Dallas Fed president says data does not justify June rate-hike pause yet - Dallas Federal Reserve President Lorie Logan said Thursday that inflation remains "much too high" and is not cooling quickly enough to justify pausing interest rate increases at the central bank's June meeting. "After raising the target range for the federal funds rate at each of the last 10 FOMC meetings, we have made some progress," she said in remarks prepared for delivery to the Texas Bankers Association in San Antonio "The data in coming weeks could yet show that it is appropriate to skip a meeting. As of today, though, we aren’t there yet." Logan, a voting member of this year's policy-setting Federal Open Market Committee, emphasized the decision will ultimately hinge on inflation and employment data released shortly before the June 13-14 meeting.But she expressed disappointment that inflation has not declined faster, given the aggressive series of rate hikes over the past year. Although inflation has eased from a peak of 9.1%, it remains about more than double the pre-pandemic average and well above the Fed's 2% target rate. On top of that, the labor market remains uncomfortably tight, with unemployment recently falling to 3.4% – the lowest rate since 1969."We haven’t yet made the progress we need to make," Logan said. "And it’s a long way from here to 2% inflation."Investors have been betting that the Fed would take a break in raising rates at its meeting next month after policymakers approved a 10th increase in May, lifting the federal funds rate to a range of 5% to 5.25%, the highest since 2007. "A decision on a pause was not made today," FedChair Jerome Powell told reporters after the meeting, though he noted the "meaningful" change in the official statement. "We're no longer saying that we ‘anticipate.’ We'll be driven by incoming data, meeting to meeting. We'll approach that question at the June meeting."
Fed's Bullard suggests higher rates as 'insurance' against inflation – FT (Reuters) - St. Louis Federal Reserve President James Bullard reaffirmed his support for lifting interest rates further as an 'insurance' policy against inflation, the Financial Times reported on Thursday, citing an interview. Bullard said he would keep an "open mind" going into the next policy meeting in June, according to FT, but suggested he is inclined to back another rate rise after 10 successive increases since last year. "I do expect disinflation, but it’s been slower than I would have liked, and it may warrant taking out some insurance by raising rates somewhat more to make sure that we really do get inflation under control," Bullard told the newspaper in an interview.
Fed's Logan leans against pause in interest-rate hikes, while Jefferson backs a wait-and-see approach - Over the past few days, remarks by Federal Reserve officials have highlighted the ongoing debate over how much more the central bank needs to do to fight inflation. On Thursday, Dallas Federal Reserve Bank President Laurie Logan said the data don't yet support a pause but that she's keeping an open mind. "After raising the target range of the federal-funds rate at each of the last 10 [Federal Open Market Committee] meetings, we have made some progress. The data in coming weeks could yet show that it is appropriate to skip a meeting," Logan said in remarks prepared for delivery to the Texas Bankers Association Thursday morning. "I remain concerned about whether inflation is falling fast enough," she added. Speaking separately, Fed Gov. Philip Jefferson did not tip his hand beyond noting that there would be a lot of economic data to review before the Fed interest-rate committee's next meeting June 13-14. He noted that "the level of uncertainty is high." On the one hand, inflation remains "too high," and by some measures, progress on bringing it down has been slowing, Jefferson said this morning in remarks to the National Association of Insurance Commissioners. On the other hand, the U.S. economy has slowed considerably this year. "History shows that monetary policy works with long and variable lags, and that a year is not a long enough period for demand to feel the full effect of higher interest rates," Jefferson said. Jefferson said his base case is that the U.S. economy can avoid a recession but that gross domestic product growth will "remain quite slow." There are also downside risks from a pullback in bank lending. In an interview with the Financial Times released later Tuesday, St. Louis Fed President James Bullard said he has an open mind about June rate decision but was leaning toward another hike. Bullard said another hike would be "taking out some insurance" that the Fed really has inflation under control.
Two Fed officials make case for another rate hike - St. Louis Fed President James Bullard told the Financial Times Thursday that he supports raising rates higher as ‘insurance’ against inflation. Stay ahead of the market Bullard – perhaps the most hawkish member on the FOMC – told the newspaper he’d keep an “open mind” going into the June 14 meeting, but given that inflation has been slower to come down than expected, he’s inclined to back another rate hike. “I do expect disinflation, but it’s been slower than I would have liked, and it may warrant taking out some insurance by raising rates somewhat more to make sure that we really do get inflation under control,” Bullard told the Financial Times in the interview. “Our main risk is that inflation doesn’t go down or even turns around and goes higher, as it did in the 1970s,” he added. Meanwhile, Dallas Fed President Lorie Logan said Thursday that as of right now a pause is not in order, though that could change in the coming weeks depending on incoming data. “After raising the target range for the federal funds rate at each of the last 10 FOMC meetings, we have made some progress,” Logan said in a speech in San Antonio, Texas. “The data in coming weeks could yet show that it is appropriate to skip a meeting. As of today, though, we aren’t there yet.” Logan says she remains concerned about whether inflation is falling fast enough. “We haven’t yet made the progress we need to make,” said Logan. “And it’s a long way from here to 2 percent inflation.” Like other Fed officials, Logan says she thinks the strength of the job market is contributing to high inflation, citing that job growth is more than twice what’s needed to keep pace with the growth of the labor force. Though she noted some indicators like job openings and wage growth are no longer “boiling over” the way they were last year. Logan along with other Fed officials is also watching credit conditions closely, though she and others don’t think there’s a substantial amount of tightening specifically linked to the seizures of several mid-sized banks in recent months. Logan said that bankers have been telling the central bank since last fall that higher interest rates were the reason credit conditions were tightening. Even now bankers say that's the main reason, as opposed to stress in the banking system. Fed Governor Philip Jefferson echoed that Thursday in a speech made in Washington, saying “so far there has been only a modest incremental tightening of lending conditions, which had already tightened considerably over the past year since the Federal Reserve began raising interest rates.” Jefferson pointed to a Fed loan survey in April that reported 46% of banks had tightened credit terms for commercial and industrial loans, compared with 44.8% in January. Jefferson said he too thinks inflation is too high right now, but the economy is slowing while credit conditions are tightening. He said he will take all this into account at the next interest rate meeting.
Fed Chair Powell says rates may not have to rise as much as expected to curb inflation -- Federal Reserve Chair Jerome Powell said Friday that stresses in the banking sector could mean that interest rates won't have to be as high to control inflation. Speaking at a monetary conference in Washington, D.C., the central bank leader noted that Fed initiatives used to deal with problems at mid-sized banks have mostly halted worst-case scenarios from transpiring. But he noted that the problems at Silicon Valley Bank and others could still reverberate through the economy. "The financial stability tools helped to calm conditions in the banking sector. Developments there, on the other hand, are contributing to tighter credit conditions and are likely to weigh on economic growth, hiring and inflation," he said as part of a panel on monetary policy. "So as a result, our policy rate may not need to rise as much as it would have otherwise to achieve our goals," he added. "Of course, the extent of that is highly uncertain." Powell spoke with markets mostly expecting the Fed at its June meeting to take a break from the series of rate hikes it began in March 2022. However, pricing has been volatile as Fed officials weigh the impact that policy has had and will have on inflation that in the summer of last year was running at a 41-year high. On balance, Powell said inflation is still too high. "Many people are currently experiencing high inflation, for the first time in their lives. It's not a headline to say that they really don't like it," he said during a forum that also featured former Fed Chairman Ben Bernanke. "We think that failure to get inflation down would, would not only prolong the pain but also increase ultimately the social costs of getting back to price stability, causing even greater harm to families and businesses, and we aim to avoid that by remaining steadfast in pursuit of our goals," he added.
Powell Says Inflation Remains Too High - The New York Times - Jerome H. Powell, the Federal Reserve chair, said on Friday that inflation continued to be “far above” the central bank’s target but that policymakers “haven’t made any decisions” about whether to raise rates at their next meeting in June. The comments, at the Fed’s annual Thomas Laubach Research Conference, came as businesses and investors around the world are trying to gauge whether the Fed is preparing to pause its campaign to raise borrowing costs amid signs that inflation is easing and the U.S. economy is cooling. Mr. Powell did not offer a clear signal on the path of interest rates, but said the Fed remained committed to bringing inflation closer to its 2 percent target. “The data continues to support the committee’s view that bringing inflation down will take some time,” he said. Still, Mr. Powell did note that recent turmoil in the banking sector had prompted lenders to pull back on providing credit, which will probably weigh on economic growth. That could reduce the need to raise interest rates as high as they otherwise would need to be lifted. But Mr. Powell made clear that the Fed, which will meet on June 13-14, had not yet determined its next move. “Until very recently, it’s been clear that further policy firming would be required,” Mr. Powell said. “As policy has become more restrictive, the risks of doing too much versus too little are becoming more balanced.” He added: “So we haven’t made any decisions about the extent to which additional policy firming will be appropriate.” The Fed has raised rates aggressively over the past year, bringing them above 5 percent for the first time in 15 years. While inflation has shown signs of moderating, it is still far higher than the Fed — and consumers — would like. The two-year Treasury yield, which is indicative of where investors expect interest rates to land, fell more than 0.1 percentage points after Mr. Powell’s comments, having risen by roughly the same amount before he spoke. That was a big single-day swing for an asset that typically fluctuates by hundredths of a percentage point.
Six-Month Treasury Yields Begin to Price in One More Rate Hike - Wolf Richter -Treasury yields and mortgage rates rose essentially all week and passed some milestones for the first time since the collapse of Silicon Valley Bank:
- The six-month yield hit a 22-year high (5.38%)
- The one-year Treasury yield edged above 5%
- The 10-year Treasury yield rose to 3.7%
- The 20-year Treasury yield edged past 4%
- The 30-year Treasury yield rose to nearly 4%
- The average 30-year fixed mortgage rate rose to 6.90% (Mortgage News Daily).
Powell says credit crunch is doing the work of Fed’s rate hikes Banks that got spooked by huge failures in their sector earlier this year and tightened lending to protect their margins are picking up where the Federal Reserve may be leaving off when it comes to further interest rate increases. The private credit crunch resulting from three of the largest bank failures in U.S. history — all of which catered to extremely wealthy customers who were promptly bailed out well above the standard $250,000 insurance limit by the Federal Deposit Insurance Corporation (FDIC) — may be taking the Fed off the hook for more rate hikes, Fed Chair Jerome Powell suggested Friday. “While financial stability tools helped to calm conditions in the banking sector, developments there … are contributing to tighter credit conditions,” Powell said. “So as a result, our policy rate may not need to rise as much as it would have otherwise to achieve our goals.” The Fed’s latest rate hike earlier this month put interest rates in the range of 5 percent to 5.25 percent, meeting the bank’s latest terminal projection for where rates should end up this year. That means the Fed doesn’t have to worry about credibility concerns and delivering on earlier promises but can simply react to what’s happening in the economy in deciding where to move interest rates next. Central bankers expect to lower rates to 4.3 percent next year and to 3.1 percent in 2025, as consumer inflation continues to fall from its peak of 9.1 percent in 2022. The bank failures and response from the financial sector may be hastening the U.S. economy toward a recession, which the Fed has been predicting since March. Conditions in the financial sector “are likely to weigh on economic growth and hiring and inflation,” Powell said Friday. Former Federal Reserve Chair Ben Bernanke described the failures and response from the FDIC and the Fed, which extended a special line of credit backstopped by taxpayer money, as following “the standard sequence” from faulty management, a subsequent bank run and a fear of “contagion.”
Conversation with Chair Jerome Powell and Ben Bernanke - Conversation with Chair Jerome Powell and Ben Bernanke, former Chair of the Board of Governors of the Federal Reserve System at the Thomas Laubach Research Conference, Washington, D.C. Duration: 53:07
Despite Fed Tightening and Bank Collapses, It’s Still an Astoundingly Loose Financial Situation in La-La-Land by Wolf Richter - Financial conditions and lending standards have become less loosey-goosey than they were during the free-money era when deposits paid 0% interest, and banks borrowed from their depositors for free. And “financial stress,” which spiked briefly during the SVB collapse, subsided again and returned to loosey-goosey, but just a little less loosey-goosey than during the free money era. It’s like the partying is over, but now they’re just relaxing in la-la-land, instead of suffering from a hangover. The weekly St. Louis Fed Financial Stress Index, one of the products that came out of the Financial Crisis, measures financial stress in the credit markets and was designed to indicate when another financial crisis might be at the doorstep. It dutifully spiked when SVB collapsed in mid-March, but only briefly and not very much, and then settled down again in la-la-land. A level of zero indicates normal market conditions. A level above zero indicates above-average market stress; below zero indicates below-average market stress. It’s below zero: -0.35 per the latest release on Thursday. During the SVB collapse, it was above zero for two weeks, on March 17, when it spiked to +1.54, and on March 24, when it fell back to +0.34. Then it returned to the negative readings of la-la-land (green line = current level): The big rate hikes last year led to a series of mini-spikes into above-normal but still low levels of financial stress. Not this year; the rate hikes didn’t add financial stress. This year it took the sudden and messy SVB collapse to add financial stress. But the First Republic collapse just caused financial markets to yawn. Same-old same-old already? The St. Louis Financial Stress Index tracks 18 variables: a variety of Treasury yields, corporate bond yields, Treasury spreads, corporate bond spreads, SOFR spreads (which replaced the LIBOR spreads), and other spreads, plus indicators such as the VIX and the Treasury 10-year breakeven inflation rate. During the Financial Crisis, just after the Lehman bankruptcy, the index spiked to +9.25, so that’s about six times the value during the SVB collapse (+1.54). We also see the euro debt crisis show up in the US credit markets in 2011-2012. And we see the US oil bust that started in 2015 and sent dozens of US oil and gas companies into bankruptcy court. The Fed had kicked off its rate-hike cycle in December 2015 despite the core PCE price index being at 1.1%, well below the Fed’s 2% target. Spooked by the turmoil in oil-and-gas credits, and with inflation below target, the Fed paused for a year, before continuing. (Green line = current level). Financial conditions a little less loosey-goosey. The broader Chicago Fed’s National Financial Conditions Index (NFCI) shows a similar situation: “financial conditions loosened again,” it said for the latest reporting week, as the index dipped to -0.28, with all three sub-indicators – risk (red), credit (blue), and leverage (green) – contributing to the negative reading. The index too is constructed to have an average value of zero based on data going back to the 1970s. You can see that the free-money party was surely a lot of fun, but that it is now over, and now financial conditions are just relaxing in la-la-land, instead of partying in it. You can see the SVB collapse in that little dent on the right. But financial conditions remained less tight than average. And the First Republic collapse didn’t even register (chart via Chicago Fed):
Will the Fed keep interest rates ‘higher for longer’? - Over the past year, the Federal Reserve (the Fed) has encountered difficulties convincing financial markets of its intention to sustain a tight monetary policy until the battle against inflation is well and truly won. Bond markets have, in fact, frequently ignored warnings from the central bank, as investors have repeatedly bought into the narrative that the Fed would pivot and change course. To bring annual inflation back down to 2 percent, the Fed has raised the federal funds rate target range by 500-basis points since March 2022. Despite this, unemployment has fallen from 3.6 percent to 3.4 percent over the same period. Moreover, even as short-dated T-bills have largely tracked the federal funds rate, the yields on longer-dated T-notes and T-bonds have declined lately. Furthermore, the stock market has risen considerably from its October 2022 lows. These developments have made more difficult the Fed’s primary task of restoring price stability, forcing the central bank to push toward a higher terminal rate. To get a sense of the challenges facing the Fed, it is necessary to review the four traditional channels through which monetary policy is presumed to affect the real economy: the cost of capital, asset prices, credit and the exchange-rate. Higher rates potentially deter business investment by raising the cost of capital. They also dissuade household spending on durable goods and real estate. Rate hikes can also raise the discount rate and reduce the present value of various assets, thus generating a negative wealth effect. Additionally, higher domestic interest rates may generate a currency appreciation that reduces net exports. Monetary tightening, by reducing the net worth and cash flow of corporations, can raise the cost of (and limit access to) external finance as well. In addition, monetary policy can affect macroeconomic conditions by changing risk perceptions and risk attitudes of various economic actors. This is referred to as the risk-taking channel. The Fed relies on financial markets and institutions to transmit its actions to the broader economy. The channels named above constitute the monetary transmission mechanism by which central bank actions affect the broader economy. This is how changes in short-term rates feed through to longer-term rates and general credit conditions, which are not directly controlled by monetary authorities. To illustrate the complexities associated with the monetary transmission mechanism in the post-pandemic era, consider the behavior of the typically interest-rate sensitive housing market. Though fixed mortgage rates have risen sharply over the last year, the impact on the national housing market has been somewhat muted because many who locked in 30-year mortgages at historically low rates of 3 percent or less in 2020 and 2021 are not planning a move anytime soon. Philadelphia Fed President Patrick Harker recently noted: “U.S. households have entered the tightening cycle with very healthy balance sheets. Existing homeowners are also benefiting from low mortgage rates and elevated home equity. This gives a ‘cushion’ for homeowners, making it unlikely that a correction in house prices would trigger widespread liquidity constraints and consumer spending reductions.” Likewise, many corporations took advantage of historically low rates in 2020 and 2021 and, consequently, their interest-rate burden is still low and may not rise substantially until next year. Furthermore, the ongoing construction boom is blunting the impact of higher rates. The stock market recovery, albeit a top-heavy and narrow rally, has constrained the negative wealth-effect channel. The exchange-rate channel is not particularly relevant for the U.S., as dollar-invoicing of imports and limited dependence on exports largely shields the economy from short-run effects associated with a strong dollar. Given the muted transmission of Fed rate hikes via the interest rate, the asset-price, and the exchange-rate channels so far, a lot is riding on the credit and risk-taking channels. The ongoing banking sector turmoil is shrinking credit availability and raising lending standards. So, the Fed is caught in a bind. Interest rates will have to be kept higher for longer, since its attempts to curtail aggregate demand have frequently been thwarted by uncooperative financial markets. Yet further rate hikes raise the risk of greater financial instability. But easing up too quickly will entrench high inflation and threaten price stability.
China Suddenly Buys TSYs Amid March US Banking Crisis, Gold Reserves Hit Record High -- China bought more US Treasuries in March (US banking crisis) than it had since January 2021, adding $20 billion (the first buying month since July 2022)... Graphs Source: Bloomberg That is a bounce from its lowest levels since June 2010. China's proxies were also buyers in March as the SVB collapse saw safe-haven demand soar... UAE, Germany, and Iraq were the biggest sellers. In aggregate, Treasuries were bought (but at a slower pace) and stock holding soared... Foreign buying of Treasuries increased by $35.8BN, down from $57.6BN, 11th straight month of foreign TSY buying. Breaking that Treasury buying down we see that after 12 months of selling by foreign official institutions, Feb and March saw buying, $48.0BN and $16.5BN respectively. Meanwhile, foreign private buying of Treasuries is relentless, and extends to 17 consecutive months, with $19.3BN bought in March, after $9.6BN bought in Feb.
Biggest Fear Among US Business Leaders Is "Catastrophic" Debt Default: White House Economic Adviser --A key aide to President Joe Biden said Sunday that American business leaders’ chief concern is not inflation or recession but the looming threat of a “catastrophic” government debt default. Lael Brainard, director of the White House National Economic Council, told CBS’ “Face the Nation” on Sunday that the country’s top business leaders have told her that their biggest concern is failure on the part of lawmakers on Capitol Hill to avert a default of the nation’s debt.Talks about raising the U.S. government’s $31.4 trillion debt ceiling have made little progress in Washington. Biden and the Democrats continue to insist on a “clean” bill to lift the borrowing limit with no preconditions while House Speaker Kevin McCarthy (R-Calif.) and the Republicans have put forward a proposal that pairs lifting the cap by $1.5 trillion with $4.5 trillion in spending cuts.“When I talk to CEOs, to business leaders around the country, they tell me that things are actually going very well,” said Brainard, who served as vice chair of the Federal Reserve before being appointed by Biden to lead the White House economic advisory panel.“But their biggest concern is that Congress might fail to prevent default and that would be catastrophic. It would lead to higher borrowing costs for cars, for mortgages, for small businesses, even for the U.S. government,” she said, echoing concerns raised by other Biden administration officials that a default would lead borrowing costs to surge and be a major headwind for the economy.Last week, Rohit Chopra, the director of the Consumer Financial Protection Bureau (CFPB), told CNN that various types of loans would, in the event of a default, become more expensive.“It’s a big worry. Every family should be concerned,” Chopra told the outlet.Wall Street, too, has been growing increasingly nervous amid the debt ceiling standoff. Citigroup CEO Jane Fraser saying that the negotiations on raising the ceiling are “more worrying” than previous episodes. JPMorgan Chase CEO Jamie Dimon said the bank is convening weekly meetings to prepare for what could be a major event that shakes markets.“The closer you get to it, you will have panic,” Dimon told Bloomberg TV last week.“Markets will get volatile, maybe the stock market will go down, the Treasury markets will have their own problems.”While Biden has said he’s “absolutely certain” that the country will avert a default, time is running out to find a fix.
US on track for June 1 default without debt ceiling hike, Treasury says (Reuters) - The U.S. Treasury Department reiterated Monday it expects to be able to pay the U.S. government's bills only through June 1 without a debt limit increase, increasing pressure on congressional Republicans and the White House to reach a deal in coming days. In her second letter to Congress in two weeks, Treasury Secretary Janet Yellen confirmed that the agency will be unlikely to meet all U.S. government payment obligations by early June, triggering the first-ever U.S. default. The debt ceiling could become binding by June 1, she said. The new date reflects further data on revenues and payments received since Yellen's told Congress on May 1 that Treasury would likely run out of cash to pay government bills in early June, and potentially as early as June 1. It comes a day before U.S. President Joe Biden is expected to meet House Speaker Kevin McCarthy for talks, and ahead of an overseas trip for the President that starts Wednesday. The actual date Treasury exhausts extraordinary measures could be a number of days or weeks later than these estimates, Yellen said in today's letter, a shift from May 1's letter that warned only of ""a number of weeks later." She said she will provide an additional update to Congress next week as more information becomes available. Biden travels to Japan on Wednesday for a Group of Seven leaders summit, then to Australia, a trip that will take about a week. McCarthy said Monday there had been no progress in marathon talks at the staff level throughout the weekend.
Three in four Americans worry debt-ceiling default could hurt them -Reuters/Ipsos poll - (Reuters) - Americans are worried about the prospect of the U.S. government defaulting if Congress fails to raise the debt ceiling, but are divided over the action to be taken, according to a Reuters/Ipsos poll completed on Monday. The polls show neither Democratic President Joe Biden nor congressional Republicans hold a clear advantage in public opinion as they head into discussions on Tuesday to resolve a months-long standoff over the nation's $31.4 trillion debt limit. The Treasury says it could run out of money to pay the country's bills as soon as June 1 unless Congress increases the borrowing cap. Economists say the resulting default would roil global financial markets and plunge the U.S. into recession. The poll found that 76% of Americans said the two sides must reach a deal because a default would put added financial stress on families like theirs. That included 84% of self-described Democrats and 77% of self-described Republicans. Only 29% said they thought the issue was being overblown.The survey found that Americans are split over the best way to resolve a showdown. Some 49% said Congress needs to quickly raise the debt ceiling without conditions to avert default, echoing Biden's position. Some 68% of Democrats and 39% of Republicans took that view. But 51% of Americans said the debt ceiling should not be raised without substantial spending cuts - the position held by Republicans who hold a majority in the House of Representatives. That view was held by 69% of Republicans and 42% of Democrats, the poll found.
Biden, McCarthy to meet as US debt-ceiling talks come down to wire (Reuters) - Democratic President Joe Biden and top congressional Republican Kevin McCarthy will sit down on Tuesday to try to make progress on a deal to raise the U.S. government's $31.4 trillion debt ceiling and avert an economically catastrophic default. They have little time to reach a deal. The U.S. Treasury Department on Monday reiterated its warning that it could run short of money to pay all its bills as soon as June 1, which would trigger a default that economists say would be likely to spark a sharp economic downturn. "Time is running out. Every single day that Congress does not act, we are experiencing increased economic costs that could slow down the U.S. economy," Treasury Secretary Janet Yellen was set to tell a group of bankers. "There is no time to waste." Republicans, who control the House of Representatives by a 222-213 majority, have for months demanded that any increase in the government's self-imposed borrowing cap be linked to spending cuts. In the past week, staffs for both sides have discussed a range of issues, including spending caps and changes to energy permitting in exchange for votes to lift the limit, according to people briefed on the talks. White House officials have described the talks, due to start at 3 p.m. EDT (1900 GMT) as constructive, but McCarthy on Monday said that he believed little progress had been made.
Yellen pleads for Congress to raise debt ceiling, again — Treasury Secretary Janet Yellen Tuesday renewed her calls for Congress to immediately raise the debt ceiling while also doubling down on regulators' robust regulatory interventions in the banking sector in March. Speaking at an Independent Community Bankers of America conference, Yellen reiterated her concerns that Congress is moving too slowly to avert a financial catastrophe by breaching the federal debt ceiling, which she said could happen as early as June 1. That catastrophe has already begun, she said, in the form of markets shying away from near-term Treasury securities. "We are already seeing the impacts of brinkmanship: Investors have become more reluctant to hold government debt that matures in early June," she said. "The impasse has already increased the debt burden to American taxpayers — as the leaders of the Treasury Borrowing Advisory Committee said last week." Yellen stressed that if congressional negotiators fail to reach a deal before the impending debt limit deadline of early June, the Treasury may not be able to satisfy all of the government's obligations, triggering economic and financial catastrophe, threatening the U.S. dollar's credibility and squandering the hard-earned progress the economy has made in the wake of the COVID pandemic. "In 2011, we resolved the debt ceiling crisis right before the government had to stop making payments. But that eleventh-hour brinkmanship led to the first-ever downgrade of our credit rating in history," Yellen said. "Consumer confidence fell by over 20%. The S&P 500 plummeted by about 17%. Spreads for mortgages and auto loans widened. The U.S. economy hangs in the balance. The livelihoods of millions of Americans do too. There is no time to waste." Yellen also defended regulators' invocation of a systemic risk exception with the failures of Silicon Valley Bank and Signature Bank in March, and said regulators would take the same action for smaller banks if their failures pose a risk of contagion to the broader financial system. She also said community banks played a vital role in strengthening pandemic recovery efforts and remain a cornerstone of the national financial landscape, and noted that the risk of bank runs that sparked the banking crisis in March have since stabilized. "The situation has stabilized since then. Aggregate deposit outflows have steadied, and the Fed's Bank Term Funding Program and discount window are working as intended," Yellen said. "Like our community banks, the U.S. banking system remains sound. There is strong liquidity and capital in the system. The decisive actions that we took in March to protect depositors and provide additional liquidity to the system mitigated the very serious risk of broader financial contagion." Addressing smaller bankers — who have criticized regulators for giving larger banks preferential treatment — she argued March's regulatory actions were purely to stave off contagion, did not cost taxpayers nor did actions benefit the midsize regional banks' management or stakeholders. She also pushed back on the assertion by some smaller banks that regulators would only take drastic measures to help larger banks, even though, she ceded, such potential interventions would still require a bank with a footprint prominent enough to pose a systemic risk. "To be sure, there have been some aftershocks of the March developments, including the resolution of First Republic [Bank]. But I do not believe that these developments are a sign of any shift in the fundamental health of the banking system," Yellen said. "We remain vigilant and we continue to closely monitor conditions. As I've said, we have a set of effective tools at our disposal. We are prepared to take further actions if needed — including if smaller institutions suffer deposit runs that pose the risk of contagion."
In Desperate Hail Mary, House Dems Launch 'Discharge Petition' To Force Debt-Ceiling Vote - A summary of where we're at, via News Squawk:
- US President Biden said they had a good, productive meeting on the debt ceiling and there is still more work to do, while he made it clear to House Speaker McCarthy that they will talk regularly over the next several days. Biden is confident they will continue to make progress on avoiding default and said that defaulting on debt is not an option, while he also noted it is disappointing Republicans refuse to consider raising revenue, according to Reuters.
- White House said President Biden directed staff to meet daily on outstanding issues and said he would like to check in with leaders later this week by phone and meet with them upon return from overseas. Biden also emphasised that while more work remains on a range of difficult issues, he is optimistic that there is a path to a budget agreement, according to Reuters.
- President Biden will no longer visit Australia or Papua New Guinea and will return to the US on Sunday to focus on the debt ceiling talks, according to NBC.
- US House Speaker McCarthy said they have set the stage to carry on conversations in debt talks and that President Biden agreed to appoint a couple of people from the administration to negotiate directly with his team. McCarthy also said there is a lot of work to do in a short amount of time and that they are still very far apart but added it is possible to get a deal by the end of the week and it is not that difficult to reach an agreement. However, McCarthy later said he is not more optimistic about getting a deal by the end of the week.
- US Senate Majority Leader Schumer said the debt meeting was good and productive, while he added that they all agreed a default is a horrible option, according to Reuters.
- US Senate Republican Leader McConnell earlier told Senate Republicans there had not been much progress on debt ceilings talks with POTUS and other leaders.
- House Democrats are to reportedly begin collecting signatures for effort to raise debt ceiling, according to WSJ.
- Punchbowl on the US debt limit, says "Initial discussions began Tuesday night, with full-scale negotiations set to kick off this morning, we’re told", "Sources close to the talks expect any debt-limit boost to run well into 2025."
House Democrats plan to collect signatures on Wednesday for a 'discharge petition,' a long-shot parliamentary maneuver designed to circumvent House Republican leadership and force a vote on the debt ceiling, the Wall Street Journal reports. The top-ranking Democrat on the House Budget Committee, Brendan Doyle (D-PA), says he plans to initiate the petition in the well of the House when the chamber begins session at 10 a.m., where he'll be the first to sign. "We only have two weeks to go until we may hit the x-date," he said, referring to the anticipated default date. "We must raise the debt ceiling now and avoid economic catastrophe."Early Wednesday, House Minority Leader Hakeem Jeffries (D-NY) sent a "Dear Colleague" letter backing Doyle's effort, claiming that the "urgency of the moment" justifies pursuing all legislative options in the event that negotiations fall through.,"It is imperative that Members make every effort to sign the discharge petition today, which will be available at the Clerk’s desk on the House Floor beginning at 10 a.m.," reads the letter. The move comes as the White House is negotiating with House Speaker Kevin McCarthy (R., Calif.) over possible spending cuts to pair with a debt-ceiling increase. Talks currently center on potential spending caps in coming years, as well as rescinding unspent Covid-19 funds and toughening work requirements for federal benefit programs. The White House said Tuesday that President Biden would curtail a planned overseas trip to get him back to Washington sooner.The Treasury Department reiterated this week that the U.S. could become unable to pay its bills on time as soon as June 1 if Congress doesn’t raise the debt limit. –WSJ In order to move a bill to the floor by discharge position, Doyle will need at least 218 House members to sign - however since Republicans control the house 222-213, at least five GOP representatives must sign on. The petition is structured so that Democrats can fill in the text of the bill later, with Boyle saying that Democrats want to keep their options open for now. "I’ve always said a discharge petition is not a high probability move. But at this point, we must try whatever it takes," said Boyle. "I urge my Republican colleagues, especially those who like to call themselves moderate at election time, to join us and ensure America pays its bills."Treasury Secretary Janet Yellen warned on Monday that "time is running out" to avert an economic catastrophe, and that default could see financial markets "break" with worldwide panic that triggers margin calls, bank runs and fire sales.
Republicans push two-step deal on energy permits in debt talks - House Republican leaders are pushing a deal as part of the debt ceiling negotiations that would include narrow efforts to speed up permits for energy projects — but postpone action on Democrats’ proposals to ease the movement of wind and solar power. The two-step Republican proposal aims to focus first on issues that members of both parties have expressed some support for, according to a GOP House leadership aide who was granted anonymity to discuss sensitive negotiations. It would include changes to the National Environmental Policy Act, a landmark law passed in 1970, to allow both fossil fuel and clean energy projects to be built faster, the aide said. In turn, the Republicans would offer assurances that they would later take up Democratic proposals to give the federal government a bigger role in approving interstate power transmission lines. Those lines would be needed to accommodate the huge expansion of wind, solar and other renewable electricity that President Joe Biden is proposing to counter climate change. Given the time constraints to reach a deal before the government faces the risk of default, House Republicans are proposing kicking the can on the Democrats’ proposals, the aide said. Energy policy staffers for House Speaker Kevin McCarthy, Minority Leader Hakeem Jeffries, Senate Majority Leader Chuck Schumer, Minority Leader Mitch McConnell, and the White House have been meeting regularly since last week to negotiate the potential permitting elements of a deal. “We brought this idea forward as a way to focus on things we all benefit from, and then have a commitment to work on the other stuff,” the House GOP leadership aide said. “Why would I waste my time engaging on transmission if we can’t get a deal on the stuff we all know we need?”
The debt ceiling deal could make America’s STD problem much worse - — Senior Biden administration officials and public health leaders are warning that debt ceiling negotiations around clawing back unspent Covid-19 money would have an unintended consequence: increasing sexually-transmitted diseases. The potential cuts — one of the few seeming areas of agreement between House Republicans and the White House — could sap as much as $30 billion from state and local public health departments that are struggling to rebuild as Covid-19 wanes. Funding clawbacks would undermine work to slow the spread of syphilis, chlamydia, gonorrhea, HIV and hepatitis, and leave the country weaker in the face of future pandemics.States and cities are counting on unspent Covid funds to support the ranks of local public health workers who test people for sexually transmitted infections, find and contact others who were exposed, and direct people to treatment, efforts crucial to limiting the spread of STDs. “There’s no doubt” the cuts would hurt efforts to “rebuild our public health infrastructure,” Leandro Mena, director of the CDC’s Division of STD Prevention, told POLITICO at the annual conference of STD Directors in New Orleans. “If we don’t have a robust workforce ready, who’s going to be there when we have our next outbreak?” With the estimated “X-date” for hitting the debt ceiling less than two weeks away, proxies for House Speaker Kevin McCarthy and President Joe Biden are continuing to meet to cut a deal that would avoid a default ahead of Biden’s return Sunday from an overseas trip. Even as Biden suggested that unspent Covid funds were “on the table,” his own health officials are pleading with lawmakers not to eliminate funding for disease investigators vital to states’ ability to combat STDs and other infectious diseases.
McCarthy says they need a debt deal by this weekend. It's more complicated than that. - Speaker Kevin McCarthy has said Congress needs a debt limit deal by this weekend in order to avert a default by early June. It’s a bit more complicated than that. If Congress pulls out all the procedural stops, passing a debt ceiling and broader budget deal through both chambers could take a week and a half. That would push the U.S. uncomfortably close to the potential June 1 default deadline, even if leaders can reach a deal this weekend. While leaders are feeling optimistic about the latest negotiations, a compromise would have to be struck in the coming days — already a monumental feat — and congressional staff would also have to scramble to compile technical legislative text. In reality, talks are only now starting to get serious. Even though timing may seem extremely tight, both chambers have their own escape hatches that could allow them to vote on a bill more quickly, sometimes dramatically so. Plus, lawmakers aren’t all convinced that June 1 is a hard deadline, given the Treasury Department’s uncertainty about when it would truly run out of cash. Congress could potentially have until June 8, according to one estimate, giving lawmakers a crucial extra week to tie up loose ends. Next week, the spotlight is on the House, since the Senate is in recess. There, McCarthy believes it would take about four days to pass any potential legislation due to commitments he made back in January, including his promise to give lawmakers 72 hours to review bills before a vote. He could theoretically ignore that rule if the timeline gets squeezed, but he’d risk the wrath of his right flank. “I don’t think our members would tolerate it,” said Rep. Tom Cole (R-Okla.), a senior Republican appropriator, adding that he didn’t think McCarthy would abandon the rule. “I don’t think we want to look like our members didn’t have the time to read and consider the legislation.” The House is scheduled to depart for recess the week of May 29, but Cole said he wouldn’t be surprised if members are called back to pass a debt limit deal, should a vote fall through next week.On the Senate side, it can take up to a week to process a bill without agreement from all 100 senators. It will undoubtedly prove difficult to get unanimous support, in which case Schumer will have to whip up at least 60 votes to advance the legislation. And with the deadline so close, individual senators will have enormous leverage to demand amendment votes, further gumming up the works.If Schumer can get consent from all 100 senators, the normally slow procedural gears in the upper chamber can move remarkably fast. But Sen. Rand Paul (R-Ky.), one conservative with a history of holding up spending legislation in the pursuit of fiscal accountability, declined to say Wednesday whether he would object to speedy passage of a bipartisan debt ceiling deal. “For something really important, we would want to have full debate and amendments and questions and all that,” he said. “I don’t see why we would agree right now to speed up everything to let them get whatever they want. So it’s hard to answer a question when you don’t know what the package is or what the legislation is.”
Washington's window for resolving the U.S. debt ceiling is closing - Markets are on edge over whether budget talks will produce a solution to the U.S. debt-ceiling crisis as the window for averting a potential default narrows by the day, and the amount of room the Treasury Department has under the statutory borrowing limit dwindles. The Treasury said in a statement Friday that it had just $88 billion of extraordinary measures remaining as of May 10 to help pay the government's bills. That's down from around $110 billion a week earlier, and it means that just over a quarter of the $333 billion of authorized measures are still available to keep the U.S. government from exhausting its borrowing room under the debt limit. Treasury Secretary Janet Yellen said this month that her department could run out of cash as soon as June 1 and Treasury markets have shifted to price in a default premium for securities maturing around that date. The cost of insuring U.S. debt against nonpayment has also soared. President Joe Biden and House Speaker Kevin McCarthy are poised to reconvene Tuesday after staff-level talks held over the weekend, with the White House sending signs of guarded optimism. Biden said talks were "moving along" while National Economic Director Lael Brainard said the negotiations were serious and constructive. The meeting will offer a key test of whether the two sides can reach a deal before a potential default in June — and it comes before Biden leaves Wednesday for a trip to Japan, Papua New Guinea and Australia. But there are many in financial markets predicting or hoping that some kind of deal will get done, in part because that's what's always happened, even when things have gone down to the wire. From Washington to Wall Street, here's what to watch to gauge how worried observers should be and when they should be concerned.
Freedom Caucus says ‘no further discussion’ on debt ceiling until Senate passes House GOP bill -- The House Freedom Caucus is calling for “no further discussion” on legislation to raise the debt ceiling until the Senate passes the bill House Republicans approved last month that would pair an increase in the borrowing limit with steep spending cuts. Senate Majority Leader Chuck Schumer (D-N.Y.) has called the bill “dead on arrival.” The hard-liner conservative caucus said it adopted its official position on Thursday as debt limit negotiations continued behind closed doors between representatives for Speaker Kevin McCarthy (R-Calif.) and the White House. “The U.S. House of Representatives has done its job in passing the Limit, Save, Grow Act to provide a mechanism to raise the debt ceiling. This legislation is the official position of the House Freedom Caucus and, by its passage with 217 votes, the entire House Republican Conference,” the caucus wrote. “The House Freedom Caucus calls on Speaker McCarthy and Senate Republicans to use every leverage and tool at their disposal to ensure the Limit, Save, Grow Act is signed into law. There should be no further discussion until the Senate passes the legislation,” the caucus added. While Republicans were united behind their debt limit bill, which was intended to bring President Biden to the negotiating table, the Freedom Caucus position could indicate unity behind McCarthy’s strategy is starting to break — posing complications for the negotiations. However, House Freedom Caucus Chairman Scott Perry (R-Pa.) softened the position in an interview with CBS. “We’re not saying you can’t continue to talk, but until they’re willing to tell us what they’re willing to do, it’s hard to come to an agreement,” Perry said.
79 House Democrats express concern over GOP permitting reform as debt limit talks continue - - Nearly 80 House Democrats wrote a letter expressing concern about tying pieces of a Republican-led permitting reform package to must-pass legislation amid efforts to get a permitting reform deal into a compromise debt limit bill. In a new letter to President Biden, Senate Majority Leader Chuck Schumer (D-N.Y.), and House Minority Leader Hakeem Jeffries (D-N.Y.), the 79 lawmakers did not mention the debt limit directly. But, they warned broadly about attaching a Republican energy billknown as H.R.1 or other bills with the potential to harm the environment to “must-pass” legislation. “To protect American communities and our environment from undue harm, we strongly urge you to oppose ongoing attempts to attach H.R. 1 or any other extreme proposals that gut our bedrock environmental and public laws to must-pass legislation,” they wrote in the letter released on Friday. Permitting reform refers to efforts to speed up approvals of energy or other infrastructure projects amid complaints that the current process is too lengthy. The issue has divided Democrats, some of whom argue that a faster process is needed to build out low-carbon energy in the fight against climate change, but others warn that efforts to speed environmental reviews could harm nearby communities by limiting their input. Democrats who have been on both sides of the issue, however, signed onto the new letter. It was led by: Reps. Raúl Grijalva (D-Ariz.), Jared Huffman (D-Calif.), Debbie Dingell (D-Mich.), Paul Tonko (D-N.Y.), Mike Levin (D-Calif.), Sean Casten (D-Ill.), Alexandria Ocasio-Cortez (D-N.Y.), Melanie Stansbury (D-N.M.), Barbara Lee (D-Calif.), Pramila Jayapal (D-Wash.), Teresa Leger Fernandez (D-N.M.), and Sydney Kamlager-Dove (D-Calif.). Grijalva led opposition to a permitting reform pushed last year by Sen. Joe Manchin (D-W.Va.). However, Casten has said in the past that there was “more good than bad” in the bill. Yet, the group of lawmakers on Friday’s letter came together to put forward a set of four principles they’d like to see in a push to speed the nation’s infrastructure projects: a focus on implementing, rather than “gutting,” environmental law, full funding for federal offices that complete environmental reviews, a buildout for new electricity transmission infrastructure and rejecting efforts to “ hold must-pass legislation hostage.” It’s not clear how much power the coalition of lawmakers will have, especially given that they are the minority in the House. However, permitting reform efforts will also need to garner 60 votes in the Senate, which could be difficult to achieve.
McCarthy hits pause on debt ceiling talks - Top GOP lawmakers negotiating a debt ceiling compromise with the White House on Friday cut the talks short, signaling at least a temporary breakdown in the process as the clock ticks toward an imminent default. The Republicans left a meeting with White House officials in the Capitol saying the two sides remained too far apart to continue the in-person discussion and accusing the White House of being “unreasonable.” Speaker Kevin McCarthy (R-Calif.) arrived at the Capitol after talks had broken down and said the White House was simply not willing to accept spending cuts at the levels Republicans are insisting upon. “We’ve got to get movement by the White House, and we don’t have any movement yet. So, yeah, we’ve gotta pause,” McCarthy said. “Yesterday I really felt we were at the location where I could see the path. The White House is just — look, we can’t be spending more money next year. We have to spend less than we spent the year before. It’s pretty easy.” Speaker Kevin McCarthy is seen inside the Capitol in a motion-focused photo Speaker Kevin McCarthy (R-Calif.) speaks to reporters at the Capitol following a meeting at the White House with Congressional leaders and Vice President Harris to discuss the debit ceiling on May 16. (Greg Nash Rep. Garret Graves (R-La.) hours earlier had emerged from a meeting with White House officials in the Capitol voicing frustration that the sides had not made more progress. “We decided to press pause because it’s just not productive,” Graves told reporters while walking alongside Rep. Patrick McHenry (R-N.C.), another negotiator. He added the White House negotiators are being “unreasonable right now.” “Until people are willing to have reasonable conversations about how you can actually move forward and do the right thing, then we’re not gonna sit here and talk to ourselves,” he later added. “That’s what’s going on.” McHenry said later that the sides were simply too far apart to continue the in-person meeting on Friday, citing differences “on many issues.” He declined to name them. “They have serious people negotiating, and they’re driving a hard bargain. We’re not at a sufficient moment for this package to meet the expectations the Speaker set for us,” McHenry, chairman of the Financial Services Committee, said just before entering McCarthy’s office. “We’ve taken a pause. And we have significant gaps that have to be bridged for us to merit more conversation.”
US debt ceiling talks pause; negotiators stuck as default date nears (Reuters) - U.S. House Republicans and President Joe Biden's Democratic administration on Friday paused talks on raising the federal government's $31.4 trillion debt ceiling, rattling financial markets as the deadline ticked closer to avoid default. Republicans are pushing for sharp spending cuts in exchange for the increase in the government's self-imposed borrowing limit, a move needed regularly to cover costs of spending and tax cuts previously approved by lawmakers. Talks at the Capitol broke up around midday, and there was no immediate word on when they would resume. The Treasury Department has warned the government could be unable to pay all its bills a soon as June 1. This would trigger a default that would shake the world economy. "We've got to get movement from the White House and we don't have any movement yet," House Speaker Kevin McCarthy, the top Republican in Congress, told reporters after his lead negotiator walked out of talks with Biden administration officials. "We can't be spending more money next year. We have to spend less than the year before." A White House official said: "There are real differences between the parties on budget issues and talks will be difficult. The President’s team is working hard towards a reasonable bipartisan solution that can pass the House and the Senate." U.S. stocks closed the week on a soft note after news of the stalled negotiations derailed optimism that a deal could be reached soon. Republicans control the House by a 222-213 margin, while Biden's Democrats have a 51-49 Senate majority, making it difficult to thread the needle with a deal that will find enough votes to pass both chambers. Democrats have been pushing to hold spending steady at this year's levels, while Republicans want to return to 2022 levels. A plan passed by the House last month would cut a wide swath of government spending by 8% next year. That Republican plan does not specify what spending would be cut, but some party figures have said they would shield military and veterans programs. Democrats say that would force average cuts of 22% on domestic programs like education and law enforcement, a figure top Republicans have not disputed.
66 progressive lawmakers urge Biden to use 14th Amendment in debt ceiling fight - Dozens of progressives have signed onto a letter urging President Biden to invoke the 14th Amendment and bypass Republicans to prevent the nation from defaulting on its debt. Congressional Progressive Caucus (CPC) leaders Pramila Jayapal (D-Wash.), Ilhan Omar (D-Minn.) and Greg Casar (D-Texas) led more than 60 progressives in penning the letter to Biden on Friday, as the president attends the Group of Seven (G-7) summit abroad this week. “If the options are either agreeing to major cuts to domestic priorities under the Republican threat of destroying the economy and moving forward to honor America’s debts, we join prominent legal scholars, economists, former budget officials, and a former president in advocating for invoking the 14th Amendment of the Constitution,” they wrote. “Not only does the debt ceiling run counter to the Constitution’s mandate that the validity of America’s public debt shall not be questioned, it contradicts the appropriations law that requires the Treasury to issue debt for the funding you are obligated to administer at Congress’s direction,” the group added. The letter comes as Republican negotiators indicated that bipartisan talks to resolve the nation’s debt limit fight had hit a roadblock on Friday — and blamed the White House. Speaker Kevin McCarthy (R-Calif.) said the negotiations were on pause, claiming the other side failed to make adequate concessions on spending cuts. “We’ve got to get movement by the White House, and we don’t have any movement yet. So, yeah, we’ve gotta pause,” McCarthy said.
US Chamber warns Biden using 14th Amendment would be ‘economically calamitous’ The Chamber of Commerce, the largest business group in the nation, warned President Biden on Friday of the potentially disastrous economic effects of invoking the 14th Amendment to avoid the country defaulting on its debts. “It is the Chamber’s view that attempting to invoke so-called ‘powers’ under the 14th Amendment would be as economically calamitous as a default triggered by a failure to lift the debt limit in a timely manner,” wrote Neil Bradley, the Chamber’s chief policy officer, in a letter to the president. Bradley argued the president acting unilaterally to issue new debt above the debt limit is not supported by the Constitution and “ignores negative economic consequences that would occur if the administration attempted to issue such debt.” He also said the letter sent earlier this week from Sen. Bernie Sanders (I-Vt.), Sen. Tina Smith (D-Minn.) and several other senators to Biden that suggested he prepare to use the amendment, led him to write the letter Friday. Bradley noted that in the letter from the senators, they “omitted a foundational clause” of Section 4 of the 14th Amendment and replaced it with an ellipsis, therefore not including that the validity of the public debt is “authorized by law.” Additionally, the Chamber said the Treasury Department attempting to borrow money above the statuary limit would ignore the powers enshrined in the Constitution. The business group said if the U.S. were to sell treasuries to cover debt, a significant interest premium would be included, and those costs could be a significant drag on the economy. “Simply put, there is no alternative to reaching a bipartisan agreement to raise the statutory debt limit,” Bradley wrote. The Chamber has backed spending caps as part of a debt ceiling deal and has called for lawmakers to ensure the deal includes permitting overhauls, a top priority for the organization. Top business lobbying groups overall have called for a debt ceiling compromise between the White House and Republicans. 66 progressive lawmakers urge Biden to use 14th Amendment in debt ceiling fight DeSantis says ‘zero’ chance he will back down from dispute with Disney If the president were to invoke the 14th Amendment, it would likely lead to uncertainty hanging over the already-fragile financial system and risk a default being tied up in the courts. The president said last week there have been discussions about whether the 14th Amendment can be invoked, but he acknowledged it would have to go to the courts. Floating the option could be used as leverage and put pressure on Republicans to strike a deal ahead of the June 1 default
Debt ceiling negotiations update: GOP, White House resume talks - Republicans and the White House resumed debt ceiling talks on Friday evening after frustrated GOP negotiators hit pause for much of the day. But a key Republican negotiator is not confident about coming to an agreement this weekend, which Speaker Kevin McCarthy (R-Calif.) has said has to happen to allow legislation to pass through the House and Senate by June 1, the day Treasury Secretary Janet Yellen said the U.S. could default by. “Just now, we are back in the room. We’ll be back in the room tonight,” McCarthy said on Fox Business on Friday evening. “But it is frustrating if they want to come in the room and think we’re going to spend more money next year than the year we did this year,” McCarthy said. “That’s not right and that’s not going to happen. Earlier in the day, lead GOP negotiator Rep. Garret Graves (La.) emerged from the talks saying that the White House was being “unreasonable.” McCarthy said they had to “pause.” As McCarthy appeared on the cable network shortly after 6 p.m., the two chief White House negotiators, Office of Management and Budget Director Shalanda Young and senior adviser Steve Ricchetti, entered the negotiating room along with Rep. Patrick McHenry (R-N.C.). Young and Ricchetti would not comment walking into the meeting. “At the Speaker’s request we’re going back in and we’re gonna keep talking,” McHenry said in the Capitol.
Biden meeting Ukraine's Zelenskiy, South Korea and Japan on Sunday (Reuters) - U.S. President Joe Biden will meet Ukrainian President Volodymyr Zelenskiy on Sunday and also hold a joint meeting with the leaders of South Korea and Japan, according to a U.S. official. The United States, South Korea and Japan will discuss deepening three-way ties between their countries, including military "interoperability," according to the senior Biden administration official who declined to be named briefing reporters. The countries will also discuss the economic "coercion" they face from China, the person said. The official said Washington hopes that Beijing will take away from the Group of 7 (G7) meetings in Japan that it should use its influence to stop Russia's war in Ukraine.
McCarthy Sees No Progress on Debt Talks Until Biden Returns -- House Speaker Kevin McCarthy accused the White House of backtracking in talks on raising the US debt limit and said he doesn’t expect any progress until President Joe Biden returns to Washington from a Group of Seven summit in Japan. “I don’t think we’re going to be able to move forward until the president can get back into the country,” McCarthy told reporters at the Capitol on Saturday. “Just from the last day to today they’ve moved backwards. They actually want to spend more money than we spend this year.” McCarthy’s comments confirmed a renewed shift in tone to mutual recrimination after the White House suggested earlier Saturday that Republicans were negotiating in bad faith. The clock ticking is with Treasury Secretary Janet Yellen having said the US could lose its ability to pay all its bills by June 1. Biden signaled earlier Saturday that he remains confident the US government can avoid a catastrophic default. Republicans and the White House are battling over spending cuts, which GOP lawmakers demand as the price for raising the federal borrowing limit. “We have to spend less than we spend this year,” McCarthy said, repeating his bottom-line demand. Lawmakers are stepping up their attacks on each other as talks have stalled — despite showing signs of progress earlier in the week. “I think that Bernie Sanders and the socialist wing of their party has had real effect on the president, especially with him being out of the country,” McCarthy said. White House press secretary Karine Jean-Pierre said in a press briefing from Hiroshima, Japan, on Saturday that there were “real differences between the two sides.” And Deputy Press Secretary Andrew Bates said House Republicans were “taking the American economy hostage,” and portrayed the GOP caucus as beholden to right-wing members.
US Officials Confirm Russian Strike On Patriot System In Ukraine: CNN - On Tuesday Russia's military announced it destroyed US-supplied Patriot anti-air battery in Ukraine during a hypersonic missile strike on Kiev. Widely circulating video appeared to confirm the destruction of a Patriot battery, but still there was much speculation over the event, given it was a significant first on the Ukrainian battlefield.US defense officials are now confirming that US Patriots were hit by Russia, however, they downplayed the degree of devastation of the strike. CNN reports: The damage to a Patriot air defense system following a Russian missile attack near Kyiv on Tuesday morning is minimal, three US officials tell CNN, with one official describing it as “minor” damage.The US sent inspectors to examine the system on Tuesday after being told by Ukrainian forces that the system appeared to have been damaged, one official said.CNN writes further based on the statement from US officials: "It is not clear what part of the Patriot was damaged or if it was damaged by an actual missile strike or falling debris. The Ukrainians said they successfully intercepted all six Russian Kinzhal missiles on Tuesday morning."Despite claiming the Patriot wasn't utterly "destroyed" in the attack, CNN's reporting seems to confirm the narrative from the Russian Defense Ministry, which said in a Tuesday Telegram post: "a high-precision strike by the Kinzhal hypersonic missile system in the city of Kyiv hit a US-made Patriot anti-aircraft missile system." Ukraine had publicly denied Moscow's assertion.
WaPo Deletes Bizarre Zelensky Interview Where He Accuses Paper Of Aiding Russia --The Washington Post deleted a portion of an interview with Ukrainian President Volodymyr Zelensky, where he accused the paper of helping Russia by posing a question about information contained in leaked classified documents.The interview was conducted on May 1 and published on Saturday. An archived version of the interview shows a testy exchange between Zelensky and the Post, which was later deleted.The Post asked Zelensky about documents they obtained that they said showed members of Ukraine’s Main Directorate of Intelligence, known as HUR, had “back-channel contact” with Yevgeny Prigozhin, the head of the Russian mercenary force Wagner Group.Zelensky appeared to think the Post received the information from a Ukrainian and demanded the paper reveal its source.“I would also like to ask you a question: With which sources from Ukraine do you have contact? Who is talking about the activities of our intelligence? Because this is the most severe felony in our country. Which Ukrainians are you talking to?” he said.The Post said the information “did not come from Ukraine” and that it was part of the Discord leaks, which revealed information that was obtained by the US spying on Zelensky. The Post said the documents showed Kyrylo Budanov, the head of Ukraine’s Main Directorate of Intelligence, informed Zelensky about a “Russian plan to destabilize Moldova with two former Wagner associates.”The Post added:“Budanov informed you that he viewed the Russian scheme as a way to incriminate Prigozhin because ‘we have dealings’ with him. You instructed Budanov to inform Moldovan President Maia Sandu, and Budanov told you that the GUR [HUR] had informed Prigozhin that he would be labeled a traitor who has been working with Ukraine. The document also says that Budanov expected the Russians to use details of Prigozhin’s secret talks with the GUR [HUR] and meetings with GUR [HUR] officers in Africa.”Zelensky responded by asking if the paper wanted the help Russia.“You are releasing some sort of information that does not help our state to attack and does not help us to defend our state. So, I don’t quite understand what you are talking about. I don’t quite understand your goal. Is your goal to help Russia?” he said. When the Post responded by saying it didn’t want to help Russia, Zelensky replied, “Well, it looks different.”It’s not clear why the Post deleted the portion of the interview, but it could have been done at the behest of the Ukrainian government, which had previously pressured CBS News to remove a documentary on military aid to Ukraine.
Russia bans Obama, Maddow, Colbert over sanctions - Russia has banned hundreds of U.S. citizens, including former President Obama, political commentator Rachel Maddow and late-night host Stephen Colbert, from entering its territory in response to the U.S. sanctions over the Ukraine war. The Russian Foreign Affairs Ministry said in a Friday post on its website it is blocking entry for 500 Americans in response to the sanctions it said are designed to inflict the most damage possible on officials and civilians in Russia. The list of banned individuals includes former officials, lawmakers from both parties who were elected to Congress during last year’s midterm elections and may have been missed in previous rounds, experts and analysts for centers the ministry said spread “Russophobic” attitudes, and companies that have supplied weapons to Ukraine to defend itself against Russia’s invasion. The ministry said the list also includes individuals who have been involved in the “persecution of dissidents” who participated in the Jan. 6, 2021, storming and riot at the Capitol. “It is high time for Washington to learn that not a single hostile attack against Russia will be left without a strong reaction,” the post states. “The principle of the inevitability of punishment will be consistently applied, whether we are talking about tougher sanctions pressure or discriminatory steps to hinder the professional activities of our fellow citizens.” The U.S. and other Western allies of Ukraine have placed sanctions on Russia numerous times since Russian forces began their full-scale invasion of Ukraine last year. Names on the list also include Reps. Glenn Ivey (D-Md.) and Becca Balint (D-Vt.), Sen. Katie Britt (R-Ala.), CNN anchor Erin Burnett, New York Attorney General Letitia James (D), California Attorney General Rob Bonta (D) and U.S. Attorney for the District of Columbia Matthew Graves. Contaminated eyedrops now linked to 4 deaths, 14 cases of blindness: CDC FBI repeatedly misused surveillance tool, unsealed FISA order reveals Late-night hosts Jimmy Kimmel and Seth Meyers and former NBC and MSNBC anchor Brian Williams are also banned.
US-China Tensions Thawing As Washington Fears Allies Will View Policies As Too Aggressive --Renewed meetings between senior American and Chinese officials may suggest the fragile relations between the world’s two largest economies could begin to thaw with increased communication and diplomacy, the Washington Post reported on Friday.National Security Adviser Jake Sullivan met with China’s top diplomat Wang Yi in Vienna last week. Wang, the director of China’s Central Foreign Affairs Commission, spoke with Sullivan for eight hours over the course of two days. The meeting was pulled together quickly, US and Chinese officials told the Post, and marked the highest level dialogue between the two sides since President Joe Biden met with his Chinese counterpart Xi Jinping in Bali last November. The leader-level meeting helped ease tensions after former House Speaker Nancy Pelosi’s provocative visit to Taipei last August, paving the way for further diplomacy, eyeing a visit to Beijing by Secretary of State Antony Blinken. Though Washington’s top diplomat would have met with Wang, and likely President Xi, earlier this year, the long planned visit was canceled by Blinken on the eve of his departure last February amid concerns over a Chinese meteorological balloon traversing the continental US as a result of unexpected weather . The balloon was shot down by an American F-22 off of South Carolina’s coast.Later that month, Blinken stoked tensions further and confronted Wang on the sidelines of the Munich Security Conference. Blinken claimed, without evidence, that China “sent a surveillance balloon over our territory, violating our sovereignty.” In response, during the following months, Beijing effectively froze the US out of high level, bilateral talks. A senior US official speaking to the Post described the meeting this week between Sullivan and Wang as “candid” and “constructive.” Sullivan was said to have “raised the cases of detained American citizens in China and counternarcotics operations as well as regional security issues,” namely Taiwan.Under Biden, the US has been expanding a massive buildup in the Indo-Pacific targeting Beijing and concurrently increasing military as well as diplomatic ties with Taipei. In recent weeks and months, President Tsai Ing-wen was hosted by House Speaker Kevin McCarthy for talks in California, making McCarthy the highest level US official to host a Taiwanese leader on US soil since Washington severed diplomatic ties with Taipei, and recognized Beijing, almost 50 years ago.In the 2023 NDAA bill, signed by Biden, Washington committed billions of dollars in military aid to Taiwan, and deployed an unprecedented 200 troops to the island, training the breakaway province’s forces for war with the mainland. China views Washington’s Taiwan policy as consistently violating the One-China principle , which Xi told Biden is the “first red line that must not be crossed.” Lack of communication between both sides combined with Washington’s confrontational posture and significantly expanded military presence in the South China Sea, for instance, raises the chances that an accident, miscalculation, or standoff will be impossible to solve diplomatically and potentially lead to a major conflict. Sullivan also reportedly discussed the war in Ukraine with Wang and “shared concerns” about Beijing possibly arming Moscow – echoing a months-old propaganda claim originally made by Blinken, without evidence, during his meeting with Wang in February. China denies Washington’s accusation, which is based on “scant intelligence,” according to an official from a G7 country speaking to Reuters.
China Says New US Support For Taiwan "Absolutely Intolerable" -On Tuesday, China’s People’s Liberation Army (PLA) responded to US plans to provide Taiwan with $500 million in unprecedented military aid and reports that said hundreds of US troops have been deployed to the island, warning it will “firmly crush attempts at external interference.” Taiwan’s defense minister recently said that Washington and Taipei are in talks about the US providing $500 million in “free” weapons. The arms will be sent using the Presidential Drawdown Authority, the same authority President Biden has been using to arm Ukraine, which allows him to ship weapons straight from US military stockpiles. Secretary of Defense Lloyd Austin confirmed on Tuesday that the Pentagon plans to send arms to Taiwan using the PDA soon.Since Washington severed diplomatic relations with Taipei in 1979, the US has sold weapons to Taiwan but never provided them free of charge. Taiwanese media also recently reported that about 200 US troops have been deployed to Taiwan to assist in training, marking the largest known US military presence in Taiwan in decades.According to a PLA press release, PLA spokesman Col. Tan Kefe said attempts “of the US side to turn back the wheel of history on the Taiwan question are absolutely intolerable.”When asked about the aid and the troop deployment, Tan said the US has “the US has stepped up its military collusion with the DPP (Democratic Progressive Party) authorities by strengthening military contacts and upgrading substantive relations between the two sides, which has shaken the foundation of the China-US relations and undermined the peace and stability across the Taiwan Strait.” Tan said that the issue of Taiwan is the “first red line that must not be crossed in China-US relations,” something Chinese President Xi Jinping told President Biden when the two leaders met face-to-face in Bali last November. Beijing views Washington’s recent efforts to increase support for Taiwan as an affront to the US’s one-China policy.Tan noted that Washington severing diplomatic relations with Taipei, ending its Mutual Defense Treaty with the island, and withdrawing troops were “the preconditions for the establishment of diplomatic relations between China and the US.”He called on the US to stop increasing support for Taiwan and “reiterated that the Chinese PLA will continue to strengthen military training and combat readiness, firmly crush ‘Taiwan independence’ attempts and external interference in any form, and resolutely safeguard national sovereignty and territorial integrity.”Hawks in Washington argue the US must arm Taiwan “to the teeth” to prevent a Chinese invasion of the island. But Beijing’s rhetoric and actions demonstrate that Taiwan will be put under more military pressure in response to growing US-Taiwan ties.
GOP mulls how to make its Afghanistan oversight matter - House Republicans pushed their probe of the nation’s chaotic withdrawal from Afghanistan to the brink this week, threatening to hold the secretary of state in contempt of Congress. Yet some of them aren’t convinced that voters care. For the House GOP the messy 2021 military removal that resulted in the death of 13 U.S. service members remains a potent political liability for President Joe Biden. House Foreign Affairs Committee Chair Michael McCaul (R-Texas) said that “oh yeah, 100 percent” the withdrawal has done lasting damage to Biden, whose approval ratings demonstrably sank in the summer of 2021. Yet Afghanistan is a far trickier oversight for the Republican Party than the base-pleasing topics of border security or the Biden family. That’s because, as even some GOP lawmakers acknowledge, it’s not clear whether the 2021 pullout still resonates with voters. “Americans want their pizzas in 30 minutes, and that’s about our attention span,” said Rep. Tim Burchett (R-Tenn.), a member of the Foreign Affairs Committee. “The average American, they’ve moved on.” “The trouble with this bunch up here, in both parties,” Burchett added, is that “it takes them too dadgum long to get to issues.” Indeed, the Afghanistan withdrawal is rarely acknowledged by the conservative media. It’s a stark difference from the 2012 attacks on U.S. officials in Libya that metastasized into a GOP-fueled investigation into then-presidential frontrunner Hillary Clinton. And even as McCaul pledged to hold State Department chief Antony Blinken in contempt over the withholding of an internal dissent cable — a document that details concerns from officials who objected to the withdrawal — some of his GOP colleagues are openly skeptical that his work will change any minds. “The political points have all been scored,” Rep. Tom Cole (R-Okla.) said in an interview. “All you had to do was turn on the television. … The American people know it was a debacle, but I think they’d like to understand the decision-making process leading up to it.”
Homeland Security chief Mayorkas boasts of “success” of Biden’s crackdown on asylum seekers - Department of Homeland Security (DHS) Director Alejandro Mayorkas made appearances on TV news programs on Sunday to tout the effectiveness of the Biden administration’s attacks on migrant asylum seekers in the two days since the Title 42 expulsion rules were lifted at midnight on Thursday. Responding to a question by ABC News’ “This Week” anchor Jonathan Karl on the fact that the predicted surge of migrants at the southern border “hasn’t quite happened yet,” Mayorkas replied that the US Border Patrol has seen a “fifty-percent drop” in the number of people encountered since the days before Title 42 ended. When asked why this was the case, Mayorkas praised the Biden administration, which he said has been “preparing for this transition for months and months and we have been executing on our plan accordingly.” The Title 42 public health rules were first implemented by the Trump administration in March 2020 after the onset of the coronavirus pandemic as a means of expelling migrants without an asylum hearing, in violation of international law and their fundamental democratic rights. DHS Director Mayorkas went on to state that those currently seeking asylum in the US at the southern border had a “safe, lawful and orderly way to reach the United States” through “lawful pathways that we have expanded,” as opposed to what he called “a dangerous way to arrive at our southern border in the hands of ruthless smugglers.” Having falsely portrayed the Biden administration’s border policy as a campaign against human trafficking, Mayorkas quickly moved on, saying, “[W]e’ve already removed thousands of people who have arrived at our southern border” by enforcing “our traditional immigration enforcement authorities under Title 8 of the United States code.” He added that the Biden administration had also issued a rule that “if one arrives at the southern border without either accessing the lawful pathways or seeking relief in one of the countries through which they have traveled,” they will be met with a five-year ban and potential criminal prosecution. When ABC’s Karl pointed out that Biden’s new policy is essentially an asylum ban and very similar to that of the Trump White House, Mayorkas objected and claimed the Democrats had “a humanitarian obligation as well as a matter of security to cut the ruthless smugglers out.” When pressed further on the issue, Mayorkas exposed the purpose of all references to smugglers as a cover for the administration’s anti-immigrant policy by saying, “We have an obligation to deliver consequences at our border...”
Texas GOP Congressman Dismisses Claims Border Situation Is 'Not That Bad' -- Rep. Tony Gonzales (R-Texas) said videos he recorded at El Paso showed that the border situation is worse than it’s being portrayed, following the expiration of the pandemic-era immigration policy Title 42 at midnight on May 11.“This is what I’m hearing on the ground from mayors, from Border Patrol agents, from embedded media, everyone is saying it’s not that bad. So on Friday, I visited El Paso and went to the Central Processing Center,” Gonzales said on CBS’ “Face the Nation” on May 14.“In the El Paso sector, there’s over 6,000 people that are in custody in this particular facility. It’s meant to house 1,000 people, it’s housing over 3,000,” Gonzales said. “In one of these rooms … the max capacity is 90 people; there was over 400 in here, that’s a 450 percent capacity.He noted that another room, which was intended to hold 120 people, was holding over 700 people.“We can’t allow ‘not that bad’ to be the normal,” Gonzales said, before adding that an unaccompanied minor had died while in the custody of the Department of Health and Human Services last week.The Title 42 public health provision was invoked in March 2020 by the U.S. Centers for Disease Control and Prevention (CDC). It was put in place to stop the spread of the COVID-19, as illegal immigrants could be quickly turned away at the southern U.S. border, rather than be processed at immigration detention facilities under Title 8 immigration law.Gonzales, who represents Texas’s 23rd congressional district, stretching from western San Antonio to El Paso, has been expressing concerns about the fallout of Title 42’s expiration.Earlier this month, the Texas congressman voted in favor of the Secure the Border Act (H.R.2), an immigration bill that the House passed after a 219–213 vote mostly along party lines. The measure would restore many of the Trump administration’s policies, such as resuming construction of the border walls. It would also seek to increase the number of Border Patrol agents and strengthen the asylum process.In a statement after the vote, Gonzales said the House bill “is a step in the right direction.”“Unfortunately, and to my extreme concern, H.R. 2 falls short of addressing cartel activity at the southern border,” he wrote. “At the eleventh hour, my provision to begin labeling cartels as terrorist organizations was stricken from the bill. This common-sense policy would have paved the way for law enforcement to better seize their financial assets and strengthen criminal penalties on cartel operators.”
Senator Hawley: Democrats "Want The Chaos" At The Border - Senator Josh Hawley urged Friday that the Biden administration is intending to “collapse the immigration system” on purpose and that “they want the chaos” at the border. “I think the plan is exactly what you’re seeing, they want the chaos,” Hawley told Fox News host Laura Ingraham, adding “The plan is to try to collapse our immigration system completely, collapse the courts collapse the asylum process, overrun the border.” “That is the plan. That’s what they want. They want the chaos,” The Senator reiterated, adding “If you thought the fentanyl problem in this country is bad. You thought it was bad in my state, where it’s the number one cause of death in the state of Missouri for young people. Just wait because they are about to turn it on full throttle.” Hawley continued, “The drugs that will come across this border, the crime that will come across this border, the danger to our families and our communities, it’s going to be unlike anything we’ve ever seen in terms of border crossings in our country’s history.” “It already is, and they haven’t even lifted title 42 yet,” Hawley continued, adding “They want the immigration system to collapse because the Democrat Party’s base now flies around and jets and conferences in Davos and are a bunch of globalists who want to drive down the price of labor in America.” “They want to drive down wages for blue-collar workers in America. They want to do the bidding of the global multinationals. That’s who runs the Democrat Party today,” Hawley asserted. Watch:
Mexican ambassador lashes out at Kennedy for ‘racist and xenophobic insults’ - Mexican Ambassador to the United States Esteban Moctezuma excoriated Sen. John Kennedy (R-La.) over a derogatory statement he made at a Senate hearing last week. While prodding Drug Enforcement Administration (DEA) Administrator Anne Milgram to endorse U.S. military and law enforcement action in Mexico, Kennedy said that “without the people of America, Mexico — figuratively speaking — would be eating cat food out of a can and living under a tent behind an Outback.” In response, Moctezuma wrote Kennedy a two-page letter. “I don’t think the people of Louisiana feel represented by the vulgar and racist words you used,” he said. At the Senate hearing, Kennedy asked Milgram four times whether she believed Mexican President Andrés Manuel López Obrador should invite U.S. military and law enforcement personnel into the country to fight the cartels. “If President López Obrador invited the American military and or law enforcement personnel to come into Mexico and work with his — we could stop the cartels, couldn’t we?” Kennedy asked in the fourth iteration of his question. “I believe we can stop the cartels,” replied Millgram. Kennedy pressed Millgram on whether she had suggested such a deployment to President Biden and segued into a comparison of the two countries’ economic output. “Our economy is $23 trillion, Mexico’s is $1.3 trillion. Ours is 18 times bigger. We buy $400 billion every year from Mexico,” said Kennedy, before launching into his cat food metaphor. “As I was listening, my initial reaction was to answer you in the same low, uninformed, and arrogant tone as the one you used,” Moctezuma wrote. “But it is always better to use your brain instead of your guts, so I recalled the vibrant relationship that exists between Mexico and the United States.” The ambassador cited figures including the 33 million U.S. tourists who visit Mexico every year and the $800 billion in bilateral trade, as well as the 2 million U.S. citizens who permanently live in Mexico. “To enlighten you, Louisiana greatly benefits from its relationship with Mexico,” Moctezuma added. “Last year, it exported to us $40 billion and bought $15 billion, with a surplus balance in favor of Louisiana of $25 billion. Furthermore, the jobs in Louisiana generated by all this trade support 70,000 families in that great state.”
Supreme Court punts in Title 42 immigration fight - The Supreme Court on Thursday passed up a chance to weigh in on the Biden administration’s decision to declare an end to the coronavirus public health emergency and allow strict pandemic-related limits on asylum-seekers to expire.A coalition of conservative states sought to enter long-running litigation over the policy known as Title 42, after the Biden administration was ordered to end the immigration restrictions last year and agreed to a wind-down period to do so.Last December, the justices voted 5-4 to temporarily block a lower court judge’s order requiring an end to the immigration restrictions. The Supreme Court also added the dispute to its docket to be argued earlier this year.However, after the Biden administration announced plans to unilaterally terminate the public health emergency earlier this month, the justices removed the case from their argument calendar. Last week, the administration formally ended the emergency and the related immigration controls. On Thursday, the justices effectively declared the legal dispute moot and wiped out an order from the D.C. Circuit Court of Appeals denying the red states’ effort to wade into the long-running legal case brought by lawyers representing asylum-seekers.Despite their move deep-sixing the Title 42 fight, the justices could soon be confronted by legal issues arising from the Biden administration’s attempt to replace the pandemic-related rules with other policies designed to discourage asylum-seekers from simply showing up at border stations or crossing without being checked by immigration officers.
Opinion | It’s Time for Biden to Out-Trump Trump on Immigration - The New York Times - According to news reports, the recent surge of migrants from Latin America flooding our southern border was largely a result of the end of a Trump-era Covid policy. I beg to differ.It’s the result of a new world.And this new world is going to challenge both traditional Republican and traditional Democratic views on immigration. As I’ve argued before, there is only one way to deal with the waves of migrants who will continue to come America’s way. And that is with a very high wall with a very big gate.Democrats don’t want to hear about high walls, and Republicans don’t want to hear about big gates. Too bad. We need both.Donald Trump was a fraud on immigration. He never wanted to solve the problem. He exploited the fears of an uncontrolled border to stop immigration and appeal to racists and white supremacists in his base. And stoking those fears worked for Trump.In my view, President Biden should out-Trump Trump. Do everything possible to secure the border like never before — more walls, more fences, more barriers, more troops, the 82nd Airborne — whatever it takes. Make Democrats own border security. But not for the purpose of choking immigration: for the purpose of expanding it. It is good policy and good politics.If we are going to thrive in the 21st century and compete effectively with China, we need to double down on our single greatest competitive advantage: our ability to attract the most high-aspiring migrants and the most high-I.Q. risk takers, who start new businesses.Best I can tell, God distributed brains equally around the planet. What he didn’t distribute equally was which countries would most welcome the highest-energy, highest-intellect immigrants. It has long been our singular competitive advantage that we were No. 1 in this category. If we throw that advantage away, as a country we will revert to the global mean.But we simply cannot have a rational discussion about expanding immigration to serve our interests — and about how to create a fair pathway to citizenship for illegal immigrants already here, as well as for their children born here — if too many Americans think our southern border is out of control.And we need that discussion today more urgently than ever, because here’s a news flash: The 10,000 migrants a day who surged across the Mexico-U.S. border in the few days before the Trump restrictions were lifted — the highest levels ever — were not an aberration, even if those levels were reduced in recent days to less than the chaotic levels Biden feared. They’re the start of a new normal.
Florida trucker boycott: Florida's strict new immigration law draws response - Last week, Gov. Ron DeSantis signed a bill imposing tough new penalties and restrictions on undocumented immigrants in Florida that, among other things, requires employers to use E-Verify to make sure workers are authorized to work in the U.S.By the weekend, Latin American truck drivers were threatening to stop delivering to and in Florida, according to independent journalist Arturo Dominguez. "Don't enter Florida," one trucker said in a TikTok video."Spanish language social media has exploded with Latino truck drivers calling for a boycott and refusing to take shipments into Florida," Dominguez tweeted Saturday. "Things are about to get interesting."During the COVID pandemic, the President Trump administration established Title 42, part of a public health law to curb migration in the name of protecting public health. It allowed U.S. officials to turn away migrants to came to the U.S,-Mexico border. Before that, migrants could cross illegally, ask for asylum and, after being screened, were often allowed to stay while they waited for their immigration cases. Under Title 42, migrants were returned over the border and denied the right to seek asylum.In response to the end of Title 42, the Florida legislature pushed through a new bill, which has been praised by supporters as necessary and condemned by critics as cruel and potentially leading to law enforcement profiling. It’s considered among the toughest steps taken by any state to deter illegal aliens from arriving. Are truckers boycotting Florida? We don't know for sure that they are, yet. Dominguez retweeted several videos of truckers calling for a boycott. In one of the TikTok videos, a trucker under the name of @robertooleo88oficial said, translated from Spanish: "Truckers, don't enter the state of Florida. Let's be united as Latinos in defense of our Latin American brothers who are being assaulted by this very stupid law, which incites hatred and discrimination. My truck won't move. Don't enter Florida. Nobody enter Florida." “I’m not going to Florida. I’m with you," @elarracas91.1 said, translated from Spanish. "I’m a trucker and Cuban. The race needs help and here we are. Strength.” “Look at how many truckers are behind me," he said. "We have lines and lines and lines of truckers. “Remember one thing. In Florida, more goes in than comes out so if we don’t take anything to Florida. Tell me? What are they going to have? Let’s see what the governor is going to do. Is his little truck going to take things to his lousy racist people he has there?” @sanchezmanuel33 referred to a similar protest a few years ago when truckers supported a Cuban trucker in a Colorado accident, and called for truckers to unite to support immigrants. “What they are doing in Florida is not right," he said. "I repeat: My truck is not entering Florida. I’m not entering Florida. So don’t transport to Florida − in support of the immigrant. We are all immigrants.”
Migrant encounters down 70% since end of Title 42, US official says (Reuters) - Migrant encounters at the U.S.-Mexico border have dropped 70% since COVID-era border restrictions ended last week, U.S. Homeland Security official Blas Nunez-Neto said on Friday. U.S. officials on Sunday had said the number had fallen by half, following the May 11 expiration of a health order called Title 42 that allowed U.S. authorities to quickly send migrants back to Mexico without the chance to request asylum.
University of California considers hiring undocumented students despite federal ban - The University of California is moving toward employing undocumented students who lack work permits, teeing up a possible test of decades-old U.S. legal norms. The UC Regents voted Thursday to create a working group that will explore hiring such workers and advise the board on a decision, which it expects to make by the end of November. The board took the vote after meeting for more than two hours behind closed doors with attorneys. “I want to do the best we can for our students, but I also realized that it does take time,” said board Chair Richard Leib. “We have to go through and analyze and talk to everybody, and make sure we’re doing this the right way, so we have the best case forward.” Allowing campuses to employ such workers could change thousands of students’ lives — and invoke a bevy of court challenges. The ten-campus system would be the first to openly skirt a law then-President Ronald Reagan signed in 1986 that banned employers from hiring people who lack federal work authorization. A group of students and progressive legal scholars — led by UC law school deans and professors — have argued the Immigration Reform and Control Act does not apply to states. They’ve for months pressured the university’s governing board to allow campuses to hire undocumented students, who’ve been placed in a precarious position since a federal judge in 2021 blocked the Biden administration from approving new recipients of the Deferred Action for Childhood Arrivals program.“The federal courts have consistently recognized that states have broad power to determine the appropriate qualifications for state positions, including qualifications related to immigration status,” the co-directors of the UCLA Center for Immigration Law and Policy wrote in a letter explaining their theory in September.The prestigious university system of nearly 295,000 students already provides legal advice, financial aid and counseling to undocumented students. California’s Democratic-led Legislature has passed a series of laws since 2001 extending in-state tuition to more undocumented students and making it easier for them to apply for state financial aid, in sharp contrast to Republican-led states.The latest move by a higher education system with international visibility could be emulated by other universities that market themselves as immigration sanctuaries.
Biden And DHS Secretary Claim 'White Supremacy' Is The Greatest US Terror Threat -- If you were ever confused as to why the political left has been using the words 'white supremacy' every time they mention conservative ideals in their rhetoric, then you might just be a regular person trying to think logically. After all, millions of minorities are also conservative, libertarian and pro-constitution. Millions of minorities are anti-socialist, pro-2nd Amendment and pro-meritocracy. The accusation of white supremacy simply doesn't apply.Yet, this narrative continues. Why? It's called social conditioning – Tell a big enough lie, tell it thousands of times, and eventually the public might subconsciously associate conservatives or conservative principles with racism even if the claim is provably false. They will even suggest a conservative is a “white supremacist” despite the fact that he or she is not white. It's confusing because it defies all reason, but that's the point. You cannot reason with zealotry. You cannot argue facts with mental patients. Their goal is chaos; their strategy is to use madness to bewilder their victims.Recently we showcased a Department of Homeland Security propaganda program uncovered through FOIA which was intended to use a choose-your-own-adventure style narrative to teach the public how to identify “radicalized” domestic threats. The majority of dangerous persons provided in sample cases were people espousing conservative values. In other words, the DHS is seeking to actively target conservatives as the primary terror threat in the US. This revelation comes just as the White House launches a domestic terror tour, with Joe Biden proclaiming in an address to the exclusively black Howard University in Washington DC that:“The most dangerous threat to our homeland is white supremacy … and I’m not just saying this because I’m at a black HBCU.”
Biden admin launches $11B program to electrify rural America - The Agriculture Department is kicking off the awards process for nearly $11 billion in funding to electrify and decarbonize rural parts of the United States.Drawing from two pots of money enacted in the Inflation Reduction Act, the funding is available for a sweeping set of potential projects, from new or retrofitted transmission lines to hydrogen projects to carbon capture. It is the largest single investment in rural electrification since the New Deal, according to the Biden administration. “This is about renewable energy systems. It’s about zero-emissions systems. It’s about carbon capture systems,” Agriculture Secretary Tom Vilsack told reporters on a call Monday.The funding is part of the administration’s strategy to use hundreds of billions of dollars in the IRA and the 2021 bipartisan infrastructure package to achieve its energy and climate objectives. More than $435 billion in private-sector investments has been announced following passage of those laws and the CHIPS and Science Act, the White House says.Top administration officials said the financial support shows President Joe Biden’s commitment to rural America. Last week, the Energy Department announced $50 million in clean energy grants for rural communities.“Investing in rural America is absolutely central to President Biden’s Investing in America agenda,” John Podesta, senior adviser to the president for clean energy innovation and implementation, said on the call. “It’ll make families healthier by cutting harmful pollution, and because clean energy is increasingly cheap energy, it’ll help families, farms and small businesses across rural America save money.”The announcement comes as large swaths of rural America continue to lean Republican. Many lawmakers that represent rural districts, for example, recently tried to repeal an EPA regulation to define the reach of the Clean Water Act, a regulation that’s been hotly contested for years and generates fierce opposition from agricultural communities. The lawmakers fell short of a veto-proof majority. It remains unclear how much the electrification funding might shift local politics. Recent polling from the Pew Research Center shows that energy and climate change rank lower as priorities than issues like the economy and health care for many Americans. Also, shifting the electricity system of rural America faces numerous challenges. Transmission, for example, has long been difficult to permit and construct, with some projects taking a decade or longer. Renewable energy can take up large amounts of land, creating potential conflicts with landowners and farmers.Carbon capture technology also has not been used widely in the power sector, and existing carbon dioxide pipeline proposals are creating pushback in rural areas of the Midwest.Even so, EPA’s major proposal last week to regulate emissions in the power sector relies heavily on carbon capture and storage (CCS).
Joe Manchin pulls support for Energy nominee Jeff Marootian -Senate Energy Committee Chairman Joe Manchin (D-W.Va.) has canceled a scheduled hearing and pulled his support for President Biden’s nomination for a key renewable energy post, the latest salvo between him and the White House over fossil fuel policy.The Senate panel was set to consider the nomination of Jeff Marootian for assistant secretary for the Office of Energy Efficiency and Renewable Energy on Wednesday, but the vote has been removed from the committee’s agenda.“While I supported Mr. Marootian’s nomination in December, since then the office he’s been nominated to lead has proposed stove efficiency rules that I’ve raised concerns about,” Manchin said in a statement to The Hill. “While I appreciate that these rules would only apply to new stoves, my view is that it’s part of a broader, Administration-wide effort to eliminate fossil fuels. For that reason, I’m not comfortable moving forward with Mr. Marootian at this time.” Biden nominated Marootian, an adviser to Energy Secretary Jennifer Granholm, last year, renominating him in January after his nomination made it out of committee but was never brought to the full Senate.Granholm told the House Appropriations Committee in March the Energy Department’s proposed regulations for new gas stoves would not affect half of the gas stove models that are on the market.“The gas stoves that would be impacted are … the most expensive gas stoves,” she said, adding that these stoves can have oval-shaped burners that release an excess amount of natural gas. “This does not impact the majority, and it certainly doesn’t say that anybody who has a gas stove would have their gas stove taken away. … There’s no ban on gas stoves. I have a gas stove. It is just about making the existing electric and gas stoves and all the other appliances more efficient.”
Manchin blocks DOE nominee over gas stoves - Senate Energy and Natural Resources Chair Joe Manchin scrapped a planned vote on a prominent Department of Energy nominee Wednesday morning. The West Virginia Democrat pulled Jeff Marootian, nominee to lead the Department of Energy’s Office of Energy Efficiency and Renewable Energy, from a markup agenda because of the agency’s proposed rules on gas stoves. “While I appreciate that these rules would only apply to new stoves, my view is that it’s part of a broader, administrationwide effort to eliminate fossil fuels,” Manchin said. “For that reason, I’m not comfortable moving forward with Mr. Marootian at this time.” DOE has proposed efficiency regulations, led by the EERE office, on new stoves that would reduce energy use by about 30 percent for both gas models and for electric smooth-top models. The standards would disqualify about 50 percent of gas stoves on the market today, something that has exasperated Republicans and some moderate Democrats. Manchin supported Marootian in December, but the nominee failed to secure full Senate confirmation before the Congress closed. Now, his bid to join the administration appears all but dead. Manchin did support David Crane’s nomination for undersecretary of Energy for infrastructure. The current director of DOE’s Office of Clean Energy Demonstrations passed the committee 13-6 with the support of all Democrats and three Republicans. Crane is a former CEO of Climate Real Impact Solutions and NRG Energy Inc., and has served on the board of multiple energy companies. The committee also approved a long slate of bills to augment the country’s domestic uranium industry and address a number of natural resource concernsThe “Nuclear Fuel Security Act,” S. 452 — led by Manchin, ranking member John Barrasso (R-Wyo.) and Idaho Republican Jim Risch— passed by voice vote.The bill would authorize $3.5 billion for DOE to kick-start the domestic uranium enrichment and conversion industry, which has been mostly nonexistent for decades.Russia currently supplies about 20 percent of the low-enriched uranium used to power American nuclear reactors and controls the only commercial supply of high-assay, low-enriched uranium that many of the advanced reactors coming online in the coming years will need.The bipartisan bill represents a desire to reduce foreign dependence as much as possible by bolstering the domestic uranium industry with significant public funding. An amendment from Barrasso would reduce Russian uranium imports over the next five years.“We need to give America’s nuclear fuel suppliers market certainty,” said Barrasso. “For decades, Russia has undermined America’s nuclear fuel suppliers with unfair trade practices.”Committee members also passed Manchin and Barrasso’s “America’s Outdoor Recreation Act,” S. 873, which was originally introduced last Congress but didn’t make the cut in the final omnibus spending package.The bill would enhance existing recreation sites on federal lands, promote public-private partnerships to revamp campgrounds, and provide financial and technical assistance to businesses in communities close to recreation areas.
Manchin aims to bring energy infrastructure permitting reform bill to Senate floor for vote by August - Sen. Joe Manchin, D-W.Va., aims to bring bipartisan permitting reform legislation to the Senate floor for a vote by July 31, the tentative start of the chamber’s summer recess, he said Thursday. “That's pretty aggressive. We're going to get it done,” Manchin, chairman of the Senate Energy and Natural Resources Committee, said during a hearing on permitting reform. “We can get together much quicker if we’re all in this, and I think we are. We want this done and everybody wants it done.” Any permitting reforms must apply equally to all energy sources, said Wyoming Sen. John Barrasso, the energy committee’s top Republican. Several permitting reform bills have been introduced in the Senate. They include Manchin’s Building American Energy Security Act, which is similar to a bill he introduced last year, and the SPUR Actand RESTART Act offered separately by Barrasso and Sen. Shelley Moore Capito, R-W.Va., ranking member of the Senate Environment and Public Works Committee. Sen. Tom Carper, D-Del., chairman of the environment committee, plans to introduce a permitting bill, possibly this month. Also, the House in March passed permitting reform legislation that was included in a debt limit bill. “We all need to sit down and negotiate in good faith – putting politics aside – to craft the Bipartisan Permitting Reform Bill,” Manchin said, noting he plans to hold sector-specific energy permitting hearings to inform that effort. White House senior clean energy advisor John Podesta on Wednesday said the Biden administration supports Manchin’s bill. However, there are “yawning gaps” between Republican and Democratic permitting reform priorities, ClearView Energy Partners said in a client note Wednesday. “We do not observe many areas of overlap, and even fewer areas of real consensus between the partisan proposals,” the research firm said. “We think that Podesta’s speech clearly indicates that permitting reform is on the table, but agreeing to terms from such vastly different starting points remains a challenge.” Pioneer Public Affairs, a consulting firm, echoed ClearView’s analysis. “There is substantial – if not overwhelming – agreement that some changes to various permitting processes are needed; however, there is no consensus or general agreement on where to focus to make the biggest difference,” Pioneer said in a memo Wednesday.
Granholm defends support for gas pipeline, citing energy security - Energy Secretary Jennifer Granholm on Thursday defended her support for moving forward with the Mountain Valley Pipeline, an Appalachian natural gas project opposed by environmental activists — including several who disrupted POLITICO’s energy summit in D.C.Granholm endorsed the pipeline in a recent letter to the Federal Energy Regulatory Commission — the federal agency that regulates the nation’s sprawling pipelines — arguing the controversial project is needed for U.S. energy security, but is also crucial to transitioning to a zero-emissions power system. One of pipeline’s big champions is Senate Energy Chair Joe Manchin(D-W.Va.), who provided the crucial vote for President Joe Biden’s climate bill last year.“We know that there is a real desire to have energy security in areas where there’s huge demand for power,” Granholm said during the summit. “We also know that we have got to accelerate investment in clean [energy].”The remarks underscore the Biden administration’s balancing act in meeting its goals of ending carbon pollution from fossil fuels while acknowledging the continued role of the oil and gas industry in the economy.The secretary’s remarks were disrupted by a handful of protesters who rushed toward the stage, shouting variations of “no MVP” and “Granholm, you are killing me.”.In response to a later question on the Biden administration’s support for sending natural gas abroad to help U.S. allies cope with market disruptions from Russia’s invasion of Ukraine, Granholm acknowledged the trade-offs.“To the point of the protesters here, these are really hard decisions,” she said. “We are in this transition. We want to be able to ensure that our allies can turn on the lights.”The secretary said the U.S. has an abundance of natural gas and is going to be “a friend” to its allies, while also working with them to accelerate the transition to clean energy sources.
Markey bill would restore ban on US fossil fuel exports - Sen. Ed Markey (D-Mass.) introduced legislation Thursday that will reimpose a ban on U.S. fossil fuel exports, citing environmental hazards and possible impacts on domestic prices. The measure would “help prioritize American consumers, protect our climate and promote environmental justice and put the United States on a path to self-sufficiency through domestic clean energy production,” Markey said Thursday at a press conference on Capitol Hill, flanked by supporters of the bill from communities in the Rio Grande Valley and the Gulf Coast. Markey disputed the idea that the ban would result in higher prices for American consumers, pointing to International Energy Agency data indicating that increased U.S. exports were accompanied by higher domestic prices for natural gas. “So ordinary families have to pay more on their natural gas bill, because the big oil and gas companies want to sell it overseas, but that leaves less here, which drives up the price for natural gas for people who are trying to heat their homes,” he said. Then-President Obama signed a bill in 2015 lifting a four-decade restriction on U.S. oil exports. Since the Russian invasion of Ukraine last February, U.S. exports of liquefied natural gas (LNG) in particular have surged as European nations end their imports of Russian oil. Reps. Adriano Espaillat (D-N.Y.) and Yvette Clarke (D-N.Y.) introduced corresponding legislation in the House. The bill is likely doomed in the GOP-majority House, but it marks the latest collaboration between Markey and climate-focused House Democrats aimed at promoting aggressive climate action.
Biden infrastructure adviser: Speed up clean energy permits - Count President Joe Biden’s senior infrastructure adviser Mitch Landrieu among the administration officials eager to see action to speed up the process for approving energy projects.Landrieu, a former New Orleans mayor who’s leading the White House coordination of the huge bipartisan infrastructure law, stressed the administration’s desire to overhaul the process as permitting talks are heating up on Capitol Hill.Republicans are hopeful that they might be able to include permitting reform as part of a deal to raise the debt ceiling, and Sen. Joe Manchin (D-W.Va.) wants to advance his permitting overhaul effort this summer.“When you’re trying to build new things and you’re trying to build things fast, you got two major issues that you’re working through,” Landrieu said Friday at a White House press briefing. “One of them is permitting, and one of them is workforce. And of course from the beginning, we have been working on getting things built faster and permitting things faster.”That includes a desire to move faster on clean energy, Landrieu said.Biden supports Manchin’s legislation that would overhaul the permitting process. The West Virginia Democrat said this week that he wants to get a permitting reform bill on the Senate floor before the summer recess.“The president continues to support that bill,” Landrieu said Friday. “On the executive branch side, we’re doing everything we can to speed up how we actually greenlight projects.”White House senior adviser John Podesta, who’s leading the rollout of the climate and clean energy law enacted last year, also urged lawmakers this week to negotiate a deal to speed up the sometimes cumbersome permitting process. But Podesta stressed that he did not want the permitting talks to be tied to the debt ceiling negotiations.“We think everything needs to be delinked from the debt ceiling fight,” Podesta said Wednesday.Asked Friday about permitting reform and negotiations to raise the debt ceiling, Landrieu said, “They’re not necessarily connected.”Landrieu also defended the Biden administration’s draft climate rules for power plants that EPA unveiled Thursday.“Everything requires a balance,” Landrieu said in response to criticisms from industry that the rules could raise energy prices and threaten the energy supply.“With everything that we do, somebody will say you’re going too fast. Somebody will say you’re going too slow,” Landrieu said. “Our job is to try to get it just right.”
Editorial: Get rid of red tape hurting rebuilding of America - nola.com - The words that rarely come together in a sentence, “Congress,” “agree,” “White House,” now have a chance. That is because of the proposal by a prominent Democratic senator, with the approval of the Biden administration, to push reasonable reductions in the endless permitting and reviews that hobble building projects. For U.S. Sen. Joe Manchin, D-W.V., the bill is a way to get some oil and gas projects through the labyrinth of rules and reviews that are often mobilized by environmentalists and grassroots activists to delay projects for years. The Trump administration worked to make accommodations in environmental reviews amid considerable agreement that today’s process is literally fossilized, in the sense that fossil fuel projects are so often targeted by lawsuits. What’s in it for the White House? Delays can hobble cleaner-energy projects too. And construction of new transmission lines for electricity, in particular, are vital to achieving the emissions reductions President Joe Biden wants. “Right now, the permitting process for clean energy infrastructure, including transmission, is plagued by delays and bottlenecks,” Biden’s “climate czar” John Podesta told a Washington audience. “We’ve got to fix this problem now.” Republicans ought to be pushing for agreement to this rare outburst of common sense in the Biden administration when it comes to energy. Environmental groups are already crying betrayal, but this is not an end to environmental reviews. The nation needs more energy of all types, not over-lawyered rules and regs that Podesta said, quite accurately, can bog down needed projects for years before a shovel of dirt is turned. We think natural-gas pipelines, a cleaner-burning fuel, should be expedited where possible.
Biden's got a plan for ramping up energy transmission -Last week, the White House released a comprehensive plan that could help fix America’s dysfunctional energy transmission system. The aim is to break down the barriers that are holding back the buildout of the truly massive amount of high-voltage power lines the country needs to connect clean energy projects to the grid and decarbonize the nation’s electricity supply.Now the question is how much of the plan can be passed through a politically fractured Congress — and if the answer is none, how much of the plan can be pushed through via executive actions by the Biden administration.The stakes are enormous — and the deadlines are looming. Over the past decade, the growth of the U.S. transmission grid has slowed from 2,000 miles per year between 2012 and 2016 to just700 miles per year from 2017 to 2021, according to the Department of Energy. Large-scale transmission projects can face decades of disputes over permitting and cost-sharing. New wind and solar projects currently face yearslong backlogs and rising grid-upgrade costs due to the lack of adequate transmission capacity.If the U.S. can’t rapidly speed grid buildout to accommodate this new clean power, the country won’t be able to realize the majority of the decarbonization potential unlocked by the Inflation Reduction Act, according to a comprehensive study led by Princeton University researchers.“Given that we have to increase electric transmission 60 percent over the next seven years — which means building transmission lines at twice our current pace — we have to fix this problem now,” John Podesta, senior advisor to the president for clean energy innovation and implementation, said in a May 10 speech in Washington, D.C. introducing the new plan. The White House plan includes a set of priorities it’s asking Congress to take up in permitting reform legislation, including a host of proposals to streamline the processes for siting and permitting transmission lines and connecting clean energy projects to the grid. It also incorporates steps being taken by federal agencies independent of congressional action, including a streamlined process for interagency review and a commitment to reduce the time for federal permitting and environmental review of proposed transmission projects to no more than two years.But the fixes won’t be easy. The mechanisms of delay for transmission buildout “are pervasive at every level of government — federal, state, and local,” Podesta said.
Podesta’s meetings: Bill Gates, BP execs and Willow foes - President Joe Biden’s climate adviser John Podesta hosted Bill Gates, BP’s CEO and former Playboy CEO Christie Hefner at the White House, according to recently released visitor logs.Podesta, who’s leading the administration’s rollout of the massive climate law enacted last year, has held a steady stream of confabs with influential figures in the climate and energy world. Those meetings include sit-downs with executives from fossil fuel and renewable energy companies, philanthropists, environmentalists, and critics of a major drilling project in Alaska.The visitor logs released by the White House — which detail officials’ meetings through the end of January this year — reveal which energy and environmental insiders scored meetings with Biden’s top climate officials as the administration was making its Alaska drilling decision, drafting new power plant rules and finalizing details of the climate law.In December and January, Podesta huddled with some well-known figures in climate policy. Biden’s climate adviser hosted a trio of BP executives in December. Podesta met with BP CEO Bernard Looney; David Lawler, chairman and president of BP America; and Mary Streett, a BP senior vice president.The White House and BP declined to comment on what was discussed in the meeting. Looney appeared this week at the Economic Club of Washington, D.C., where he was asked about humans’ role in climate change. “I think the science is very clear,” Looney said. There is “a connection between our activities on this planet and climate, and that has not been in dispute in our company.”The London-based oil giant issued a statement last year supporting the passage of the climate law that Democrats have dubbed the Inflation Reduction Act. BP “commends Congress for passing the Inflation Reduction Act,” the company said. “This historic legislation” will help BP “and America reach their shared ambition to be net zero by 2050.”Podesta sat down in early December with representatives from major philanthropic organizations focused on climate change, among others, the records show. The crowd for the Dec. 2 meeting consisted of Breakthrough Energy’s Mike Boots, the David and Lucile Packard Foundation’s Nancy Lindborg, the ClimateWorks Foundation’s Helen Mountford, the Rockefeller Brothers Fund’s Michael Northrop, the Open Society Foundations’ Tom Perriello, the William and Flora Hewlett Foundation’s Jonathan Pershing, the Omidyar Network’s Gretchen Phillips, Corridor Partners’ Kathleen Welch, and Bloomberg Philanthropies’ Antha Williams.Podesta last June was named board chair of the ClimateWorks Foundation, whose president is Mountford.Boots, who led the White House Council on Environmental Quality under then-President Barack Obama, returned the following week for another meeting with Podesta. But that time, he brought Bill Gates, the Microsoft co-founder and founder of Breakthrough, along with Aliya Haq, the group’s head for United States policy.None of the organizations with representatives at the meetings returned requests for comment.Podesta also met with Solar Energy Industries Association President Abigail Ross Hopper and SEIA Senior Vice President of Policy Sean Gallagher, along with leaders from a handful of solar energy companies. The Dec. 7 meeting included Sunrun’s Evan Dube, Solv Energy’s George Hershman, Pine Gate Renewables’ Steven Levitas, Sunnova Energy’s Meghan Nutting and Solar Stewards’ Dana Redden.SEIA did not respond to requests for comment. The Biden administration has taken a number of steps recently to boost the solar industry, such as acting last year to pause tariffs on imported solar equipment for Southeast Asia.Congress recently voted to overturn that action and reimpose the tariffs, but Biden is expected to veto the measure.
How SCOTUS gutting Chevron could haunt Republicans - The Supreme Court’s revisit of a key legal defense for federal environmental rules may not just spell trouble for Biden’s climate ambitions — a Republican president with different objectives could face similar obstacles.A future president keen to walk back climate regulations could find their hands tied by the absence of the Chevrondoctrine, a 40-year-old legal precedent that says courts should defer to agencies’ reasonable interpretation of ambiguous statutes.The Supreme Court has signaled that it could do away with — or at least narrow — its long-standing approach to agency deference as soon as next year. “It’s like a judicial power grab,” said Mona Dajani, a partner at the law firm Shearman & Sterling LLP. Should the Supreme Court overrule Chevron, the outcome of litigation over federal rules would “be based on whatever the judge hearing the case decides,” she continued. “And then it becomes very difficult to even deregulate.”During Donald Trump’s presidency, EPA and other federal agencies rolled back scores of Obama-era environmental rules. But deregulatory efforts sometimes take the form of new, narrower agency rules that can be subject to their own legal challenges — as the Trump administration encountered repeatedly over the former president’s four years in office.Although Chevron has recently fallen out of favor with conservatives, even Republican administrations can benefit from a judicial system that is inclined to say that federal agencies, not courts, are best-equipped to interpret their congressionally delegated authority to offer a new environmental regulation — or wipe one from the books, said Pat Parenteau, professor emeritus at the Vermont Law and Graduate School.He pointed specifically to the Trump administration’s efforts to whittle down rules governing power plant emissions and states’ roles in water permitting decisions — both of which suffered legal stumbles before they were revisited by President Joe Biden’s EPA. “I think there’s a fair chance Chevron deference would have upheld both of those Trump rollbacks,” Parenteau said. “So why not keep it around?”The question of whether Chevron should be overturned arises in Loper Bright Enterprises v. Raimondo, a dispute over a NOAA Fisheries rule requiring herring fishing vessels to pay for third-party monitoring of their hauls. A lower court upheld the rule on Chevron grounds, and the fishing industry petitioned the nation’s highest bench to reverse the decision.In a May 1 order, justices said they would take up the case — but not the question of whether NOAA Fisheries has the statutory authority to create a rule requiring the fishing industry to pay the salaries of on-board monitors. They instead limited their review to the question of whether they should overrule or clarify Chevron’s reach.The case, which is expected to be argued this fall and decided by summer 2024, follows another recent case in which the Supreme Court declined an opportunity to overturn Chevron. In the months since that ruling, Justice Neil Gorsuch, one of six members of the court’s conservative majority, rebuked his colleagues for leaving Chevronavailable to the lower courts.
COVID emergency orders are among `greatest intrusions on civil liberties,' Justice Gorsuch says (AP) — The Supreme Court got rid of a pandemic-related immigration case with a single sentence.Justice Neil Gorsuch had a lot more to say, leveling harsh criticism of how governments, from small towns to the nation’s capital, responded to the gravest public health threat in a century. The justice, a 55-year-old conservative who was President Donald Trump’s first Supreme Court nominee, called emergency measures taken during the COVID-19 crisis that killed more than 1 million Americans perhaps “the greatest intrusions on civil liberties in the peacetime history of this country.” He pointed to orders closing schools, restricting church services, mandating vaccines and prohibiting evictions. His broadside was aimed at local, state and federal officials — even his colleagues.“Executive officials across the country issued emergency decrees on a breathtaking scale,” Gorsuch wrote in an eight-page statement Thursday that accompanied an expected Supreme Court order formally dismissing a case involving the use of the Title 42 policy to prevent asylum seekers from entering the United States.The policy was ended last week with the expiration of the public health emergency first declared more than three years ago because of the coronavirus pandemic.From the start of his Supreme Court tenure in 2017, Gorsuch, a Colorado native who loves to ski and bicycle, has been more willing than most justices to part company with his colleagues, both left and right.He has mainly voted with the other conservatives in his six years as a justice, joining the majority that overturned Roe v. Wade and expanded gun rights last year.But he has charted a different course on some issues, writing the court’s 2020 opinion that extended federal protections against workplace discrimination to LGBTQ people. He also has joined with the liberal justices in support of Native American rights. When the omicron variant surged in late 2021 and early 2022, Gorsuch was the lone justice to appear in the courtroom unmasked even as his seatmate, Justice Sonia Sotomayor, who has diabetes, reportedly did not feel safe in close quarters with people who were not wearing masks. So Sotomayor, who continues to wear a mask in public, did not take the bench with the other justices in January 2022. The two justices denied reports they were at odds over the issue.The emergency orders about which Gorsuch complained were first announced in the early days of the pandemic, when Trump was president, and months before the virus was well understood and a vaccine was developed.
US court halts ruling blocking Obamacare for some preventive healthcare - (Reuters) - A U.S. appeals court has temporarily halted a federal judge's ruling that struck down the Affordable Care Act's mandate requiring insurers to cover preventive care, the New York Times reported on Monday. The ruling stems from one of several legal challenges Republicans have brought against the 2010 healthcare law, former President Barack Obama's signature domestic achievement popularly known as "Obamacare." U.S. District Judge Reed O'Connor in March struck down the Affordable Care Act's mandate that health insurance plans cover preventive care, including screenings for certain cancers and pre-exposure prophylaxis against HIV, or the so-called PrEP mandate, at no cost to patients. Reed ruled that the PrEP mandate violated a federal religious freedom law and that other no-cost preventive care mandates were based on recommendations by an illegally appointed task force. The U.S. Fifth Circuit Court of Appeals in New Orleans put Reed's decision on hold, the Times reported, leaving the mandate in place for now.
Hill Democrats urge Supreme Court to preserve CFPB's funding structure In a brief filed Monday with the U.S. Supreme Court, more than 140 current and former Democratic lawmakers defended the constitutionality of the Consumer Financial Protection Bureau's funding structure. The legislators, who include key architects of the 2010 law that established the CFPB, urged the Supreme Court to overturn a high-stakes ruling last year by the 5th U.S. Circuit Court of Appeals. The appeals court found that the bureau's funding, which comes from a portion of the Federal Reserve's earnings, violates the Constitution's separation of powers doctrine. In their friend-of-the-court brief, the Democratic lawmakers argued that the CFPB's funding structure aligns with how Congress wielded its appropriations powers in the early years of the United States. That kind of originalist argument has long been popular with conservative jurists. The legislators wrote that it has been routine since 1789 for Congress to fund programs through assessments, fees and other agency revenues. "By appropriating funds on a standing basis, rather than year by year, Congress matched the CFPB's funding structure to the approach that it had already determined effective for other financial regulators, some going back over 150 years — but imposed more constraints on the CFPB," the Democratic lawmakers wrote. The brief cited four ways in which the CFPB is subject to greater constraints, or more oversight, than the Office of the Comptroller of the Currency. Like the CFPB, the OCC is not funded through the annual congressional appropriations process. But the CFPB, unlike the OCC, is subject to an annual dollar limit on its budget, the Democratic lawmakers noted. And CFPB regulations are subject to a potential veto by the Financial Stability Oversight Council, which is not the case for OCC regulations
Feinstein’s return leaves her party on edge - Dianne Feinstein has taken on a noticeably lighter schedule since she came back from California. She appears in the Senate only at committee hearings or on the floor when her vote is essential. Her party is holding its collective breath as the 89-year-old returns. As relieved as Democrats are to have her back to break the logjam on party-line judicial nominees that her absence created, they’re loath to openly discuss her condition beyond generic well wishes. Fellow senators say they aren’t hearing much from her at all. “We need her in committee and on the floor,” Judiciary Committee Chair Dick Durbin (D-Ill.) said, alluding to the need for Feinstein to vote on judicial nominees who lack any GOP support. “We’re doing our best to be sensitive to her medical condition.” Sen. Jon Tester (D-Mont.) spoke for many of his colleagues when he said: “She’s been ill and she’s elderly. And I really shouldn’t be talking, actually, because it’s just a difficult situation.” The situation grew grimmer on Thursday, after the New York Times reported, and a spokesperson later confirmed, that Feinstein’s shingles had caused a number of complications that contributed to her evident visible decline in faculties. Those complications have also necessitated the use of a wheelchair while she’s at work. But the diminished capacity of the senior senator for the nation’s most populated state was already apparent: Once a leading voice against gun violence, she skipped a recent Democratic Caucus meeting on guns. She has not attended regular caucus lunches or any committee activity where her votes are not required. The fellow Democrats who asked her to resign during her prolonged absence haven’t recanted, but her committee votes and floor presence ahead of a high-stakes legislative summer have quieted some of their arguments and helped bottle up further such calls. Some, like Rep. Alexandria Ocasio-Cortez (D-N.Y.), had cited the effect of Feinstein’s absence on judicial confirmations in calling for her to leave before her term expires next year. “If she couldn’t have come back, that’s a different discussion,” said Rep. Mark DeSaulnier (D-Calif.), who himself had a health scare recently after a running accident. “She’s making the votes now. So we’re not holding up appointments that are really important. … She’s here for what’s going to happen in the next couple of weeks.”
Khanna reups call for Feinstein to resign after return to Senate: ‘It’s painful to watch’ - Rep. Ro Khanna (D-Calif.), the first member of Congress to call for Sen. Dianne Feinstein (D-Calif.) to resign, doubled down on his request this week following new details about her health, saying, “it’s sad for anyone to see.” In an interview with MSNBC’s Alex Wagner, the progressive congressman applauded the California senator’s professional accomplishments but emphasized that he believes her ongoing health concerns are disqualifying at this point. “First, let me say, I admire her career. She has had an extraordinary career. But it’s sad for anyone to see and it’s sad for her own colleagues to see,” Khanna said in the televised appearance Thursday. Khanna’s public comments came after a much-discussed story in The New York Times that brought additional scrutiny to the 89-year-old senator. The piece revealed more medical issues associated with her shingles recovery, including an encephalitis diagnosis few people knew about, reigniting a debate about how the veteran senator should proceed with her career. “I’m hopeful that people who are close to her can talk to her and just say, ‘Look, end your service with dignity. Step aside, let the governor appoint someone,’” Khanna said. Feinstein’s health has been a major focus on Capitol Hill, with some Democrats urging her to step down so that matters on the Senate Judiciary Committee such as judge vacancies can be addressed while the party is in power. Progressives have particularly been calling for her resignation, swatting off accusations that such requests are sexist or ageist. Khanna said it’s his “hope” that she makes that decision for “her own dignity.”
GOP senators: Trump’s legal problems won’t stop him from winning nomination -- Senate Republicans say former President Trump’s growing legal problems are unlikely to affect his march to the GOP nomination, though they fear the jury verdict finding him liable for sexual abuse could be a serious obstacle to retaking the White House. A New York jury’s finding that Trump sexually abused E. Jean Carroll in the mid-1990s is more serious and potentially more damaging to his standing with swing voters than the former president’s legal battle with Manhattan District Attorney Alvin Bragg, they said. But even Trump’s most vocal GOP critics predict it won’t injure him seriously with Republican primary voters, who have stood by Trump through many storms of criticism and controversy. “I don’t know that it changes his lead in the polls. I think that’s unlikely,” Sen. Mitt Romney (R-Utah) said of last week’s verdict. “I think he’ll continue to lead in the Republican primary polls. “I’ve been predicting that he will the nominee for a long time. I continue to predict that,” he added. Senate Republican Whip John Thune (S.D.), who has criticized Trump at times, also said the $5 million verdict against the former president for sexual abuse and defamation won’t make much difference to Republican primary voters. “I think people’s views of him — particularly among his hardcore supporters — are baked in,” he said. But Thune warned that a jury verdict finding Trump liable of sexual abuse could further deteriorate his standing with swing voters. “From a short-term perspective, maybe it works for him. But in the end, to win a general election, you got to win the voters in the middle. And I think that kind of rhetoric makes that more challenging,” he said. Trump showed no hint of contrition after the jury announced its verdict, instead mocking Carroll at a CNN town hall the next day in New Hampshire. Asked by CNN’s Kaitlan Collins about voters who think the verdict should disqualify him from serving another term as president, Trump quipped: “Well, there weren’t too many of them because my poll numbers came out. They went up, OK?”
Anti-abortion leaders worry they may have to oppose Trump if he doesn’t back national ban - Top anti-abortion leaders are continuing to lobby Donald Trump on a 15-week ban they believe should be the standard for the Republican Party. Their efforts come even as Trump has not only refused to embrace a ban but has framed some abortion legislation as electorally toxic. And it is being driven by a desire to avoid the politically uncomfortable spectacle of having to rebuke the man who not only delivered their movement its greatest win, but is likely to be the GOP’s presidential nominee. “We will oppose any presidential candidate who refuses to embrace at a minimum a 15-week national standard to stop painful late-term abortions while allowing states to enact further protections,” Marjorie Dannenfelser, president of SBA Pro-Life America, has said of the organization’s 2024 strategy. After a meeting Trump held earlier this month with Dannenfelser, Family Research Council President Tony Perkins and Sen. Lindsey Graham (R- S.C.), Dannenfelser called the conversation “terrific” and described Trump’s presidency as “the most consequential in American history for the pro-life cause.” Two people with knowledge of the meeting said the anti-abortion leaders showed Trump polling on the issue, and they left under the impression that Trump has not ruled out supporting a national law. But the former president has, so far, taken credit for the overturning of Roe v. Wade while declining to tie himself to any specific prospective future abortion policy — save one that includes exemptions for victims of rape and incest and cases where the health of the mother is at stake. And while leaders of the movement are continuing their push to get him behind federal legislation, some are acknowledging it might not happen this cycle. “I think we’re likely to land at a message somewhere along the lines of: ‘While we support federal legislation, unapologetically, the reality is, most of the action in the near term will take place at the state level, as well as defunding Planned Parenthood, and a comprehensive ban on taxpayer funding, all of which will build momentum for federal legislation, and pivoting to the fact that Democrats are the real extremists,” said Ralph Reed, a longtime Christian conservative activist and chairman of Faith and Freedom Coalition, which supports the 15-week abortion ban. The effort to bring Trump to a 15-week ban illustrates the larger difficulties the anti-abortion movement has confronted early in the 2024 GOP primary season, with at least one prominent Republican candidate causing headaches as well.
Poll finds Trump beating Biden by 7 points, DeSantis tying president in matchup -Former President Trump leads President Biden by a 7-point margin in a new survey shared Friday with The Hill from Harvard CAPS-Harris Poll. Separately, the poll found Biden and Florida Gov. Ron DeSantis (R) deadlocked in a tie when those surveyed were asked who they preferred in a head-to-head matchup. The results coupled together point to the apparent strength of Trump in the GOP primary as DeSantis gets set to enter the race, as early as next week. Trump had led DeSantis in a number of polls of GOP voters by double digits. DeSantis has made the case that he is the stronger general election candidate to face Biden, but the new poll raises questions on whether that’s the case. The survey found 47 percent of respondents said they would vote for Trump if the 2024 election was today and Trump and Biden were the political parties’ respective candidates. Forty percent backed Biden, while 13 percent said they did not know or were unsure. Forty-two percent of respondents picked Biden and and equal percentage picked DeSantis in that matchup. Sixteen percent said they did not know or were unsure.
FBI repeatedly misused surveillance tool, unsealed FISA order reveals - The FBI repeatedly misused a surveillance tool in searching for foreign intelligence to use in cases pertaining to the Jan. 6, 2021, insurrection and 2020 racial justice protests, according to an April 2022 court order publicly released Friday. The order, which was released by the U.S. Foreign Intelligence Surveillance Court, is significantly redacted but reveals thousands of violations of Section 702 of the Foreign Intelligence Surveillance Act, which allows the federal government to collect communications between certain targeted foreign individuals outside the U.S. The court has legal oversight of the U.S. government’s espionage activities. FBI officials said the violations came before corrective measures the agency took starting in summer 2021 and continuing into last year. But the release could create obstacles as the FBI seeks to have its warrantless surveillance program receive reauthorization from Congress before it expires at the end of the year. It could also expose the agency to heightened scrutiny amid recent GOP attacks on its activities. The Office of the Director of National Intelligence released the report Friday to promote transparency, but members of Congress originally received the order last year. The FBI’s program maintains a database of intelligence that U.S. agencies can search, but the FBI must have a foreign intelligence purpose or be looking for evidence of a crime to conduct a search. The order shows the FBI turned to the database to look into someone it believed was present at the Capitol during the Jan. 6, 2021, attack, an inquiry that did not have any “analytical, investigative or evidentiary” purpose.
Tensions flare in ‘weaponization’ panel hearing with sidelined FBI agents - Republicans and Democrats battled during a tense hearing Thursday over three FBI agents who Republicans say were retaliated against for blowing the whistle on bias at the agency— and who Democrats argue the GOP is using to legitimize the Jan. 6, 2021, attack on the U.S. Capitol. GOP lawmakers accused the FBI of retaliating against “truth tellers” by revoking their security clearances because they espoused conservative views and took their concerns to Republicans on the House Judiciary Select Subcommittee on the Weaponization of the Federal Government. “Politics is driving the federal agencies,” said Jim Jordan (R-Ohio), chairman of both the Judiciary Committee and the subcommittee, alleging that the government targets citizens who are not politically correct. “What’s just as frightening is if you’re one of the good employees who come forward to talk about the targeting, you become the target,” he added. Democrats countered by arguing that the GOP, in the words of Rep. Linda Sánchez (D-Calif.), was using the hearing as “a vehicle to legitimize the events of Jan. 6 and the people who perpetrated it.” They questioned the FBI agents’ credibility and whether they should be considered whistleblowers, sparred with Republicans over access to documents and materials, and accused the panel of being a tool for former President Trump. “This select committee is a clearing house for testing conspiracy theories for Donald Trump to use in his 2024 presidential campaign,” said Del. Stacey Plaskett (V.I.), the panel’s ranking Democrat. “You all have employment grievances. That doesn’t make you whistleblowers,” Rep. Gerry Connolly (D-Va.) said.
Marjorie Taylor Greene says Hunter Biden's prostitutes may testify before Congress - The House Oversight Committee is in discussions to bring foreign and American prostitutes who allegedly cavorted with Hunter Biden before Congress, The Post has learned. “We’re going to track down these women and talk to them and if there is a credible reason that we need to bring them in front of the Oversight Committee then absolutely we will do that. Especially when it involves our national security,” said Rep. Marjorie Taylor Greene (R-Ga.). “I’ve been talking about it with [committee] Chairman [James] Comer and we’re already working in that direction.” Greene, as a committee member, is one of a handful of people authorized to view banks’ Suspicious Activity Reports relating to Hunter Biden and other family members. Many of the SARS concerned Hunter Biden’s alleged payments to hookers — often from Ukraine and Russia. Many of the summary pages contain the terms, “this is a known prostitution ring” and “human sex trafficking,” Greene recalled of the reports she viewed. “There was an entire stack of papers and it was each transaction, each person, each LLC, Hunter Biden’s law firm, Hunter Biden himself, and multiple Biden family members — then it was all these prostitutes. And you can go through and it gives all the prostitutes’ names, addresses, birthdates, telephone numbers, their passports,” Greene said.
Comer Reveals Biden Corruption Informant Is Missing -- House Oversight Committee Chairman James Comer told Fox News host Maria Bartiromo on Sunday that the key informant in the Biden corruption investigation has gone missing. According to Comer, at least nine out of ten whistleblowers with knowledge of the situation are "either currently in court, they’re currently in jail, or they’re currently missing.""Well unfortunately, we can’t track down the informant," Comer told Bartiromo. "We’re hopeful that the informant is still there. The whistleblower knows the informant, the whistleblower is very credible.""Hold on a second, Congressman," Bartiromo responded. "Did you just say that the informant is now missing?""Well we’re hopeful that we can find the informant," said Comer. "Now remember, these informants are kind of in the spy business, so they don’t make a habit of being seen a lot or being high-profile or anything like that. We have basic information with respect to what the informant has alleged, and it’s very serious." “Are there whistleblowers or informants missing right now?" Bartiromo asked. "Well, with what we’ve investigated, and the people that we’ve tracked down, going back to the (CEFC China Energy), the two main players in that business, as well as all the Americans that were involved in the different Biden influence peddling schemes, as well as the Serbian national, nine of the ten people that we’ve identified that have knowledge with respect to the Biden’s, they’re one of three things, Maria. They’re either currently in court, they’re currently in jail, or they’re currently missing." (via the Daily Wire) Watch:
IRS Abruptly Removes Investigative Team From Hunter Biden Probe: Whistleblower's Attorneys Claim In an alarming move that has raised eyebrows and suspicions about the integrity of federal agencies, the Internal Revenue Service (IRS) abruptly removed the entire team working on the high-profile tax fraud investigation of Hunter Biden, first son of President Joe Biden.This drastic action allegedly came on the orders of the Justice Department, adding to the widespread concern among conservatives about potential corruption and the abuse of power within the federal government.The abrupt reassignment of the investigative team has been perceived by many as retaliation against the supervisory special agent whistleblower, who alleged a coverup of the controversial probe.The agent, who has been overseeing the investigation since early 2020, was informed of this sudden personnel change, according to a letter from his attorneys, Mark Lytle and Tristan Leavitt, to Congress.Scoop: IRS whistleblower who alleged coverup in Hunter Biden tax investigation says his entire team was removed from case. His lawyers tell Congress that 'this move is clearly retaliatory and may also constitute obstruction of a congressional inquiry' https://t.co/bvAys2dUGSIn the letter, Lytle and Leavitt suggested that the removal of the investigators not only constituted retaliation but could also be construed as an obstruction of a congressional inquiry.The attorneys pointed out that their client had a legal right to make disclosures to Congress under 5 U.S.C. § 2302 and that any attempt to prevent a federal employee from furnishing information to Congress is a direct violation of long-standing appropriations restrictions.They further emphasized that the removal of the experienced investigative team was the very issue the whistleblower initially sought to expose.
Marjorie Taylor Greene to file articles of impeachment against Biden - Rep. Marjorie Taylor Greene (R-Ga.) announced plans to file articles of impeachment against President Biden on Thursday, alleging he has violated his oath of office in not securing the country’s borders and protecting national security. Greene said at a press conference this will be the “first set” of articles she introduces against Biden, whom she said has purposefully failed to fulfill his responsibilities of the presidency. “It is with the highest amount of solemnity that I announce my intention to introduce articles of impeachment today on the head of this America-last executive branch, that has been working since Jan. 20, 2021, to systematically destroy this country, the president of the United States, Joseph Robinette Biden,” Greene said. Greene made a similar announcement two days ago regarding her plans to introduce articles of impeachment against FBI Director Christopher Wray and Matthew Graves, the U.S. attorney for the District of Columbia. Greene said she has also introduced articles of impeachment against Attorney General Merrick Garland and Secretary of Homeland Security Alejandro Mayorkas. The White House called Greene’s plan a “stunt,” noting Biden is focused on “preventing House Republicans’ default that would crash the economy.” “Is there a bigger example of a shameless sideshow political stunt than a trolling impeachment attack by one of the most extreme MAGA members in Congress over ‘national security’ while she actively demands to defund the FBI and even said she ‘would’ve been armed’ and ‘would have won’ the January 6 insurrection, if only she’d been in charge of it?” said Ian Sams, White House spokesman for oversight and investigations. Greene initially introduced articles of impeachment against Biden on the first day of his presidency. She also filed articles against Garland in August following the search of former President Trump’s Mar-a-Lago property for the classified and sensitive documents taken there. Neither advanced in the House.
"The American Public Was Scammed": Trump Responds After Bomshell Durham Report 'Exonerates' --Former President Donald Trump on Monday has responded through a spokesman, saying that the report "proves" a coordinated effort by the federal government to interfere with the 2016 US election."WOW! After extensive research, Special Counsel John Durham concludes the FBI never should have launched the Trump-Russia Probe! In other words, the American Public was scammed, just as it is being scammed right now by those who don’t want to see GREATNESS for AMERICA!" Trump wrote on Truth Social."The Durham Report spells out in great detail the Democrat Hoax that was perpetrated upon me and the American people. This is 2020 Presidential Election Fraud, just like ‘stuffing’ the ballot boxes, only more so.""This totally illegal act had a huge impact on the Election. With an honest Media, we are looking at the Crime of the Century!"Here's a summary of the main findings from Techno Fog via The Reactionary:
- “The FBI discounted or willfully ignored material information that did not support the narrative of a collusive relationship between Trump and Russia.”
- Crossfire Hurricane “was opened as a full investigation without [the FBI] ever having spoken to the persons who provided that information.” Days after it was opened, Peter Strzok was telling a London FBI employee that “there’s nothing to this.”
- Internal FBI communications discussing the Crossfire Hurricane during its early stages: it’s “thin” and “it sucks”.
- British Intelligence pushed back on Mueller requests for assistance: “[a British Intelligence person] basically said there was no [expletive] way in hell they were going to do it.”
- Durham documents TWO investigations into Hillary Clinton - one involving the Clinton Foundation and one involving illegal foreign contributions to Clinton’s Campaign.
- In one Clinton Campaign investigation, an FBI confidential human source (CHS) had offered an illegal foreign contribution to the campaign through an intermediary. The Clinton Campaign was “okay with it” and “were fully aware”. The CHS offered the FBI a copy of the credit card charge; the FBI never got receipts. In fact, the FBI handling agent told the CHS “to stay away from all events relating to Clinton’s campaign.
Adam Schiff Still Insists Trump Conspired With Russia - Rep. Adam Schiff (D-Calif), the past chairman of the House Select Committee on Intelligence who now hopes to be California’s next Democratic senator, remains unswayed by the newly released Durham Report in his conviction that members of former President Donald Trump’s campaign conspired with Russian intelligence operatives to steal the 2016 election against Hillary Clinton.When asked by The Epoch Times about the Durham Report’s conclusion of no collusion between Trump and Russia and whether the lawmaker stood by his claims to the contrary, Schiff replied, “If you read Mr. Durham’s report, what he said is that there wasn’t evidence of collusion before they began the investigation. That’s obviously a very important distinction.”The California Democrat then pointed to what he described as “secret meetings” between Trump campaign manager Paul Manafort and a Russian intelligence agent. Schiff accused Manafort of “providing that agent with internal polling data with their strategy for key battleground states, while that unit of Russian intelligence was engaged in trying to help Donald Trump win.”Schiff said that for “most Americans that looks like plain collusion.”But the Durham Report described the FBI’s top expert on Russian intelligence s finding no such evidence.“The FBI Intelligence Analyst who had perhaps the most in-depth knowledge of particularly sensitive Russian intelligence information in FBI holdings during the relevant time period disclosed that she never saw anything regarding any Trump election campaign conspiracy with the Russians, nor did she see anything in FBI holdings regarding Carter Page, Michael Flynn, George Papadopoulos, or Paul Manafort engaging in any type of conspiracy with the Russians regarding the election,” the report said.Manafort was convicted in 2019 on tax and bank fraud charges unrelated to allegations of cooperation between the Trump campaign and Russian intelligence.Schiff further claimed that Donald Trump Jr. was closely connected with Russian intelligence.“But you also had the Russians reaching out through an intermediary to Donald Trump’s son, offering dirt on the Democratic candidate for president as part of what was described as the Russian government’s effort to help elect Donald Trump. And rather than refuse it, Don Jr. said that [if] it’s what was represented, they would love it,” Schiff told The Epoch Times.“So the best time for it would be late summer. [They] arranged a secret meeting in the Trump headquarters [and] invited the campaign chairman [and] the president’s son-in-law to receive this help from the Russian government … And most Americans will also call that collusion,” Schiff added.
U.S. Supreme Court to hear dispute over Democratic bid for Trump hotel documents (Reuters) - The U.S. Supreme Court on Monday agreed to hear a bid by President Joe Biden's administration to block a lawsuit by several congressional Democrats seeking details of a government lease for a Washington hotel concerning when it was owned by his predecessor Donald Trump. The justices took up an appeal by the General Services Administration (GSA), which manages federal government real estate, of a lower court's ruling allowing the lawsuit by U.S. House of Representatives Democrats to proceed. The lawmakers sued after the agency declined to provide details of a 2013 lease of the Old Post Office building to the Republican former president's company to convert it into a hotel. The opulent hotel with a soaring clock tower, located on Pennsylvania Avenue between the White House and the U.S. Capitol, opened shortly before Trump was elected in 2016. The lease was sold last year for $375 million and rebranded as a Waldorf Astoria. The hotel became a gathering spot for Trump supporters, lobbyists and foreign dignitaries, who Democrats and watchdog groups complained could patronize the hotel in order to curry favor with Trump when he was in office. Lawsuits accused Trump of violating the U.S. Constitution's anti-corruption provisions by maintaining ownership of his businesses including the Washington hotel while in office. The justices ordered those cases dismissed because they became moot with Trump leaving office in 2021 after his election loss to Biden, a Democrat. The case pursued by the lawmakers tests whether small groups of legislators have the proper legal standing to sue to enforce a federal law aimed at obtaining information from federal agencies. The law dates to 1928 and lets a minority on the 45-member House Oversight and Reform Committee to request and receive information from executive agencies. Under the so-called "seven-member rule," at least seven members must make the request.
Rudy Giuliani sued for $10 million by former aide over alleged sexual assault - (Reuters) - A former associate of Rudy Giuliani is suing him for sexual assault, accusing Donald Trump's former personal lawyer of hiring her to fulfill his desire for a sexual relationship. In a civil complaint filed on Monday and seeking at least $10 million, Noelle Dunphy said Giuliani began abusing her almost immediately after hiring her as an off-the-books employee in January 2019. She said Giuliani made clear that satisfying his sexual demands was an "absolute requirement" of her job. Dunphy had first publicly discussed her accusations in January but added many new details in a 69-page complaint filed against Giuliani and three of his namesake companies in a New York state court in Manhattan. Ted Goodman, a spokesperson for Giuliani, said the former New York City mayor "unequivocally denies the allegations raised by Ms. Dunphy. "Mayor Giuliani's lifetime of public service speaks for itself and he will pursue all available remedies and counterclaims," he added.According to Monday's complaint, Giuliani "forced Ms. Dunphy to perform oral sex on him" throughout their relationship. Dunphy also said Giuliani went on "alcohol-drenched rants that included sexist, racist, and antisemitic remarks" that made her work environment unbearable and fired her in January 2021 without paying her deferred salary.
FBI Leadership Sabotaged Clinton Foundation Investigations: Durham Report - Remember the Clinton Foundation? Which, took millions in foreign donations when everyone thought Hillary Clinton was going to win the 2016 US election, only to see donations plummet by 90% after she lost? Now we learn, thanks to the Durham report, that the FBI had three concurrent investigations into the Clinton Foundation, which were shut down during the 2016 election year by top brass.Durham’s scope included the FBI investigations “directed” at the Hillary Clinton campaign. It seems the purpose of that review was to assess and compare the favorable treatment received by Clinton to the targeting of Trump.The first investigation involved an FBI tip from a CHS that a foreign government was sending a person “to contribute to Clinton’s anticipated presidential campaign, as a way to gain influence with Clinton should she win the presidency.” (Which country?!) An FBI field office sought a FISA against the foreign contributor and made that request to FBI headquarters, which ignored it for four months due to the fact that they were careful that Clinton was “involved.” According to one FBI Agent, “They were pretty ‘tippy-toeing’ around HRC because there was a chance she would be the next president.” The FISA was approved on the condition that the FBI give defensive briefings to Clinton.The second Clinton investigation involved the same CHS, who in November 2015 reported to the FBI that another foreign government was looking to contribute to the Clinton campaign “in exchange for the protection of [that country’s] interests should Clinton become President.” That CHS would end up making a $2,700 donation to the Clinton campaign on behalf of a foreign insider, in violation of federal law which bans contributions by foreign nationals. The CHS told their handling FBI agent that “They [the campaign] were okay with it. […] yes they were fully aware from the start” of the contribution being made on behalf of the foreign interest.Who was the FBI’s confidential human source that caught the Clinton campaign in illegal activity? Thanks to great work by the talented Fool Nelson showing a $2,700 contribution from Patrick Byrne, we have this admission from Byrne himself:
Elon Musk documents subpoenaed in Jeffrey Epstein lawsuit by US Virgin Islands - (Reuters) - The U.S. Virgin Islands has subpoenaed Tesla Inc CEO Elon Musk for documents in its lawsuit accusing JPMorgan Chase & Co of helping enable sexual abuses by late sex offender Jeffrey Epstein. The subpoena, issued on April 28, came to light on Monday in a request by the Virgin Islands to serve Musk by alternative means because it had been unable to locate and serve him. The U.S. territory did not seek to question Musk under oath, and its effort to subpoena him does not implicate him in any wrongdoing. According to the Monday court filing in U.S. District Court in Manhattan, Musk, one of the richest people in the world, may have been referred to JPMorgan by Epstein. The Virgin Islands did not provide further explanation for its interest in obtaining documents from Musk. In a tweet late on Monday, Musk said that the notion that he would listen to financial advice from Epstein was absurd. Referring to Epstein, he said: "That cretin never advised me on anything whatsoever." Epstein died by suicide in 2019 in a Manhattan jail cell while awaiting trial on sex trafficking charges. The U.S. Virgin Islands accuses JPMorgan of missing red flags about Epstein's abuse of women on Little St. James, a private island he owned there. The bank has denied knowledge of Epstein's crimes.
That Cretin Never Advised Me On Anything Whatsoever - Musk Responds To Epstein Subpoena -- Musk has replied news that he's been subpoenaed in the US Virgin Islands lawsuit against JPMorgan over their relationship with Epstein."This is i --diotic on so many levels," said Musk, adding "That cretin never advised me on anything whatsoever.""The notion that I would need or listen to financial advice from a dumb crook is absurd."Lastly, Musk claims that JPMorgan "let Tesla down ten years ago, despite having Tesla's global commercial banking business, which I then withdrew. I have never forgiven them."Elon Musk was issued a subpoena by the US Virgin Islands as part of its lawsuit against JPMorgan Chase over the bank's alleged facilitation of Jeffrey Epstein's sex trafficking ring, a court filing revealed Monday.According to the filing, the Virgin Islands has attempted to serve Musk since late April, because Epstein "may have referred or attempted to refer" Musk as a client to JPMorgan.
"Is That Legal?" - Musk Chides OpenAI's For-Profit Pivot After His $50 Million Investment - Billionaire Elon Musk has queried whether it's legal for OpenAI — the firm behind ChatGPT — to become a for-profit business after he invested approximately $50 million into it.On May 16, Musk spoke with CNBC during Tesla’s annual shareholder meeting and claimed he “came up with the name” OpenAI, intending for the company to be an open-source alternative to DeepMind after Google purchased the company in 2014.Musk likened OpenAI’s nonprofit to for-profit transition to a “save the Amazon” organization becoming a “lumber company” that logged and sold trees from the rainforest, adding:“Is that legal? That doesn’t seem legal. In general, if it is legal to start a company as a non-profit and then take the IP and transfer it to a for-profit that then makes tons of money [...] shouldn't that be the default?”OpenAI says it began as a nonprofit company so that it was “unconstrained by a need to generate financial return” and could focus on its goal of advancing “digital intelligence in the way that is most likely to benefit humanity as a whole.”But in 2019, OpenAI announced it would create a new company called OpenAI LP, which it called a “hybrid of a for-profit and nonprofit,” or “capped-profit” company, which is supposedly still governed by the nonprofit entity. OpenAI was created as an open source (which is why I named it “Open” AI), non-profit company to serve as a counterweight to Google, but now it has become a closed source, maximum-profit company effectively controlled by Microsoft.Not what I intended at all.— Elon Musk (@elonmusk) February 17, 2023
ChatGPT Is The Most Tried AI Tool And Users Stick To It - --Ever since the release of ChatGPT in November 2022, AI tools have been all the rage. However, as Statista's Felix Richter reports, while there have been AI-powered tools before OpenAI released ChatGPT to the public, none of them gained as much public attention and hype. Word of ChatGPT’s capabilities spread like wildfire online and within days, more than a million people had registered to use it.ChatGPT was the first generative AI tool to reach mass adoption, giving millions of people around the world a taste of what large language models are capable of. Ever since then, other tools, for example AI-based image generation tools such as Midjourney or DALL-E, have also gotten more attention, but so far none has come as close to mainstream adoption as ChatGPT has.According to a survey conducted by Statista Consumer Insights, 20 percent of U.S. respondents had tried ChatGPT by the time the survey was fielded in March and April 2023, putting it far ahead of other AI tools such as Jasper Chat, GetGenie or Simplified, most of which have been designed to assist users in text generation and copywriting. Among the tools that most people have tried, ChatGPT also left its users most impressed, with 89 percent of prior users saying they would use it again. In that respect, Midjourney, a powerful text-to-image generator achieved the worst score, with just 65 percent of prior users saying they’d return to the tool.\
False claims of a stolen election thrive unchecked on Twitter even as Musk promises otherwise (AP) — In an interview this week, Twitter owner Elon Musk said users making false claims of stolen elections “will be corrected” on the platform.Prompted by a CNBC reporter for extra assurance that would happen, Musk responded, “Oh yeah, 100%.”Yet many such claims have thrived on Twitter in the week since former President Donald Trump spent much of a CNN town hall digging in on his lie that the 2020 election was “rigged” against him. Twitter posts that amplified those false claims have thousands of shares with no visible enforcement, a review of posts on the platform shows. The contrast between Musk’s promise and the extent the claims are spreading on Twitter underscores a major challenge for social media companies trying to call out election conspiracy theories and falsehoods that Trump and his supporters continue to promote. That will only grow as the nation prepares for a presidential election next year in which Trump is again vying to be the Republican nominee. It’s unclear whether Musk and his newly hired chief executive, Linda Yaccarino, are planning any changes to Twitter to crack down on the misinformation, which election experts and tech accountability advocates say heightens risks to election officials and erodes trust in democracy. “Talk is cheap,” said David Becker, a former U.S. Justice Department lawyer who now leads the nonprofit Center for Election Innovation and Research. “It’s good that he acknowledges that it’s important for Twitter to act responsibly. … But then we have to see this action actually taken, because it’s happening right now.” An analysis by the media intelligence firm Zignal Labs on behalf of The Associated Press surfaced the 10 most widely shared tweets promoting a “rigged election” narrative in the five days following Trump’s town hall.US Supreme Court leaves protections for internet companies unscathed (Reuters) - The U.S. Supreme Court handed internet and social media companies a pair of victories on Thursday, leaving legal protections for them unscathed and refusing to clear a path for victims of attacks by militant groups to sue these businesses under an anti-terrorism law. The justices in a case involving Google LLC's video-sharing platform YouTube, both part of Alphabet Inc (GOOGL.O), sidestepped making a ruling on a bid to weaken a federal law called Section 230 of the Communications Decency Act that safeguards internet companies from lawsuits for content posted by users. They also shielded Twitter Inc in a separate case from litigation seeking to apply a federal law called the Anti-Terrorism Act that enables Americans to recover damages related to "an act of international terrorism." In both cases, families of people killed by Islamist gunmen overseas had sued to try to hold internet companies liable because of the presence of militant groups on their platforms or for recommending their content. The justices in a 9-0 decision reversed a lower court's ruling that had revived a lawsuit against Twitter by the American relatives of Nawras Alassaf, a Jordanian man killed in a 2017 attack during New Year's celebration in a Istanbul nightclub claimed by the Islamic State militant group. In the case involving YouTube, the justices returned to a lower court a lawsuit by the family of Nohemi Gonzalez, a college student from California who was fatally shot in an Islamic State attack in Paris in 2015. The justices declined to address the scope of Section 230, concluding they did not need to take that step because the family's claims appeared likely to fail given the Twitter case decision.
Washington’s new AI push could be derailed by old social media fights - Capitol Hill is rushing to regulate artificial intelligence before most members have even a basic understanding of the technology. And as momentum grows, the new AI push appears at risk of getting tangled in the same political fights that have paralyzed previous attempts to regulate technology.In this week’s high-profile AI hearings, Republicans and Democrats broadly agreed on the need for new AI rules.But the past several years also saw what looked like consensus on other major tech issues — the need to reform social media liability, rein in giant tech companies and boost kids’ safety online. Each of those efforts ultimately collapsed, in part due to partisan squabbling over their impact on social media.Republicans worried that any new rules would lead to increased censorship of conservatives, while Democrats feared they’d open the floodgates for online hate speech and disinformation. Now those arguments are starting to resurface in an entirely new debate.From the frequent invocation of Section 230 during OpenAI CEO Sam Altman’s Senate testimony on Tuesday to a squabble over disinformation and censorship at a separate Senate hearing on the government’s use of automated systems, familiar battle lines over social media are at risk of being redrawn as Congress turns its gaze to AI. “The same muscle memory is coming back,” said Nu Wexler, a partner at public relations firm Seven Letter and a former Democratic congressional staffer who has worked at Google, Facebook and other tech companies.A return to the politics of those earlier tech disputes will make it harder for the two parties to come together on AI policy. And even if they can stay united, lawmakers will likely need to look beyond censorship, disinformation, political bias or other issues raised by social media if they want to produce meaningful AI rules.
Court Denies Elizabeth Holmes’ Bid To Avoid Prison; Ordered To Pay $452 Million in Restitution - The US Court Of Appeals for the Ninth Circuit dismissed Elizabeth Holmes' request on Tuesday to remain free while her legal team attempted to overturn her fraud conviction, The Wall Street Journal reported. Holmes, the disgraced founder of blood-testing startup Theranos, was found guilty of four fraud and conspiracy charges in January 2022. She received a sentence of over 11 years in prison. She was previously ordered to surrender to authorities on April 27, but her reporting date was delayed while the appeals court considered her request. However, a new reporting date has yet to be set by the court. Not only was Holmes' appeal rejected, but she and former Theranos CEO Ramesh "Sunny" Balwani were also instructed to pay Theranos' investors $452 million. This restitution includes $125 million to be paid to Rupert Murdoch. Balwani began his 13-year prison sentence in April after being convicted on 12 counts of fraud and conspiracy last July. Holmes was set to revolutionize blood testing by using drops of blood for dozens of tests, but a WSJ investigation and regulatory reviews revealed flaws in the technology. Theranos had a peak valuation of $9 billion before its fall from grace. The district court has proposed that Holmes carry out her sentence at a federal prison camp in Bryan, Texas. This facility permits family visits, which implies that her two young children will be able to see her.Holmes's legal team has challenged her conviction, arguing that supposed errors and misconduct occurred during her trial. It appears that $30 million in legal fees won't keep her out of jail any longer (maybe because she is a flight risk?).
Vice Media Declares Bankruptcy As Soros And Fortress Set To Become New Owners -On Monday morning, Vice Media filed for Chapter 11 bankruptcy in the Southern District of New York and is anticipated to be acquired by its creditors. The Brooklyn-based media company that once boasted a $5.7 billion valuation listed assets and liabilities between $500 million to $1 billion. In a separate statement, Vice Media announced the "Lender Consortium," which includes Fortress Investment Group, Soros Fund Management, and Monroe Capital, will purchase the media outlet for approximately $225 million in the form of a credit bid for substantially all of the Company's assets. We previously noted Fortress Investment Group and Soros Fund Management were interested in purchasing Vice Media out of bankruptcy. This morning's announcement wasn't unexpected, as the bankruptcy filing and eventual sale have been widely anticipated for the past few weeks.The rapid decline of Vice Media, once valued at $5.7 billion in 2017, serves as a cautionary tale for all news media outlets about going 'woke' because it'll ultimately lead to going broke. Here's a decade of Vice funding and valuations via Axios:
Republicans and Democrats try — again — to come together on stablecoins — House lawmakers discussed two draft versions of long-awaited stablecoin legislation during a hearing of the House Financial Services Committee's digital assets panel, a meaningful step forward toward finding a bipartisan compromise that could pass Congress this year. Ahead of the hearing, House Financial Services Committee ranking member Maxine Waters, D-Calif., released the Democratic version of a stablecoin bill that has striking similarities to the version offered by panel chairman Rep. Patrick McHenry, R-N.C., earlier this year, including a nearly identical definition of digital assets. While the House could pass McHenry's bill, they will need bipartisan buy-in to get the bill through the Democratic-controlled Senate. Lawmakers from both parties expressed a desire to craft a bipartisan bill, though some clear divisions remained. Waters' bill features a new section that would bar the commingling of customer funds with assets held by a stablecoin issuer — a clear reference to the turmoil caused by complicated intermingling of funds in the collapse of crypto exchange FTX. The bill would also give the Federal Reserve the option to deny any registration of a state-approved stablecoin issuer, which Waters said would ensure a strong federal floor for stablecoin registration, and ensure that stablecoin issuers couldn't engage in regulatory arbitrage. The Republican version, meanwhile, emphasizes state governments' role in overseeing stablecoins.
Tudor Jones Warns "Bitcoin Has A Real Problem" In The US As DeSantis Bans CBDCs -- The Fed "could probably declare victory," said legendary trader Paul Tudor Jones in an interview on CNBC this morning, pointing out that inflation has been declining for 12 straight months and "that's never happened before in history."However, that 'good news' for The Fed is not necessarily good news for stock market investors as Jones warned the economy could enter a recession in the third or fourth quarter."I'm not rampantly bullish because I think it’ll be a slow grind," he said, comparing the period to June 2006, when the Federal Reserve stopped raising rates and stocks rose for another year. Jones echoed fellow billionaire Stan Druckenmiller's views of the equity market going nowhere for years, trading in a range, but also was positive on AI:"I do think that the introduction of large language models, artificial intelligence, is going to create a productivity boost we’ve only seen a few times in the last 75 years," he said, adding that it could add a 1.5% gain in output a year for the next five years.Finally, however, the billionaire hedge fund manager saved his most noteworthy comments for Bitcoin.He said while that he is still holding some of the cryptocurrency - and will always hold - it is a small portion of his total wealth, with his biggest fear the dis-inflationary environment discussed above as well as the anti-crypto sentiment from Washington:"Bitcoin has a real problem because in the United States, you have the entire regulatory apparatus against it."As CoinDesk reports, the hedge fund manager's comments suggest his sentiment toward bitcoin has cooled somewhat since saying in 2020 that he could see himself allocating as much as 5% of his assets to BTC in the face of monetary debasement by the Fed.Jones is right though as crypto has become politicized like everything else in the land of the free...
Secretary of State Slashes Penalty on Democratic Party of Oregon for Violation Involving Failed Crypto Firm FTX -The Oregon Secretary of State’s Office fined the Democratic Party of Oregon $15,000 for being tardy in changing the name on a $500,000 campaign contribution that came from Nishad Singh, former director of engineering at bankrupt cryptocurrency firm FTX. The state had proposed a $35,000 fine but slashed the amount by 57% as part of a settlement with the Democratic Party, reached last night because neither side wanted to go forward with a hearing today, the Secretary of State’s Office said in a statement. “The parties wish to resolve this matter without a hearing and in a manner that reduces related costs and expenses, as well as serves the public interest in past and future transparency in campaign finance contribution records,” the settlement said. The Democratic Party of Oregon originally said that the $500,000 contribution, made Oct. 4, came from crypto infrastructure firm Prime Trust. The deadline for reporting that transaction was Oct. 11, but the DPO didn’t change the name to show that the contribution actually came from Singh until Oct. 31. The settlement amount, though discounted, will do more to curb any future noncompliant behavior by the DPO than going to court, acting Secretary of State Cheryl Myers said in a statement. (It’s worth noting that the settlement was the first substantive act under Myers following the resignation of former Secretary of State Shemia Fagan in amoonlighting scandal.)
FTX sues Sam Bankman-Fried, others in effort to recover $240M from Embed acquisition - FTX's new leadership team filed a series of lawsuits late Wednesday in an effort to recover some $240 million in connection with the cryptocurrency exchange's acquisition of stock trading platform Embed, which closed just weeks before FTX filed for bankruptcy. The plaintiffs in all three suits include FTX sister hedge fund Alameda Research and West Realm Shires (WRS) Inc., which is the corporate entity under which FTX US operated as a crypto trading company. The FTX debtors sued founders Sam Bankman-Fried, Nishad Singh and Zixiao "Gary" Wang, Embed founder Michael Giles and an array of Embed shareholders, claiming FTX can claw back the funds under bankruptcy law and that the funds for the acquisition came from Alameda and were misappropriated. WRS had purchased Embed with the aim of building its empire by providing FTX.US customers the ability to trade stocks on its platform in addition to crypto assets. But the complaints allege FTX executives conducted little to no due diligence before acquiring the stock platform and rushed to complete the six-month transaction ahead of the crypto exchange's collapse. The suit against Giles points to internal communications from Embed employees that acknowledge that the then-president of FTX.US had discovered "many bugs" in the system ahead of the deal closing and that Giles admitted the platform was "experiencing multiple issues per day." Another Embed employee replied to Giles, "Deep down, it's why I want to accelerate the signing of the DA [definitive agreement with WRS] … more issues are inevitable." FTX recently tried to sell Embed, but the highest bidder was Giles, who offered only $1 million. The plaintiffs wrote in the lawsuit that the auction "leaves no doubt" that the $220 million FTX spent to acquire Embed was "wildly inflated relative to the company's fair value, which Giles well knew," FTX wrote in its lawsuit. The complaint calls Embed's software "essentially worthless."
FTX has recovered $7.3B in assets, bankruptcy lawyer says ---Bankrupt cryptocurrency exchange FTX has recovered upward of $7.3 billion in liquid assets, an attorney for the failed platform told a judge Wednesday. FTX's new leadership, led by current chief executive John J. Ray III, is trying to recover what they can of customers' and investors' money following the firm's collapse under previous CEO and founder Sam Bankman-Fried. FTX lawyer Andy Dietderich said at a court hearing in Delaware that the platform has gathered another $2.4 billion after reporting in January that it had roughly $5 billion in cash, digital assets and investment securities. Prior to its downfall, FTX was the world's second-largest crypto exchange and was once valued at an estimated $32 billion. Ray previously warned customers and investors who put their money in FTX to not hold out hope for a full recovery, telling a congressional panel late last year, "We will never get all these assets back." Dietderich said the company is beginning to look to its future after spending the months since its November bankruptcy collecting resources and trying to figure out what led to its collapse under the prior management team. "The situation is stabilized and the dumpster fire is out," Dietderich told the court. Earlier this week, the FTX debtors filed an initial report on what led to the demise of the exchange, writing in its overview that "while the FTX Group's failure is novel in the unprecedented scale of harm it caused in a nascent industry, many of its root causes are familiar: hubris, incompetence, and greed." The report says that under the direction of former leadership, FTX and its affiliated entities lacked the appropriate management, governance and organizational structure necessary for its size, as well as the financial and accounting controls needed for a multibillion-dollar firm. Several former executives from FTX and its sister hedge fund, Alameda Research, are facing federal charges related to the companies' failures, which resulted in tens of billions of dollars of losses to customers.
The Rise of FTX, and Sam Bankman-Fried, Was a Great Story. Its Implosion Is Even Better. - The New York Times --About a year after the author Michael Lewis began to shadow Bankman-Fried, the founder of the crypto exchange FTX, Bankman-Fried was arrested. As the story evolved, Lewis has had a front-row seat to the drama. Michael Lewis wasn’t planning to write a book about cryptocurrency. He stumbled into the subject in the fall of 2021, when a friend who was planning to do business with FTX — one of the world’s largest cryptocurrency exchanges — asked Lewis, as a favor, to check out its young founder, Sam Bankman-Fried. A couple of weeks later, Lewis met with Bankman-Fried for the first time. The pair took a hike in the hills near Lewis’s home in Berkeley, Calif., and Lewis was enthralled by the eccentric young man with untamed hair who was worth tens of billions of dollars and was sought after by powerful investors and politicians.“After a couple of hours, I said, I don’t know what’s going to happen to you, but I just want to watch,” Lewis recalled.Lewis didn’t realize it at the time, but he had secured a front-row seat to a sprawling scandal with huge financial, political and legal implications.FTX has imploded in a spectacular fashion: Federal prosecutors have brought an array of charges against Bankman-Fried, accusing him of money laundering, bribery and orchestrating a fraudulent scheme to misappropriate billions of dollars of customer money. (He has pleaded not guilty.) When Bankman-Fried was arrested in the Bahamas last December, Lewis was there, and had been shadowing him for roughly a year.Lewis has written about financial debacles before, in books exploring the subprime mortgages that blew up the U.S. economy (“The Big Short”); the risky world of high frequency trading (“Flash Boys”); and how the 2008 financial crisis ricocheted around the world and destabilized the economies of places like Iceland, Ireland, Greece and Germany (“Boomerang”).But the story of how Bankman-Fried rose to become one of the world’s youngest billionaires, then saw his empire crumble, presented new challenges for Lewis. “It’s the first time I’ve had a protagonist who the reader won’t trust, or who they will come to the story with lots of baggage about,” he said.In a recent interview from the Bahamas, where he was reporting, Lewis spoke about his upcoming book on Bankman-Fried, “Going Infinite: The Rise and Fall of a New Tycoon,” which Norton will release on October 3. Below is an edited and condensed version of the conversation.
Some Popular Crypto Companies Lack Boards, Audits Despite FTX’s Fall – Bloomberg - A review of practices at 60 of the sector’s most influential companies found many lack basic guardrails.Before it filed for bankruptcy last November, many of the entities in Sam Bankman-Fried’s colossal FTX empire had never held a board meeting. The crypto exchange operator itself, once valued at $32 billion with $1.8 billion in venture capital raised, only established a board near the end of its life with three directors. Its sister trading house Alameda Research, which allegedly received unfettered access to FTX customer assets to fund its bets, had such poor recordkeeping that Bankman-Fried told staff members its books were “unauditable,” according to communications publishedby the group’s new management. Occasionally the firm would find $50 million in assets “lying around that we lost track of,” Bankman-Fried said. Now the former CEO stands accused of fraud, money laundering and bribing Chinese officials — among other charges — while investors and customers are left nursing billions of dollars in losses.
Only half of top 60 crypto companies have an external auditor - After the collapse of FTX and revelations about its lax business practices, investors and the crypto community at large want companies to uphold higher standards but the results of a recent Bloomberg survey indicate that most crypto firms are still shrouded in a veil of mystery and following their own rules.Only 31 out of the top 60 companies in crypto have undergone a full financial audit or received reserve attestations from an independent auditor, the Bloomberg survey found.Many of the companies surveyed, however, said their lack of audits was due to the unwillingness of major audit firms to engage with them.This is partly because the accounting firms do not have sufficient experience with blockchain accounting and partly due to the crypto industry’s long list of scams and scandals. Big exchanges like Binance and Bitfinex both said that major accounting firms are either unwilling or unequipped to work with them.The survey included crypto exchanges like Binance and Coinbase Global, token issuers like Tether, mining businesses, and analytical firms like Chainalysis. Out of the 60 firms, 17 declined to participate in the survey, while eight did not respond.All 60 companies were selected based on whether they met one or more of the following criteria: They are publicly listed, were valued at over $1 billion in private fundraising, or were considered to hold significant influence in the sector as of January 2023.The survey results also show that 46% of the 24 companies that disclosed their present auditor were audited by one of the ‘Big Four’ accounting firms. The ‘Big Four’ accounting firms include KPMG, PricewaterhouseCoopers (PwC), Ernst & Young (EY), and Deloitte. Coinbase, Circle, and Ripple, for instance, were audited by Deloitte, while Chainalysis, Ledger, and Anchorage Digital received audits from EY.A startup’s board is typically made up of only the founders. But as the firm grows, it should bring in at least one independent director — that’s the general practice in traditional companies, including in the technology sector.In fact, tech firms require board approval for expenses above a certain threshold during the later stages of growth, making the firms more accountable for how and where they spend their money.The Bloomberg survey found that 38 of the crypto companies have a board with at least one non-executive member. But 10 companies didn’t, and 12 firms either did not respond to that question or the information was not available in public filings.Tether, Huobi, and Magic Eden are among those with only advisory board members or where the board is entirely staffed by company executives. Binance is working to have a formal board to oversee its parent group by the end of 2023, according to its chief compliance officer Noah Perlman.Some of the surveyed firms also said that they had a board but did not disclose information about its members. This includes exchanges Crypto.com and Kraken, non-fungible tokens (NFTs) marketplace OpenSea, and decentralized finance (DeFi) firm Uniswap Labs.
Dimon, Fraser, other bank CEOs to meet Schumer on debt limit --Senate Majority Leader Chuck Schumer will meet with top executives of the nation's biggest banks on Wednesday to discuss the federal debt limit, with the government potentially just two weeks away from a catastrophic payments default. The 11 a.m. session will include JPMorgan Chase Chief Executive Officer Jamie Dimon and Citigroup CEO Jane Fraser, according to a person familiar with the plan. Also this week, Treasury Secretary Janet Yellen is expected to gather with finance chiefs as the clock ticks down to her department potentially running out of sufficient cash to make good on all federal obligations. Yellen last week said it would be helpful for corporate leaders to speak out about their concerns on the debt ceiling. Dimon, for his part, said in an interview with Bloomberg Television that JPMorgan had set up a "war room" looking at contingencies if the debt limit isn't increased in time. The banking chiefs are in Washington for an annual meeting of the Bank Policy Institute, an industry lobbying group. The gathering is coinciding with an intensification of negotiations between the White House and Republicans over a framework to boost the ceiling and address Republican demands for restrictions on spending. Negotiators for President Joe Biden and House Speaker Kevin McCarthy will meet Wednesday as they try to hash out details of an accord that might include caps on spending, a clawback of unspent Covid-19 funds and an accelerated permits process for energy and other projects. Congressional leaders in both parties and Biden struck a cautiously optimistic tone after an Oval Office meeting Tuesday, although they gave no indication they bridged any of their policy differences. Biden leaves Wednesday for a Group of Seven meeting in Hiroshima, Japan, but will return on Sunday instead of taking a more extended overseas trip. Yellen has said the Treasury Department could run out of ways to avoid breaching the debt limit as early as June 1.
Big banks quietly game plan in event of debt-ceiling breach -- The CEOs of the nation's largest banks, which have quietly been preparing for a doomsday scenario in which the government can't pay all of its bills, discussed the debt-ceiling impasse during a meeting Thursday with Treasury Secretary Janet Yellen. At the meeting, Yellen told the executives that a failure to raise or suspend the debt limit would be catastrophic for the financial system, according to a Treasury readout. The consequences would be similarly damaging for American families and businesses, Yellen said. The CEOs' meeting with Yellen followed sit-downs on Wednesday with Deputy Treasury Secretary Wally Adeyemo and Senate Majority Leader Chuck Schumer. Schumer, D-N.Y., told the executives that they should push every member of Congress to commit to not allowing the nation to default, according to a source briefed on the conversation. With two weeks to go before the government is expected to run out of money — which some observers say could set off a recession — industry officials are also offering warnings about the consequences of default. "I think everybody recognizes that it's an important situation," . "You don't want to see failure to pay on Treasury securities." Earlier in the week, the CEOs of Goldman Sachs and Morgan Stanley were among the signatories of a letter urging President Biden and top lawmakers to act swiftly to prevent a "potentially devastating scenario," which could arise if a deal isn't negotiated soon. The potential fallout remains hard to predict — after all, the government has never actually defaulted, though it has gotten close a few times in recent years. Even so, banks are trying to prepare for whatever might occur if Congress doesn't raise or suspend the debt ceiling in time. "I think the main point is that if a deal isn't reached and there's a perceived threat of default or a potential default on government debt, there's going to be a lot of volatility," Internally, big banks have been trying to figure out how to handle a potential default, though officials have been tight-lipped about the details of their planning.
Further weakness as PacWest Bancorp (NASDAQ:PACW) drops 24% this week, taking five-year losses to 90% 0 Anyone who held PacWest Bancorp (PACW) for five years would be nursing their metaphorical wounds since the share price dropped 92% in that time. And we doubt long term believers are the only worried holders, since the stock price has declined 85% over the last twelve months. Furthermore, it's down 83% in about a quarter. That's not much fun for holders. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.Since PacWest Bancorp has shed US$168m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. PacWest Bancorp became profitable within the last five years. However, it made a loss in the last twelve months, suggesting profit may be an unreliable metric at this stage. Other metrics might give us a better handle on how its value is changing over time.
Regional Bank Stocks Bounce for Strongest Rally in Two Years -- Shares of US regional banks rallied after Western Alliance Bancorp said deposits had grown by more than $2 billion since the quarter’s end, easing worries about the health of US regional lenders. The KBW Regional Banking Index soared by 7.3% for its best day since January 2021. Western Alliance rose 10%, while PacWest Bancorp jumped by 22%. The sector had been under pressure since March, when a series of firms including Silicon Valley Bank collapsed. But Wednesday’s rally did little to alleviate the sector’s pain. Western Alliance is still down by 42% this year and PacWest has fallen 76% over that period. The KBW Regional Banking Index tumbled 27% so far in 2023, as the failures of Silicon Valley Bank, Signature Bank and First Republic Bank rattled investors. The lender had previously reported that deposit levels had increased $1.8 billion from the end of the prior quarter to $49.4 billion as of May 9. Its latest figures indicate deposit levels increased by another $200 million between May 9 and May 12.Western Alliance was one of the regional banks initially swept up in the turmoil that followed the collapse of other lenders earlier this year, with investors concerned about unrealized losses on bond investments and deposit levels. Exposure to commercial real estate lending has also been in focus.The collapse of First Republic Bank at the beginning of this month had reignited worries over the group, and sector gauges haven’t been able to recover since the March plunge.Western Alliance, however, has demonstrated “stability amid an uncertain operating backdrop,” Bloomberg Intelligence analysts Herman Chan and Sergio Ferreira wrote in a note. “We see the bank as well positioned, with $22.6 billion in available liquidity and only about $10 billion in uninsured deposits.”
Taxpayers Fleeced Again? Big Banks Push New FDIC Re-Funding 'Trick' --Not satisfied with the billions in interest they're earning on excess reserves, or the unlimited facilities The Fed opened up with the BTFP to bail out regional banks' losses on their bond portfolios, The Wall Street Journal reports that banks have spent the past week or so testing a cunning plan to push more losses on to the US taxpayer.Instead of paying the billions of dollars they collectively owe to replenish the federal deposit insurance fund, they want to use Treasurys instead of cash.Sounds good right......except those Treasuries are trading notably below par and the government will accept them as par, implicitly paying a premium for the bonds.As a reminder, US banks are sitting on $620 billion in unrealized paper losses on government bonds...And the 'Big 4' - who will pay the biggest "fees" to replenish the FDIC fund are sitting on these unrealized losses which they would love to swap for par to some sucker... This would put even more of the banks' balance-sheet-clogging losses on the US taxpayer's shoulders.This is a nuanced (but crucial) difference to the Bank Term-Financing Plan (BTFP) which offers a loan or swap for the discounted bonds at par...with a limited horizon (which will always be extended though) - instead o this FDIC debacle which is simply a trade - bank gives FDIC 90c bond for every $1 it owes them! At issue is a so-called special assessment the FDIC has proposed for large banks to recoup losses to the deposit insurance fund tied to two big institutions that collapsed in March.The agency is soliciting public comment on the proposal for about two months.Wall Street Journal reports that an FDIC spokeswoman said the agency's rules don't allow banks to pay it in Treasurys.But the FDIC welcomes public comment on its rules, she said.
Warren urges FDIC to reject plan to pay assessment fee with Treasuries | American Banker— Sen. Elizabeth Warren, D-Mass., has asked Federal Deposit Insurance Corp. Chairman Martin Gruenberg to deny a reported plan by large banks to pay a special assessment fee related to the failures of Silicon Valley Bank and Signature Bank with Treasury bonds.Under a proposed rule by the agency, larger banks will bear most of the brunt of a special assessment fee that the FDIC must levy after it issues a systemic risk exception for Silicon Valley Bank and Signature Bank to protect the institutions' failed deposits after they failed. Under the rule, banks with uninsured deposits below $5 billion will pay nothing under the proposal, and those with uninsured deposits in excess of $5 billion will be assessed on their uninsured deposits above that threshold.Some large banks, according to a Wall Street Journal report, have been floating the idea of paying the fee, which will replenish the deposit insurance fund with underwater Treasury bonds. “In simple terms, the biggest banks — who have experienced a surge in deposits after the SVB failure, received favorable loans from the Fed's Bank Term Funding Program in March 2023, and had $30 billion of their own deposits guaranteed in the First Republic sale — are now seeking to pay back the gap in the deposit insurance fund with devalued assets, getting those assets off their books, while leaving the federal government to assume the risk," Warren said in the letter. The politics of which banks should contribute the most to replenish the deposit insurance fundhave been tricky. While the Biden administration has stressed throughout the banking turmoil that the cost of the bank failures will be borne by banks, and not taxpayers, some lawmakers have repeatedly noted that banks are likely to pass off the cost of the assessment to consumers in the form of fees and other charges.
Failed bank CEOs face another round of bashing in Congress | American Banker— Former Silicon Valley Bank CEO Greg Becker continued to take heat from both sides of the aisle in his second — and last — day of congressional testimony. Becker was joined by Signature Bank founder Scott Shay and former First Republic CEO Michael Roffler at the hearing, which was hosted by two subcommittees of the House Financial Services Committee. Shay appeared alongside Becker on Tuesday before the Senate Banking Committee, while this was Roffler's first time speaking publicly after First Republic's failure. Roffler blamed the collapse of First Republic on a lack of confidence sparked by the failure of Silicon Valley Bank and Signature Bank. "While First Republic understood and disclosed the earnings risks we were facing in 2023, we could not have anticipated that Silicon Valley Bank and Signature Bank would fail, or that the failure of those banks would trigger substantial deposit outflows at our bank," he said. "Instead of dealing with temporary decreased earnings due to interest rate pressures, First Republic was contaminated overnight by the contagion that spread from the unprecedented failures of two regional banks." Most lawmakers laid most of the blame for the regional banking turmoil on Silicon Valley Bank. But while Becker fielded bipartisan attacks on his compensation, particularly his bonuses, in Tuesday's Senate hearing, Republican lawmakers appeared more interested in questioning the former CEO about Silicon Valley Bank's interactions with the Federal Reserve, particularly the San Francisco Fed. "We are not here to defend management at any of the banks that failed or to put anyone on trial for p rosecution," said Rep. Andy Barr, R-Ky., the chairman of the financial services subcommittee. "In looking at the recent bank failures and the continued turbulence in our banking system, it is important to acknowledge that the bank failures did not occur in a macroeconomic vacuum." Becker, in particular, took the brunt of lawmaker anger. His bank was the first to fail, and the high share of uninsured deposits and lack of hedging against interest rate risk took heavy criticism from lawmakers.
Fed: supervisors focused on emergency readiness amid banking crisis - The Federal Reserve's supervisors are taking a closer look at bank funding and interest rate risk management in the wake of three large bank failures this year. The Fed's spring report on supervision and regulation, released Monday afternoon, said the banking sector was "strong and resilient," with high levels of capital and liquidity. But the central bank also highlighted several pockets of growing distress, including rising costs of deposits, higher rates of delinquency on some types of loans and mounting losses in securities portfolios."Overall, banks have strong capital and liquidity, enabling them to lend and provide financial services to households and businesses," Fed Vice Chair for Supervision Michael Barr said in written remarks issued Monday. "At the same time, recent stress in the banking system shows the need for us to be vigilant as we assess and respond to risks."Barr is set to discuss the report's findings in Congress this week. He is set to testify in front of the House Financial Services Committee on Tuesday and the Senate Banking Committee on Thursday.After increasing by $2.4 trillion between the start of the COVID-19 pandemic and the third quarter of 2021, liquid assets at banks — including cash and government-backed securities — have decreased by $1 trillion since then, the report noted. Although these assets, as a share of total holdings, remain above their 10-year average, the Fed said it is still watching the decline as a potential driver of instability. The report noted that most banks also reported declines in their levels of common equity tier 1, which is meant to absorb losses during periods of distress. Capital levels remain above their statutory minimums, the report found, but below their five-year average as of the end of 2022.Rising interest rates, a slowing of the economy and uncertainty in the banking system were all cited as causes for rising uncertainties in the banking sector, the report noted. As a result, Fed supervisors have increased the "frequency and depth of their monitoring of the funding positions of potentially vulnerable banks," the report states, including deposit trends, the diversity of funding sources, performance of investment securities and the "adequacy of contingency funding plans."In particular, examiners are looking to see if banks need to raise more capital or liquidity to deal with potential periods of stress. They also want banks to position themselves to take advantage of emergency lending facilities, including the discount window and the Bank Term Funding Program — a super discount window launched after the failures of Silicon Valley Bank and Signature Bank to provide one-year loans in exchange for government-backed bonds taken at par value.
Fed's Barr defends push for regulatory reforms in House testimony - The Federal Reserve's chief regulator defended his push to toughen capital requirements in response to recent bank failures, waving off concerns from skeptical lawmakers. Fed Vice Chair for Supervision Michael Barr testified in front of the House Financial Services Committee on Tuesday about the state of bank regulation and his recent review of the failure of Silicon Valley Bank. He was joined by leaders of the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency and the National Credit Union Administration. "We need to enhance our system of supervision to make it more agile, more quick," Barr said. "We need to also improve our system of regulation so that we have the kind of resiliency we need with capital and liquidity in the system." But some lawmakers said Barr's findings do not justify those policy conclusions. While there was broad consensus — even among regulators — that the Fed's supervisors were slow and ineffective in addressing risks at Silicon Valley Bank, many Republicans argue that the scope of the bank run that toppled the bank would have wiped out any amount of capital. Because of this, many committee members challenged Barr's call for revisiting the current tiering system for capital and liquidity requirements. "Vice Chair Barr, you've signaled your desire to go beyond reviewing supervisory failures that contributed to the recent bank failures and use this crisis to justify progressive's long-held priority to increase capital requirements and imposed new regulations on banks that predates this crisis," Rep. Patrick McHenry, R-N.C., the chair of the committee said. "You're using this crisis to justify your pre-baked ideas." Democrats, meanwhile, largely avoided the topic of capital requirements. Instead, they focused on the lack of accountability placed on bank leadership. Some committee members urged regulators to impose limitations on executive compensation and enact regulations that allowed for bonuses to be clawed back.
Fed's Bowman says banks should be ready to deal with stress -Federal Reserve Gov. Michelle Bowman called on banks to bolster their liquidity plans for dealing with unexpected stress. In a speech delivered at the Texas Bankers Association's annual conference in San Antonio, Bowman encouraged banks to create emergency liquidity plans and ensure they are prepared to act on those plans at a moment's notice. "Adverse conditions can escalate quickly, and influences beyond a bank management's control, including irrational actors, can impact your business in very short order," she said. Bowman has been skeptical of calls for regulatory reforms in response to the failures of Silicon Valley Bank, Signature Bank and First Republic this spring. She reiterated those concerns during her speech on Friday, noting that the banking system, as a whole, remains well capitalized despite the ongoing crisis. Instead of blanket reforms to how regulations are tailored, Bowman favors targeted changes that address issues directly relevant to the failures. She said the Fed should establish which issues are in need of reform by commissioning an independent, third-party review of the Silicon Valley Bank failure. In the meantime, she said regulators should emphasize readiness in the institutions they supervise to ensure they are positioned to absorb further distress. "In a time of potential stress, we need to be forward-focused on bank preparedness so that banks are positioned to address issues of concern," she said. "These include being prepared to address contingency funding needs, with a plan in place that has been tested and is ready to be executed. Regulators need to be supportive of this kind of planning."
Consensus on Fed's post-crisis reforms might be elusive --There is a lack of consensus on the Federal Reserve Board about what bank regulation and supervision should look like after the recent string of regional-bank failures. Michael Barr, the Fed's vice chair for supervision, laid out several changes he'd like to see in his report on the failure of Silicon Valley Bank last month. But remarks by Fed Gov. Michelle Bowman raised questions among policy analysts about how much of Barr's post-crisis agenda will actually be adopted.. "The report was supposed to set the tone for reforms down the road, and a lot of those reforms pointed to greater scrutiny of banks and explicitly raising capital requirements and liquidity requirements in various forms," said Derek Tang, co-founder of the Washington-based research firm Monetary Policy Analytics. "The way Bowman wrote her speech suggested that she would not just stand idly by and just go with whatever Barr puts on the table." Bowman, in a speech delivered Friday, said the findings of Barr's report do not support its conclusion that more stringent capital requirements would have prevented the failure of Silicon Valley Bank. She cautioned against a "radical reform of the bank regulatory framework" and noted her "extreme" concern about potential changes to tailoring standards. She called for the Fed to commission an independent review of Silicon Valley Bank's failure. Bowman did not reference Barr by name but said the fact that his report was a "self-assessment prepared and reviewed by a single member of the Board of Governors" presented further credibility issues for the Fed should it use the findings to support new standards or regulations. Karen Petrou, managing partner at Federal Financial Analytics, said the language of Bowman's speech indicates some fundamental disagreements within the Fed that could prove difficult to bridge. "[Fed Chair Jerome] Powell has essentially decided that he endorsed the Barr report and then you have Bowman saying only one board member saw it. Clearly, there seems to be some internal issues there in terms of transparency and collegiality," Petrou said. "Whether those continue and then how they drive what the others do is much harder to predict because it's not policy, it's personal."
Powell says monetary and financial stability tools work well together — Federal Reserve Chair Jerome Powell dismissed calls for the central bank to better separate its tools for managing monetary policy and financial stability. During an event held at the Fed's headquarters on Friday morning, Powell said the tools for managing the two responsibilities — while different in intent — ultimately work toward the same end goal. Further divorcing them from one another is neither possible nor desirable, he said. "Our tools can have separate objectives, but their effects are often not entirely independent. The tools are complementary almost all the time because financial and macroeconomic stability are so deeply intertwined," he said. "In fact, our consensus statement notes that sustainably achieving maximum employment and price stability depends on a stable financial system." Powell's remarks come amid growing criticism of the Fed's handling of monetary policy — keeping rates low through rising inflation in 2021 then rapidly tightening them last year — and its impact on banks. The failure of Silicon Valley Bank, driven largely by paper losses on its Treasury securities portfolio, brought the issue into the spotlight. Powell pointed to the immediate aftermath of Silicon Valley Bank's failure and the Fed's use of emergency liquidity provisions, including the discount window and the newly created bank-term funding program. He said those tools helped support the banking system without disrupting monetary policy and, ultimately, he expects the two efforts to be complementary. "While financial stability tools help to calm conditions in the banking sector, developments there, on the other hand, are contributing to tighter credit conditions and are likely to weigh on economic growth, hiring and inflation," he said. "So, as a result, the policy rate may not need to rise as much as it would have otherwise to achieve our goals." During the event, Powell also emphasized the importance of transparent communication by the Fed. He noted that giving clear guidance not only helps market participants brace for changes to monetary policy, it also bolsters the legitimacy of the Fed and is a necessary tradeoff for the amount of independence it enjoys.
Moderate Democrats appear skeptical of tighter bank regulations | American Banker— During a Senate Banking hearing with regulators, some centrist Democrats bristled at the idea of making sweeping policy changes in response to a recent string of bank failures. The comments, made during a Senate Banking Committee hearing Thursday morning, raise questions about how much support regulators — particularly Federal Reserve Vice Chair for Supervision Michael Barr — will have in their efforts to enhance capital requirements.Sen. John Tester, D-Mont., said the Fed has the discretion it needs under the current framework to "drop the hammer" on banks that are mismanaging risks. He also nodded to Republican concerns that additional requirements could "bleed down" to smaller banks and have a disproportionate effect on rural communities."There ain't a lot of banks on every other block. It ain't like walking down the street in L.A. or New York City, OK?" Tester said of his home state. "And my concern is that these community banks that don't have a risky portfolio will end up paying the price for a CEO [that mismanages risks]."Tester said the last time lawmakers pushed regulators to be more aggressive, following the subprime mortgage crisis of 2008, it resulted in agencies "regulating the hell out of banks to the point where we made the biggest banks bigger." He and fellow committee member Sen. Thom Tillis, R-N.C., are calling for an independent investigation into the bank failures.Sen. Mark Warner, D-Va., questioned whether higher levels of capital at Silicon Valley Bank, Signature Bank and First Republic Bank would have prevented their failures. Echoing an argument often made by Republicans and bank advocates, Warner said no amount of capital would have enabled Silicon Valley Bank to withstand the massive run on its deposits it experienced in March. "In the case of SVB, $42 billion in six hours on that run, I don't know what regulatory structure at that point — at least by the calculations that I saw, that was equivalent to 25 cents on every dollar," Warner said. "Nothing would have stopped that."
Wells Fargo's $1 billion settlement is one for the record books - Wells Fargo has reached the second largest class-action settlement in the history of the U.S. banking industry, agreeing to pay $1 billion to settle claims that it misled shareholders over its progress in fixing regulatory problems. The settlement is the latest fallout from Wells Fargo's past consumer abuse scandals, which in 2018 prompted the Federal Reserve to place an unprecedented asset cap on the bank. The San Francisco bank, which was led until 2019 by then-CEO Tim Sloan, repeatedly misled investors about when the Fed would release it from the restrictions, a group of shareholders alleged. On the night the asset cap was announced, Sloan said that Wells Fargo was on the "fast track" and could resolve the Fed's concerns that year. The $1.9 trillion asset cap is still in place today, more than five years later. The $1 billion settlement is the 17th largest class-action settlement in history — the biggest being a $7.2 billion deal with Enron Corp. Among settlements involving banks, it is rivaled only by a $2.4 billion agreement Bank of America reached with shareholders in 2012 over its purchase of the investment bank Merrill Lynch, according to ISS Securities Class Action Services. The Employees' Retirement System of Rhode Island was among the investors who brought the lawsuit. "Wells Fargo betrayed the trust of Rhode Island pensioners and now is rightly facing consequences because of that," Rhode Island General Treasurer James A. Diossa said Tuesday in a news release. Other shareholders that were part of the lawsuit include the Public Employees' Retirement System of Mississippi, and Handelsbanken Fonder AB, a Swedish bank. A Wells Fargo spokesperson said the settlement agreement resolves a lawsuit "involving the company and several former executives and a director, who have not been with the company for several years." The bank did not admit the allegations as part of the settlement, which is pending court approval. "While we disagree with the allegations in this case, we are pleased to have resolved this matter," the Wells spokesperson said.
MBA Survey: "Share of Mortgage Loans in Forbearance Decreases to 0.51% in April" -- From the MBA: Share of Mortgage Loans in Forbearance Decreases to 0.51% in AprilThe Mortgage Bankers Association’s (MBA) monthly Loan Monitoring Survey revealed that the total number of loans now in forbearance decreased by 4 basis points from 0.55% of servicers’ portfolio volume in the prior month to 0.51% as of April 30, 2023. According to MBA’s estimate, 255,000 homeowners are in forbearance plans. Mortgage servicers have provided forbearance to approximately 7.8 million borrowers since April 2020.In April 2023, the share of Fannie Mae and Freddie Mac loans in forbearance decreased 2 basis points to 0.24%. Ginnie Mae loans in forbearance decreased 7 basis points to 1.11%, and the forbearance share for portfolio loans and private-label securities (PLS) decreased 7 basis points to 0.61%.“While the number of loans in forbearance continues to dwindle, there was some deterioration in the performance of post-forbearance workouts,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “About three out of four borrowers are remaining current on their post-forbearance workouts, but this is down from the average of four out of five borrowers that was relatively consistent in 2022 and into 2023.”, “Overall servicing portfolios remain healthy, and some of the worsening monthly performance can be attributed to seasonal factors such as tax refunds that pushed up the March results and then normalized in April. MBA’s forecast calls for an economic slowdown and an increase in unemployment later this year and into 2024, which will impact loan performance.This graph shows the percent of portfolio in forbearance by investor type over time.The share of forbearance plans has been decreasing, declined to 0.51% in April from 0.55% in March.At the end of April, there were about 255,000 homeowners in forbearance plans.
Lenders are still losing money on each home loan - Mortgage lenders again lost money on each loan originated in the first quarter of the year, after recording record losses in the last quarter of 2022, according to data from the Mortgage Bankers Association (MBA). Independent mortgage banks and mortgage subsidiaries of chartered banks reported a net loss of $1,972 on each loan, the data showed. Reported losses in the fourth quarter reached more than $2,800 per loan. Data covering all of 2022 showed banks and mortgage companies lost an average of $301 for each loan they originated that year, down from an average profit of $2,339 per loan in 2021. According to a statement from Marina Walsh, the MBA’s vice president of industry analysis, consecutive quarters of losses mean industry conditions remain challenging, despite the quarterly improvement. “One silver lining from the first quarter is that production revenues improved by 40 basis points,” Walsh said. “However, costs continued to escalate with the further drop in volume and reached more than $13,000 per loan despite substantial personnel reductions,” she added. The average number of production employees per company declined from 413 in the previous quarter to 374 this quarter. Mortgage rates rose rapidly in the second half of 2022 while the Federal Reserve raised its interest rate in an effort to cool inflation. The 30-year fixed rate cleared 7 percent in November, making homes even more unaffordable for many amid already high purchase prices and significantly cooled the market.
NAR: Existing-Home Sales Decreased to 4.28 million SAAR in April; Median Prices Declined 1.7% YoY - From the NAR: Existing-Home Sales Faded 3.4% in April -Existing-home sales decreased in April, according to the National Association of REALTORS®. All four major U.S. regions registered month-over-month and year-over-year sales declines.Total existing-home sales – completed transactions that include single-family homes, townhomes, condominiums and co-ops – slid 3.4% from March to aseasonally adjusted annual rate of 4.28 million in April. Year-over-year, sales slumped 23.2% (down from 5.57 million in April 2022)....Total housing inventory registered at the end of April was 1.04 million units, up 7.2% from March and 1.0% from one year ago (1.03 million). Unsold inventory sits at a 2.9-month supply at the current sales pace, up from 2.6 months in March and 2.2 months in April 2022.This graph shows existing home sales, on a Seasonally Adjusted Annual Rate (SAAR) basis since 1993. Sales in April (4.28 million SAAR) were down 3.4% from the previous month and were 23.2% below the April 2022 sales rate. Sales Year-over-Year and Not Seasonally Adjusted (NSA) The second graph shows existing home sales by month for 2022 and 2023. Sales declined 23.2% year-over-year compared to April 2022. This was the twentieth consecutive month with sales down year-over-year. The third graph shows existing home sales for each month, Not Seasonally Adjusted (NSA), for a few selected periods. Black and light Purple are the maximum sales per month during the bubble (2005) and the minimum sales during the bust (2008 - 2011). The most recent five years are shown (2019 through 2023). Sales NSA in April (336,000) were 27.4% below sales in April 2022 (463,000). On an NSA basis for the month of April, sales were 3.7% below the previous record low during the housing bust (349,000 in April 2009). This decrease in sales, NSA, was similar to change in the markets I track each month. The fourth graph shows nationwide inventory for existing homes.
Home Sales Plunge, Supply Rises, Prices Drop Year-over-Year Most since 2012. Even Investors Pull Back by Wolf Richter - OK, it’s spring selling season, the famously best times of the year to sell a home, because that’s when prices rise and sales rise due to hot demand from home buyers who were hiding out in the winter. But this year? The median price of all types of previously owned houses, condos, and co-ops whose sales closed in April fell year-over-year by 1.7% to $388,800, the third month in a row of year-over-year declines, according to the National Association of Realtors. A debacle we haven’t seen since February 2012, when the market emerged from Housing Bust 1. From the peak last June, the median price declined by 6% (historic data via YCharts): For single-family houses, the median price fell 2.1% year-over-year, the third year-over-year decline in a row, to $393,300. For condos, the median price still ticked up 0.7% year-over-year, to $348,000. But it’s still spring selling season when prices always rise from one month to the next. Even during Housing Bust 1, the median price often rose month to month during spring selling season, and sometimes by quite a bit. And the median price in April was up from March, but that increase was smaller than the increase in April 2022 (+4.3%). Hence the larger year-over-year decline (historic data via YCharts): Sales of all previously owned homes fell by 3.4% in April from March, to a seasonally adjusted annual rate of sales of 4.28 million homes, solidly entrenched in the dismal levels of Housing Bust 1./p>
Renter Nation Rout - Multi-Family Home Permits Plunged Again In April As Rates Rose - Following March's plunge in building permits (and drop in starts), analysts expected a mixed picture for April with starts lower again but permits unchanged. The reality was different with housing starts jumping 2.2% MoM (-1.4% MoM exp but March's data was revised down massively from -0.8% to -4.5%) and permits fell 1.5% MoM (vs unch exp) but also a major revision (upward from -8.8% to -3.0%)...Given the massive revisions, this data seems utterly useless, but this leaves the total levels for starts and permits back at pre-COVID levels (despite rates being massively higher)...The unexpected drop in permits was triggered by a second straight monthly plunge in multi-family units, down 9.7% MoM (single-family unit permits grew 3.1% MoM) Graphs: Bloomberg On the starts side, single-family dominated...
- Single-family starts 846K SAAR, up 1.3% from 833K, and the highest since Dec 22
- Multi-family starts 542K SAAR, up 5.2% from 515K and in a narrow range over the past year
But on the permits side it was much more mixed...
- April Single-family permits 855K SAAR, up 3.1% from 829K, and the highest since Sept 22
- April Multi-family permits 502K SAAR, down 9.7% from 556K and the lowest since May 21
The re-rise in mortgage rates certainly doesn't bode well for the next step in housing permits or builds... We suspect The Fed wants more 'pain' for the housing market than we have seen so far. Finally, if you still believe in miracles, spot the odd one out below...
April Housing Starts: Near Record Multi-Family Under Construction - From the Census Bureau: Permits, Starts and Completions: Privately‐owned housing starts in April were at a seasonally adjusted annual rate of 1,401,000. This is 2.2 percent above the revised March estimate of 1,371,000, but is 22.3 percent below the April 2022 rate of 1,803,000. Single‐family housing starts in April were at a rate of 846,000; this is 1.6 percent above the revised March figure of 833,000. The April rate for units in buildings with five units or more was 542,000.Privately‐owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 1,416,000. This is 1.5 percent below the revised March rate of 1,437,000 and is 21.1 percent below the April 2022 rate of 1,795,000. Single‐family authorizations in April were at a rate of 855,000; this is 3.1 percent above the revised March figure of 829,000. Authorizations of units in buildings with five units or more were at a rate of 502,000 in April.The first graph shows single and multi-family housing starts since 2000 (including housing bubble).Multi-family starts (blue, 2+ units) increased in April compared to March. Multi-family starts were down 12.2% year-over-year in April. Single-family starts (red) increased in April and were down 27.9% year-over-year.Note that the weakness over the last year has been in single family starts (red). The second graph shows single and multi-family starts since 1968. This shows the huge collapse following the housing bubble, and then the eventual recovery - and the recent collapse in single-family starts.Total housing starts in April were slightly above expectations, however, starts in February and March were revised down, combined.The third graph shows the month-to-month comparison for total starts between 2022 (blue) and 2023 (red).Total starts were down 22.3% in April compared to April 2022. Starts have been down year-over-year for twelve consecutive months, and I expect starts to be down significantly this year - although the year-over-year comparisons will be easier later in the year.The fourth graph shows housing starts under construction, Seasonally Adjusted (SA). Red is single family units. Currently there are 698 thousand single family units (red) under construction (SA). This was down in April compared to March, and 133 thousand below the recent peak in May 2022. Single family units under construction have peaked since single family starts declined sharply. The number of single-family homes under construction will decline further in coming months.Blue is for 2+ units. Currently there are 977 thousand multi-family units under construction. This is the highest level since September 1973! This is close to the all-time record of 994 thousand in 1973 (being built for the baby-boom generation). For multi-family, construction delays are a significant factor. The completion of these units should help with rent pressure.Combined, there are 1.675 million units under construction, just 35 thousand below the all-time record of 1.710 million set in October 2022.
NY Fed Q1 Report: Household Debt Increases, Mortgage Loan Growth SlowsSoaring Rates Lead To Slowest Growth In Household Debt In Two Years As Mortgage Originations Plummet (Fed graphs throughout) Total household debt rose by $148 billion, or 0.9%, to $17.05 trillion in the first quarter of 2023, according to the latest Quarterly Report on Household Debt and Credit. This was the weakest quarterly debt increase in two years... ... hardly a good look for an economy that is entirely credit-driven, and may explain why the Citi US eco surprise index just dipped negative after a 4 month stretch in the green. A detailed look at current debt balances by component:
- Mortgage balances shown on consumer credit reports increased by $121 billion during the first quarter of 2023 and stood at $12.04 trillion at the end of March, a modest increase.
- Balances on home equity lines of credit (HELOC) increased by $3 billion, the fourth consecutive quarterly increase following a nearly 13 year declining trend; the outstanding HELOC balance stands at $339 billion.
- Credit card balances were flat in the first quarter, at $986 billion, bucking the typical trend of balance declines in first quarters.
- Auto loan balances increased by $10 billion in the first quarter, continuing the upward trajectory that has been in place since 2011.
- Other balances, which include retail cards and other consumer loans, increased by $5 billion.
- Student loan balances now stand at $1.604 trillion, up by $9 billion from the previous quarter. In total, non-housing balances grew by $24 billion
While total debt hit another record high, the impact of soaring interest rates was felt with originations sharply lower across the board:
- Mortgage originations, which include refinances, dropped sharply in the first quarter of 2023 to $324 billion, the lowest level seen since 2014, a quarter that was unusually low due to the “taper tantrum”
- The median credit score for newly originated mortgages decreased slightly to 765.
- What is remarkable is the collapse in mortgage originations in the highest FICO score bucket, which drove the housing market since 2020, and which has now cratered.
- The volume of newly originated auto loans was $162 billion, a reduction from pandemic-era highs but still elevated compared to pre-Covid volumes.
- The median credit score on newly originated auto loans ticked up 10 points, to 721, suggesting some tightening.
- Aggregate limits on credit card accounts increased by $119 billion, representing a 2.7% increase from Q4 2022 levels.
- Limits on home equity lines of credit were up by $9 billion in the first quarter.
Also not surprising is that in a time of near record high rates, the share of current debt becoming delinquent increased for most debt types. The delinquency transition rate for credit cards and auto loans increased by 0.6 and 0.2%, respectively approaching or surpassing their pre-pandemic levels.
Household Debt as % of Disposable Income Fell to Good-Times Lows, on Much Higher Incomes Despite the OMG Headlines -- by Wolf Richter - New delinquencies way below the pre-pandemic lows. Bankruptcies at record lows. The OMG stuff in the media about household debt is funny. A big to-do is being made out of total household debt in the first quarter rising to a new record and exceeded $17 trillion for the first time, OMG. But the burden of debt matters in relation to income, and these are inflationary times, and there has been a lot of inflation, including wage inflation, and incomes went up, and disposable income (income from all sources minus taxes and social insurance payments) went up, and it went up proportionately faster than household debt. So hang on to your seat: Despite all the breathless OMG headlines about household debt, total household debt as percent of disposable income actually fell in Q1 to 86.5%, just a hair above the pre-pandemic lows of 85%. This dip occurred because total household debt inched up 0.9% in Q1 from Q4, to $17.05 trillion, but disposable income jumped by 3.0%: The household credit data is from the New York Fed. The disposable income data is from the Bureau of Economic Analysis. Note the stimulus payments in 2020 and 2021 that for the quarters in which they occurred heavily inflated disposable income, and thereby pushed down household debt as percent of disposable income. This was the free-money era of the pandemic which caused delinquencies, foreclosures, and bankruptcies to plunge to record lows. The record high burden of debt-to-disposable-income occurred in Q1 2008 at 116%, after a five-year-long steep run-up when consumers went binging on debt. The binge then came apart during the Great Recession and the debris got cleaned up during the years that followed. Recessions have that kind of cleansing function, where the mess from the excesses gets written off. But this time around, consumers are relatively little indebt compared to their incomes. We discussed this yesterday in detail with credit cards, with credit card debt burden having dramatically declined over the years, with delinquencies at around the Good Times lows before the Pandemic, and with third-party collections at record lows. If we get carried away with these absolute numbers of debt levels in an inflationary world, we will be tempted to think that the consumer is “tapped out,” and we will be tempted to underestimate to what extent consumers are able to spend and help drive inflation forward. Total household debt includes mortgages, HELOCs, credit card balances, other revolving balances, auto loans, and student loans. Here is the OMG chart:
Retail Sales Increased 0.4% in April - On a monthly basis, retail sales were up 0.4% from March to April (seasonally adjusted), and sales were up 1.6 percent from April 2022. From the Census Bureau report: Advance estimates of U.S. retail and food services sales for April 2023, adjusted for seasonal variation and holiday and trading-day differences, but not for price changes, were $686.1 billion, up 0.4 percent from the previous month, and up 1.6 percent above April 2022. ... The February 2023 to March 2023 percent change was revised from down 0.6 percent to down 0.7 percent. This graph shows retail sales since 1992. This is monthly retail sales and food service, seasonally adjusted (total and ex-gasoline). Retail sales ex-gasoline were up 0.5% in April. The second graph shows the year-over-year change in retail sales and food service (ex-gasoline) since 1993. Retail and Food service sales, ex-gasoline, increased by 3.3% on a YoY basis. Sales in April were below expectations, and sales in March were revised down.
Post-Covid, post-bankruptcy Hertz is fast becoming one of the most important EV companies -- Consumers may be on the fence about whether it's yet time to buy EVs, but car-rental giant Hertz Global Holdings has made the leap. Markets boosted shares of Estero, Fla.-based Hertz after its recent earnings report, as first-quarter revenue hit $2 billion and per-share earnings of 39 cents handily beat forecasts of 21 cents a share. But behind the short-term numbers is the company's long-term adjustment to big changes in transportation, tourism and energy: Hertz is going electric. The company plans to have 25% of its 500,000 vehicle fleet be electric by the end of 2024, up from 10 percent now, as it accelerates purchases under its deals to buy 330,000 vehicles from Tesla , Polestar , and General Motors. . These deals began to roll out last year, after Hertz's first Teslas hit the road in 2021 and experiments with rental EVs extended back over the past decade. GM vehicles are beginning to arrive in quantity now, Hertz CEO Stephen Scherr said on the company's earnings call. "At the end of [March], we had about 50,000 electric vehicles in our fleet, comprising approximately 10% of total cars," Scherr said. Recent price declines in the market as Tesla started a war for market share in a softer economy — though it recently moved prices back up — have helped the rental car company with its buying spree. "I think the drop in price on EVs is an encouraging proposition for us in that if I'm 10% moving to 25%, and I'll get higher from there, I'm obviously a happier and a better buyer at a lower price point than not," Scherr said. The company is forecasting nearly 2 million EV rentals in 2023, approximately 5 times the number of last year, he said.
Average Age Of American Cars Hits Record High --For the sixth consecutive year, the average age of vehicles in the US has risen, indicating that Americans are holding onto their cars for longer than ever before. According to data collected by S&P Global Mobility, the average age of passenger vehicles on the road has reached a record high of 12.5 years. This trend, which began in 2017, has accelerated in a post-Covid world as new car prices soared due to shortages, and more recently, borrowing costs have skyrocketed, causing an affordability crisis. However, this trend might also suggest automobile manufacturers are producing higher-quality vehicles that break down less often. "This is the sixth straight year of increase in the average vehicle age of the US fleet. It also reflects the highest yearly increase since the 2008-2009 recession, which caused an acceleration in average age beyond its traditional rate due to the sharp decline in new-vehicle sales demand," S&P Global Mobility pointed out. Todd Campau, associate director of aftermarket solutions for S&P Global Mobility, noted a confluence of factors from the pandemic supply chain snarls to soaring interest rates in 2022 "would provide further upward pressure on the average vehicle age." S&P Global Mobility forecasts new vehicle sales will be 14.5 million units in 2023, which is expected to slow the average age growth rate in the coming year. "While pressure will remain on average age in 2023, we expect the curve to begin to flatten this year as we look toward returning to historical norms for new vehicle sales in 2024," Campau said. A plethora of used cars on roadways will benefit the vehicle service industry. An aging fleet means vehicles will require more repairs. Campau said
Empire Fed Manufacturing Survey Collapsed In April - Biggest Drop Ever (Ex-COVID) -After the stunningly surprising upside surge in April, The Empire Fed Manufacturing Survey has collapsed back to reality in May, crashing 42.6 points to -31.8 from +10.8 (dramatically worse than the -19.0 expected). Outside of the COVID lockdowns, this is the biggest MoM drop ever...The swings vs expectations is clear in the chart below... April was a total headfake!Most problematically, Stagflation is screaming loudly again...
- The orders index also slid by the most since April 2020, hitting the lowest level since the start of the year. The shipments gauge plummeted more than 40 points.
- The New York Fed’s gauge of prices paid increased after matching the lowest level since 2020 a month earlier. The measure of prices received was little changed.
- The employment gauge indicated headcount shrank, though by less than the prior month. Hours worked also contracted.
- The index of factory inventories shrank to the lowest since October 2020, while unfilled orders also eased.
Industrial production increased in April to 103.0. This is above the pre-pandemic level. Industrial production was above consensus expectations, however previous months were revised down.
Disney scuttles $1B Florida development plan amid feud with DeSantis — Walt Disney Co. officially called off plans Thursday to develop a $1 billion complex in Orlando as the entertainment giant continues to clash with Florida Gov. Ron DeSantis. The move, announced by chair of Disney’s parks Josh D’Amaro in a note to staff, nixes the possibility of some 2,000 Disney workers relocating to Florida as part of a plan that has been in the works for years to build new office space in a venue called Lake Nona, cashing in on a reported $570 million in tax breaks. Disney officials didn’t mention DeSantis or their ongoing feud with the state in announcing the decision, instead claiming that “new leadership and changing business conditions” were behind the massive shift. “This was not an easy decision to make, but I believe it is the right one,” said D’Amaro in his email. The scaling back comes amid a bitter fight — and legal battle — between Disney and Florida’s Republican leaders, spurred by the company’s public objections to a law restricting how sexual orientation can be taught in schools, known by critics as the “Don’t Say Gay” bill. DeSantis, who is widely expected to run for president, has led the charge to crack down on Disney and other companies he considers “woke” operating in Florida. In the state’s heaviest move, Florida stripped Disney of its self-governing status over its Orlando theme parks — a power struggle currently playing out in federal court.
Supplier ARC Fights NHTSA Request To Recall 67 Million Airbags For Faulty Inflators - In one of the most sprawling auto recall attempts in recent memory, the National Highway Traffic Safety Administration (NHTSA) is calling for 67 million airbag inflators to be recalled after it was found that they may "rupture and injure drivers and passengers". The inflators were made by ARC Automotive, Inc. and had been manufactured for use in the U.S. auto market during the 18-year period before January 2018, according to Engadget. They were then used by six different airbag manufacturers, the report says. The NHTSA argued in a letter to ARC that there were 9 incidents where an inflator ruptured. "Air bag inflators that project metal fragments into vehicle occupants, rather than properly inflating the attached air bag, create an unreasonable risk of death and injury," it wrote. In response, ARC wrote back: "After nearly eight years of intensive scrutiny, none of [the manufacturers using its products] has identified a systemic or prevalent defect across this inflator population." ARC also says it tested 918 inflators that were taken from vehicles in salvage yards, wherein none of them exploded after being subjected to testing. ARC has also argued that the NHTSA's results came from "one-off" anomalies that had already been addressed using lot-specific recalls. As Engadget notes, companies like GM have already issued recalls for individual lots of vehicles for "suspect airbag inflator[s]". But the agency has told ARC that they should be prepared to furnish "additional analysis of the problem beyond ARC's past presentations" if they want to make the case to abandon the recall.
House passes bill to bar officials convicted of corruption from holding public office – The Illinois House passed a bill Friday that would bar anyone convicted of a felony, bribery, perjury or misuse of public funds while serving as a public official from ever being elected to a state or local office again. That measure was introduced as an amendment to House Bill 351 on Thursday and moved quickly through the House Ethics and Elections Committee Friday morning with bipartisan support. It then went to the House floor where it passed 106-0. Current law bars anyone convicted of a felony from holding a state office until they’ve completed their sentence. And a provision of the Illinois Municipal Code bars anyone who has ever been convicted of a felony from holding an elected municipal office. But those people are free to run for the General Assembly, governor or any other constitutional office once they’ve completed their sentence. “I think it's important to note that Illinois is the only state in the nation that bars an individual from running for office based on the office sought, as opposed to the crime committed,” said the bill’s sponsor, Rep. Curtis Tarver, D-Chicago. Former Democratic Gov. Rod Blagojevich was barred from running for state or local office in Illinois after his impeachment in 2009, but the ban was specific to him. HB 351 would allow exceptions for people whose convictions have been reversed, if they are restored the right to run by terms of a pardon, if they’ve received a restoration of rights by the governor or their rights are otherwise restored by law. It also calls for setting up a task force to review current laws and policies about disqualification standards and make recommendations as to what criminal conduct should preclude an individual from holding public office. The measure comes less than two weeks after the conclusion of the “ComEd Four” trial in which four former officials of Commonwealth Edison were convicted of engaging in a yearslong scheme to bribe former House Speaker Michael Madigan. They were convicted of giving lobbying contracts and no-work jobs to Madigan allies in exchange for favorable legislation in Springfield. Madigan himself is scheduled to go on trial starting April 1, 2024, on racketeering charges related to his dealings with ComEd as well as his similar alleged dealings with AT&T Illinois, which agreed to pay a $23 million fine in a deferred prosecution agreement in October. Madigan is also accused of improperly wielding his power as both House speaker and head of the state’s Democratic Party to enrich himself via his real estate law firm.
San Francisco DA releases video of Walgreens security guard fatally shooting alleged shoplifter (AP) — San Francisco’s district attorney Monday released surveillance video showing the fatal shooting of a suspected shoplifter by an on-duty Walgreens security guard, along with other footage and documents that she said support her decision not to file charges against the guard. District Attorney Brooke Jenkins released the information amid public outcry over the April 27 death of Banko Brown, a 24-year-old who was not armed, outside a downtown Walgreens. Last week, the Board of Supervisors approved a resolution urging her office and the police department to release more evidence. She cited self-defense in her decision not to charge the guard, Michael Earl-Wayne Anthony. But the release of surveillance video did not appear to quell critics in a city dogged by brazen shoplifting and wide division over the appropriate responses to crime, particularly when the suspect is homeless or impoverished. The footage, which does not have sound, shows Brown heading for the door with a bag in his hand when he is stopped by Anthony, who then punches him repeatedly. The two struggle until Anthony pins Brown to the ground. Meanwhile, shoppers continued to enter the store during the confrontation. When Anthony lets Brown go, Brown picks up the bag and moves to exit the store. He turns around and appears to step toward Anthony, at which point Anthony lifts his gun and shoots once, sending Brown falling back onto the ground outside. In a police interview, Anthony said he told Brown to put the items back, but Brown was aggressive and fought to keep the items. He said he told Brown he would let him go if he calmed down, and that Brown kept saying he was going to stab him. A knife was not found on Brown. Anthony said he let Brown go, but he drew his gun and kept it pointed at the ground just in case Brown attacked. He said he shot when Brown advanced, not realizing Brown would just spit at him.
Authorities: Mentally ill man who attacked congressional staffers has violent history (AP) — A mentally ill man threatened a woman with a metal baseball bat, chasing her through a northern Virginia neighborhood, before attacking U.S. Rep. Gerry Connolly’s office, shattering windows and striking two women, including an intern on her first day on the job, authorities said. Staffers then managed to shelter in an inner office until officers arrived, within five minutes. Connolly said they used a stun gun to subdue the man, identified as Xuan-Kha Tran Pham, 49, of Fairfax. He was held without bond at the Fairfax County Adult Detention Center on charges of malicious wounding and aggravated malicious wounding. It was not immediately clear if he had an attorney pending his first appearance Tuesday. Pham, 49, has been violent before, attacking police officers last year. His father, Hy Pham, told The Washington Post his son is schizophrenic and had dealt with mental illness since his late teens. He said he had been trying, without success, to arrange mental health care for his son. The father could not immediately be reached by The Associated Press. None of the injuries Pham inflicted were life threatening, but Connolly said it shows how vulnerable public servants are in an era when political rhetoric has become more bellicose. “I have no reason to believe that his motivation was politically motivated, but it is possible that the sort of toxic political environment we all live in, you know, set him off, and I would just hope all of us would take a little more time to be careful about what we say and how we say it,” the veteran Democratic congressman, who wasn’t in the office at the time, said in an interview.
Supreme Court Sides With Inmate Who Wants To Be Executed With Nitrogen Gas - The Supreme Court sided on May 15 with a condemned man in Alabama who wants to be executed by nitrogen gas instead of lethal injection, refusing to set aside a stay of execution by lethal injection previously granted by the U.S. Court of Appeals for the 11th Circuit. Justices Clarence Thomas and Samuel Alito dissented from the Supreme Court’s new unsigned order in Hamm v. Smith, court file 22-580. The court did not explain why it declined to grant the petition filed by the state. Alabama was prepared to execute Kenneth Eugene Smith, 57, on Nov. 17, 2022, by lethal injection. But state officials struggled to gain adequate access to his veins before the death warrant expired. Alabama has had problems with its lethal injection procedures. Last year, the state put executions on hold while it reviewed various difficulties it experienced in multiple cases when it tried to carry out lethal injections. In November 2022, Republican Gov. Kay Ivey said the pause was needed “to make sure that we can successfully deliver that justice and that closure” for victims’ families. In February of this year, Ivey said the review was complete and called for executions to resume. At the time, Department of Corrections Commissioner John Hamm said his agency added medical personnel and conducted trainings. “In addition, the Department has ordered and obtained new equipment that is now available for future executions,” he said, according to CNN. Under new rules, courts will allow the governor to establish a time frame for the execution that state officials say “will make it harder for inmates to ‘run out the clock’ with last-minute appeals and requests for stays of execution.”
Montana could sign law defining sex, raising transgender rights concerns (Reuters) - Montana could become the fourth state to pass a law defining sex as strictly "male" or "female" and unchangeable, raising concern among LGBTQ advocates who see such legislation as the next trend in Republican bills that limit transgender rights. Governor Greg Gianforte, who has already authorized a bill to ban gender-affirming treatments for transgender minors this year, has until Sunday to sign or veto the new legislation, Senate Bill 458, or return it to the legislature for amendments. He could join fellow Republican governors in Tennessee and North Dakota, who signed similar laws this year. In Kansas, the Republican-dominated legislature overrode the veto of Democratic Governor Laura Kelly to enact its law. Republican sponsors of the bills say they are not meant to discriminate against anyone, stressing that discrimination is already illegal. "It seems 20 years ago nobody needed a definition of sex because everyone understood what it meant. But now there is a discrepancy about, 'Is sex gender and can I change it?' But sex you can't change. Sex is just a fact," said Montana state Senator Carl Glimm, who introduced SB 458.
Tennessee third graders face summer school if tests are below average -Eight-year-olds in Tennessee take a state assessment that determines their summer plans: regular summer time off from school or intensive summer camp to earn their promotion to fourth grade.The new law has been a huge source of concern for families and schools as administrators expected a flood of students to be required by law to repeat third grade.The Tennessee Legislature offered some clarity and relief, but that doesn't help the kids in school right now. As test scores come in soon, here's what families need to need to know about the new law and how students' promotion is handled.In January 2021, Tennessee legislators passed a law requiring third graders who do not score “met” or “exceeded expectations” on TN Ready tests to attend a summer reading camp or tutoring program, or to repeat the grade.English language learners and those who have already been held back a grade are exempt.Students at the end of third grade right now are facing this issue.After pushback, the law was tweaked. Next year, third graders won't have to face the worry of one test determining their fate. Gov. Bill Lee signed a law that will go into effect for the 2023-24 school year altering how third- to fourth-grade promotions are handled.The new law takes another benchmark test into account when considering whether kids get held back, streamlines the retention appeals process and tracks summer school, tutoring and retention data to allow the state to measure the policy’s success. Students must receive adequate growth scores to qualify for promotion to fourth grade.Beginning this upcoming year, a student in the third grade will not be promoted to the next grade level unless the student is determined to be proficient in reading.Students are tested in four subject areas: English language, math, social studies and science. But for third graders, promotion to fourth grade is dependent solely on their English language scores.For grades 3-5, the assessment period in the 2022-23 school year was April 17-May 2. Test scores are expected back by May 19. Students who score below or approaching proficiency can take a retest between May 22 and June 5. Children who score as approaching proficiency must complete one of the following to move on to fourth grade:
- Retest and score on grade level during the May 22-June 5 retest window.
- Enroll in summer school, meet 90% attendance and show “adequate growth” (a term the state board of education is still working to define), or students can have a free state-provided tutor for the entirety of fourth grade.
Third graders who score below proficiency have the following options to move on:
- Retest and score on grade level, with a retest window of May 22-June 5.
- Enroll in summer school with 90% attendance rate and have a free state-provided tutor for the entirety of fourth grade.
Students with special education accommodations and those whose second language is English are exempt from being held back. Additionally, students who have already repeated third grade once will not be made to repeat again.
Fired Teachers Who Refused COVID Vaccine To Get Full Reinstatement And Back Pay --Three Rhode Island teachers who were fired for refusing the COVID-19 vaccine have been offered their jobs back with full back pay after reaching a settlement with the school district.Teachers Stephanie Hines, Brittany DiOrio, and Kerri Thurber were terminated from their positions in Barrington Public Schools after they had requested a religious exemption after the school mandated employees get the vaccine.Last week, their attorney, Greg Piccirilli, and the school district said they had reached a settlement, allowing the teachers to return to their jobs. They are also each entitled to $33,333 in damages along with their back pay. DiOrio will get $150,000, Thurber will get $128,000, and Hines will receive $65,000 under the agreement.“The three teachers have the opportunity to return to teaching positions within the Barrington School District should they choose to do so, at the steps they would have been at had they worked continuously,” the Barrington Public Schools district said in a statement on May 11.In a statement to the Boston Globe, Piccirilli said that his clients are “extremely gratified that they’ve been vindicated in their position,” adding that he will get $50,000 in attorneys fees as part of the settlement. “A lot of people were dismissive and skeptical of their claims at the time,” he told the Boston Globe. “They went through a lot of personal trauma dealing with this. Their faith has gotten them through this.”Meanwhile, Barrington Public Schools told the Providence Journal that it reached the settlement because the litigation would likely put a drag on the school’s resources and funding. It attempted to distance itself from its own vaccine mandate by claiming that it was dealing with the spread of COVID-19, although there is a growing body of evidence that shows the vaccines do not prevent the spread of the virus.“Our district was navigating an unprecedented health pandemic and leaned on the important recommendations by the CDC and the Rhode Island Department of Health to ensure the safety of our students and school community,” the Barrington School Committee said Thursday, according to the outlet. “Our then-policy helped combat the pressing public health crisis of the time, while keeping schools open, and [was] one that nearly all faculty and staff adhered to.”
AP analysis: Most beauty school programs would be in jeopardy under US proposal --- Under a new proposal intended to protect students, nearly two-thirds of cosmetology certificate programs at for-profit colleges would would risk losing federal funding. So would over a third of such programs in massage therapy and dental support services.Overall, 22% of programs at for-profit schools would face a federal crackdown, according to an Associated Press analysis of data released by the U.S. Education Department.The rules proposed Wednesday by the Biden administration aim to punish programs that leave graduates underpaid or buried in loans. Borrower advocates say the findings reflect the realities of higher education — that for-profit colleges are more likely to leave graduates with lower incomes, heavier debt and an increased risk of defaulting on their student loans. When the Obama administration proposed an earlier version of the rule in 2014, it also found that the vast majority of failing programs were at for-profit colleges. Cosmetology and health care have long been money makers for for-profit colleges, but offer little return for graduates, said Robert Shireman, director of higher education for the Century Foundation and a former Obama official who created an earlier version of the rule, known as gainful employment.“People tend to think that going into healthcare means you’re going to make good money. It’s true if you’re a nurse or a doctor but there are a lot of low paying jobs in healthcare,” Shireman said. He said “it does not make sense” for students to use federal loans at cosmetology schools, which he said are better funded through job training systems.The new rules, which would take effect no sooner than July 2024, apply only to for-profit colleges and to non-degree programs at traditional universities. They would assess programs based on whether graduates carry heavy student debt compared to their earnings and whether graduates earn more than adults with only a high school diploma.
DeSantis defunds diversity programs at Florida public colleges (Reuters) - Florida Governor Ron DeSantis signed a bill on Monday banning tax dollars from being used in state colleges for diversity, equity and inclusion programs (DEI) in a sweeping measure that also places restrictions on classroom discussion of race. While DEI programs are meant to assist in building racial, social and religious diversity among university faculty and students, the governor and other conservative critics have said they promote left-wing politics and sow racial divisions on campuses. "DEI is better viewed as standing for discrimination, exclusion and indoctrination," DeSantis said at the bill signing on the campus of New College of Florida, a public liberal arts college, on Monday. "And that has no place in our public institutions." The new law largely reflects a legislative program announced by DeSantis in January and represents another front in the Republican war against an agenda many conservatives believe those on the left are trying to push on U.S. public education. DeSantis, who is expected to launch a presidential bid next month, has positioned himself as a leader in that fight. The legislation restricts how gender and race are taught on campuses, requiring such lessons to be reviewed by the university trustees to prevent programs that "distort significant historical events" or teach "identity politics," the governor said. Opponents of the legislation include many higher education experts and free speech advocates, who have characterized the efforts as an attack on academic freedom. On the campus of New College of Florida in Sarasota, a traditionally liberal-leaning university where the governor has recently appointed a conservative-leaning board of trustees, the bill signing was greeted with loud chants from student protesters. DeSantis said students who want to study diversity subjects should look at universities outside the state. "Florida's getting out of that game," he said.
University of California considers hiring undocumented students despite federal ban - The University of California is moving toward employing undocumented students who lack work permits, teeing up a possible test of decades-old U.S. legal norms. The UC Regents voted Thursday to create a working group that will explore hiring such workers and advise the board on a decision, which it expects to make by the end of November. The board took the vote after meeting for more than two hours behind closed doors with attorneys. “I want to do the best we can for our students, but I also realized that it does take time,” said board Chair Richard Leib. “We have to go through and analyze and talk to everybody, and make sure we’re doing this the right way, so we have the best case forward.” Allowing campuses to employ such workers could change thousands of students’ lives — and invoke a bevy of court challenges. The ten-campus system would be the first to openly skirt a law then-President Ronald Reagan signed in 1986 that banned employers from hiring people who lack federal work authorization. A group of students and progressive legal scholars — led by UC law school deans and professors — have argued the Immigration Reform and Control Act does not apply to states. They’ve for months pressured the university’s governing board to allow campuses to hire undocumented students, who’ve been placed in a precarious position since a federal judge in 2021 blocked the Biden administration from approving new recipients of the Deferred Action for Childhood Arrivals program.“The federal courts have consistently recognized that states have broad power to determine the appropriate qualifications for state positions, including qualifications related to immigration status,” the co-directors of the UCLA Center for Immigration Law and Policy wrote in a letter explaining their theory in September.The prestigious university system of nearly 295,000 students already provides legal advice, financial aid and counseling to undocumented students. California’s Democratic-led Legislature has passed a series of laws since 2001 extending in-state tuition to more undocumented students and making it easier for them to apply for state financial aid, in sharp contrast to Republican-led states.The latest move by a higher education system with international visibility could be emulated by other universities that market themselves as immigration sanctuaries.
Labor cop tackles USC, NCAA in athletes’ rights case - The University of Southern California, a major sports conference and the governing body of big-time collegiate athletics are violating federal labor law by restricting athletes’ social media activity, the National Labor Relations Board alleged on Thursday.An NLRB official in Los Angeles issued a complaint against USC, the Pac-12 Conference and the National Collegiate Athletics Association in a case that could clear the way to unionization — at least at private universities that are subject to National Labor Relations Act.The board wants an administrative law judge to order the NCAA, USC and Pac-12 to “cease and desist from misclassifying” players as student-athletes and instead label them as employees.The NLRB’s complaint alleges the three entities maintained illegal “handbook rules” that violate federal statute, and misclassify both scholarship and walk-on athletes in football and basketball as non-employees, thereby denying them their right to unionize.The labor board specifically targeted USC social media and interview policies that require athletes to “be positive,” use private posts, and “don’t do anything to embarrass yourself, the team, your family or the University.”“The conduct of USC, the Pac-12 Conference, and the NCAA, as joint employers, deprives their players of their statutory right to organize and to join together to improve their working and playing conditions if they wish to do so,” NLRB General Counsel Jennifer Abruzzo said in a statement. “Our aim is to ensure that these players, as workers like any other, can fully and freely exercise their rights.”The National College Players Association filed an unfair labor practice charge with the NLRB in early 2022. Ramogi Huma, the association’s executive director, said on Thursday that top college football and basketball players “are exploited physically and economically by NCAA sports.”“One of the reasons this injustice continues to plague all athletes in these sports nationwide is because NCAA sports has denied them rights under labor law,” Huma said in a statement. “This process will prove that these athletes are employees under labor law and are entitled to all rights and protections afforded to other employees in America.”
Washington state lawmakers seek to avoid decriminalizing drugs (AP) — Washington lawmakers are considering a major new drug policy in a special session that begins Tuesday, a day after reaching a compromise that Democratic and Republican leaders say strikes a balance between public order and compassion for those with substance abuse issues. The bipartisan agreement would avoid making the state the second in the U.S. to decriminalize the possession of controlled substances. Gov. Jay Inslee called lawmakers back to the Washington Statehouse for a special session after they failed to pass one before adjourning late last month. Under a tentative deal, intentional possession or public use of small amounts of illegal drugs would be a gross misdemeanor, punishable by up to six months in jail for the first two offenses and up to a year after that. But police and prosecutors would be encouraged to divert cases for treatment or other services, and the measure provides millions of additional dollars for diversion programs and to provide short-term housing for people with substance use disorders.
North Carolina lawmakers to vote on overriding veto of 12-week abortion ban - (Reuters) - North Carolina's Republican-controlled state legislature on Tuesday is expected to vote to override Democratic Governor Roy Cooper's veto of a bill banning most abortions after 12 weeks, unless one Republican lawmaker sides with the governor and upholds the veto. The legislature in early May passed the measure, which would cut the window for most abortions in the state back from 20 weeks. It would also curtail access to the procedure for millions of women across the U.S. South where a number of states have greatly restricted abortions. Cooper vetoed the bill at a rally in Raleigh, the state capital, on Saturday, where he asked Republican lawmakers who had previously expressed support for reproductive rights to let his veto stand. "If just one Republican keeps that promise made to the people, then we can stop this ban," Cooper said. The legislature can override a veto with three-fifths of the members present in each chamber. Republicans hold a majority of exactly three-fifths in each chamber, 72-48 in the House and 30-20 in the Senate.
88% of Americans still support MMR vaccine for kids, but many parents question benefits -- As in the past 4 years, the vast majority of Americans say they believe in the value of childhood vaccination against measles, mumps, and rubella (MMR), but half of parents of young children say they aren't sure all childhood vaccines are necessary and support for school vaccination requirements is down sharply, according to the results of a new Pew Research Center survey.The survey, however, showed much less faith in COVID-19 vaccines than in childhood immunizations.Pew surveyed 10,701 US adults from March 13 to 19, 2023, on their perceptions of childhood and COVID-19 vaccines and conducted 22 in-depth, qualitative interviews with adults who expressed concerns about vaccines."The polarized response to the handling of the coronavirus outbreak in the United States, including the role of COVID-19 vaccines, has been a source of deep concern for medical and public health communities," the authors wrote. "It has also raised questions about whether vaccine hesitancy connected with COVID-19 vaccines would spill into Americans' views of other vaccines."That concern was heightened after a study published in Morbidity and Mortality Weekly Report in January showed continuing declines in the percentage of kindergartners receiving state-required vaccines, declining slightly from 94% in the 2020-21 school year to 93% in 2021-22.A total of 88% of survey respondents indicated that the benefits of childhood MMR vaccines outweigh the risks, compared with 10% who say the risks outweigh the benefits. The proportion saying they believed in the value of MMR vaccines was the same who indicated this in 2019, before the COVID-19 pandemic.When asked to independently evaluate the MMR vaccine's health benefits and risk of side effects for children, 72% of respondents said the benefits of MMR vaccines are very high or high, and 64% said the risk of side effects is very low or low.Yet parents are more concerned about the risk of these vaccines than other respondents, with roughly half of those with a child aged 0 to 4 saying they worry that some recommended childhood vaccines are not needed. That sentiment was more common among mothers than fathers of a child or teen, with about half saying the risk of side MMR vaccine side effects is medium or high, 15 percentage points higher than fathers.
What Is Causing So Much Pink Eye? - Scientific American - A new variant of the virus that causes COVID is drawing international attention, not just for its rapid spread but for its tendency to cause one unexpected symptom: conjunctivitis, or “pink eye.”The strain, known officially as XBB.1.16 and colloquially as Arcturus, is a subvariant of Omicron. It was first detected in India, where it has been spreading quickly, but it has been identified in dozens of countries and now makes up more than 12.5 percent of cases in the U.S., according to the Centers for Disease Control and Prevention. The World Health Organization has categorized Arcturus as a “variant of interest,” which means it has genetic changes that could affect its behavior, along with an advantage over other variants in circulation.Everywhere it goes, Arcturus has generated reports of red, irritated eyes, especially in children. While bloodshot eyes can look alarming, experts say, viral pink eye isn’t usually anything to worry about on its own, and Arcturus is not showing signs of being more dangerous than previous variants. Still, knowing that pink eye might result from a COVID infection can help people detect it sooner and prevent further transmission. Pink eye, known to doctors as conjunctivitis, describes inflammation of the conjunctiva—a thin, transparent mucous membrane that covers the white part of the eyeball. This inflammation causes blood vessels to become engorged, which is what makes eyes looks red or pink, Other symptoms of conjunctivitis can include watery eyes and a sensitivity to brightness as a result of an inflamed cornea, which splits light like frosted glass, An estimated six million people in the U.S. see a health care provider each year for conjunctivitis, often because of viral infections. Adenovirus is by far the most common cause of viral conjunctivitis and is responsible for 90 percent of such infections. Influenza, herpesviruses and other viruses can also cause pink eye. In addition to viruses, bacterial infections, chemical exposures, allergies, compromised contact lenses and physical trauma can trigger the condition.Experts have known since the pandemic’s beginning that COVID can cause eye symptoms such as pain, itching, burning and the telltale pink hue of conjunctivitis. Like other coronaviruses, including the SARS virus that caused an outbreak in 2002–2003, the COVID-causing virus SARS-CoV-2 has been isolated in tears. And higher concentrations of the virus in tears are linked to more severe eye symptoms,
COVID-positive infants may have fewer urinary tract, bacterial infections - Compared with feverish infants who tested negative for COVID-19, a lower proportion of babies aged 8 to 60 days who tested positive had co-occurring urinary tract infections (UTIs), bacteremia without meningitis, and bacterial meningitis, according to a study published late last week inJAMA Network Open.Bacteremia is the presence of bacteria in the bloodstream, and meningitis is inflammation of the membranes that protect the brain and spinal cord.Led by a Yale School of Medicine researcher, the study was part of a quality-improvement project at 106 US and Canadian hospitals from November 1, 2020, to October 31, 2022. Participants were full-term and feverish but otherwise healthy infants without bronchiolitis (lung infection in infants and young children) who were tested for COVID-19.Among 14,402 infants, 58.4% were 29 to 60 days old, 56.5% were boys, 26.1% tested positive for COVID-19, 39.8% were White, 25.0% were Hispanic, 13.3% were of another race, 12.5% were of unknown race, and 9.4% were Black.Compared with infants who tested negative, a lower proportion of those who tested COVID-positive had UTI (0.8% vs 7.6%), bacteremia without meningitis (0.2% vs 2.1%), or bacterial meningitis (<0.1% vs 0.5%).Among infants 29 to 60 days old diagnosed as having COVID-19, 0.4% had UTI, and less than 0.1% each had bacteremia or meningitis. Of SARS-CoV-2–positive infants, a lower proportion of those with normal levels of inflammatory markers (IMs) had bacteremia and/or bacterial meningitis than those with abnormal IMs (<0.1% vs 1.8%)."Although the prevalence of UTI and IBI [invasive bacterial infection] may be low enough for some clinicians to consider deferring further testing for bacterial infection in SARS-CoV-2–positive infants, depending on their risk tolerance and practice setting, it is important to note that the prevalence of concomitant bacterial infection varied by age group and whether IMs were normal or abnormal," the study authors wrote.
Study: Death rates in COVID ICU patients 69% higher than for flu -- A new nationwide French study comparing outcomes for patients in the intensive care unit (ICU) for either influenza or COVID-19 due to acute respiratory failure shows that COVID-19 patients had a longer hospital stay and a 69% higher mortality rate than ICU patients with influenza. The study was published yesterday in the Journal of Infection. The study compared outcomes, including death and the need for mechanical ventilation, among COVID-19 patients hospitalized at any point from March 1, 2020, to June 30, 2021, and influenza patients seen from January 1, 2014, to December 31, 2019. A total of 105,979 COVID-19 patients were compared to 18,763 influenza patients. The authors found patients with influenza seen in the ICU required more invasive mechanical ventilation (47% vs 34%), but patients with COVID-19 were 69% more likely to die during their hospital stay (25% vs 21% of patients; (adjusted hazard ratio, 1.69; 95% confidence interval, 1.63 to 1.75). Critically ill COVID-19 patients were more likely to be men with comorbidities and were slightly younger than critically ill influenza patients. Thirty percent of COVID-19 patients seen in the ICU were under the age of 60. "The type of comorbidities differed between the two populations," the authors explained. "Arterial hypertension [high blood pressure], diabetes mellitus, chronic kidney disease, and solid tumour were more frequent in COVID-19 patients, while congestive heart disease, chronic respiratory disease, cirrhosis, and malignancies were more frequent in influenza patients." Only 5% of symptomatic COVID-19 patients required admission to the ICU for acute respiratory failure in this study, which is one of the largest studies focused on comparing COVID-19 with influenza patient outcomes in the ICU, the author said. But the 69% higher mortality rate persisted event after COVID-19 vaccines were widely available in early 2021.
9 of 10 long-COVID patients in study report slow recovery over 2 years - Over 90% of adult long-COVID patients in France gradually recovered over 2 years, while 5% improved rapidly, and 4% reported persistent symptoms, finds a study published late last week in the International Journal of Infectious Diseases.Researchers in Paris analyzed data from a nationwide cohort on 2,197 patients reporting symptoms at least 2 months after a suspected or confirmed COVID-19 infection from December 2020 to July 2022. The vast majority of participants (90%) were enrolled before June 7, 2021, when the SARS-CoV-2 Alpha variant was dominant in France. Median follow-up was 291 days.Participants completed online symptom questionnaires every 2 months, and the researchers used latent class mixed modeling to identify trajectories in long-COVID symptoms over time. Median patient age was 46 years, 79% were women, and 69% had confirmed COVID-19 infections.A total of 90.8% of participants reported slowly decreasing symptoms, 4.9% said their symptoms were resolving quickly, and 4.3% said they had multiple symptoms that varied little over time.Participants in the latter group were more likely to report tachycardia (abnormally fast heart rate), bradycardia (abnormally slow heart rate), heart palpitations, or abnormal heart rhythms (93%); paresthesia (burning or prickling sensations; 78%); hot flashes (76%); sweating (69%); heat or cold intolerance (65%); and sensitivity to light or sound (59%) in the first year after symptom onset.This group was also older than those reporting slowly decreasing symptoms (odds ratio [OR], 1.04 per year) and more often reported smoking (OR, 1.49), a history of systemic illnesses (OR, 2.55), and no history of functional diseases (OR, greater than 10).About half of the participants in this category reported daily symptoms with little change from symptom onset (54%) and at 18 months or later (53%). Some reported symptoms less than weekly from symptom onset (4%) to 18 months (10%).
Heart transplants from COVID-positive donors may increase risk of death | Transplant patients who receive a heart from a COVID-19–infected donor may be at greater risk for death at 6 months and 1 year, finds a study published yesterday in the Journal of the American College of Cardiology.Researchers from Montefiore Medical Center and the Albert Einstein College of Medicine identified 27,862 donors in the United Network for Organ Sharing who underwent COVID-19 testing and had data on organ disposition from May 2020 to June 2022. Donors were tested multiple times before procurement.Donors were considered to have COVID-19 if they tested positive during hospitalization and then were subclassified as having active infection if they tested positive within 2 days of organ procurement or having recently resolved COVID-19 if they tested positive and then negative before procurement.There is no clear consensus on the evaluation and use of COVID-19 donor hearts for transplant, the authors said.Of the 1,445 COVID-19 donors, 1,017 had active infections, and 428 had recently resolved cases. A total of 309 heart transplants used organs from COVID-19 donors, and 239 (150 with active infections and 89 with recently resolved cases) met the study criteria. Relative to uninfected donors, those with COVID-19 were younger, and about 80% were male.Recipients of organs from donors with active COVID-19 infections had a higher death rate than recipients of hearts from uninfected donors at 6 months (7% vs 13.8%; hazard ratio [HR], 1.74; 95% confidence interval [CI] 1.02 to 2.96; P = 0.043) and 1 year (23.2% vs 9.2%; HR, 1.98; 95% CI, 1.22 to 3.22; P = 0.006), while recipients of organs from uninfected and recently resolved donors had similar death rates at 6 months (7% vs 8.5%) and 1 year (9.2% vs 13.6%, respectively).The researchers noted that SARS-CoV-2 can cause endothelial (cell layer lining blood vessels) dysfunction and heart damage that may not be detected before transplant."These early trends should be concerning enough such that heart transplantation centers need to thoroughly evaluate and continue to weigh the risks/benefits of using hearts from active COVID-19 donors," lead author Shivank Madan, MD, MHA, said in an American College of Cardiology news release.
COVID's latest twist: New XBB variant gains strength through recombination, outsmarting immunity and amplifying fusogenicity - In a recent study published in the journal Nature Communications, researchers explore the virological features of the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) XBB variant.The Omicron XBB variant is believed to have emerged from the combination of two descendants of BA.2, BJ.1, and BM.1.1.1, a descendant of BA.2.75. Previous studies have described the virological characteristics of BQ.1; however, the characteristics of XBB remain unclear. In the present study, researchers investigate the virological features of the SARS-CoV-2 Omicron XBB subvariant, with a focus on its transmissibility, angiotensin-converting enzyme 2 (ACE2) binding affinity, and immune resistance.A single recombination breakpoint at genomic position 22,920 was identified through a robust recombination assessment of the aligned set of sequences, which was unique to all XBB sequences and matched the Wuhan-Hu-1 reference genome. The dataset did not reveal any recombination in the BJ.1 and BM.1 sequences. CHEMUK - Highlights from 2022 eBook Compilation of the top interviews, articles, and news in the last year. Download the latest edition The most recent common ancestor (tMRCA) of the XBB clade was present in July 2022.; however, the tMRCA of the BJ.1 and XBB lineages was dated in early June 2022. Thus, XBB likely originated in the summer of 2022 when BM.1.1.1 and BJ.1 recombined. XBB.1 exhibited 30-fold resistance against breakthrough BA.2 infection sera. Similarly, the substitutions V83A, Q183E, Y144del, L368I, R346T, F486S, V445P, and F490S were significantly resistant against BA.2 infection sera. While individual substitutions have a minor impact on immune resistance, multiple substitutions within the XBB.1 S protein work together to provide resistance against humoral immunity caused by breakthrough BA.2 infection. BA.2.75 exhibited significant resistance against BA.5 infection sera compared to BA.2. Furthermore, XBB.1 was associated with significant resistance against breakthrough BA.5 infection sera. The XBB.1 S receptor-binding domain (RBD) had a lower binding affinity to the human ACE2 receptor as compared to the ancestral BA.2 S RBD. The R346T substitution in both XBB.1 and BQ.1.1 enhanced the binding affinity of BA.2 S RBD to ACE2. The improved binding affinity of XBB.1 S RBD over BA.2 S RBD was due to three specific substitutions in the RBD, which include L368I, R346T, and N460K. The XBB.1 pseudovirus was 7.6 times more infectious than the BA.2 pseudovirus, as this viral RBD experienced a notable boost in pseudovirus infectivity due to two substitutions of R346T and L368I. Y144del, and G252V, both of which are substitutions in the N-terminal domain (NTD), significantly reduced pseudovirus infectivity. Comparatively, the V83A substitutions in the NTD significantly increased pseudovirus infectivity. Conclusions: XBB exhibits superior fitness and is resilient against antiviral humoral immunity triggered by breakthrough infections of previous Omicron variants. Thus, local SARS-CoV-2 variants with higher fitness will likely spread globally, similar to that which was observed with XBB. These findings emphasize the importance of continuing viral genomic surveillance to continuously assess the risk of novel SARS-CoV-2 variants.
New COVID cases: India reports over 1,020 new covid cases on May 16 -India has reported 1021 new covid cases across the country in the last 24 hours, the union health ministry said on Wednesday. The number of active cases has declined to 11,393, while the daily positivity rate stands at 0.78%, and the weekly positivity rate at 0.97% Health officials have observed that the current wave of hospitalizations mainly consists of older individuals with comorbid conditions. This has led to a call for these vulnerable groups to receive booster doses if they haven’t already. According to scientific findings, the XBB.1.16 variant is responsible for the recent cases. However, the number of infections is showing signs of decline. Scientists attribute this trend to ‘hybrid immunity’ developed through both vaccination and natural infection. They suggest that the current variants are less likely to cause severe disease due to their milder nature. The government continues to emphasize the need for mask-wearing in crowded places and completion of the vaccination regime. Recovery rates are on the upswing, with around 4.44 crore individuals having recuperated from the virus. The last 24 hours saw 2,661 patients recover, pushing the current recovery rate to a robust 98.79%. The ministry is urging state and territory governments to implement a risk-assessment-based approach to prevent and manage the spread of the virus. The ministry’s guidelines recommend a micro-level examination of the Covid-19 situation, focusing on district and sub-district areas, and ensuring the implementation of necessary measures for effective management. Under the national vaccination campaign, over 220.66 crore vaccine doses administered to date. In the last 24 hours alone, approximately 883 vaccine doses were administered across the country.
Expert: COVID-19 widespread, vaccines needed fast – A prominent Chinese respiratory disease expert, Zhong Nanshan, said at a medical symposium on Monday that between 20 and 25 percent of fever patients treated in clinics in Guangzhou, Guangdong province, were actually infected with some variant of COVID-19. Zhong’s estimate followed a report in late April by the Chinese Center for Disease Control and Prevention estimating that more than 82 percent of the country’s population had been infected by the coronavirus. Whether there are symptoms or not, if the antibody corresponding to COVID-19 in a patient increases, it means that the person’s body had been previously infected with the coronavirus, Zhong said at the symposium, which focused on treatments. He urged accelerated research and development of vaccines and medicines. Once a person is infected with COVID-19, timely drug treatment is important, as it can greatly reduce the risk of death, Zhong said, adding that many patients do not realize this. The main COVID-19 strain currently in Guangzhou is XBB1.9.1, he said. “Therefore, the most important task in containing the spread of COVID-19 is the research and development of vaccines and medicines.” It is also necessary to develop vaccines and medicines that can cover the XBB variant, including mRNA vaccines and recombinant protein vaccines, he said. “These vaccines are mainly targeted at some special groups, including elderly people with immune deficiencies or other serious chronic and underlying diseases.” Zhong is an academician of the Chinese Academy of Engineering and winner of the Medal of the Republic, the nation’s highest honor.
World Health Organization calls for NEW Covid booster shots -The World Health Organization has called for new Covid shots to be developed for this winter that targets mutated variants.An advisory group for the global health agency said the current crop of shots should be updated to target the currently dominant XBB strains.The shots currently being used in the UK and US target the original Omicron strain, to which the XBB.1.5 or XBB.1.16 variants are spinoffs.These are more mutated than the ancestral strain, which has made the vaccine less effective at preventing infections and slightly less effective against severe disease. It comes after the agency said in March that healthy children and teenagers probably do not need a Covid vaccine and amid falling uptake of updated shots.The recommendation was made by the WHO's Technical Advisory Group on Covid Vaccine Composition. In their release, they say: 'The [advisory group] recognizes and reiterates that currently approved Covid vaccines, including those based on the [Wuhan] virus, continue to provide substantial protection against severe disease and death.'[But] new formulations of Covid vaccines are needed to improve protection against symptomatic disease.'They suggested designing vaccines against the XBB variants of the virus, which are currently dominant — with XBB.1.5 making up 64 percent of US cases.They also highlighted the XBB.1.16 variant, dubbed 'Arcturus', amid concerns that this strain is far more transmissible than others and reports from India that it can cause pink-eye in patients.The US previously spent $4.9billion on an arsenal of 171million updated 'bivalent' boosters — that targeted the then-dominant BA.4 and BA.5 Omicron strains — to shore up the nation's protection.But uptake of the vaccine was low, while cases and deaths from the virus remained below levels in the worst days of the pandemic.
WHO advisers recommend switch to monovalent XBB COVID vaccine -The World Health Organization (WHO) COVID vaccine composition advisory group met last week to discuss the latest SARS-CoV-2 changes and impacts on the vaccine and today recommended that vaccine makers drop the ancestral strain and switch to a monovalent (single-strain) vaccine that contains an XBB.1 descendant lineage such as XBB.1.5. In other developments, the WHO said overall global cases and deaths continue to decline, but the situation still reflects a mixed picture at the regional level. In a statement, the advisory group said current vaccines continue to provide substantial protection against severe illness and death, but new formulations are needed to protect against symptomatic disease.They noted that XBB descendant lineages, including XBB.1.5 and XBB.1.16, are highly immune-evasive, with XBB.1.5 as one of the variants with the highest magnitude of immune escape from neutralizing antibodies. They acknowledged, however, that vaccine efficacy (VE) estimates against circulating strains are limited, with some studies showing VE similar to BA.5 and others showing reduced VE against XBB.1 lineages.Meanwhile, studies involving blood samples of people who had two to four mRNA vaccine doses showed substantially lower neutralization against XBB.1 lineages. But people with hybrid immunity—from both infection and vaccination—had higher antibody titers against XBB.1 viruses.The group said there is in vitro evidence of immune imprinting—when memory B cells after initially encountering an antigen have a reduced response to new antigens. "However, based on observational epidemiological studies to date, the clinical impact remains unclear," they wrote.Preclinical data on XBB.1 candidate vaccines, shared confidentially by vaccine makers, showed a higher neutralizing antibody response to current subvariants compared with currently approved vaccines.Given that XBB.1 lineage viruses continue to predominate, the goal of new COVID formulations should be to neutralize XBB-descendent lineages, the advisory group said. They listed XBB.1.5 as an example to include, but said the XBB.1.16 could be an alternative, since the genetic and antigenic differences between the two are so small.They had several reasons for recommending a switch to a monovalent vaccine, including that, because the index virus no longer circulates in people, it prompts—at best—very low levels of antibodies against current strains, it reduces the concentration of the new target antigen, and it may induce immune imprinting.
The Next COVID-19 Vaccine Should Only Target XBB: WHO -- The World Health Organization (WHO) recommended on May 18 that the next COVID-19 vaccines should no longer include the original SARS-CoV-2 virus—which all existing vaccines currently do—and instead contain a different version of the virus to better match circulating variants. Currently, this means a version of the virus from the XBB.1 family, which is now responsible for most of the new COVID-19 infections around the world. The group that made the recommendation, called WHO’s Technical Advisory Group on COVID-19 Vaccine Composition, suggested that the XBB.1.5 variant be included in the next vaccine. WHO also recommended that the updated vaccine contain only an XBB variant, and not more than one version of the virus. While the advice isn’t binding, it forms the foundation for decisions made by health officials for vaccines in their respective countries. Some public-health officials have been urging including at least two different virus strains in the next shot, since that increases the likelihood of matching whatever viruses might be circulating in the future. These experts have looked to influenza as a model; the annual flu shot targets four different strains of the virus to maximize the chances of protecting people against disease. In explaining its recommendation, the WHO group noted that there are only small differences among the existing XBB variants, and that “other formulations and/or platforms that achieve robust neutralizing antibody responses against XBB descendent lineages can be considered.” The most recent COVID-19 shot in the U.S. is a bivalent booster that targets the original version of SARS-CoV-2 and two Omicron variants: BA.4 and BA.5. While this shot and its predecessors continue to protect well against severe COVID-19, hospitalization, and death, they are less effective at blocking infection, since the antibodies they produce tend to wane after several months. Updating the COVID-19 vaccine is an important way to counter this waning effectiveness, but only if the strains in the vaccine match relatively well to whichever ones are causing infections. Targeting only one version of the virus could lower the chances that this coordination will happen. The WHO’s recommendation will likely be one piece of data that the U.S. Food and Drug Administration (FDA)’s vaccine experts consider when they meet in June to discuss which strains of the virus should be included in the next COVID-19 vaccine. The group is moving toward recommending a single COVID-19 shot once a year for most people, and additional shots for the elderly and those with weakened immune systems. In previous meetings, the FDA committee noted that the WHO’s recommendation would be important to consider, as aligning vaccine guidelines around the world reduces confusion and increases the likelihood that people will get vaccinated.
COVID public health measures may have led to RSV resurgence -A lack of exposure to respiratory syncytial virus (RSV) in the first 2 years of the COVID-19 pandemic may have led to the global resurgence of the virus in 2022 and 2023, finds a study published yesterday in JAMA Pediatrics. The study, led by University of Colorado researchers, involved comparing age distributions and illness severity in children hospitalized for RSV in Colorado from 2018 to 2023. The 2020-21 period was excluded because only one hospitalization occurred during that time. The team analyzed data from the Centers for Disease Control and Prevention's Emerging Infections Program RSV Hospitalization Surveillance Network on 2,809 infected children. The average patient age was 21.6 months, and 53.3% were boys. During 2021-22 and 2022-23, 97.5% and 98.8% of hospitalizations, respectively, were RSV-related. The median patient age was 18.5 months in the first 6 weeks of the 2022-23 season, compared with 11.0 months in previous seasons. Relative to previous years, a greater proportion of 2022-23 patients were aged 2 to 4 years (34.2% vs 23.4%) and 5 to 11 years (9.7% vs 5.0%). The proportion of children admitted to the intensive care unit was 27.1% in 2021-22 and 36.0% in 2022-23, and median lengths of stay were 3.0 and 3.8 days, respectively. The authors said the results support the hypothesis that lack of exposure to RSV during pandemic public health mandates was behind the resurgence. The researchers called for multicenter studies to confirm the results. "These data may help inform the introduction of imminent new RSV prevention strategies, including vaccines and monoclonal antibodies, to minimize disease burden in this age group," they concluded.
CDC issues building ventilation guidance to guard against respiratory infections --The Centers for Disease Control and Prevention (CDC) last week published guidance for improving building ventilation to help protect people from respiratory infections, with a goal of at least five air changes each hour and an upgrade to MERV-13 filters.Deploying multiple infection prevention and control strategies can optimize the overall effectiveness of ventilation interventions, the CDC said.Basic strategies include maintaining heating, ventilation, and air conditioning (HVAC) systems as recommended by the manufacturer and updating the systems to meet current standards. Other key steps include regular filter changes and ensuring that filters fit properly.The CDC also detailed several enhanced strategies, which include the air-change recommendation and upgrading to MERV-13 filters. Steps also include keeping the fan on the "on" position rather than "auto" when people are in the building, adding fresh air, using appropriately sized air cleaners, installing ultraviolet air treatment systems, and using carbon dioxide monitors to track air quality.
UK reports fatal enterovirus-linked myocarditis cluster in newborns -The United Kingdom has reported an unusual increase in myocarditis infections and two deaths in babies who had enterovirus infections, the World Health Organization (WHO) said yesterday.In early April, the UK notified the WHO about an increase in severe myocarditis in infants in Wales. Fifteen cases consistent with neonatal sepsis in babies 28 days old and younger were reported from Wales and Southwest England from June 2022 and March 2023. Polymerase chain reaction (PCR) testing in nine patients confirmed either coxsackie B3 or coxsackie B4. As of April, three patients were hospitalized, four were receiving outpatient care, and two died.The WHO said though enterovirus infections are common in young babies, the link to myocarditis with severe outcomes in the group is unusual. For comparison, in the hospital in South Wales that treated 10 of the cases only treated one similar case in the previous 6 years.Myocarditis, or inflammation of the heart muscle, was the presenting feature, and cases peaked in November 2022, with sporadic cases reported across the other months. Enterovirus infections are typically mild, but they can be more severe in newborns than in older children.An incident management team is reviewing all the evidence and has alerted UK authorities, who have raised awareness among health providers about the enterovirus cluster. Epidemiologic investigations are still under way. Also, clinicians published a letter detailing eight of the cases last month in BMJ.
Kansas City, Kansas, Wyandotte Co. warns of tuberculosis cases — Health leaders warn of an infectious disease in Wyandotte County but say they’ve diagnosed fewer than 10 cases of the illness.The Unified Government and Kansas Department of Health are working to make sure patients who tested positive for tuberculosis are treated for it.They are also taking steps to prevent the infection from spreading to other people. That includes working with each patient to identify other people who may be considered a close contact. The health department will identify those individuals and help them get free testing. The agencies and the Centers for Disease Control and Prevention said there is little risk that anyone in the general public will contract TB.Symptoms of TB include sickness or weakness, fever, night sweats, coughing, chest pain or coughing up blood. Anyone who believes they are suffering from these symptoms should see a doctor. The disease is spread through the air. The disease is most often spreads through prolonged contact, often to family members, coworkers, or friends.
TB Alliance to investigate potential treatment for nontuberculosis mycobacteria infections -The TB Alliance announced yesterday that it will receive up to $3.9 million in funding from the Cystic Fibrosis Foundation to investigate a compound with the potential to treat nontuberculosis mycobacteria (NTM) infections.The funding will be used to conduct preclinical testing on a novel oxazolidinone inhibitor that was identified by researchers with the TB Alliance and Johns Hopkins University in 2020 as having the potential to treat two types of NTM, Mycobacterium abscessus and Mycobacterium avium complex. The two species cause the vast majority of NTM lung infections in people with cystic fibrosis.Researchers will be looking to see whether the synthetic antibiotic is more effective against NTM infections than linezolid, the antibiotic currently used to treat M abscessus infections."At TB Alliance, we are focused on discovering and developing novel treatments for tuberculosis. Through this work, we found several possible compounds that had the potential to treat NTMs, which are related to the TB bacteria," Nader Fotouhi, PhD, senior vice president and chief scientific officer at TB Alliance, said in a press release. "Identifying this new compound will allow our researchers to potentially develop a new, improved treatment for NTM infections that may help people with cystic fibrosis."
US researchers report urinary tract infection caused by pan-resistant E coli -Researchers with Johns Hopkins University School of Medicine reported yesterday that they identified what they believe is the first clinical case in the United States of a patient with an infection showing resistance to all available beta-lactam antibiotic regimens.In a case report published in Open Forum Infectious Diseases, the researchers said the 66-year-old man had traveled to India to receive a kidney transplant in January 2022 and was treated at Johns Hopkins Health System for cystitis (bladder inflammation) several time from June to September 2022. The man then developed pyelonephritis (kidney infection) caused by New Delhi metallo-beta-lactamase (NDM)-producing Escherichia coli.Although antimicrobial susceptibility testing results indicated resistance to both cefiderocol and ceftazidime-avibactam plus aztreonam (CZA-ATM)—the preferred treatment regimens for NDM-producing infections—he was continued on CZA-ATM and experienced a relapse 3 weeks later. Further antimicrobial susceptibility testing indicated resistance to all beta-lactams. Whole-genome sequencing (WGS) of E coli isolates collected from the patient after his kidney transplant and during treatment for the infection showed they belonged to sequence type (ST)167, which has been recognized as an international high-risk clone. The ST contained a single copy of the blaNDM-5 gene, along with genes conferring resistance to penicillins, early-generation cephalosporins, aminoglycosides, trimethoprim, sulfamethoxazole, and macrolides.WGS also revealed a mutation in the penicillin binding protein 3, mutant CirA proteins, and expression of theblaCMY gene—a combination the study authors say almost ensures resistance to cefiderocol and CZA-ATM. They believe the patient was likely colonized with the NDM-producing E coli while in India."Regardless of the likely culprits of the pan-β-lactam resistance observed, this case is worrisome given thatE. coli ST167 clinical isolates harboring blaNDM-5 genes are increasingly being recognized as an international high-risk clone," they wrote. "E. coli ST167 have been associated with unique virulence factors (e.g., novel capsular synthesis gene clusters); the combination of resistance and virulence makes them ripe for global dissemination."
Contaminated eyedrops now linked to 4 deaths, 14 cases of blindness: CDC Eye drops that have been contaminated with a highly drug-resistant strain of bacteria have now been linked to four deaths and 14 cases of blindness, according to an update from the Centers for Disease Control and Prevention (CDC). The CDC said in a post on its website that it has identified 81 patients from 18 states who have been infected with VIM-GES-CRPA, a rare strain of a drug-resistant bacterium called P. aeruginosa. This includes 13 additional patients from the agency’s previous update in March. Six of the cases had specimens of the bacteria that were collected before the affected products were recalled in early February, but the cases were not confirmed until more recently because of the time needed to confirm the outbreak strain and retrospective reporting of infections. The number deceased rose from three to four from the CDC’s last update, while the number blinded rose from eight to 14. An additional four patients beyond the 14 who experienced vision loss needed to have an eyeball surgically removed. The release states that most of the patients infected with the bacteria reported using artificial tears, with more than 10 different brands being named. The most commonly reported brand was EzriCare Artificial Tears, an over-the-counter product that is packaged in multidose bottles. FBI repeatedly misused surveillance tool, unsealed FISA order reveals Russia bans Obama, Maddow, Colbert over sanctions EzriCare was the only product identified in four health care facility clusters, according to the release. Manufacturer Global Pharma has voluntarily recalled three of its products — EzriCare Artificial Tears, Delsam Pharma Artificial Tears, and Delsam Pharma Artificial Ointment — in connection with the outbreak, and no additional products have been linked to it. The CDC warned that the public should stop using these products until they receive additional guidance from the agency or the Food and Drug Administration. It said symptoms of an eye infection can include yellow, green or clear discharge, eye pain or discomfort, eye or eyelid redness, feeling that an object is in the eye, increased light sensitivity and blurred vision.
Studies show Jynneos protection against mpox ranges from 66% to 89% | CIDRAP Three new studies from the Centers for Disease Control and Prevention and colleagues, published in the New England Journal of Medicine and Morbidity and Mortality Weekly Report(MMWR), provide real-world estimates that two-dose vaccine effectiveness (VE) of the Jynneos vaccine against mpox ranges from 66% to 89%.The studies are the largest yet to measure how well the vaccine performed in the United States amid the mpox outbreak of 2022, which saw more than 30,000 US cases of the poxvirus, mostly in men who have sex with men (MSM). In the New England Journal of Medicine, researchers conducted a case-control study based on data from Cosmos, the nationwide Epic electronic health record (EHR) database. The study population included 2,193 case-patients with a positive mpox diagnosis or positive orthopoxvirus laboratory result, and 8,319 control patients who had been diagnosed as having an human immunodeficiency virus (HIV) infection or a new or refill order for PrEP against HIV infection. A second case-control study, published in MMWR, looked at VE in nine states; Washington, DC; Los Angeles County, and New York City. Participants were MSM ages 18 to 49; cases had a positive mpox diagnoses, and controls had visited a sexual health clinic but tested negative for mpox. During August 19, 2022, to March 31, 2023, a total of 309 case-patients were matched to 608 control patients, and the adjusted VE was 75.2% (95% CI, 61.2% to 84.2%) for partial one dose and 85.9% (95% CI, 73.8% to 92.4%) for full two-dose vaccination. Adjusted VE for full vaccination among immunocompromised participants was 70.2% (95% CI, −37.9% to 93.6%) and among immunocompetent participants was 87.8% (95% CI, 57.5% to 96.5%). The third study looked at VE in New York only, with case-patients men older than 18 who received a diagnosis of mpox from July 24 to October 31, 2022, and controls men without mpox diagnosed as having rectal gonorrhea or primary syphilis and a history of male-to-male sexual contact.Among 252 eligible mpox case-patients and 255 control patients, the adjusted VE of one dose (received 14 days earlier or longer) was 68.1% (95% CI, 24.9% to 86.5%), and for two doses it was 88.5% (95% CI, 44.1% to 97.6%).The authors said their findings support the two-dose regimen of Jynneos, especially as global mpox spread continues and might increase during the upcoming summer months.
U.S. reports case of atypical mad cow disease (Reuters) - The U.S. Department of Agriculture (USDA) announced on Friday an atypical case of Bovine Spongiform Encephalopathy (BSE), commonly called mad cow disease, in an older beef cow at a slaughter plant in South Carolina. USDA said the animal never entered slaughter channels and the agency did not expect any trade impacts as a result. It was the seventh detection of BSE in the United States since 2003 and all but one have been atypical. "This finding of an atypical case will not change the negligible risk status of the United States and should not lead to any trade issues," USDA's Animal and Plant Health Inspection Service said in a statement.
Evidence found of electromagnetic fields from electrical towers disrupting pollinating honeybees -- A multi-institutional team of biologists and ecologists from Chile and Argentina has found evidence suggesting that electromagnetic fields emanating from electrical towers disrupt pollinating honeybees. The research is published in the journal Science Advances.Prior research has suggested that electromagnetic radiation emitted from power lines may interfere with plants and animals in the vicinity—though some have suggested that the unique habitat of the treeless regions where power lines pass through forests may confer some natural benefit.In this new effort, the research team focused specifically on the impact of electromagnetic radiation emitted from electrical towers on honeybees—they chose honeybees because prior research has shown they navigate using natural electromagnetic fields. And they chose to use electrical towers rather than power lines themselves because they had access to similar towers without power lines, allowing for comparison purposes.The researchers first counted the number of poppies flowering around active towers and towers that were inactive—they found there were far fewer flowering around the active towers. The researchers also measured the electromagnetic fields around multiple towers to discover how strong they were at various distances.They then collected several honeybee specimens flying at different distances from a tower and measured the levels of a protein called HsP70 in their bodies—this protein has been shown to be related to stress in the bees. As expected, they found higher levels in the bees working closest to the electrical towers.The research team then collected more honeybee specimens at a distance from any towers or lines and brought them back to their lab for study. They exposed them to different amounts of electromagnetic radiation and then measured expressions related to 14 genes known to be associated with navigation, stress and the immune system. They found differences in 12 of those exposed to electromagnetic radiation.The team finished their study by once more venturing into the field to study the bees working closely to electrical towers—they found that the frequency of visits to a nearest flower that were closest to a tower were approximately 308% lower than in areas where there were no towers.The group concludes that electromagnetic fields around electrical towers have a detrimental impact on honeybee pollination, and by extension, the surrounding plant community.
Wildfires rip across Canada as heat wave smashes temperature records - High temperature records fell by the dozen this week as western Canada continued to suffer in a prolonged, scorching heat wave. About 90 wildfires, spurred on by unusually high temperatures, continue to burn in Alberta. Smoke blanketed the province in unhealthy air and dipped across the border into the U.S., according to satellite photos. The heat wave pattern — described as an “omega block” by meteorologists — resembles in some ways the record-breaking heat event in Canada and the U.S. Pacific Northwest in June 2021, which killed hundreds of people. The intense spring wildfires in Alberta are reminiscent of the 2016 Fort McMurray wildfire, which is considered one of Canada’s costliest natural disasters. “This is a very unusual pattern. We often don’t see these types of patterns set up this early in the year. We see these patterns in the summer,” said Terri Lang, a warning preparedness meteorologist for Environment and Climate Change Canada. It can take months for scientists to determine whether a particular weather anomaly is the result of climate change and the heating of the atmosphere by the burning of fossil fuels. But Lang said the events fit with what climate scientists have predicted for western Canada.. The early-season heat and wildfires — which had displaced nearly 20,000 people as of Tuesday and threatened some oil extraction operations — set the stage for a long, smoky summer in western Canada, where seasonal and long-term forecasts predict more heat. The events show how extreme weather, made more common by climate change, can disrupt lives and shift economies. The “omega block” pattern was established in late April and early May, Lang said. The pattern — a massive block of high pressure that resembles the Greek letter it is named for — has continued to sit over the region for weeks, sending temperatures soaring into record-breaking territory in early May. Daily temperature records have been broken with regularity in Alberta and other provinces since the beginning of the month. Weather stations in seven Alberta locations eclipsed daily highs Tuesday. British Columbia, Saskatchewan and other provinces also set records this week.
Canadian wildfire smoke to impact Nebraska's air quality starting Thursday --Smoke from wildfires in Canada began impacting air quality for people involved in outdoor activities Thursday across Nebraska.The National Weather Service posted an alert for possible moderate to unhealthy air quality through noon Friday for the entire state. Conditions could range from moderate to unhealthy for sensitive populations to unhealthy for anyone engaged in outdoor activities.Dirk Petersen, a meteorologist with the weather service in Valley, Nebraska, said Thursday that forecasters had been seeing reduced visibility due to smoke in the northern part of the state, at times below one mile.The federal AirNow.gov website, home of the U.S. Air Quality Index, indicated that the Nebraska Panhandle and parts of northeast Nebraska were seeing air quality in the very unhealthy category.Kim Engel, director of the Panhandle Public Health District, said conditions were overcast and smoky in the area.Petersen said a cold front moving slowly into the region was pushing down smoke that had been staying higher aloft.The smoke moved into the Omaha area Thursday afternoon.Officials with the Douglas County Health Department said smoke from the wildfires was expected to push air quality index in the area into the unhealthy for sensitive groups category and possibly the unhealthy zone possibly into Saturday night.Residents are likely to see a distinct haze in the sky. The particulate matter in the air from the fires can create serious health issues for people with heart and lung disease, older adults and children, health officials said.Anyone who may be impacted by such conditions is advised to minimize outdoor activities during such times.
Smoke from Canadian wildfires chokes skies across America's northern tier -- Thick smoke from Canadian wildfires is now pushing across the border into America's northern tier states, blanketing several states in a milky orange-tinged haze and sending air quality to hazardous levels in a few areas. Around 150 wildfires are burning across northern Alberta and British Columbia, pouring acrid smoke across western Canada that is carrying south into the United States along the upper-level winds. Smoke has reached into the Pacific Northwest, northern Plains and even into the Mississippi Valley. Smoky skies have been reported as far south as St. Louis and Paducah, Kentucky and as far west as Seattle. But the northern Rockies and Northern Plains are taking the brunt of the smoke on the American side of the border Thursday. While the smoke has remained elevated at several thousand feet and has not posed a significant air quality threat on the surface for most of the affected areas, smoke has been pushed near the ground near the Canadian border from Eastern Washington into Minnesota and Wisconsin, degrading air quality to unhealthy, or even hazardous levels in some cities in North and South Dakota. Mercer County, North Dakota, reported an air quality index of 660 Wednesday evening, well above the hazardous threshold of 400. Earlier Thursday, air quality reached hazardous levels in Pierre and the Badlands of South Dakota, according to the U.S. Environmental Protection Agency's AirNow air quality monitor. Several air quality readings in the "Very Unhealthy" range were spread across North Dakota into eastern Montana and northern South Dakota. "Very Unhealthy" air quality then drifted east with the smoke into western Minnesota and even northwestern Iowa by midday. Air Quality Alerts are posted across the entire states of Montana, Minnesota, Nebraska, and Wisconsin, plus eastern portions of Washington and Colorado Thursday. General air quality advisories cover Wyoming and western South Dakota. Officials are urging residents in those areas to limit outdoor activity, especially those sensitive to air quality, such as children, the elderly and those with heart or respiratory ailments. Or in the case of very unhealthy or hazardous air quality, officials urge everyone to avoid all outdoor activity. Visibility may drop as low as a quarter mile in areas of Montana, Minnesota and the Dakotas, making for hazardous driving conditions. Forecasts show improving conditions across the northern tier later Thursday as the smoke is carried east, though a period of thick smoke is forecast to cross the northern Great Lakes later Thursday into Friday.
Smoke from Canada arrives in WA. How long will it last? -- Seattle residents woke up to a red sunrise Wednesday and Thursday, with the arrival of unseasonably early wildfire smoke. But while the haze will make for some interesting views, the smoke won’t affect air quality here, the National Weather Service said.Another smoky sunrise at NWS Seattle. The smoke acts as effective filter for locating sun spots. That sunspot on the lower left side of the Sun is 3 times wider than our planet.#wawx pic.twitter.com/UUdXk2igoC— NWS Seattle (@NWSSeattle) May 18, 2023The smoke hanging over the northern half of Washington is drifting in from Alberta and British Columbia in Canada, where about 150 active fires are burning.Calgary smoke plumes have been carried into the contiguous 48 through jet streams in recent weeks, from the Northern Rockies to the East Coast.Though our northern neighbors are seeing air quality that is among the worst in the world, smoke locally is not likely to reach the surface or affect air quality here, said meteorologist Dev McMillian. Suspended “several thousand feet” in the atmosphere, smoke was expected to linger at least through early Thursday and likely will be cleared out by southwesterly winds by Friday, he said.Washington saw a relatively mild year for wildfire smoke last year, but there were periods when residents were afflicted with some of the worst air in Seattle since the wildfires three seasons ago.
Canada seeks foreign help to fight spreading wildfires --Canada called for foreign help Wednesday to combat wildfires burning out of control and spreading across vast swathes of the western half of the country. The fires that have devastated the oil-producing Alberta province have in recent days spread to neighboring British Columbia and Saskatchewan as well as the Northwest Territories. Some 2,500 firefighters from across Canada backed by 400 military personnel have been deployed across Alberta to try to tame the wildfires, which have already burned more than half a million hectares of forests and grasslands and destroyed many homes and businesses. But they aren't enough, officials said. "It's still a very significant and dangerous situation in Alberta," federal Public Safety Minister Bill Blair told reporters in Ottawa. Blair said the Canadian Interagency Forest Fire Center "is reaching out to foreign countries -- the United States, Mexico, Australia and New Zealand... We're asking them to come and help us." Smoke from the wildfires has blanketed western Canada, leading to warnings about poor air quality posing risks to health. In Calgary, the sky had an orange hue to it as the smoke grew thicker throughout the day. Hundreds of kilometers (miles) to the east, residents of Regina and Saskatoon in neighboring Saskatchewan province said they woke up to a thick haze and a strong smell of smoke in the air. Across the region, almost 180 wildfires were burning -- including 48 out of control -- forcing tens of thousands to flee over the past two weeks. Evacuation orders and alerts were lifted in some parts on Tuesday and Wednesday, including hard-hit Drayton Valley west of Edmonton in Alberta and Fort St. John in British Columbia, as those fires were subdued. Air quality indexes in several cities, however, indicated wildfire smoke that spread from the Pacific Coast to Manitoba province still poses a "very high risk" to health. In recent years, western Canada has been hit repeatedly by extreme weather, the intensity and frequency of which have increased due to global warming. This has brought floods and mudslides, forest fires that destroyed an entire town, and record-high summer temperatures that killed more than 500 people in 2021.
El Niño is coming back — and could last the rest of the year - El Niño is making its comeback – and making itself at home. National forecasters said on Thursday that the climate pattern system, known for bringing record rainfall in South America, more winter storms in the U.S West and South, and droughts in southern Asia, Indonesia and Australia, is expected to make its official return within a few months and has a strong chance of lasting the rest of the year. El Niño is a climate pattern that naturally occurs every two to seven years when ocean surface temperatures warm in the eastern Pacific. And according to the National Oceanic and Atmospheric Administration, it will likely come to fruition again this year, sometime between May and July. This year's event could be "potentially significant," forecasters said, due to a "westerly wind event" expected in mid to late May, as well as "above average" heat in the ocean. There's an 80% chance the event will at least be moderate and about a 55% this year's El Niño will be "strong," NOAA said. There's also a 90% chance that El Niño will stay in the northern hemisphere throughout the winter. The update comes just a month after the agency's Climate Prediction Center issued a watch for the event, saying at the time that there was a 62% chance the system would develop. The tropics will feel the effects of El Niño the most,but the entire world will feel its impacts. If it's strong, it can shift the Pacific jet stream, which in turn affects U.S. temperature and precipitation. California, which saw a deluge of brutal and deadly back-to-back atmospheric rivers earlier this year dumped significant rainfall across the state, could experience more winter storms because of the event, as could states in the south. In South America, Peru, Chile and Ecuador are also known to experience record rainfall during El Niño years. And on the other side of the world, Australia, Indonesia and southern Asia will likely experience severe droughts. But that's not all. One of the biggest fuels of El Niño is warmer ocean waters, which can spur hurricanes in the Pacific, NOAA says, while also driving marine species to other areas in search of colder waters. Data from NOAA shows that since about mid-March – well before the beginning of El Niño – daily sea surface temperatures have already hit record numbers, well above temperatures seen in 2016, around the time a "Godzilla" El Niño was unleashed. Monthly average ocean surface temperatures also surpassed what was seen this time in 2016 and 2022, the data shows. Ocean heat has only been intensifying. In January, researchers said that the seas warmed an amount equal to the energy of five atomic bombs detonating underwater "every second for 24 hours a day for the entire year." Ocean temperatures last year, researchers said, were "the hottest ever recorded by humans," increasing by an amount of heat 100 times more than all the electricity generated globally in 2021.
U.S. climate outlook forecasts a hotter than usual summer -- The climate outlook for June through August shows a broad swath of the Lower 48 states and Alaska are likely to see a hotter than average summer.Prevailing weather conditions during the summer lead to drought or destructive wildfires. The NOAA outlook, released Thursday, shows the highest probability of above average temperatures is across the Southwestern U.S. It's centered over New Mexico and Arizona, where there is a 60% to 70% chance of a warmer than average summer.The odds are slightly lower, at about 50% to 60%, for warmer than average temperatures from Texas to New England. A tilt toward drier conditions is projected for the Pacific Northwest and the Southwest, with drought hanging on in eastern New Mexico, and west Texas. Wetter conditions are projected for the mid-and-lower Mississippi, Ohio Valley, and much of the East and Gulf Coasts.The seasonal forecast is based in part on preexisting conditions, such as soil moisture which can enhance above average temperatures, as well as the predicted formation of an El Niño in the equatorial tropical Pacific Ocean.Forecasters also factored in ocean temperatures, such as above average sea surface temperatures off the East Coast, which will influence the average weather conditions over land.The outlook shows equal chances of above average, average, and below average temperatures across the Midwest and parts of the Plains.NOAA's seasonal outlook does not depict the likelihood of extreme heat events or wildfires. Already, the Pacific Northwest has been hit with excessive heat. The same heat wave has demolished longstanding temperature records in western Canada and helped fuel a wildfire outbreak that may last most of the summer, wafting smoke southward into the U.S. Worldwide, with ocean temperatures running at or near record highs globally, heat waves on land are even more likely.
Global temperatures could soon briefly breach climate threshold, scientists warn - The Washington Post -The World Meteorological Organization virtually guarantees that one of the next five years will be the warmest on record, announcing Wednesday that a developing El Niño pattern will overlap with worsening human-caused climate change to push Earth’s temperatures into uncharted territory.While Earth’s temperatures have fluctuated wildly over its 4.5 billion year history, it’s well established that human emissions are accelerating warming at a breakneck pace, the rapidity of which is distinct from natural processes.Experts at the World Meteorological Organization (WMO) anticipate that global temperatures at some point in the next five years will, at least temporarily, spike above the 1.5 degree Celsius (2.7 degree Fahrenheit) benchmark outlined in the Paris Climate Accords, an agreement signed by 196 countries at the United Nations Climate Change Conference on Dec. 12, 2015. That 1.5 degree Celsius number is compared to preindustrial levels.“WMO is sounding the alarm that we will breach the 1.5 [degree Celsius] level on a temporary basis with increasing frequency,” said WMO secretary general Prof. Peter Taalas in a news release.Although the WMO suggests the global temperature could temporarily reach that level, separate analyses have previously suggested a more permanent arrival above the 1.5 degree Celsius threshold is more likely to arrive in the 2030s. The WMO suggests there’s a 1 in 3 chance that it will occur in the next five years. The World Meteorological Organization is warning of the following:
- A 66 percent chance, or roughly 2 out of 3 odds, that Earth’s global temperature exceeds the 1.5 degree Celsius (2.7 degree Fahrenheit) above preindustrial levels benchmark at least once in the next five years.
- A 98 percent likelihood, or essentially a guarantee, that at least one of the next five years will go down as Earth’s warmest on record. Records date back to around 1850.
- There is also a 98 percent chance that the upcoming five-year block, 2023 to 2027, could average as the hottest five-year window on record. (The past eight years were the eight warmest on record.)
- Heating of the Arctic is predicted to triple average warming globally. Some peer-reviewed research indicates that a disproportionate warming of the poles can increase the amplitude, or waviness, of the jet stream, leading to more extreme weather patterns. There is also research to suggest reduced periodicity of the jet stream, or a slowing of its west-to-east propagation. That allows weather patterns to become “stuck” for longer.
The past three years have featured a “triple dip” La Niña, or a global weather pattern born from a cooling of the waters in the eastern tropical Pacific. That fostered sinking motion in the air over the Pacific, in turn allowing rising motion and enhanced hurricane seasons in the Atlantic.Now meteorologists are anticipating a flip-flop, with an abrupt warm-up of waters in the eastern Pacific. The Climate Prediction Center at the National Weather Service predicts an 80 percent chance of a moderate El Niño developing in the coming months, with a 55 percent likelihood it will be “strong.” There’s also a 90 percent shot it sticks around into the Northern Hemisphere’s winter months.Earth’s temperature is known to warm during an El Niño. That’s why scientists are concerned about it exacerbating the effects of climate change, which continue to grow.
Multiple large and extremely dangerous tornadoes touch down in Nebraska - - (6 videos) Several tornadoes, described as large and extremely dangerous, wreaked havoc across various parts of Nebraska on Friday, May 12, 2023, causing considerable damage, including destroying farm buildings and downing power lines. 50 Tornado Warnings were issued in the state on that day, the most in a single day since 1998.Nebraska experienced a series of severe weather events as multiple tornadoes, some of them extremely dangerous, touched down across the state on Friday, causing significant damage.The first tornado report came in just after 12:30 CDT near Arnold, Custer County, according to the local emergency management office and the National Weather Service. Several hours later, a second tornado was observed near Spalding, followed by another about 8 km (5 miles) south of Lindsay.The tornado that tracked west of Spalding crossed over 20.9 km (13 miles) of rural terrain. Minor damage was observed to center pivots, trees, power poles, and vehicles. This tornado was rated as EF-1 with a max wind speed of 170 km/h (105 mph), the NWS office in Hastings reported.A particularly large and extremely dangerous tornado was reported near Bartlett at 15:55 CDT. A tornado warning was issued for parts of Garfield and Wheeler Counties as the storm moved through the area. Just minutes later, around 16:00 CDT, another tornado was spotted near Petersburg, located in Boone County. This tornado left a trail of destruction, including damage to small farm buildings and debris scattered across Highway 32.In southeastern Nebraska, a rope tornado was spotted near Table Rock on Saturday afternoon. The region was also pelted by baseball-sized hail as the damaging storm made its way through.At around 17:30 CDT, North Bend was hit by another round of tornadoes. Multiple farmsteads were damaged, and power lines were downed in the area. The National Weather Service issued warnings of a “large and extremely dangerous tornado” as the storm cell continued moving northeast. At least two people were injured.A multiple vortex tornado was also observed near Hopper which was characterized by rain-wrapping curtains, according to a National Weather Service employee. The tornado’s path was approximately 0.8 km (0.5 miles) wide as it passed east of Scribner.This weather event had severe consequences for local farming, with a commercial cattle feedlot near Uehling suffering extensive damage and resulting in the escape of several hundred cattle. Reports of significant farmstead damage continued to pour in from near Oakland into Friday evening.These tornadoes in Nebraska were part of a broader weather pattern that also brought tornadoes to Oklahoma and Kansas on the same day. In total, the National Weather Service’s Storm Prediction Center listed at least 34 preliminary tornado reports for Friday.
Ice jams cause catastrophic flooding in Alaskan riverfront towns - Alaska’s Governor Mike Dunleavy declared a state of disaster on May 14, 2023, in the wake of extensive flooding caused by ice jams and rapid snowmelt along the Kuskokwim and Yukon rivers. Devastating floods sparked by ice jams have wreaked havoc on communities settled along Alaska’s Kuskokwim and Yukon rivers, prompting Governor Mike Dunleavy to declare a state of disaster on Sunday, May 14. The Yukon River, which starts its journey from the coastal mountains of Canada and snakes its way northwest for a span of approximately 3 200 km (2 000 miles), saw a substantial ice jam that led to disastrous flooding in numerous riverside communities. The seasonal phenomenon known as the “spring breakup” in Alaska experienced a minor delay this year due to cooler-than-usual temperatures in April. Nonetheless, recent precipitation and temperatures climbing above freezing in eastern and north-central regions of Alaska have sparked the yearly thawing of the river ice, as stated by Tom Kines, Senior Meteorologist at AccuWeather. The National Weather Service’s (NWS) Fairbanks office had already sounded the alarm in late April, cautioning that this year’s spring breakup could cause substantial flooding in riverside communities. This forecast was grounded in the observed snowpack, recorded ice thickness, and seasonal temperature projections. Ed Plumb, a hydrologist with the NWS, clarified that a solid stretch of ice, spanning between 130 and 145 km (80 to 90 miles) along the Yukon River banks, instigated a significant surge in water levels in the town of Eagle, situated in eastern Alaska. He recounted how both the road connecting Eagle and Eagle Village and some buildings were utterly submerged under ice and water. In a swift turn of events, the water that had flooded Eagle receded on Saturday, leaving behind massive ice blocks and making the roads inaccessible. The downstream movement of ice from the Yukon River put other riverside towns, including Circle, situated roughly 175 km (109 miles) northwest of Eagle, in the danger zone for severe flooding. Within a span of only 30 minutes, the water level in Circle shot up by nearly 3 m (10 feet), a consequence of the ice jam. By the afternoon of Sunday, water levels in Circle had decreased, but the persistent presence of standing water and colossal ice chunks continues to pose a risk to the community. The Alaska state troopers confirmed the safety of all Circle inhabitants and reported zero injuries. Kyle Wright, the environmental health director for the Tanana Chiefs Conference, compared the destruction to the historic breakup floods in Eagle in 2009 and Galena in 2013. Many homes in Circle were affected, with some being carried away or damaged beyond repair. Essential infrastructure and buildings have also been heavily impacted, with the community currently lacking electricity. Efforts are being made to restore power, with the Alaska Energy Authority planning to send generators to temporarily power the village. The community well will need to be disinfected, though a full water storage tank ensures the availability of safe drinking water. In Southwest Alaska, the Kuskokwim River faced a major ice jam stretching 24 km (15 miles), which triggered significant flooding in the communities of Red Devil and Crooked Creek. Aerial footage from the Alaska Region NWS depicted the scale of the floods, with numerous riverside homes swallowed up by the floodwaters. The force of the rushing water was so great that it managed to rip some houses from their foundations. In spite of the calamity, all residents of Crooked Creek were reported safe, and the American Red Cross was on-site to provide shelter and aid to those affected by the floods.
Flash floods in central Somalia leave 22 dead and over 450 000 affected - Since the onset of the Gu Rainy Season (April through June) in 2023, flash floods have devastated central Somalia, resulting in 22 fatalities and leading to a mass evacuation of tens of thousands from their homes. The regions most impacted by these floods include the Belet Weyne District in Hirshabelle State and the Baardheere District in Jubaland State. According to the UN’s Office for the Coordination of Humanitarian Affairs (OCHA), “Initial estimates indicate that the flash and riverine floods across Somalia have affected at least 460 470 people, of whom nearly 219 000 have been displaced from their homes mainly in flood-prone areas, and 22 killed.” The floods have left a trail of destruction, inundating homes and farmland, washing away livestock, temporarily closing schools and health facilities, and damaging roads. The town of Beledweyne, located in the Hiran region, experienced heavy rainfall last week, which led to water flooding homes, and submerging roads and buildings. Residents scrambled to save their possessions and sought refuge, wading through water-filled streets. The disaster strikes as Somalia grapples with a record drought that has pushed millions to the brink of famine. The nation also continues to battle an ongoing insurgency that has lasted for decades. Extreme weather events during the rainy seasons frequently affect East and Central Africa. This month, 135 people lost their lives and over 9 000 became homeless following heavy rainfall in Rwanda, which resulted in floods and landslides. Last week, torrential downpours, floods, and landslides in the eastern Democratic Republic of Congo claimed more than 400 lives.
Weather chaos in Italy: 8 dead, several missing, thousands evacuated in Emilia-Romagna region - Torrential rain and flooding in Italy’s Emilia-Romagna region led to the deaths of five individuals and the evacuation of at least 5 000 people on Wednesday, May 17, 2023. The situation has been described as ‘dramatic,’ with the reality exceeding the worst predictions. The northern Italian region of Emilia-Romagna experienced devastating flooding on May 17, 2023, resulting in at least 5 confirmed deaths and the evacuation of thousands. Additionally, rescue teams are searching for a person reported missing in the province of Ravenna, feared to be another victim of the extreme weather. The deputy head of the Civil Protection Agency, Titti Postiglione, warned early Wednesday morning that further rainfall is expected in the coming hours, and the situation is predicted to become “very, very complicated.” Fourteen rivers in the region overflowed, leading to dramatic rescue operations in cities such as Cesena, where residents stranded on rooftops were saved by firefighters using helicopters and rubber dinghies. Regional chief Stefano Bonaccini took to Facebook to issue a plea to the public. “Do not go near the rivers. Those who live in areas close to watercourses should move to higher floors,” he cautioned. Transportation was significantly disrupted, with many roads and railway lines blocked. Mayors of multiple towns and cities, including Bologna, advised residents to stay at home. The city of Ravenna, situated near the Adriatic coast, was particularly hard hit by the floods. Ravenna Mayor Michele de Pascale described the night to RAI public radio as “probably the worst night in the history of Romagna.” He reported that 5 000 people were evacuated from his city alone overnight. “Ravenna is unrecognizable for the damage it has suffered,” he lamented. Emilia-Romagna Governor Stefano Bonaccini expressed that “the reality has exceeded the worst predictions.” Highlighting the severity of the situation, he mentioned, “the reality is really dramatic in many parts of Emilia-Romagna.” He added that the current rainfall had matched and, in some cases, exceeded that which fell two weeks ago, causing unprecedented flooding. A resident from Faenza, in the province of Ravenna, described a swift and terrifying rise of water levels. The Lamone River, approximately 300 m (1 000 feet) away, burst its banks, causing water to rise almost to the first floor within minutes. This is the second instance of severe weather causing destruction in Emilia-Romagna this month. Earlier in May, storms resulted in at least two fatalities.
More than a month’s worth of rain within 5 days floods parts of Croatia - (videos)Extremely heavy rains hit parts of Croatia over the past 6 days, dropping as much as 300 mm (11.8 inches) in just 2 days and causing widespread floods, most notably in the towns of Gračac and Obrovac. Forecasters predict further downpours in the coming days, exacerbating the already severe conditions. Gračac, one of the worst-affected areas, recorded a massive 425 mm (16.7 inches) of rain in just 5 days, significantly more than its May average of 330 mm (13 inches). The relentless downpour caused rivers to break their banks, resulting in flooded homes, roads, and public buildings. On May 15, 2023, in response to the escalating crisis, authorities dispatched hundreds of soldiers to aid affected residents. Approximately a dozen people in Gračaac were forced to evacuate or seek refuge on the upper floors as the Otuča River overflowed its banks. The town of Obrovac was also flooded as the Zrmanja River burst its banks. In just 24 hours, the city recorded 250 mm (9.8 inches) of rainfall, causing Zrmanja to reach a historic level of 302 cm (9.9 feet) — 39 cm (1.2 feet) above the previous record level. The flooding reached the old town core, the ground floor of the municipal building, and some business premises. By the morning of May 16, water levels dropped to 254 cm (8.3 feet) — this is just slightly less than the previous record level. The rise in the water level of the Una River, approximately 3 cm (1.18 inches) per hour, led to emergency flood defense measures in Hrvatska Kostajnica on May 15. The surge in water levels resulted in the closure of State Road 47, interrupting traffic between Hrvatska Kostajnica and Dvor. On May 17, the water levels of Una in Hrvatska Kostajnica are projected to exceed those recorded in December 2022, when heavy rains flooded the city and forced the declaration of a state of emergency. The Karlovac area is also bracing for very high river water levels, prompting city authorities to prepare for a possible flood. The torrential rains also affected northwestern Bosnia, with the towns of Bihać, Bosanska Krupa, and Cazin, and the municipalities of Ključ and Sanski Most experiencing floods. Weather forecasts predict continued heavy rainfall over the affected regions in the coming two days, suggesting further challenges for these flood-stricken areas. The heaviest rains are expected south of Karlovac where more than 100 mm (4 inches) could fall in a matter of hours.
Tropical Cyclone “Mocha” makes landfall in Myanmar, locals report up to 90% of Sittwe destroyed - Extremely dangerous Tropical Cyclone “Mocha” made landfall near Sittwe, the capital city of Myanmar’s Rakhine State, south of the Bangladesh border, at about 07:00 UTC (13:30 LT) on Sunday, May 14, 2023, with maximum 1-minute sustained winds of 240 km/h (150 mph), and wind gusts up to 305 km/h (190 mph). Approximately 1 million people were evacuated in Bangladesh and Myanmar ahead of the landfall Mocha made landfall as a Category 4 hurricane equivalent, damaging and destroying homes, uprooting trees, downing pylons and cables, and creating a 3.5 m (11.5 feet) tidal surge that inundated the low-lying region Just several hours before making landfall, Mocha intensified into the equivalent of a category-five storm on the Saffir-Simpson hurricane wind scale, making it one of the strongest storms ever recorded in the Bay of Bengal. While the full extent of the damage is still unknown, Sittwe residents are reporting up to 90% of the city destroyed. Electricity and wireless connections were disrupted across much of the city, the BBC reported. Footage online showed roofs being blown off houses, telecom towers brought down, and billboards flying off buildings amid teeming rain across the region. While search and rescue operations and damage assessments are in progress, the entire Rakhine state was declared a natural disaster area. The Myanmar Red Cross Society said it was preparing for a major emergency response.
More than 450 fatalities in Myanmar after landfall of Tropical Cyclone “Mocha” - At least 455 lives were lost after the landfall of Tropical Cyclone “Mocha” just north of Sittwe, the capital of Rakhine State, on Sunday, May 14, 2023. A situational report released by the Myanmar government on May 17 reported a preliminary death toll of 455 and an unspecified number of people missing. 431 deaths were reported in Rakhine, 15 in Magway, 4 in Sagaing, 2 in Shan, and 1 each in Yangon, Ayeyarwady, and Mandalay. An estimated 500 000 households need roofing material, especially tarpaulins, while food and drinking water is urgently required for about 1 million people (in Rakhine state alone). Extensive crop damage has been reported, amounting to at least 17 206 ha (42 517 acres). Mocha made landfall on May 14 with maximum 1-minute sustained winds of 240 km/h (150 mph), and wind gusts up to 305 km/h (190 mph). The cyclone brought heavy rain, causing destructive floods and landslides. The worst affected state is Rakhine, followed by Sagaing, Magway, and Chin.
NASA's New AI System Gives 30-Minute Warning Before CMEs Strike Earth - NASA has built an artificial intelligence system that analyzes satellite data to provide advance warning, like a tornado siren for life-threatening tornados, pinpointing exactly where solar storms will wreak havoc on Earth. The AI system analyzes spacecraft measurements of electrically charged plasma from the Sun, also known as coronal mass ejection, and will be able to determine exactly where the space weather will strike Earth within 30 minutes before impact. Such an early warning system could help power grid operators and others managing critical systems, such as ground and space-based communication devices, take preventive action before a storm arrives. Although these geomagnetic storms vary in intensity from mild to severe, their impact could become disruptive in a world heavily reliant on advanced microchips. Take, for instance, these space weather events:For example, a destructive solar storm in 1989 caused electrical blackouts across Quebec for 12 hours, plunging millions of Canadians into the dark and closing schools and businesses. The most intense solar storm on record, the Carrington Event in 1859, sparked fires at telegraph stations and prevented messages from being sent. If the Carrington Event happened today, it would have even more severe impacts, such as widespread electrical disruptions, persistent blackouts, and interruptions to global communications. Such technological chaos could cripple economies and endanger the safety and livelihoods of people worldwide. -NASAWe have warned over the years that the risk of a devastating CME strike on Earth is increasing as we next "solar maximum" – a peak in the Sun's 11-year activity cycle approaches.
Federal Regulations Fail to Contain Methane Emissions from Landfills - Methane emissions from landfills—one of the largest sources of U.S. greenhouse gas emissions—could be reduced through stronger regulations and better emissions monitoring, according to a new report by the Environmental Integrity Project, an environmental organization based in Washington. The report, published Thursday, concluded that in order to reduce emissions, the U.S. Environmental Protection Agency needs to require more gas-collection systems at landfills, more monitoring and accurate reporting of emissions, and encourage more composting, recycling and reduction in the waste stream by consumers.Municipal landfills, solid waste facilities that receive household garbage, are one of the largest sources of methane emissions in the United States, accounting for 14 percent of all methane emissions, according to the EPA’s annual greenhouse gas inventory.Methane, which is generated from the breakdown of organic waste, is a potent greenhouse gas, approximately 80 times more effective at warming the planet than carbon dioxide over a 20-year period. Methane’s short atmospheric lifetime—methane remains in the atmosphere for just over a decade, while CO2 remains for centuries—means that a significant reduction in methane emissions could have an almost immediate impact on curbing climate change. In 2021, U.S. municipal waste landfills released 3.7 million metric tons of methane. That is equal to the annual greenhouse gas emissions of 66 million gas powered cars or 79 coal fired power plants, the EPA’s greenhouse gas equivalency calculator shows.“Landfills are a significant contributor to a very powerful greenhouse gas,” said Leah Kelly, an attorney with the Environmental Integrity Project and an author of the report. “The EPA needs to update their emissions standards in order to further reduce that pollutant from landfills.”
Landowner battles against pipelines vary by state -- Sprawling Midwestern pipelines that would carry captured carbon dioxide from ethanol plants and other facilities would change little when they cross state lines. The proposals would be constructed the same way in Iowa, Illinois, Minnesota, Nebraska and the Dakotas — with carbon steel pipe ranging from 4 to 24 inches in diameter with operating pressures of up to 2,200 pounds per square inch. But the rules and procedures that determine whether they can be built in the first place vary widely among those states. They range from seemingly no rules at all in Nebraska to Iowa’s robust system, which puts all regulation of the pipelines’ construction and operation into the hands of one governing body. Yet, even in states with rules that give a measure of protection to people who own land in the path of the pipelines, there are calls to strengthen those protections. In three of the states, legislation failed this year that would have restricted or prevented the companies from using eminent domain to gain land easements. It remains unclear whether regulators and courts in each of the states will decide that the projects are worthy of that forced power. Some counties have adopted stricter rules about where the pipelines can be built, and landowners are arguing in court that merely allowing the companies to survey land without permission is unconstitutional. “This is just the beginning,” said Vicki Hulse, a northwest Iowa landowner who is challenging Iowa’s survey law and alluded to further legal challenges as the permit processes advance. “There’s a long ways to go.” The most prominent projects have been proposed by Navigator CO2 Ventures and Summit Carbon Solutions. Navigator wants to build about 1,300 miles of pipe — mostly in Iowa — to transport the greenhouse gas to Illinois for underground sequestration or other commercial purposes. Summit plans a route of more than 2,000 miles that would end with sequestration in North Dakota. While Nebraska has laws concerning pipeline transport of hazardous liquids, such as crude oil, it has not adopted regulations or oversight of carbon dioxide pipelines. A proposal in 2022, which failed to advance in the Nebraska Legislature, was aimed at requiring companies that build carbon dioxide pipelines to remove the pipe once the pipeline was abandoned. A decade ago, in reaction to the controversial Keystone XL pipeline and its initially proposed route across the state’s fragile Sandhills, the Nebraska Legislature passed laws governing the routing of hazardous liquid pipelines. But those do not pertain to carbon dioxide projects. Right now, some counties are considering local ordinances concerning the pipelines, according to Jane Kleeb, founder of Bold Nebraska, the citizen group that led the opposition to the Keystone XL crude oil pipeline. She said at least 430 landowners are rejecting offers to sell right-of-way to carbon dioxide pipeline developers in the Midwest.
Chicago, HUD settle environmental racism case as Lori Lightfoot leaves office - In one of her last acts before leaving office, Mayor Lori Lightfoot backed down from her previous tough stance and agreed to a deal Friday to settle an investigation by the federal Department of Housing and Urban Development that found City Hall effectively has engaged for years in environmental racism. Under the three-year, binding agreement with the Biden administration, Lightfoot pledged City Hall will reform its planning, zoning and land-use practices. That follows a HUD investigation that determined the city of Chicago discriminates against its residents by helping arrange for polluting businesses to move to low-income communities of color such as the Southeast Side sometimes from wealthier, heavily white communities including Lincoln Park. The “voluntary compliance agreement” is the result of a civil rights complaint over a Southeast Side scrap-metal operation. That complaint by community groups led to the HUD investigation. Last year, HUD investigators accused the city of intentionally steering polluters to neighborhoods already overburdened with pollution and threatened to withhold tens of millions of dollars a year in federal funding if the city doesn’t change its practices.
EPA looks to toss 'deceptive' plastics recycling symbol - EPA is urging the Federal Trade Commission to ditch the iconic chasing arrows recycling symbol for plastics, a move the environmental agency says will help prevent more plastic material from entering landfills and incinerators.EPA’s recommendation comes as the agency struggles to address the nation’s low recycling rates and as calls mount to curb the global plastic pollution crisis.The agency’s push is backed by both environmentalists and the plastics industry, which have often diverged on solutions to address the plastic pollution and its toll on the environment, wildlife and human health.At issue is the chasing arrows symbol combined with “resin identification code,” a number from 1 through 7 that appears in the middle of the symbol. That code was never meant to signal the recyclability of a product, according to international standards organization ASTM, and pairing the universally accepted recycling symbol with the resin identification code is “confusing,” EPA said in a comment to FTC.“Plastics are a significant problem that need to be addressed,” EPA wrote in the comment. “Categorizing plastics by resin identification code coupled with chasing arrow symbols does not accurately represent recyclability as many plastics (especially 3-7) do not have end markets and are not financially viable to recycle.” EPA was one of 7,000-plus groups or individuals that submitted a comment on how FTC should update its Green Guides. The guides, which haven’t been updated since 2012, are meant to prevent companies from misleading consumers by marketing their products as environmentally friendly when they’re not as “green” as they claim. “EPA believes updates to the FTC Green Guides ‘recyclable’ claims can be a tool to reduce consumer confusion that contributes to recycling facilities receiving many plastic materials that they do not accept and cannot recycle, which adds a financial burden to facilities and taxpayers to haul, process and ultimately incinerate or landfill this contamination,” the agency’s comments said.FTC’s current standard says if the symbol and resin code are placed “in an inconspicuous location,” such as the bottom of the container, then “it would not constitute a recyclable claim.” But EPA argues that’s still misleading, and it suggests FTC adopt ASTM’s standard, which replaces the chasing arrows symbol with a solid triangle outline for all plastics. “The issue is not the resin codes themselves, but the implication that all of them can be recycled. This implication is made when the numbers are combined with the chasing arrows symbol, which is why the combination becomes deceptive or misleading,” Jennie Romer, a well-known plastics ban advocate and deputy assistant administrator in EPA’s pollution and chemicals office, wrote in the comment to FTC on behalf of the agency.
Feds point purchasing power at low-carbon construction - The Biden administration will begin purchasing lower-carbon construction materials under a new pilot program designed to reduce federal buildings’ climate impacts.The General Services Administration on Tuesday announced new requirements for the procurement of “substantially lower embodied carbon construction materials” for agency construction projects. It’s part of a broader effort by the administration to shrink its carbon footprint while stimulating American manufacturing of more environmentally friendly products.The new purchasing plan, funded by a $2.15 billion program in the Inflation Reduction Act, builds on the administration’s “Buy Clean” initiative, designed to spur the markets for materials that have lower levels of embodied carbon, or greenhouse gas emissions associated with manufacturing, transportation and construction. “Today’s announcement marks a major step forward in our efforts to use the federal government’s buying power to catalyze innovation and strengthen American leadership in clean manufacturing and jobs,” GSA Administrator Robin Carnahan said in a statement.The pilot program for the new purchasing requirements will last six months and will apply to 11 GSA construction and modernization projects that are expected to use more than $300 million worth of lower-embodied-carbon materials. Projects span eight states and the District of Columbia and include construction work for a courthouse, a port and a parking garage.The requirements are based on guidelines developed by EPA to help GSA meet the Inflation Reduction Act’s requirements for cleaner construction materials. EPA defines “substantially lower” embodied carbon as carbon levels in the bottom 20 percent compared with other products, according to an interim determination released in December.GSA plans to use the pilot program to learn about the market availability of certain products and supply chain gaps. It will use feedback to develop a final set of procurement requirements.The American Council for an Energy-Efficient Economy, which advocates for clean energy investments, said in a blog post this month that the “Buy Clean” requirements will be particularly important for the iron and steel industry, which accounts for about 7 percent of industrial carbon emissions in the United States.
Biden plan to sell land leases for conservation gets pushback — Biden administration officials on Monday sought to dispel worries they want to exclude oil drilling, livestock grazing and other activities from vast government-owned lands, as they faced pushback from Republicans and ranchers and over a contentious proposal to put conservation on equal footing with industry.The proposal would allow conservationists and others to lease federally owned land to restore it, much the same way oil companies buy leases to drill and ranchers pay to graze cattle. Leases also could be bought on behalf of companies such as oil drillers who want to offset damage to public land by restoring acreage elsewhere.But more than a century after the U.S. started selling grazing permits and oil and gas leases, the proposal is stirring debate over the best use of public land, primarily in the West. Opponents including Republican lawmakers and agriculture industry representatives are blasting it as a backdoor way to exclude mining, energy development and agriculture.Tracy Stone-Manning, director of the Bureau of Land Management, told The Associated the proposed changes address rising pressure from climate change and development. She said it would make conservation an “equal” to grazing, drilling and other uses while not interfering with them.The bureau has a history of industry-friendly policies for the 380,000 square miles (990,000 square kilometers) it oversees, an area more than twice the size of California. It also regulates publicly owned underground minerals, including oil, coal and lithium for renewable energy across more than 1 million square miles (2.5 million square kilometers).Those holdings put the agency at the center of arguments over how much development should be allowed.Senior bureau officials on Monday night hosted the first virtual public meeting about the conservation proposal. There was no opportunity for public comment, and questions for officials were screened by the agency. But officials acknowledged receiving numerous queries about grazing and drilling potentially being excluded. U.S. Sen. John Barrasso, a Wyoming Republican who tried to block Stone-Manning’s 2021 Senate confirmation, says the proposed rule is illegal.Earlier this month he berated Interior Secretary Deb Haaland over it during an Energy and Natural Resources Committee hearing, saying she was “giving radicals a new tool to shut out the public.”“The secretary wants to make non-use a use,” said Barrasso, the ranking Republican on the committee. “She is ... turning federal law on its head.”
Team Biden doles out carbon storage funding - The Energy Department today will announce $251 million to back projects in multiple states for developing or expanding large-scale carbon storage and transport, Biden officials are keen to speed the deployment of tech that could become a major tool against global warming. Large-scale carbon capture and storage, or CCS, has been slow to achieve widespread commercial liftoff, but there are signs of fresh momentum. Driving the news: It's the first wave of funding from a pair of programs in the 2021 bipartisan infrastructure law. The bulk, $242 million, is from the $2.25 billion Carbon Storage Validation and Testing program. The balance goes to engineering studies for large-scale CO2 pipeline networks under the Carbon Capture and Technology program. "DOE is building out the infrastructure needed to slash harmful carbon pollution from industry and the power sector," U.S. Secretary of Energy Jennifer M. Granholm said. The nine storage projects across seven states include...
- $33.4M to support site characterization and permitting of two BP storage sites along the Texas Gulf Coast.
- $32.7M for Colorado School of Mines' work to develop a CO2 storage hub for emissions from cement, hydrogen and power plants.
- $18M for the Southern States Energy Board for site characterization and permitting for a storage hub in Alabama.
- $40.5M for the University of Wyoming for work on a "commercial, multi-source, large-scale carbon capture and storage hub" in the state.
Biden administration announces $11 billion for rural clean energy projects - (Reuters) - Rural electric cooperatives, utilities, and other energy providers will soon be able to apply for nearly $11 billion in grants and loans for clean energy projects, funded by the $430 billion Inflation Reduction Act signed into law last August, the Biden administration said on Tuesday. Expanding clean energy to rural communities is critical to meeting the administration's goal of net-zero emissions by 2050, officials told reporters on a Monday press call. "This is an exciting and an historic day and continues an ongoing effort to ensure that rural America is a full participant in the clean energy economy," said Agriculture Secretary Tom Vilsack on the call. Rural electric cooperatives will be eligible to apply beginning July 31 for $9.7 billion in grants for deploying renewable energy, zero-emission, and carbon capture systems, the Department of Agriculture (USDA) said. Renewable energy developers and electric service providers like municipal and Tribal utilities will be eligible to apply beginning June 30 for another $1 billion in partially forgivable loans for financing wind, solar, geothermal, biomass, and other renewable energy projects, USDA said.
Biden admin launches $11B program to electrify rural America - The Agriculture Department is kicking off the awards process for nearly $11 billion in funding to electrify and decarbonize rural parts of the United States.Drawing from two pots of money enacted in the Inflation Reduction Act, the funding is available for a sweeping set of potential projects, from new or retrofitted transmission lines to hydrogen projects to carbon capture. It is the largest single investment in rural electrification since the New Deal, according to the Biden administration. “This is about renewable energy systems. It’s about zero-emissions systems. It’s about carbon capture systems,” Agriculture Secretary Tom Vilsack told reporters on a call Monday.The funding is part of the administration’s strategy to use hundreds of billions of dollars in the IRA and the 2021 bipartisan infrastructure package to achieve its energy and climate objectives. More than $435 billion in private-sector investments has been announced following passage of those laws and the CHIPS and Science Act, the White House says.Top administration officials said the financial support shows President Joe Biden’s commitment to rural America. Last week, the Energy Department announced $50 million in clean energy grants for rural communities.“Investing in rural America is absolutely central to President Biden’s Investing in America agenda,” John Podesta, senior adviser to the president for clean energy innovation and implementation, said on the call. “It’ll make families healthier by cutting harmful pollution, and because clean energy is increasingly cheap energy, it’ll help families, farms and small businesses across rural America save money.”The announcement comes as large swaths of rural America continue to lean Republican. Many lawmakers that represent rural districts, for example, recently tried to repeal an EPA regulation to define the reach of the Clean Water Act, a regulation that’s been hotly contested for years and generates fierce opposition from agricultural communities. The lawmakers fell short of a veto-proof majority. It remains unclear how much the electrification funding might shift local politics. Recent polling from the Pew Research Center shows that energy and climate change rank lower as priorities than issues like the economy and health care for many Americans. Also, shifting the electricity system of rural America faces numerous challenges. Transmission, for example, has long been difficult to permit and construct, with some projects taking a decade or longer. Renewable energy can take up large amounts of land, creating potential conflicts with landowners and farmers.Carbon capture technology also has not been used widely in the power sector, and existing carbon dioxide pipeline proposals are creating pushback in rural areas of the Midwest.Even so, EPA’s major proposal last week to regulate emissions in the power sector relies heavily on carbon capture and storage (CCS).
Is carbon capture viable? In a new rule, the EPA is asking power plants to prove it. --- For years, fossil fuel companies and utilities have touted carbon capture and storage, or CCS, as a way to cut climate pollution from the power sector. Now, federal regulators are asking them to walk the walk. The U.S. Environmental Protection Agency, or EPA, on Thursday proposed a new rule to nearly eliminate climate pollution from the nation’s coal- and natural gas-fired power plants by 2040. In contrast to previously proposed regulations that required “generation-shifting” — forcing utility companies to replace their fossil fuel-fired power generators with renewables, a strategy that the Supreme Court shot down last summer — the new proposal focuses on what’s achievable using technologies like carbon capture and storage, or CCS. At least, they focus on what’s theoretically achievable based on optimistic projections from CCS’s proponents. Although the EPA says CCS technology is “adequately demonstrated” and “highly cost-effective,” experts are deeply skeptical that it can deliver on its promised emissions reductions. In the end, some told Grist that fossil fuel power plants could find it more economical to shut down and switch to renewable energy. “The EPA is calling the bluff on the power industry,” said Charles Harvey, a professor of civil and environmental engineering at the Massachusetts Institute of Technology. “There have been so many arguments that they’ve made in favor of CCS as a mature technology. … Now the EPA is saying ‘OK, you have to do it,’ and I don’t think they really can.” To be clear, EPA’s proposed standards don’t mandate a specific emissions reduction strategy, since that was deemed beyond the EPA’s authority by the Supreme Court. Instead, the agency put forward overall pollution caps, with different limits depending on the fuel facilities use (e.g., coal or natural gas), how frequently they run, and how long they plan to remain in operation. Starting in 2030, the rule would require almost all fossil fuel power plants to begin driving down their emissions, with the most stringent requirements for coal-fired power plants and the most frequently used natural gas plants. According to the EPA, ts proposed rules would cut 617 million metric tons of CO2 emissions through 2042 — an amount equal to about 40 percent of the power sector’s emissions in 2022.. The agency highlights two technology-based “pathways” that power plants could choose: one based on CCS, which uses chemical reactions to strip carbon out of the emissions that come out of a facility’s smokestacks, and the other involving hydrogen, which can be blended with natural gas to reduce greenhouse gas emissions. Industry groups have promised much from CCS, saying that it can — or will — be capable of capturing 90 percent of a power plant’s greenhouse gas emissions, and the EPA’s 680-page proposed rulemaking seems to take those promises at face value. The document cites a long history of research into the technology, as well as declining costs for its deployment, thanks to unprecedented funding for CCS included in the Biden administration’s 2022 climate spending law. But despite this long history, CCS doesn’t have a strong track record of actually sequestering carbon — especially for the power sector, where 90 percent of proposed carbon capture capacity has failed or never gotten off the ground. In the 2010s, the Department of Energy supported five demonstration projects with some $2 billion in funding, but only one ever became operational. That project, attached to a coal-burning power plant near Houston, Texas, called Petra Nova, closed in 2020, leaving just one commercial power plant in the entire world still using carbon capture: the Boundary Dam coal plant in Saskatchewan, Canada.
Kerry challenges oil industry to prove its promised tech rescue for climate-wrecking emissions (AP) — Oil and gas producers talk up technological breakthroughs they say will soon allow the world to drill and burn fossil fuels without worsening global warming. U.S. climate envoy John Kerry says the time is here for the industry to prove it can make the technology happen — at scale, affordably and quickly — to stave off climate disaster. And Kerry says he has “serious questions” whether it can. Kerry's comments came in an interview with The Associated Press on one of the most crucial topics in the fight to slow global warming: the argument from oil and gas producers that they will soon have technology in place to extract the climate-damaging gases that make fossil fuels the main culprit in climate change, allowing companies to keep pumping crude and natural gas worry-free.Kerry said the ideal solution is a fast global switch to renewable energy, but oil and gas states and companies have a right to give their claim of technological rescue a try.“If you're able to abate the emissions, capture it,” Kerry said this past week at his climate team's offices at the State Department. “But we don't have that at-scale yet. And we can’t sit here and just pretend we’re going to automatically have something we don’t have today. Because we might not. It might not work. Globally, the point matters because oil and gas companies point to the hope of technology that can one day scour away most of the climate-wrecking carbon to stave off public and government pressure for the world to pivot faster away from fossil fuels and to solar, wind and other cleaner energy.“What they’re banking on is that they’re going to be able to do the emissions capture,” Kerry said of oil and gas companies. He ticked off the stages of operations that would involve.“If you can do those things, you may be able to make it economically competitive,” he said, adding, “I have some serious questions about whether it will be price-competitive.”Especially since 2015, when the United States and nearly 200 other governments committed to cut emissions to avoid the most disastrous scenarios of global warming, oil producers have spent hundreds of millions of dollars in public campaigns portraying themselves as climate-friendly. Industry ads and social media campaigns often suggest the carbon-purging technology is already on the job, extracting the climate-damaging gases from oil and gas facilities' around the world.“CO2 capture and transportation technologies have been operating safely across the globe and in the US for many years,” the website of oil giant BP says.“Technologies capture CO2 emissions at source or directly from the air,” Saudi state oil giant Aramco says, describing the carbon then being stored safely underground or turned into “useful products.”In reality, the technology to capture one major climate-damaging gas,methane, from oil and gas operations does exist, and is awaiting investment to roll out at scale. But the technology to capture the biggest climate agent, carbon dioxide, remains limited in scale and costly, and often energy-intensive in its own right.
A crucial climate technology provokes fears in oil country - Louisiana’s Lake Maurepas is a large tidal estuary at the confluence of four rivers, a geographic lace-hole in the boot-shaped state. Today, it’s known mainly for shrimping. But if a company called Air Products gets its way, the 93-square-mile expanse will also be the setting for a mile-deep pool of carbon dioxide, a project aided by the Biden administration’s big bet on carbon capture technology. Many Louisiana residents are big supporters of the oil and gas industry, but they worry about the idea of using relatively untested technology to pump 5 million metric tons a year of carbon dioxide — more than what 1 million cars emit in a year — into a cavern underneath the smooth waters of their lake. Kim Landry Coates, a council member of neighboring Tangipahoa Parish, said many of her constituents are concerned about burying the colorless, odorless gas that, in high concentrations, can choke people unconscious. Or worse. One thing is particularly worrisome, Coates said. And that’s the fact that the Environmental Protection Agency, the part of the federal government currently tasked with analyzing applications to store carbon dioxide underground, is looking to pass that job to the Louisiana Department of Natural Resources. The department has said it has so few employees with expertise in the matter that it will have to outsource positions. “The oversight and making sure things aren’t going to go really bad is a huge concern,” Coates said. “I don’t think they will be equipped.” The people of Tangipahoa Parish are hardly alone, as chemical companies rush to claim $12 billion authorized in the Inflation Reduction Act to create massive underground storage structures for potentially deadly carbon. Already, hundreds of applications are flowing into state and federal authorities for what some industry analysts estimate could become a $4 trillion industry by 2050. But a three-month POLITICO investigation shows that both the federal government and the states are far short of the resources necessary to properly investigate and ensure the safety of a dangerous emerging technology.
Biden's got a plan for ramping up energy transmission -Last week, the White House released a comprehensive plan that could help fix America’s dysfunctional energy transmission system. The aim is to break down the barriers that are holding back the buildout of the truly massive amount of high-voltage power lines the country needs to connect clean energy projects to the grid and decarbonize the nation’s electricity supply.Now the question is how much of the plan can be passed through a politically fractured Congress — and if the answer is none, how much of the plan can be pushed through via executive actions by the Biden administration.The stakes are enormous — and the deadlines are looming. Over the past decade, the growth of the U.S. transmission grid has slowed from 2,000 miles per year between 2012 and 2016 to just700 miles per year from 2017 to 2021, according to the Department of Energy. Large-scale transmission projects can face decades of disputes over permitting and cost-sharing. New wind and solar projects currently face yearslong backlogs and rising grid-upgrade costs due to the lack of adequate transmission capacity.If the U.S. can’t rapidly speed grid buildout to accommodate this new clean power, the country won’t be able to realize the majority of the decarbonization potential unlocked by the Inflation Reduction Act, according to a comprehensive study led by Princeton University researchers.“Given that we have to increase electric transmission 60 percent over the next seven years — which means building transmission lines at twice our current pace — we have to fix this problem now,” John Podesta, senior advisor to the president for clean energy innovation and implementation, said in a May 10 speech in Washington, D.C. introducing the new plan. The White House plan includes a set of priorities it’s asking Congress to take up in permitting reform legislation, including a host of proposals to streamline the processes for siting and permitting transmission lines and connecting clean energy projects to the grid. It also incorporates steps being taken by federal agencies independent of congressional action, including a streamlined process for interagency review and a commitment to reduce the time for federal permitting and environmental review of proposed transmission projects to no more than two years.But the fixes won’t be easy. The mechanisms of delay for transmission buildout “are pervasive at every level of government — federal, state, and local,” Podesta said.
The Energy Transition Has A Metals Problem - Copper prices this week fell to the lowest since last November on weak economic data from China. Yet the International Copper Study Group, a group of copper exporters and importers, just said it expected a deficit of the metal this year. Others, such as commodity giant Trafigura, are sounding the alarm for long-term shortages, too, expecting record prices for the metal, without which the energy transition would be impossible. Yet prices remain weak. And this is a big problem. Wind and solar installations require between eight and 12 times more copper than coal and gas generation capacity, according to the International Bar Association. EVs notoriously require three to four times more of the basic metal than internal combustion engine vehicles.A transition to net zero would thus require much more copper than we are producing now on a global scale. According to S&P Global, demand for copper will double by 2035. According to McKinsey, by 2031, the world will face a gap of more than 6 million tons annually between the demand for copper and its supply. The ICSG said earlier this year that only two new copper mines were brought online between 2017 and 2021. It also said that copper output last year increased by a lot less than it expected, and the same is true for this year. Something is not quite right with copper. And copper is just one of the dozen or more metals of which we would need more if we are going to hit net-zero targets.These begin to seem extremely elusive in the context of the latest trends in the mining industry. One of these—perhaps the most worrying—is that it would now take 23 years for a mine to go from the discovery of copper to the start of actual industrial production.That’s more than the time the UK and California have set themselves to become all-electrified in the passenger transport department. And it means there will not be enough copper for all the EVs they eye by 2035.Just months ago, miners were talking about a decade from discovery to production, but with more stringent environmental regulations in mineral-rich developed countries and fast-evolving regulation in developing countries, this is where the industry is at: 23 years, according to data from consultancy Airguide, as reported by Reuters’ Clyde Russell. The numbers, interestingly, were reported at a mining industry conference where attendants failed to find anything nice to say about permitting regimes in most mineral-rich jurisdictions, too. The U.S. administration has been promising faster mine permitting, but even if it lives up to that promise, there are activists to consider, too—activists who might like wind and solar, but seem to like nature as it is more. And who have proved they can stop new mining developments. What’s more, activism of this sort is evolving, and now commentators have coined a new term to replace the widespread not-in-my-back-yard sentiment among both activists and regular taxpayers. Instead of NIMBY, they are now talking about BANANA, or Build Absolutely Nothing Anywhere Near Anybody. These people, Russell says in his report, are, for the mining industry, the same people who are the loudest proponents of the energy transition. And they are effectively the people who are hard at work to make that transition impossible.
US greenlights major transmission line for renewable energy in Western states (AP) — The U.S. government is greenlighting a proposed multibillion-dollar transmission line that would send primarily wind-generated electricity from the rural plains of New Mexico to big cities in the West.The Interior Department announced its record of decision for the SunZia project Thursday. It comes about a year after an environmental review was completed as part of a broader effort by the Biden administration to clear the way for major transmission projects as it looks to meet climate goals and shore up the nation's power grid.The SunZia transmission project in New Mexico has been more than a decade in the making. The U.S. Defense Department and others initially raised concerns about the path of the high-voltage lines, prompting the developer to submit a new application in 2021 to modify the route.New Mexico’s renewable energy authority is among those invested in the SunZia project, which would include roughly 520 miles (836 kilometers) of transmission lines and a network of substations for getting wind and solar power to Arizona and California.The anchor tenant is California-based Pattern Energy, which has been busy building massive wind farms in central New Mexico. Federal land managers said they completed the latest review in less than two years.“The Department of the Interior is committed to expanding clean energy development to address climate change, enhance America’s energy security and provide for good-paying union jobs,” Laura Daniel-Davis, principal deputy assistant secretary for land and minerals management, said in a statement.The Bureau of Land Management has approved nearly three dozenrenewable energy and grid improvement projects since 2021. Included are solar and geothermal projects that officials said would be capable of producing enough electricity to power more than 2.6 million homes.More than 150 applications for solar and wind development are still in the agency's queue, official said.Land managers also are reviewing two other major transmission projects that would funnel electricity generated from renewable sources in remote spots to large western markets. One would run through seven counties from Las Vegas to Reno, Nevada, and the other would stretch between central Utah and east-central Nevada.Pattern Energy announced Monday that it signed long-term purchase agreements with Shell Energy North America and the University of California for a portion of the electricity that will be flowing through SunZia. Construction is expected to start later this year. It will be about three years until the line begins delivering power, the company said. Meanwhile, steel, concrete, aluminum and construction equipment will give it the largest carbon footprint in the southwest.
Will Biden's hard-hat environmentalism bridge the divide on clean energy future? (AP) — When John Podesta left his job as an adviser to President Barack Obama nearly a decade ago, he was confident that hundreds of miles of new power transmission lines were coming to the Southwest, expanding the reach of clean energy throughout the region. So Podesta was shocked to learn last year, as he reentered the federal government to work on climate issues for President Joe Biden, that the lines had never been built. They still hadn't even received final regulatory approval.“These things get stuck and they don’t get unstuck,” Podesta said in an interview with The Associated Press.Podesta is now the point person for untangling one of Biden's most vexing challenges as he pursues ambitious reductions in greenhouse gas emissions. If the president cannot streamline the permitting process for power plants, transmission lines and other projects, the country is unlikely to have the infrastructure needed for a future powered by carbon-free electricity.The issue has become an unlikely feature of high-stakes budget talksunderway between the White House and House Republicans as they try to avoid a first-ever default on the country's debt by the end of the month.Whether a deal on permitting can be reached in time is unclear, with Republicans looking for ways to boost oil drilling and Democrats focused on clean energy. But its mere presence on the negotiating table is a sign of how political battle lines are shifting. Although American industry and labor unions have long chafed at these kinds of regulations, some environmentalists have now grown exasperated by red tape as well. That represents a stark change for a movement that has been more dedicated to slowing development than championing it, and it has caused unease among longtime allies even as it creates the potential for new partnerships. Still, this transformation is core to Biden's vision of hard-hat environmentalism, which promises that shifting away from fossil fuels will generate blue-collar jobs. “We have to start building things again in America," Podesta said. "We got too good at stopping things, and not good enough at building things.”What gets built, of course, is the question that's the central hurdle for any agreement.The issue of permitting emerged last year during negotiations with Sen. Joe Manchin, a West Virginia Democrat who was a key vote for the Inflation Reduction Act, far-reaching legislation that includes financial incentives for clean energy.Manchin pushed a separate proposal that would make it easier to build infrastructure for renewable energy and fossil fuels. His focus has been the Mountain Valley Pipeline, which would carry natural gas through his home state.Republicans called the legislation a “political payoff.” Liberal Democrats described it as a “dirty side deal." Manchin's idea stalled. Nonetheless, Elizabeth Gore, senior vice president for political affairs at the Environmental Defense Fund, said the senator “gets a lot of credit for really elevating this.”“It was his effort that really put this issue on the map," she said.Since then, the Capitol has been awash in proposals to alleviate permitting bottlenecks. House Republicans passed their own as part of budget legislation last month, aiming to increase production of oil, natural gas and coal. Sen. Tom Carper, D-Del., recently introduced another proposal geared toward clean energy.“I think there is a path forward,” Gore said, describing all the ideas “as stepping stones.”
Biden infrastructure adviser: Speed up clean energy permits - Count President Joe Biden’s senior infrastructure adviser Mitch Landrieu among the administration officials eager to see action to speed up the process for approving energy projects.Landrieu, a former New Orleans mayor who’s leading the White House coordination of the huge bipartisan infrastructure law, stressed the administration’s desire to overhaul the process as permitting talks are heating up on Capitol Hill.Republicans are hopeful that they might be able to include permitting reform as part of a deal to raise the debt ceiling, and Sen. Joe Manchin (D-W.Va.) wants to advance his permitting overhaul effort this summer.“When you’re trying to build new things and you’re trying to build things fast, you got two major issues that you’re working through,” Landrieu said Friday at a White House press briefing. “One of them is permitting, and one of them is workforce. And of course from the beginning, we have been working on getting things built faster and permitting things faster.”That includes a desire to move faster on clean energy, Landrieu said.Biden supports Manchin’s legislation that would overhaul the permitting process. The West Virginia Democrat said this week that he wants to get a permitting reform bill on the Senate floor before the summer recess.“The president continues to support that bill,” Landrieu said Friday. “On the executive branch side, we’re doing everything we can to speed up how we actually greenlight projects.”White House senior adviser John Podesta, who’s leading the rollout of the climate and clean energy law enacted last year, also urged lawmakers this week to negotiate a deal to speed up the sometimes cumbersome permitting process. But Podesta stressed that he did not want the permitting talks to be tied to the debt ceiling negotiations.“We think everything needs to be delinked from the debt ceiling fight,” Podesta said Wednesday.Asked Friday about permitting reform and negotiations to raise the debt ceiling, Landrieu said, “They’re not necessarily connected.”Landrieu also defended the Biden administration’s draft climate rules for power plants that EPA unveiled Thursday.“Everything requires a balance,” Landrieu said in response to criticisms from industry that the rules could raise energy prices and threaten the energy supply.“With everything that we do, somebody will say you’re going too fast. Somebody will say you’re going too slow,” Landrieu said. “Our job is to try to get it just right.”
Editorial: Get rid of red tape hurting rebuilding of America - nola.com - The words that rarely come together in a sentence, “Congress,” “agree,” “White House,” now have a chance. That is because of the proposal by a prominent Democratic senator, with the approval of the Biden administration, to push reasonable reductions in the endless permitting and reviews that hobble building projects. For U.S. Sen. Joe Manchin, D-W.V., the bill is a way to get some oil and gas projects through the labyrinth of rules and reviews that are often mobilized by environmentalists and grassroots activists to delay projects for years. The Trump administration worked to make accommodations in environmental reviews amid considerable agreement that today’s process is literally fossilized, in the sense that fossil fuel projects are so often targeted by lawsuits. What’s in it for the White House? Delays can hobble cleaner-energy projects too. And construction of new transmission lines for electricity, in particular, are vital to achieving the emissions reductions President Joe Biden wants. “Right now, the permitting process for clean energy infrastructure, including transmission, is plagued by delays and bottlenecks,” Biden’s “climate czar” John Podesta told a Washington audience. “We’ve got to fix this problem now.” Republicans ought to be pushing for agreement to this rare outburst of common sense in the Biden administration when it comes to energy. Environmental groups are already crying betrayal, but this is not an end to environmental reviews. The nation needs more energy of all types, not over-lawyered rules and regs that Podesta said, quite accurately, can bog down needed projects for years before a shovel of dirt is turned. We think natural-gas pipelines, a cleaner-burning fuel, should be expedited where possible.
Manchin blocks DOE nominee over gas stoves - Senate Energy and Natural Resources Chair Joe Manchin scrapped a planned vote on a prominent Department of Energy nominee Wednesday morning. The West Virginia Democrat pulled Jeff Marootian, nominee to lead the Department of Energy’s Office of Energy Efficiency and Renewable Energy, from a markup agenda because of the agency’s proposed rules on gas stoves. “While I appreciate that these rules would only apply to new stoves, my view is that it’s part of a broader, administrationwide effort to eliminate fossil fuels,” Manchin said. “For that reason, I’m not comfortable moving forward with Mr. Marootian at this time.” DOE has proposed efficiency regulations, led by the EERE office, on new stoves that would reduce energy use by about 30 percent for both gas models and for electric smooth-top models. The standards would disqualify about 50 percent of gas stoves on the market today, something that has exasperated Republicans and some moderate Democrats. Manchin supported Marootian in December, but the nominee failed to secure full Senate confirmation before the Congress closed. Now, his bid to join the administration appears all but dead. Manchin did support David Crane’s nomination for undersecretary of Energy for infrastructure. The current director of DOE’s Office of Clean Energy Demonstrations passed the committee 13-6 with the support of all Democrats and three Republicans. Crane is a former CEO of Climate Real Impact Solutions and NRG Energy Inc., and has served on the board of multiple energy companies. The committee also approved a long slate of bills to augment the country’s domestic uranium industry and address a number of natural resource concernsThe “Nuclear Fuel Security Act,” S. 452 — led by Manchin, ranking member John Barrasso (R-Wyo.) and Idaho Republican Jim Risch— passed by voice vote.The bill would authorize $3.5 billion for DOE to kick-start the domestic uranium enrichment and conversion industry, which has been mostly nonexistent for decades.Russia currently supplies about 20 percent of the low-enriched uranium used to power American nuclear reactors and controls the only commercial supply of high-assay, low-enriched uranium that many of the advanced reactors coming online in the coming years will need.The bipartisan bill represents a desire to reduce foreign dependence as much as possible by bolstering the domestic uranium industry with significant public funding. An amendment from Barrasso would reduce Russian uranium imports over the next five years.“We need to give America’s nuclear fuel suppliers market certainty,” said Barrasso. “For decades, Russia has undermined America’s nuclear fuel suppliers with unfair trade practices.”Committee members also passed Manchin and Barrasso’s “America’s Outdoor Recreation Act,” S. 873, which was originally introduced last Congress but didn’t make the cut in the final omnibus spending package.The bill would enhance existing recreation sites on federal lands, promote public-private partnerships to revamp campgrounds, and provide financial and technical assistance to businesses in communities close to recreation areas.
Tax credit for clean energy raises concern from some U.S. industries - As the Biden administration pushes the solar and wind power industries to move their manufacturing back to the United States, a soon-to-be-enacted tax incentive is touching off heated debate over who should get the credit for making products here. The shape of a new, lucrative “domestic content” bonus for clean energy manufacturing came into focus Friday morning when the Treasury Department unveiled its plan for awarding the subsidy. The tax credit, part of the landmark climate package President Biden signed last year known as the Inflation Reduction Act, is expected to help drive billions of dollars in new investment for companies that build their products in the United States and source their steel, iron and other materials domestically. But the proposal also underscores how challenging it will be to move some lines of production away from China. In the case of the solar industry, some American manufacturers were disappointed to learn that panels will qualify for the 10 percent tax credit even if a crucial component in them, polysilicon wafers, does not come from the United States. China dominates the market for the wafers and the polysilicon used in them, controlling some 95 percent of the supply. Even as American companies make plans to revive a domestic industry for those products, some solar trade groups warned that too many firms would lose out on the credit if it were conditioned on a domestic wafer supply chain that does not yet exist. Mike Carr, executive director of the Solar Energy Manufacturers for America Coalition, a group that represents domestic companies seeking to manufacture wafers, called the administration’s plan for the credit “a missed opportunity to build a domestic solar manufacturing supply chain and advance our climate goals.” “Today’s announcement will likely result in the scaling back of planned investments in the critical areas of solar wafer, ingot, and polysilicon production,” Carr said in a statement. “As long as the U.S. does not have an end-to-end solar manufacturing supply chain of all the core components of a solar panel, there is more work to be done.”
How PJM, America’s biggest grid operator, got its reliability report wrong -When the nation’s biggest power grid operator speaks about electricity reliability, people listen — especially now, with weather extremes challenging the grid year-round. With a loud and influential microphone comes responsibility to get analysis right, a standard grid operator PJM Interconnection did not meet with itsreport on power plant retirements and reliability. It stands in dire need of correction.During Winter Storm Elliott, PJM, the grid operator for 13 states in the mid-Atlantic and Ohio River Valley, barely kept the lights on for 65 million people while about one-third of the region’s capacity was unable to generate electricity. The culprit was overwhelmingly coal and gas generators experiencing mechanical problems in the severe cold or deciding not to purchase the gas needed to run. These fossil fuel plants had been paid hundreds of millions of dollars to be there when consumers needed them, but they didn’t show up. Less than two months later, PJM issued a report ironically expressing concerns that there could be reliability issues created by these same fossil fuel units retiring too quickly. The report ignores the glaring performance problems of fossil fuel power plants in extreme weather. It also neglects the need to reassess how their commitments to be online when ordered to run by PJM — their “capacity” — are valued. But the deepest flaw in the grid operator’s analysis is how it inexplicably assumes its own capacity market for buying these commitments will stop working. PJM’s capacity market exists solely to ensure that the PJM region has more than enough power generators on hand to meet demand peaks and spikes. Indeed, this market regularly buys far more capacity than is needed. As in most markets, when the supply of capacity gets tighter, prices go up. But PJM mistakenly assumes that market prices will not respond to the high rate of fossil fuel retirements. In reality, the capacity market will attract new resources to enter the market and encourage some existing generators to stay around longer. More supply will in turn bring capacity prices back down. A recently published report by Wilson Energy Economics debunks PJM’s analysis on this basis, and others. Not only does PJM bizarrely ignore the role its own market would play in preventing the situation it warns of, but it also assumes that demand will increase far more than PJM has previously forecasted. In reaching its most dire predictions, the report ignores how the Inflation Reduction Act — an enormously significant change to the investment environment for wind, solar and energy storage — would boost new capacity entry.
Grid monitor warns of blackout risks across U.S. - Two-thirds of North America could face power shortages this summer during periods of extreme electricity demand and spiking temperatures, the nation’s grid reliability monitor warned Wednesday. The North American Electric Reliability Corp. (NERC) found that the number of regions with an “elevated risk” of power shortages has increased as temperatures rise and power plants retire. In a worst-case combination of severe heat and unexpected generation outages, the western United States, most of Texas, and the Carolinas face a heightened risk of rolling power blackouts, NERC said. “The system is closer to the edge. More needs to be done,” said John Moura, NERC director of reliability assessment and performance analysis, in a news briefing Wednesday. Overall, the “2023 Summer Reliability Assessment” concludes that grid networks should come through the summer safely given normal weather. But a repeat of the 2021 “heat dome”— a midsummer siege of record heat across most of the western U.S.— could create grid emergency conditions from the Pacific Northwest and Sun Belt to Texas. Wildfires and extended periods of poor wind and solar output coupled with extreme heat could also become factors in grid stress, according to NERC, whose industry-staffed committees develop grid reliability standards for approval by the Federal Energy Regulatory Commission. NERC estimated a 1-in-10 chance of extreme conditions this summer based on past history and forecasts of demand. In that sense, “we are not predicting these conditions to occur” with certainty, Moura added. The report comes amid a fierce debate over how the country might meet EPA’s proposed rules last week to reduce carbon dioxide emissions from power plants. The agency stated that its goal was a balance between accelerating reductions of grid carbon emissions and giving operators enough flexibility to manage a stressful clean energy transition while facing increasing threats of extreme weather. “Preserving the ability of power companies and grid operators to maintain system reliability has been a paramount consideration in the development of these proposed actions,” EPA said.
NERC urges power plant, transmission owners to prepare for winter in highest-level alert ever issued - The North American Electric Reliability Corp. on Monday issued its highest alert level ever, urging generators and transmission owners to take measures to prepare for winter.In its first Level 3 Essential Actions alert, NERC cited three “extreme winter weather events between 2018 and 2022. Severely cold winter weather knocked power plants offline in 2018 in the South Central U.S., in 2021 in Winter Storm Uri and last year in Winter Storm Elliott, leading to power shortages and outages, NERC said.“When cold weather events such as Winter Storm Uri occur, system operators may need to shed firm customer load to prevent uncontrolled load shedding and cascading outages which may not only result in major disruption but also have very real human consequences,” the grid watchdog organization said.The alert asks power plant owners to calculate the “extreme cold weather temperature,” or ECWT, for their generating units and include that number — the lowest 0.2 percentile of the hourly temperatures measured in December, January and February since 2000 — in their winter preparedness plans.Generators should identify which units need additional freeze protection measures to operate at the ECWT and put them in place before the winter season if possible. Power plant owners also should identify critical components of their facilities and the steps they took to protect them from winter weather, according to the alert.The alert calls on transmission operators to update their operating plan to include provisions such as minimizing the overlap of circuits that are designated for manual load shed and circuits that serve designated critical loads.The operating plans should also include provisions for manual load shedding that can occur quickly enough to ease an emergency, according to the alert.Balancing authorities, which maintain electric supply and demand in their areas, should update their operating plans to manage generating resources in their area to address various issues, including fuel supply and inventory concerns, and fuel switching capabilities, according to the alert.
New rules tackle legacy coal ash, but loopholes remain - Hundreds of previously unregulated coal ash landfills and ponds would finally be subject to federal rules and cleanup mandates under a proposed update published Thursday by the U.S. Environmental Protection Agency. Environmental groups lauded the proposal, an update to 2015 rules that had omitted so-called “legacy” coal ash dumped in landfills or ponds that were inactive when the rules took effect. They would now be covered by mandates for groundwater monitoring, closure and cleanup.Environmental attorneys and experts have argued that companies could often avoid responsibility even for pollution from regulated coal ash ponds since they could blame groundwater contamination on nearby ponds not covered by the rules. “The EPA would end this practice by requiring site owners to monitor and clean up all coal ash at a given site, rather than trying to regulate each dump at a site individually,” says environmental groups’ press release. “This proposed site-wide approach will lead to more effective safeguards.” However, the proposed rules still exempt dozens of coal ash ponds and landfills, as well as coal ash that was used as construction fill at hundreds of sites nationwide. If a coal ash pond did not contain liquid when the original rules took effect in 2015 or since, or if a coal ash landfill is at the site of a closed coal plant and there are no regulated ponds on the same site, then the new rules won’t apply. “It looks pretty obvious what EPA is doing is a first step and a significant step, but what we don’t know is what are the holes in this universe, how many legacy ponds and unregulated landfills are not covered” by the new rules, said Earthjustice senior counsel Lisa Evans. Earthjustice has identified 566 landfills and ponds at 242 coal plants in 40 states that were unregulated by the 2015 rules. It estimates that close to 100 landfills could still be exempt from the new rules. At a minimum, Earthjustice predicts 39 landfills at 29 sites would be exempt. Groundwater monitoring data has shown contamination resulting from three-quarters of coal ash landfills nationwide. If inactive landfills at closed coal plants are exempt from the new rules, Evans said, regulators are allowing companies to “walk away scot-free from the site.” “Since we know it is much more likely than not that that landfill is contaminating groundwater, there should be safeguards in place,” she said.
Householder, Borges to be sentenced in $60 million bribery scheme — The two former Republican bigwigs convicted of orchestrating a $60 million racketeering scheme will soon know their sanctions.Former Speaker of the Ohio House Larry Householder and former state Republican Party Chairman Matt Borges will be sentenced at the end of June, according to court records. In March, a jury found the men guilty of taking a $60 million bribe from FirstEnergy in exchange for the passage of a nuclear power company bailout.Both maintained their innocence throughout the proceedings, with Householder telling the media he viewed the trial as an opportunity for “redemption.”During the seven-week trial, jurors heard from federal prosecutors how Householder, Borges and FirstEnergy executives conspired to ensure House Bill 6, the nuclear bailout bill, became law. Much of the quid pro quo scheming happened in Washington, D.C. in 2017, prosecutors alleged, showing hotel bookings for Householder and then-FirstEnergy CEO Chuck Jones made minutes apart by the same person.As part of the plan, FirstEnergy donated $60 million to a 501(c)(4) “dark money” group called Generation Now that federal investigators concluded was controlled by Householder himself.FBI agents testified at the trial that photo metadata placed Householder’s son and FirstEnergy executives in a limo together outside a steakhouse. Householder denied having been at that steakhouse, but phone records indicated he repeatedly called and texted FirstEnergy executives about moving the legislation through the statehouse. The prosecution also highlighted texts, calls and emails pointing to Householder accepting bribes. In an October 2018 meeting, Householder received a $400,000 check from First Energy. Householder testified that the meeting lasted 10 minutes and that he looked in the envelope, only after being asked to, but did not take the check out. The prosecution showed a text sent the same day Householder received the check, where he texted Jones: “$400k…thank you.” Prior to Householder and Borges’ trial, two other Ohio political operatives — longtime adviser Jeffrey Longstreth and lobbyist Juan Cespedes — took plea deals in 2020 for their involvement in the case.The duo will be sentenced on June 30, with Borges’ sentencing slated for 11 a.m. and Householder’s scheduled at 1 p.m. Sentencing documents and motions are due a week before sentencing.
How Randazzo spent millions from FirstEnergy -- Big chunks of the $4.3 million paid by FirstEnergy to a company controlled by Sam Randazzo shortly before he became Ohio’s top utility regulator went to pay taxes and a mortgage and to fund a loan for his daughter’s restaurant, a May 15 federal court filing shows. Other recent developments in the ongoing saga surrounding House Bill 6, Ohio’s 2019 nuclear and coal bailout law, include:
- Trial exhibits from the government’s case against former Ohio House Speaker Larry Householder and others show how executives at FirstEnergy and FirstEnergy Solutions maneuvered to transfer funds to dark money groups in ways that would hide the companies’ funding of House Bill 6 efforts as much as possible.
- Judge Timothy Black has scheduled Householder’s sentencing for June 29 at 1 p.m. in Cincinnati. Sentencing for co-defendant Matt Borges is the following day at 11 a.m.
- Recent FirstEnergy filings show it plans to refund more than $10 million to customers in Maryland and New Jersey, but it’s unclear when or if Ohioans will get refunds.
- American Electric Power continues to face litigation and regulatory scrutiny related to HB 6.
A May 15 court filing in HB 6-related shareholder litigation shows Sam Randazzo, the former chair of the Public Utilities Commission of Ohio, used large chunks of the $4.3 million one of his companies received from FirstEnergy shortly before he took public office for personal purposes:
- About $1.5 million went to pay federal taxes in 2019 and 2020.
- More than $1.4 million was used for mortgage payments in 2019.
- $100,000 was used for a loan to a restaurant operated by Randazzo’s daughter.
FirstEnergy admitted in a July 2021 court filing in another case that it paid the $4.3 million to Randazzo’s consulting firm shortly before he took office in return for his “performing official action as PUCO Chairman to further FirstEnergy Corp.’s interests relating to passage of nuclear legislation and other specific FirstEnergy Corp. legislative and regulatory priorities, as requested and as opportunities arose.” Randazzo has denied wrongdoing and is not a party in the shareholder litigation or in any criminal case filed to date. Former FirstEnergy executives Chuck Jones and Michael Dowling, who are defendants in the shareholder case and other cases, have likewise denied liability. Lawyers representing shareholders in the case said documents relating to Randazzo’s use of the funds are relevant because the information in them could lend support to or weaken claims that the payment was unlawful, as opposed to being for a proper business purpose. The plaintiffs want the court to order the production of any more materials relating to the funds or Randazzo’s characterization of the payment. Emails from Randazzo’s lawyer, Roger Sugarman, objected to the plaintiffs’ demand for more documents and said materials showing how the money was used had already been provided. He declined to provide further comment. Trial exhibits in the criminal case against Householder and Borges include a text conversation in October 2019 among former FirstEnergy executive Michael Dowling, the company’s controller and chief accounting officer Jason Lisowski, and Michael Van Buren, who acted as treasurer for Partners for Progress, one of the dark money groups that funneled money from FirstEnergy to Generation Now and other organizations in the HB 6 scandal. Other materials in the packet confirm Lisowski worked with Van Buren to transfer $10 million to Partners for Progress and signed the group’s donor form on behalf of FirstEnergy. The materials also show the group planned to characterize the donation as “educational,” as opposed to political spending for candidates. FirstEnergy’s July 2021 deferred prosecution agreement states that FirstEnergy and FirstEnergy Solutions paid roughly $53 million from April through October of 2019 in connection with HB 6 and defeating a ballot referendum on it, including $13 million that went through Partners for Progress to Generation Now. Funds paid during the period were intended to help Householder and his efforts, the company said in that document.
Ohio Environmentalists, Oil Companies Battle State Over Dumping of Fracking Wastewater - Ten years ago, Tim Kettler asked local officials to stop spreading liquid waste from fracking on the road near his home in Warsaw, Ohio, because he was worried that the fluid would contaminate a pond where he gets his drinking water. They complied with his request, but the practice continues in many other places across the state, and threatens to taint its groundwater with radioactivity and a cocktail of other contaminants in the residue from natural gas drilling. Water from the pond, downhill from the road where the salty waste was once spread, remains clean and drinkable, but that hasn’t stopped Kettler and other activists in Ohio from campaigning against a practice that has been used for years to de-ice roads in the winter and keep dust down in the summer. They say that high levels of two kinds of radium in the waste, known as produced water, as well as its extreme salinity, is already damaging the environment where the brine is spread and will eventually find its way into underground sources where people get their drinking water. Millions of gallons of produced water from fracking in the region have been pumped into more than 200 underground injection wells—either purpose-built or reused oil and gas wells—as oil and gas production has surged in the Appalachian states, raising fears that the natural environment is being contaminated, and that public water sources are being poisoned. “Putting our water at risk, especially in the area where there are known earthquake faults, just seems pretty wrong-headed,” said Kettler, who owns a wastewater business, and is a member of the Ohio Brine Task Force, an advocacy group that works to stop produced water from fracking from being spread on roads. “The constituents of this wastewater are known to be toxic and radioactive. Putting that on the ground, especially where people use surface water for their domestic water supply, as I do—where runoff is inevitable—is a problem.” Ohio’s Department of Natural Resources says about 22 million barrels of produced water from Ohio sources—924 million gallons—were pumped into injection wells in 2022, and another 12 million barrels—504 million gallons—came from out-of-state sources, including Pennsylvania. Produced water contains dozens of highly toxic chemicals along with naturally occuring poisons like arsenic and radioactive material like radium 226 and 228. It is far saltier than ocean water, which makes it deadly to most plants and freshwater life. Pennsylvania has only 12 active injection wells for fracking waste because it does not have “primacy” over the wells, and so must obtain approval from the U.S. Environmental Protection Agency before issuing permits. By contrast, Ohio has primacy, and so has permitted many more injection wells. There are 234 now operating in Ohio plus “a few” applications pending, the Department of Natural Resources said.
Cleveland U Study: Ohio Utica Shale Investment Tops $100 Billion | Marcellus Drilling News -- JobsOhio, a private, nonprofit corporation that works on behalf of the state to drive job creation and new capital investment in Ohio by attracting business, contracts out economic research to Cleveland State University (CSU) to keep tabs on the Utica Shale industry. JobsOhio released the latest CSU updated report yesterday (full copy below), showing that more than $100 billion has been invested in Ohio across natural gas, natural gas liquids, and petrochemical supply chain industries in just over ten years. Massive!
Ohio's Growing Shale Energy Industry Attracted $2.8 Billion in Direct Investment in First Half of 2022, With Cumulative Investment Surpassing $100 Billion- Total investment in Ohio’s resource-rich shale energy sector was approximately $2.8 billion in the first half of 2022, according to a Cleveland State University (CSU) study. Prepared for JobsOhio, the latest report covers shale investment from January through June 2022 and cumulates total investment from 2011 forward. The study from CSU’s Energy Policy Center at the Maxine Goodman Levin College of Urban Affairs revealed that, with previous investments to date, cumulative oil and gas investment in Ohio through June 2022 is estimated to be $100.6 billion. Of this, $70.8 billion has been in upstream, $21.5 billion in midstream, and $8.3 billion in downstream industries. The study showed that cumulative shale investment steadily rose between 2016 and 2022, particularly with upstream investments. Overall upstream investments increased by about $628 million in the first half of 2022 compared to the second half of 2021, reflecting higher royalty earnings due to higher oil and gas prices and new well development. Indirect downstream investment, such as the development of new manufacturing due to lower energy costs, was not investigated as part of this study. “In just over ten years, more than $100 billion has been invested in Ohio across natural gas, natural gas liquids, and petrochemical supply chain industries. Vital to our growing and diverse economy, this important sector continues to provide high-paying jobs to hard-working Ohioans,” said J.P. Nauseef, JobsOhio president and CEO. “Manufacturers worldwide are now realizing that Ohio is one of the most advantageous states for natural gas and natural gas liquids consumption – that feedstock, combined with our infrastructure, access to end-use markets, and the highly-skilled workforce that calls Ohio home.” “The 30% increase in the number of new wells drilled is responsible for most of the new spending in the first half of 2022,” said Andrew Thomas, Director of the Energy Policy Center at Cleveland State University. “This increase indicates that the upstream industry has largely recovered from the supply chain problems that plagued the industry during the time of COVID.” Upstream activities, such as drilling, roads, and royalties, accounted for nearly $2.8 billion of this total investment. As determined from Ohio Department of Natural Resources Division of Oil and Gas (ODNR) data for shale well drilling, operators drilled 113 new wells during the first and second quarters of 2022, nine fewer than the number drilled in the second half of 2019 – the last pre-COVID study period. Data also indicated that the total volume of gas-equivalent shale production in the first half of 2022 was 2.7% less than overall production in the second half of 2021. Unsurprisingly, mid and downstream investments lag behind the upstream recovery. The first half of 2022 saw midstream investment of $37.1 million, around half the spending for this segment compared to the previous six-month period. Most midstream investment during the Study period ($30.8 million) was for gathering system buildout. Future midstream investment will include Ohio’s share of the $161 million Ohio Valley Connector Expansion project to increase takeaway capacity out of the region, which was actively under development as of March 2023. There were no significant downstream investments during the first half of 2022. However, site work has recently begun on the $1.2 billion natural gas-fired Trumbull Energy Center near Lordstown. Also, construction on a second natural gas-fired power plant in Oregon, OH, is planned to commence in the coming year. Natural gas-based hydrogen projects will present additional downstream opportunities in the next few years. In December 2022, JobsOhio released a study from Shale Crescent USA, a nonprofit focused on promoting the manufacturing advantages created by abundant natural resources available in Ohio, Pennsylvania, and West Virginia, dispels the long-held belief that plastic-based goods are cheaper to import than manufacture locally. The study revealed that the low-cost gas and natural gas liquids flowing from the U.S. Shale Gas Revolution has the potential to turn the $53 billion U.S. plastics importing industry on its head.
26 New Shale Well Permits Issued for PA-OH-WV May 8-14 | Marcellus Drilling News - New shale permits issued for May 8-14 in the Marcellus/Utica rose from the prior week. There were 26 new permits issued last week, up from 20 in the prior week (and 18 the week before that). Last week’s tally included 13 new permits for Pennsylvania, 10 new permits for Ohio, and 3 new permits in West Virginia. Last week the top receiver of new permits was CNX Resources, with 7 permits issued (5 of them in Westmoreland County, PA, and 2 in Greene County, PA). Encino Energy, showing up as EAP Ohio in the report, had the second-highest tally with 5 permits (issued in Harrison County, OH). Antero Resources, CNX Resources, Columbiana County, Encino Energy, Energy Companies, EQT Corp, Fayette County, Greene County (PA), Harrison County, Hilcorp Energy,Marshall County, Noble County, Olympus/Huntley & Huntley, Repsol,Southwestern Energy, Tioga County (PA), Tug Hill Operating, Westmoreland County, Wetzel County
O&G Contributed $143B, 847K Jobs in PA, OH, WV Economies in 2021 -- Marcellus Drilling News - Every so often, the lying left will poke its head up and make the wild claim that the shale industry hasn’t done a darned thing for the jobs or economy in various states–like Pennsylvania, Ohio, and West Virginia (see Heinz Endowments Launches Another Fake ‘Report’ Bashing the M-U). They say, “All those claims of jobs created and economic benefits are just smoke and mirrors.” We say the environmental left is full of (expletive deleted). And we can prove it. Earlier this week, the American Petroleum Institute (API) released a massive new report compiled by PricewaterhouseCoopers (PwC) on the growing economic contributions of America’s natural gas and oil industry in all 50 states, including PA, OH, and WV, in 2021. For those three states (PA, OH, WV) in 2021, the O&G industry (largely shale) collectively contributed over$143 billion to state economies and supported more than 847,000 jobs! Stick that in your bong and smoke it, Big Green.
Upgrades to Eastern Gas Metering Station in Plum Done by Summer --Marcellus Drilling News - Eastern Gas Transmission and Storage (EGTS), a subsidiary of Warren Buffett’s Berkshire Hathaway Energy company, provides natural gas transportation and storage services with one of the largest underground natural gas storage systems in the United States. Essentially EGTS is a pipeline network that connects to other pipelines to flow and store natural gas in six states: Maryland, New York, Ohio, Pennsylvania, Virginia, and West Virginia. An upgrade of an EGTS metering station in Plum (Allegheny County, PA, near Pittsburgh) is currently under construction and due to be complete “by summer.”
Mountain Valley Pipeline gets new permit to build in Appalachian national forest - (AP) — A controversial and long-delayed natural gas pipeline got the green light for construction on national forest land in Virginia and West Virginia after the U.S. Forest Service reissued its approval for a permit, despite past federal appeals court rulings determining developers had “inadequately considered” the project's environmental impact. Monday night's decision will allow the $6.6 billion Mountain Valley Pipeline to be built — for now — across a 3.5-mile (5.6-kilometer) corridor through the Jefferson National Forest. The 303-mile pipeline would transport natural gas that is drilled in Ohio and Pennsylvania across rugged slopes in the Appalachian Mountains. Environmental groups say construction has led to violations of regulations meant to control erosion and sedimentation. Mountain Valley Pipeline LLC, the joint venture behind the project, still has other federal permits it will need approved as it works to complete the pipeline by the end of this year. Environmental advocates like Wild Virginia Conservation Director David Sligh said Tuesday that the Biden administration is favoring fossil fuels even as it “claims to advance environmental justice.” “This is the third time those who should guard our public treasures have failed us,” Sligh said. In previous litigation, the 4th U.S. Court of Appeals has twice vacated U.S. Forest Service decisions allowing for the pipeline in the Jefferson National Forest. Sligh also said the pipeline “remains far from completion,” saying 88 miles of the proposed route is still incomplete in Virginia. That is despite assurances the project is almost finished from developers and pipeline-supporting politicians like U.S. Sen. Joe Manchin, a moderate Democrat from West Virginia who chairs the Senate Energy and Natural Resources Committee. Manchin said Tuesday the natural gas line is “a crucial piece of energy infrastructure” that is good for global supply and American energy security. The fact that the U.S. Forest Service has approved construction three times shows “the review has been exceptionally thorough,” he said in a statement. In a separate decision, the 4th U.S. Circuit Court of Appeals revoked a key water permit last month because it said West Virginia's environmental protection agency didn’t adequately address the pipeline’s history of water quality violations. It also ruled that the agency used the wrong standards to support the decision that in-stream activities would meet state water quality regulations. The permit is required under the federal Clean Water Act. The court noted at least 46 water quality violations and assessed civil penalties totaling roughly $569,000. U.S. Forest Service officials said in the agency's decision Monday that the amended plan will permit the project to move forward while “minimizing environmental impacts to soils, water, scenery and other resources.” The plan contains requirements like one that 85% of soils dedicated to growing vegetation be left in place and that revegetation of the area be completed within five years, with the exception of the construction zone and right-of-way. Jill Gottesman, a top regional director for The Wilderness Society, said in a statement this week that the decision means groups like hers opposing the project will have “no choice but to take this battle back to court.” “The Forest Service has bent to the will of the oil and gas industry, and is placing fossil fuel profits above our environment and public safety,” she said.
Mountain Valley Pipeline gains approval to pass through forest, still faces more hurdles - The U.S. Forest Service has approved Mountain Valley Pipeline’s passage through the Jefferson National Forest through West Virginia and into Virginia.The federal agency issued a record of decision on Monday, approving amendments to its Land and Resource Management Plan to do so. The pipeline project still faces additional regulatory and legal hurdles.“The agency’s decision is a notable step forward in completing this critical infrastructure project, and we expect the Bureau of Land Management to soon issue the project’s right-of-way permit to cross the Jefferson National Forest,” stated Natalie Cox, vice president for communications at Equitrans Midstream Corp., the pipeline’s developer.The decision pleased pipeline project supporters like Senator Joe Manchin, D-W.Va., and received criticism from environmental groups.“The Mountain Valley Pipeline is a crucial piece of energy infrastructure that will help balance global supply and demand while strengthening our energy and national security,” stated Manchin, chairman of the Senate Energy Committee.“The Forest Service has now reviewed and signed-off on this project three separate times, which should provide confidence for everyone, including the courts, that the review has been exceptionally thorough. While I’m pleased with the announcement from the Forest Service, the job isn’t done yet, and I will keep pushing the Administration and all involved to finally complete the last 20 miles of this vital pipeline.” The $6.6 billion pipeline project first got authorization from the Federal Energy Regulatory Commission in 2017, but its completion has been delayed by regulatory hurdles and court challenges.The Mountain Valley Pipeline is a proposed 303.5-mile interstate natural gas pipeline that would cross nine West Virginia counties to transport natural gas to East Coast markets. The pipeline’s developers have said they intend to bring the pipeline into service in the second half of 2023.The developers have said the pipeline’s construction is near completion, but it has faced multiple legal challenges to its permits, such as authorization to construct in the Jefferson National Forest.The 4th U.S. Circuit Court of Appeals has twice knocked down earlier Forest Service approvals for the pipeline, in 2018 and then again last year.
Manchin aims to bring energy infrastructure permitting reform bill to Senate floor for vote by August - Sen. Joe Manchin, D-W.Va., aims to bring bipartisan permitting reform legislation to the Senate floor for a vote by July 31, the tentative start of the chamber’s summer recess, he said Thursday. “That's pretty aggressive. We're going to get it done,” Manchin, chairman of the Senate Energy and Natural Resources Committee, said during a hearing on permitting reform. “We can get together much quicker if we’re all in this, and I think we are. We want this done and everybody wants it done.” Any permitting reforms must apply equally to all energy sources, said Wyoming Sen. John Barrasso, the energy committee’s top Republican. Several permitting reform bills have been introduced in the Senate. They include Manchin’s Building American Energy Security Act, which is similar to a bill he introduced last year, and the SPUR Actand RESTART Act offered separately by Barrasso and Sen. Shelley Moore Capito, R-W.Va., ranking member of the Senate Environment and Public Works Committee. Sen. Tom Carper, D-Del., chairman of the environment committee, plans to introduce a permitting bill, possibly this month. Also, the House in March passed permitting reform legislation that was included in a debt limit bill. “We all need to sit down and negotiate in good faith – putting politics aside – to craft the Bipartisan Permitting Reform Bill,” Manchin said, noting he plans to hold sector-specific energy permitting hearings to inform that effort. White House senior clean energy advisor John Podesta on Wednesday said the Biden administration supports Manchin’s bill. However, there are “yawning gaps” between Republican and Democratic permitting reform priorities, ClearView Energy Partners said in a client note Wednesday. “We do not observe many areas of overlap, and even fewer areas of real consensus between the partisan proposals,” the research firm said. “We think that Podesta’s speech clearly indicates that permitting reform is on the table, but agreeing to terms from such vastly different starting points remains a challenge.” Pioneer Public Affairs, a consulting firm, echoed ClearView’s analysis. “There is substantial – if not overwhelming – agreement that some changes to various permitting processes are needed; however, there is no consensus or general agreement on where to focus to make the biggest difference,” Pioneer said in a memo Wednesday.
Granholm defends support for gas pipeline, citing energy security - Energy Secretary Jennifer Granholm on Thursday defended her support for moving forward with the Mountain Valley Pipeline, an Appalachian natural gas project opposed by environmental activists — including several who disrupted POLITICO’s energy summit in D.C.Granholm endorsed the pipeline in a recent letter to the Federal Energy Regulatory Commission — the federal agency that regulates the nation’s sprawling pipelines — arguing the controversial project is needed for U.S. energy security, but is also crucial to transitioning to a zero-emissions power system. One of pipeline’s big champions is Senate Energy Chair Joe Manchin(D-W.Va.), who provided the crucial vote for President Joe Biden’s climate bill last year.“We know that there is a real desire to have energy security in areas where there’s huge demand for power,” Granholm said during the summit. “We also know that we have got to accelerate investment in clean [energy].”The remarks underscore the Biden administration’s balancing act in meeting its goals of ending carbon pollution from fossil fuels while acknowledging the continued role of the oil and gas industry in the economy.The secretary’s remarks were disrupted by a handful of protesters who rushed toward the stage, shouting variations of “no MVP” and “Granholm, you are killing me.”.In response to a later question on the Biden administration’s support for sending natural gas abroad to help U.S. allies cope with market disruptions from Russia’s invasion of Ukraine, Granholm acknowledged the trade-offs.“To the point of the protesters here, these are really hard decisions,” she said. “We are in this transition. We want to be able to ensure that our allies can turn on the lights.”The secretary said the U.S. has an abundance of natural gas and is going to be “a friend” to its allies, while also working with them to accelerate the transition to clean energy sources.
US NatGas Drilling Collapses At Fastest Rate Since 2016 -According to a new report from Baker Hughes Co., the US natural gas sector is rapidly pulling drilling rigs from the field due to oversupply conditions that have led to a collapse in NatGas prices over a nine-month period. Baker Hughes reported Friday that exploration companies reduced rigs by 16 to 141 this week. This is the most significant weekly decline since February 2016. Nabors Industries Ltd., one of the top providers of rigs to shale drillers, warned last month about the fall in rig orders. The rig provider expects a 9% slide in its US rig leases by the end of June. Its bearish forecast comes as prices once commanded more than $10 per million British thermal units in late August 2022 and have since plunged to $2.25. Bloomberg explained a combination of factors led to the NatGas glut:"The glut developed after a key US gas-export facility was shut by a fire and abnormally mild winter weather gutted heating demand."The good news is that low prices have pushed drillers to curtail production growth. Comstock Resources Inc. and Southwestern Energy Co. have already said drilling in Louisiana's Haynesville Shale region would be reduced. "What's going to suffer the most is the number of drilling rigs," said Angie Gildea, who heads KPMG LLP's US energy, natural resources, and chemicals team. She noted companies "will take lower production growth over having to reduce dividends to shareholders." Meanwhile, Citigroup Inc. analysts warn some exploration companies are shutting down existing wells due to the supply glut and low prices. "We expect further reductions across both natural gas rigs and frac fleets in the Haynesville, while throttling and shut-ins are likely to be needed across all basins by the summer," Citigroup's Paul Diamond wrote in a note to clients. Low NatGas prices plus tighter credit conditions will make it even more challenging for drillers to tap credit lines from big banks. This is the necessary step to correct oversupply conditions.
Natural Gas Futures, Cash Prices Rally on Heels of Rig Count Drop --Natural gas futures traders shrugged off continued mild weather forecasts and elevated supply data, seizing instead on a sharp drop in the weekly rig count to push prices higher for a second day. Following a 7.6-cent gain to close out last week’s trading, the June Nymex gas futures contract on Monday advanced 10.9 cents day/day and settled at $2.375/MMBtu. July followed suit, rising 10.4 cents to $2.542. NGI’s Spot Gas National Avg. jumped 38.5 cents to $2.035, rebounding from losses the prior week. Production held strong at 100 Bcf/d on Monday, according to Bloomberg’s estimate, within 2 Bcf/d of 2023 highs. However, the latest Baker Hughes data showed natural gas-directed rigs dropped by 16 to 141. The BKR data, released Friday and covering the week ended May 12, pointed to a potential pullback in production later this year. This galvanized bullish market sentiment because it is a sign that producers are beginning to move rigs away from gas-focused areas in response to low prices this year, The drop in gas-directed rigs marked the most precipitous decline since 2016 and followed comments during the first quarter 2023 earnings season from several producers that a slowdown loomed. Prices heading into this week were more than 70% lower than the peaks of 2022 in large part because of robust supplies and weak demand through what proved a mostly mild winter. New liquefied natural gas facilities are slated to open over the next few years to support expected long-term global demand for U.S. exports. This, by extension, could bolster prices over the long haul. Producers may be willing to stomach lower prices for longer in order to maintain momentum for the future demand jump. Meanwhile, weather-driven demand in the near-term remains elusive, production is steady and supplies in storage are stout. The combination is expected to result in triple-digit storage injections through the remainder of May and into early next month, There is “the potential the streak extends to five or six weeks without hotter trends in early June,” “Clearly, weather patterns are to the bearish side, and it doesn’t help that the background state remains quite bearish with surpluses at plus-332 Bcf, while forecast to increase to plus-375 Bcf by the end of May.”
US natgas jumps 10% to nine-week high on small storage build, Canada wildfires (Reuters) - U.S. natural gas futures jumped about 10% to a nine-week high on Thursday on a smaller-than-expected U.S. storage build and as wildfires kept gas exports from Canada near a 25-month low. Energy analysts also noted prices extended their gains after breaking through a key level of technical resistance. The U.S. Energy Information Administration (EIA) said utilities added just 99 billion cubic feet (bcf) of gas to storage during the week ended May 12. That, however, was still more than usual for this time of year because mild weather kept demand for the fuel low for both heating and cooling. But it was less than the 108-bcf build analysts had forecast in a Reuters poll and compared with an increase of 87 bcf in the same week last year and a five-year (2018-2022) average increase of 91 bcf. Last week's increase boosted stockpiles to 2.240 trillion cubic feet (tcf), or 17.9% above the five-year average of 1.900 tcf for the time of year. Front-month gas futures for June delivery on the New York Mercantile Exchange rose 22.7 cents, or 9.6%, to settle at $2.592 per million British thermal units (mmBtu), their highest close since March 13. That was also the contract's biggest one-day percentage gain since it jumped about 11% in late April. Data provider Refinitiv said average gas output in the U.S. Lower 48 states held at 101.4 billion cubic feet per day (bcfd) so far in May, matching the monthly record high in April. The amount of gas flowing from Canada to the U.S. dropped to a fresh 25-month low of 6.4 bcfd on Wednesday as wildfires in Alberta caused some producers to shut oil and gas output and pipeline flows over the past couple of weeks. During those two weeks, U.S. gas futures gained about 20% as Canada exported an average of just 7.1 bcfd of gas to the U.S. That is down from an average of 8.4 bcfd since the start of the year and 9.0 bcfd in 2022. About 8% of the gas consumed in the U.S. or exported as liquefied natural gas (LNG) or via pipelines comes from Canada. Meteorologists projected the weather in the U.S. Lower 48 states would switch from near-normal levels from May 18-27 to warmer than normal from May 28-June 2. Refinitiv forecast U.S. gas demand, including exports, would slide from 93.0 bcfd this week to 89.6 bcfd next week. Gas flows to the seven big U.S. LNG export plants fell from a record 14.0 bcfd in April to an average of 12.9 bcfd so far in May due to maintenance work at several plants, including Cameron LNG in Louisiana and Cheniere Energy Inc's Sabine Pass in Louisiana.
US natgas holds near 9-week high on low wind power, Canada wildfires (Reuters) - U.S. natural gas futures held near a nine-week high on Friday after a technical bounce in the prior session and as a lack of wind power this week caused generators to burn more gas to produce electricity. Traders also said prices were supported this week by a drop in gas exports from Canada due to wildfires in Alberta and other western provinces. The amount of U.S. power generated by wind this week was on track to drop to just 7% of the total versus a recent high of 17% during the week ended April 21, according to federal energy data. That means power generators had to burn more gas to produce electricity, and there will be less of the fuel available to go into storage. The amount of power generated by gas was on track to hit 43% this week, up from a recent low of just 37% during the windy week ended April 21. Front-month gas futures for June delivery on the New York Mercantile Exchange fell 0.7 cents, or 0.3%, to settle at $2.585 per million British thermal units (mmBtu). On Thursday, the contract jumped about 10% to settle at its highest since March 13. For the week, the contract gained about 14% this week after rising about 6% last week. That was its biggest weekly percentage increase since early March when it soared about 23%. But all gas prices were not up. In the spot market, mild weather and ample hydropower in the U.S. West pressured next-day gas for Friday at the PG&E Citygate in Northern California to $3.62 per mmBtu, its lowest since April 2021. Over the past couple of weeks the average amount of gas flowing from Canada to the U.S. averaged just 7.1 billion cubic feet per day (bcfd) as wildfires in Alberta and other western provinces caused some producers to shut oil and gas output, according to data provider Refinitiv. That is well below the 8.4-bcfd average amount of gas exported from Canada to the U.S. since the start of the year and 2022's average of 9.0 bcfd. On a daily basis, Canadian gas exports were on track to reach 7.3 bcfd on Friday, up from a 25-month low of 6.4 bcfd on Wednesday. In the U.S., meanwhile, Refinitiv said average gas output in the Lower 48 states held at 101.4 bcfd so far in May, matching April's monthly record. Meteorologists projected the weather in the U.S. Lower 48 states would remain mostly near normal through June 3. Refinitiv forecast U.S. gas demand, including exports, would slide from 93.0 bcfd this week to 89.4 bcfd next week before rising to 90.7 bcfd in two weeks. The forecasts for this week and next were similar to Refinitiv's outlook on Thursday.
Global Natural Gas Demand Projected to Decline Through Remainder of Year, IEA Says - Global natural gas demand is expected to remain flat in 2023 with modest growth in the Asia-Pacific region offset by projected declines in Europe and North America, according to the International Energy Agency (IEA). The world’s natural gas consumption declined 1.5% year/year in 2022, driven largely by a sharp increase in prices after Russia invaded Ukraine and upended trade flows. The decline in demand, IEA said in its latest quarterly gas report, continued into the early months of this year due to favorable weather and “timely policy actions” in response to the energy crisis. “The improved outlook for gas markets in 2023 is no guarantee against future volatility and should not be a distraction from measures to mitigate potential risks,” IEA said.
Shale Drillers Are Auctioning Off Rigs at Bargain Basement Prices --The much-touted second shale boom has lately been getting a reality check as equipment demand declines sharply, a worrying sign that drilling in U.S. shale energy regions is leveling off. The Financial Times has reported that next week, Texas auctioneer Kruse Asset Management will auction off two unused, top-of-the-line drilling rigs valued at $40 million and $30 million when built in 2019 at starting bids of just $12.9M and $2.3M, respectively.“There’s no reason for them to be so cheap, but there’s just no demand,” Dan Kruse, chief executive of Kruse Asset Management, has told the Financial Times.According to Baker Hughes data, U.S. oil and natural gas rig count has declined 6% in the year-to-date to 731 last week, reversing a steady climb since the depths of the pandemic. The current tally is a far cry from the nearly 2,000 rigs that were running around mid-2014 at the peak of the shale boom. Last week, rig count for gas-directed rigs dropped by 16, or 10 per cent--the steepest weekly fall since 2016. Expectations foranother shale boom are getting tamped down due to rising costs as well as limited supplies of labor and equipment that continue to hamstring efforts by U.S. shale producers to quickly ramp up production.Still, a number of experts have predicted that U.S. production will continue growing. A week ago, the Energy Information Administration (EIA) forecast U.S. crude production will rise about 5% in 2023, while fuel demand will increase 1%.
Lower 48 Natural Gas Production Growth Seen Slowing in Latest EIA Modeling - Natural gas production growth from seven key Lower 48 regions will slow — but not stall — from May to June, adding 256 MMcf/d sequentially to crest the 97 Bcf/d mark, updating modeling from the Energy Information Administration (EIA) shows. EIA’s latest projections, published in its Drilling Productivity Report Monday, reflect a reduced sequential natural gas production growth rate when compared to previous modeling from the agency. In the month-earlier period, EIA modeled natural gas production growth of 332 MMcf/d from April to May from the seven plays tracked in the report. The month before that, the DPR had modeled growth of 420 MMcf/d from March to April. EIA’s DPR analyzes production trends in the Anadarko, Appalachia and Permian basins, as well as in the...
U.S. Natural Gas Pipeline Exports to Mexico Dip for First Time in Over a Decade Amid Record Prices - U.S. natural gas gas exports to Mexico via pipeline fell on a year/year basis in 2022 for the first time since 2010, according to the U.S. Department of Energy (DOE). DOE compiles a quarterly report on the North American natural gas trade. Gas flows to Mexico dipped to 5.7 Bcf/d in 2022 from 5.9 Bcf/d in 2021. “Exports to Mexico fell in every month relative to 2021, except for January and February,” DOE researchers said. The average price of gas exports to Mexico increased by 15.7% to $6.26/MMBtu. Nonetheless,“U.S. exports to Mexico have grown substantially in the past 20 years, especially in the past five years,” the DOE team said. “Growing demand for power generation and industrial uses in Mexico and an increase in pipeline capacity has been widely cited as the cause"... © 2023
Markey bill would restore ban on US fossil fuel exports - Sen. Ed Markey (D-Mass.) introduced legislation Thursday that will reimpose a ban on U.S. fossil fuel exports, citing environmental hazards and possible impacts on domestic prices. The measure would “help prioritize American consumers, protect our climate and promote environmental justice and put the United States on a path to self-sufficiency through domestic clean energy production,” Markey said Thursday at a press conference on Capitol Hill, flanked by supporters of the bill from communities in the Rio Grande Valley and the Gulf Coast. Markey disputed the idea that the ban would result in higher prices for American consumers, pointing to International Energy Agency data indicating that increased U.S. exports were accompanied by higher domestic prices for natural gas. “So ordinary families have to pay more on their natural gas bill, because the big oil and gas companies want to sell it overseas, but that leaves less here, which drives up the price for natural gas for people who are trying to heat their homes,” he said. Then-President Obama signed a bill in 2015 lifting a four-decade restriction on U.S. oil exports. Since the Russian invasion of Ukraine last February, U.S. exports of liquefied natural gas (LNG) in particular have surged as European nations end their imports of Russian oil. Reps. Adriano Espaillat (D-N.Y.) and Yvette Clarke (D-N.Y.) introduced corresponding legislation in the House. The bill is likely doomed in the GOP-majority House, but it marks the latest collaboration between Markey and climate-focused House Democrats aimed at promoting aggressive climate action.
Report: US Gulf of Mexico Oil Production Leads on GHG Intensity - The US National Ocean Industries Association (NOIA) has released a study on global oil production emissions that finds that the greenhouse gas intensity of US oil production, particularly in the U.S. Gulf of Mexico, is significantly lower than most other regions around the world. Prepared by ICF, the GHG Emission Intensity of Crude Oil and Condensate Production report, calculates that total US oil production has a carbon intensity 23% lower than the international average outside of the US and Canada. Additionally, the US Gulf of Mexico has a carbon intensity 46% lower than the global average outside of the US and Canada, outperforming other nations like Russia, China, Brazil, Iran, Iraq and Nigeria but not Saudi Arabia. Using the largest crude category from the Gulf of Mexico (API Gravity 37.5), instead of similar crudes from outside the US and Canada, could result in a 50% reduction in the average international carbon intensity. The report includes a sensitivity analysis of global methane emissions, indicating that US production, especially in the Gulf of Mexico, performs much better relative to the global average in terms of emissions intensity even when measured using other methane estimation methodologies. NOIA President Erik Milito says, “The US Gulf of Mexico energy production sets the standard for oil and gas production worldwide. The world needs both climate solutions and a growing amount of energy, and we don't have to choose between the two. Thanks to the remarkable efforts of the women and men producing energy in the Gulf of Mexico, we have an incredible source of reliable and responsibly produced energy. “The Gulf of Mexico produces a massive amount of energy with a remarkably small footprint, and its continued success is critical for our energy security, national security, and energy affordability. This study validates the importance of the US Gulf of Mexico as a source of energy with demonstrably lower carbon intensity barrels.”
US Plans To Buy 3 Million Barrels For SPR Days After It Drained 2.9 Million In One Week - With oil stubbornly the only asset class that is pricing in if not a depression then certainly a deep recession - even as every other asset is already pricing in the inevitable Fed easing in response to said recession - and the price of WTI tumbling as low as $63 at the start of May, the credibility behind the Biden administration's promise to restock the recently drained SPR has become the butt of all jokes. As a reminder, last Fall the White House said the aim was to refill the reserve when prices were at or below about $67-$72 per barrel. Since then oil prices had fallen far below without as much as a squeak from Biden's energy guru, Hunter. But that doesn't mean the pathological liars in the presidency will stop lying about refilling the Strategic Petroleum Reserve; in fact just the opposite... and mere days after the DOE again moved the goalposts to a June "refill", moments ago Bloomberg reported that the US is preparing to buy up to a whopping 3 million barrels of crude oil - or one tanker's worth - to begin refilling its depleted Strategic Petroleum Reserve. After selling more than 200 million barrels from the emergency stockpile last year to curb high energy prices and arrest the collapse of Democratic approval ratings, the Energy Department plans to solicit offers to replenish the reserve, which has fallen to the lowest level since 1983, according to Bloomberg. Which would be believable if only it wasn't one of the most recurring lie dispensed by an admin that views the price of gas like a hawk as if only gas prices will decide if the 80 year old Biden will get reelected. Of course, you will forgive us if we call even more bullshit from the admin that has taken lying to an artform, and which just last week drained 2.9 million barrels of oil from the SPR, long after it was supposed to have restarted refilling it. In addition to direct purchases, the agency has said part of its strategy for refilling the reserve includes a return of oil from previous exchanges, and avoiding “unnecessary sales unrelated to supply disruptions.” The department successfully cancelled some 140 million barrels of oil sales mandated by Congress. Last week, Energy Secretary Jennifer Granholm said the government would repurchase crude oil for the reserve after a congressionally mandated drawdown ends in June. She also claimed that the refill the SPR as soon as maintenance work is completed... or generally just kicking the can to doing anything at all. Case in point: an earlier attempt to refill the reserve, via another 'gargantuan' 3 million barrel-purchase, was canceled by the Energy Department in January, saying the offers it received were either too expensive or didn’t meet other specifications. Both explanations are the kind of pure, unadulterated bullshit one has come to expect from the most corrupt administration in US history, and explains why not only Gulf nations but US energy companies are counting the days until the senile occupant of the White House is once again voted out (only this time the fake mail in ballots won't keep him employed).
Methane Mitigation in Texas Could Create Thousands of Jobs in the Oil and Gas Sector - A new report finds that methane regulations proposed by the Environmental Protection Agency could spur job growth in Texas as oil and gas operators measure, monitor and mitigate the harmful greenhouse gas.While Texas officials argue the methane regulations would kill jobs, the report, published today by the Texas Climate Jobs Project and the Ray Marshall Center at the University of Texas, Austin, found that new federal methane regulations could create between 19,000 and 35,000 jobs in the state. Oil and gas producing regions, including the Permian Basin, would need a significant workforce to detect methane leaks, replace components known to leak the gas and plug abandoned wells. Previous research shows the methane mitigation industry is already growing.In the absence of state methane rules, the EPA’s draft methane rule, first issued in November 2021 and strengthened in a supplemental filing last November, along with a new methane fee under the Inflation Reduction Act, will have a major impact on oil and gas operations in the Lone Star state. The EPA’s methane regulations, to be finalized later this year, would reduce methane emissions 87 percent below 2005 levels by 2030. The Inflation Reduction Act’s first-ever methane fee for large emitters will also start in 2024 at $900 per ton of methane and increase to $1,500 per ton by 2026.Reducing methane emissions is one of the most effective short-term measures to slow the pace of climate change because methane traps about 80 times more heat in the atmosphere over a 20-year period than carbon dioxide.But Texas has been a stubborn opponent of federal methane regulations. In January 2021, shortly after Biden ordered the EPA to develop new methane rules, Gov. Greg Abbott issued an executive order directing state agencies to use every legal avenue to oppose federal action challenging the “strength, vitality, and independence of the energy industry.”
Oneok to Add Refined Products, Crude Oil Transportation Services with $18.8B Magellan Deal - Natural gas midstream company Oneok Inc. on Monday announced that it has agreed to purchase Magellan Midstream Partners LP for $18.8 billion, giving the Tulsa-based firm entry into the transportation of crude oil and refined products.TC Energy finishes recovering oil from Kansas creek in Keystone spill (Reuters) – TC Energy Corp finished recovering oil from a rural Kansas creek where its Keystone Pipeline spilled 14,000 barrels of oil in December, the company said on Friday.The pipeline operator expects to remain onsite until the third quarter of this year to finish restoring the Mill Creek shoreline, TC Energy said in a statement.
Keystone pipeline owner says recovery of spilled oil into Kansas creek is complete | Nebraska Examiner — A Canadian pipeline company says it has completed the recovery of oil spilled into a Kansas creek following a record leak on the Keystone Pipeline. TC Energy, in a press release Thursday, said it continues to restore the shoreline of Mill Creek as well as adjacent areas affected when the high-pressure, 36-inch pipeline sprang a leak in December, releasing more than 500,000 gallons of crude oil. It was the largest oil pipeline spill in the U.S. in nine years and the largest leak on the 12-year-old Keystone pipeline. The pipeline leak was just across the Nebraska border near Washington, Kansas. The company said it expects to continue its work at the spill site until the third quarter of the year. TC Energy said it employed “sophisticated recovery and water filtration techniques” to collect the oil. The work was done under the oversight of the U.S. Environmental Protection Agency and Kansas Department of Health and Environment. The company has said that a flaw in a weld combined with “inadvertent bending stresses” on an elbow fitting during installation in 2011, combined with the high pressures employed to transport the oil, eventually led to the pipeline failure. Environmental groups have said the Keystone should be shut down because of its design flaws and that it’s only a matter of time before there’s another leak.
Keystone pipeline oil spill result of design and construction issues, operations lapses: report — Pipeline design issues, lapses by its operators and problems caused during its construction led to a massive oil spill on the Keystone pipeline system in northeastern Kansas, according to a report for U.S. government regulators. An engineering consulting firm said in the report that the bend in the Keystone system where the December 2022 spill occurred had been “overstressed” since its installation in December 2010 — likely because construction activity itself altered the land around the pipe. The U.S. Department of Transportation’s Pipelines and Hazardous Materials Safety Administration posted a redacted copy of the report online May 15, about three weeks after it was completed by RSI Pipeline Solutions, based in the Columbus, Ohio, area. The report raised questions about Canada-based TC Energy Ltd.’s oversight of the manufacturing of its pipeline, saying the report’s authors could find no record of a pre-installation inspection of the welds on the Washington County bend. The report concluded that TC Energy underestimated the risks associated with the bend going from its round shape when installed to a more-restricted oval shape within two years and didn’t replace the bend after excavating it in 2013. The company said in February that a faulty weld in the bend caused a crack that grew over time under stress. The spill dumped nearly 13,000 barrels of crude oil — each one enough to fill a standard household bathtub — into a creek running through a rural pasture in Washington County, Kan., about 240 kilometres northwest of Kansas City. It was the largest onshore spill in nearly nine years. “When you have a pipeline that is spilling and having as many problems as Keystone One, it is clearly a red flag that there are bigger issues going on,” said Jane Kleeb, who founded the Bold Nebraska environmental and landowner rights group that helped fight off TC Energy’s plan to build a second pipeline, the Keystone XL. The U.S. Department of Transportation has documented 22 leaks along the Keystone pipeline since it was built in 2010. The one in Washington County was by far the largest. “At what point, does the federal government … step in and say this has reached a point where we need to shut the full line down to do a full review of the pipeline?” Kleeb said. The 4,345-kilometre Keystone system carries heavy crude oil extracted in western Canada to the Gulf Coast and to central Illinois. Concerns that spills could pollute waterways ultimately scuttled TC Energy’s plans to build the Keystone XL across 1,900 kilometres of Montana, South Dakota and Nebraska.
Keystone Pipeline was under stress for 12 years before Kansas oil spill, new report shows -December’s massive oil spill in rural northern Kansas may have been more than a decade in the making, a newly released third party report shows.The Pipeline and Hazardous Materials Safety Administration (PHMSA), which regulates oil pipelines in the U.S., released a partially redacted version of the 240-page report this week, more than six months after the spill.In it, the engineering consulting group RSI Pipeline Solutions concludes that extreme external pressure from the surrounding environment caused the pipeline segment in question to deform over time, losing its round shape in a process called “ovalization.”This pressure also exacerbated cracks in a faulty weld made in 2010, eventually causing the pipeline to burst.The spill released nearly 13,000 barrels of a thick crude oil called diluted bitumen into the river just outside the city of Washington, Kansas.It was the largest spill in the Keystone pipeline’s history, and larger than all its previous 22 spills combined. The spill killed more than 100 animals, and has taken six months to clean up.On the heels of the report, the EPA announced Wednesday that the oil cleanup process is completed. TC Energy will now begin working to restore Mill Creek, a small nearby river that crews diverted during the cleanup effort, to its original condition.The spill was due to a combination of faulty welding and extreme pressure causing the pipeline to deform, the report states.In December of 2010, pipeline operators TC Energy discovered quality issues with many elbow fittings along the Keystone Pipeline. The exact number of defective pieces is redacted in the report, but it says that the company replaced them all.These new parts were sealed into place with a circular weld all the way around the pipeline called a “gird weld.” But at least one of these welds — at the junction where the pipeline eventually burst — had three weak points that slowly grew over the next 12 years.Additional pressure from outside the pipeline worsened this structural flaw.This wasn’t just normal pressure from the soil above the pipeline. Instead, significant land movement or heavy machinery may have caused the pipe to deform into an oval shape over time, said Richard Kupriewicz, an independent pipeline advisor who has testified before Congress on pipeline safety and hasover 20 years of experience advising on pipeline operation and regulation.“Just because you threw dirt over it, it doesn’t crush the pipe,” he said. “It can tolerate some loading (weight), but it wouldn’t necessarily cause the pipe to lose its roundness.”A slightly deformed shape, external pressure, gaps in welding — none of these factors are unusual in pipelines around the country, he said. Alone, they’re typically not a cause for concern. But the combination can create a “perfect storm” and cause a significant spill.
Wisconsin tribe asks court to shut down Enbridge pipeline due to oil spill risk (AP) — Attorneys for a Wisconsin Native American tribe argued Thursday that a federal judge should order an energy company to shut down an oil pipeline the tribe says is at immediate risk of being exposed by erosion and rupturing on reservation land. The Bad River Band of Lake Superior Chippewa asked U.S. District Judge William Conley last week to issue an emergency ruling forcing Enbridge to shut down the Line 5 pipeline after large chunks of riverbank running alongside it were washed away by the river in northern Wisconsin. The tribe says less than 15 feet (4.6 meters) of land now stands between the Bad River and Line 5 in four locations on the reservation. In some places, more than 20 feet (6 meters) of riverbank has eroded in the past month alone. Experts and environmental advocates have warned in court that an exposed section of pipeline would be weakened and could rupture at any time, causing massive oil spills. Enbridge’s engineers contend there is almost no chance the pipeline will be exposed by erosion, let alone rupture, in the next year. The company said in court filings that the tribe has not cooperated with its repeated requests to line the riverbank with sandbags that would protect against erosion. Enbridge also asked the tribe Monday for a permit to install stabilizing barricades made of trees along the riverbank. Judge Conley signaled frustration with the tribe’s lack of action as Thursday’s hearing began. “The band has not helped itself by refusing to take any steps to prevent a catastrophic failure at the meander,” Conley said. “You haven’t even allowed simple steps that would have prevented some of this erosion.” The Bad River tribe sued Enbridge in 2019 to force the company to remove the roughly 12-mile (19-kilometer) section of Line 5 that crosses tribal lands, saying the 70-year-old pipeline is dangerous and that land agreements allowing Enbridge to operate on the reservation expired in 2013. Conley sided with the tribe last September, saying Enbridge was trespassing on the reservation and must compensate the tribe for illegally using its land. But he would not order Enbridge to remove the pipeline due to concerns about what a shutdown might do to the economy of the Great Lakes region.
Judge signals hesitance to shut down pipeline, pleads with Wisconsin tribe to work with oil company - Wisconsin Watch -A federal judge signaled Thursday he will not force an energy company to shut down an oil pipeline in northern Wisconsin, despite arguments from a Native American tribe that the line is at immediate risk of being exposed by erosion and rupturing on reservation land.The Bad River Band of Lake Superior Chippewa asked U.S. District Judge William Conley last week to issue an emergency ruling forcing Enbridge to shut down the Line 5 pipeline after large chunks of riverbank running alongside it were washed away.But Conley voiced frustration with the tribe at Thursday’s hearing for not allowing Enbridge to reinforce the land around the pipeline. “The band has not helped itself by refusing to take any steps to prevent a catastrophic failure at the meander,” Conley said. “You haven’t even allowed simple steps that would have prevented some of this erosion.”The tribe says less than 15 feet (4.6 meters) of land now stands between the Bad River and Line 5 along a meander on the reservation. In some places, more than 20 feet (6 meters) of riverbank has eroded in the past month alone. Experts and environmental advocates have warned in court that an exposed section of pipeline would be weakened and could rupture at any time, causing massive oil spills.Conley said before testimony began that it might be necessary for him to order a shutdown at some point, but he was not convinced it was the only option left on Thursday.Enbridge has repeatedly asked the tribe for permission to place sandbags along the riverbank to prevent erosion. It also requested a permit Monday to install barricades made of trees to protect the pipeline.Tribal officials have not approved any of the company’s requests.Judge Conley said the tribe’s inaction undermined claims it has made time and again that the pipeline must be shut down.“It looks like a strategy, even if it’s just idiocy,” he said. “I’m begging the band to just act. Do something to show you’re acting in good faith. The Bad River tribe sued Enbridge in 2019 to force the company to remove the roughly 12-mile (19-kilometer) section of Line 5 that crosses tribal lands, saying the 70-year-old pipeline is dangerous and that land agreements allowing Enbridge to operate on the reservation expired in 2013.Conley sided with the tribe last September, saying Enbridge was trespassing on the reservation and must compensate the tribe for illegally using its land. But he would not order Enbridge to remove the pipeline due to concerns about what a shutdown might do to the economy of the Great Lakes region.Instead, Conley told Enbridge and tribal leaders last November to create an emergency shutoff plan for the pipeline. His ruling said there was a significant risk it could burst and cause “catastrophic” damage to the reservation and its water supply. Line 5 transports up to 23 million gallons (about 87 million liters) of oil and liquid natural gas each day and stretches 645 miles (1,038 kilometers) from the city of Superior through northern Wisconsin and Michigan to Sarnia, Ontario. If the pipeline were shut down, gas prices would likely increase, refineries would shut down, workers would be laid off and the upper Midwest could see years of propane shortages, according to reports Enbridge submitted in court. Enbridge has proposed a 41-mile (66-kilometer) reroute of the pipeline to end its dispute with the tribe and said in court filings that the project would take less than six years to complete. But the Department of Natural Resources has not granted the permits Enbridge needs to begin construction. A draft analysis of the project’s environmental impact submitted in December 2021 received thousands of public comments, with many criticizing the report as insufficient. The company is still responding to the DNR’s requests for more information.Line 5 has also faced resistance in Michigan, where Enbridge wants to drill a new tunnel under a strait connecting two of the Great Lakes but Michigan Gov. Gretchen Whitmer and Attorney General Dana Nessel have sought to shut down the pipeline. Nessel filed a brief Wednesday in support of the tribe’s request, saying a rupture in Wisconsin would also cause irreparable environmental damage in Michigan.
Northwest New Mexico could provide needed insight into finding orphaned oil and gas wells - A largely abandoned oil and gas field in northwest New Mexico could help a team of researchers develop ways to identify and characterize orphaned wells.A team from Los Alamos National Laboratory that is involved in the multi-lab initiative visited the Horseshoe Gallup field west of Farmington last week. There are more than two dozen wells identified in that field as eligible for federal funding intended to help plug orphaned wells.Don Schreiber, a San Juan Basin activist who is part of an effort to get the Horseshoe Gallup field cleaned up, guided the team along with Earthworks thermographers.“This well and many others here are still listed as active, but they may have produced 10 barrels in the last 10 years,” he told the LANL crew.Schreiber and others involved in the cleanup effort say that, though the wells are still listed as active, they are actually orphaned and the companies listed as their most recent owner are mainly no longer in existence.An orphaned well is one that has no legal owner. One common reason this occurs is because of bankruptcy, but there are other reasons as well.LANL teamed up with several other national labs, including Sandia National Laboratories, in October to develop a way to identify orphaned wells and characterize them. This will help prioritize where plugging occurs. The consortium began working together on orphaned wells in light of new federal funding available through the Infrastructure Investment and Jobs Act, or the bipartisan infrastructure law, to plug orphaned wells.The U.S. Department of the Interior has identified more than 130,000 orphaned wells in 30 states including in New Mexico. But many more remain unidentified. The U.S. Environmental Protection Agency estimates there could be millions of orphaned and abandoned wells. Finding each one individually could be a challenge, so the team hopes to develop a way to use drones over oil fields to locate unidentified wells.Orphaned and abandoned wells can continue to leak methane and toxic pollutants into the atmosphere.
Oil Company Cancels Colorado Open Space Drilling Proposal --Colorado’s Boulder County won’t be forced to lease oil and gas located miles below open space purchased with taxpayer dollars after an energy company withdrew the project from consideration by state regulators. Following a five-year effort to get the proposal approved, Extraction Oil & Gas canceled its application with the Colorado Oil and Gas Conservation Commission for its 32-well “Blue Paintbrush” development on May 2. Theproposal encompassed a 2,270-acre area in Boulder and Weld counties, about 30 miles north of downtown Denver. The company’s decision came just before it reassured investors in a May 3first-quarter filing that it intended to “vigorously defend” against claims by Boulder County that leases it currently holds for minerals in the project area are invalid. County officials welcomed the news, yet cautioned that the project might not be dead. “There are many details yet to be worked out,” said Senior Assistant County Attorney Kate Burke in a May 4 statement. “Extraction has stopped its effort to forcibly develop the county’s property for now, but it’s not clear what will become of the Blue Paintbrush project,” she added. “We will continue our efforts to protect county property and enforce our lease rights.” Conflicts between Coloradans and energy companies are escalating as hydraulic fracturing, or fracking, allows operators to drill a mile or more down before turning the bit horizontally and traveling several thousand feet across to penetrate rock and release oil and gas. The industrial practice is moving ever closer to fast-growing metro Denver suburbs, where eight of 10 residents don’t own their oil and gas rights — and don’t know who does. Colorado is the nation’s fifth biggest oil producer and eighth largest producer of gas.
North Dakota oil, natural gas production 'mixed bag' - North Dakota oil production fell 3% in March while the state's natural gas output was flat. "Kind of a mixed bag" was how Lynn Helms, North Dakota's minerals director, summed it up in a news conference on Friday. He also criticized new federal environmental rules unveiled this week, which could greatly affect North Dakota's coal and electricity industries. North Dakota, the nation's third largest oil-producing state, pumped out 1.12 million barrels of crude per day in March. That's down from 1.16 million barrels per day in February when the state posted its highest production since November 2021. The number of drill rigs in North Dakota, a harbinger of future oil production, has been falling significantly this year — from 46 in February to 43 in April and 39 currently. A monthly state oil report blamed the decline on seasonal road restrictions. North Dakota had 17,650 active oil wells in March, up a bit from February, meaning that output per well declined from month to month. In addition to being a big oil state, North Dakota is a big producer of coal-fired power with five plants situated next to coal mines. On Thursday, the U.S. Environmental Protection Agency laid out new rules on carbon dioxide emissions. "It is the Clean Power Act on steroids," Helms said, referring to an Obama-era proposal to mitigate carbon dioxide. The new EPA rules call for an end to CO2 emissions from fossil fuel power plants by 2038. "I am sure the state of North Dakota will be very actively resisting these new EPA regulations," Helms said. Most of Minnesota's coal plants will be closed by 2030. The state's natural gas power generators will be around for years thereafter. But Minnesota passed a law earlier this year requiring electricity producers to generate 100% clean power by 2040. "Minnesota's 100% law is very closely aligned with the timing of the EPA rule," said Allen Gleckner, a lead director at advocacy group Fresh Energy in St. Paul.
It Could Cost $21 Billion to Clean Up California’s Oil Sites, Study Finds. The Industry Won’t Make Enough Money to Pay for It.— For well over a century, the oil and gas industry has drilled holes across California in search of black gold and a lucrative payday. But with production falling steadily, the time has come to clean up many of the nearly quarter-million wells scattered from downtown Los Angeles to western Kern County and across the state.The bill for that work, however, will vastly exceed all the industry’s future profits in the state, according to a first-of-its-kind study published Thursday and shared with ProPublica.“This major issue has sneaked up on us,” said Dwayne Purvis, a Texas-based petroleum reservoir engineer who analyzed profits and cleanup costs for the report. “Policymakers haven’t recognized it. Industry hasn’t recognized it, or, if they have, they haven’t talked about it and acted on it.”The analysis, which was commissioned byCarbon Tracker Initiative, a financial think tank that studies how the transition away from fossil fuels impacts markets and the economy, used California regulators’ draft methodology for calculating the costs associated with plugging oil and gas wells and decommissioning them along with related infrastructure. The methodology was developed with feedback from the industry.The report broke down the costs into several categories. Plugging wells, dismantling surface infrastructure and decontaminating polluted drill sites would cost at least $13.2 billion, based on publicly available data. Adding in factors with slightly more uncertainty, like inflation rates and the price of decommissioning miles of pipeline, could bring the total cleanup bill for California’s onshore oil and gas industry to $21.5 billion.Meanwhile, California oil and gas production will earn about $6.3 billion in future profits over the remaining course of operations, Purvis estimated.Compounding the problem, the industry has set aside only about $106 million that state regulators can use for cleanup when a company liquidates or otherwise walks away from its responsibilities, according to state data. That amount equals less than 1% of the estimated cost.Taxpayers will likely have to cover much of the difference to ensure wells are plugged and not left to leak brine, toxic chemicals and climate-warming methane. .“These findings detail why the state must ensure this cost is not passed along to the California taxpayer,” state Sen. Monique Limón, a Santa Barbara Democrat who has written legislation regulating oil, said in a statement. “It is important that the state collect funding to plug and abandon wells in a timely and expeditious manner.”Representatives of the state’s oil regulatory agency, the California Geologic Energy Management Division, did not respond to ProPublica’s request for comment on the report’s findings.Rock Zierman, CEO of the California Independent Petroleum Association, an industry trade group, said in a statement that companies spent more than $400 million last year to plug and clean up thousands of oil and gas wells in the state. “This demonstrates their dedication to fulfilling their obligations and mitigating the environmental impact of their operations,” he said.Fees on current oil and gas production will offset some of the liabilities, but they’re nowhere near enough to address the shortfall quantified by the new report.“It really scares me,” Kyle Ferrar, Western program coordinator with environmental and data transparency group FracTracker Alliance, said of the report’s findings. “It’s a lot for the state, even a state as big as California.”
California Bill Would Hit Oil Companies With $1 Million Penalty for Health Impacts -The first of its kind legislation holds companies liable for illness from urban drilling. Monic Uriarte was thrilled to get approved for an affordable apartment in Los Angeles’ University Park, close to USC. But soon after she and her family moved there in 2004, they started experiencing headaches and other illnesses.Her mother was diagnosed with asthma at age 70. Her daughter had to sleep propped up because she’d get nosebleeds so bad she’d choke. On sweltering days, when they opened the windows, they noticed the air had a nauseatingly sweet taste. Uriarte eventually learned they’d moved into an apartment just 30 feet from an area with dozens of oil wells and a gas processing facility, hidden behind layers of brick and iron and trees.“Our bodies were the oil company’s filters,” Uriarte said.That realization kick-started Uriarte’s career as an environmental activist. Now she’s advocating for a statewide measure, backed by climate and environmental groups, that would impose what is likely the strongest law in the nation to hold oil and gas companies accountable when their operations make people sick. The bill, SB 556, comes on the heels of an industry-funded referendum campaign that halted a law to create buffer zones, or “setbacks,” between oil and gas wells and homes, schools, parks and health clinics. It also emerges in the context of the U.S. Supreme Court ruling on April 24 that allows lawsuits filed by cities and states against fossil fuel companies over climate change to move forward in state courts. Hundreds of such climate cases have been filed worldwide, but SB 556 may be the first policy that would specifically link drilling to paid compensation for acute health impacts. It’s already passed out of an important legislative committee, despite a pro-business law group’s warning that it would be extremely difficult to attribute harm to specific wells.In the last decade, much more research on the harmful effects of oil and gas wells on human health has been published, including their disproportionate impacts on low-income communities, where the dirtiest and most productive wells are often located. Chronic exposure is as harmful as breathing freeway exhaust or secondhand smoke. A recent study that examined the health of residents living within the Las Cienegas Oil Field in South Los Angeles — where Uriarte lived with her family — found that people within 200 meters (656 feet) and downwind from wells reported symptoms including wheezing; eye and nose irritation; sore throats; dizziness; and weaker lungs overall.SB 556 says children or seniors diagnosed with lung ailments, those who endure dangerous pregnancies and residents diagnosed with cancer who live within 3,200 feet of an active well can sue companies and their board members. The payout runs between $250,000 and $1 million, with potential for doubling or tripling penalties as a “deterrent.” About 2.76 million peoplein California live within that zone, according to FracTracker. State prosecuting authorities would also have the ability to sue companies to recoup costs for public health programs.
Wildfires burn millions of acres in Canada, send oil prices higher - Wildfires burning across western Canada have forced thousands of people to evacuate their homes and have prompted some oil and gas companies to curb production as blazes approach pipelines.The fires have burned about 478,000 hectares, or 1,800 square miles, across Alberta, British Columbia and Saskatchewan as of Monday — 10 times the average area burned for this time of year, according to the NASA Earth Observatory.There were nearly 90 fires burning in the province of Alberta, a quarter of which are expected to get larger, according tothe Canadian Wildland Fire Information System. More than 20,000 people have had to evacuate their homes. The fires have had a notable impact on the region's oil industry, as some drillers were forced to halt a small percentage of production in a precautionary measure due to shifting fire conditions. This week, benchmark Canadian heavy crude prices tightened to multi-month highs over concerns about the blazes.Nearly 2.7 million barrels of daily oil sands production in Alberta is in "very high" or "extreme" wildfire danger zones, according to Rystad Energy, an energy consulting firm.As of Monday, outage volumes stood at about 240,000 barrels of oil equivalent per day. However, the ultimate damage to production will likely exceed that number, Thomas Liles, vice president of Rystad Energy's upstream research, wrote in a market update.The smoke also has caused poor air quality and hazy skies in parts of southern Canada, as well as in North Dakota, Minnesota and several other states. The spread of the smoke, which contains particles called aerosols, has prompted concerns over the impact of poor air quality on respiratory and cardiovascular health.The air quality levels in several cities in Alberta this week have been ranked as "very high risk" by Canada's Air Quality Health Index, the highest-ranking category determining health risk. Wildfire smoke is forecast to linger and potentially increase over the coming week.
Global Natural Gas Demand Projected to Decline Through Remainder of Year, IEA Says - Global natural gas demand is expected to remain flat in 2023 with modest growth in the Asia-Pacific region offset by projected declines in Europe and North America, according to the International Energy Agency (IEA). The world’s natural gas consumption declined 1.5% year/year in 2022, driven largely by a sharp increase in prices after Russia invaded Ukraine and upended trade flows. The decline in demand, IEA said in its latest quarterly gas report, continued into the early months of this year due to favorable weather and “timely policy actions” in response to the energy crisis. “The improved outlook for gas markets in 2023 is no guarantee against future volatility and should not be a distraction from measures to mitigate potential risks,” IEA said. “Global gas...
Derbyshire climate campaigners accuse council of leaving door open for fracking -- --The Derbyshire Climate Coalition, formed of green groups across the county, are pressing for changes to the county council’s draft minerals plan which it believes is crucial to whether planning applications to extract minerals and fossil fuels – including by fracking – receive approval or not. A Derbyshire Climate Coalition spokesman stated: “The coalition believes that the policies relating to climate change need to be strengthened further to be in line with national and county carbon targets, and that there should be more emphasis on reducing energy demand and renewable energy rather than extraction of onshore gas and oil.” While the council has amended a previous version of the plan in response to concerns from the community about climate change, according to Derbyshire Climate Coalition, the group believes the latest version still leaves the door open to unnecessary fossil fuel extraction in the county. Derbyshire Climate Coalition’s Laura Stevens said: “National planning policy calls for radical reductions in greenhouse gas emissions. It makes no sense to be extracting fossil fuels from Derbyshire. or anywhere in the UK when the Government continues to ignore opportunities for significant energy savings and has effectively banned onshore wind. We are off-track to meeting our carbon targets, the last thing we need is more damaging fossil fuels.” The draft plan, which is being consulted on until May 2 is being approved by Derbyshire County Council before submitting it to the Secretary of State to be considered by an independent inspector at a public examination later this year. In the meantime, other Derbyshire groups are also making their own submissions including CPRE Derbyshire, Transition Chesterfield and Derbyshire Mineral Plan Community Action Group which represents most of the groups in North East Derbyshire and Bolsover districts with an interest in the natural environment, climate change and hydrocarbon operations.
UK and Norway sign security partnership to counter undersea threats - The UK and Norway have signed a security partnership to counter undersea threats and protect critical energy infrastructure in the wake of last year’s attack on the Nord Stream gas pipeline. The two nations agreed to increase cooperation to improve their ability to detect submarines, counter mine threats and generally enhance North Atlantic security. Defence Secretary Ben Wallace and his Norwegian counterpart Bjorn Arild Gram signed a statement of intent during a visit to the Maritime Operations Centre on the Northwood military base on Thursday. The UK and Norway have already jointly increased security patrols in the region where the unexplained Nord Stream pipeline explosions occurred. The blasts are subject to investigation but are believed to have been intentional. Building on this, the new agreement will bolster the development of capabilities to protect shared interests in the North Sea while streamlining the process for other allies to join their activity, according to the Ministry of Defence. Mr Wallace said: “Cooperating through the JEF (Joint Expeditionary Force) and the Northern Group with our long-standing defence partner and Nato ally Norway, we are heightening our joint capabilities to protect Western critical national infrastructure on the seabed. “The attack on the Nord Stream pipeline has determined even closer collaboration across our collective assets to detect and defend against subsea threats and ensure continued North Atlantic security.” Four leaks were discovered last September on the Nord Stream 1 and 2 gas pipelines that run from Russia to Germany through the Baltic Sea. The pipelines were not operational at the time because of disputes between Russia and the European Union over Moscow’s invasion of Ukraine but were filled with natural gas.
Pastoralists divided on gas industry, as NT government clears fracking in Beetaloo Basin - Tom Stockwell has watched for years as roads and other infrastructure in regional parts of the Northern Territory have gone backwards. Key points: Some pastoralists see the benefits of gas industry through improved infrastructure Others are concerned about risks to groundwater Pastoralists have no right to veto a gas development on their land "The money that's gone into roads and telecommunications, and any sort of public infrastructure, has just been declining," Mr Stockwell said. But the pastoralist, who lives at Sunday Creek Station, 600 kilometres south-east of Darwin, said an emerging gas industry could hold the answer to the region's economic woes. "The whole pastoral enterprise relies on being able to get big, heavy road trains in, with supplements and inputs, and out with cattle that earn export dollars," he said. "Roads are an absolutely critical piece of infrastructure. "[And better roads] could be a significant spin-off from the gas industry being developed."The NT government gave the green light for full-scale gas production in the Beetaloo Basin earlier this month, claiming it had completed all 135 recommendations of the Pepper Inquiry as promised.That claim has since been disputed by the government's own independent overseer for implementing the inquiry's recommendations, which were aimed at mitigating the risks associated with fracking.Lingiari MP Marion Scrymgour this week called for an urgent pause to production approvals, labelling the NT government's claim as "inaccurate".More than 30 pastoral leases are covered by exploration permits from three gas companies across the 28,000-square-kilometre basin.To the north of Sunday Creek, Carina James at Cow Creek Station said the potential risks to groundwater from fracking far outweighed any benefits to the region."There's no permanent water above ground here, so I am 100-per-cent reliant on underground water," she said."I've got thousands of head of cattle and they're reliant on that."She said if given a "choice between a road and my water, I'd take water quality … and quantity every time.""Unless somebody can give me a 100-per-cent assurance that we are not going to have anything affect our water, which is the core pillar and foundation of our business, then I'm always going to choose the water."
Promise of Beetaloo Basin fracking jobs prompts mixed views from NT's Aboriginal people - The gas industry's promise of fracking-related jobs in the Beetaloo Basin has divided Aboriginal people in the Northern Territory, leaving some feeling hopeful and others suspicious. Jeremy Jackson works at Indigenous labour hire company Triple P Contracting, in the small NT town of Elliott. The company previously worked for Origin Energy removing waste, conducting weed surveys and checking well sites. Now, the labourers work for the Beetaloo Basin's largest stakeholder, Tamboran Resources. "It was the only way we could go, to get a bit of benefit out of it, to get some work and maybe some community benefit in the long term," Mr Jackson said. "We need to be smarter and wiser, to actually meet with these companies to actually negotiate with them and get a better deal for us Indigenous people." Elliott is home to about 287 people, according to the last census.(ABC News: Hamish Harty) In the town of Elliott, which lies roughly halfway between Alice Springs and Darwin, jobs and training opportunities are scarce. That is why some residents were cheering on the proposed Sun Cable solar farm at the nearby Newcastle Waters cattle station. "A lot of people are keen on going out and working," Mr Jackson said. "It's just a matter of ... getting these companies to actually employ our local people." In a statement, a Tamboran Resources spokesman said development of the Beetaloo Basin would provide "significant employment, training and business development opportunities for local Indigenous people". "Tamboran currently employ local Indigenous staff and utilise local Indigenous contracting services for exploration activity," the spokesman said. "Our aim is to see this increase as the project moves from the exploration to production phase."
Russia oil exports hit post-invasion high --Russia’s oil exports last month rose to the highest level since its invasion of Ukraine, boosting revenues US$1.7 billion despite Western sanctions, the International Energy Agency (IEA) said yesterday. The Paris-based organization said that Russian exports increased by 50,000 barrels per day to 8.3 million barrels per day last month, estimating that the country did not fully deliver on a threat to cut production sharply. “Indeed, Russia may be boosting volumes to make up for lost revenue,” the IEA said in its monthly oil market report. The country’s oil export revenues rose US$1.7 billion to US$15 billion last month. However, that figure was 27 percent lower than the same month last year. Russia’s tax receipts from its oil and gas sector were down by 64 percent year-on-year, the agency added. G7 nations and Australia have set price caps on Russian petroleum products and crude in coordination with the EU in an effort to cut a key source of funding for its war on Ukraine. The EU has also imposed embargoes on the country’s key oil exports. In response, Russia has threatened to cut off countries and companies that comply with the price cap. It has also announced a production cut of 500,000 barrels per day while its allies in the OPEC+ group of oil producers, including Saudi Arabia, also agreed to slash output. The IEA said that Russia’s crude output held “broadly steady” at 9.6 million barrels per day last month and that the country must cut a further 300,000 barrels per day this month to bring itself into line. “Russia seems to have few problems finding willing buyers for its crude and oil products, frequently at the expense of fellow OPEC+ members in the two-tier market that has emerged since the embargoes came into force,” the IEA said. The agency said that China and India accounted for nearly 80 percent of Russian crude export destinations. China’s emergence from nearly three years of COVID-19 restrictions is also expected to lift world oil demand this year as the IEA raised its forecast by 2.2 million barrels per day to an average of 102 million barrels per day. This is 200,000 barrels per day above the previous forecast. “China’s demand recovery continues to surpass expectations, with the country setting an all-time record in March” at 16 million barrels per day.
Russia reached oil output cuts volume of 500000 bpd since May /TASS/ Russia has reached the volume of reducing oil output by 500,000 barrels per day (bpd) since May, Russia’s Deputy Prime Minister Alexander Novak told reporters. "As for the current situation, Russia is cutting [output] by 500,000 barrels per day. We have reached [the announced reduction volume] in May," he said. From March 1, 2023, Russia started reducing oil output by 500,000 barrels per day from March. According to Russian Deputy Prime Minister Alexander Novak, Russia has made the choice voluntarily, without consulting with the OPEC+ countries. Novak's representative explained that the reduction would affect only oil output, excluding gas condensate. The production quota will be distributed evenly among oil companies depending on their level of production. At the end of April, Novak said that Russia had already reached the volume of voluntary production cuts. At the same time, he did not give an exact figure for the level of production after the cuts. At the same time, the International Energy Agency (IEA) claimed in its May report that Russia had not reached the declared volume of production cuts.
Russia’s Putin says oil output cuts needed to maintain prices --Russian President Vladimir Putin said on Wednesday that oil production cuts were required to maintain a certain price level, contradicting assurances from other leaders of the OPEC+ group of producers that it was not seeking to manage the market in that way. The US and Europe have accused Russia of weaponizing energy to contain the West in its drive to weaken Moscow’s military campaign in Ukraine. Moscow, in its turn, accuses the West of weaponizing the dollar and financial systems such as the international payments mechanism SWIFT in retaliation for Russia sending troops into Ukraine in February 2022. Speaking at a televised government meeting, Putin said that the situation on the global oil market was, on the whole, “absolutely stable” as Russia maintains output cuts to support prices. He also said that Russia had been cutting production, which was at the “required level”. Putin added: “But all our actions, including those related to voluntary production cuts, are connected precisely with the need to maintain a certain price environment on world markets, in dialog and contact with our partners in OPEC+.” Saudi Arabia, the kingpin of the Organization of the Petroleum Exporting Countries (OPEC), and other OPEC members have repeatedly said that they are not targeting a specific price for oil, which large fuel consumers such as the United States have accused the group of unlawfully trying to do. At the same time, some OPEC observers said that the organization needed higher oil prices due to rising inflation. Russia said on April 2 it would extend an oil production cut of 500,000 barrels per day (bpd) - about five percent of its crude output - until the end of the year, compared with February levels. Leading OPEC members announced cuts on the same day. “We are reducing production, but nevertheless it is at the required level,” Putin said. Russian Deputy Prime Minister Alexander Novak, during a visit to Iran, said later on Wednesday that Russia has reached its oil output cuts of 500,000 bpd this month. Last week, oil pricing benchmarks fell for a fourth consecutive week, the longest streak of weekly declines since September 2022, over fears of a US recession and risks of a historic default on government debt in early June.
India's Russian oil buying hits record high, slashes Mideast, Africa share -- India's oil imports from Russia rose to a fresh record high in April, further reducing the share of Middle Eastern and African grades to their lowest level in at least 22 years, data obtained from trade sources showed. Refiners in India, the world's third-biggest oil importer and consumer, are on a Russian oil-buying binge after some countries shunned purchases from Moscow over its invasion of Ukraine in February last year. Asia's third-largest economy imported about 1.9 million barrels per day (bpd) of Russian oil in April, about 4.4 per cent higher than the previous month, the data showed. That accounts for about two-fifths of the nation's overall purchases. Higher imports from Russian raised the share of oil from the CIS countries - Azerbaijan, Kazakhstan and Russia - to 43.6 per cent of an overall 4.81 million bpd imported by India last month. That narrowed the share of the Middle Eastern grades, which traditionally have accounted for the bulk of total oil imports, to about 44 per cent and African oil to 3.4 per cent last month, the data showed. Russia remained the top oil supplier to India for the sixth-straight month in April, followed by Iraq and Saudi Arabia. "Indian refiners have cut their spot purchases of Middle Eastern and West African grades as we are getting supply of Russian oil at lower prices," said an Indian refining official at an Indian refinery.
Oil spill by Shell in Nigeria polluted water and killed wildlife --A 16,000 litre oil spill by Shell last summer in Nigeria allegedly polluted drinking water, contaminated farmland and killed hundreds of birds, The Ferret can reveal. Our international investigation also found that a community affected by the leak – which, it is claimed, came from a corroded pipeline owned by the oil giant – has not received any compensation for environmental damage that occurred in August 2022. Local people from Bodo, in the Gokana area in the Niger Delta, have spoken to The Ferret about the impact of oil spills in the region. The Shell Petroleum Development Company of Nigeria (SPDC) confirmed there were three oil spills in Bodo last August. The company also said it works quickly to clean up spills and that compensation is paid to individuals and communities who are impacted. The Ferret’s investigation follows Shell reporting it expected to make a profit of £7.6bn for the first three months of 2023. Last August, Shell reported that five barrels of oil were spilled in Bodo but an analysis by The Ferret found the oil firm spilled over 103 barrels that month. There were three incidents involving Shell in Bodo in August 2022: the first spill occurred on August 2, the second on August 3, and a third spill on 25 August which locals said impacted farmland and rivers, and affected livestock. The third spill led to 16,000 litres of crude oil polluting 3900 square metres in Bodo, according to data gathered from the Nigerian Oil Spill Monitor. The Ferret collected samples of water from Bodo: one from a community drinking well water, and another from the Bodo river.They were collected to ascertain the level of total hydrocarbons in the water. Hydrocarbons are found in crude oil and a total hydrocarbon test is used to detect the level of crude oil pollution in water. The drinking well water had 316.5mg/litre and the level of total hydrocarbons in the Bodo River was 304mg/litreThe United States Environmental Protection Agency (US EPA) says a total hydrocarbon limit of at 0.5 mg/litre is “quite high”. Drinking water containing petroleum hydrocarbons can cause stomach cramps, nausea, vomiting, and diarrhoea. When The Ferret visited the area four months after the spill, Livinus’s compound still smelled of crude oil. “My pineapple tree and other aquatic life are all gone. I had about 300 fowls but it killed them,” he claimed.
Cleanup of oil-polluted Nigerian state would cost $12 bn: report– Cleaning up decades-long oil pollution and restoring environmental health in just one of Nigeria's crude-producing states will cost at least $12 billion, investigators said on Tuesday. Bayelsa state, home to some two million people, "is in the grip of a human and environmental catastrophe of devastating proportions," they warned in a much-awaited report. Lying in the Niger Delta region, Bayelsa is where oil was first discovered in Africa in the 1950s, and where companies Shell and Eni have operated for decades. "Once home to one of the largest mangrove forests on the planet, rich in ecological diversity and value, the region is now one of the most polluted places on Earth," the report said. "At least $12 billion" is needed to "clean up the soil and drinking water, reduce the health risk to people and restore mangrove forests essential to stopping floods." The four-year investigation was carried out by the Bayelsa State Oil and Environmental Commission -- an international panel of experts and prominent figures who worked at the request of the local government. It called on Shell and Eni, whose local subsidiaries still operate in the region, to pay a share of the bill. "We are asking Shell's new CEO Wael Sawan, before selling off Shell's remaining onshore oil assets, to commit immediately to paying their share of the $12 billion bill," said the commission's chairman, John Sentamu, a member of Britain's House of Lords and former Archbishop of York. In a written statement to AFP, Shell said it had not seen the report and could therefore not respond to its conclusions at this time. Eni also said that it had not been consulted about the report and rejected allegations of "environmental racism" made by the commission. In response to AFP's request for comment, Eni said it "conducts its activities according to the sector's international environmental best practices, without any distinction on a country basis." Both companies have blamed most oil spills on sabotage and theft. "Regardless of the cause of a spill, we clean up and remediate areas affected by spills originating from our facilities," a Shell spokesperson said. Eni also said the company "undertakes to remedy in all cases" when spills occur. Litany of problems The report is based on over 2,500 pieces of evidence including 500 interviews and analysis of 1,600 blood samples from local people. Over the years, "as much as one and a half barrels of oil has been spilled in Bayelsa for every man, woman and child living in the state today."
Bayelsa requires $12bn to clean-up crude oil spill in 12 years — Gov Diri Separato -The Government of Bayelsa State has said it requires $12bn to clean-up millions of barrels of crude oil that have been spilled into the environment as result of crude oil exploration activities across the state. The Governor of Bayelsa State, Senator Douye Diri, stated this on Tuesday during the presentation of 211-page report titled: “An Environmental Genocide: Counting the Human Cost of Oil in Bayelsa, Nigeria”, a detailed documentation of the over 60 years of oil exploration and pollution by the state’s Oil and Environmental Commission (BSOEC) at the House of Lords in London. Speaking further, Senator Diri said that the BSOEC in its report recommended that $12billion is needed for over 12 years to “repair, remediate and restore the environmental and public health damage caused by oil and gas exploration activities and that his administration is willing to act on the recommendations and seek partners to ensure that the report was implemented. He commended the commissioners, researchers, non-governmental organisations and the Commission’s secretariat that painstakingly put the report together as well as the people of Bayelsa for “coming forward to make their voices heard.” “I, on behalf of the government and people of Bayelsa State, pledge our commitment to act decisively and speedily on the recommendations of this report. In doing this, we remain open to robust and genuine engagements with all stakeholders.”
Nigeria needs $12 billion to clean up oil spills -- The Oruma community in Nigeria's oil-rich Niger Delta region is still suffering from a spill in 2005 when oil leaked from a Shell pipeline onto farmland.The crude oil leak caused extensive damage to local ecosystems, turning the lush forest — once the main source of income for farmers and fishers — into a contaminated landscape.One of the fishponds, which used to teem with fish, has been neglected for many years because it no longer produces anything for the farmers. Moreover, a close look at the surface reveals that water still smells of crude oil."Even though we plant, the oil inside will surely kill the crops that we plant," Chief Ernest Oginaba, a local farmer, told DW. "So we feel very bad. All these places are condemned, nobody can use it again." Nigeria is Africa's biggest oil producer and churns out nearly 1 million barrels of crude every day.
Exclusive: South Africa circles back to shale gas as power crisis drags | Reuters -- South Africa will auction at least 10 new onshore blocks for shale gas exploration in the environmentally sensitive Karoo region, a government official told Reuters, as the country eyes alternative energy sources to ease its worst-ever power crisis. South Africa’s first competitive auction for oil and gas resources, expected in 2024 or 2025 once legislation making provision for the bid round is passed, includes acreage once held by Shell.“We are potentially looking at a minimum of about 10 shale gas blocks in the Karoo that will be released through competitive bidding,” Bongani Sayidini, chief operating officer at the Petroleum Agency of South Africa (PASA) said.PASA estimates the Karoo Basin holds around 209 trillion cubic feet (tcf) of technically recoverable shale gas resources, although a 2017 study by geologists at University of Johannesburg said this was probably 13 tcf, the lower end of estimates ranging between 13 tcf to 390 tcf.Even 5 tcf would be enough for a 1 000 megawatt (MW) to 2 000 MW gas-fired power plant to supply electricity for up to 30 years, the Academy of Sciences of South Africa said in its Karoo shale gas action plan released last year.It isn’t clear how the cost would compare to existing coal fire power stations or the ever-cheaper wind and solar energies that are gradually replacing them.Fracking in the Karoo Basin, a vast area covering more than half of South Africa’s land surface, has been shelved for a decade because of resistance from environmental activists and farmers, and regulatory uncertainty.Shell’s 90 000 square kms is available after the oil major early last year withdrew an application to explore, Sayidini said.Confirming the withdrawal, a Shell spokesperson said they are focusing upstream investment on fewer basins that align with global strategy and where Shell has competitive advantages.New shale blocks offered will be smaller to increase participation, Sayidini said. It could take a decade or longer for the first gas output, if sufficient resources are found.
Iraqi production drops sharply as pipeline outage shuts KRG fields - Iraq’s nationwide crude oil production slumped by 320,000 barrels per day (bpd) in April compared with the previous month, pushed down by a dramatic fall in output from the semi-autonomous Kurdistan Regional Government (KRG), where fields were shut down due to the continued closure of the northern export pipeline through Turkey.Iraq Oil Report calculates national production by gathering data monthly from the country’s producing fields. Federal and KRG production in April combined for an average of 4.30 million bpd,down from 4.63 million bpd in March.*Almost all of the decline came from fields in Iraqi Kurdistan, which have either shut down entirely or throttled back in response to the pipeline outage. KRG production had been averaging over 430,000 bpd over the past year, but it fell below 415,000 bpd in March and down to about 117,000 bpd in April, with output going to domestic refineries.
Iran to launch $15 billion oil and gas projects this year - Iran will launch about $15 billion worth of oil and gas projects in 2023, according to the country’s oil minister Jawad Owji. All of the launched projects have had a direct impact on increasing the production capacity of the country, he added. In the last Iranian year (March 2022-23), $12 billion worth of oil, gas and petrochemical projects were launched. Currently, Iran’s daily crude oil production is 3 million barrels and natural gas output is 1 billion cubic meters, while the annual production capacity of petrochemical products is about 95 million tons, the Oil Ministry’s news service Shana reported. Meanwhile, Russia and Iran have made progress regarding the participation of Russian companies in new oil and gas projects in Iran, Russian Deputy Prime Minister Alexander Novak said during talks with Owji in Tehran this week. “We are implementing projects to develop oil fields in Iran and have outlined new projects, where I expect progress soon,” Novak said.
Opec sec gen invites Ecuador to rejoin producer group - Opec secretary general Haitham al-Ghais has invited Ecuador to rejoin the producer group, three and a half years after it left. In a letter to Ecuadorean energy minister Fernando Santos, dated 12 May and made public by the ministry today, al-Ghais said Opec saw Ecuador's return "as a top priority" that would "greatly benefit" the South American nation. "Ecuador is an important oil producer and exporter, and the secretariat believes that your esteemed country would greatly benefit from the information and knowledge that Opec shares with its member countries, as well as the possibility of strengthening diplomatic ties with like-minded oil producing countries," the letter said. Al-Ghais said he was prepared to visit Ecuador "to personally explain the multiple advantages of joining Opec" to Santos and President Guillermo Lasso. The country joined Opec in 1973, and suspended its membership in 1992. It reactivated that in 2007, only to leave again at the end of 2019 as part of a government belt-tightening programme. "The decision is based on the internal affairs and challenges that the country has to assume, related to fiscal sustainability," the ministry said at the time, adding that it aligned with the government's plan to cut spending and generate new revenues. At that time, Ecuador's crude production was around 550,000 b/d, making it the Opec group's fourth smallest producer behind Congo (Brazzaville), Equatorial Guinea and Gabon. Its output has been edging down ever since, with latest figures from the Ecuadorean central bank putting production at 461,000 b/d in the first quarter of this year. The energy ministry in March revised down its production target for the year, by 6pc to 490,000 b/d from 521,000 b/d, because of indigenous communities' strikes, power outages and the shutdown of main pipelines at the start of the year.
OPEC Cut Failed To Lift Oil Prices, But The Year Isn’t Over Yet Crude oil prices have been on a losing streak for four consecutive weeks now, erasing all the gains they booked after OPEC’s latest supply cut announcement as economic fears take precedence over demand expectations.When the cartel announced the cuts, almost every bank with a commodities department rushed to update their price forecasts, expecting prices to jump even higher than before. Morgan Stanley was a rare exception: it revised its price forecast for oil downwards. “OPEC probably needs to do this to stand still,” Martijn Rats, chief commodity strategist at the investment bank, said at the time, adding that the OPECc+ decision “reveals something, it gives a signal of where we are in the oil market. And look, let’s be honest about this, when demand is roaring…then OPEC doesn’t need to cut.”He seems to have been right, for the most part. Only it’s not demand itself that was the problem. It has been the popular expectation of worsening demand that has been driving the price decline.Indeed, the daily media updates on oil prices have, in the past four weeks, repeated the same refrain over and over again: weak U.S. and Chinese economic data, fears of more interest rate hikes in the U.S., fears of a recession, which is already a fact in certain industries, notably freight transport. Clearly, these expectations have had a sound basis. The thing about oil demand, however, is that the U.S., or the rest of the developed world, is not where additional oil demand will be coming from in the rest of the year and future years. It’s the developing world that will see growth in oil demand with the potential to drive prices higher.Dutch ING said in a recent oil market update that while oil prices remain depressed for now, things could very well change in the second part of the year, with a deficit looming on the horizon. The basis for this forecast is a combination of lower OPEC+ output, higher demand outside the OECD, and a smaller-than-expected growth in U.S. output, according to ING. What’s more, there is always the possibility that OPEC+ will cut output again, adding to oil’s upside potential.The Dutch financial services major is not the only one expecting higher prices later this year. Citi’s commodities head Ed Morse recently told CNBC that oil prices may have bottomed out, and we’re entering peak demand season in the much more populated northern hemisphere.Goldman is another bank that’s optimistic about the immediate future of oil prices. In a note from early March—weeks before the surprise OPEC+ cut announcement, the bank said Brent could reach $100 by the end of the year if OPEC keeps its 2-million-barrel output cut agreement in place.
Funds bearish on oil even after price slide: Kemp (Reuters) - Portfolio investors are very bearish about the outlook for oil in the short term even though prices are already below their long-term average in real terms. Hedge funds and other money managers sold the equivalent of 17 million barrels in the six most important futures and options contracts over the seven days ending on May 9. Funds had sold a total of 249 million barrels in the three weeks since April 18, halving their previous holding, according to records published by ICE Futures and the U.S. Commodity Futures Trading Commission. The combined position was cut to just 285 million barrels (6th percentile for all weeks since 2013) down from 534 million barrels (38th percentile) on April 18. The ratio of bullish long to bearish short positions was cut to 2.03:1 (12th percentile) from 5.00:1 (64th percentile) over the same period. The most recent week saw sales of Brent (-25 million barrels) and U.S. gasoline (-9 million) partly offset by purchases of NYMEX and ICE WTI (+11 million), European gas oil (+3 million) and U.S. diesel (+2 million). Bullishness sparked by unexpected output cuts announced by Saudi Arabia and its OPEC allies at the start of April has given way to pessimism about oil consumption stemming from a deteriorating economic outlook. Portfolio investors are more bearish towards petroleum, especially Brent, than before OPEC surprised the market on April 2. U.S. crude prices have fallen to $70 per barrel (43rd percentile for all days since 2000) from more than $83 (56th percentile) on April 12 and a high of $131 (90th percentile) in March 2022, after adjusting for inflation. Investors remained cautious about the outlook for U.S. gas with ultra-low prices failing to erode the surplus inventories accumulated last winter. Funds sold the equivalent of 37 billion cubic feet over the seven days to May 9, taking total sales over the most recent three weeks to 206 billion cubic feet. The combined position slipped to 120 billion cubic feet net short (28th percentile for all weeks since 2010) down from 87 billion cubic feet net long (35th percentile) on April 18. U.S. gas inventories were still +257 billion cubic feet (+14% or +0.58 standard deviations) above the prior ten-year seasonal average on May 5. The surplus was basically unchanged from +256 billion cubic feet (+15% or +0.60 standard deviations) eight weeks earlier on March 5. Inflation-adjusted prices have remained in the 5th percentile since 1990, or below, since early March, creating the strongest possible incentive to reduce drilling rates and increase consumption. The signal may be starting to work, with the number of rigs drilling for gas down by 16 over the seven days ending on May 12, the fastest weekly decline since 2016.
IEA: Oil Bears Are Disregarding An Imminent Supply Shortage The decline in oil prices over the past few weeks contrasts with an expected tightening of the market later this year when demand exceeds supply by nearly 2 million barrels per day (bpd), the International Energy Agency (IEA) said on Tuesday.Since the middle of April, oil prices have lost all the gains from OPEC+’s latest announcement of new production cuts.Early on Tuesday, WTI Crude traded at around $71 per barrel, down from more than $80 a barrel in the days following OPEC+’s surprise news of more than 1 million bpd cuts between May and December 2023.In the latter part of April and early May, the price of Brent oil slumped by $16 a barrel in just two weeks, as concerns about the economy and future demand weighed on market sentiment, the IEA said in its closely-watched Oil Market Report today. Oil prices registered last week their fourth week of weekly losses as concerns about the Chinese and U.S. economies continued to negatively impact market sentiment. This was the longest weekly losing streak for oil since November 2021. “Prices were pressured lower by muted industrial activity and higher interest rates, which, combined have led to recessionary scenarios gaining traction and worries of a downward shift in oil demand growth,” the IEA said in its report, commenting on the oil prices.“The current market pessimism, however, stands in stark contrast to the tighter market balances we anticipate in the second half of the year, when demand is expected to eclipse supply by almost 2 mb/d,” the international agency added.Global oil supply has been lower in recent weeks due to outages in Iraq, Nigeria, and Brazil, and supply losses are set to increase in May with wildfires shutting in part of Canada’s production and OPEC+ producers starting to implement the latest cuts, the IEA noted.
Oil Edges Higher After Iran Seizes Oil Tanker -- Oil futures edged higher early Monday after Iran said it had seized another oil tanker in the Persian Gulf, leading to heightened tensions in a strategically important region for the global oil trade, while investors looked for more clarity on the potential restart of Kurdish oil exports through the Turkish port of Ceyhan amid a highly contested presidential elections. Two oil tankers, the Advantage Sweet, flagged to the Marshall Islands, and the Niovi, flagged to Panama, were seized in less than one month by the Iranian Revolutionary Guard. While the seizure of two ships may not seem like a crisis just yet, traders expect it could lead to a risky situation where the U.S. Navy will have to protect commercial shipping in the Gulf from Iranian aggression. This seizure appears to be the Iranian response to the recent apprehension of Iranian crude in the vessel Suez Rajan off the coast of Singapore for sanctions violations. Tehran will likely attempt to negotiate the release of Advantage Sweet in a trade for the oil in Suez Rajan. Also, this week, investors are monitoring the results in Turkey's presidential elections, where neither of the candidates appears to have received more than 50% of the vote. Turkey has stopped exports of Kurdish oil through its Mediterranean port of Ceyhan on March 28 in a bitter standoff with the Iraqi government that has contested the legitimacy of those sales. With a contested presidential election, it is unlikely the issue will be resolved anytime soon, shutting down nearly 250,000 barrels in daily oil exports from the Kurdistan region. The oil exports from Kurdistan to Turkey were expected to begin in April following a trilateral deal, but Turkey has not given the green light allowing exports. The halt of oil flows is threatening the Kurdistan Region's oil sector due to the lack of storage capacity in the region. Norwegian oil company DNO, one of the operators in the region, said on Thursday it will reduce operations in Kurdistan amid uncertainty of the dispute with Turkey. The stoppage of Kurdish oil flows has depressed production volumes from the Organization of the Petroleum Exporting Countries last month, according to OPEC's Monthly Oil Market Report. OPEC showed its collective oil production fell by 191,000 barrels per day (bpd) in April to 28.6 million bpd just as some of the group's largest producers have started production cuts aimed for May. The drop off in production pressed Iraqi crude production 292,000 bpd below its voluntary quota established in October 2022, and 81,000 bpd less than its quota that took effect this month. Near 7:45 a.m. EDT, West Texas Intermediate climbed to $70.45 barrel (bbl), up $0.42 bbl in overnight trade, while international crude benchmark Brent for July delivery advanced to $74.60 bbl. NYMEX RBOB June futures edged higher by $0.0069 to $2.4371 gallon, while ULSD June futures gained $0.0155 to $2.3210 gallon.
The Oil Market Rallied Higher on Monday on Concerns About Lower Supplies in Canada and Elsewhere -- The oil market rallied higher on Monday on concerns about lower supplies in Canada and elsewhere. The market continued to trend lower and posted a low of $69.41 in overnight trading before it bounced off its low and retraced its earlier losses. The market was well supported by news of the wildfires in Alberta, Canada shutting in large amounts of crude supply. At least 300,000 bpd of oil equivalent production was shut in last week in Alberta. Also, supporting the market was the expectations that the U.S. could begin repurchasing oil for the SPR after completing a congressionally mandated sale in June following a statement made by U.S. Energy Secretary, Jennifer Granholm last week. Also, flows of northern Iraqi crude to Turkey’s Ceyhan port have yet to resume following Baghdad’s request to restart them last week. The market rallied to a high of $71.69 in afternoon trading. The June WTI contract retraced some of its gains and settled in positive territory for the first time in four sessions, up $1.07 at $71.11. The July Brent contract settled up $1.06 at $75.23. Meanwhile, the product markets settled sharply higher, with the heating oil market settling up 7.25 cents at $2.3780 and the RB market settling up 4.18 cents at $2.472. Trading and shipping sources said flows of northern Iraqi crude oil to Turkey's Ceyhan port have not resumed following Baghdad's request to restart them last week. Iraq's Oil Minister wanted flows to resume on Saturday at a rate of 500,000 bpd after they had been halted since March 25th. A source said operators at Ceyhan have not even received instructions to prepare for restart of flows. Canada’s Prime Minister, Justin Trudeau was meeting soldiers helping fight wildfires in Alberta that forced people to evacuate homes in Canada’s main oil-producing province over the weekend. There were more than 100 wildfires this month, at one point pushing more than 30,000 people out of their homes while oil and gas producers shut in at least 319,000 bpd of oil equivalent or 3.7% of national production. The EIA reported that total oil production in the shale regions for June is forecast to increase by 42,000 bpd to 9.332 million bpd, the highest level on record in June, following a 53,000 bpd increase in May. Bakken oil production for June is seen increasing by 13,000 bpd to 1.232 million bpd following a 15,000 bpd increase in May, while Eagle Ford oil output for June is forecast to increase by 2,300 bpd to 1.108 million bpd following a 9,600 bpd increase in May. Permian Basin oil production in June is expected to increase by 15,000 bpd to 5.707 million bpd, the highest level on record, following a 13,000 bpd increase in May. Saudi Arabia’s crude oil exports have been declining in May as a voluntary production cut pledged by the kingdom and other OPEC+ producers take hold after an increase in April. Petrologistics’ data showed that Saudi Arabia increased its crude exports in April by 470,000 bpd on the month. Kpler estimated Saudi Arabia’s oil exports in April at 7.58 million bpd, up 390,000 bpd on the month. Kpler’s data shows Saudi crude exports are likely to average 6.48 million bpd in May. IIR Energy reported that U.S. oil refiners are expected to shut in about 351,000 bpd of capacity in the week ending May 19th, increasing available refining capacity by 282,000 bpd.
US confirms buying 3mln barrels in first bid to refill heavily drawn-down oil reserve -The Biden administration will buy three million barrels in its first bid to refill the country’s heavily-drawn oil reserve, the Department of Energy said in a statement on Monday. “The “DoE …will purchase up to 3 million barrels of oil for the Strategic Petroleum Reserve (SPR) in continuation of the Biden-Harris Administration’s three-part replenishment plan,” the statement said, adding that the department “intends to purchase more oil later this year”. Since last week, news wires have used sources within the DoE or the administration to report about the government’s attempts to refill the SPR. The Biden administration has leaned heavily on the SPR since late 2021 to offset tight crude supplies that had raised fuel costs for Americans. As of last week, the SPR’s crude balance was at its lowest since November 1983 after the release of about 200 million barrels or more from the reserve over the past 18 months. The administration’s use of the SPR has been a highly-charged matter for oil bulls and opponents of President Joe Biden. Both sides accuse him of indiscriminately releasing hundreds of millions of barrels from the stockpile to subdue crude prices and shore up his political standing with American voters — when the reserve is meant for emergency use, in times of critically short oil supply. In his defense, Biden said he was acting to reduce record-high fuel pump prices, which stood at above $5 per gallon last June and now hover at around $3.50. The administration also blames the previous year’s high crude prices for US inflation getting to four-decade highs of above nine per cent in June. The DoE statement on Monday reinforced the president’s argument, saying that analysis by the Treasury Department indicated that last year’s SPR releases, along with coordinated releases of oil reserves by international partners of the United States, succeeded in reducing pump prices of US gasoline “by up to roughly 40 cents per gallon compared to what they would have been absent these drawdowns”. It added that the three-part replenishment strategy involved direct purchases with revenues from emergency sales; exchange returns that include a premium to volume delivered; and securing of legislative solutions that avoid unnecessary sales unrelated to supply disruptions so as to strategically maintain volume. It said the DoE has also secured the cancellation of 140 million barrels in congressionally mandated sales scheduled for fiscal years 2024 through 2027. “This cancellation has already led to significant progress toward replenishment and will allow the SPR to have the same number of barrels in reserve by the end of FY 2027 that it would have had emergency barrels not been sold in 2022,” the statement said. London-traded Brent crude, the global benchmark for oil, settled up $1.06, or 1.4%, at $75.23 per barrel. Brent dropped by 14 per cent over the previous four weeks. New York-traded West Texas Intermediate, or WTI, crude settled up $1.07, or 1.5%, at $71.11 per barrel. WTI had fallen by 15 per cent over the past four weeks. WTI jumped briefly in post-settlement trade to $71.67, reacting to reports about the DoE’s planned purchase of crude for the SPR.
Crude oil prices extend gains on US plans to refill reserve, Canada’s wildfires -- Oil prices rose for a second day early on Tuesday, as U.S. plans to purchase oil for the Strategic Petroleum Reserve (SPR) lent support while raging wildfires in Canada fuelled supply worries. Brent crude futures rose 31 cents, or 0.4%, to $75.54 a barrel by 0043 GMT, while U.S. West Texas Intermediate crude was at $71.38 a barrel, up 27 cents, or 0.4%. Both benchmarks rose more than 1% on Monday, reversing a 3-session losing streak. The U.S. Department of Energy said on Monday it would buy 3 million barrels of crude oil for the SPR for delivery in August, and asked that offers be submitted by May 31.”The market got a boost from expectations that the U.S. repurchase of oil for the strategic reserve will continue if WTI prices fall near or below $70 a barrel,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd. “Behind the gain was also bargain-hunting by some investors after the recent sharp declines,” he said. Last week, Brent and WTI futures fell for a fourth straight week over fears of a U.S. recession and risks of a historic default on government debt in early June. The benchmarks last recorded a similar streak of weekly declines in September 2022. Oil prices on Tuesday, however, drew support from supply worries stemming from wildfires in Canada.The widespread blazes in Alberta, Canada forced more than 30,000 people out of their homes at one point and shuttered at least 319,000 barrels of oil equivalent per day (boepd), or 3.7% of national production. Global crude supplies could also tighten in the second half as OPEC+ – the Organization of the Petroleum Exporting Countries and allies including Russia – plan additional output cuts. On the other hand, U.S. oil output from the seven biggest shale basins is due to rise in June to the highest on record, data from the Energy Information Administration showed. Venezuelan state energy company PDVSA’s new management expects to boost the country’s oil production to 1.17 million barrels per day (bpd) by year end while increasing refining and exploration activities, an internal planning document showed.
The Market Weighed the Weaker Than Expected Economic Data The oil market traded mostly sideways on Tuesday as it posted the day’s trading range by mid-day. The market weighed the weaker than expected economic data from China and the U.S. against a forecast of higher global demand from the IEA. The market was pressured early in the session in light of data showing that Chinese industrial output and retail sales growth were below market expectations in April, suggesting China’s economy lost momentum at the beginning of the second quarter. Meanwhile, U.S. data showed that retail sales increased less than expected in April. However, the market traded to a high of $71.79 early in the session on the IEA raising its forecast for global oil demand by 200,000 bpd this year to 102 million bpd and the Department of Energy announcement that it would buy 3 million barrels of oil in August to begin refilling the SPR. Despite the bullish news, the market later gave up its gains and sold off to a low of $70.45 before it settled in a sideways trading range during the remainder of the session as it awaited the outcome of the debt limit talks between President Biden and the Speaker of the House and other congressional leaders on Tuesday afternoon. The June WTI contract settled down 25 cents at $70.86 and the July Brent contract settled down 32 cents at $74.91. The product markets ended mixed, with the heating oil market settling down 1.41 cents at $2.3639 and the RB market settling up 71 points at $2.4791. On Tuesday, White House energy adviser, Amos Hochstein, said the Biden administration does not expect a big rally in summer oil prices this summer that would impact its strategic petroleum reserve efforts, one day after the U.S. Energy Department announced plans to buy 3 million barrels of crude oil to refill the SPR in August. The DOE said it aims to repurchase crude at a lower price than the average of about $95/barrel it was sold for in 2022. The DOE also said it secured the cancellation of 140 million barrels in congressionally mandated sales scheduled for fiscal years 2024 through 2027. The International Energy Agency said weeks of declining oil prices due to concerns over a possible recession contradict an outlook for scarce supply and increased demand later in the year. Demand is expected to eclipse supply by almost 2 million bpd in the second half of the year. The IEA raised its forecast for global oil demand by 200,000 bpd to 102 million bpd, noting that China's recovery after the lifting of COVID-19 curbs had surpassed expectations with demand reaching a record 16 million bpd in March. A rebound in domestic travel is the main reason for the recovery. It said China is set to account for nearly 60% of global demand growth in 2023, offsetting, along with India and the Middle East, sluggish demand in developed countries. The United States and Brazil will lead modest growth in oil supply of 1.2 million bpd for the year as OPEC+ cuts agreed in April mean volumes from the producer group will fall by 850,000 bpd from then through December. Meanwhile, non-OPEC+ supply is expected to increase by 710,000 bpd from April through December. The IEA said global oil supply fell by 230,000 bpd to 101.1 million bpd in April. The EIA reported that oil production from seven major regions in the U.S. will increase by 41,000 bpd to 9.332 million bpd from May to June. According to company forecasts and analysts, U.S. oil refiners aim to operate at up to 94% of a total 17.9 million bpd processing capacity this quarter, driven in part by expectations of seasonal travel demand.
Oil Futures Gain on US Retail Sales, Product Draws -- New York Mercantile Exchange oil futures and Brent crude on the Intercontinental Exchange pushed higher in pre-inventory trade Wednesday after an industry survey showed domestic gasoline and distillate fuel inventories fell for the second week through May 12, while solid U.S. retail sales for April offered more evidence that consumer spending is likely to support demand expansion into the summer months. The American Petroleum Institute reported Tuesday commercial gasoline inventories dropped by 2.46 million barrels (bbl) last week, nearly twice calls for a 1.3-million-bbl draw. Further details of the report showed distillate fuel inventories also declined by 886,000 bbl in the reviewed week compared with estimates for no change. If confirmed by official data from the U.S. Energy Information Administration, this would mark the second consecutive weekly drawdown from commercial fuel inventories. EIA will release its weekly data at 10:30 a.m. EDT. Meanwhile, U.S. commercial crude oil inventories unexpectedly built by 3.69 million bbl versus an expected decline of 800,000 bbl. Stocks at the Cushing, Oklahoma, tank farm -- the New York Mercantile Exchange delivery point for West Texas Intermediate futures -- increased 2.87 million bbl. Expectations for a modest crude draw are due partly to a Department of Energy announcement Monday indicating it disbursed another 2.4 million bbl of crude last week from the nation's Strategic Petroleum Reserve to the commercial side. That brings emergency crude supplies down to a more-than 40-year low of 360 million bbl. In financial markets, the U.S. Dollar Index jumped against global peers to a 1-month high 102.795 Wednesday morning after government data showed Americans increased their retail spending in April for the first time in three months. Tuesday's data showed China's retail sales and industrial production for April broadly missed expectations amid an uneven recovery. Industrial production rose 5.6% year-on-year compared to the 10.9% expansion expected by economists and a mere 1.7% above the March level. This follows the latest PMI data that showed business activity across China's manufacturing sector fell into contraction last month for the first time since the lifting of COVID lockdowns in late 2022. Without adequate demand for manufactured products from Western countries, China is likely to struggle with the trajectory of its post-COVID recovery. Near 7:30 a.m. EDT, West Texas Intermediate for June delivery advanced $0.30 to $71.15 bbl and international crude benchmark Brent for July delivery gained to $75.22 bbl, up by $0.31 bbl in overnight trade. NYMEX RBOB June futures added $0.0179 to $2.4970 gallon, while ULSD June futures firmed to $2.3730 gallon.
WTI Slides After Big Crude Build, 7th Straight Weekly SPR Drain By Biden Admin Oil prices have whipped around overnight since API reported a big crude build (and Cushing stocks soaring) as hopes for debt ceiling deal trumped the latest (weak) China demand signals. The International Energy Agency on Tuesday said it expects demand to outstrip supply by more than two-million barrels per day in the second half of 2023. The prediction is being widely ignored by the market as it remains focused on a potential US debt default as debt-ceiling negotiations continue, while slowing OECD economies amid rising interest rates raise recession worries. API
- Crude +3.69mm (-800k exp)
- Cushing +2.87mm - biggest build since Jan '23
- Gasoline -2.46mm (-1.3mm exp)
- Distillates -886k (unch exp)
DOE
- Crude +5.04mm (-800k exp) - biggest build since Feb 2023
- Cushing +1.46mm - biggest build since Jan 2023
- Gasoline -1.38mm (-1.3mm exp)
- Distillates +80k (unch exp)
Confirming API's report, the official data showed big builds in total crude stocks and at Cushing while Gasoline inventories drew down as expected...Graphics Source: Bloomberg While the Biden admin proclaimed their intent to buy 3mm barrels to start refilling the SPR this week, they drained another 2.4mm barrels - the 7th straight weekly drain (draining 11.993mm barrels)US Crude production was flat at cycle highs despite the ongoing slide in rig counts... WTI was hovering around $71.80 ahead of the official data, and extended losses on the crude build..."Crude oil continues to trade with a negative bias on near-term demand concerns, especially in China, and the US debt ceiling debacle which is lowering the general level of market risk appetite. The IEA concluded the monthly batch of oil market reports by joining OPEC in saying global oil demand in 2023 will be stronger than previously expected, rising by 2.2m b/d to a record 102m b/d as China demand recovery surpasses expectations, clearly not a view that is being shared by the market at large," Saxo Bank noted.
Oil, Equities Rally on Optimism Over Debt Ceiling Deal -Oil futures settled Wednesday's session with sharp gains spurred by risk-on sentiment in financial markets after U.S. President Joe Biden voiced confidence that an agreement on the debt ceiling would be reached in coming days, easing concerns about a potential default and the cascading impact on energy demand. At the conclusion of a meeting between Biden and congressional leaders on Tuesday, House Speaker Kevin McCarthy said, "We now have a structure to come to a conclusion" on debt ceiling negotiations, adding that it's "possible to get a deal done by the end of the week." As investors grew increasingly hopeful that there would be a resolution in U.S. debt talks, Dow Jones Industrials rallied more than 350 points to 33,380, and the S&P 500 advanced 1.1%. The risk-on sentiment in financial markets spurred gains in the oil complex, sending front-month West Texas Intermediate futures $1.97 per barrel (bbl) higher to $72.83 per bbl, and the international crude benchmark Brent contract for July delivery settled just a tad below $77 per bbl at $76.96 per bbl, rallying more than $2 per bbl on the session. NYMEX RBOB June futures advanced $0.0901 to $2.5692 per gallon, while ULSD June futures firmed to $2.4226 per gallon, up $0.0587. Wednesday's higher settlements in the oil complex came despite a mostly bearish inventory report released Wednesday morning from the U.S. Energy Information Administration showing commercial crude oil inventories climbed 5 million bbl last week compared with estimates for an 800,000 bbl drawdown. The stock build was realized, in part, due to a 2.4-million-bbl transfer of crude oil from the nation's Strategic Petroleum Reserve to the commercial side last week, according to data released by the Department of Energy. Oil stored at Cushing, Oklahoma, the delivery point for WTI, increased by 1.5 million bbl. U.S. crude oil production, meanwhile, fell 100,000 barrels per day (bpd) last week to 12.2 million bpd. The U.S. refining utilization rate jumped 1% from the previous week to 92%, with refiners processing 245,000 bpd more crude than the previous week's average. In the gasoline complex, commercial stockpiles declined 1.4 million bbl to 218.3 million bbl, close to analyst expectations for a 1.3-million-bbl decrease to have occurred. Demand for the ground transportation fuel decreased 395,000 bpd to 8.908 million bpd, bringing the four-week average to 9.1 million bpd or 2.9% above last year's weekly demand rate. Distillate fuel inventories increased slightly to 106.2 million bbl and now stand about 16% below the five-year average. Distillate fuel consumption declined 299,000 bpd to 3.736 million bpd.
Oil settles up $2 on optimism about US debt ceiling, demand --Oil prices settled up about $2 on Wednesday as optimism over oil demand and U.S. debt ceiling negotiations outweighed worries about abundant supply. Brent crude futures settled up $2.05, or 2.7%, to $76.96 a barrel. West Texas Intermediate U.S. crude settled up $1.97 or 2.8% to $72.83. "Today's strong oil trade was all about the expectation of a debt ceiling agreement, likely by the end of this week, that appeared to lift a negative burden across most asset classes, including oil," President Joe Biden and top U.S. congressional Republican Kevin McCarthy on Wednesday underscored their determination to reach a deal soon to raise the federal government's $31.4 trillion debt ceiling and avoid an economically catastrophic default. After a months-long standoff, the Democratic president and speaker of the House of Representatives on Tuesday agreed to negotiate directly. An agreement needs to be reached and passed by both chambers of Congress before the federal government runs out of money to pay its bills, as soon as June 1. The optimism outweighed a crude inventory increase of 5 million barrels in the week ended May 12 reported by the Energy Information Administration. Analysts polled by Reuters had expected a 900,000 barrel drop. The crude inventory build added to concerns about U.S. growth after data showed retail sales rose 0.4% in April, short of estimates for an increase of 0.8%. However, gasoline stocks drew down by 1.4 million barrels as the four-week gasoline product supplied - a proxy for demand - rose to its highest level since December 2021. The International Energy Agency on Tuesday predicted demand would outpace supply by 2 million barrels per day (bpd) in the second half of the year, with China making up 60% of oil demand growth in 2023. In China, April industrial output and retail sales growth undershot forecasts, suggesting the economy lost momentum at the beginning of the second quarter. "A bunch of Chinese macro-economic data for April released on Tuesday confirmed the narrative of a patchy and slow recovery in the country and continue to weigh on oil market sentiment."
The Market Awaits the Outcome of the Debt Ceiling Negotiations The oil market on Thursday posted an inside trading day as the market awaits the outcome of the debt ceiling negotiations. Early in the session, the market posted a high of $72.87 before it found some selling pressure amid the strength the dollar and increasing expectations that the Federal Reserve could increase interest rates again at its June meeting. The strength in the dollar came from lower than expected initial jobless claims and optimism about a possible U.S. debt ceiling deal. Meanwhile, Dallas Federal Reserve President, Lorie Logan, said she is concerned that inflation is not falling fast enough to allow the Fed to halt its interest rate hike campaign in June. The crude market retraced more than 50% of its previous gains as it traded to $71.42 ahead of the close. The June WTI contract settled down 97 cents at $71.86 and the July Brent contract settled down $1.10 at 75.86. The product markets settled in negative territory, with the heating oil market settling down 2 cents at $2.4026 and the RB market settling down 9 points at $2.5683. Vice President Kamala Harris and President Joe Biden’s top economic adviser, Lael Brainard, said that a U.S. debt default would throw the U.S. economy into a recession. Meanwhile, U.S. House Speaker, Kevin McCarthy and Senate Majority Leader, Chuck Schumer, are making plans for votes in the coming days on a bipartisan deal to avoid a U.S. debt default. The House Speaker said the negotiators on the federal debt limit may reach an agreement in principle as soon as this week. He said the House will need to vote by next week on any compromise produced by the negotiators. Senator Chuck Schumer said the Senate would take up the legislation after House passage. He said that lawmakers should be ready to return to Washington on 24-hours’ notice during next week’s recess, as debt ceiling talks make progress towards a possible deal to avoid default. Bloomberg said that in a scenario where a default is avoided a short, mild recession currently expected becomes a deeper one, with an annualized GDP decline of 1.8% in the second half of 2023. The unemployment rate increases to 5.3% by mid-2024. If the Treasury is forced to cut spending to service debt, a conservative estimate would put the GDP decline at 8%.The EPA said the U.S. generated 603 million biodiesel (D4) blending credits in April, down from 619 million credits in March. It also reported that the U.S. generated 1.16 billion ethanol (D6) blending credits in April, down from 1.22 billion in March.Colonial Pipeline Co is allocating space for Cycle 31 on Line 1, its main gasoline line from Houston, Texas to Greensboro, North Carolina. The current allocation is for the pipeline segment north of Collins, Mississippi.The International Energy Forum said, citing data from the Joint Organizations Data Initiative that Saudi Arabia's crude oil exports in March increased by 65,000 bpd to 7.52 million bpd from 7.455 million bpd in February. Saudi Arabia’s crude oil production in March increased by 14,000 bpd to 10.46 million bpd.
Oil Futures Advance as Wildfires Disrupt Canadian Output -- Oil futures on the New York Mercantile Exchange and Brent crude traded on the Intercontinental Exchange powered higher early Friday, with all petroleum contracts on course for solid gains this week after spreading wildfires in Canada's oil-producing region of Alberta shut-in roughly 250,000 barrels (bbl) in daily output. More than 2.7 million bbl in daily oil production is located within areas of "very high" or "extreme" wildfire danger rating zones, according to an independent research firm Rystad Energy. Unusually high temperatures for this time of the year have aided the intense spring wildfires in western Canada, displacing thousands of people and destroying property. Satellite images show that toxic cloud of burned particles has blanketed the region and dipped across the border into the United States. Further spurring gains in the oil complex, the U.S. Dollar Index pulled back from Thursday's two-month high 103.455 settlement after several Federal Reserve officials indicated the U.S. central bank is not done with raising interest rates amid continued strength in the economy and labor market. St. Louis Federal Reserve President James Bullard in a Financial Times interview said he is leaning toward another 0.25% hike in the federal funds rate at the next meeting in June as "an insurance against inflation." Similar sentiment was echoed in the comments from the Dallas Fed President Lorie Logan who said, "The pause is not in order, though that could change in the coming weeks depending on the data." The U.S. economy defied all expectations this year while sustaining a low unemployment rate amid high inflation and increasingly restrictive interest rates that are now above the annual rate of inflation. Thursday's economic data showed the number of Americans filing for unemployment benefits unexpectedly dropped last week by the most since 2021, while continued claims that measure those who receive unemployment benefits for consecutive weeks also dropped to 1.79 million. With the labor market largely intact, Americans increased their retail spending in April for the first time in three months, according to the U.S. Commerce Department. Retail sales -- a measure of spending at stores, online and in restaurants -- rose a seasonally adjusted 0.4% in April from the previous month after declining in February and March -- a sign of consumers continued resilience despite high inflation and rising interest rates. Faced with this conundrum, some Fed officials even suggested that the Federal Open Market Committee could "skip" the meeting in June to adopt a "wait-and-see" approach before committing to either pausing or raising interest rates further. Near 7:45 a.m. EDT, West Texas Intermediate futures for June delivery advanced $0.80 to $72.63 bbl, and the international crude benchmark Brent contract gained to $76.67 bbl, up $0.83 bbl. NYMEX RBOB June futures rallied $0.0192 to $2.5875 gallon, while ULSD June futures advanced $0.0146 to $2.4172 gallon.
Oil down as U.S. debt talks hit brakes; Crude still up on week -- Crude prices reversed early gains to end lower on Friday as talks to raise the U.S. debt ceiling hit an impasse again. But oil bulls still had some hurrah: the first weekly rise in five from gains between Monday and Wednesday. President Joe Biden and his main Republican rival in Congress Kevin McCarthy had previously said they were closer than before to a deal to raise the $31.4 trillion U.S. debt ceiling, and that a conclusion could come as early as Sunday to avoid a federal default on payments by June 1. By Friday though, it was clear that the talks were going nowhere. “White House is not being reasonable,” said a headline citing Republican debt negotiators. Another, which ran on Fortune.com and quoting Republican negotiator Garret Graves, was more affirmative on the standoff. “It’s time to press pause because it’s just not productive,” Graves was quoted as telling reporters. McCarthy himself said: “We’ve got to get movement from the White House, and we don’t have any movement yet.” He added that he and Biden had not spoken on Friday. New York-traded West Texas Intermediate, or WTI, crude settled down 31 cents, or 0.5%, at $71.55 per barrel. Week-to-date though, WTI was up about 2%. The U.S. crude benchmark fell a cumulative 15% over four prior weeks. London-traded Brent crude, the global benchmark for oil, settled down 28 cents, or 0.4%, at $75.58. For the week, Brent was also up 2% after four previous weeks of losses totaling 14%. Both WTI and Brent had rallied by more than $1 earlier on Friday on optimism that the debt ceiling talks were making progress. “Traders were reluctant to go into the weekend short, on the off chance that an agreement to raise the U.S. government’s debt ceiling is struck over the weekend,” “[A U.S. debt] default was almost certainly never a realistic possibility in the first place,” Also boosting oil was a weaker dollar, which makes commodities like crude which are priced in the greenback more affordable to holders of other currencies. The Dollar Index was down for the first time in five sessions even as some speculators held to the belief that the Federal Reserve will raise rates for an 11th straight time when the central bank’s policy makers meet on June 14.
Iran Seizes Third Oil Tanker As U.S. Boosts Military Presence -Iran has seized yet another oil tanker bringing the tally to three tankers seized in the space of just 19 days as tensions in the Persian Gulf heat up. The tanker in question is said to be an Iranian oil tanker that had been seized by a foreign company five years ago, according to state-run IRNA news agency, which describes the seizure as the reclamation of that previously seized Iranian tanker.“The seized 10,000-ton oil tanker Purity had been illegally leased to a foreigner by falsifying documents since 2018 and its Iranian owners were deprived of the benefits of the oil tanker,” Mojtaba Qahremani, head of the justice department in Iran’s southern province of Hormozgan, was quoted as saying.The Bahrain-based U.S. fleet continues to monitor the situation in the Persian Gulf. Over the past two years, Iran has attacked, interfered with or harassed the navigational rights of 15 internationally flagged commercial vessels, U.S. officials have revealed. Late last month, Iran’s state television showed footage of the country’s navy commandos in a helicopter operation boarding the Marshall Islands-flagged tanker Advantage Sweet. The Turkish-operated, Chinese-owned tanker was reportedly bound for Houston, Texas carrying Kuwaiti crude oil for U.S. energy giant Chevron Corp. Iran claimed that the tanker collided with an unidentified Iranian vessel hours prior to its seizure, with several crew members reportedly falling overboard while others were left injured. The tanker then fled the scene and ignored radio calls for eight hours before a court ordered its seizure.
Play It Again Uncle Sam... Debunked Syrian Chemical Weapons Card In Ukraine -- Western media are now accusing Russian forces of preparing to use chemical weapons (CW) of mass destruction in Ukraine, thereby making the case for greater NATO military intervention. The CW card is a complete dud. That Western media are playing it shows they are also complete duds, and that their role is as sinister as mass drug-dealing. Deliberate provocation by Western powers is the watchword. Britain this week supplying long-range missiles, as well as depleted uranium artillery shells, and drone attacks on the Kremlin are part of a sequence to solicit never-ending escalation. Accusing Russia of planning to use chemical weapons of mass destruction, as with earlier claims of Russia willing to use nuclear weapons, is all part of the orchestrated provocation. The degradation of Western media standards has become so bad that they can get away with retailing such nonsense to consumers of this “information”. First of all, Russia does not have any chemical weapons. As a signatory to the international treaty known as the Chemical Weapons Convention (1997), the Russian Federation verifiably destroyed all of its arsenals as per its signatory obligations. The complete decommissioning of these weapons by Russia in 2017 was verified by the Organization for the Prohibition on Chemical Weapons (OPCW). The United States is the only major power that has not fully implemented the CW convention by retaining stockpiles of these weapons. Not only is speculation about Russian forces possibly using CW in Ukraine baseless, but the Western media are also deploying the shoddy lie used earlier against Syria. Incredibly, for anyone cognizant of the facts, such calumny is still peddled to blame the wrong people when the real perpetrator in Syria was Western-backed militants and their CIA and MI6-sponsored media accomplices, the so-called White Helmets.
Hungary Blocks €500 Million In EU Weapons Funding For Ukraine After Kiev Sanctions Hungary's Biggest Bank - Hungary will block funding worth €500 million for arms to Kyiv, which would be the eighth transfer from the European Peace Facility (EPF), business daily Világgazdaság reported.Budapest has demanded guarantees that the EPF will maintain its global horizon in the future and not only be used to arm Ukraine.The Council of Foreign Ministers of the EU member states approved on May 5 the joint purchase by EU countries of artillery ammunition and missiles for Ukraine worth €1 billion, the EU Foreign Affairs Council announced on Friday. The aid, approved as part of the European Peace Facility, will allow the Ukrainian armed forces to be supplied with 155-millimeter caliber artillery ammunition and rockets.A day before the council’s decision, the Ukrainian National Agency for the Prevention of Corruption (NACC) included OTP Bank in the list of international war sponsors. This decision was justified by the position of the bank’s management on the continuation of its activities in Russia and the de facto recognition of the so-called “people’s republics” of Donetsk and Luhansk.Minister of Foreign Affairs and Trade Péter Szijjártó said on Friday in Stockholm that until Ukraine revokes the decision, the Hungarian government would be “hard pressed” to negotiate further sanctions that would require further sacrifices. “It is scandalous that Ukraine has put OTP, which does not violate any laws, on the list of international sponsors of the war,” Szijjártó said. Relations between Ukraine and Hungary have not been good for a while, dating back to before the war, mainly on account of Ukraine’s poor treatment of its ethnic Hungarian minority. However, Hungary’s decision to not send weapons to Ukraine, and its promotion of a peace deal and ceasefire in Ukraine have angered Ukraine and a host of Western governments.Last month, Tamás Menczer, state secretary for bilateral relations at the Ministry of Foreign Affairs and Trade, said that Hungary will not support Ukraine’s integration into the European Union or NATO until the rights of the Hungarian community in Ukraine are restored. It has also been revealed that Ukraine planned to blow up a vital Russian pipeline supplying oil to Hungary in order to cripple Hungary’s industry, according to leaked U.S. intelligence documents. The news has been met with shock in Hungary, with one security analyst saying it amounted to an attack on Hungary, and therefore an attack on NATO.“This is an attack on Hungary and therefore NATO, according to NATO Article 5,” Hungarian security policy expert György Nógrádi told daily Magyar Nemzet in an interview.
Russian Jet Intercepts French, German Aircraft Near Border; Belarus Puts Troops On High AlertRussia's defense ministry on Monday said the military scrambled fighter jets in response to surveillance aircraft from NATO countries approaching its border. Interfax reported based on the statement that German and French aircraft approached the Russian border in the Baltic region, before being warned off by the Russian fighters."Two air targets were detected approaching Russia's state border," the defense ministry said. "In order to identify the targets and prevent the Russian state border being violated, an Su-27 fighter from the Baltic Fleet air force was scrambled.""Russia said the flights were being conducted by a German P-3C patrol aircraft and a French Atlantic-2 maritime patrol jet," Reuters details further based on the statement. "After the Russian jet was scrambled and the French and German ones turned away from Russia, the Su-27 returned to base, the defense ministry said."These types of intercepts which occur not infrequently over both the Baltic and Black sea regions have grown more dangerous in the wake of the March incident which resulted in the downing of a MQ-9 Reaper drone in the Black Sea. "The U.S. military’s declassified 42-second color footage shows a Russian Su-27 approaching the back of the MQ-9 Reaper drone and releasing fuel as it passes, the Pentagon said," the AP described of the incident at the time. "Dumping the fuel appeared to be aimed at blinding the drone’s optical instruments to drive it from the area." The Reaper drone then crashed, also after a reported aerial collision (clipped) with one of the Russian fighters.
China Data Dump Total Disaster; Youth Unemployment Hits Record High -- In the run-up to tonight's extravaganza of centrally-managed "economic" data, China's macro data has been serially disappointing for six weeks as the re-opening narrative fails to deliver... Graphics Source: Bloomberg Even with the almost infallible credit impulse on the rise again, recent aggregate financing data has been dramatically weaker than expected... And before we break down the data, one huge caveat, the official headline figures that China’s National Bureau of Statistics released tonight compares with last year - when much of country was in total lockdown due to COVID, bringing the economy to a standstill everywhere. Therefore, what’s more telling is that the pace of overall growth on a month-on-month basis – that’s the key gauge of the recovery’s health right now. There was a modest silver lining with the Surveyed Jobless rate dropped to 5.2% (exp 5.3%), BUT, Youth unemployment soared to a record high 20.4%... The numbers are significantly worse than expected (and in most cases worse than the worst economist forecasts). As Bloomberg reports, Raymond Yeung, chief economist for Greater China at Australia & New Zealand Banking Group Ltd noted it "is a weak print." "The headline data fail to impress despite base effect from Shanghai lockdown last year. Youth jobless rate passed 20%. The reopening dividend is losing steam." China's NBS said "China faces insufficient domestic demand." Finally, after all that, bear in mind that China has not raised its rates (like the rest of the world) in over nine months and continues to flood the system with cash every month (also unlike almost every other nation on earth). Simply put, China has a seemingly bottomless liquidity hole somewhere in the middle and no matter how much credit they inject, it all gets soaked up offering no stimulation to the economy.
Teacher Sacked After Refusing To Use 8 Year-Old's Trans Pronouns --A primary school teacher sacked after refusing to use an eight-year-old child’s trans pronouns has said her only intention was to safeguard the pupil. The teacher from England, who can’t be named to protect the child’s identity, told The Epoch Times she had raised concerns about the potential damage social transition could have on the young pupil. The woman—who is now taking legal action against Nottinghamshire County Council over her dismissal—claimed she was stonewalled by school chiefs after raising concerns over the welfare of the eight-year-old. She was dismissed last year after raising a number of concerns regarding the facilitation of a new school pupil into her class who wanted to be treated as a boy. The child—with the support of both parents—requested to be called a different name and required that staff use pronouns aligned to the child’s new gender identity. School employees, including the pupil’s new teacher, were instructed to follow the family’s wishes, which included allowing the child to use of the boys’ toilets and dressing rooms. After raising issues with the principal—which the teacher felt went against her Christian beliefs—the child was removed from her class. However, discussions continued with school bosses on how she would address the child if they came into contact within the school setting. The teacher suggested using a “gender neutral type of nickname,” but was told that she could only use the name and pronouns requested by the child. After refusing, she was suspended for failing to comply with what she was told was a “reasonable management request.”
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