ReportWire

Tag: energy and utilities

  • Power outage disrupts New York’s JFK Airport Terminal 1 | CNN

    Power outage disrupts New York’s JFK Airport Terminal 1 | CNN

    [ad_1]



    CNN
     — 

    A power outage is disrupting flights at a John F. Kennedy International Airport terminal, the airport said Thursday.

    The outage at Terminal 1 was caused by an electrical panel failure that resulted in a “small isolated fire overnight that was immediately extinguished,” the Port Authority of New York and New Jersey said in a statement.

    “The power outage is currently impacting the terminal’s ability to accept inbound and outbound flights,” the statement said.

    Other terminals are being used to accommodate the affected flights, and travelers should check with their airlines for flight status, the Port Authority said.

    An Air New Zealand flight that was due to land at JFK at 5:40 p.m. ET Thursday was diverted back to its origin airport, according to flight tracking site FlightAware.

    Some arriving international flights were diverted to other East Coast airports, including Newark Liberty International Airport in New Jersey, Boston’s Logan International Airport and Washington Dulles International Airport, JFK’s website showed.

    The Port Authority is trying to restore power at Terminal 1 by working around the circuits affected by the overnight fire, according to a Port Authority official with knowledge of the outage.

    If this method of restoring the power to the terminal is not successful, they are prepared to use generator power to get Terminal 1 back online, the Port Authority source added.

    The aircraft ramp around Terminal 1 has been closed and is scheduled to reopen Friday morning, according to a notice posted in a Federal Aviation Administration safety database.

    The FAA referred questions about the incident to the airport operator. The Transportation Security Administration said: “TSA is eagerly awaiting the power situation to be resolved.”

    Passengers on the Air New Zealand flight found themselves on a nearly 16-hour flight from Auckland back to Auckland after ANZ2 turned around because of the disruption at JFK.

    “Diverting to another US port would have meant the aircraft would remain on the ground for several days, impacting a number of other scheduled services and customers,” the airline said in a statement to CNN.

    Airline staff will be on hand to rebook passengers when they arrive back in Auckland.

    “We apologise for the inconvenience and thank our customers for their patience and understanding.”

    [ad_2]

    Source link

  • The evacuation order was lifted a week ago near the toxic train wreck in Ohio, but some aren’t comfortable going home | CNN

    The evacuation order was lifted a week ago near the toxic train wreck in Ohio, but some aren’t comfortable going home | CNN

    [ad_1]



    CNN
     — 

    An overwhelming stench of chlorine filled the air this week where Nathen Velez and his wife had been raising their two children, quickly burning his throat and eyes.

    The odor has lingered nearly two weeks after a Norfolk Southern train carrying hazardous materials derailed near the Ohio-Pennsylvania line, igniting an inferno that burned for days and prompted evacuations in surrounding areas while crews managed detonations to release vinyl chloride, which can kill quickly at high levels and increase cancer risk.

    The stay-away order was lifted five days after the derailment, after air and water sample results led officials to deem the area safe, the East Palestine, Ohio, fire chief said at the time. Governors of both states that day said air quality samples had “consistently showed readings at points below safety screening levels for contaminants of concern” – but also advised private well users to opt for bottled water and offered free well testing.

    Now, a week after residents were allowed to return, bottled water should remain the rule until more test results are back, Ohio Gov. Mike DeWine told “CNN This Morning” on Wednesday, noting water in the first well tested “was fine.”

    Still, he said, “Don’t take a chance. Wait until you get the tests back.”

    As that warning echoes and other worrying signs emerge, many in East Palestine remain plagued with anxiety – and some refuse to return amid fears the water, air, soil and surfaces in the village of 5,000 are not safe from fallout from the freight wreck. Some, like Velez, even are spending small fortunes to try to keep their families safely away from the place they used to call home.

    Plaintiffs’ attorneys have invited residents to meet Wednesday afternoon to discuss the derailment’s impact ahead of an evening town hall meeting hosted by East Palestine officials.

    The 100-car freight train that derailed February 3 was carrying hazardous materials including vinyl chloride, ethylene glycol monobutyl ether, ethylhexyl acrylate, isobutylene and butyl acrylate, the US Environmental Protection Agency said. Of those, the vinyl chloride gas that caught fire could break down into compounds including hydrogen chloride and phosgene, a chemical weapon used during World War I as a choking agent, according to the EPA and US Centers for Disease Control and Prevention.

    Vinyl chloride – a volatile organic compound, or VOC, and the most toxic chemical involved in the derailment – is known to cause cancer, attacking the liver, and can also affect the brain, Maria Doa of the Environmental Defense Fund told CNN.

    Cleanup and monitoring of the site could take years, Kurt Kohler of the Ohio EPA’s Office of Emergency Response said February 8, vowing that after the emergency response, “Ohio EPA is going to remain involved through our other divisions that oversee the long-term cleanup of these kinds of spill.” The federal EPA, too, will “continue to do everything in our power to help protect the community,” Administrator Michael Regan said Tuesday.

    Norfolk Southern, the company that operated the train, said Wednesday it was creating a $1 million charitable fund to support East Palestine.

    “We are committed to East Palestine today and in the future,” Norfolk Southern President and CEO Alan Shaw said in a statement. “We will be judged by our actions. We are cleaning up the site in an environmentally responsible way, reimbursing residents affected by the derailment, and working with members of the community to identify what is needed to help East Palestine recover and thrive.”

    But that’s slim consolation to Ben Ratner, whose family worries about longer-term risks that environmental officials are only beginning to assess, he told CNN this week.

    The Ratner home, for instance, was tested and cleared for VOCs, he said. And so far, no chemical detections were identified in the air of 291 homes screened by the EPA for hazardous chemicals including vinyl chloride and hydrogen chloride, it said in a Monday news update, with schools and a library also screened and 181 more homes to go.

    But the Ratners – who played extras in a Netflix disaster film with eerie similarities to the derailment crisis – still are feeling “an ever-changing mix of emotions and feelings just right from the outset, just the amount of unknown that was there,” said Ben, who owns a cafe a few towns over and isn’t sure he still wants to open another in East Palestine.

    “It’s hard to make an investment in something like that or even feel good about paying our mortgage whenever there might not be any value to those things in the future,” he said. “That’s something tough to come to grips with.”

    The Ratner family celebrates Halloween in 2022 their home in East Palestine, Ohio.

    The EPA, with the Ohio National Guard and a Norfolk Southern contractor, also has collected air samples – checking for vinyl chloride, hydrogen chloride, carbon monoxide, phosgene and other compounds – in the East Palestine community, it had said. Air monitoring results posted Tuesday at the EPA’s website include more than a dozen instruments, each with four types of measures – and each stating its “screening level” had not been exceeded.

    But when Velez returned Monday for a short visit to the neighborhood where his family has lived since 2014 to check his home and his business, he developed a nagging headache that, he said, stayed with him through the night – and left him with a nagging fear.

    “If it’s safe and habitable, then why does it hurt?” he told CNN. “Why does it hurt me to breathe?”

    Despite Velez’s experience, air quality does not appear to be the source of headaches and sore throats among people or deaths of animals such as cats and chickens in and around the derailment zone, Ohio Health Director Dr. Bruce Vanderhoff said Tuesday.

    “In terms of some of the symptoms of headache, et cetera, unfortunately volatile organic compounds share, with a host of other things, the ability to cause very common symptoms at the lower levels – so headache, eye irritation, nose irritation, et cetera,” he said. “I think that we have to look at the measured facts – and the measured facts include the fact that the air sampling in that area really is not pointing toward an air source for this.”

    “Anecdotes are challenging because they’re anecdotes,” Vanderhoff said. “Everything that we’ve gathered thus far is really pointing toward very low measurements, if at all.”

    As to odor, residents “in the area and tens of miles away may smell odors coming from the site,” Ohio EPA spokesperson James Lee told CNN on Wednesday. “This is because some of the substances involved have a low odor threshold. This means people may smell these contaminants at levels much lower than what is considered hazardous.”

    “If you experience symptoms, Columbiana County Health Department recommends calling your medical provider,” the EPA said.

    The Ratner family is limiting its water use because of unknown affects, Ben Ratner said. And Velez worries “every time we turn the water on or give my daughter a bath could potentially be hazardous,” he wrote on Facebook.

    Some waterways indeed have been contaminated – but the Ohio Environmental Protection Agency is confident contaminants are contained, said Tiffany Kavalec, the agency’s division chief of surface water.

    No vinyl chloride has been detected in any down-gradient waterways near the train derailment, she said Tuesday. But an estimated 3,500 fish across 12 species are estimated to have been killed by the derailment and spillage, said Mary Mertz, director of Ohio’s Department of Natural Resources.

    “Fire combustion chemicals” flowed to the Ohio River, “but the Ohio River is very large, and it’s a water body that’s able to dilute the pollutants pretty quickly,” Kavalec said. The chemicals are a “contaminant plume” the Ohio EPA and other agencies have tracked in real time and is believed to be moving about a mile an hour, she said.

    The “tracking allows for potential closing of drinking water intakes to allow the majority of the chemicals to pass. This strategy, along with drinking water treatment … are both effective at addressing these contaminants and helps ensure the safety of the drinking water supplies,” Kavalec said, adding they’re pretty confident “low levels” of contaminants that remain are not getting to customers.

    Even so, authorities strongly recommend people in the area drink bottled water, especially if their water is from a private source, such as a well.

    Velez also worries about unknown long-term effects of the burned train contents, he said.

    “My wife is a nurse and is not taking any chances exposing us and our two young children to whatever is now in our town,” he wrote on Facebook. “The risk and anxiety of trying to live in our own home again is not worth it.”

    Velez and his family have been Airbnb-hopping 30 minutes from their home since they evacuated, but rental options and their finances are running out, he said, and a friend set up a GoFundMe to help the family.

    “Unfortunately, many of us residents are stuck in the same situation and the sad truth is that there is no answer,” he wrote. “There is no viable solution other than to leave and pay a mortgage on a potentially worthless home.”

    [ad_2]

    Source link

  • Russia to cut oil output by 5% as sanctions bite | CNN Business

    Russia to cut oil output by 5% as sanctions bite | CNN Business

    [ad_1]


    London
    CNN
     — 

    Russia will cut crude oil production by half a million barrels per day starting in March, a little over two months after the world’s major economies imposed a price cap on the country’s seaborne exports.

    “We will not sell oil to those who directly or indirectly adhere to the principles of the price ceiling,” Russian Deputy Prime Minister Alexander Novak said in a statement. “In relation to this, Russia will voluntarily reduce production by 500,000 barrels per day in March. This will contribute to the restoration of market relations.”

    The cut is equivalent to about 5% of Russian oil output.

    Futures prices for Brent crude, the global benchmark, jumped 2.7% Friday to $86 a barrel as traders anticipated a tightening in global supply. US oil gained 1% to trade at $79 a barrel.

    In June last year, the European Union agreed to phase out all seaborne imports of Russian crude oil within the following six months as part of unprecedented Western sanctions aimed at reducing Moscow’s ability to fund its war in Ukraine.

    In a move aimed at further tightening the screws, G7 countries and the European Union agreed in December to cap the price at which Western brokers, insurers and shippers can trade Russia’s seaborne oil for markets elsewhere at $60 a barrel. Earlier this month, EU countries also banned imports of Russia’s diesel and refined oil imports.

    Novak warned that the crude oil price cap could lead to “a decrease in investment in the oil sector and, accordingly, an oil shortage.”

    Neil Crosby, a senior analyst at oil data firm OilX, told CNN that a 500,000 barrel-a-day cut is not the “worst-case scenario” and is still a smaller hit to Russian production than most analysts were expecting last year.

    “But it sets a precedent for further cuts ahead if necessary or desired by Russian authorities,” Crosby said, adding that Moscow could be anticipating difficulty in finding enough demand for its crude.

    Russian Urals crude traded at a discount to Brent crude of $28 a barrel on Friday. Over the past few months, India and China have snapped up cheap oil from Moscow, just as the EU — once Russia’s biggest customer for crude — has ended all imports.

    “Russia currently has a limited pool of buyers for its crudes and has likely found a ceiling to its export sales in the near term, primarily to China and India,” said Alan Gelder, vice president of refining, chemicals and oil markets at Wood Mackenzie.

    According to Reuters, Russia took the decision to reduce its output without consulting the OPEC+ group of producers, which includes Saudi Arabia. OPEC+ decided in October to cut output by 2 million barrels per day and has not adjusted that stance since.

    A potential drop in global oil supply could come at a tricky time. China’s swift reopening of its economy in December after almost three years of strict coronavirus restrictions has pushed up estimates for global oil demand.

    Last month, the International Energy Agency said it expected global demand to surge by 1.9 million barrels per day to reach an all-time high of 101.7 million barrels per day, with China accounting for nearly half of the increase.

    Western sanctions — added to the grinding cost of war — are weighing on Russia’s economy. The country’s budget deficit ballooned to $45 billion last year, or 2.3% of its gross domestic product.

    But Russia’s central bank held its main interest rate at 7.5% Friday, saying that economic activity was better than expected and that inflation was likely to come down this year.

    [ad_2]

    Source link

  • Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

    Here’s what keeps Jerome Powell up at night and interest rates high | CNN Business

    [ad_1]

    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Federal Reserve Chairman Jerome Powell threw markets into a tizzy on Tuesday as he spoke about the economy alongside his former boss, Carlyle Group co-founder David Rubenstein, at the Economic Club of Washington.

    Stocks struggled for direction as investors tried to get a read on Powell’s economic outlook, attitude towards inflation and on future interest rate hikes. Wall Street cheered as the Fed chair said the disinflationary process has begun, then soured when he said the road to reaching 2% inflation will be “bumpy” and “long” with more rate hikes ahead.

    Markets soared to new highs, before quickly falling to session lows and then recovering to close the day in the green.

    “Powell doesn’t want to play games with financial markets,” said EY Parthenon chief economist Gregory Daco after the conversation. But at the same time, he said Powell wanted to communicate that the Fed’s “base case was not for inflation to come down as quickly and painlessly as some market participants appear to expect.”

    Here’s why Powell thinks bringing down prices will be more difficult than investors anticipate.

    Structural changes in the labor market: The US economy added an astonishing 517,000 jobs in January, blowing economists’ expectations out of the water. The unemployment rate fell to 3.4% from 3.5%, hitting a level not seen since May 1969.

    The current labor market imbalance is a reflection of the pandemic’s lasting effect on the US economy and on labor supply, said Powell on Tuesday in answer to a question about the report. “The labor market is extraordinarily strong,” he said. Demand exceeds supply by 5 million people, and the labor force participation rate has declined. “It feels almost more structural than cyclical.”

    “If we continue to get, for example, strong labor market reports or higher inflation reports, it may well be the case that we have to do more and raise rates more,” he said.

    Core services inflation: Powell noted that he’s seeing disinflation in the goods sector and expects to soon see declining inflation in housing. But prices remain stubborn for services. Service-sector inflation, which is more sensitive to a strong labor market, is up 7.5% from the year prior through the end of 2022, and has not abated, he said.

    “That sector is not showing any disinflation yet,” Powell said. “There has been an expectation that [higher prices] will go away quickly and painlessly and I don’t think that’s at all guaranteed.”

    Geopolitical uncertainties: Powell also cited concerns that the reopening of China’s economy after the sudden end of Covid-Zero restrictions, plus uncertainty about Russia’s war on Ukraine could also affect the inflation path in ways that remain unclear.

    The labor market is strong, but tech layoffs keep coming. There were around  50,000 tech jobs cut in January, and the trend has continued into February.

    Video conferencing service Zoom is one of the latest to announce layoffs. The company said Tuesday that it’s cutting 1,300 jobs or 15% of its workforce. 

    Zoom CEO Eric Yuan said in a blog post on Tuesday that Zoom ramped up employment  quickly due to increased demand during the pandemic. The company grew three times in size within 24 months, he said and now it must  adapt to changing demand for its services.

    “The uncertainty of the global economy, and its effect on our customers, means we need to take a hard — yet important — look inward to reset ourselves so we can weather the economic environment, deliver for our customers and achieve Zoom’s long-term vision,” he wrote.

    Yuan added that he plans to lower his own salary by 98% and forgo his 2023 bonus. Shares of Zoom closed nearly 10% higher on Tuesday. 

    The announcement comes just one day after Dell said it would lay off more than 6,500 employees.

    Amazon

    (AMZN)
    , Microsoft

    (MSFT)
    , Google and other tech giants have also recently announced plans to cut thousands of workers as the companies adapt to shifting pandemic demand and fears of a looming recession.

    Neel Kashkari, president of the Federal Reserve Bank of Minneapolis told CNN that he is starting to think that the US economy could avoid a recession and achieve a so-called soft landing.

    It’s hard to have a recession when the job market is still so robust, he told CNN’s Poppy Harlow on Tuesday on CNN This Morning.

    Still, “we have more work to do,” Kashkari told Harlow, adding that the labor market is “too hot” and that is a key reason why it is “harder to bring inflation back down.”

    Although many investors are starting to think the Fed may pause after just two more similarly small hikes, to a level of around 5%, Kashkari said he believes the Fed may have to raise rates further. Kashkari has a vote this year on the Federal Open Market Committee, the Fed’s interest-rate setting group.

    It’s a good time to be in the oil business. BP’s annual profit more than doubled last year to an all-time high of nearly $28 billion.

    The British energy company said in a statement that underlying replacement cost profit rose to $27.7 billion in 2022 from $12.8 billion the previous year. The metric is a key indicator of oil companies’ profitability.

    BP

    (BP)
    also unveiled a further $2.75 billion in share buybacks and hiked its dividend for the fourth quarter by around 10% to 6.61 cents per share.

    BP’s shares rose 6% in Tuesday trading following the news. Over the past 12 months, its shares have soared 24%.

    The earnings are the latest in a string of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of skyrocketing oil and gas prices.

    Last week, another energy major Shell reported a record profit of almost $40 billion for 2022, more than double what it raked in the previous year after oil and gas prices jumped following Russia’s invasion of Ukraine.

    On Wednesday it was TotalEnergie

    (TTFNF)
    s turn. The French company posted annual profit of $36.2 billion for 2022, double the previous year’s earnings.

    Disney has found itself in the middle of a culture war battle that could end up transferring Disney World’s governance to a board appointed by Florida Gov. Ron DeSantis. And that may be the least of Disney’s problems, writes my colleague Chris Isidore.

    The company faces a media industry in turmoil, plunging cable subscriptions, a still-recovering box office, massive streaming losses, activist shareholders, possible reorganization and layoffs and growing labor disputes with employees. That’s a lot for CEO Bob Iger to handle.

    Iger, who retired as CEO in 2020 only to be brought back in November, has been mostly quiet about his plans for the company since his return. That ends at 4:30 p.m. ET Wednesday when he is set to begin an earnings call with Wall Street investors.

    Click here to read more about what to look for on what is certain to be a closely-followed call.

    [ad_2]

    Source link

  • BP’s annual profit more than doubles to $28 billion | CNN Business

    BP’s annual profit more than doubles to $28 billion | CNN Business

    [ad_1]


    Hong Kong
    CNN
     — 

    BP’s annual profit more than doubled last year to nearly $28 billion, extending a record run of earnings for the world’s oil majors that is adding to calls for higher taxes on the windfall gains.

    The British energy giant said in a statement that underlying replacement cost profit rose to $27.7 billion for 2022, compared with $12.8 billion the previous year. The metric is a key indicator of oil companies’ profitability.

    BP

    (BP)
    also announced on Tuesday a further $2.75 billion in share buybacks and hiked its dividend for the fourth quarter by around 10% to 6.61 cents per share.

    The earnings are the latest in a series of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of soaring oil and gas prices.

    Last week, Shell

    (RDSA)
    reported a record profit of almost $40 billion for 2022, more than double what it raked in the previous year after oil and gas prices soared following Russia’s invasion of Ukraine.

    — This is a developing story and will be updated.

    [ad_2]

    Source link

  • Residents not yet allowed to return to homes near site of fiery train derailment in Ohio | CNN

    Residents not yet allowed to return to homes near site of fiery train derailment in Ohio | CNN

    [ad_1]



    CNN
     — 

    Residents of the Ohio village of East Palestine remain unable to return home after a controlled release Monday of a toxic chemical from cars that were part of a train derailment three days ago, Mayor Trent Conaway said during an evening news conference.

    An operation to drain vinyl chloride – a chemical that officials said was unstable and could explode – from five Norfolk Southern rail cars began just after 4:30 p.m. ET.

    Scott Deutsch of Norfolk Southern had earlier said small, shaped charges would be used to blow a small hole in each rail car. The vinyl chloride would then spill into a trench where flares would ignite and burn it away.

    As of 7 p.m., the flames were reduced and a small fire continues in the pit, Deutsch said at the news conference.

    It is “still an ongoing event so we just ask everybody to stay out,” the mayor said. “We have to wait to the fires die down.”

    An evacuation zone of 1 mile around the train’s crash site remains in place, Conaway said. Authorities will reassess the zone Tuesday morning, he added. “We really don’t have a time frame right now” for the return of residents, he said.

    A team from the Environmental Protection Agency will monitor the air and water quality in the area, officials said.

    The remaining fires will go out on their own and won’t be extinguished by crews, Deutsch said.

    The five cars from the train, which derailed in a fiery accident Friday, were hurling toxic fumes into the air and shooting deadly shrapnel as far as a mile away, officials said earlier.

    One rail car in particular had been a focus of concern because its malfunctioning safety valves had prevented the car from releasing the vinyl chloride inside, a Columbiana County Emergency Management Agency official and a Norfolk Southern spokesperson told CNN earlier Monday.

    Ahead of the controlled release, the evacuation zone surrounding the fiery derailment site expanded to two states, Ohio Gov. Mike DeWine said.

    DeWine and Pennsylvania Gov. Josh Shapiro had ordered evacuations for a 1-mile-by-2-mile area surrounding East Palestine, a village of about 5,000 people near the Pennsylvania border, DeWine said.

    This followed evacuations that took place just after the massive inferno began Friday night.

    According to East Palestine resident Eric Whiting, police knocked on his door about an hour after the derailment and asked the family to evacuate.

    “They told me they didn’t know anything yet, but they just needed us to evacuate,” Whiting told CNN.

    Officials begged residents for several days to leave the area as fears about air and water quality have mounted.

    Mayor Conaway said Monday he was “proud of the citizens” as everyone cleared out when officials went door-to-door and there were no arrests.

    Here’s the latest on the ground:

    • Police shift communications hub: The scene was so dangerous by Monday morning that the East Palestine Police Department had evacuated a communications center for safety reasons, a spokesperson told CNN by phone Monday. “911 service will not be affected,” the department posted online.

    • Schools are closed: The East Palestine City School District will be closed for the rest of the week, citing a local state of emergency.

    • A mechanical issue was detected: The crew was alerted by an alarm shortly before the derailment “indicating a mechanical issue,” a National Transportation Safety Board (NTSB) member said. An emergency brake was applied, but about 10 cars carrying hazardous materials derailed.

    Whiting, the East Palestine resident, said he, his wife and three children took nothing with them when they evacuated Friday.

    “We live right by the railroad, so we heard the train come to an abrupt stop. But by the time I got dressed to check out what was happening, I heard emergency vehicles rushing towards us,” Whiting told CNN on Monday.

    The family returned home Saturday and stayed overnight. But law enforcement officers knocked on the door Sunday morning telling them to leave due to the potential for an explosion.

    So, they packed up clothes for a few nights and, along with their dog, headed to a hotel 20 minutes away.

    An Ohio state trooper tells residents to evacuate Sunday in East Palestine, Ohio.

    “It’s difficult. I’m in a cheap motel because I’m afraid of how much they’ll be willing to reimburse me for. It’s hard to take my laptop out (to work) and focus when I’m worried about getting food for the family throughout the day,” Whiting said.

    He’s also worried what the environmental impact on East Palestine will be, he said.

    A “drastic change” was detected Sunday related to the vinyl chloride, Fire Chief Keith Drabick said.

    Breathing high levels of vinyl chloride can make someone pass out or die if they don’t get fresh air, the Ohio Department of Health said.

    The man-made chemical used to make PVC burns easily at room temperature; can cause dizziness, sleepiness and headaches; and has been linked to an increased risk of cancer in the liver, brain, lungs and blood.

    “If a water supply is contaminated, vinyl chloride can enter household air when the water is used for showering, cooking, or laundry,” the National Cancer Institute says.

    While air and water quality remained stable Sunday, “things can change at any moment,” James Justice of the EPA’s Emergency Response warned.

    According to the Centers for Disease Control and Prevention: “Vinyl chloride in water or soil evaporates rapidly if it is near the surface. Vinyl chloride in the air breaks down in a few days, resulting in the formation of several other chemicals including hydrochloric acid, formaldehyde, and carbon dioxide.”

    The agency also warns that liquid vinyl chloride that touches skin will numb it and produce redness and blisters.

    There was a mechanical failure warning before the crash, NTSB Member Michael Graham said Sunday. About 10 of 20 cars carrying hazardous materials – among more than 100 cars in all – derailed, the agency said.

    “The crew did receive an alarm from a wayside defect detector shortly before the derailment, indicating a mechanical issue,” Graham said. “Then an emergency brake application initiated.”

    Investigators also identified the point of derailment and found video showing “preliminary indications of mechanical issues” on one of the railcar axles, Graham said.

    NTSB is still investigating when the potential defect happened and the response from the crew, which included an engineer, conductor and conductor trainee, Graham added.

    Investigators have also requested records from Norfolk Southern, including track inspection records, locomotive and railcar inspections and maintenance records, train crew records and qualifications, Graham said.

    Rail travel is recognized as the safest method of transporting hazardous materials in the US, according to the US Department of Transportation’s Federal Railroad Administration.

    “The vast majority of hazardous materials shipped by rail tank car every year arrive safely and without incident, and railroads generally have an outstanding record in moving shipments of hazardous materials safely,” the administration said.

    [ad_2]

    Source link

  • Diesel prices fall in Europe despite ban on Russian fuel | CNN Business

    Diesel prices fall in Europe despite ban on Russian fuel | CNN Business

    [ad_1]


    London
    CNN
     — 

    Europe’s ban on Russia’s diesel arrived painlessly on Sunday.

    Although the EU cut off its biggest supplier, diesel futures prices in the bloc fell 1.6% on Monday, amounting to a 20% loss over the past two weeks as demand in the region has waned, and efforts by countries to stockpile ahead of the ban have started to pay off.

    The price drop will be met with relief by millions of the continent’s truckers, drivers and businesses that rely on diesel. About 96% of trucks, 91% of vans and 42% of passenger cars in the European Union run on the fuel, according to the European Automobile Manufacturers’ Association.

    “The expectation was that, when the ban came in, diesel supply into Europe would tighten but, actually, that’s currently not materializing,” Mark Williams, a research director at consultancy Wood Mackenzie, told CNN.

    The diesel ban comes two months after the bloc placed an embargo on seaborne crude oil imports from Russia, as part of a package of sanctions against Moscow for its invasion of Ukraine. Russia accounted for 29% of the region’s total diesel imports last year, data from Rystad Energy shows.

    Countries have prepared for the latest ban by ramping up imports of Moscow’s diesel in recent months. Europe’s imports were up nearly 19% in the fourth quarter of 2022 compared with the same period the previous year, according to energy data provider Vortexa.

    “Those stocks should act as a buffer against the immediate loss of Russian diesel imports,” Williams said.

    Demand across the bloc is also weak.

    Data from OilX, an oil analytics firm that, shows that diesel demand in Europe was down between the start of November and the end of January compared with the same period a year before.

    Analysts attribute the slump partly to warmer-than-usual weather in the region, where diesel is also used as a heating fuel, and high prices. Despite recent drops, wholesale prices are still 10% above their level the same time last year.

    At the pump, the average cost of a liter of diesel in the EU hit €1.80 ($1.93) on January 30, up from €1.60 ($1.72) the same time last year, data from the European Commission shows.

    Neil Crosby, a senior analyst at OilX, told CNN that “persistently weak demand data” in Europe had helped it “substantially boost its gasoil stocks over the last few months.”

    Still, it may take a few months for the full impact of the ban to be felt as Europe starts to import more diesel from suppliers further afield, incurring higher shipping costs.

    The bloc is already importing significantly higher volumes of diesel from the United States, the Middle East and parts of Asia, according to Williams at Wood Mackenzie.

    Even so, those imports will not be enough to “offset the loss of Russian barrels into Europe,” once Europe whittles down its stockpile, he said, adding that prices relative to other importing regions could start to rise from the third quarter this year.

    The impact of the ban on Russia may also be underwhelming.

    Moscow has managed to reroute more of its diesel to other markets since July of last year. Exports to Turkey and North Africa have soared 154% between November and January compared with the same period a year before, according to Rystad Energy.

    Jorge León, a senior vice president at the firm, sees this trend continuing, he told CNN, also predicting that Russian exports to South America are likely to stay at “marginal” levels.

    However, he added that the United States could redirect some of its current diesel exports to South America to Europe, with Russian diesel then “find[ing] a home” in South America.

    OilX’s Crosby noted that there are “many more” potential buyers of Moscow’s diesel compared with its crude exports.

    “Most Russian diesel barrels will manage to make it to global markets,” he said. “The notion that Russian diesel will have a very hard time finding new homes is beginning to lose credibility.”

    — Julia Horowitz contributed reporting.

    Correction: An earlier version of this article incorrectly reported the measurement of diesel that has fallen in Europe. Diesel demand has fallen.

    [ad_2]

    Source link

  • Ohio train continues burning days after derailment as officials say air, water quality remain safe for now | CNN

    Ohio train continues burning days after derailment as officials say air, water quality remain safe for now | CNN

    [ad_1]



    CNN
     — 

    Officials continued on Sunday to monitor the environmental impact caused by a derailed train carrying hazardous materials late Friday in East Palestine, Ohio, a crash that led to a large inferno that continues to burn, evacuations, a shelter-in-place order and concerns about air quality.

    Trent Conaway, the mayor of East Palestine, assured residents the air and drinking water remain safe after the Norfolk Southern train crash. He said classes at East Palestine schools would be canceled Monday, as would city meetings.

    The train derailed in East Palestine, about 15 miles south of Youngstown, Friday evening, according to earlier comments by officials. Of the more than 100 cars, about 20 were carrying hazardous materials, according to the National Transportation Safety Board, which is investigating the incident.

    Ten of those cars derailed, including five that were carrying vinyl chloride, the NTSB said in a statement Saturday. The agency said so far it had “not confirmed vinyl chloride has been released other than from the pressure release devices.”

    While air and water quality remained stable Sunday, and officials have yet to see abnormal levels in screenings, “things can change at any moment,” said James Justice, an on-scene coordinator with the EPA’s Emergency Response.

    Authorities continue to monitor for a “long list” of chemicals, he said – not only those provided to authorities in a list from Norfolk Southern, but also those that can result from combustion.

    Officials issued a shelter-in-place order for the entire town of roughly 5,000 people, and an evacuation order was issued for the area within a mile radius of the train crash near James Street.

    Both restrictions remained in place Sunday, Conaway said at a news conference. Fire Chief Keith Drabkick told reporters at the news conference the scene remained volatile, preventing authorities from conducting on-scene operations. Crews will not be able to determine the full list of chemicals involved until the fires stops burning, Drabkick said.

    Officials urged residents to follow the shelter-in-place orders. On Saturday evening, one person was arrested for misconduct after approaching the scene and getting too close to the train, the mayor said.

    “Please stay home. I can’t reiterate it enough,” Conaway said. “Do not come to our town.”

    The Ohio EPA is monitoring water quality in local streams, which eventually feed into the Ohio River, a spokesperson said, but the agency does not anticipate contamination to East Palestine’s public water system, which draws from other sources.

    The agency installed containment dams in area streams and set up three aeration locations using high volume pumps to treat water and remove dissolved contaminants.

    In an email to CNN Sunday morning, a spokesperson for Norfolk Southern deferred all questions to the NTSB.

    [ad_2]

    Source link

  • A vulnerable power grid is in the crosshairs of domestic extremist groups | CNN

    A vulnerable power grid is in the crosshairs of domestic extremist groups | CNN

    [ad_1]



    CNN
     — 

    Gunshots fired at two power substations in Moore County, North Carolina, late last year left 45,000 homes and businesses without power and more attacks just like that could already be planned by domestic extremist groups, according to experts.

    “All of a sudden, about 8:45 p.m., about 20 shots fired off right across the street,” Spencer Matthews told CNN affiliate WRAL shortly after the December attack.

    The gunfire hit critical parts of the substations and the power went out.

    “Got no way to heat because we don’t have a fireplace,” one woman told WRAL after her home was plunged into darkness.

    Investigators found nearly two dozen shell casings from a high-powered rifle near the substations, but so far have not found a gun or made any arrests.

    Experts say the two substation attacks could be the work of domestic extremists who have openly advocated targeting a vulnerable power system.

    The motive behind the December 3 attack is still not known, but it came after an FBI bulletin in November warned of threats by extremist groups to “create civil disorder and inspire further violence.”

    “This typically very primitive style attack equals millions of dollars in damage,” Brian Harrell, a former US Department of Homeland Security Assistant Secretary for Infrastructure Protection, told CNN. “If you were to shoot out some very key components you can quickly create an effect where this large multimillion dollar transformer becomes essentially a paperweight.”

    In 2022 there were 25 “actual physical attacks” reported on power facilities across the US and one report of “sabotage,” according to the latest statistics available from the Department of Energy.

    The data also shows 57 reports of suspicious activity, and 80 acts of vandalism.

    The numbers are mostly trending up, compared with 2021, when there were six actual physical attacks reported and two reports of sabotage. The data also shows 32 reports of suspicious activity, and 52 acts of vandalism.

    Many attacks remain unsolved.

    “There’s no doubt in my mind that 2023… is probably going to be the most catastrophic when it comes to the uptick of DVE (Domestic Violent Extremist) attacks on electricity infrastructure,” Harrell said. “A number of individuals and extremist groups online right now have already signaled that this is a part of their playbook.”

    One of those playbooks, with a swastika and lightning bolts on the cover, published on a social media platform by a neo-Nazi group, makes their aim quite clear.

    “The main thing that keeps the anti-White system going is the powergrid,” the document reads. “This is something that is easier than you think. Peppered all over the country are power distribution substations… Sitting ducks, worthy prey.”

    It’s part of a White-power philosophy called “accelerationism,” which wants to destroy society and replace it with one based on their racist ideologies.

    “With the power off, when the lights don’t come back on… all hell will break lose, [sic] making conditions desirable for our race to once again take back what is ours,” they write.

    The head of another accelerationist group posted on social media that these attackers have “cracked the code on lone wolf attacks.”

    The attacks “check off all the necessary boxes which I didn’t think possible for lone wolf ops in USA – Frequency, sustainability, geographic concentration,” he is quoted as saying. “Law enforcement appears powerless (no pun intended) to stop them.”

    These groups dream of striking exactly the right spots in the power grid, which government reports have warned for decades could cause a domino effect and leave huge parts of the country in the dark.

    “If you were to target, you know, eight or nine very key nodes throughout the United States, you potentially could have a collapsing effect,” Harrell warns.

    High voltage transmission power lines and substations are often spread across the country in out of the way places which can be hard to keep safe and technically challenging to secure.

    “It’s inherently very difficult to harden or protect it all,” Granger Morgan, an engineering professor at Carnegie Mellon University told CNN. “It may not take all that high tech an approach to cause physical disruption that could have very large consequences.”

    Morgan is the chair of the National Academy of Science’s committee on enhancing the resilience of the nation’s power system.

    “Physical attacks on major system components could cause serious physical damage, especially to large transformers and other hard to replace substation and transmission equipment such as high voltage circuit breakers,” one of his papers from 2017 warned. “Recovery could easily require many days or weeks.”

    Right now there is no central authority that regulates the entire power system, which, Morgan says, gets in the way of changes needed to make the system more robust and resilient from attack.

    Justice Department forms new domestic terrorism unit

    “No one at the moment has authority to deal with the entire system, and we need to get that situation fixed,” he said. “We’ve got the federal regulators overseeing the high voltage system that brings power across long distances. We’ve got state public utility commissions dealing with things at the state level, we got both private and public power.”

    Morgan said a presidential commission or other powerful political body needs to be appointed to take the lead in protecting the grid and making it more resilient to attacks.

    “We just need to get much more systematic in terms of figuring out both how we protect against it, but also how we can quickly put the system back together again, once a problem arises,” he said.

    [ad_2]

    Source link

  • US, EU, G7 and Australia announce new price cap on Russian petroleum products | CNN Politics

    US, EU, G7 and Australia announce new price cap on Russian petroleum products | CNN Politics

    [ad_1]



    CNN
     — 

    The US and allies are trying to further limit Russia’s ability to make money and finance its war efforts with new price limits on products like gasoline and fuel oil, a senior Treasury official announced Friday – adding to sanctions on Russian energy sales in response to the country’s invasion of Ukraine.

    “Our intent is not to crash the Russian economy,” the official told reporters Friday. “Our intent is to make it impossible for the Kremlin to continue to make the choice of propping up the economy and also paying for their war.”

    The agreement between the US, the G7, the European Union and Australia places a price cap on “seaborne Russian-origin petroleum products,” the US Department of Treasury said. There are two price levels: one applies to “premium-to-crude” petroleum products like diesel, kerosene and gasoline, which will be capped at $100 USD per barrel, and “discount-to-crude” petroleum products like fuel oil, which will be capped at $45 USD per barrel.

    “The thing that we’re focused on is cutting off the revenue,” the official said. “We’re also going after their military industrialized complex and supply chain so they can’t use the money they have to buy the weapons they need. Our approach to this is really to go after the things that are crucial to the Kremlin’s war effort and their ability to prop up their economy.”

    In December, the same group implemented a price cap on crude oil – which the Treasury official said was already impeding Russia’s ability to finance the war. They added Russia had “openly acknowledged” the price cap was hurting the country’s economy. Data released by Russia showed that monthly tax revenues from energy sales declined 46% from the month prior.

    Officials shrugged off reports that, despite numerous sanctions, Russia’s economy is still expected to rebound and may even outpace Germany and Great Britain. The senior Treasury official said economically, the country “doesn’t function any longer like a normal economy.”

    “They’ve shut it down largely, meaning that if you have money of Russia, they’ll let you keep putting money in Russia, but you can’t take money out. They no longer allow foreign capital coming into Russia,” the official said. “They’re needing to spend more money to prop up their economy because they become a closed economy.”

    The reality, the official said, is that Russia’s budget deficit is growing “because the war is costing them more money” because the “bravery of the Ukrainian people” and the “weapons” were a surprise to them.

    [ad_2]

    Source link

  • Shell profits double to record $40 billion | CNN Business

    Shell profits double to record $40 billion | CNN Business

    [ad_1]


    Hong Kong/London
    CNN
     — 

    Shell made a record profit of almost $40 billion in 2022, more than double what it raked in the previous year after oil and gas prices soared following Russia’s invasion of Ukraine.

    Europe’s largest oil company by revenue reported adjusted full-year earnings of $39.9 billion on Thursday — more than double the $19.3 billion it posted in 2021 — driven by a strong performance in its gas trading business. The company’s stock was up 1.7% in London.

    The company reported $9.8 billion in profit in the fourth quarter. Just over 40% of Shell’s full-year earnings came from its integrated gas business, which includes liquified natural gas trading operations.

    Shell CEO Wael Sawan said the results “demonstrate the strength of Shell’s differentiated portfolio, as well as our capacity to deliver vital energy to our customers in a volatile world.”

    The earnings are the latest in a series of record-setting results by the world’s biggest energy companies, which have enjoyed bumper profits off the back of soaring oil and gas prices.

    ExxonMobil this week posted record full-year earnings of $59.1 billion. Last month, Chevron

    (CVX)
    reported a record full-year profit of $36.5 billion.

    That has led to renewed calls for higher taxation. Governments in the European Union and the United Kingdom have already imposed windfall taxes on oil company profits, with the proceeds used to help households struggling with rising energy bills.

    Shell said it expected to pay an additional $2.3 billion in tax related to the EU windfall tax and the UK energy profits levy. The company paid $13 billion in tax globally in 2022.

    Shell

    (RDSA)
    also announced another $4 billion share buyback program and confirmed it would lift its dividend per share by 15% for the fourth quarter.

    This is a developing story and will be updated.

    [ad_2]

    Source link

  • Blackouts and soaring prices: Pakistan’s economy is on the brink | CNN Business

    Blackouts and soaring prices: Pakistan’s economy is on the brink | CNN Business

    [ad_1]


    Islamabad/London
    CNN
     — 

    Muhammad Radaqat, a 27-year-old greengrocer, is worried. He doesn’t know how much an onion will cost next week, let alone how he’ll be able to afford the fuel he needs to heat his home and keep his family warm.

    “All we’re being told by the government is that things are going to get worse,” Radaqat told CNN.

    His anxiety reflects the mood of a nation racing to ward off an economic meltdown. Faced with a shortage of US dollars, Pakistan only has enough foreign currency in its reserves to pay for three weeks of imports.

    Thousands of shipping containers are piling up at ports, and the cost of essentials like food and energy is skyrocketing. Long lines are forming at gas stations as prices swing wildly in the country of 220 million.

    A nationwide power outage last month made people even more alarmed. It brought Pakistan to a standstill, plunging residents into darkness, shutting down transit networks and forcing hospitals to rely on backup generators. Officials have not identified the cause of the blackout.

    Pressure is growing on Prime Minister Shehbaz Sharif’s government to unlock billions of dollars in emergency financing from the International Monetary Fund, which sent a delegation to the country this week for talks.

    Pakistan’s currency, the rupee, recently dropped to new lows against the US dollar after authorities eased currency controls to meet one of the IMF’s lending conditions. The government had been resisting the changes the IMF requested, such as easing fuel subsidies, since they would cause fresh price spikes in the short term.

    “We need the IMF agreement to go through as soon as possible for us to save the ship,” said Maha Rehman, an economist and the former head of analytics at the Centre for Economic Research in Pakistan.

    Pakistan is experiencing what economists call a balance-of-payments crisis. The country has been spending more on trade than it has brought in, running down its stock of foreign currency and weighing on the rupee’s value. These dynamics make interest payments on debt from foreign lenders even more expensive and push the cost of importing goods higher still, requiring even bigger drawdowns in reserves that compound the distress.

    The country is also grappling with rampant price increases. The country’s central bank has hiked its key interest rate to 17% in a bid to clamp down on annual consumer inflation of almost 28%.

    Some issues the country faces are specific to Pakistan. Political instability and efforts to prop up its currency, for example, have weighed on investment and exports, according to Tahir Abbas, head of investment research at Arif Habib, the country’s largest securities brokerage.

    Historic floods last summer have also led to huge bills for reconstruction and aid, adding to strains on the government budget. The World Bank has estimated that at least $16 billion is needed to cope with damage and losses.

    Pakistan's usually bustling ports, like this one in Karachi, have ground to a halt as the country grapples with a severe shortage of foreign currency.

    Yet global factors are making the situation worse. The economic slowdown has weighed on demand for Pakistan’s exports, while a sharp rally in the value of the US dollar last year piled pressure on countries that import significant volumes of food and fuel. Prices for these commodities had already spiked due to the pandemic and Russia’s war in Ukraine, requiring larger outlays.

    The IMF has warned repeatedly that this could stress vulnerable economies. While it forecasts that emerging market and developing economies will see a modest uptick in growth this year as the dollar comes off its highs, global inflation falls and China’s reopening spurs demand, the ability to manage debt loads remains a concern.

    It estimated this week that 15% of low-income countries are already in debt distress, while another 45% are at high risk of struggling to meet their obligations. An additional 25% of emerging market economies are also at high risk. Tunisia, Egypt and Ghana have all sought IMF bailouts worth billions of dollars in recent months.

    “The combination of high debt levels from the pandemic, lower growth and higher borrowing costs exacerbates the vulnerability of these economies, especially those with significant near-term dollar financing needs,” the IMF wrote in its world economic outlook this week.

    For Pakistan to avoid default, talks with the IMF to restart its stalled assistance program must succeed, according to investors and economists. The IMF’s delegation arrived on Tuesday and is set to stay through Feb. 9.

    “Availability of the IMF loan is critical,” said Ammar Habib Khan, a senior non-resident fellow at the Atlantic Council.

    But Farooq Tirmizi, the CEO of Elphinstone, a startup geared at Pakistani investors, said that even if the IMF program resumes, it won’t fix all the problems, since the main issues plaguing Pakistan are “not economic, but political, with a government in place that is not willing to make structural changes.”

    Pakistan’s economic crisis was at the center of a political showdown between Sharif and his predecessor, Imran Khan, last year. Khan was ousted by a no-confidence vote in April after Sharif accused him of economic mismanagement.

    The situation has remained turbulent since then. Pakistan has gone through three finance ministers in less than a year. The last two were part of the current government, raising questions about whether Sharif can hold onto power. The country is expected to hold a general election this summer.

    A woman checks rice prices at a wholesale market in Karachi, Pakistan.

    The tumult comes as Pakistan faces a fresh wave of attacks by militants. Earlier this week, a suicide bomb ripped through a mosque in the city of Peshawar, killing at least 100 people. It was one of the deadliest attacks in the country in years.

    People are suffering in the meantime. Farmers who lost cotton, date, sugar and rice crops to flooding still need help. The World Bank predicted in October that as many as nine million Pakistanis could be pushed into poverty without “decisive relief and recovery efforts to help the poor.”

    High inflation is only boosting pain for households struggling to make ends meet. Food prices in January rose 43% year over year, according to data released this week.

    Attention focused recently on a man in the southern province of Sindh who lost his life in a scramble to obtain a bag of subsidized flour handed out by local authorities. He was crushed to death by the crowd alongside him.

    [ad_2]

    Source link

  • The deadly ice storm crippling much of the South leaves more than 300,000 Texans without power in the frigid cold | CNN

    The deadly ice storm crippling much of the South leaves more than 300,000 Texans without power in the frigid cold | CNN

    [ad_1]



    CNN
     — 

    Treacherous road conditions are now linked to three deaths in Texas as a wave of ice and sleet continues to hammer parts of the southern and central US into the overnight hours.

    A 49-year-old woman was killed this week when she lost control of her truck on an icy road north of Eldorado, the Texas Department of Public Safety told CNN on Wednesday.

    Two other deaths were previously linked to the storm that coated Texas cities with sleet or ice. In south Austin, one person died Tuesday morning in a 10-car pileup, the city’s fire department said. Another person died when their car rolled over in the Dallas-area city of Arlington, police said.

    The dangerous conditions are not over. A nasty combination of freezing rain, sleet and accumulating ice are expected hit parts of Texas, Arkansas and Tennessee through at least Thursday morning, forecasters said.

    “Road conditions will be AWFUL after sunset and overnight,” the National Weather Service in Fort Worth said. “DO NOT BE ON THE ROADS.”

    More than an inch of sleet has already piled up in parts of Texas, Oklahoma, Arkansas, Missouri, Kentucky and Illinois since Monday.

    In Texas alone, more than 350,000 homes, businesses and other power customers had no electricity in the frigid cold Wednesday night, according to PowerOutage.US.

    Ice brought down multiple trees and large tree limbs Wednesday, causing power outages across the Austin metro area, the National Weather Service said.

    Dangerous conditions prompted Parkland Health system in Dallas to extend the closure of its clinics on Thursday.

    Here’s what’s on tap in the southern and central US:

    • Texas: The state has seen heavy freezing rain throughout Wednesday, which will continue steadily into overnight across much of northern and central Texas as temperatures remain below freezing.

    • Southern Oklahoma: Freezing rain continues to move across the region and will last through Thursday morning.

    • South-central Arkansas and Tennessee’s Memphis area: An additional tenth- to quarter-inch of ice could pile up through Thursday morning.

    • Across the region: Total ice accumulation of at least a quarter of an inch is likely from West Texas to western Tennessee through Thursday morning. Up to a half-inch could build up in parts of central and north-central Texas and southern Arkansas, the National Weather Service said.

    • Widespread flight cancellations: More than 2,400 flights within, into or out of the US were canceled Wednesday, according to the tracking website FlightAware.

    Jackknifed tractor-trailers blocked Interstate 10 in Reeves County, Texas, on Tuesday.

    In a state not accustomed to heavy ice, a group of Jeep enthusiasts used their vehicles to help stranded drivers.

    The Dallas-based “Carnales Off Road” group regularly supports those in need, founder Jorge Coronilla Muñiz told CNN.

    “It’s not the first time we’ve done this during bad weather. We try to help as often as possible,” Muñiz said.

    Several semi-trucks got stuck on Interstate 20 on Tuesday, and about 30 Jeeps helped tow them.

    “Before we got to I-20, we also helped a few other cars who were stuck on the streets,” Muniz said. “We eventually came across the standstill on Interstate 20 and helped an additional 20 trucks.”

    Muñiz said he and other group members helped stranded motorists from early Tuesday morning all the way until 10 p.m.

    “Everyone was very grateful for our help, especially the truck drivers. Some even asked if we were going to charge them for the help, but we told them we were just there to help.”

    The group is back out on the roads Wednesday and will help medical professionals having difficulty getting to and from work, Muñiz said.

    More than 12 million people across parts of southeastern Oklahoma, southern Missouri, central and eastern Arkansas, western Tennessee, northwestern Mississippi and Texas are under ice storm warnings Wednesday.

    The weather service issues ice storm warnings when ice accumulations of more than a quarter of an inch are possible.

    Unsafe travel conditions Tuesday led to hundreds of car crashes across Texas, officials said. Emergency workers responded to people suffering from hypothermia or those injured after slipping on ice. The Texas National Guard is prepared to help stranded motorists, clear roadways and provide welfare checks, Gov. Greg Abbott said. And Texas Parks and Wildlife has at least 30 responders ready for search and rescue operations.

    Meanwhile, a separate storm system will also send temperatures plunging across the Northeast.

    The National Weather Service predicts “dangerously cold temperatures” in the region Friday and Saturday, with freezing cold wind chills that can cause frostbite in just 10 minutes, it said.

    “Limit time outdoors and cover all skin if going out,” the service added.

    The service forecasts wind chills of -20 to -35 degrees Fahrenheit early Friday affecting parts of New York, Vermont, New Hampshire and Maine, while Saturday morning could bring wind chills of -60 degrees Fahrenheit across northern New England, the weather service said.

    Leaders across states including Rhode Island, Connecticut and Maine were coordinating resources ahead of the extreme weather and setting up warming centers, according to messages from the governors.

    “Temperatures this weekend will be extremely – and dangerously – cold across the state,” Maine Gov. Janet Mills said in a Tuesday news release. “Please take extra precautions, be careful if you go outside, and be sure to check on your family, friends, and neighbors to make sure they are okay.”

    [ad_2]

    Source link

  • Biden administration takes another step toward advancing a controversial oil drilling project in Alaska | CNN Politics

    Biden administration takes another step toward advancing a controversial oil drilling project in Alaska | CNN Politics

    [ad_1]



    CNN
     — 

    The Interior Department’s Bureau of Land Management on Wednesday advanced the controversial Willow oil drilling project on Alaska’s North Slope, releasing the final environmental impact statement before the project can be approved.

    The ConocoPhillips proposed Willow drilling plan is a massive and decadeslong project that the state’s bipartisan Congressional delegation says will create much-needed jobs for Alaskans and boost domestic energy production in the US.

    But environmental groups fear the impact of the planet-warming carbon pollution from the hundreds of millions of barrels of oil it would produce – and say it will deal a significant blow to President Joe Biden’s ambitious climate agenda.

    The final environmental report from the Bureau of Land Management recommends a slightly smaller version of what ConocoPhillips originally proposed, putting the number of drilling sites at three instead of five. The Department of Interior is also recommending other measures to try to lower the pollution of the project, and recommending a smaller footprint of gravel roads and pipelines.

    In a statement, the Interior Department said it “has substantial concerns about the Willow project and the preferred alternative as presented in the final SEIS, including direct and indirect greenhouse gas emissions and impacts to wildlife and Alaska Native subsistence.”

    The Biden administration now has 30 days to issue a final decision on the project, after which drilling could begin. In its statement, Interior said it could select a different alternative on the project, including taking no action or further reducing the number of drill sites.

    ConocoPhillips and members of the Alaska Congressional delegation have been pushing the administration to finalize the project by the end of February to take advantage of cold and icy conditions needed to drill in the Arctic. If the company misses that window, it could push the project’s start date to next year.

    Erec Isaacson, president of ConocoPhillips Alaska, said in a statement that nearly five years of regulatory review should conclude “without delay.” Isaacson added the project is “ready to begin construction immediately” after Interior’s final decision is issued.

    According to the Interior Department’s own estimation, the project would produce 629 million barrels of oil over the course of 30 years and would release around 278 million metric tons of planet-warming carbon emissions. Climate groups say that’s equivalent to what 76 coal-fired power plants produce every year.

    “The world and the country can’t afford to develop that oil,” said Jeremy Lieb, a senior attorney for environmental law firm Earthjustice. Lieb and other advocates are concerned that Willow may be the start of a future drilling boom in the area.

    “Willow is just the start based on what industry has planned,” Lieb said. “The total estimate for the amount of oil that could be accessible in the region around Willow is 7 or 8 billion barrels.”

    For the Willow project, ConocoPhillips is proposing five drilling sites on federal land in Alaska’s North Slope, and the project would include a processing facility, pipelines to transport oil, gravel roads, at least one airstrip and a gravel mine site.

    The project – and the public comment process leading up to it – has also received heavy criticism from the nearby Alaska Native village of Nuiqsut, which some villagers evacuated last year during a gas leak in a ConocoPhillips project in the area. Nuiqsut officials recently released a letter calling the Bureau of Land Management’s public input process “disappointing and inadequate,” criticizing both the Trump and Biden administration’s timeline.

    The bureau’s “engagement with us is consistently focused on how to allow projects to go forward; how to permit the continuous expansion and concentration of oil and gas activity on our traditional lands,” Nuiqsut officials wrote in their letter.

    Alaska’s entire Congressional delegation – including newly elected Rep. Mary Peltola, a Democrat – have urged the White House and Interior to approve the project, saying it would be a huge boost to state’s economy.

    Sen. Lisa Murkowski, in particular, has been urging the White House and Biden personally to greenlight Willow, she told CNN.

    “I’ve been pretty persistent on this,” she told CNN in an interview this summer. “Let’s just say, any conversation I’ve ever had with the White House, anyone close to the White House, I’ve brought up the subject of Willow.”

    As gas prices spiked last summer, Murkowski, Sen. Joe Manchin of West Virginia, a Democrat, and other Senate Republicans tightened the pressure on Biden to approve a major domestic oil drilling project. Environmental advocates, meanwhile, argued the project will not bring US gas prices down any time soon, as the infrastructure will take years to build.

    “When you think about those things that should be teed up and ready to go, this is one where in my view there’s really no excuse for why we should see further delay,” Murkowski said. “This is something that’s been in the works that’s gone through so much process, across multiple administrations.”

    This story has been updated with more information.

    [ad_2]

    Source link

  • California floated cutting major Southwest cities off Colorado River water before touching its agriculture supply, sources say | CNN

    California floated cutting major Southwest cities off Colorado River water before touching its agriculture supply, sources say | CNN

    [ad_1]



    CNN
     — 

    In a closed-door negotiation last week over the fate of the Colorado River, representatives from California’s powerful water districts proposed modeling what the basin’s future would look like if some of the West’s biggest cities – including Phoenix and Las Vegas – were cut off from the river’s water supply, three people familiar with the talks told CNN.

    More than 5 million people in Arizona are served by Colorado River water, which accounts for 40% of Phoenix’s supply. Around 90% of Las Vegas’ water is from the river.

    The proposal came in a session between states that was focused on achieving unprecedented water cuts to save the Colorado River – a system that overall provides water and electricity to more than 40 million people in the West. For months, seven states have been trying to come up with cuts to keep the river system from crashing.

    As the river shrinks, talks to save it are increasingly pitting the longstanding senior water rights of farmers against explosive metropolitan growth.

    California was proposing following the “law of the river,” which gives farmers in major agricultural districts first dibs on water because they have a priority claim established before other districts’ rights – including Californian cities like Los Angeles, which receives around half of its water from the Colorado River.

    The eye-popping suggestion was met with strong and immediate pushback from other state officials at the negotiating table, the people familiar with the discussions said.

    John Enstminger, the general manager for the Southern Nevada Water Authority who was not present at this particular session, told CNN the proposal was a major concern for public health and safety in Western cities.

    “If you want to model cutting off most or all of the water supply of 27 million Americans, you can go through the exercise but implementing that on the ground would have the direst consequence for almost 10% of the country,” Entsminger said.

    Arizona’s top water official, Tom Buschatzke, wouldn’t comment on the closed-door discussion. But he told CNN Arizona officials would not contemplate entirely cutting their biggest cities and Native American tribes off Colorado River water.

    “I would not, even under a modeling scenario, agree or ask the federal government to model a scenario in which the Central Arizona Project goes to zero,” Buschatzke said. “I will not do that. The implications would be pretty severe if CAP went to zero. Severe for tribes, severe for cities, severe for industries.”

    One source familiar with the meeting disputed that California asked to model cutting other agencies and cities all the way to zero but stipulated that if California was to compromise to other states’ demands, it also wanted to see one of the options follow the river’s current strict priority system “as the default baseline.”

    US Bureau of Reclamation Commissioner Camille Touton last year called on the basin’s seven states – California, Arizona, Nevada, New Mexico, Colorado, Utah and Wyoming – to figure out how to cut 2 to 4 million acre-feet of usage, or as much as 30% of their river water allocation. She vowed the federal government would step in if an agreement couldn’t be reached.

    The question is who bears the brunt of the unprecedented cuts needed to keep Colorado River flowing into America’s largest reservoirs. If the feds take a heavy hand, it could set the stage for a tense legal battle – all while the nation’s largest reservoirs continue to decline.

    Arizona’s perspective is that it thinks California will let them “dry up and blow away,” one source familiar with the meeting told CNN. California’s perspective, the source added, is: “We fought for a century to preserve our super-priority, why should we give it up now?”

    After six other Colorado River basin states released a proposal for water cuts on Monday, California’s water agencies presented a separate and more modest plan to federal officials on Tuesday.

    The state is proposing to conserve 400,000 additional acre-feet of water – around 130 billion gallons – per year from 2023 to 2026, according to the plan. Overall, it is seeking lower basin reductions of around 1 million acre-feet per year, with California contributing 400,000 acre-feet, Arizona contributing 560,000 acre-feet and Nevada contributing 40,000 acre-feet.

    It’s nearly identical to the plan the state proposed in October, and is less than 10% of the state’s water allocation. California receives the largest Colorado River allocation out of all the basin states.

    ‘Genuinely worried’: Why researcher fears Lake Mead could hit dead pool

    California’s proposal would kick in if Lake Mead reached an elevation of 1,000 feet and Lake Powell an elevation of 3,500 feet – precariously close to those reservoirs’ “dead pool” levels, when water is so low it will no longer flow through the dams.

    California’s proposal mentions “increasing cutbacks” if Lake Mead elevations further decline, but does not specify by how much.

    California’s plan “provides a realistic and implementable framework” that builds “on voluntary agreements and past collaborative efforts in order to minimize implementation delays,” JB Hamby, chair of the Colorado River Board for the state and an Imperial Irrigation District board member, said in a statement.

    Adel Hagekhalil, the general manager of the Metropolitan Water District of Southern California, said in a statement the state was committed to cuts, but in “a way that does not harm half of the people who rely on the river – the 19 million people of Southern California.”

    “We must do it in a way that does not devastate our $1.6 trillion economy, an economic engine for the entire United States,” Hagekhalil said. “The proposal presented today by California does all of this by equitably sharing the risk among Basin states without adversely affecting any one agency or state. The plan presented yesterday, which shut out California, does not.”

    California’s proposal is less than the plan proposed on Monday by the six other basin states, which maxes out at 3.1 million acre-feet per year. That six-state model also accounted for the water lost to evaporation and leaky river infrastructure.

    The six-state plan also proposes being activated if Lake Mead levels are around 1,050 feet. Lake Mead is currently around 1,047 feet and had dropped to as low as 1,040 feet last summer.

    Multiple states told CNN that they are going to try to continue to get an agreement everyone can support, while acknowledging talks so far have been difficult.

    “We’re committed to continuing to work collectively as seven basin states,” said Chuck Cullom, executive director of the Upper Colorado River Commission.

    Buschatzke, Arizona’s top water official, called the six-state proposal a “very positive outcome” and said he and others would try to keep conversations going with California.

    “I’m committed to continuing to work with all seven states,” Buschatzke said, adding additional conversations and negotiations would continue “over the next few months.”

    Still, the breakdown in agreement between California and the rest of the Colorado River Basin increases the prospect for federal officials to introduce their own cuts in the coming months. Buschatzke told CNN federal officials have not shared much with the states on what number of cuts they’re targeting.

    “They haven’t shared with us any cumulative ballpark,” he said. “I believe it’s imperative we know the ballpark at least, and eventually the specific number, because it will be less of a gap to close on the necessary reductions.”

    Correction: This story has been updated to correct the figures in California’s proposal for water cuts.

    [ad_2]

    Source link

  • ExxonMobil earnings more than double to annual record | CNN Business

    ExxonMobil earnings more than double to annual record | CNN Business

    [ad_1]


    New York
    CNN Business
     — 

    ExxonMobil’s earnings slowed from a peak earlier in the year but the oil giant still reached a full-year record profit more than double what it reported a year ago.

    The company earned adjusted income of $14 billion in the quarter, down from the record $18.7 billion it earned in the third quarter, but it was up from $8.8 billion in the fourth quarter of 2021. That was also better than the forecast from analysts surveyed by Refinitiv.

    The solid fourth quarter lifted full-year earnings to $59.1 billion from $23 billion in 2021, and well above the previous record net income of $45.2 billion it reported for 2008, the year that saw the record high for oil and US gasoline prices before the records set last year.

    The company was helped by soaring oil prices following Russia’s invasion of Ukraine nearly a year ago. But oil prices have been coming down from the peak reached in June, and are now down to pre-invasion levels.

    Oil companies such as ExxonMobil have faced criticism from the White House and some members of Congress for taking much of the profit and using it to repurchase shares and increase dividend, rather than increase production.

    CEO Darren Woods defended the company’s investments in production, saying the company’s North American refineries had their greatest output ever, and that it had its highest global refinery production since 2012.

    “Our results clearly benefited from a favorable market,” said Woods. “But, to take full advantage of the undersupplied market our work began years ago, well before the pandemic when we chose to invest counter-cyclically. We leaned in when others leaned out, bucking conventional wisdom. We continued with these investments through the pandemic and into today.”

    Still, the company returned $29.8 billion to shareholders during the year, with about half of it coming through dividends and half through share repurchases.

    That compares to $22.4 billion in spending on exploration and other capital spending. It also reported a $22.8 billion, or 336%, increase in cash on hand, ending the year with $29.6 billion in cash on its balance sheet. And it repaid $7 billion in debt.

    The full-year results come to an average of $1,874 of profit for every second during the course of the year. Since it takes about two minutes to pump 20 gallons of gas, that means that in the time it takes to fill a nearly empty tank of a full-size SUV or pickup, ExxonMobil earned about $225,000, on average.

    Shares of ExxonMobil were slightly lower in premarket trading initially after the report, perhaps on investor disappointment that no new share repurchase program was announced. But shares were slightly higher in morning trading after the open.

    [ad_2]

    Source link

  • Dead chickens and decomposing bodies: Inside South Africa’s power blackout ‘pandemic’ | CNN

    Dead chickens and decomposing bodies: Inside South Africa’s power blackout ‘pandemic’ | CNN

    [ad_1]


    Johannesburg, South Africa
    CNN
     — 

    Car crashes, opportunistic criminals, rotting food, decomposing bodies, bankrupt businesses, and water shortages. Welcome to life under South Africa’s power blackouts.

    Last week the grim extent of the outages was laid bare when South Africans were advised to bury dead loved ones within four days.

    In a public statement, the South African Funeral Practitioners Association warned that bodies in mortuaries were rapidly decomposing because of the unrelenting electricity outages, putting huge pressure on funeral parlors struggling to process corpses.

    The situation is so bad that the country’s President Cyril Ramaphosa is considering declaring a national disaster, similar to one in 2020 at the height of the Covid pandemic, which had a devastating effect on the country’s economy.

    Last week scores of supporters from the Democratic Alliance opposition party marched under heavy security through the streets of Johannesburg and Cape Town to voice their frustrations over the persistent blackouts.

    Known locally as loadshedding, widespread electricity blackouts are carried out multiple times a day by state-owned energy utility Eskom to avoid the total collapse of the grid.

    Shortages on the electricity system unbalance the network, and Eskom has stated that controlled outages are necessary to ensure reserve margins are maintained, and the system remains stable.

    While the country has been experiencing on-off power outages for years, since September 2022 scheduled blackouts have become routine, affecting every part of South African society.

    For some people, not having access to reliable power can be the difference between life and death.

    Before she died in October 2022, Lis Van Os needed oxygen for 17 hours a day. Her stationary oxygen machine required mains power, making periods of loadshedding extremely stressful, particularly when power did not return as scheduled, her family said.

    Her daughter Karin McDonald was forced to explore backup options such as inverters and a back up oxygen mobile tank, which only lasted short periods.

    “Towards the end (of her life) power outages created a lot of anxiety for everyone,” she said.

    South Africans experienced more than twice as many power cuts in 2022 than in any other year. And things are set to get worse in 2023.

    Even simple daily tasks need to be arranged around loadshedding schedules, including meal planning, travel times, work that requires internet connectivity.

    From preparing baby formula to keeping fans running during the summer heat, not having access to mains power is makes daily life challenging for South Africans.

    Maneo Motsamai, a domestic worker in Johannesburg, says the outages prevents her from simple tasks such as cooking.

    “I boil water to cook mealie meal (maize porridge) and the power goes. I can’t eat, it’s a waste. I can’t cope like that,” Motsamai told CNN.

    Pump stations can’t provide water and many small businesses without access to backup power are having to close shop and lay off employees, according to people CNN spoke to.

    Thando Makhubu runs Soweto Creamery, an ice cream shop in Jabulani, Soweto, on the outskirts of Johannesburg. His family pooled small welfare grants they received during the Covid-19 pandemic to set up the business, but are now feeling the pressure from power outages.

    In early January, the shop was without power for 72 hours, when electricity did not return as scheduled. Thando was forced to shell out money for diesel to power their generator and prevent all his stock melting. He says the outages are costly and destroying their hopes of expanding.

    Bongi Monjanaga, who runs a startup cleaning services company operating across Johannesburg, says the outages affect every part of her fledgling business, such as operating electric cleaning equipment, entering and leaving premises when security gates aren’t functioning, and having internet to invoice clients and complete online tax compliance documents.

    “I find myself in this pool of misery when I’m just trying to start up. I’m just trying to grow,” she says.

    The escalation of power outages is also deeply worrying for South Africa’s food security, driving up prices, and placing an even greater strain on stretched household budgets.

    With modern farming practices ever more reliant on electricity for crop irrigation, processing, and storage, loadshedding is having a huge impact on agricultural output.

    Gys Olivier, a farmer from Hertzogville in Free State province, in east-central South Africa, says he and other farmers in the area have been forced to throw away hundreds of thousands of dollars worth of seed potatoes due to disruptions to the ‘cold chain’ – (the process of keeping produce refrigerated throughout the supply chain.)

    There is also less demand from growers due to water shortages, with pump stations reliant on electricity to operate.

    Protests against power blackouts in South Africa

    “We have done everything we can to make sure there is food on the table for a very good price, but it’s become so capital-intensive to farm,” Olivier says.

    Meanwhile livestock and poultry are dying before they even get to the slaughterhouse.

    A gruesome video circulating on social media shows workers removing 50,000 dead broiler chickens from a farm in North West province, the birds suffocated when power outages caused ventilation systems to stop. The financial damage to the farmer was around ZAR1.6m ($93,300) according to local media reports.

    South Africa is notorious for high crime rates, and loadshedding is making it worse as home security systems fail when the power goes out, giving criminals a field day inside unsecured properties.
    Policing also becomes harder, with officers unable to reach crime scenes fast enough due to congestion when traffic lights are off.

    Tumelo Mogodiseng, General Secretary of the South African Policing Union (SAPU), describes the load-shedding as “a pandemic.”

    He says his members’ lives are now more at risk, with officers unable to see potentially dangerous situations in the darkness, and police stations, many of which don’t have backup power systems, at risk of attack from criminals during blackouts.

    “Police are dying every day in this country. If this is happening in the daylight, what happens when there is no light for them to see at night?”

    Mogodiseng also worries that crimes are going unreported, with citizens fearful of leaving their houses during outages and traveling in the darkness. “Communities won’t travel to police stations to open cases because they are afraid,” he told CNN.

    Gareth Newham, who runs the Justice and Violence Prevention Programme at the Institute for Security Studies (ISS) in Pretoria, says that it’s hard to get solid data on the impact outages are having on crime. While anecdotal evidence suggests criminals are exploiting outages, the recent escalation of loadshedding has coincided with the Christmas holidays, when crime rates typically spike.

    His biggest concern is that continued loadshedding or a temporary grid collapse could lead to a repeat of the coordinated civil unrest, rioting, and looting in parts of South Africa’s KwaZulu-Natal and Gauteng provinces 18 months ago.

    “A complete breakdown in the grid could be the trigger for local level gangs getting more power, and we could see a similar kind of violence to that we saw in July 2021.”

    Under the ruling African National Congress (ANC), in charge since 1994, Eskom has become synonymous with corruption, crime, and mismanagement.

    Last year a judge-led inquiry into graft under the former president, Jacob Zuma, found that there were grounds to prosecute several former Eskom executives.

    The government has failed to build new power stations to keep up with increased demand, and warnings from energy experts on looming supply shortages across the past two decades have gone ignored.

    A 2019 report by the South African Institution of Civil Engineering shows skilled engineers have been leaving the country in droves.

    Despite spending billions of USD on two huge coal power stations, neither works properly.

    Older plants are dilapidated due to a lack of maintenance, and organized crime steals vital coal supplies and cable from the rail lines going from mines to power stations.

    South Africa's opposition party Democratic Alliance protests onto headquarters of ruling ANC against power blackouts in the country

    Renewable energy companies say they are desperate to supply to the grid, but the government has been slow to cut red tape and streamline regulatory processes that would reduce the time frame for environmental authorisations, registration of new projects and grid connection approvals.

    Legal challenges against the government and Eskom are stacking up. Several political parties and trade unions say they will take the government and state utility to court for not upholding their duty to provide electricity.

    With no end in sight to the outages, South Africans are desperate for alternative energy sources, but even they are out of the reach of many citizens.

    Thando Makhubu says he was shocked by the cost to power his ice cream business off-grid. “We were quoted R100,000 ($5,945) and that excluded the solar panels.”

    Karin McDonald, who runs a swimming school, similarly found the upfront costs of solar prohibitive. “We received quotes for solar for the business and house and were not looking at anything less than half a million rand ($29,500) which is a major life decision to make,” she said.

    There is also a long wait for solar. “I know a solar provider that had 40 requests just last week, all for big solar projects, ” said Angus Williamson, a cattle farmer from KwaZulu-Natal province.

    As they come to terms with their new reality, many South Africans are finding it hard to stay optimistic.

    “The light at the end of the tunnel is a train heading in our direction,” said Williamson.

    [ad_2]

    Source link

  • Here’s why you should always wait for the earnings call | CNN Business

    Here’s why you should always wait for the earnings call | CNN Business

    [ad_1]

    A version of this story first appeared in CNN Business’ Before the Bell newsletter. Not a subscriber? You can sign up right here. You can listen to an audio version of the newsletter by clicking the same link.


    New York
    CNN
     — 

    Investors are pretty bad at living in the moment. We’re currently in the thick of fourth quarter earnings reports, but traders don’t seem to care about how companies fared during the final months of 2022. They’re more focused on what’s going to happen in the future.

    Case-in-point: Earnings calls, where top execs pontificate about their economic outlook, have been moving markets more than earnings-per-share and revenue reports.

    What’s happening: The mantra on Wall Street has become, as Ritholtz Wealth Management CEO Josh Brown puts it, “ignore the numbers, wait for the call.”

    Microsoft reported great fourth quarter earnings last Tuesday that beat Wall Street’s expectations, but the stock dropped 4% the next day. That’s because CEO Satya Nadella got on an earnings call with investors and warned of a slowdown in the company’s cloud business and software sales. His negative outlook came just as the company announced it was letting go of 10,000 employees, further spooking investors. 

    Other tech companies are following suit — while things are fine for the time being, they’re reporting that the future is foggy.

    IBM stock sank 4.5% last Thursday even as the tech titan beat Wall Street’s Q4 expectations. The reason for the drop might be because Jim Kavanaugh, IBM’s finance chief, warned on the conference call that it would be wise to expect the company’s total 2023 revenue growth to be on the low end. IBM also announced layoffs – the company said it plans to cut around 3,900 jobs or 1.5% of its total workforce. 

    The economic environment is rapidly changing. CEOs on earnings calls are talking more about recession than inflation now, according to an analysis by Purpose Investments.

    Wall Street is also beginning to fear an economic downturn more than painful rate hikes and as a result investors are putting more weight on CEO and CFO forecasts.

    And they’re looking bleak. As of Friday, 19 companies in the S&P 500 had issued forward earnings-per-share guidance for the first quarter of 2023, according to FactSet data. Of these 19 companies, 17, or 89%, issued negative guidance. That’s well above the 5-year average of 59%.

    “My best guess is that cautious tones on conference calls will be the norm, not the exception,” wrote Brown in a recent post. These slowdowns have been partially factored into stock prices, he said, “but not necessarily in full.”

    The upside: Market reaction appears to go both ways. American Express missed on earnings last week but said that credit card spending was hitting new records and that the future looks bright. The stock shot up more than 10%. 

    Prices at the pump typically fall during the coldest months as wintry weather keeps Americans off the roads. But something unusual is happening this year, reports my colleague Matt Egan. Gas prices are rocketing higher.

    The national average for regular gas jumped to $3.51 a gallon on Friday and remained there through the weekend, according to AAA. Although that’s a far cry from the record of $5.02 a gallon last June, gas prices have increased by 12 cents in the past week and 41 cents in the past month.

    All told, the national average has climbed by more than 9% since the end of last year – the biggest increase to start a year since 2009, according to Bespoke Investment Group.

    Why are gas prices jumping? It’s not because of demand, which remains weak, even for this time of the year. Instead, the problem is supply.

    The extreme weather in much of the United States near the end of last year caused a series of outages at the refineries that produce the gasoline, jet fuel and diesel that keep the economy humming. US refineries are operating at just 86% of capacity, down from the mid-90% range at the start of December, according to Bespoke.

    Beyond the refinery problems, oil prices have crept higher, helping to drive prices at the pump northward. US oil prices have jumped about 16% since December partially due to expectations of higher worldwide demand as China relaxes its Covid-19 policies and also because oil markets are no longer receiving massive injections of emergency barrels from the Strategic Petroleum Reserve.

    What’s next: Expect more pain at the pump. Patrick De Haan, head of petroleum analysis at GasBuddy, worries the typical springtime jump in prices will be pulled forward.

    “Instead of $4 a gallon happening in May, it could happen as early as March,” De Haan told CNN. “There is more upside risk than downside risk.”

    A return of $4 gas would be painful to drivers and could dent consumer confidence. Moreover, pain at the pump would complicate the inflation picture as the Federal Reserve debates whether to slow its interest rate hiking campaign.

    Goldman Sachs had a rough time in 2022, and the investment bank’s CEO, David Solomon, is being punished for it. Well, kind of. 

    The investment banking giant said in a Securities and Exchange Commission filing Friday that Solomon received $25 million in annual compensation last year. While that is still a very large amount of money, it’s down nearly 30% from the $35 million that Solomon raked in during 2021, reports my colleague Paul R. La Monica

    Solomon’s $2 million annual salary is unchanged. But the company said that his “annual variable compensation,” paid in a mix of performance-based restricted stock units and cash, was well below 2021 levels.

    Goldman Sachs (GS) shares fell more than 10% in 2022. The company also  reported a 16% drop in revenue in the fourth quarter and profit plunge of 66% earlier this month, mainly due to the lack of merger activity and initial public offerings.

    Maybe Solomon can make that extra $10 million with payouts from his burgeoning DJ career

    [ad_2]

    Source link

  • Chevron earnings soar to a record | CNN Business

    Chevron earnings soar to a record | CNN Business

    [ad_1]


    New York
    CNN
     — 

    Chevron reported a record full-year profit of $36.5 billion, buoyed by high oil prices.

    Adjusted earnings for the year more than doubled from the $15.6 billion Chevron earned in 2021 and up 36% from its previous record profit set in 2011.

    The oil company’s fourth-quarter earnings came in at $7.9 billion, up 61% from a year earlier but less than the record quarterly income of $11.4 billion it reported for the second quarter.

    The fourth quarter earnings per share of $4.09 fell short of the forecast of $4.38 a share from analysts surveyed by Refinitiv. But revenue in the quarter of $56.5 billion topped forecasts by nearly $2 billion and was up 17% from a year earlier.

    Full-year revenue of $246.3 billion was up 52% from 2021.

    Shares of Chevron

    (CVX)
    were down slightly more than 1% in premarket trading.

    Ahead of Friday’s report Chevron, the nation’s second largest oil company, behind only ExxonMobil, had announced it was hiking its dividend by 6% along with a massive $75 billion share repurchase plan. The decision brought criticism from those who said oil companies should be investing their money in producing more oil and gasoline to increase supply and drive down prices for inflation-weary drivers.

    “For a company that claimed not too long ago that it was ‘working hard’ to increase oil production, handing out $75 billion to executives and wealthy shareholders sure is an odd way to show it,” said Abdullah Hasan, assistant press secretary at the White House, in a tweet Wednesday evening after the share repurchase was announced.

    Chevron said Friday its investments in operations increased by more than 75% from 2021, and annual US production increased to the equivalent of 1.2 million barrels of oil a day.

    The amount it spent on capital spending and exploration in 2022 was $12.3 billion, up 43% compared with $8.6 billion spent in 2021, but only slightly more than the $11 billion it spent on dividends or the $11.3 billion on share repurchases during the year.

    The record profit came primarily from the soaring oil prices during the year, not its increased production.

    Chevron and other major oil companies all benefited from the spike in oil and gasoline prices during 2022, in the wake of Russia’s invasion of Ukraine. While Russia, one of the world’s leading oil exporters, sent relatively little oil to the United States, sanctions placed on Russia following the invasion roiled global commodity prices which set the price of oil.

    Futures for a barrel of Brent crude oil, the global benchmark, hit a record of $123.58 close in early June, up more than 50% from six months earlier ahead of the war, and the average price of a gallon of regular gas in the United States broke the $5 mark a week later to reach a record $5.03.

    But oil and gas prices have fallen substantially since then. Brent closed Thursday at $87.47, slightly below the year-earlier level, while the average price of a gallon of regular gas stands at $3.51 a gallon, only slightly higher from the $3.35 average of a year ago.

    But prices have started to rise once again, partly because Covid lockdown rules in China have been lifted. Traders believe that’s a bullish sign for global demand for oil and gasoline. Refinery problems caused by winter weather are also pushing prices higher.

    The average US price of a gallon of regular gasoline is up nearly 12 cents in just the last week and up 41 cents, or 13%, in the last month. Brent oil is up 12% in the last three weeks.

    [ad_2]

    Source link

  • Thousands without power after reported tornadoes strike Texas and Louisiana communities as storm continues to threaten South, Midwest | CNN

    Thousands without power after reported tornadoes strike Texas and Louisiana communities as storm continues to threaten South, Midwest | CNN

    [ad_1]



    CNN
     — 

    More than a dozen reported tornadoes struck across communities in Texas and Louisiana, damaging many homes and businesses as windows and roofs were blown off buildings – and the threat is expected to persist Wednesday in other southern states.

    A massive, multi-day storm is bringing different impacts to a large swath of the US this week, with parts of Alabama, Florida and Mississippi under a tornado watch through 5 a.m. Wednesday while snow is also in store for the Midwest.

    “A winter storm will move into the Mid-Mississippi Valley by Wednesday morning. Areas of heavy snow and a wintry mix over Oklahoma and the Ozarks will expand northeastward into the Ohio Valley through early Wednesday,” the National Weather Service said on Twitter.

    On Tuesday, the storm inflicted extensive damage to the Houston-area communities of Deer Park and Pasadena, where downed trees and debris littered streets and thousands were without power after lines were knocked down.

    “We’ve seen plenty of damage. We’ve seen buildings that have collapsed,” Pasadena Mayor Jeff Wagner said.

    Josh Bruegger, the city’s police chief, described the damage as the worst he has seen in 25 years, adding, “For the coming days, we’re going to have our hands full.”

    In Deer Park, people who were at St. Hyacinth Catholic Church hunkered down in a hallway and closed all doors as they heard what they believe to be a tornado roll through the area, Father Reginald Samuels said.

    “It got really loud, we heard glass breaking, and the building was shaking then it was calm,” Samuels told CNN, adding that no one was hurt.

    Damage was also reported at a Deer Park nursing home, prompting the evacuation of about 60 residents Tuesday afternoon, Mayor Jerry Mouton told CNN. There were no reports of injuries, according to Jerry Dilliard with the Atascocita Fire Department. CNN reached out to the nursing home’s operator Tuesday for more information.

    Mr. Electric employees Héctor Vázquéz, left, and Lucas Perry pass off a phone outside their office building where they were working when a powerful storm system hit Tuesday in Deer Park, Texas.

    As clean-up efforts are underway in Deer Park, schools in the city will close Wednesday, the district said.

    “We hope this will give families a chance to recover from the stress of today’s events, and we believe it is best for children to be with their parents or guardians after a natural disaster,” the district said in a statement sent to parents and employees Tuesday night.

    “It appears many homes and businesses in our area were damaged, and some neighborhoods remain without power at this time,” the statement continued.

    Photos of damage in Deer Park show tree limbs lying on roads, roofs flown off buildings and damaged vehicles.

    John Liparito surveys storm damage Tuesday in Pasadena, Texas.

    More than 100,000 homes and businesses in Texas and Arkansas were left in the dark early Wednesday morning, according to the tracking site PowerOutage.us. As of 9 p.m. ET, at least 14 tornadoes had been reported across southeastern Texas and southwestern Louisiana.

    In Louisiana’s Beauregard Parish, the sheriff’s office reported significant damage to homes and other buildings, noting that roads were blocked and power lines were down. Nearly 16,000 homes and businesses were also without power in Louisiana early Wednesday morning.

    Overall, there were no reports of serious injuries associated with Tuesday’s storm damage, with Pasadena officials reporting one injury.

    [ad_2]

    Source link