lower 48, more than a dozen projects have been approved by federal regulators that are not yet under construction. About half of the projects planned along the Gulf Coast are near securing enough offtake to reach a final investment decision.All of the production from Chesapeake’s Haynesville assets is certified by an independent third party to ensure its gas is produced as responsibly as possible.
Liquefied natural gas will continue to lead growth in U.S. natural gas exports –EIA - -Exports of liquefied natural gas (LNG) will continue to drive growth in U.S. natural gas exports over the next two years, according to our recently released Short-Term Energy Outlook (STEO). In our March STEO, we forecast that U.S. LNG exports will average 12.1 billion cubic feet per day (Bcf/d) in 2023, a 14% (1.5 Bcf/d) increase compared with last year. We expect LNG exports to increase by an additional 5% (0.7 Bcf/d) next year.We forecast U.S. LNG exports to rise because of high global demand as LNG will continue to displace pipeline natural gas exports from Russia to Europe. So far this year, mild winter temperatures and fuller-than-average storage resulted in reduced LNG prices, which could be an incentive to import more LNG, especially in the price-sensitive countries of Southeast Asia. The Freeport LNG export terminal's return to service and the new LNG export projects that will commissioned by the end of 2024 support our forecast increase in exports. The Freeport LNG terminal is one of seven U.S. LNG export facilities; it can produce 2.14 Bcf/d of LNG on a peak day. Prior to the full shutdown of the facility in June 2022, exports from the facility averaged 1.9 Bcf/d from January 2021 through May 2022, according to our Natural Gas Monthly.Because of the Freeport shutdown, U.S. LNG exports declined to an average 10.0 Bcf/d from June 2022 through December 2022, after peaking at 11.7 Bcf/d in March. When the new Calcasieu Pass LNG export facility was commissioned, it partially offset the decline in exports from Freeport LNG; exports from Calcasieu Pass have averaged 1.2 Bcf/d since June 2022.This year, once all three trains at Freeport LNG return to service, we forecast U.S. LNG exports to exceed 12 Bcf/d, and the United States will remain the world’s largest LNG exporter. We forecast that U.S. LNG exports will increase further, to approximately 14 Bcf/d, by December 2024 because some LNG export projects under construction are expected to start operations by then.We expect U.S. natural gas exports by pipeline to grow by 0.5 Bcf/d in both 2023 and 2024, mainly because of increased exports to Mexico. Several new pipelines in Mexico—Tula-Villa de Reyes, Guaymas-El Oro, the Mayakan pipeline on the Yucatán Peninsula, as well as some other minor interconnects—are scheduled to come online in 2023–24. We also expect an increase in exports via the Sur de Texas-Tuxpan underwater pipeline to supply the proposed floating liquefaction (FLNG) project off the east coast of Mexico.
US natgas plunges 15% on less cold forecasts, biggest drop in 8 months U.S. natural gas futures plunged by about 15% on Monday - its biggest one-day drop in over eight months —on forecasts for much less cold weather and heating demand than previously expected over the next two weeks. That price drop came after the contract soared about 9% to a five-week high on Friday as gas flows to U.S. liquefied natural gas (LNG) export plants jumped to a record high with Freeport LNG's export plant in Texas ramping up after exiting an eight-month outage in February. "Natural gas futures have fallen massively today after major weather models corrected their forecasts higher throughout their 15-day forecasts," "This has translated to ... [gas] demand lost over the forecast period ... With the vast majority of that being [residential and commercial] demand," Meteorologists boosted their two-week average temperature forecasts for the U.S. Lower 48 states to 45 degrees Fahrenheit (7 degrees Celsius) on Monday from around 43 F on Friday, according to data provider Refinitiv. That compares with a normal level of around 46 F at this time of year. Front-month gas futures for April delivery on the New York Mercantile Exchange fell 43.7 cents to settle at $2.572 per million British thermal units (mmBtu), their lowest close since Jan. 24. In what has already been an extremely volatile start to the year, Monday's price drop was the front-month's biggest daily percentage decline since falling around 17% on June 30. The gas market is used to huge price swings, which are usually related to changes in weather forecasts. The front-month fell to a 28-month low of below $2 per mmBtu on Feb. 22 on warmer weather forecasts before jumping to a five-week high over $3 just over one week later on March 3 on colder forecasts. The drop in gas futures put pressure on shares of several gas producers, including Chesapeake Energy Corp and EQT Corp, which were both down about 4% Monday afternoon. Freeport LNG's export plant, meanwhile, was on track to pull in about 1.7 billion cubic feet per day (bcfd) of gas on Monday, up from 1.4 bcfd on Friday, according to data provider Refinitiv. Federal regulators have approved the restart of two of Freeport LNG's liquefaction trains (Trains 2 and 3). But on Monday, federal regulators had more questions about Freeport LNG's Feb. 27 request to restart the third train (Train 1) and other parts of the plant. Liquefaction trains turn gas into LNG. Total gas flowing to U.S. LNG export plants rose to 13.7 bcfd so far in March from 12.8 bcfd in February. That compares with a monthly record of 12.9 bcfd in March 2022, before the Freeport LNG facility shut. With colder weather coming, Refinitiv forecast U.S. gas demand, including exports, would rise from 116.7 bcfd this week to 120.7 bcfd next week. Those forecasts, however, were much lower than Refinitiv's outlook on Friday. Milder winter weather so far this year has prompted utilities to leave more gas in storage than usual. Gas stockpiles were about 19% above their five-year average (2018-2022) during the week ended Feb. 24 and were expected to end about 22% above normal during the week ended March 3, according to federal data and analysts' estimates. Even though mild weather this winter has reduced demand for gas, analysts at U.S. investment bank Piper Sandler said some holders of gas in storage were "forced to make mandatory withdrawals (at any price), which drove incremental selling pressure." Historically, those contractual withdrawal requirements have been in place to make room in storage facilities for the upcoming April-October injection season.
US natgas falls 5% to one-week low as flow to Freeport LNG drops (Reuters) - U.S. natural gas futures fell about 5% on Wednesday to a one-week low, after data showed the amount of gas flowing to Freeport LNG's export plant in Texas dropped and on forecasts indicating the weather in the near term would be warmer than previously expected. That price decline came even though the total amount of gas flowing to all seven big U.S. LNG export plants was still on track to hit a record high this month. Front-month gas futures for April delivery fell 13.6 cents, or 5.1%, to settle at $2.551 per million British thermal units (mmBtu), their lowest close since Feb. 24. The market has been extremely volatile in recent weeks as traders bet on the latest weather forecasts. The front-month fell to a 28-month low below $2 per mmBtu in intraday trade on Feb. 22 on forecasts for warmer weather before jumping 9% to settle at a five-week high over $3 just over a week later on March 3 on forecasts for colder weather and then plunging 15% on March 6 on an outlook for warmer temperatures. Freeport LNG's export plant was on track to pull in just 0.1 billion cubic feet per day (bcfd) of gas on Wednesday, down from 1.0 bcfd on Tuesday, according to data provider Refinitiv. Freeport exited an eight-month outage in February. That outage was caused by a fire in June 2022. Officials at Freeport LNG had no comment on the decline in gas flows. When operating at full power, Freeport LNG, the second-biggest U.S. LNG export plant, can turn about 2.1 bcfd of gas into LNG for export. The seven big U.S. LNG export plants, including Freeport LNG, can turn about 13.8 bcfd of gas into LNG. Refinitiv said average gas output in the U.S. Lower 48 states has risen to 98.4 bcfd so far in March, up from 98.2 bcfd in February. That compares with a monthly record of 99.9 bcfd in November 2022. Analysts said production declined earlier this year due in part to drops in gas prices of 40% in January and 35% in December that persuaded several energy firms to reduce the number of rigs they were using to drill for gas. In addition, extreme cold in early February and late December cut gas output by freezing oil and gas wells in several producing basins. The latest weather forecasts show the weather in the Lower 48 states would remain mostly colder than normal through March 23 after some near- to warmer-than-normal days from March 8-13. With colder weather coming, Refinitiv forecast U.S. gas demand, including exports, would rise from 115.5 bcfd this week to 119.2 bcfd next week. Those forecasts were lower than Refinitiv's outlook on Tuesday. Milder winter weather so far this year has prompted utilities to leave more gas in storage than usual. Gas stockpiles were about 19% above their five-year average (2018-2022) during the week ended Feb. 24 and were expected to end about 22% above normal during the week ended March 3, according to federal data and analysts' estimates.
Nymex Natural Gas Futures, Cash Slide as Supply/Demand Too Loose -After early gains on Thursday, natural gas futures lost momentum following the latest government inventory data that confirmed supply/demand balances remain too loose. The April Nymex gas futures contract settled at $2.543/MMBtu, off eight-tenths of a cent on the day. May futures slid 3.0 cents to $2.683. Spot gas prices were mostly lower, with the West and East coasts continuing to pull back sharply from earlier highs. NGI’s Spot Gas National Avg. dropped 25.5 cents to $2.800. Against the backdrop of volatile weather models, plush storage, robust production and the ongoing return of a key export facility, futures prices have struggled to find their footing. The April Nymex contract rose to a $2.644 intraday high early in Thursday’s session, but the latest Energy Information Administration (EIA) data was yet another example of the smaller-than-average withdrawals that have occurred this winter. The EIA said stocks for the week ending March 3 fell by 84 Bcf, well within the range of expectations ahead of the report. That said, the range was wide. A Reuters survey of 17 analysts produced a range of withdrawal estimates from 61 Bcf to 95 Bcf, with a median of 79 Bcf. Bloomberg’s survey had a slightly tighter range of seven estimates that also resulted in a median draw of 79 Bcf. A Wall Street Journal poll projected a draw of 81 Bcf based on the average forecast of 12 participants whose estimates ranged from decreases of 69 Bcf to 92 Bcf. NGI modeled a 62 Bcf pull. For comparison, the EIA recorded a 126 Bcf decline for the same week last year, and the five-year average is a decline of 101 Bcf. With a couple of winter storms driving up demand on the East Coast last week, inventories there led the declines. The EIA said East stocks fell by 35 Bcf, while the Midwest followed with a 29 Bcf pull. The Pacific region withdrew a massive 18 Bcf, leaving stocks there at only 81 Bcf, more than 52% below the five-year average. Mountain inventories fell by 7 Bcf. The South Central region’s modest net 3 Bcf injection – solely in nonsalts – surprised a few Enelyst participants, but they chalked it up to spring-like temperatures during a transitional period in the gas market. Total working gas in storage as of March 3 was 2,030 Bcf, which is 493 Bcf above year-ago levels and 359 Bcf above the five-year average, according to EIA.
Natural gas down 19% on the week after ‘dead cat bounce’ -- Is natural gas returning to $3 anytime soon? That seems to be the question on the minds of almost everyone in this market though it may not be articulated as much, with the heating fuel posting another spectacular double-digit weekly loss after appearing to be on a higher trajectory just last week. The most-active April gas contract on the New York Mercantile Exchange’s Henry Hub settled Friday's trade at $2.43 per mmBtu, or metric million British thermal units, down 11.3 cents, or 4.3%. For the week, April gas was down nearly 19%. Gas futures rose a compounded 30% in the prior two weeks, hitting a 5-week high of $3.027 on March 3, on expectations of late winter chill after months of unseasonable warmth. But like a curse to the bulls, this week’s weather models were back to pointing at higher temperatures, triggering another market crash that proved the rally of the past two weeks to be nothing more than a “dead cat bounce.” Charts for April gas suggest that the path of least resistance is lower, says Sunil Kumar Dixit, chief technical strategist at SKCharting.com. “As gas breaks below the previous week's low, immediate resistance shifts to $2.66, above which $2.80 is the next challenge,” said Dixit. “Below the $2.55 support, we can witness a further drop to $2.30 and $2.18.” Fundamentally, the outlook for gas has undergone a paradigm shift after this week’s change in the weather model readings, said Houston-based energy markets advisory Gelber & Associates. “Production is still strong at 100.5 billion cubic feet per day,” Gelber said in a note that affirmed gas output back to late January highs after recent declines below 100 bcf. “NYMEX natural gas prompt month price, as a result, has largely traded sideways.” An unusually warm winter has led to considerably less heating demand in the United States this year, leaving more gas in storage than initially thought. Storage of natural gas stood at a total 2.030 tcf, or trillion cubic feet, as of March 3 — up 32% from the year-ago level of 1.537 tcf and 19% higher than the five-year average of 1.671 tcf, the EIA, or Energy Information Administration, reported. Responding to the warmth and lackluster storage draws, gas prices plunged from a 14-year high of $10 per mmBtu in August, reaching $7 in December before hitting a 2-½ year bottom of $1.967 in late February.
Environmental groups sue feds over Gulf of Mexico oil, gas leases --Several environmental groups on Monday filed a federal court legal challenge to the federal government opening up more than 73 million acres of the Gulf of Mexico to oil drilling.The lawsuit is over the Department of Interior’s sale of oil and gas leases in unleased areas of the western and central Gulf of Mexico. The nearest area is more than 200 miles west of peninsular Florida.The Biden administration has come out against some renewals of oil leases. But an agreement with West Virginia Sen. Joe Manchin was included in the approval of the Inflation Reduction Act in 2022. The sale is now scheduled for March 28.The environmental groups say the nation should be moving away from the use of fossil fuels and not enable more drilling. They say it would go against the administration’s commitment to reduce greenhouse gas emissions and transition to clean energy.It is estimated that the leased areas could extract over 1 billion barrels of oil and 4 ½ trillion cubic feet of natural gas over the next 50 years.Earthjustice and Sierra Club filed the lawsuit in federal court in the District of Columbia on behalf of Healthy Gulf, Bayou City Waterkeeper, Sierra Club, Friends of the Earth, and the Center for Biological Diversity. It was filed against Secretary of the Interior Deb Haaland and the Bureau of Ocean Energy Management.The lawsuit alleges the lease sale would jeopardize the survival of endangered marine life. Five of the world’s seven species of sea turtles inhabit Gulf waters, and the Gulf is the exclusive home of the endangered Gulf of Mexico (Rice’s) whale, whose numbers may have dwindled to fewer than 50 individuals.“Selling off more of our lands and waters to the fossil fuel industry is the last thing we should do at a time when we need to be rapidly transitioning away from oil and gas to meet our nation’s climate goals and create a livable planet for all,” said Athan Manuel, Director of the Sierra Club’s Lands Protection Program. “Offshore drilling devastates millions of acres of nature, contributes to an increasing number of climate disasters, and creates a quarter of our greenhouse gas emissions. While the IRA represents a historic step forward in achieving our nation’s climate goals, we cannot let the bad provisions of the bill, including oil and gas leasing, undercut what we stand to gain.”“As steward of the country’s public lands and waters, Interior has a duty to fully consider the harms offshore leasing can cause, from air pollution to oil spills, and beyond,” said Irene Gutierrez, senior attorney for the Natural Resources Defense Council. “This vast lease sale poses threats to Gulf communities and endangered species—like Rice’s whale—while contributing to the climate crisis this region knows far too well. We are holding the agency to its obligation to carefully assess the fallout of this giveaway to Big Oil.”
Biden delays five-year offshore leasing plan, sparking Manchin pushback - In his latest clash with the White House, Sen. Joe Manchin III (D-W.Va.) sharply criticized the Biden administration Wednesday for delays on a new federal offshore drilling plan that the Interior Department says it needs until December to put into effect. Manchin — an oil industry advocate who has been key to supporting Biden policies in a narrowly divided Congress — has recently pushed back against the administration for its appointments and its implementation of the Inflation Reduction Act, including on how it affects oil and natural gas leasing in Alaska. In court documents this week, Interior Department officials argue that they need the rest of this year to finish a legally required five-year plan to lease offshore territory for oil and gas development. The plan is months behind deadlines set in law, but in a federal appeals court brief Monday, department officials said they need the extra time to review public comments and complete other legally required analyses on a proposal issued last summer. Manchin says the delays pose a risk to steady domestic supplies of oil and natural gas. He accused the administration of slow-walking a new plan as part of its push against fossil fuels. He also said the administration was failing to meet legal requirements that every other administration has met to have a new five-year offshore leasing plan in place before the prior plan expired. “They are putting their radical climate agenda ahead of our nation’s energy security, and they are willing to go to great lengths to do it,” Manchin said in a news release Wednesday. “I will hold their feet to the fire on this.” An Interior Department spokeswoman declined to respond to Manchin’s comments. Although months of further delays have been widely expected, Interior had not made any announcement about its timeline or publicly detailed its plans before Monday’s court filing. The last five-year plan expired in June, and Interior officials had signaled last summer that a new proposal for 2023-2028 was unlikely to be in place by the start of this year. The industry’s largest trade group, the American Petroleum Institute, has sued over the delays — which have been developing since the Trump administration — and has asked the U.S. Court of Appeals for the D.C. Circuit to order Interior to approve a new program by Sept. 30. Interior officials said in their court brief Monday that that is not enough time and, further, that the judges should reject the API’s request because the group does not have standing to file such a challenge. The plan is a top priority for oil companies because offshore sites account for roughly 15 percent of U.S. production, and that output is likely to decline years from now if the government limits new leasing in the meantime. Leaders at the API and other industry executives at the CERAWeek energy conference here have said they are frustrated that the administration has let so many deadlines lapse and consider Interior’s plan a major signal for how Biden will treat U.S. oil companies. “We’re 250 days from when the last five-year plan expired,” API President Mike Sommers said in an interview Monday. “So are they going to do a five-year plan that actually encourages development in the Gulf of Mexico?” Manchin has expressed outrage in recent weeks at several policies of the administration, especially over how it is fulfilling the energy and climate provisions of last year’s Inflation Reduction Act. Manchin helped negotiate the spending package and has criticized the administration as reluctant to meet the spirit of the law, especially its offshore drilling mandates and rules tied to electric-vehicle tax credits. He has threatened to withhold support for executive branch appointees that need Senate confirmation, a major challenge for Biden because of Democrats’ slim Senate majority and because Manchin controls the Senate Energy Committee.
Enbridge doubles down on Gulf Coast in big bet on oil and gas demand -Greg Ebel, who took over as chief executive of Canadian pipeline giant Enbridge Inc. in January, wasted little time putting his own stamp on the company. At a time when governments are spending hundreds of billions of dollars to turbocharge the transition to renewable energy, Ebel this week bet there will still be enough export demand for North American crude oil and gas over the next decade to justify large new investments in U.S. Gulf Coast infrastructure. Ebel said global trends in population growth, urbanization and increased consumption, as well as the persistent need for fossil fuels in sectors like heavy transportation and petrochemicals where greener substitutions aren’t easily made, will continue to support demand for North American oil and gas. “While we all would like to go to a lower carbon future, I don’t think there’s a scenario that exists, or at least not a happy scenario, where we don’t continue to use natural gas in the future,” Ebel said at a news conference at Enbridge’s annual investor day on March 1. “And liquids, look, it may ramp down over time, but that’s decades and decades to go.” It’s a view shared by many investors in the sector. “This is not a sunset industry,” said Ninepoint Partners senior portfolio manager Eric Nuttall in a recent interview with the Financial Post. “The demand for oil will grow for at least the next 10 years. And after that, you and I will both be consuming oil for the rest of our lifetimes,” he told the Financial Post’s Larysa Harapyn. Nuttall says the combination of growing demand after COVID lockdowns and supply constraints makes him “very, very bullish” about the outlook for oil and gas. “We’re likely heading to triple-digit oil prices by the end of this year,” he said. Calgary-based Enbridge has been on a spending spree aimed at bolstering its presence in the U.S. Gulf Coast, announcing this week that it will spend US$350 million to acquire 35 billion cubic feet in additional storage assets. Enbridge will also spend US$240 million to build a new heavy-oil terminal in Houston, at the terminus of its Seaway Pipeline system, which carries Canadian crude and other U.S. crude types to the Gulf Coast, creating a heavy Canadian crude hub in the Houston area. The larger goal is to create a “super system” to rival its longstanding heavy system in Canada. In service of its Gulf Coast ambitions, Enbridge purchased the continent’s largest oil export terminal, the Ingleside Energy Centre near Corpus Christi, Texas in 2021.
Oxy Subsidiary Says Gulf Coast CCS Hub to Enter Service by 2026 - Occidental Petroleum Corp. subsidiary 1PointFive has leased more than 55,000 acres along the Texas coast to develop a carbon capture and sequestration (CCS) hub, management said Thursday (March 2). The Bluebonnet Hub would be sited in Chambers, Liberty and Jefferson counties southeast of Houston. The hub as designed would boast capacity to hold about 1.2 million metric tons of carbon dioxide (CO2), 1PointFive said.Bluebonnet, which is expected to be operational by 2026, would capture CO2 from nearby refining, petrochemical and manufacturing facilities. The CO2 would then be stored underground in saline formations that are not associated with oil and gas production.“We are progressing our plans to build sequestration hubs that will provide a solution for carbon intensive industries to help reduce their emissions,” said 1PointFive Sequestration President Jeff Alvarez. “This hub is located between two of the largest industrial corridors in Texas so captured CO2 can be efficiently transported and safely sequestered. “Rather than starting from scratch with individual capture and sequestration projects, companies can plug into this hub for access to shared carbon infrastructure.”In addition, 1PointFive and a subsidiary of Enterprise Products Partners LP are advancing a CO2 transportation solution to gather CO2 from regional emitters and deliver it to the hub.At the planned Bluebonnet site, “1PointFive has completed drilling a stratigraphic test well and subsurface assessment to characterize the site’s ability to store CO2,” management said. The company expects to apply for two Class VI CO2 injection permits from the U.S. Environmental Protection Agency.Occidental, better known as Oxy, is among the leading oil and natural gas producers in the United States. The company is advancing multiple CCS efforts through its Oxy Low Carbon Ventures business.Projects include a direct air capture facility in the Permian Basin that is slated to enter commercial operation by mid-2025. It also has a slew of potential CCS hubs proposed for the Gulf Coast and Midcontinent.Oxy also is working with Energy Transfer LP on a CO2 pipeline network connecting point source emitters in the Lake Charles, LA, area with Oxy’s Magnolia sequestration site in Allen Parish, CEO Vicki Hollub said during Oxy’s latest earnings call.
SilverBow Pivoting to Oil Drilling as South Texas Natural Gas Prices Cool Off - SilverBow Resources Inc. is shifting its near-term focus from natural gas to oil-directed drilling amid a stronger pricing outlook for the latter, according to CEO Sean Woolverton. Woolverton hosted a conference call to discuss fourth-quarter and full-year 2022 earnings for Houston-based SilverBow, which operates exclusively in the Eagle Ford Shale and Austin Chalk formations of South Texas. Natural gas accounted for 66% of the firm’s total production in 4Q2023, but the company is now targeting a roughly 55/45 split of gas and liquids by the end of this year. Longer term, plans are to aim for a roughly 50/50 mix. “In recent months, oil prices have shown relative strength compared to the gas strip,” Woolverton told analysts. “As a result, we see the highest returns this year through acceleration of our oil development. Much of our focus will be on assets we have acquired over the last 24 months.” SilverBow closed on four acquisitions during 2022, including deals to absorb Sundance Energy Inc. and key assets of SandPoint Operating LLC. Woolverton said regional gas supply in Webb County, TX, where SilverBow focused its gas-directed drilling in 2022, roughly doubled year/year during the last part of 2022. The supply increase of about 0.5 Bcfe/d was “in response to increased drilling and completion activity, and strong well performance,” the CEO said. “For reference, the Webb County rig count increased from a low of two rigs in late 2020 to a high of 17 rigs in late 2022. Regional supply is now pushing up against available pipeline capacity.” Eagle Ford spot natural gas prices stood at $2.325/MMBtu as of Tuesday (March 7), roughly half their level a year ago, according to NGI’s Shale Daily. On the demand side, meanwhile, “Mexico exports have trended below 2022 levels,” Woolverton said. Regional demand was “further impacted by outages at a key LNG export facility and a warm winter season. The net effect is a governor on growth in Webb County gas in 2023, which should improve with multiple new pipeline projects expected to come online at the end of the year.”
Lime Rock Preparing for EPA Ruling with Fugitive Emissions Scanning -- As federal regulators prepare a ruling that would strengthen emissions standards for the oil and natural gas industry, Lime Rock Resources has partnered with Bridger Photonics Inc. to conduct fugitive methane emissions scanning in the Lower 48. Lime Rock partnered with Montana-based Bridger to use Gas Mapping Light Detection and Ranging (GLM) advanced laser technology to detect fugitive methane emissions from equipment and assets in the Permian’s Delaware sub-basin and Barnett Shale. “Lime Rock has the right idea – preparing for anticipated regulatory requirements ahead of time by seeking certification of the produced natural gas,” Bridger Vice President of Operations Ben Losby said. “They are setting an example, showing that emissions reduction can be done throughout the industry.” Not only would the scans be used to bolster the Houston-based oil and gas acquisition company ahead of the proposed U.S. Environmental Protection Agency (EPA) regulations, the scans also would support Lime Rock as it pursues certification for responsibly sourced natural gas through MiQ,, according to Bridger. The EPA rulemaking (Docket EPA-HQ-OAR-2021-0317), meanwhile, is expected to impact thousands of natural gas and oil wells, natural gas processing facilities and storage tanks. Operators would be required to monitor and replace leaky equipment to reduce domestic methane emissions from covered sources by 87% in 2030 from 2005 levels. A final decision is expected from the Office of Management and Budget by May. Bridger’s aerial scans data would include aerial site photography complete with plume imagery, equipment identification, the size and GPS coordinates of any fugitive emissions, enabling repair crews to be directly dispatched to the source. Lime Rock has a portfolio of Lower 48 projects under development, with a focus in the Midcontinent, Permian and Williston basins, along with the Gulf Coast. Natural gas properties include the Cedardale-Laverne play in northern Oklahoma, Denton Creek in the Barnett of North Texas and in the Arkoma, an East Texas property.
Why Republicans want to kill the compromise methane fee - Democrats imposed the first-ever federal charge last year on a greenhouse gas, viewing it as an unprecedented compromise that would please environmentalists and fossil fuel interests alike. But now that Inflation Reduction Act program to reduce methane emissions is facing outright repeal from fossil fuel-backed Republicans. The effort is being led by Rep. August Pfluger (R-Texas), a staunch oil and gas supporter who represents producers in the Permian Basin. His “Natural Gas Tax Repeal Act,” H.R. 1141, would strip out a fee included in the Inflation Reduction Act that will eventually charge up to $1,500 per ton on methane emissions from oil and gas producers, pipeline operators, and others. The bill has 36 co-sponsors — all Republicans.Pfluger’s bill is likely to be part of a House Republican energy package designed to boost domestic production and ease regulatory hurdles. It’s scheduled for consideration later this month (E&E Daily, March 1). Republicans and industry leaders say the methane fee program, as currently constituted, is unworkable and potentially unconstitutional. Democrats, meanwhile, argue that the fee, which is paired with a grant program to help implementation, is friendly to industry concerns. Democrats were eager to impose the fee. Methane is a potent greenhouse gas that makes up 11 percent of all U.S. emissions, according to EPA. About one-third of all methane comes from oil and gas production, and industry and environmentalists alike say they want to limit methane emissions as much as possible. While some Democrats might not be surprised at Republican efforts to repeal parts of a bill they didn’t vote for, they are nevertheless confused that some in the industry have come out in strong support of Pfluger’s effort. “I think [Pfluger’s bill] undoes the important work that we did on this committee just last year in trying to address the impacts of methane, and deal with that in a way that’s reasonable for industry,” said Rep. Lizzie Fletcher (D-Texas) in a recent Energy and Commerce Committee hearing. The American Petroleum Institute and the Independent Petroleum Association of America — two of the most important fossil fuel lobbying groups in the country — back Pfluger’s repeal effort. And although those particular fossil fuel interests were against the methane fee since the Inflation Reduction Act was enacted, Democrats were still taken aback. That’s because Pfluger’s bill would also repeal a $1.55 billion grant package that Democrats see as a generous pot of money for producers to get a handle on their methane emissions and comply with the fee. The disagreement could signal a rocky road for implementation, with some producers signaling they have little relationship with the enforcer, EPA, and that some producers don’t plan on taking the grant money. Those producers believe the entire methane program, as currently constructed, is a nonstarter.
The EIA Vows To Improve The Accuracy Of Its Oil Data - The EIA has baffled the market and analysts with high adjustments in its weekly and monthly U.S. oil data in recent years. The so-called adjustment in weekly and monthly crude oil data, or “Unaccounted For Crude Oil” as it was previously referred to, has been used to balance the difference between oil supply entering the market and oil disposition, or oil leaving the market. In the latest weekly petroleum status report, the data from the Energy Information Administration showed last week that the adjustment – the balancing item – was at 2.266 million barrels per day (bpd). That was equal to the highest adjustment since reporting data in that form began in 2001. U.S. crude oil exports were also the highest on record in the weekly data for the week to February 24—at 5.629 million bpd, per EIA data. However, as the EIA itself says, data collection for these numbers has been imperfect for years and needs a change of methodology to represent U.S. oil supply and demand data more accurately. The latest Petroleum Monthly Supply report also showed growing adjustment figures to explain the gap between supply and disposition. “In our Petroleum Supply Monthly, the crude oil supply adjustment more than doubled from Q1 2022 to Q4 2022. In the same time frame, the adjustment tripled in our Weekly Petroleum Status Report,” EIA Administrator Joe DeCarolis said in a Twitter thread on Friday. Last year, up to 4% of oil supply was unaccounted for, or “adjusted,” according to EIA data. “Or this might be smaller if disposition is overstated,” DeCarolis said.The official offered explanations why such high adjustment levels have been seen in recent months and years. EIA analysis pointed to crude oil blending and under-reported production as the two principal contributors to the discrepancy in supply and disposition data.Following a 90-day assessment of the high adjustment figures in EIA’s weekly and monthly crude oil data, the Administration is confident that some of the reported U.S. crude oil exports include other products, likely natural gasoline and naphthas (light hydrocarbons). These could be blended into crude or reported as crude exports, EIA’s DeCarolis says.“That would mean that the amount of actual U.S. crude exports is slightly less than what is reported, or in other words, that disposition is overstated."There is a strong correlation between the jump in U.S. crude oil exports since 2016 and the increases in EIA adjustments, which hints at a relationship, the official noted.The issue is further compounded by the fact that products that the EIA believes are being blended with crude oil also show up as product supplied, the proxy for demand. “So those products are being *double counted* on the disposition side of the equation,” DeCarolis said. Under-reported crude oil production is the second contributor to high adjustments. Field condensate is often collected in gas gathering lines or at the inlet to gas processing plants and introduced into the crude oil system as “light hydrocarbons”. Production data on these liquids is not collected in the current natural gas or crude oil surveys by the EIA. So they largely go unaccounted for as they enter the crude oil system, EIAs DeCarolis said. The EIA needs to update its surveys to better capture the changed U.S. oil production with the shale formations which are producing a “hydrocarbon soup,” with producers separating and processing those resources at multiple steps, DeCarolis said. “There always will be an adjustment in our petroleum data,” he noted. “But making changes to account for crude oil blending and under-reported production get us closer to balance, which will present a more accurate representation of the crude oil market.” The EIA will make changes to its surveys to account for the light hydrocarbons, which will take time. The Administration will also change its accounting methods for crude oil blending to get more accurate data on U.S. crude oil production, DeCarolis said. The EIA will publish on March 22 a This Week in Petroleum article that will provide more details on the findings and specific next steps to address the issue of more accurate representation of U.S. oil market data.
The EIA Vows To Improve The Accuracy Of Its Oil Data -- In August 2022, amid soaring pump prices and plummeting approval ratings, questions were raised about "very crooked numbers" regarding gasoline demand that helped hammer the price of oil lower ahead of The Midterms. And while we previously highlighted the 'strange' seasonal adjustments across plain vanilla economic data, we now see outlier levels of 'adjustment' hitting the arcane EIA crude inventory data (coincidentally as Europe's ban on Russian imports and Washington-led price-caps hit).All of a sudden, US crude inventories have soared for 10 straight weeks - up a stunning 62 million barrels over that time (only comparable to 2020's global lockdown demand collapse)... But... along with this sudden and shocking surge in reported inventory builds, the so-called "adjustment factor" used by EIA spreadsheet-builders to manage their data has exploded to record outlier highs week after week... Oil prices have refused to follow this data, trading sideways as - according to the 'reported' data - supply is very much outpacing supply... As OilPrice.com's Tsvetana Paraskova reports, The EIA has baffled the market and analysts with high adjustments in its weekly and monthly U.S. oil data in recent years.The so-called adjustment in weekly and monthly crude oil data, or “Unaccounted For Crude Oil” as it was previously referred to, has been used to balance the difference between oil supply entering the market and oil disposition, or oil leaving the market.In the latest weekly petroleum status report, the data from the Energy Information Administration showed last week that the adjustment – the balancing item – was at 2.266 million barrels per day (bpd). That was equal to the highest adjustment since reporting data in that form began in 2001. U.S. crude oil exports were also the highest on record in the weekly data for the week to February 24—at 5.629 million bpd, per EIA data. However, as the EIA itself says, data collection for these numbers has been imperfect for years and needs a change of methodology to represent U.S. oil supply and demand data more accurately. The latest Petroleum Monthly Supply report also showed growing adjustment figures to explain the gap between supply and disposition. “In our Petroleum Supply Monthly, the crude oil supply adjustment more than doubled from Q1 2022 to Q4 2022. In the same time frame, the adjustment tripled in our Weekly Petroleum Status Report,” EIA Administrator Joe DeCarolis said in a Twitter thread on Friday. Last year, up to 4% of oil supply was unaccounted for, or “adjusted,” according to EIA data. “Or this might be smaller if disposition is overstated,” DeCarolis said.
At CERAWeek, Big Oil Executives Call for ‘Energy Security’ and Longevity for Fossil Fuels - —The past 12 months brought new climate extremes, with Pakistan’s devastating floods and record-melting of Antarctica’s sea ice as just two examples. But when the world’s top oil executives gathered for an annual conference in Houston this week, they were focused instead on the war in Ukraine and the painful reminder it delivered of the global economy’s persistent dependence on oil and gas.Many global leaders and climate scientists have seen this stubborn “addiction” to fossil fuels as an urgent call to rapidly phase out their use. The message from many oil and gas executives in Houston was the opposite.“I think the issue of how we best move toward a lower carbon energy system is getting reframed,” said Mike Wirth, chief executive of Chevron, which recorded a record-high $36.5 billion profit last year. Wirth was the first executive to speak Monday at CERAWeek by S&P Global, the annual industry conference focused on energy markets, geopolitics and technology. Over the last year, he said, energy costs and security were finally getting proper attention, alongside climate change. “I think the discussion is moving to a more balanced state. I hope it is,” Wirth said.Hours later, Mike Sommers, head of the American Petroleum Institute, the industry’s top lobby group, referred to this same goal of delivering energy that is affordable, reliable and clean.“For too long we’ve been talking about only one of those legs of the stool,” he said, referring to cutting emissions. “I think Washington has started to wake up to the fact that we need to talk about the other two as well.”On Tuesday, Ryan Lance, chief executive of ConocoPhillips, which is awaiting a decision from the Biden administration on whether it can drill a major oil project in Alaska’s Arctic, continued the theme.“It’s finally becoming reality after the Ukraine invasion, the need for energy security,” he said, speaking in front of more than a thousand people packed into a soaring ballroom, where heavy air conditioning removed any hints of the humid Houston air. The war, Lance said, has “really balanced and tipped the equation back probably in a more appropriate proportion.”The executives’ comments stood in stark contrast to recent calls from political leaders and activists. In January, former-Vice President Al Gore gave an impassioned speech at the World Economic Forum in Davos, Switzerland, where he scolded the oil and gas industry for obstructing climate action and called on leaders to act faster, saying, “We are still failing badly.”
U.S. won't reach a new record in oil production 'ever again,' says Pioneer Natural Resources CEO - While oil production in the U.S. will continue its return towards pre-Covid levels, limits on refining capacity and inventory mean it will not grow as much as some hope, according to Pioneer Natural Resources CEO Scott Sheffield. "We just don't have that potential to grow U.S. production ever again," Sheffield told CNBC's Brian Sullivan on Tuesday at CERAWeek. To be clear, this doesn't mean no production growth. Many oil companies have outlined production increases as part of spending plans this year, though oil companies are now in an era of greater fiscal discipline, not shy about signaling they will favor shareholder rewards like stock buybacks over higher production levels. Sheffield expects growth to top out at a level that was already reached pre-pandemic. "We may get back to 13 million barrels a day," he said, which would match the record high average recorded in November 2019 by the U.S. Energy Information Administration. But he added it will be at a "very slow pace," taking two and half to three years to match that previous record level. For consumers, that means gas prices are more likely to stay within the current range, and pricing risk be tilted to the upside later this year. According to the EIA, an average of 11.9 million barrels of U.S. crude oil were produced per day in 2022, below the record in 2019 of an average of 12.3 million barrels per day. The EIA is forecasting a new record for this year, but barely higher, at an average of 12.4 million barrels per day. "We don't have the refining capacity … if we all add more rigs, service costs will go up another 20%-30%, it takes away free cash flow," Sheffield said. "And secondly, the industry just doesn't have the inventory." The price of a barrel of oil has fluctuated between $75 and $80 this year, well off the $100+ prices seen this time last year. While the level of economic slowdown in the U.S. will be a significant factor as the Fed continues to signal its commitment to higher rates, Sheffield said he sees these current prices as "the bottom," citing the demand boom expected alongside the reopening of China. "The question is when do we break out? I predict sometime this summer to break fast $80, on the way to $90," he said.
Keystone's biggest oil spill cleanup continues in Kansas | Northern Public Radio: WNIJ and WNIU - In early December 2022, the Keystone pipeline carrying crude oil from Alberta, Canada to Houston, Texas, ruptured. The Environmental Protection Agency estimates 588,000 gallons of oil were spilled over land and into Mill Creek.Bill and Chris Pannbacker regularly visit this ridge on their farm to watch workers cleaning the Keystone pipeline oil spill. (Celia Llopis-Jepsen/Kansas News Service) TC Energy says it has cleaned up most of the oil, but it’s predicted there’s still months more work ahead, at a total cost of half a billion dollars. Celia Llopis-Jepsen of the Kansas News Service reports. This segment aired on March 7, 2023.
Feds slap restrictions on more than 1,000 miles of Keystone pipeline after Kansas oil spill - Oil spills on the Keystone pipeline that runs from Canada to Texas are becoming more frequent and serious, federal regulators said Tuesday. So the U.S. Department of Transportation ordered Canadian company TC Energy to lower the pressure for crude oil along another 1,200 miles of its pipeline. Federal officials also ordered a review of how the company handles geologic hazards such as unstable soil and said more spills and “serious harm” are likely if the pipeline operation doesn’t improve.Regulators want to know the risks that flawed welding or shifting ground could pose for more breaks on the Keystone, which has spilled repeatedly since 201 “Continued operation (without change) is or would be hazardous to life, property or the environment,” the order said. The order comes during an ongoing investigation into the country’s second-biggest inland spill of a Canadian tar sands product, called dilbit, in north-central Kansas in December. TC Energy says bad welding played a role in what the company has described as an “instantaneous rupture.” More than 500,000 gallons of crude oil gushed out on the night of Dec. 7, raining down on native prairie and cropland and pouring into a tributary of the Little Blue River. Bad welding caused other Keystone spills in the past, too — a fact cited by federal regulators in their decision on Tuesday. The one in Kansas was the pipeline’s worst spill yet. The Pipeline and Hazardous Materials Safety Administration — part of the US Department of Transportation — also said that TC Energy had been monitoring the area for shifting ground before the 3-foot-wide pipe burst. Unstable soil and ground movement are dangerous for pipelines. The agency says TC Energy was required to mitigate any such problems under its federal permit for the pipeline. Workers responding to the spill witnessed that the pipeline was under improper stress, the agency said. “It is not clear whether the pipe segment has been under stress since construction (in 2011) or if land movement in the area may have more recently induced or increased stress,” the agency said. The Keystone burst at the base of a ridge in Washington County. Landowners say they worried from the start about the company running pipe up the ridge’s slopes and they want to know if the hill played a role in the rupture. But federal regulators have not said whether that specific aspect of the topography played a role in the improper stress. They do, however, point out that the Keystone crosses drinking water sources, populated areas and sensitive ecological regions in more than half a dozen states. In Kansas, the oil poured into Mill Creek, a winding stream that was moving slowly during a particularly dry year. It did not affect drinking water for humans, though landowners had to move livestock away from the newly toxic creek. But the pipeline also crosses big waterways in Kansas, such as the Kansas River that provides drinking water to about 800,000 people in northeastern Kansas. After the December spill, regulators immediately slapped a lower pressure rule on nearly 100 miles of the Keystone in Kansas and Nebraska. Tuesday’s order lowers the pressure limit for another 1,200 miles of pipe, southward to Oklahoma, eastward to Illinois and northward to the Canadian border. The order cites “indications that TC Oil’s operating, maintenance, and/or integrity management programs may be inadequate to address the repetitious pattern of failures” on the Keystone since 2011, including flawed welding and the risks posed by shifting soil. It gives the company two months to review how it handles geologic hazards and whether shifting earth factored into the Dec. 7 spill. The company must hire an independent contractor for the review, which also has to investigate whether land movement could be stressing other points of the Keystone system.
California oil company must pay $65M over oil spills (AP) — A defunct company that spilled more than a million gallons of crude oil and wastewater in California must pay more than $65 million in penalties and cleanup costs, federal prosecutors announced Monday. The federal government and the state of California had sued the company, alleging that it was negligent and responsible for repeated crude oil spills into U.S. and state waterways along the central coast from ruptured storage tanks, corroded pipelines and overflowing injection ponds. The judgment finalizes a Feb. 25 ruling by a judge of the U.S. District Court for the Central District of California. The judge found the company liable for 12 spills into federal waterways from 2005 through 2010 that dumped 26,584 barrels (about 1.1 million gallons) of crude oil and wastewater. "The spills evinced a pattern of reckless disregard for good oilfield industry practices, and a series of negligent acts or omissions by HVI concerning oil spill prevention, and pipeline and facility inspection and maintenance,” the judge wrote. The firm also committed 60 violations of federal regulations at 11 facilities amounting to nearly 87,000 days of violation, the ruling held. HVI Cat Canyon was held liable to the United States for $57.5 million in civil penalties and cleanup costs, along with $7.7 million to California in penalties in addition to nearly $200,000 for damage to natural resources and for cleanup costs. The Santa Maria-based company, which owned and operated facilities in Santa Barbara County, filed for bankruptcy in 2019 and a spokesperson couldn’t immediately be found. A message left for an attorney who at one point represented the firm wasn’t immediately returned.
Biden admin paradox: Boost oil — and cut CO2? -— The Biden administration’s seemingly contradictory energy and climate strategy was on full display here Wednesday: Try to pivot away from fossil fuels, but promote them for now.Energy Secretary Jennifer Granholm faced that paradox as she addressed energy leaders and insiders gathered in a hotel ballroom, praising the uptick in U.S. oil and gas exports during Russia’s war in Ukraine while touting a clean energy shift.“Europe is poised to reach the spring without major outages or shortages, and that’s thanks in no small part to many in this room, who have been producing and exporting and working with the U.S. and with allies,” Granholm said.“Indeed, the U.S. has become in this year an indispensable energy partner to our allies and a global energy powerhouse,” she said to applause.Granholm’s remarks at the CERAWeek by S&P Global conference came one year after she called on the oil and gas industry — at the same meeting of energy leaders — to boost production (Energywire, March 10, 2022). At the time, industry leaders criticized the Biden administration for what they saw as a slow permitting process for liquefied natural gas terminals and other projects.Since then, U.S. crude oil exports to Europe have climbed along with an increase in liquefied natural gas shipments. The European Union slapped a ban on seaborne Russian crude in December amid Russia’s continuing war in Ukraine. And last month, the body banned some key Russian petroleum products (E&E News PM, Feb. 6).The surge comes as the Biden administration is simultaneously pushing to decarbonize the U.S. power sector by 2035 and move away from vehicles and power plants that rely on oil and gas from many of the companies appearing at the conference. President Joe Biden has called for a net-zero U.S. economy by midcentury.“We know that oil and gas is going to remain a part of our energy mix for years to come,” Granholm said. “Even the boldest projections for clean energy deployment suggest that in the middle of the century we are going to be using abated fossil fuels.”The fossil fuel sector says it’s trying to work constructively with the White House. But top representatives of the industry are increasingly pressuring the Biden administration to deliver on one of its most coveted priorities: more leases to operate in the Gulf of Mexico, Alaska and throughout the western United States.“The president said we’re going to be around for a while — at least 10 years,” said Mike Sommers, president of the American Petroleum Institute trade group, referring to remarks made during President Joe Biden’s State of the Union address that many conservatives mocked (Energywire, Feb. 8).“There has to be signals to the industry that these investments in the United States continue to make sense based on government policy. The policy has to meet the improved — not great but improved — rhetoric that we’ve heard from the administration in the last year,” Sommers said in an interview Wednesday.
The Alaska Willow Project -- by Bruce Oksol - Not ready for prime time. The White House has two wings: the realpolitik and the ideological wings. Rarely do we get to see "definitive fallout" from these two wings when it comes to energy. For example, the on-again / off-again / mixed messages with regard to drilling on federal land is a great example. In that arena, a lot of stories but it's difficult to really figure out how that "argument" is playing out. The ideological wing generally wins the headlines but the results have not meant much in the big scheme of things. The Keystone XL was a great example -- in that case the ideological wing won -- the Keystone XL was killed. "Everyone" knows that was a very, very wrong decision. It played to a fringe element in the Democratic Party and it was a "thank you" for their support. The Keystone XL was interesting but after ten years on the front page of energy politics most folks had tired of the story and didn't really care one way or the other. And after ten years, US oil companies had figured out how to exist without the XL. In fact, one can argue that had the XL been in operation in 2000, the Bakken never would have happened. All that for this. The big story this month, with regard to energy and the realpolitik and the ideological wings is the Willow Project in Alaska. COP wants Biden to approve five exploratory wells. COP says less than three wells will be a deal-breaker. COP needs the decision by the end of March, 2023, if there is any chance for drilling to begin this summer. If Biden kills the project, denies even three exploratory wells, it will be a clear indication that the ideological wing is in control in the administration. There's no way Biden will approve five wells. I think Biden sees his decision as a "no-brainer" but I wouldn't bet a nickel on this either way. For me, it's a win-win however he decides. If anything, I lean slightly to hoping he disapproves the COP request. This is a "decision" based on my investment portfolio, not on ideology. Break, break. How could Biden thread the needle. Delay his decision until after the "2023 drop-dead deadline." Announce in late March that he will make his decision in April. Then in late April, announces that he will approve the request for three exploratory wells. Why won't he do that? He loses both wings, that's why, if he delays the decision to April. Although, delaying the decision to April is very much akin to a "pocket veto."
Oil Investors Enjoy $128 Billion Bonanza By Defying Biden's Orders - At a time when woke western government have all but declared the death of fossil fuels (at some point in the next 30 or so years), things aren't going quite as planned by the world's most vocal of virtue signalers: with China putting Covid zero ahead of schedule and fully reopening its economy, worldwide oil demand is racing toward an all-time high and some of the smartest minds in the industry are forecasting $100-a-barrel crude in a matter of months. However, having been burned one too many times by Biden's catastrophic progressive agenda which demands more oil output and in exchange vows to crush end markets, US producers are refusing to invest more in future output and instead are playing the short game and looking to turn over as much cash as possible to investors before energy guru Hunter Biden (best known for his extremely valuable - in undisclosed - energy skillset which he brought to bear for Ukraine's Burisma) turns his crack-addled attention to the US energy industry.According to Bloomberg calculations, shareholders in US oil companies reaped a $128 billion windfall in 2022 thanks to a combination of global supply disruptions such as Russia’s war in Ukraine and intensifying Wall Street pressure to prioritize returns (dividends and buybacks) over finding untapped crude reserves. After all, why bother if progressives hope to put an end to evil internal combustion engines once and for all. Indeed, oil execs who in years past were rewarded for investing in gigantic, long-term energy projects are now under the gun to funnel cash to investors who are increasingly convinced that the sunset of the fossil-fuel era is nigh. As a result for the first time in at least a decade, US drillers last year spent more on share buybacks and dividends than on capital projects, according to Bloomberg calculations. The $128 billion in combined payouts across 26 companies also is the most since at least 2012, and they happened in a year when US President Joe Biden unsuccessfully appealed to the industry to lift production and relieve surging fuel prices. Or, as Bloomberg puts it, "for Big Oil, rejecting Biden's direct requests may never have been more profitable."
Canadian Natural’s ‘Drill-to-Fill’ Strategy Results in Record ‘22 Natural Gas Production - Calgary-based independent Canadian Natural Resources Ltd. made a strategic decision to ramp up its substantial natural gas portfolio last year, which resulted in a 23% increase in output year/year.“For North American operations, 2022 annual natural gas production was 2.08 Bcf/d, versus the 1.68 Bcf/d for 2021, up almost 395 MMcf/d,” said President Tim McKay during the company’s year-end earnings call. The gains primarily a “result of the company’s strategic decision to invest in liquid-rich natural gas areas through our drill-to-fill strategy, adding low cost, high value liquid-rich gas production, as well as opportunistic acquisitions completed in late 2021 and early 2022.”During 4Q2022, North American natural gas production rose to 2.1 Bcf/d from the year-earlier average of 1.84 Bcf/d. The producer reports in Canadian dollars (C$1.00/US 75 cents).Natural gas fetched a 2022 annual average of $6.55/Mcf versus $4.07 in 2021. The corporate performance exceeded the 2022 Alberta hub average of $5.54 by 17%. The North American natural gas operating cost was $1.19/Mcf, an increase of 3% year/year on higher energy costs.Vigorous marketing raised the value of sales by spreading them out to points across Canada and the United States beyond the crowded, chronically low-priced AECO hub in Alberta.About 28% of the natural gas production was sold at AECO/Station 2 pricing. Another 34% was exported to other North American and international markets, to capture higher natural gas prices. Additionally, the company used the equivalent of 38% of its natural gas production in its operations in 2022.The natural gas strength enabled the company to report a record combined oil and liquids output of 1.28 million boe/d in 2022, up 4% year/year. Fourth quarter output averaged 1.29 million boe/d, down from 1.31 boe/d in 4Q2021.
BC Montney Shale Driving Record Natural Gas Output in Canada as Alberta Dips - British Columbia (BC) delivered the growth while Alberta faded when Canadian natural gas production jumped to a record monthly high late last year, according to industry accounts compiled by the Canada Energy Regulator (CER). BC wells, dominated by Montney Shale flows, sustained 6.63 Bcf/d or 37% of the new 17.9 Bcf/d peak last November. The output more than doubled BC’s 2.87 Bcf/d or 16.7% of total output of the last record some 20 years ago. That record was 17.2 Bcf/d and was set in April, 2002. Alberta slipped to 10.99 Bcf/d or 61% of the November 2022 production record. In April 2002, before the spread of shale supply tapped by horizontal drilling and hydraulic fracturing, Alberta had a production share of 13.77 Bcf/d or 80%. The 20-year span between the two records saw seismic change in the integrated U.S. and Canada gas markets. Prices and Alberta exports to the United States peaked in the early 2000s on strong demand. Belief that supplies would fall below needs fostered a lineup of more than 50 proposals for LNG import terminals. Plans have since changed, with efforts now focused on liquefied natural gas exports from BC’s Pacific Coast. Field improvements prevailed over ocean imports. “Others experimented and improved existing technology to increase gas production by learning how to better hydraulically fracture horizontally drilled wells,” recalled the CER. On top of opening up rich BC shale drilling targets, the changed methods altered the economic structure of the Canadian industry. The CER observed that while about 540 Canadian firms currently produce gas, 54% of the total flows from only eight top firms. The four biggest suppliers – Canadian Natural Resources Ltd., Tourmaline Oil Corp., Ovintiv Inc. and Arc Resources Ltd. – alone account for 40% of total Canadian production. All four are prominent in BC shale drilling. “Most tight and shale gas wells are more expensive to own, because they are deeper, have long horizontal legs, and because multi-stage fracturing is expensive. Smaller operators generally cannot afford to drill or buy these more costly new wells,” said the CER. Securing the cash and talent needed for the big wells also breeds corporate competitive advantage in Canada. The new production record was set even though the crowded AECO market held prices down at a mediocre 2022 average of C$5.28/gigajoule ($4.16/MMBtu). “In general, the more expensive wells result in much higher volumes of production,” said the CER. The big flows are “making the cost per unit of gas production from expensive wells much lower than from inexpensive wells.”
7,000 barrels of liquid removed after Guayaguayare oil spill - SOME 7,000 barrels of fluids have been removed from the site of a February 11 oil spill in the Ferrier Circular, Guayaguayare operations of the Heritage Petroleum Company. Affected residents who complained about the air quality in the aftermath are now breathing a sigh of relief, as the clean-up is said to be 60 per cent completed. The company’s CEO Arlene Chow and leadership team visited Guayaguayare on March 5 to meet with residents to review the progress of the remedial work. Heritage said in a statement that its incident management team is continuing its cleanup and rehabilitation at the site. It said the Ministry of Energy and Energy Industries (MEEI) and the Environmental Management Authority (EMA) have been kept apprised of the clean-up. The police and fire services are providing daily assistance and the company said it is in daily contact with the residents, MP, councillor and village council, providing updates. The leak, in a ten-inch pipeline along Ferrier Road, was discovered on February 12, affecting the heavily forested area and an inland watercourse. Heritage said it immediately isolated and repaired the leak and began clean-up and rehabilitation. A local contractor and 85 residents were hired a day later to assist. Because the affected area was densely forested, initial access was only possible on foot, slowing down the early clean-up efforts. But Heritage said it has "now cleared roads to provide access to tractors and heavy equipment." So far, it said, "Over 7,000 barrels of fluid comprising 95 per cent water and five per cent hydrocarbons have been removed from five collection points along the riverbank.” The liquid has been transported to the Guayaguayare Tank Farm. Heritage said the onsite team has concentrated its efforts close to the village to reduce inconvenience to the residents, and has also provided welfare services. It also said: “The conservation group Serpentarium was engaged in the wildlife conservation efforts. Animals are being rehabilitated and relocated where necessary. The Forestry Division has also been listing all trees which were cut.” Further to Mayaro MP Rushton Paray's call for air-quality testing, Heritage said that is being continuously done, using an independent contractor, at sites both close to the oil-spill site and in the community. Initially, the tests revealed very low levels (parts per billion) of hydrocarbon vapours. From March 1, the testsre said to have registered no detectable levels of toxic vapour and acceptable oxygen levels.
Argentina in Natural Gas Infrastructure Buildout Mode as Vaca Muerta Production Breaks Records - Not since the 1990s has Argentina’s natural gas segment seen so much infrastructure buildout. And it doesn’t look like it’s over yet. Argentine officials met with executives from energy companies this week to work out future infrastructure works with an eye to growing natural gas and oil production out of the prolific Vaca Muerta Shale formation in western Neuquén province. At the offices of the Energy Secretary in Buenos Aires, hydrocarbons sub-secretary Fernando Bernal said that the mission was to “deepen the dialogue with the sector… We want to hear them, and help them, and they can help us plan our actions to advance and construct new infrastructure for the export of our hydrocarbons.” Representatives from all of the top upstream and midstream companies were there, according to the Secretariat. The Nestór Kirchner natural gas pipeline in Argentina is set to come online by late June, according to state-owned Energia Argentina SA. This would be just in time for the heavy-demand winter season, when costly LNG imports have been relied upon for years now to keep the lights on and industry running. Government officials have been hyping up the pipeline’s importance. President Alberto Fernández recently called it “a central piece of infrastructure for Argentina’s future.” Executives such as Miguel Galuccio, CEO of Vista Energy SA, have said that the pipeline out of Vaca Muerta is key to the growth of the upstream industry. A massive power outage last week, meanwhile, is a reminder of Argentina’s frail energy system. Some 40% of the country lost power March 1, after a transmission line fire. Argentina is also facing 100% year/year inflation. The pipeline’s $1.5 billion first phase would have a capacity of 24 million cubic meters/day (MMm3/d), or about 847 MMcf/d. It will stretch from the town of Tratayén in Neuquén province to Salliqueló in Buenos Aires province, and increase total Vaca Muerta takeaway capacity by 30%. The second phase of the project would include upgrades to the Gasoducto Norte pipeline system, including flow reversal works and compression stations in the north of the country. Once complete, it would enable Argentina to reduce or stop imports from Bolivia. YPF and Malaysian national oil company Petronas signed a memorandum of understanding last September to study the potential for an integrated liquefied natural gas export project. YPF officials have said that the project would require a separate pipeline.
No fracking ban in Derbyshire in case Government changes its mind - The door has effectively been left open for fracking in Derbyshire due to the need to future-proof against a potential change in policy from central Government. A Derbyshire County Councilmeeting on Wednesday, March 1, was told that a Minerals Local Plan, a blueprint for future development, must include references allowing fracking in set circumstances.It was told that Derby and Derbyshire could not move to ban all fracking due to the potential for central Government to change its mind on the current moratorium which, as it stands, bans all fracking in the UK due to concerns over seismic activity and environmental impacts. However, Michelle Spence, part of the team developing the Minerals Local Plan, said the concerns of residents opposing fracking – also known as hydraulic fracturing – had been taken into account.She said the council would not be in favour of the outline principle for fracking sites if there is a “sensitive receptor”, like a home or a school, within 500 metres. Ms Spence said: “If they want it within 500 metres then they would have to put quite a case together to say it won’t have any impact on them – like a stonking great hill.“It is important that we have a policy instead of having one imposed on us. There is still a lot of uncertain science there. The National Planning Policy Framework requires us to have a policy. The Government have said there needs to be clear evidence that it (fracking) will not affect sites seismically and cause other environmental effects but it hasn’t told us not to have a policy.“When (Liz) Truss was Prime Minister there was a ministerial statement removing the moratorium banning fracking, and that was then brought back in with the current Prime Minister and that could change again.” She said that a planning inspector would likely reject the proposed minerals plan, outlining mineral requirements such as gas, coal, gravel and sand up to 2038, if it did not include a policy for fracking.Ms Spence said the authorities forming the plan – Derbyshire County Council and Derby City Council – were taking a “precautionary approach” with the UK economy “still requiring” oil, gas, coal and other minerals, despite carbon-neutral climate change aims. Cllr Barry Bingham, who represents the Staveley North and Whittington division, voiced strenuous concerns about the potential fracking in his division through a previously approved site near the village of Marsh Lane, close to Eckington, overseen by petrochemical firm INEOS.He told the meeting: “I am concerned for residents living next to it. I don’t see any great benefit for our communities. It is just going to cause misery. We have many old coal mines in my division and they purposely left pillars and coal in order to keep the land stable. We don’t know where those are and it (fracking) could make the land unstable.”
'Let's bring France to a halt': Oil refineries blocked and trains halted by pension reform protestsStrike action over plans to raise the pension age in France caused widespread disruption on Tuesday, as trains came to a near-standstill, many schools were shut and fuel deliveries were blocked from refineries. State railway operator SNCF warned passengers to cancel or postpone trips, if possible, while Eurostar advised ticket holders to check whether their train is running. Most metro services are also canceled, as are some flights from Paris's Charles de Gaulle and Orly airports. Unions are calling on French President Emmanuel Macron to scrap his plan to raise the retirement age from 62 to 64 and require workers to contribute into France's shared pension fund for 43 years before receiving a full pension. Macron has for years been looking to reform the pension system, which has a projected annual deficit of 10 billion euros ($10.73 billion) each year between 2022 and 2032, according to France's Pensions Advisory Council. The move is fiercely opposed by much of the public. More than a million people marched across the country in late January to oppose the plans. Union reps aim to get two million people onto the streets on Tuesday. Eric Sellini, a representative from the CGT union at TotalEnergies, told Reuters that a strike blocking the Gonfreville refinery in Normandy would run until Thursday. Another at the Donges refinery in western France is set to run until Friday, he added. Blockages at a range of refineries could cause a petrol shortage by the end of the week, head of French supermarket group Les Mousquetaires Thierry Cotillard said, according to BBC. "Let's bring France to a halt!" a coalition of unions said in a statement, branding the reforms "unacceptable and useless."The strikes come as French workers grapple with red-hot inflation, which accelerated unexpectedly in February to hit 6.2% year-on-year.Around two thirds of the public support protests against the pension reforms, according to an Elabe survey. But with the number of people taking to the streets dipping in February, several unions have called for rolling, open-ended strikes to voice their opposition.
In Nord Stream bombings probe, German investigators see Ukraine link, reports say – — German prosecutors have found "traces" of evidence indicating that Ukrainians may have been involved in the explosions that blew up the Nord Stream gas pipelines in September 2022, according to German media reports Tuesday.Investigators identified a boat that was potentially used for transporting a crew of six people, diving equipment and explosives into the Baltic Sea in early September. Charges were then placed on the pipelines, according to a joint investigation by German public broadcasters ARD and SWR as well as the newspaper Die Zeit.The German reports said that the yacht had been rented from a company based in Poland that is "apparently owned by two Ukrainians."However, no clear evidence has been established so far on who ordered the attack, the reports said.In its first reaction, Ukraine's government dismissed the reports.Mykhailo Podolyak, an adviser to Ukrainian President Volodymyr Zelenskyy, denied the Ukrainian government had any involvement in the pipeline attacks. "Although I enjoy collecting amusing conspiracy theories about the Ukrainian government, I have to say: Ukraine has nothing to do with the Baltic Sea mishap and has no information about 'pro-Ukraine sabotage groups,'" Podolyak wrote in a tweet.Three of the four pipes making up the Nord Stream 1 and 2 undersea gas pipelines from Russia to Germany were destroyed by explosions last September. Germany, Sweden and Denmark launched investigations into an incident that was quickly established to be a case of "sabotage."The German media reports — which come on top of a New York Times report Tuesday which said that "intelligence suggests that a pro-Ukrainian group" sabotaged the pipelines — stress that there's no proof that Ukrainian authorities ordered the attack or were involved in it.Any potential involvement by Kyiv in the attack would risk straining relations between Ukraine and Germany, which is one of the most important suppliers of civilian and military assistance to the country as it fights against Russia's full-scale invasion.According to the investigation by German public prosecutors that is cited by the German outlets, the team which placed the explosive charges on the pipelines was comprised of five men — a captain, two divers and two diving assistants — as well as one woman doctor, all of them of unknown nationality and operating with false passports. They left the German port of Rostock on September 6 on the rented boat, the report said.It added that the yacht was later returned to the owner "in uncleaned condition" and that "on the table in the cabin, the investigators were able to detect traces of explosives."But the reports also said that investigators can't exclude that the potential link to Ukraine was part of a "false flag" operation aiming to pin the blame on Kyiv for the attacks.Contacted by POLITICO, a spokesperson for the German government referred to ongoing investigations by the German prosecutor general's office, which declined to comment.The government spokesperson also said: "a few days ago, Sweden, Denmark and Germany informed the United Nations Security Council that investigations were ongoing and that there was no result yet."
Who Blew Up the Nord Stream Pipelines? - NY Times podcast - The sabotage in September of the Nord Stream pipelines carrying Russian gas to Europe has become one of the central mysteries of the war in Ukraine, prompting months of finger-pointing and guesswork. Now, new intelligence reporting has provided the first significant known lead about who was responsible. On today’s episode: Julian E. Barnes, a national security correspondent for The New York Times. Background reading:
- Officials say there are still enormous gaps in what American spy agencies and their European partners know about the detonations.
- The Baltic seabed provided a nearly ideal crime scene.
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New intelligence points to pro-Ukraine group in Nord Stream attack -NYT - Reuters - New intelligence reviewed by U.S. officials suggests that a pro-Ukraine group - likely comprised of Ukrainians or Russians - attacked the Nord Stream gas pipelines in September, but there are no firm conclusions, the New York Times reported on Tuesday. Advertisement · Scroll to continue There was no evidence that Ukrainian President Volodymyr Zelenskiy or other Ukrainian government officials were behind the attacks which spewed natural gas into the Baltic Sea, the newspaper reported, citing U.S. officials. Reuters could not independently verify the report. The Sept. 26 explosions on the pipelines connecting Russia and Germany occurred in the exclusive economic zones of Sweden and Denmark. Both countries have concluded the blasts were deliberate, but have not said who might be responsible. The United States and NATO have called the pipeline attacks "an act of sabotage," while Moscow has blamed the West. Neither side has provided evidence. Denmark, Germany and Sweden said last month that their investigations have not yet concluded. The United States and Britain said on Tuesday they were waiting on those findings. "We need to let these investigations conclude and only then should we be looking at what follow-on actions might or may not be appropriate," said White House spokesperson John Kirby. Germany said on Tuesday it had taken note of the New York Times report but that its own investigation had not yet produced results. NATO Secretary-General Jens Stoltenberg and Swedish Prime Minister Ulf Kristersson both declined to comment on the New York Times report during a news conference in Stockholm. A senior aide to Zelenskiy, Mykhailo Podolyak, said that Kyiv was "absolutely not involved" in the blasts and has no information about what happened. Russia's Foreign Ministry spokeswoman Maria Zakharova said the media reports on Tuesday underscored the need for Moscow's questions about what happened to be answered. She also accused those responsible for the media leaks of wanting to divert the public's attention and avoid a proper investigation.
Attack Of The “Pro-Ukrainian Group”: Notes From The Edge Of The Narrative Matrix – Caitlin Johnstone --The latest New York Times report on the Nord Stream pipeline bombing is something else. According to NYT’s anonymous US government sources, the pipelines were blown up by a “pro-Ukrainian group” who had no known connections to any military or intelligence agency, but somehow had all the information, skills, diving equipment and military explosives necessary to carry out such an attack. Remember kids, Sy Hersh's Nord Stream report is untrustworthy because it is unproven and relies on anonymous sources. It’s actually insulting how stupid it is. It reads like a small child lying about who broke the lamp in the living room; “Uhh, some bad guy came in and broke it, then he left. He was wearing a black cape and had a twirly mustache.” At least respect us enough to make up a better lie than “Yeah it turns out it was just some random people with a boat, man! It’s crazy I know!” They literally wrote an entire article without ever addressing how bizarre it is to just keep referring to the alleged perpetrators as just a “group”. Like that’s a thing. “Yeah you know, one of those Groups we’ve all been hearing about in the news. You know Groups, they sail around the world destroying international undersea energy infrastructure.” Imagine having to tell this Scooby Doo-esque tale about a yacht of Ukraine-loving mischief-makers who pranked Europe’s energy supply like it’s a real thing. Like, “Oh come on, who among us has not taken a boatload of military explosives to go blow up international pipelines for fun with their friends?”
Germany cautious over Nord Stream pipeline attack reports - (AP) — Germany’s defense minister voiced caution Wednesday over media reports that a pro-Ukraine group was involved in blowing up the Nord Stream gas pipelines in the Baltic Sea last year. German daily newspaper Die Zeit and public broadcasters ARD and SWR reported Tuesday that investigators were able to largely reconstruct how the pipelines from Russia to Germany were sabotaged on the night of Sept. 26, 2022. Citing multiple unnamed officials, the news outlets reported that five men and a woman used a yacht hired by a Ukrainian-owned company in Poland to carry out the attack. German federal prosecutors confirmed that a boat was searched in January. The New York Times also reported Tuesday that U.S. officials reviewed intelligence that suggested a pro-Ukrainian group was behind the blasts. The Ukrainian government has denied involvement. German Defense Minister Boris Pistorius said he read the news reports “with great interest” but warned against drawing hasty conclusions. “We need to clearly differentiate whether it was a Ukrainian group that acted on the orders of Ukraine or ... without the government's knowledge,” he told reporters in Stockholm. Speaking on the sidelines of a European Union defense ministers meeting, Pistorius said some experts also had raised the possibility of a so-called false flag operation by a group pretending to be Ukrainian. “It would not be the first time in the history of such events,” the German minister said. “As such, I'm refraining from drawing premature conclusions.” Asked whether the reports could undermine Western support for Ukraine, Pistorius said he preferred to respond once he had reliable information. “Anything else is hypothetical,” he added. Ukrainian Defense Minister Oleksii Reznikov rejected suggestions that the attack might have been ordered by Kyiv. “It’s like a compliment for our special forces, but this is not our activity,” he told reporters in Stockholm. According to the German media reports, the suspects used forged passports when hiring the boat, which set off from the German port of Rostock. A captain, two divers, two diving assistants and a doctor made up the group, ARD reported. Germany's Federal Prosecutors Office declined to comment directly on the reports. But it confirmed that investigators conducted a search from Jan. 18-20 “in connection with a suspicious boat hire.” “There is a suspicion that the boat in question could have been to transport explosive devices that exploded on Sept. 26, 2022, on the Nord Stream 1 and Nord Stream 2 pipelines,” the prosecutors office said in an email to The Associated Press. “The evaluation of the seized traces and objects is ongoing.” “The identity of the perpetrators and their motives are the subject of ongoing investigations,” it added. “At present, it is not possible to make any reliable statements on this, in particular on the question of state control.”
The EU Moves Toward Forming A Natural Gas Buyers' Cartel -The European Union will make its first move as a buyers’ group on the international gas market next month as it launches the first tender for suppliers.The tender follows months of discussions on how best to secure natural gas supplies for the 27-member bloc in such a way as to avoid some member states outbid other member states because of their deeper pockets.The solution was found in what would effectively be a buyers’ cartel, shopping for gas as one. According to Bloomberg, the first offers, from gas suppliers in the United States, the Middle East, and Africa are to be signed in June.Price will be the sticking point in that joint buying exercise. One of the purposes of the ole endeavor was to keep gas prices low by buying in larger volumes. Besides, natural gas prices are currently a lot lower than they were a year ago. Yet the EU needs to buy a lot of gas and such bulk buying may very well push prices higher.The total gas needs of the EU plus four neighboring countries amount to 24 billion cubic meters over the next three years, according to European Commission Vice President Maros Sefcovic. This is a lot of gas to be sourced on the global spot market.“We clearly need to turn the economic tide in Europe,” Sefcovic told Bloomberg in an interview.“I believe we’re creating a new system that will increase competition and bring in new suppliers and push energy prices down. Since we started this exercise, there’s enormous interest from international suppliers.”According to him, some 50 gas suppliers have expressed interest in participating in the EU’s joint gas buying. There is also interest in joint buying from large industrial gas consumers in the EU, Sefcovic also said.Price, however, remains of crucial importance. Europe has been paying a lot more for its gas than the U.S., for instance, and China, according to Sefcovic. This needs to change if the bloc is to remain competitive on the world stage.
EU’s ban on diesel fuel from Russia shifts trade patterns --On June 3, 2022, the EU adopted a sixth package of sanctions that banned imports of seaborne crude oil from Russia into the EU (effective December 5, 2022) and banned seaborne imports of petroleum products from Russia, including diesel fuel (effective February 5, 2023). Prior to the sanctions, between October 2021 and September 2022, diesel imports from Russia made up 53% of Northwest Europe’s seaborne imports. In February 2023, when the sanctions took effect, those diesel imports fell to 2%. Although petroleum product imports from Russia have declined, imports from other areas, notably the Middle East and Asia, have increased.The largest increase in diesel import volumes to Northwest Europe came from Saudi Arabia, increasing to 202,000 barrels per day (b/d) in February 2023 from an average of 68,000 b/d from October 2021 through September 2022. Compared with the same periods, diesel imports from India increased by 110,000 b/d to 161,000 b/d. Diesel imports from China and South Korea, which have not been consistent diesel exporters to Europe, have likewise increased. In February, diesel imports reached 119,000 b/d from China and 45,000 b/d from South Korea.Although diesel imports into Northwest Europe from the United States fell from January to February 2023, over the past few months, they have been relatively high. From October 2021 through September 2022, diesel imports from the United States averaged 43,000 b/d. Imports from the United States increased to 107,000 b/d from October 2022 through February 2023.Warm weather, falling natural gas prices, and economic concerns, however, have pushed down diesel prices in Northwest Europe since January 23. The price of ultra-low sulfur diesel (ULSD) in Northwest Europe fell from $3.29 per gallon (gal) on January 23, 2023, to $2.65/gal on February 27, 2023, which is less than the price on February 23, 2022 (the day before Russia’s full-scale invasion of Ukraine).
Russian Diesel Buildup at Sea Raises Pressure on Global Supply | Rigzone --Millions of barrels of Russian diesel are being temporarily stored on oil tankers as the country deals with the fallout of European Union sanctions. Ships have been idling off the coasts of Europe, Africa and Latin America in what is by far the biggest buildup in floating storage of diesel-type fuel from Russia since the start of data collection in 2016, according to Kpler Pte. Ltd. While the product will almost certainly discharge eventually, the accumulation points to the difficulties in replacing EU buyers of Russian fuel. “They’ve continued to export it even knowing they haven’t got a home for it,” according to Mark Williams, research director of short-term oils at Wood Mackenzie Ltd. If the floating storage and unallocated volumes of barrels from Russia continue to build, there will be “a sharp reduction in diesel exports.” The EU’s ban on almost all seaborne imports of diesel — and other oil products — from Russia has cut the nation off from its main export market. If it fails to find new buyers then exports could be cut, eroding global supplies of a fuel used in everything from trucks to farming equipment. Locations for the diesel that’s been held in floating storage include off the coastlines of Morocco and Greece — both well known sites for ship-to-ship transfers of oil cargoes — which can make it harder to track the final destination. Meanwhile another cargo, The Loop, is off Brazil, while the Meronas is floating near Turkey’s coastline. “It’s not like placing a Russian diesel cargo into the market is impossible,” said Viktor Katona, an oil analyst at Kpler. “It’s really a question of timing and — especially — of the buyer’s receptivity to risk, namely if it is okay being seen buying Russian diesel.” The amount of diesel-type fuel from Russia being held in floating storage cannot keep rising forever. If it doesn’t find a home then at some point the country’s exports will have to be cut. It could ultimately even affect the nation’s ability to process crude oil. Wood Mackenzie expects the country’s diesel-type fuel exports to average 750,000 barrels a day in the second quarter, down from 1.1 million in January. A wider concern for the oil market is whether a drop in Russia’s exports of diesel-type fuel ultimately backs into the nation’s crude processing operations. With limited diesel storage options, a significant drop in exports would soon force Russian refineries to lower their output.Wood Mackenzie sees a drop of more than one million barrels a day in the country’s crude processing from the start of the second quarter versus January.
Which Countries Are Buying Russian Fossil Fuels? -A year on from Russia’s initial invasion of Ukraine, Russian fossil fuel exports are still flowing to various nations around the world. As Visual Capitalist's Niccolo Conte details below, according to estimates from the Centre for Research on Energy and Clean Air (CREA), since the invasion started about a year ago, Russia has made more than $315 billion in revenue from fossil fuel exports around the world, with nearly half ($149 billion) coming from EU nations. This graphic uses data from the CREA to visualize the countries that have bought the most Russian fossil fuels since the invasion, showcasing the billions in revenue Russia has made from these exports. As one might expect, China has been the top buyer of Russian fossil fuels since the start of the invasion. Russia’s neighbor and informal ally has primarily imported crude oil, which has made up more than 80% of its imports totaling more than $55 billion since the start of the invasion. The EU’s largest economy, Germany, is the second-largest importer of Russian fossil fuels, largely due to its natural gas imports worth more than $12 billion alone. Turkey, a member of NATO but not of the EU, closely follows Germany as the third-largest importer of Russian fossil fuels since the invasion. The country is likely to overtake Germany soon, as not being part of the EU means it isn’t affected by the bloc’s Russian import bans put in place over the last year. Although more than half of the top 20 fossil fuel importing nations are from the EU, nations from the bloc and the rest of Europe have been curtailing their imports as bans and price caps on Russian coal imports, crude oil seaborne shipments, and petroleum product imports have come into effect. Russia’s Declining Fossil Fuel Revenues The EU’s bans and price caps have resulted in a decline of daily fossil fuel revenues from the bloc of nearly 85%, falling from their March 2022 peak of $774 million per day to $119 million as of February 22nd, 2023. Although India has stepped up its fossil fuel imports in the meantime, from $3 million daily on the day of the invasion to $81 million per day as of February 22nd of this year, this increase doesn’t come close to making up the $655 million hole left by EU nations’ reduction in imports. Similarly, even if African nations have doubled their Russian fuel imports since December of last year, Russian seaborne oil product exports have still declined by 21% overall since January according to S&P Global.
Oil leak contained in Tamil Nadu coast, fishermen demand removal of pipeline - A leak in the pipeline of a refinery that caused an oil spill in Nagore Pattinacherry coast in the district here has been contained and steps are on to ensure a lasting solution to the issue, a senior official said on Saturday. However, the unrelenting fishermen from the village, who noticed the oil spill on Friday morning, continued their agitation for the second day today demanding the authorities to remove the underwater crude oil pipeline. The leak in the pipeline of the Cauvery Basin Refinery of the Chennai Petroleum Corporation Limited (CPCL) could have probably occurred on Thursday night, apparently due to damage to the old pipeline used to transport crude oil to the Karaikal port once in one-and-a-half months. Meanwhile, Chennai Petroleum Corporation Ltd said the leakage on the pipeline was arrested in the morning hours of Saturday and currently officials were engaged in flushing to make the pipeline hydrocarbon free. “The crude oil leakage which occurred in the nine km long 20″ crude oil pipeline from CPCL CBR Crude Storage Tanks at Nagapattinam to Karaikal Port on the late evening of March 2 was arrested today (March 4, 2023) morning hours,” CPCL said in a statement shared with PTI. Flushing is planned in the pipeline to make the pipeline ‘hydrocarbon free, the company said. “Though the leak in the pipeline was reported on Friday, the officials could not take up the restoration work immediately because of the high tide. Work to arrest the oil spill and clean the coast was taken up after the tide receded,” Nagapattinam District Collector A Arun Thamburaj had said earlier. Following the collector’s orders, officials from CPCL, Coast Guard, police and fire and rescue service officials worked round the clock and arrested the leakage in the early hours today. The drip in the carbon steel pipeline was clamped temporarily and the district administration has directed the refinery to find a lasting solution, a senior official said. CPCL said oil dispersants have been deployed to make the sea surface clear and also the oil recovery system is deployed to clear the area in totality. “This activity will be continued till the area is clear of hydrocarbons,” CPCL said. Workers from the CPCL used excavators to create a bund on the shoreline while sandbags were piled around the damaged pipeline to facilitate the clamping during the low tide between 1 am to 4.45 am today. The reasons for the leak in the pipeline is under investigation. Officials from CPCL with support from its parent IndianOil Company Ltd and district administration are working round the clock to complete the job expeditiously to ensure there was no impact on the environment, CPCL said.
Oil spill to reach Cuyo Islands in a week | The Manila Times - THE Department of Environment and Natural Resources (DENR) said that oil from the sunken vessel off the coast of Naujan, Oriental Mindoro will reach Cuyo Islands and get closer to northern Palawan in a week's time. A report of the University of the Philippines Marine Science Institute (UP-MSI) projected that the spill will continue due southwest to Cuyo group of islands in northern Palawan. "Using the modeled oil spill trajectories and looking at higher resolution data, we approximate that 20,000 hectares of coral reef, 9,900 hectares of mangroves and 6,000 hectares of seagrass may be affected by the oil slick in the following municipalities. More than half of potentially affected reefs (11,000 hectares) are found in the Cuyo group of islands," the UP-MSI said. The DENR said that a vessel of the National Mapping and Resource Information Authority (NAMRIA), BRP Hydrographer Ventura, arrived in Oriental Mindoro from Subic to determine the exact location of MT Princess Empress. "It will use a multibeam survey to locate the sunken vessel," the DENR said. The DENR and UP-MSI are performing disaster forensics to protect mangroves, seagrass, and over 36,000 hectares of coral reefs in Bulalacao, Oriental Mindoro and Caluya, Antique that can be potentially affected by the oil slick. Environment Secretary Maria Antonia Yulo-Loyzaga said that she is coordinating with Social Welfare and Development Secretary Rex Gatchalian, Interior and Local Government Secretary Benjamin "Benhur" Abalos Jr. and Labor Secretary Bienvenido Laguesma to finalize arrangements on the augmentation for the cash-for-work scheme for the clean-up teams in the local communities. The DENR is also coordinating with Semirara Mining and Power Corporation to help in the cleanup operations in Caluya, Antique.
DENR locates sunken tanker in Oriental Mindoro — The Department of Environment and Natural Resources on Monday said it may have detected the possible location of the sunken MT Princess Empress that leaked industrial oil into the sea. In an update, the DENR said the sunken oil tanker is located northeast of Pola town in Oriental Mindoro, “but is believed to have moved southeast from its last known position where it completely submerged.” The site is around 1,200 feet or 400 meters below sea. The agency noted the possible location of the tanker needs to be verified through the deployment of a remotely-operated vehicle. “We are now preparing to access an ROV in order to fully determine where the vessel actually is and to completely model the way the oil will be spilling from the vessel,” it said. MT Princess Empress was carrying 800,000 liters of industrial fuel when it sank in rough seas off Naujan on February 28. The University of the Philippines Marine Science Institute estimated that the slick produced by the oil spill may affect 20,000 hectares of coral reefs, 9,900 hectares of mangroves and 6,000 hectares of seagrass beds in Oriental Mindoro, Occidental Mindoro, Palawan and Antique. The marine scientists also said that coastal communities — especially those on the eastern and southern sides of Oriental Mindoro, including Caluya Island in Antique, and potentially Cuyo Island in Palawan — should prepare for the possibility that the oil spill could reach their shores. Fishers from Brgy. Melgar A in Naujan said the slick has not yet reached their shore. But their fishing activities have been put on hold, leaving them short on cash and food. They are hoping the government will immediately address the problem, and provide them with financial assistance and alternative livelihood. Oriental Mindoro Governor Humerlito Dolor ordered the province’s 18,000 fishers to stay ashore until it is safe to fish. MT Princess Empress sank near the Verde Island Passage (VIP), which is globally recognized for its rich marine biodiversity. Over two million individuals, such as fishers and tourism workers, rely on VIP for food and income.
P10 million fine on shipowners for oil spill eyed in House bill - A bill imposing as much as P10 million penalty to shipowners who will be found guilty of discharge or emission of oil, sewage, garbage and other harmful substances and pollutants into Philippine seas has been filed in the House of Representatives.Negros Occidental Representative Kiko Benitez made the proposal under his House Bill 7515 which he filed after the sinking of a tanker carrying 800,000 liters of oil off Naujan, Mindoro. The bill provides for the strict enforcement of the regulations under the 1973 International Convention for the Prevention of Pollution from Ships and its 1978 Protocol, or MARPOL 73/78, which the Philippines signed in 2001."We signed MARPOL 73/78 in 2001. An implementing legislation is long overdue. We must keep our commitment to international law, and perform our responsibility to protect the environment," Benitez said.“We cannot let another oil spill happen again. Its damage to the marine environment is just too much. It is impossible to express the negative impact to livelihoods and marine ecosystems in monetary terms,” he added.
Saudi Aramco Hikes Official Selling Prices of Arab Crude - Saudi Aramco has increased Official Selling Prices (OSPs) for April-loading crude to Asia, Europe, and America largely in line with expectations of oil demand recovery during the second quarter of 2023. For Aramco's key customer base in Asia, differentials for the flagship Arab Light grade were lifted to Platts Dubai/DME Oman +$2.50/b for loading next month. Arab Light for April to the US was up +$6.65/b over ASCI (Argus Sour Crude Index). This coincides with optimism in the oil markets about the increasing demand for oil from China, the biggest oil importer globally. Brent and WTI notched their third biggest weekly percentage gains this year as strong Chinese economic data fed hopes for oil demand growth. Brent crude futures traded at $85 a barrel. US West Texas Intermediate (WTI) crude futures settled at $80 a barrel. Both benchmarks posted their highest closing levels since Feb. 13. The head of the International Energy Agency (IEA), Fatih Birol, told the French publication Liberation that "Russia has lost the energy battle." Russia's position as a significant energy supplier has suffered a permanent setback following the West's abandonment of Moscow's oil and gas due to its war in Ukraine, according to the head of IEA. He noted that Moscow's oil and gas exports have fallen by 40 percent since its military forces invaded Ukraine a year ago, adding that this is just the start of its problems. Birol also emphasized that the departure of foreign experts from Russia would result in a decrease in oil and gas production without their technical support. It would take years to build pipelines from Western Siberia to China, he added. “Russia's role in international energy affairs will be much less important in the future,” Birol said. Exports via a major pipeline, which delivers natural gas to mainland Europe from the UK through Belgium, have been shut due to an equipment failure, according to Bloomberg. The late Saturday halt to the link’s export capacities is expected to last until March 8, operator Interconnector Ltd said in a notice on its website Sunday. The pipeline has been an important source of supplies to the European Union after severe cuts in exports from Russia. Even so, flows from Britain already fell last week as a late-winter cold snap boosts the country’s domestic demand for the fuel.
Oil prices down on China outlook, spotlight on possible rate hikes (Reuters) -Oil prices slipped on Monday after China set a lower-than-expected target for economic growth this year at around 5%, and as investors cautiously awaited U.S. Federal Reserve Chair Jerome Powell's testimony this week. Brent crude futures were trading down 71 cents, or 0.8%, at $85.12 a barrel at 1000 GMT. U.S. West Texas Intermediate (WTI) crude futures were also down 59 cents or 0.7% at $79.09. "Crude remains in a tug-of-war between optimism over Chinese reopening and nervousness over a hawkish Fed hurting the U.S. economy," said Vandana Hari, founder of oil market analysis provider Vanda Insights. China's closely watched growth outlook, announced on Sunday, was lower than its 5.5% gross domestic product (GDP) growth target last year. GDP grew last year by just 3%. Policy sources had told Reuters a range as high as 6% could be set for 2023. Premier Li Keqiang said on Sunday the foundation for stable growth in China needed to be consolidated, insufficient demand remained a pronounced problem, and the expectations of private investors and businesses were unstable. Both crude benchmarks settled more than $1 higher on Friday after two sources told Reuters a report that the United Arab Emirates was considering leaving OPEC was inaccurate. At the same time, oil prices are likely to be impacted by rate hikes across the world as global central banks tighten policy over fears of increasing inflation. Traders have started factoring in rate hikes, but are hoping for smaller increases than last year. U.S. Federal Reserve Chair Jerome Powell will testify to Congress on Tuesday and Wednesday, where he will likely be quizzed on whether larger hikes are needed in the world's largest oil consuming country. Future U.S. rate hikes are also likely to depend on what the February payrolls report reveals on Friday, followed by the February inflation report due next week. Over the weekend, European Central Bank President Christine Lagarde said it was "very likely" the bank would raise interest rates this month to keep a lid on inflation.
The Crude Market on Monday Erased its Earlier Losses and Settled in Positive Territory - The crude market on Monday erased its earlier losses and settled in positive territory for the fifth consecutive session. The market retraced some of its previous losses amid the news that China set a lower than expected target for economic growth this year at about 5%. The oil market remains in a tug of war between optimism over China’s reopening and concerns over a hawkish Fed hurting the U.S. economy. The crude market sold off to a low of $78.32 in overnight trading before it bounced off its low and erased its earlier losses as the market shrugged off the predictions and remained hopeful that overall global oil demand will strengthen through the rest of the year. It rallied to a high of $80.49 by mid-day before settling in a sideways trading pattern ahead of the close. The April WTI contract settled up 78 cents at $80.46, while the April Brent contract settled up 35 cents at $86.18. The product markets ended mixed, with the heating oil market settling down 2.65 cents at $2.8866 and the RB market settling up 4.61 cents at $2.7965. Goldman Sachs expects Brent crude oil to start gradually moving higher this month, reaching $100/barrel in December. Chevron Corp’s Chief Executive, Mike Wirth, said oil market and logistics are tight and vulnerable to any unexpected supply disruption as Russian oil is still getting to the market but at different costs. Gunvor’s CEO, Torbjorn Tornqvist, said crude prices may increase in the second half of the year as Chinese demand returns to the market, adding that the oil market has stabilized. The CEO of oilfield service firm SLB, Olivier Le Peuch, said the company expects oil prices to move higher amid a shortfall in supply. He said he anticipates moderate growth this year. Northwest Europe gasoline exports to the U.S. and West Africa in February fell to their lowest level since January 2022. February loadings fell to 1.65 million tons, down from 2.2 million tons in January and 2.64 million tons in February 2022. Separately, Refinitiv reported that there are now at least three newly built VLCC’s laden with diesel heading to Europe, with total February imports reaching 6.7 million tons. Estonia’s Foreign Minister, Urmas Reinsalu, said the European Union should halve the $60 price cap on Russian oil this month and further cut Russia’s ability to fund the war in Ukraine. Ecuador’s Petroecuador has lifted its force majeure declaration from late February following a bridge collapse and will soon bring crude oil exports back online. IIR Energy reported that U.S. oil refiners are expected to shut in about 1,467,000 bpd of capacity in the week endin g March 10th, increasing available refining capacity by 152,000 bpd. Offline capacity is expected to fall to 1,286,000 bpd in the week ending March 17th.
Oil Prices Slip On China Data - Oil prices fell on Tuesday amid concerns over demand from China and caution ahead of testimony before Congress by Federal Reserve Chair Jerome Powell. Benchmark Brent futures slipped 0.2 percent to $85.97 a barrel, with a weaker dollar helping cap the downside. WTI crude futures were down 0.2 percent at $80.30. A fall in China's exports for the January-February period pointed to continued weakness in demand for the country's products. China's exports declined 6.8 percent in the January to February period from the same period last year, reflecting the challenges posed by the global economy, official data showed today. However, the annual decrease was slower than the 9.9 percent drop posted in December and also better than economists' forecast of 9.4 percent fall. Despite re-opening of the economy, imports logged a double-digit decline of 10.2 percent in the January to February period that was worse than December's 7.5 percent decrease and the expected 5.5 percent fall. Meanwhile, the dollar slipped in early European trade amid bets that Fed Chair Jerome Powell will sound less hawkish during a two-day testimony before Congress, beginning later in the day.
USA EIA Cuts 2023 Oil Price Forecasts The U.S. Energy Information Administration (EIA) lowered its Brent and West Texas Intermediate (WTI) oil price forecasts for 2023 in its latest short term energy outlook (STEO), which was released this week. According to the March STEO, the EIA now sees the Brent spot price averaging $82.95 per barrel and the WTI spot price averaging $77.10 per barrel this year. In its previous STEO, which was released at the start of February, the EIA projected that the Brent spot price would average $83.63 per barrel and that the WTI spot price would average $77.84 per barrel in 2023. The March and February STEOs had identical oil price forecasts for 2024. They both saw the Brent spot price averaging $77.57 per barrel and the WTI spot price averaging $71.57 per barrel next year. “We expect that the Brent crude oil spot price will fall from an average of $84 per barrel in the second quarter of 2023 to $81 per barrel in 4Q23, and then average $78 per barrel in 2024,” the EIA stated in its latest STEO. “Although we expect global oil inventories will build throughout the forecast period, we expect that high demand for crude oil from refineries because of elevated refining margins will limit downward pressure on crude oil prices through 2Q23 as refiners maintain high levels of crude oil inputs to maximize distillate fuel production,” the EIA added in the STEO. “Russia was a key supplier of distillate fuel to Europe, and changes in distillate trade flows as Europe reduced imports of distillate from Russia in recent months have kept distillate fuel margins well-above five-year averages. However, we forecast that increasing global oil inventories will contribute to falling crude oil prices beginning in 3Q23,” the EIA continued. In its latest STEO, the EIA noted that it expects global oil and liquid fuels production will average 101.5 million barrels per day in 2023, which the organization outlined would be up 1.6 million barrels per day from 2022. The EIA stated in its March STEO that it expects global liquid fuels consumption to increase by 1.5 million barrels per day in 2023 from 2022. The organization is currently projecting total world consumption of 100.90 million barrels per day in 2023. In an oil price outlook report sent to Rigzone this week, Fitch Solutions Country Risk & Industry Research lowered its Brent oil price forecast for 2023. According to the company’s report, Fitch Solutions now sees Brent averaging $90 per barrel this year. The company’s previous oil price outlook report, which was sent to Rigzone at the start of February, showed that the company expected Brent to average $95 per barrel in 2023. The Bloomberg Consensus in the latest report saw Brent coming in at $88 per barrel this year, while the Bloomberg Consensus in the previous report saw Brent at $87.3 per barrel in 2023. In a separate report sent to Rigzone this week, Standard Chartered maintained its Brent oil price forecast of $91 per barrel for this year. Standard Chartered reports sent to Rigzone in February and January this year showed the same Brent price projection for 2023. At the time of writing, the price of Brent crude oil stood at $82.52 per barrel and the price of WTI stood at $76.51 per barrel. The 2023 Brent peak close, so far, was seen on January 23, at $88.19 per barrel, while the commodity’s lowest 2023 close, so far, was seen on January 4, at $77.84 per barrel. The 2023 WTI peak close, so far, was on January 26, at $87.47 per barrel, and the lowest 2023 WTI close, so far, was seen on January 4, at $72.84 per barrel.
WTI Dives 3% on Powell's Hawkish Remarks, Eyed Crude Build -- New York Mercantile Exchange oil futures plunged more than 3% on Tuesday, pressured by a selloff in financial markets after Federal Reserve Chairman Jerome Powell signaled during prepared remarks before Congress that the central bank is prepared to lift interest rates higher to combat inflation that has reversed the downtrend experienced at the start of the year. Powell opened the door for a 50-basis point rate hike at the Fed's next policy meeting on March 21-22, spooking investors across financial and commodity markets. "The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated," Powell said in remarks to the Senate Banking, Housing and Urban Affairs Committee Tuesday morning. "If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes." What could complicate Powell's message, however, is macroeconomic data scheduled to be released between now and March 22, which include employment and inflation reports for the month of February, that will likely influence the Fed's decision-making. Investors anticipate rates would rise to around 5.5% by midyear and remain there through the end of 2023, according to CME Group. In volatile trading Tuesday, the Dow Jones Industrial Average lost nearly 570 points or 1.7%, while the S&P 500 shed 1.5% of value. As the major stock indexes fell, the U.S. dollar index rallied 1.2% against a basket of foreign currencies to 105.592, pressuring front-month West Texas Intermediate futures that have an inverse relationship with the greenback. WTI futures for April delivery plunged $2.88 from a six-week high settlement on the spot continuous chart from the previous session to $77.58 bbl Tuesday. Further pressuring the oil complex, traders and analysts anticipate U.S. commercial crude stocks increased for the 11th straight week through March 4 -- the longest inventory building pattern since the COVID-19 pandemic shuttered large chunks of the economy in Spring 2020.
Oil stabilizes as surprise U.S. crude draw offsets rate hike jitters -- Oil prices steadied in early Asian trade on Wednesday as industry data showed a draw in U.S. crude oil inventories, after the market tumbled in the previous session on fears more aggressive U.S. interest rate hikes would hit demand. Brent crude futures for April gained 8 cents to $83.37 per barrel by 0120 GMT. U.S. West Texas Intermediate (WTI) crude futures lost 4 cents to $77.54 a barrel. Supporting the market on Wednesday, data from the American Petroleum Institute showed U.S. crude inventories fell by about 3.8 million barrels in the week ended March 3, according to market sources. The drawdown defied forecasts for a 400,000 barrel rise in crude stocks from nine analysts polled by Reuters. Gasoline inventories rose by about 1.8 million barrels, while distillate stocks rose by about 1.9 million barrels, according to the sources, who spoke on condition of anonymity. Both Brent and WTI fell more than 3% on Tuesday after comments by U.S. Federal Reserve Chair Jerome Powell that the central bank would likely need to raise interest rates more than expected in response to recent strong data. "This raised concerns of weaker demand in the U.S.," ANZ Research analysts said in a note to clients. Powell's comments propelled the U.S. dollar, which typically trades inversely with oil, to hit a three-month high against a basket of currencies. The dollar index rose as high as 105.65, up 1.3% on Tuesday and the highest since Dec. 6. The euro dropped 1.28% to $1.0548.
Oil Futures Waver as Markets Reprice Fed Funds Rate -- Oil Futures were little changed early Wednesday as the U.S. dollar extended gains on the back of hawkish remarks from Federal Reserve Chairman Jerome Powell who signaled the central bank is prepared to speed up the pace and scope of rate hikes this year, prompting a resetting of expectations for higher terminal interest rates. More than 70% of investors anticipate the Federal Open Market Committee will lift interest rates by 50 basis points during the March 21-22 meeting, up from 30% seen only a week ago. What's more, markets raised the expected peak rate to the range of 5.50% to 5.75% to be reached as early as June, implying a full percentage point in interest rate hikes between now and the June 14 meeting. The repricing of the Fed's funds rate comes after Chairman Powell's surprisingly hawkish remarks in front of the Senate Banking and Housing Committee on Tuesday where he acknowledged that January data is too close for comfort to slow the pace of rate increases. "The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated. If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes." said Powell. Separately, the American Petroleum Institute reported on Tuesday U.S. commercial crude-oil inventories unexpectedly declined through March 3 while gasoline and distillate fuel stocks posted a build. The report detailed a drop of 3.835 million barrel (bbl) in commercial crude oil stocks, missing calls for an increase of 700,000 bbl. Should the EIA data confirm the drawdown, this would be the first decline in domestic crude oil stocks since mid-December 2022. Inventories at the Cushing, Oklahoma, tank farm, the New York Mercantile Exchange delivery point for West Texas Intermediate futures, gained 24,000 bbl on the week. Gasoline inventory posted a build of 1.840 million bbl in the reviewed week, missing estimates for a drop of 1.4 million bbl. The data show distillate inventory increased 1.927 million bbl versus an expected 1 million bbl draw. Near 7:45 a.m. EST, WTI futures for April delivery softened $0.48 to $77.10 bbl, and the international crude benchmark Brent contract with May delivery declined to $82.94 bbl. NYMEX RBOB April futures fell back $0.0237 to $2.6770 gallon, and ULSD April futures lost $0.0172 to $2.7803 gallon.
WTI Rebounds After 'Surprise' Crude Draw, 'Adjustment Factor' Swings Negative - Oil prices extended yesterday's losses overnight as markets came to grips with the prospect that the Fed will continue aggressive rate increases, hampering US demand. “Many traders have seen this movie before and are not buying the dip until the macro environment stabilizes and the physical market fundamentals are resoundingly bullish.”Last night's API report showed a crude draw, all eyes are now on the official data to see if it confirms. API
- Crude -3.835mm (+700k exp)
- Cushing +24k
- Gasoline +1.84mm (-1.4mm exp)
- Distillates +1.927mm (-1.0mm exp)
DOE
- Crude -1.694mm (+700k exp)
- Cushing -890k
- Gasoline -1.134mm (-1.4mm exp)
- Distillates +138k (-1.0mm exp)
US Crude inventories saw a 1.694mm barrel drawdown last week - the first draw in 11 weeks. Cushing stocks also drewdown (for the first time in 10 weeks). Gasoline inventories dropped for the 3rd straight week while Distillates saw a small build... Cushing stocks dropped very modestly... The constant ramp this year in total US crude stocks (ex SPR) came to an end this week... US Crude production fell modestly as the rig count declines... WTI was trading just below $77 before the official data hit and rallied after the draw. It appears we have an answer to our question of will the EIA un-fudge their ridiculous 'adjustment factor' Shocked! a negative adjustment! The biggest weekly swing negative in history...
Oil down 2nd day as spooky Fed offsets U.S. crude draw impact -- Crude prices fell a second day in a row on Wednesday as supportive U.S. inventory data was canceled out by Federal Reserve Chair Jerome Powell’s testimony to Congress, which continued to spook traders worried about the intensity of oncoming rate hikes. U.S. crude inventories fell by 1.694 million barrels last week for their first weekly drop since December after 10 straight weeks of builds that added some 60M barrels to inventories, the Energy Information Administration, or EIA, said in its Weekly Petroleum Status Report. Market attention, however, was more on Powell, where the Fed chair in a second day of testimony before Congress, indicated the central bank would if needed. raise rates higher than previously anticipated. The dollar hit a 15-week high on speculation that the March 22 rate decision of the Fed could result in a 50-basis point hike versus the 25-bp rise many had bet on before. “The terminal rate is likely to be higher than we expected,” Powell said, referring to the point at which the Fed would stop rate hikes, a level traders were speculating to be as high as 5.75% versus the current 4.75% peak for U.S. interest rates. New York-traded West Texas Intermediate, or WTI, settled at $76.66 per barrel, down 92 cents, or 1.2%, after Tuesday’s 3.6% slide. The two-day drop came after Monday’s close of above $80 for WTI, its first in three weeks. London-traded Brent crude settled at $82.66, down 63 cents, or 0.8%. The global crude benchmark fell 3.4% in the previous session. Like WTI, Brent’s plunge came after a three-week high in its settlement on Monday, where it closed at above $86. “Crude prices can’t shake off fears that the Fed is going to send the U.S. economy into a bad recession,” The crude stockpile draw reported by the EIA was the first since the week ended Dec. 30 and came after 10 weeks of builds that coincided with seasonal maintenance and other disruptions at U.S. refineries leading to less processing of oil. Industry analysts tracked by Investing.com had forecast a build of 0.395M barrels on average for the week ended March 3. Refineries operated at 86% of their operable capacity last week, the EIA said. Typically, inventory runs at this time of the year are about 90% or more. U.S. crude oil refinery inputs averaged 15.0M barrels per day last week, some 12,000 less than the previous week’s average. Gasoline production decreased last week, averaging 9.6M barrels per day, and distillate fuel production fell as well, averaging 4.5M barrels daily. On the gasoline inventory front, the EIA reported a draw of 1.134M barrels last week, versus the forecast decline of 1.863M and against the previous week's deficit of 0.847M. Automotive fuel gasoline is the No. 1 U.S. fuel product. While gasoline inventories fell, distillate stockpiles rose for a third week in a row. Until late January, distillates, which are refined into heating oil, diesel for trucks, buses, trains, and ships, and fuel for jets, were the strongest component of the U.S. petroleum complex in terms of demand. Distillate stockpiles rose by 0.138M versus the expected slide of 1.038M. In the previous week, distillates rose by 0.179M.
Oil rises as weaker dollar, French strike balance recession fears - Oil steadied on Thursday after a two-day decline as strike-disrupted fuel supply in France, a drop in U.S. crude inventories and a weaker dollar offset fears over the economic impact of rising interest rates. TotalEnergies was unable to make deliveries from its French refineries on Thursday because of continued strike action a day after data showing an unexpected decline in U.S. crude inventories last week. The halt in deliveries from those refineries and slight weakness in the dollar might attract some short-covering, Tamas Varga of oil broker PVM told Reuters, adding that any gains are likely to be capped by the prospect of higher interest rates. Brent crude rose by 5 cents to $82.71 a barrel by 1305 GMT while U.S. West Texas Intermediate (WTI) crude added 6 cents to $76.72. Both benchmarks fell by between 4% and 5% over the previous two days. "We're broadly seeing oil prices steady," said Craig Erlam of brokerage OANDA. "As things stand, more rate hikes mean less chance of a soft landing and therefore lower crude demand." U.S. Federal Reserve Chair Jerome Powell's comments this week on the likelihood that interest rates will need to be raised more than previously expected in response to recent strong data continued to weigh on the market. Oil had registered its largest daily fall since early January after Powell's comments on Tuesday. Still, in the second day of his testimony on Wednesday, Powell struck a cautious note, saying debate on the scale and path of future rate increases was ongoing and would depend on data, prompting a pause in the dollar's rally. A weaker dollar makes oil cheaper for buyers holding other currencies and tends to support risk appetite among investors.
Oil prices slip 1% to two-week low on recession worries (Reuters) -Oil prices slid about 1% to a two-week low on Thursday on increased worries the U.S. Federal Reserve may go too far with its interest rate hikes to control inflation, which could cause a recession and reduce future oil demand. The U.S. central bank uses higher interest rates to reduce inflation. But those higher rates increase consumer borrowing costs, which can slow the economy. "The Fed is continuing to come ... for inflation and that is translating into fears over lower oil demand down the road because of a possible recession," Brent futures fell $1.07, or 1.3%, to settle at $81.59 a barrel, their lowest close since Feb. 22. U.S. West Texas Intermediate (WTI) crude fell 94 cents, or 1.2%, to settle at $75.72, their lowest close since Feb. 27. That put both benchmarks down for a third day in a row with WTI down about 6% and Brent down about 5% during that time. The number of Americans filing new claims for unemployment benefits increased by the most in five months last week, but the underlying trend remained consistent with a tight labor market. Renewed hawkishness from the Fed is pushing investors to game out how a regime of “higher for longer” interest rates could weigh on U.S. stocks with some market watchers saying the combination of higher bond yields and sticky inflation bodes poorly for equity returns. The U.S. bond auction Thursday afternoon "spooked the market" and "was the catalyst for the risk off sentiment" for the oil and stock market declines. Crude futures and Wall Street stocks were both trading higher Thursday morning on thoughts the U.S. unemployment data could push the Fed to slow the pace of future interest rate hikes. Wall Street stocks fell on Thursday, with all three major stock indexes down as investors worried that a jobs report on Friday could spur aggressive interest rate hikes by the Federal Reserve. Analysts expect the U.S. economy to have added 205,000 jobs last month - a sharp deceleration from January - and see the unemployment rate holding firm at 3.4%. Also supporting oil prices earlier on Thursday, TotalEnergies was unable to make deliveries from its French refineries on Thursday because of continued strike action a day after data showed an unexpected decline in U.S. crude inventories last week. "The halt in deliveries from TotalEnergies' French refineries due to the nationwide strikes together with the slight weakness in the dollar might attract some shorts to cover part of their positions,"
WTI Slides Below $75 Ahead of US Employment Report -- New York Mercantile Exchange oil futures extended losses into early morning Friday, with West Texas Intermediate on course for a 6% decline this week pressured by weak fuel demand and hawkish comments from Fed Chairman Jerome Powell as markets positioned ahead of the U.S. employment report that will likely help to set the direction of the federal funds rate. The U.S. economy likely added 225,000 new jobs in February -- the lowest monthly gain since April 2022 and a marked slowdown from January's neck-breaking pace of 517,000 new jobs. The unemployment rate is still expected to remain near its 54-year low of 3.4% and the participation rate is seen unchanged at 62.4%. Should the February employment report come in with more than 250,000 job gains, it could be interpreted by investors that the labor market is much more immune to the interest rate increases than previously thought. This would be bad news for the Federal Reserve, which has tried for nearly a year to cool down the labor market. According to the Fed's own projections, the unemployment rate would have to rise to 4.6% this year from the current 3.4% to bring down inflation to 3.1%, a magnitude of change that is usually seen only in recessions. For comparison, PCE inflation -- the Fed's preferred gauge of consumer prices -- currently stands at 5.4% and the core measure of inflation, which excludes volatile food and energy prices, is at 4.7%. Both measures are far above the Fed's 2% inflation target. Fed Chair Powell and his colleagues warned this week that inflation appears to have partially reversed the downtrend that might be linked to warmer-than-usual weather or reflective of sticky price pressured in the underlying economy. Against this backdrop, investors will likely pay close attention to average hourly earnings for any clues of a wage spiral in the February jobs report. This week's economic data showed some cooling signs in the labor market, with unemployment claims for the week ended March 4 increasing more than expected to above 210,000 -- the largest week-to-week increase in claims since early October. Meanwhile, job openings in January dropped to 10.8 million from December's 11.2 million, coinciding with some private-sector data showing early signs of demand for U.S. workers easing. The Federal Open Market Committee will meet for a two-day policy meeting on March 21-22 to decide on its next rate move. More than 70% of investors anticipate the FOMC will lift the federal funds rate by 50 basis points during the meeting, up from 30% seen only a week ago. In early morning trading, West Texas Intermediate futures for April delivery declined $0.52 to $75.20 barrel (bbl), and international crude benchmark Brent contract for May delivery dropped to $81.16 bbl, down $0.42 bbl. NYMEX RBOB April futures fell to $2.5962 gallon, and ULSD April futures edged higher by $0.0150 to $2.6839 gallon.
Oil prices tick up after U.S. payrolls, but set for weekly drop - Oil prices climbed more than 1% on Friday after better-than-expected U.S. employment data, though both benchmarks fell more than 3% on the week on U.S. interest rate hike jitters. Brent rose $1.19, or 1.5%, to $82.78 a barrel. U.S. West Texas Intermediate crude (WTI) was up 96 cents, or 1.3%, at $76.68. Expectations of further rate hikes in the world's largest economy and in Europe have clouded the global growth outlook and driven both crude benchmarks down this week. However, the U.S. Federal Reserve may have less reason to raise interest rates as sharply or as high as some had thought after a government report on Friday rekindled hopes of easing inflation amid signs the pandemic-disrupted labor market is normalizing. Fed Chair Jerome Powell has warned of higher and potentially faster rate hikes, saying the central bank was wrong in initially thinking inflation was "transitory". Its next monetary policy meeting is planned for March 21-22. "Oil prices are fluctuating wildly on renewed fears of Fed interest rate increases," A strengthening dollar is also making oil more expensive for holders of other currencies. Global shares, which often move in tandem with oil prices, hit a two-month low as investors dumped banks. Broader U.S. employment data for February beat expectations with nonfarm payrolls rising by 311,000, compared with expectations of 205,000 jobs added, according to a Reuters survey. This is likely to ensure that the Fed will raise interest rates for longer, which analysts have said would weigh on oil prices. On the supply side, major oil producers Saudi Arabia and Iran, both members of the Organization of the Petroleum Exporting Countries, re-established ties on Friday after days of previously undisclosed talks in Beijing. U.S. oil rigs fell by 2 to 590 this week, their lowest since June, according to data from Baker Hughes. Meanwhile, the United States was reported to have privately urged some commodity traders to shed concerns about shipping price-capped Russian oil in a bid to shore up supply. Investors are closely monitoring export cuts from Russia, which decided to trim oil output by 500,000 barrels per day in March. U.S. President Joe Biden also proposed a budget on Thursday that would scrap billions of dollars in oil and gas industry subsidies.
Oil Posts Weekly Loss Despite Friday Gains | Rigzone - Oil posted a weekly loss with macroeconomic headwinds dominating the market as traders await clearer signals on Chinese demand trends. Crude declined $3 this week despite Friday’s gains amid fears that the Federal Reserve will pivot to more aggressive interest-rate hikes, compounding pressure from tempered economic projections from China and a slower-than-expected recovery in international travel. Bulls looking for a supply-driven bump have been disappointed by the resilience of Russian crude output. “Risk appetite is dominating as crude traders shy away from substantially increasing their positioning with prices locked into a tight range,” said Daniel Ghali, a commodity strategist at TD Securities. The market has had a bumpy year so far, tugged back and forth by the opposing drivers of US slowdown concerns and China’s rebound. Most major banks expect demand to surge in the second half of the year, with Chinese international travelers playing a key role. The possibility of such a rebound from the world’s biggest consumer of the commodity appears to be increasing as a key proxy for Asian oil demand is rallying. WTI for April delivery gained 96 cents to settle at $76.68 a barrel. Brent for May settlement increased $1.19 to settle at $82.78.
UN buys huge ship to avert catastrophic oil spill off Yemen -The UN has purchased a huge ship that it hopes will prevent an environmental catastrophe off the coast of Yemen.For years, more than a million barrels of crude oil have been sitting on a decaying supertanker in the Red Sea.There are fears the vessel could soon break apart or explode, risking one of the worst oil spills in recent memory.But on Thursday, the UN said it had purchased a crude carrier that would head to Yemen and remove the oil from the stricken ship."The purchase of this suitable vessel... marks the beginning of the operational phase of the plan to safely remove the oil and avoid the risk of an environmental and humanitarian disaster," Achim Steiner from the UN Development Programme (UNDP) said, adding that it was a "major breakthrough".A UNDP statement said the ship - which it purchased from major tanker company Euronav - was undergoing routine maintenance in China and would arrive for the operation in early May."A major spill would devastate fishing communities on Yemen's Red Sea coast, likely wiping out 200,000 livelihoods instantly. Whole communities would be exposed to life-threatening toxins. Highly polluted air would affect millions," it said.The organisation added that a potential oil spill could cost up to $20bn (£16.7bn) to clean up.The UN had been searching for years for a solution and appealed for donations. The planned operation is estimated to cost $129m of which $75m has been received and another $20m has been pledged, it said.The stranded ship - the FSO Safer - was left abandoned off the port of Hodeida after Yemen's civil war broke out in 2015. It has not been serviced since.It was constructed as a supertanker in 1976 and converted later into a floating storage for oil. It is anchored near the Ras Isa oil terminal, which is controlled by Yemen's rebel Houthi movement.The 376m (1,233ft) vessel holds an estimated 1.14m barrels of crude oil.The Safer's structural integrity has deteriorated significantly since maintenance operations were suspended in 2015, when the Houthis seized large parts of Yemen and a Saudi-led coalition intervened in support of the government. The ensuing conflict has reportedly killed more than 150,000 people and left more than 23 million in need of aid.Mr Steiner told reporters on Thursday: "Let me be very clear - this is a risky operation and things could go wrong." He added that it could still be suspended if they fail to raise enough funds.
Huwara offensive against Palestinians fuels anti-Netanyahu protests in Israel --Ongoing attacks on Palestinians in the occupied West Bank make it clear that the pogrom-like rampage by hundreds of Israeli settlers on the town of Huwara on February 26, while Israeli troops stood by, is part of a broader campaign of ethnic cleansing. Waged by Zionist settlers, it proceeds under the protection of the Israel Defense Forces (IDF) and is led politically by the newly installed government of Prime Minister Benjamin Netanyahu, which includes fascistic, racist and ultra-religious parties. Their declared aim is to annex the Palestinian territories and implement apartheid rule, as embodied in the “Nation-State Law” enshrining Jewish supremacy as the legal foundation of the state. Vigilante mobs attacked Huwara, beating residents with metal rods and rocks, killing one person and injuring 400 more, as well as setting fire to scores of homes and shops and hundreds of vehicles in a four-to-five-hour orgy of violence. They also attacked Burin and Einbus in the northern West Bank. All are in a part of the West Bank under Israeli security control and just minutes away from an army brigade headquarters. But Israeli soldiers stood by during the rampage. Not a single government minister condemned the atrocity. Just 10 people were arrested, of whom all but one were released. Itamar Ben-Gvir, national security minister and fascistic leader of Jewish Power, declared, “The government of Israel, the state of Israel, the IDF, the security forces—they are the ones who have to crush our enemies,” not the settlers. On Wednesday, Finance Minister and Religious Zionism leader Bezalel Smotrich, responsible for the settlements in the West Bank, said that Israel should “wipe out” Huwara, a demand tantamount to the horrors inflicted on the Palestinians when more than 700,000 were driven out in 1948-49 at the hands of Zionist militias. The town’s stores have only just reopened, following orders by the IDF to keep their doors shuttered that left storekeepers without an income. Settlers have issued threats on social media that they will return to the town in a repeat of their rampage. They plastered the area with posters demanding the army “crush” its enemies. One declared, “The intifada is here. We demand to crush! We demand to respond with war!” Yesterday, Israeli forces stormed the Umm Said area, southeast of Beit Lahm, and demolished a Palestinian mosque, claiming it had been built without a building permit, which the Israeli authorities never grant. On January 23, soldiers stormed the Palestinian town of Isawiyyeh and the Khan Al-Ahmar community in East Jerusalem, where they demolished a greenhouse. The United Nations’ Office of the High Commission for Human Rights (OHCHR) recently called on the major powers to take action against Israel’s systemic and arbitrary demolition of Palestinian buildings. Israel demolished 132 Palestinian structures, including 34 residential and 15 donor-funded structures, across 38 West Bank communities in January alone, a 135 percent increase on 2022.
Netanyahu Slams IAEA Chief For Saying Attacks On Iran Nuclear Facilities 'Outlawed' --Israeli Prime Minister Benjamin Netanyahu on Sunday slammed International Atomic Energy Association (IAEA) chief Rafael Grossi for saying attacks on nuclear facilities are "outlawed."Israel has a history of launching covert attacks against Iranian nuclear facilities, and Netanyahu has been threatening to take more overt action. US officials have also said President Biden will keep a military option on the table to prevent Iran from acquiring a nuclear weapon even though the Pentagon and CIA recently acknowledged Tehran is not seeking a bomb. Grossi just returned from a visit to Iran, where he secured a pledge for the IAEA to receive more access to Iranian nuclear facilities. When asked about the US and Israeli threats, Grossi said that "any military attack on a nuclear facility is outlawed, is out of the normative structures that we all abide by."Netanyahu called the remarks "unworthy" in comments at a cabinet meeting. "Rafael Grossi is a worthy person who made an unworthy remark," Netanyahu said, and questioned:"Outlawed by what law? Is Iran, which publicly calls for our extermination, allowed to protect its weapons of destruction that will slaughter us?"Often missing from the conversation about Iran’s nuclear program is the fact that Israel has a secret nuclear arsenal that is not subject to any inspections. The US doesn’t acknowledge the existence of Israel’s arsenal and doesn’t pressure Israel to sign the Non-Proliferation Treaty.
Saudi Arabia and Russia Vaunt OPEC+ Ties - Saudi Arabia and Russia reaffirmed close cooperation in the OPEC+ oil cartel, and discussed Ukraine, grains and Syria at a foreign ministers’ meeting Thursday. Saudi Foreign Minister Prince Faisal bin Farhan said he spoke with his Russian counterpart about “the importance of deep coordination between the Kingdom and Russia in the energy markets” and expressed his country’s “unflinching commitment” to the OPEC+ agreement. Speaking at a joint press conference in Moscow, Russian Foreign Minister Sergey Lavrov said that energy cooperation was not affected by the war in Ukraine. The US and its allies have been seeking to isolate Moscow for its invasion with sanctions and have armed Ukrainian forces in the conflict. The next OPEC+ ministerial meeting is in early June. US President Joe Biden last October accused Riyadh of siding with Russia when OPEC+ cut production despite pleas from Washington to do otherwise. US-Saudi relations hit a new low over oil policy, and Moscow has sought to capitalize on the rift. The Saudi foreign minister’s visit to Moscow comes after he went on a surprise trip to Kyiv at the end of last month, the first visit by a senior Saudi official in 30 years. Saudi Arabia, which has been involved in prisoner swaps between Russia and Ukraine, would continue to “search for the possibilities of facilitating dialog between both sides,” Prince Faisal said. Gulf Arab states have sought to hedge their positions between Moscow and Kyiv. Lavrov also spoke on Syria, where Russia has been deeply involved since 2015 in support of President Bashar Al-Assad. He said Syria should be allowed back to the Arab League. Saudi Arabia has said such a move is premature.
Top US General Makes Rare Visit To Syria, Reaffirms Occupation - Chairman of the Joint Chiefs of Staff Mark Milley made a rare, unannounced visit to Syria on Saturday, which was his first trip there as America's top general. The purpose was to reaffirm the US troop presence and mission there even as the public has by and large grown weary of foreign military entanglements.An official estimate of some 900 American troops remain in the northeast portion of the country, which is Syria's oil and gas rich region which before the war supplied the rest of the country. Also the US has troops at Tanf base on the Iraq-Syria border. Milley was asked by reporters if the Pentagon's presence in Syria was worth the risk. He responded: "If you think that that’s important, then the answer is 'Yes,'" according Reuters."So I think that an enduring defeat of ISIS and continuing to support our friends and allies in the region … I think those are important tasks that can be done," he added. For years US special forces have advised and assisted the Kurdish-led Syrian Democratic Forces (SDF). They maintain control of the major oil fields.While the US has long sought to portray the US presence as part of a counter-terror and counter-ISIS mission, when President Trump was in office he admitted it was about "securing the oil". Ultimately, the US is actively cutting off Damascus from its own badly needed natural resources on top of a sanctions policy aimed at strangling Assad's Syria. The Pentagon also sees the occupation as about countering Iran, by keeping up pressure on Iran's ally Damascus.Naturally, Damascus was outraged at Gen. Milley's entering sovereign Syrian territory (occupied), with a foreign ministry statement calling it a "flagrant violation of Syria’s sovereignty, territorial integrity, and unity." According to a regional publication: A source at the Ministry of Foreign Affairs and Expatriates said, "Syria strongly condemns the illegal visit of the US Chief of Staff to an illegal US military base in northeastern Syria, and affirms that it is a flagrant violation of the sovereignty, the sanctity of its lands and unity," according to RT."Syria calls on the US administration to immediately stop its systematic and continuous violations of international law and stop its support for separatist armed militias … and Syria affirms that these US practices will not deviate it from its approach to combating terrorism and preserving its sovereignty, security, and stability," the source added.Turkey has also long wanted to see American troops gone from the region, given they support Kurdish groups which Ankara views as 'terrorists'.One likely reason for the weekend trip by Milley is to show the world the US won't let up pressure on Assad in the wake of the devastating earthquake which resulted in over 50,000 deaths and billions of dollars in damage across both Turkey and Syria. This as the past weeks have seen Arab capitals send representatives to Damascus, while issuing messages of support to Assad and providing humanitarian aid to Syria. Washington is still trying to dissuade the Arab world from re-embracing the Assad government, however.
Watch- Vast Expanse Of US Military Hardware Positioned At Polish Port -A Baltic monitoring media outlet has published footage of an enormous amount of American military equipment being prepared to move from the Port of Gdynia in Poland. The expanse of military hardware is being described as equipment belonging to the US Army's 3rd Armored Brigade Combat Team, 1st Cavalry Division. Some Eastern European media reports are claiming that at least a portion of the equipment, which looks multiple football fields in length, are bound for Kiev.Hundreds of heavy military vehicles can be seen in the footage, including armored personnel carriers, tanks and armored trucks. Despite claims that the equipment is bound for Ukraine, a source which widely circulated the footage, "Baltic Security", wrote that it's at the Polish port "in preparation for redeployment to the continental United States after serving in the Operation Atlantic Resolve."Russia's Sputnik noted that "Some Polish and Ukrainian media outlets, however, did not think twice about claiming that part of the military hardware seen in the video would be redeployed to Ukraine, where Russia continues its special military operation."
U.S. military eyes mounting Western air-to-air missiles on Ukrainian MiGs - The U.S. military is studying whether it’s possible to integrate advanced Western air-to-air missiles with Ukraine’s Soviet-era fighter jets, in the latest attempt to jury-rig old platforms with new capabilities ahead of what’s expected to be a bloody spring. Officials are looking into whether AIM-120 advanced medium-range air-to-air missiles, designed to be fired from Western fighter jets such as the U.S.-made F-16, can be mounted on Ukraine’s existing MiGs, according to two Defense Department officials and another person involved in the discussions. If the work is successful, it would be the first time the U.S. has given Ukrainian aircraft the capability to fire air-to-air missiles, some of which are already in their inventory. The effort, if successful, could be part of a solution to Kyiv’s need for additional firepower and air defenses as both Ukraine and Russia prepare for major offensives this spring. Senior American generals hosted Ukrainian military officials last week in Wiesbaden, Germany, for a set of tabletop exercises to help Kyiv get ready for the next stage of the war. U.S. military officials believe Kyiv is looking to mount its offensive in the next six to eight weeks as the weather warms up and Ukrainian forces finish their training on combined arms maneuver tactics in Germany, the DoD officials said. Officials are concerned that Ukraine is running low on air defenses as Russia continues missile attacks and even sends decoy balloons with radar reflectors to deplete Ukrainian missiles. Ukraine has been pushing for modern fighter jets for the conflict, among other things to help with air defense, but so far there is little appetite among Western leaders to send more advanced aircraft such as the F-16. Two Ukrainian pilots are in the U.S. to do an assessment of their skills on simulators at an Air National Guard base in Tucson, Ariz., but officials said they will not fly American aircraft. Officials are looking for more creative solutions to fill that gap. The U.S. has already provided Kyiv air-to-ground missiles, such as the AGM-88B High-speed Anti-Radiation Missile, which can be attached to the MiGs and used against ground targets such as radars and air defense systems. The Pentagon has also sent the Joint Direct Attack Munition, which converts air-launched munitions into smart bombs.But integrating the AIM-120s with MiGs would be the first time the U.S. has provided the capability to fire air-to-air missiles from aircraft, however. Ukraine already has a number of the missiles, which were provided by European countries, including the U.K. and Belgium, which are fired from Western-provided air defense systems such as the National Advanced Surface-to-Air Missile System.
Widespread missile strikes reported across Ukrainian cities -A string of Russian missiles struck a number of Ukrainian regions early Thursday, according to multiple reports, as Ukrainian President Volodymr Zelensky called on the U.S. for more military aid. The governor of the Odesa region, Maksym Marchenko, said that a missile attack had hit the port city of the Black Sea, according to a post on the messaging platform Telegram. Marchenko said the attack hit a power plant in the city, causing widespread power outages. The blasts also hit residential areas, but no casualties were reported. The governor of the Kharkiv region, the second-largest city in the nation, also said that his city had been hit with 15 strikes. Other regions across the country were reported to have been hit with strikes, including Dnipro, a city in the center of the country, according to Reuters. The news of the widespread bombing campaigns comes as Ukraine said Wednesday that it had been able to repel the Russian advance on Bakhmut, a city on the eastern part of the country. Russian forces had claimed control over the eastern part of the city. They also come as Zelensky appeared on U.S. television on Wednesday night, calling on U.S. lawmakers to provide Ukraine with even more funding and equipment to aid in its war against Russia.
The Widening War: How the Nato-Russia Confrontation Is Playing Out in North Africa -The colonial mindset comparison is apt as the West seeks to take control over African and Latin American resources. While this is nothing new, as the statements coming from the West make clear, countries that are friendly with Moscow and/or Beijing should expect even more concerted efforts at infiltration, sanctions, and any other means to restrict ties with the Russia-China bloc.While some smaller states could benefit from being wooed by both sides, many will likely suffer as increased subversion and proxy conflicts are likely to play out in those countries. Take the comments from US officials to Bloomberg on Feb. 24 that the US, in year two of the war, is going to double down its efforts to “tighten the screws” on countries still keeping a foot in both camps.This will be especially true in states that are resource rich – whether in oil, gas, or “green” commodities. These battles are already underway across Africa and are likely to intensify. North African countries have thus far been unwilling to help “isolate” Russia. The EU energy situation is still dire, which it is trying to remedy with a renewed push into Africa in search of oil and gas, as well as a race to control “green” resources. China does not want to give ground in Africa, and Russia, while seeking to prevent any isolation, can also sooner bring Europe to its knees if it throws a wrench in the EU-Africa energy plans.Indeed, it’s hard to see how the West’s demand that states pick a side wouldn’t only isolate Europe further and exacerbate its energy woes, as I’ll discuss here regarding North Africa.The EU has set its sights on North Africa for a variety of reasons, summed up here by the European Council on Foreign Relations:North Africa is also a promising place for the future production of green hydrogen, an energy source that is likely to be essential for the EU to fulfil its climate goals in hard-to-decarbonise sectors. And the region is also home to critical raw materials (CRMs) necessary for the energy transition, offering the EU the opportunity to further diversify its supply chains for clean energy technologies. North Africa’s young and well-educated workforce also offers the EU not only a potential workforce for technology manufacturing closer to home than Asian markets, but also the skills necessary for meaningful cooperation in areas such as research and development (R&D).Algeria, just across the Mediterranean from Europe, is currently Africa’s largest oil and gas producer. It’s naturally a prime candidate to fill Europe’s gap in energy needs after the EU cut itself off from Russian supplies. Italy is trying to ramp up gas and energy imports and even locate electric vehicle industry in Algeria, but there are a myriad of problems.First and foremost, the numbers just don’t add up. From GIS:The entire African continent’s proven gas reserves are equivalent to 34 percent of Russian resources, and North Africa’s reserves equal only 10 percent of Russia’s. The African and North African gas production is 36 percent and 15 percent of Russia’s output, respectively. In 2020, total gas trade between Europe and Russia was nearly 185 bcm, about four and a half fold the trade with North Africa.On the oil front, the same story that’s played out elsewhere is occurring in North Africa, whichbuys up Russian crude and increases supplies to Europe as a sanctions workaround. But back to gas: Europe, and Italy more specifically in its bid to transform into an EU energy hub, is trying to up imports from Algeria, but again there are infrastructure issues. During a Meloni trip to Algiers in January, Italy and Algeria signed agreements, including for the study and construction of an additional pipeline, as well as an underseas power cable, but those are years away. More fromNatural Gas Intelligence:To reduce dependency on Russian gas supplies following the invasion of Ukraine as others across Europe are doing, Algeria’s Sonatrach and Eni agreed to a supply deal in April. Algeria would deliver an additional 9 Bcm of gas in 2023 and 2024 via the Transmed Pipeline.But the Transmed system connecting Algeria and Italy is not operating at full capacity. Algeria has had production issues. The country has not invested in new infrastructure to increase production in the past three decades, and it needs to divert gas to meet increasing domestic demand for electricity.
Pope says Ukraine war fuelled not just by 'Russian empire' (Reuters) -The war in Ukraine is driven by the interests of several "empires" and not just of Russia's, Pope Francis said in an interview published on Friday. Francis said the conflict was fuelled by "imperial interests, not just of the Russian empire, but of empires from elsewhere". He expressed a readiness to talk to Russian President Vladimir Putin to call for peace. The pontiff was speaking to Italian Swiss television RSI, in an interview due to be broadcast on Sunday. Extracts were published on Friday by Italian dailies La Repubblica, La Stampa and Corriere della Sera. Francis, who is 86 and marks the 10th anniversary of his election on March 13, also said he would resign if he got too tired and lost the capacity to govern the Roman Catholic Church. Last month, he had said that papal resignations should happen in only exceptional circumstances. His predecessor Benedict XVI, who died on Dec. 31 aged 95, became the first pontiff to resign in about 600 years when he stepped down in 2013. Asked what would lead him to make the same decision to quit, Francis said: "A tiredness that doesn't make you see things clearly. A lack of clarity, of knowing how to evaluate situations". Francis said he was "a bit ashamed" to use a wheelchair due to a knee ailment. "I am old. I have less physical resistance, the knee (problem) was a physical humiliation, even if the recovery is going well now," he said.
They Work So Hard To Manufacture Our Consent Because They Absolutely Require It -- Australian media are awash with reporting on the war-with-China propaganda series by The Sydney Morning Herald and The Age that I’ve been writing about for the last few days. Which is really quite extraordinary, because it’s not an actual news story.It really isn’t. The Sydney Morning Herald and The Age just asked five warmongering China hawks what they think about war with China, wrote down their very predictable answers saying Australia must prepare for war with China within three years, and then passed it off as journalism. Obviously if you ask a bunch of China hawks if they think Australia should prepare for war with China they’re going to tell you yes; that’s not news, that’s just you reporting that five random warmongers think warmongery thoughts.Yet SMH and The Age stretched this ridiculous non-story into a multi-part series titled “Red Alert” — all without ever noting the massive conflict of interest posed by the extensive ties its “panel” of “experts” have to US-aligned governments and the military industrial complex — and now it’s being covered like a real news story by the rest of Australian media. TV news segments have filled theairwaves reporting on the opinions of the most wildly biased people you could possibly find on this subject, the most appalling of which appeared on the Australian government’s ABC.Sydney Morning Herald editor Peter Hartcher, who helped put together the “Red Alert” series, was given a fawning, slobbering rim job of an interview from the ABC’s Beverley O’Connor where everything he said was received as gospel truth and not a single critical question was asked. When former prime minister Paul Keating’s scathing criticism of Hartcher’s war propaganda was raised, Hartcher was permitted to call Keating a CCP crony, completely unchallenged.Hartcher claimed that Keating’s criticisms were “talking points that I think the Beijing government would be pretty satisfied with,” adding that “in recent years Keating has emerged as the leading defender of, and apologist for, the Chinese Communist Party in Australia.”This type of rhetoric is familiar to anyone who’s been following US politics the last few years, where anyone who criticizes American foreign policy has been branded by empire loyalists as an apologist for the Kremlin. The fact that we are now seeing this mind virus take hold in mainstream Australian discourse with regard to China is both disgusting and disturbing.The latest installment of the “Red Alert” series is titled “Australia has an urgent security problem. These confronting ideas can help solve it,” and it is the most incendiary of the bunch. The “experts” suggest rolling out mandatory national service to prepare Australians for war with China, as well as “basing US long-range missiles armed with nuclear weapons on Australian territory.”As has been the case for the last two “Red Alert” installments, this one again speaks of the need to psychologically shift Australians into support for war preparations, saying that “Australia’s critical threshold change must be psychological,” and that it must take place “across society.” They don’t say it directly, but what they are advocating here is copious amounts of domestic war propaganda.After receiving a deluge of angry social media comments decrying the article, The Sydney Morning Herald took the extraordinary step of banning replies. On Facebook, the “Australia has an urgent security problem” article now has a notification which reads, “The Sydney Morning Herald limits who can reply to this post.”
Global Supply Chain Pressure Index Drops Below Average for First Time since Aug. 2019, after Horrendous Spikes By Wolf Richter - The Global Supply Chain Pressure Index (GSCPI) for February dropped below the historical average for the first time since August 2019. The historical average (green line = 0 in the chart below) is based on data going back to 1998. The unnerving supply-chain chaos during the pandemic has now been completely unwound. The chaos was caused when massively overstimulated consumers, particularly in the US, but elsewhere too, blew their pandemic trillions on goods, creating such demand for goods, and so suddenly, that no one was ready for it, and the global production and transportation system essentially locked up – causing large-scale shortages across numerous unlikely and unrelated products – including amazingly, the now infamous WOLF STREET beer mug shortage. Some of those products, particularly used and new vehicles, then spiraled into all kinds of crazy price spikes that were responsible for the initial and sudden outbreak of rampant inflation. It was one of the weirdest consumer-behavior phenomena ever, telling a story about the inflationary mindset – mass psychology – rather than shortages. This rampant inflation in goods – such as in used and new vehicles, electronics, apparel, sporting goods, (remember the shortages of bicycles, rowing machines, camping and trekking equipment?) started abating in early 2022, as supply chains began the slow process of getting untangled.But by then, inflation had shifted to services. And as goods price increases began to moderate, or even backtrack, such as with electronics and used vehicles, the services inflation rate exploded, fueling further inflation fears: The Global Supply Chain Pressure Index is another indicator that the goods-based economy has normalized, while inflation is raging in services that are largely unaffected by supply chains. The GSCPI was developed by the New York Fed’s Applied Macroeconomics and Econometrics Center in response to the pandemic-era supply-chain mess. It uses data from the transportation and manufacturing sectors going back to 1998, including the Baltic Dry Index, the Harpex index, airfreight cost indices from the Bureau of Labor Statistics, and supply chain-related components from the Purchasing Managers’ Index (PMI). It focuses “on manufacturing firms across seven interconnected economies: China, the euro area, Japan, South Korea, Taiwan, the United Kingdom, and the United States,” according to the New York Fed.
Japan's Population In Freefall As Twice As Many People Die As Are Born - Japan's population is in freefall. In 2022, the number of births registered in Japan plummeted to another record low last year according to statistics released by the Ministry of Health - the latest worrying statistic in a decades-long decline that the country's authorities have failed to reverse despite their extensive efforts. The country saw just 799,728 births in 2022 - the lowest number on record and the first ever dip below 800,000 - and about half of the number of deaths, which at more than 1.58 million, was a record high. The number of births in Japan has nearly halved in the past 40 years: in 1982, Japan recorded more than 1.5 million births, a number which was then more than double the number of deaths. This ratio has since reversed. As shown in the chart above, deaths have outpaced births in Japan for the past 15 years - a trend which is unlikely to reverse ever again - posing an existential problem for the (aged) leaders of the world's third-largest economy. They now face a ballooning elderly population, along with a shrinking workforce to fund pensions and health care as demand from the aging population surges. Japan's population has been in steady decline since its economic boom of the 1980s and stood at 125.5 million in 2021, according to the most recent government figures. According to CNN, Japan's fertility rate of 1.3 is far below the rate of 2.1 required to maintain a stable population, in the absence of immigration. The country also has one of the highest life expectancies in the world; in 2020, nearly one in 1,500 people in Japan were age 100 or older, according to government data.
41% women think fight for rights has gone ‘too far’, survey shows. 55% men agree -About 55 per cent men and 41 per cent women across 32 countries believe that the women's fight for rights have gone overboard, a survey revealed. Collating responses from 22,500 people aged 16-74 across 32 countries, the survey by Ipsos UK and the Global Institute for Women's Leadership at King's College London showed that nearly 52 per cent of Gen Z and 53 per cent of millennials say women's fight for rights has gone "too far".Four in 10 baby boomers (40 per cent) and Gen X (46 per cent) said the same, the survey noted. The sample included people from Japan, Australia, Brazil, Canada, mainland China, France, Germany, Britain, Italy, Spain, and the United States, Argentina, Belgium, Chile, Colombia, Hungary, India, Indonesia, Malaysia, Mexico, the Netherlands, Peru, Poland, Portugal, Saudi Arabia, Singapore, South Africa, South Korea, Sweden, Thailand, Turkey, and the United Arab Emirates.53 per cent in all 32 surveyed countries said that gender equality benefits all genders and not just women while about 15 per cent people from India said that gender inequality does not exist while just 2 per cent surveyed people in Japan said the same.Almost 26 per cent surveyed Indians said they had confronted someone during a sexual harassment situation in the past year while some 30 per cent said that they talked to their employers about gender discrimination at work.
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