Tag: Oil and gas exploration and extraction

OPEC+ oil producers face uncertainty over Russian sanctions

FRANKFURT, Germany — The Saudi-led OPEC oil cartel and allied producing countries, including Russia, are expected to decide how much oil to supply to the global economy amid weakening demand in China and uncertainty about the impact of new Western sanctions against Russia that could take significant amounts of oil off the market.

The 23-country OPEC+ alliance are scheduled to meet Sunday, a day ahead of the planned start of two measures aimed at hitting Moscow’s oil earnings in response to its war in Ukraine. Those are a European Union boycott of most Russian oil and a $60-per-barrel price cap on Russian exports imposed by the EU and Group of Seven democracies.

Russia rejected the price cap approved Friday and threatened to stop supplying the nations that endorsed it.

Oil has been trading lower on fears that coronavirus outbreaks and China’s strict zero-COVID restrictions would reduce demand for fuel in one of the world’s major economies. Concerns about recessions in the U.S. and Europe also raise the prospect of lower demand for gasoline and other fuel made from crude.

That uncertainty is the reason OPEC+ gave in October for a slashing production by 2 million barrels per day starting in November, which some saw as a possible move to help Russia weather the European embargo. The impact had some limitations because OPEC+ countries already can’t meet their quotas.

With the global economy slowing, oil prices have been falling since summertime highs, with international benchmark Brent closing Friday at $85.42 per barrel, down from $98 a month ago. That has eased gasoline prices for drivers in the U.S. and around the world.

On the other side, the price cap and EU boycott could take an unknown amount of Russian oil off the global market, tightening supply and driving up prices. To prevent a sudden loss of Russian crude, the price cap allows shipping and insurance companies to transport Russian oil to non-Western nations at or below that threshold. Most of the globe’s tanker fleet is covered by insurers in the G-7 or EU.

Russia would likely try to evade the cap by organizing its own insurance and using the world’s shadowy fleet of off-the-books tankers, as Iran and Venezuela have done, but that would be costly and cumbersome, analysts say.

Facing those uncertainties for the global oil market, OPEC oil ministers led by Saudi Arabia could leave production levels unchanged or cut output again to keep prices from declining further. Low prices mean less revenue for governments of producing nations.

“We feel that the meeting will be fairly short, and the alliance will stick to the current output targets,” said Gary Peach, oil markets analyst with Energy Intelligence. Standing pat makes sense “all the more so because oil is at $87 per barrel (earlier Friday), which is a good price for everybody. … Of course, $98 is better, but right now I think they see the market as adequately priced, adequately supplied and there’s no reason to rock the boat.”

Analysts at Clearview Energy Partners, on the other hand, expect OPEC+ to announce a production cut of 1 million barrels per day. Some members are underproducing, so that would more likely amount to a production cut of roughly 580,000 barrels per day.

A cut of that magnitude wouldn’t cause a problem with global supplies, even when taking into consideration the EU ban on Russian oil, which is expected to pull another 1 million barrels off the market, said Jacques Rousseau, managing director at Clearview Energy Partners. Oil use declines in the winter, in part because fewer people are driving.

But the G-7 price cap could prompt Russia to retaliate and take more oil off the market. The Saudis are “likely to share the Kremlin’s interest in quashing the G-7’s rising buyers’ cartel,” said Kevin Book, another managing director at Clearview.

The cap of $60 a barrel is near the current price of Russian oil, meaning Moscow could continue to sell while rejecting the cap in principle.

“If Russia ends up taking off more oil than about a million barrels per day, then the world becomes short on oil, and there would need to be an offset somewhere, whether that’s from OPEC or not,” Rousseau said. “That’s going to be the key factor — is to figure out how much Russian oil is really leaving the market.”

———

Bussewitz reported from New York.

Source link

December 4, 2022
OPEC+ oil producers face uncertainty over Russian sanctions

FRANKFURT, Germany — The Saudi-led OPEC oil cartel and allied producing countries, including Russia, are expected to decide how much oil to supply to the global economy amid weakening demand in China and uncertainty about the impact of new Western sanctions against Russia that could take significant amounts of oil off the market.

The 23-country OPEC+ alliance are scheduled to meet Sunday, a day ahead of the planned start of two measures aimed at hitting Moscow’s oil earnings in response to its war in Ukraine. Those are a European Union boycott of most Russian oil and a $60-per-barrel price cap on Russian exports imposed by the EU and Group of Seven democracies.

Russia rejected the price cap approved Friday and threatened to stop supplying the nations that endorsed it.

Oil has been trading lower on fears that coronavirus outbreaks and China’s strict zero-COVID restrictions would reduce demand for fuel in one of the world’s major economies. Concerns about recessions in the U.S. and Europe also raise the prospect of lower demand for gasoline and other fuel made from crude.

That uncertainty is the reason OPEC+ gave in October for a slashing production by 2 million barrels per day starting in November, which some saw as a possible move to help Russia weather the European embargo. The impact had some limitations because OPEC+ countries already can’t meet their quotas.

With the global economy slowing, oil prices have been falling since summertime highs, with international benchmark Brent closing Friday at $85.42 per barrel, down from $98 a month ago. That has eased gasoline prices for drivers in the U.S. and around the world.

On the other side, the price cap and EU boycott could take an unknown amount of Russian oil off the global market, tightening supply and driving up prices. To prevent a sudden loss of Russian crude, the price cap allows shipping and insurance companies to transport Russian oil to non-Western nations at or below that threshold. Most of the globe’s tanker fleet is covered by insurers in the G-7 or EU.

Russia would likely try to evade the cap by organizing its own insurance and using the world’s shadowy fleet of off-the-books tankers, as Iran and Venezuela have done, but that would be costly and cumbersome, analysts say.

Facing those uncertainties for the global oil market, OPEC oil ministers led by Saudi Arabia could leave production levels unchanged or cut output again to keep prices from declining further. Low prices mean less revenue for governments of producing nations.

“We feel that the meeting will be fairly short, and the alliance will stick to the current output targets,” said Gary Peach, oil markets analyst with Energy Intelligence. Standing pat makes sense “all the more so because oil is at $87 per barrel (earlier Friday), which is a good price for everybody. … Of course, $98 is better, but right now I think they see the market as adequately priced, adequately supplied and there’s no reason to rock the boat.”

Analysts at Clearview Energy Partners, on the other hand, expect OPEC+ to announce a production cut of 1 million barrels per day. Some members are underproducing, so that would more likely amount to a production cut of roughly 580,000 barrels per day.

A cut of that magnitude wouldn’t cause a problem with global supplies, even when taking into consideration the EU ban on Russian oil, which is expected to pull another 1 million barrels off the market, said Jacques Rousseau, managing director at Clearview Energy Partners. Oil use declines in the winter, in part because fewer people are driving.

But the G-7 price cap could prompt Russia to retaliate and take more oil off the market. The Saudis are “likely to share the Kremlin’s interest in quashing the G-7’s rising buyers’ cartel,” said Kevin Book, another managing director at Clearview.

The cap of $60 a barrel is near the current price of Russian oil, meaning Moscow could continue to sell while rejecting the cap in principle.

“If Russia ends up taking off more oil than about a million barrels per day, then the world becomes short on oil, and there would need to be an offset somewhere, whether that’s from OPEC or not,” Rousseau said. “That’s going to be the key factor — is to figure out how much Russian oil is really leaving the market.”

———

Bussewitz reported from New York.

Source link

December 4, 2022
Los Angeles City Council votes to ban oil and gas drilling

__

The Los Angeles City Council voted unanimously on Friday to ban drilling of new oil and gas wells and phase out existing ones over the next 20 years.

The vote comes after more than a decade of complaints from city residents that pollution drifting from wells was affecting their health.

“Hundreds of thousands of Angelenos have had to raise their kids, go to work, prepare their meals (and) go to neighborhood parks in the shadows of oil and gas production,” said Los Angeles City Council president Paul Krekorian, one of the councilmembers who introduced this measure. “The time has come …. when we end oil and gas production in the city of Los Angeles.”

Two engineers with Yorke Engineering, a California-based company that does air quality and environmental compliance review, spoke in opposition to the ordinance. They said a ban and phase out will have a negative effect because oil and gas operators will abandon wells. They said this is being underestimated by the city. If they walk away, that will mean increased air pollution and greenhouse gas emissions, they said.

But Los Angeles City Attorney Mike Feuer said these claims are “not credible,” citing a review by Impact Sciences, another California-based firm that performed an environmental analysis of the ordinance for the city.

Los Angeles was once a booming oil town. Many of its oilfields are now played out but it still has several productive ones.

According to the city controller’s office there were 780 active and 287 idle wells within city boundaries in 2018. An idle well is one that is not operating, but neither has it been permanently sealed, so it could be brought back into production.

Near Long Beach there’s the very prolific Wilmington oil field, which yielded more than 10 million barrels of crude oil in 2019, according to state records.

Hundreds of the still active wells in that field are concentrated in Wilmington, a predominantly Latino part of Los Angeles. Several clusters of the active wells, located near homes, ballfields and childcare facilities, are operated by companies like E&B Natural Resources Management Corporation and Warren Resources.

Warren Resources CEO and president James A. Watt said in a statement to The Associated Press that the company has invested $400 million in its oil and gas operations. “We intend to use all available legal resources to protect our major investment from this unlawful taking,” he said.

Many more wells lie just outside Los Angeles city limits, in Carson, Inglewood and Long Beach.

Some studies look at the possible effects of pollution emanating from the city’s existing oil and gas wells.

Researchers from the University of Southern California in a study in 2021 found that people living near wells in two Los Angeles neighborhoods — University Park and Jefferson Park — reported significantly higher rates of wheezing, eye and nose irritation, sore throat and dizziness than neighbors living farther away. Both of those communities are predominantly non-white with large Black and Latino communities, according to the U.S. Census.

The push to ban drilling in the City of Los Angeles is part of a region-wide effort to shut down oil and gas extraction throughout the county of Los Angeles, with similar measures covering Culver City and unincorporated parts of Los Angeles County passed in 2021.

“In Los Angeles, we sit on the largest urban oil deposit in the world,” said councilmember Marqueece Harris-Dawson ahead of the vote. “So if Los Angeles can do it, cities around the world can do it.”

———

This story has been edited to correct the amount Warren Resources CEO and president James A. Watt said his company has invested in its oil and gas operations. It is $400 million, not $44 million.

———

Follow Drew Costley on Twitter: @drewcostley.

———

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Science and Educational Media Group. The AP is solely responsible for all content.

Source link

December 3, 2022
Gas driller pleads no contest to polluting town’s water

MONTROSE, Pa. — Pennsylvania’s most active gas driller pleaded no contest Tuesday to criminal charges, capping a landmark environmental case against a company that prosecutors say polluted a rural community’s drinking water 14 years ago and then tried to evade responsibility.

Residents of the tiny crossroads of Dimock in northeastern Pennsylvania say they have gone more than a decade without a clean, reliable source of drinking water after their aquifer was ruined by Houston-based Coterra Energy Inc.

Under a plea deal entered in Susquehanna County Court, Coterra agreed to pay $16.29 million to fund construction of a new public water system and pay the impacted residents’ water bills for the next 75 years.

“After more than decade of denials, of shirking responsibility and accountability, Coterra pleaded to their crime, and the people of Dimock finally had their day in court,” Attorney General Josh Shapiro, the state’s incoming governor, said outside the courtroom. “Today is further proof that you don’t get to just walk away from the harm you do here in Pennsylvania.”

The plea — the result of years of negotiations between Coterra and the attorney general’s office — represents a milestone in one of the most prominent pollution cases ever to emerge from the U.S. drilling and fracking boom. Dimock drew national notoriety after residents were filmed lighting their tap water on fire in the Emmy Award-winning 2010 documentary “Gasland.”

Coterra’s corporate predecessor, Cabot Oil & Gas Corp., was charged in June 2020 with 15 criminal counts, most of them felonies, after a grand jury investigation found the company drilled faulty gas wells that leaked flammable methane into residential water supplies in Dimock and surrounding communities.

The grand jury blasted what it called Cabot’s “long-term indifference to the damage it caused to the environment and citizens of Susquehanna County.”

Cabot, which merged with Denver-based Cimarex Energy Co. to form Coterra, has long maintained the gas in residents’ water was naturally occurring.

Coterra pleaded no contest to a misdemeanor charge of prohibition against discharge of industrial wastes under the state’s Clean Streams Law. The plea means Coterra does not admit guilt but agreed to accept criminal responsibility.

“Coterra has worked closely with the Office of Attorney General to resolve historical matters and create a path forward for all parties,” company spokesperson George Stark said via email. He said Coterra ”strives to follow best practices, exceed industry standards, and to continue to be a valuable community partner.”

Many residents have avoided using their well water since the aquifer was contaminated with methane and heavy metals, using bottled water, bulk water purchased commercially, and even water drawn from creeks and artesian wells instead.

“These people had to find very creative ways to get water for their homes, water for their families, their kids, their critters, and it was not pretty,” Dimock resident Victoria Switzer said Tuesday. “It was just crazy, people trying to find water.”

Switzer, whose house will be connected to the new water line, called it “wonderful news” — and a long time coming.

Another resident, Scott Ely, said some of his neighbors had moved away or developed health problems as a result of Coterra’s practices, while his own children, now in college, had grown up “without a safe water source.”

“There’s so much heartache,” he said.

Residents were informed of the plea deal last week. A public utility, Pennsylvania American Water, plans to drill two wells — what it calls a “public groundwater system” — and build a treatment plant that will remove any contaminants from the water before piping it to about 20 homes in Dimock. The utility estimates that construction will take about three years, during which Coterra will be required to provide individual treatment systems and bottled water to impacted residents.

The settlement comes near the end of Shapiro’s tenure as attorney general.

On Tuesday, Shapiro, a Democrat who will be sworn in as governor in January, pledged more aggressive regulatory oversight of the industry.

“We have to change our regulatory structure here in the commonwealth,” Shapiro said. “We have to make sure we are setting clear rules of the road and holding industry accountable. If the regulators fail to do that, then industry is not going to be constrained and they’re going to go ahead and put profits before people. And that’s where the danger comes in.”

Shapiro demurred on the question of whether Coterra would be permitted to resume drilling in a 9-square-mile (23-square-kilometer) area of Dimock where it has long been banned. Shpairo said he would review the matter with his new environmental secretary after taking office as governor.

The criminal case has not slowed Coterra’s business. It is the leading shale gas driller in the nation’s No. 2 natural gas-producing state.

Source link

November 29, 2022
West Texas earthquake causes damage hundreds of miles away

MENTONE, Texas — A strong earthquake that struck a remote area of the West Texas desert caused damage in San Antonio, hundreds of miles from the epicenter, officials said.

University Health said Thursday that its Robert B. Green historical building was deemed unsafe because of damage sustained from the quake, which hit Wednesday in a remote area near the New Mexico border. The historical building is more than 100 years old and has been closed off for safety reasons, University Health said.

The quake initially had a 5.3 magnitude but that was revised upward to 5.4. The earthquake’s epicenter was about 23 miles (37 kilometers) south of Mentone, a tiny community about 350 miles (560 kilometers) northwest of San Antonio.

It was one of the strongest earthquakes on record in Texas and hit in an area known for oil and gas production. On Thursday, the state’s Railroad Commission — which regulates Texas’ oil and gas industry — sent inspectors to the site to determine whether any actions were needed.

Earthquakes in the south-central United States have been linked to oil and gas production, particularly the underground injection of wastewater. The U.S. Geological Survey said research suggests that a 5.0 magnitude quake that struck the same West Texas area in 2020 was the result of a large increase of wastewater injection in the region.

In neighboring Oklahoma, thousands of earthquakes of varying magnitudes have been recorded in the past decade, leading state regulators to direct producers to close some injection wells.

Source link

November 18, 2022
US moves to shield Saudi crown prince in journalist killing

WASHINGTON — The Biden administration declared Thursday that Saudi Arabia‘s crown prince should be considered immune from a lawsuit over his role in the killing of a U.S.-based journalist, a turnaround from Joe Biden’s passionate campaign trail denunciations of Prince Mohammed bin Salman over the brutal slaying.

The administration said the senior position of the crown prince, Saudi Arabia’s de facto ruler and recently named prime minister as well, should shield him against a suit brought by the fiancée of slain Washington Post columnist Jamal Khashoggi and by the rights group Khashoggi founded, Democracy for the Arab World Now.

The request is non-binding and a judge will ultimately decide whether to grant immunity. But it is bound to anger human rights activists and many U.S. lawmakers, coming as Saudi Arabia has stepped up imprisonment and other retaliation against peaceful critics at home and abroad and has cut oil production, a move seen as undercutting efforts by the U.S. and its allies to punish Russia for its war against Ukraine.

The State Department on Thursday called the administration’s call to shield the Saudi crown prince from U.S. courts in Khashoggi’s killing “purely a legal determination.”

The State Department cited what it said was longstanding precedent. Despite its recommendation to the court, the State Department said in its filing late Thursday, it “takes no view on the merits of the present suit and reiterates its unequivocal condemnation of the heinous murder of Jamal Khashoggi.”

Saudi officials killed Khashoggi at the Saudi consulate in Istanbul. They are believed to have dismembered him, although his remains have never been found. The U.S. intelligence community concluded Saudi Arabia’s crown prince had approved the killing of the widely known and respected journalist, who had written critically of Prince Mohammed’s harsh ways of silencing of those he considered rivals or critics.

The Biden administration statement Thursday noted visa restrictions and other penalties that it had meted out to lower-ranking Saudi officials in the death.

“From the earliest days of this Administration, the United States Government has expressed its grave concerns regarding Saudi agents’ responsibility for Jamal Khashoggi’s murder,” the State Department said. Its statement did not mention the crown prince’s own alleged role.

Biden as a candidate vowed to make a “pariah” out of Saudi rulers over the 2018 killing of Khashoggi.

“I think it was a flat-out murder,” Biden said in a 2019 CNN town hall, as a candidate. “And I think we should have nailed it as that. I publicly said at the time we should treat it that way and there should be consequences relating to how we deal with those — that power.”

But Biden as president has sought to ease tensions with the kingdom, including bumping fists with Prince Mohammed on a July trip to the kingdom, as the U.S. works to persuade Saudi Arabia to undo a series of cuts in oil production.

Khashoggi’s fiancee, Hatice Cengiz, and DAWN sued the crown prince, his top aides and others in Washington federal court over their alleged roles in Khashoggi’s killing. Saudi Arabia says the prince had no direct role in the slaying.

“It’s beyond ironic that President Biden has singlehandedly assured MBS can escape accountability when it was President Biden who promised the American people he would do everything to hold him accountable,” the head of DAWN, Sarah Leah Whitson, said in a statement, using the prince’s acronym.

Biden in February 2021 had ruled out the U.S. government imposing punishment on Prince Mohammed himself in the killing of Khashoggi, a resident of the Washington area. Biden, speaking after he authorized release of a declassified version of the intelligence community’s findings on Prince Mohammed’s role in the killing, argued at the time there was no precedent for the U.S. to move against the leader of a strategic partner.

The U.S. military long has safeguarded Saudi Arabia from external enemies, in exchange for Saudi Arabia keeping global oil markets afloat.

“It’s impossible to read the Biden administration’s move today as anything more than a capitulation to Saudi pressure tactics, including slashing oil output to twist our arms to recognize MBS’s fake immunity ploy,” Whitson said.

A federal judge in Washington had given the U.S. government until midnight Thursday to express an opinion on the claim by the crown prince’s lawyers that Prince Mohammed’s high official standing renders him legally immune in the case.

The Biden administration also had the option of not stating an opinion either way.

Sovereign immunity, a concept rooted in international law, holds that states and their officials are protected from some legal proceedings in other foreign states’ domestic courts.

Upholding the concept of “sovereign immunity” helps ensure that American leaders in turn don’t have to worry about being hauled into foreign courts to face lawsuits in other countries, the State Department said.

Human rights advocates had argued that the Biden administration would embolden Prince Mohammed and other authoritarian leaders around the world in more rights abuses if it supported the crown prince’s claim that his high office shielded him from prosecution.

Prince Mohammed serves as Saudi Arabia’s de facto ruler in the stead of his aged father, King Salman. The Saudi king in September also temporarily transferred his title of prime minister — a title normally held by the Saudi monarch — to Prince Mohammed. Critics called it a bid to strengthen Mohammed’s immunity claim.

——

Eric Tucker and Aamer Madhani contributed.

Source link

November 17, 2022
Saudi Arabia has ‘green vision’ at COP27, critics unmoved

SHARM EL-SHEIKH, Egypt — Hydrogen cars and vehicles that capture their tailpipe pollutants. Computer mice made from recycled ocean waste plastic. Hundreds of millions of trees planted in the desert. Saudi Arabia’s vision of an environmentally friendly future is on display just a short drive from the venue of the U.N. climate summit being held in Egypt.

What’s not highlighted in the glossy gallery are the earth-warming fossil fuels that the country continues to pump out of the ground for global export. Fossil fuel emissions are the reason why negotiators from nearly 200 countries have gathered at the annual two-week conference, haggling over how pollution can be cut and how fast to do it.

In and around the conference, Saudi Arabia is presenting itself as a leader in green energies and eco-friendly practices, with flashy pavilions, glossy presentations and optimistic assessments of technologies like carbon capture, which can remove carbon dioxide from the air but is costly and years away from being deployed at scale.

“We have hugely ambitious goals and targets,” Saudi climate envoy Adel al-Jubeir said at the two-day Saudi Green Initiative Forum on COP27′s sidelines. “We want to be an example to the world in terms of what can be done.”

The effort is part of a large push by Saudi Arabia, which has some of the world’s largest reserves of oil and is a leader of the OPEC oil cartel, to make the case that the nation should be part of the transition to renewable energies while holding on to its role as the top global crude oil exporter. That vision is sharply contested by climate scientists and environmental experts, who argue that Saudi Arabia and other countries with large reserves of oil simply want to distract the world to continue with business as usual.

The Saudi energy minister, Prince Abdulaziz bin Salman al Saud, announced a raft of new green projects or updates to existing ones, from beefed up tree planting pledges to fresh solar energy energy projects in the pipeline.

Crown Prince Mohammed bin Salman launched his Saudi Green Initiative ahead of last year’s COP26 conference in Glasgow, Scotland, with a target for “net zero” greenhouse gas emissions by 2060.

Still, energy exports are the Saudi economy’s mainstay, earning $150 billion in annual revenue, despite efforts to diversify revenue as the global transition away from fossil fuel reliance accelerates.

At the Saudi forum, officials and invited guest speakers from renewable energy companies held forth on topics like clean hydrogen, greening the desert, and a futuristic desert city project called Neom.

State-owned oil giant Saudi Aramco’s CEO, Amin Nasser, said the world needs more investment in oil and gas, not less, a message at odds with the sentiment among many country delegations and climate experts and activists attending COP27.

“I’m concerned because of lack of investment in the oil and gas in particular,” said Nasser, touching on a frequent theme. Saudi Arabia has resisted calls to urgently phase out fossil fuels, warning that a premature switch has led to price spikes and shortages.

“Yes, there is good investment happening in the alternatives,” such as wind and solar power, he said, adding that the amount of money spent on oil production capacity has fallen to $400 billion a year from $700 billion in 2014.

“That is not enough to meet global demand in the mid to long term,” he said.

An Aramco spokesman said Nasser wasn’t available for an interview.

Among the Saudi announcements, there were plans to set up a regional center to “advance emissions reductions” and one to host a regional climate week ahead of next year’s COP meeting.

Saudi Arabia is also set to build 13 renewable energy projects with a total generating capacity of 11.4 gigawatts, though experts said that’s a step back from numbers announced in previous years.

Once they’re up and running, the new energy projects will cut carbon dioxide emissions by about 20 million tons a year.

Saudi Aramco plans to build the world’s biggest carbon capture and storage hub, which will store up to 9 million tons of carbon dioxide when its up and running in 2027.

It’s all part of the kingdom’s pledged to cut emissions by 278 million tons a year by 2030. That’s still small compared to about 10 billion metric tons of carbon spewed globally into the air annually.

The kingdom also upgraded its tree planting goal to 600 million by 2030, including mangroves, up from its 450 million initial target.

Climate experts weren’t convinced.

“Saudi Arabia would be better placed to focus on cutting emissions rather than relying on carbon capture and storage and questionable reductions from planting trees, the offsets of which would simply allow them to continue increasing emissions from burning fossil fuels,” said Mia Moisio, a an energy policy expert focusing on Middle East and North Africa at the New Climate Institute think tank.

“To keep emissions on a 1.5˚C pathway, all governments must focus on cutting fossil fuel emissions, not offsetting them.”

The Climate Action Tracker, operated by the institute and its partners, rates Saudi Arabia as “highly insufficient.”

The tracker analyzes nations’ climate targets and policies compared to the goals of the 2015 Paris Agreement that spells out ideally limiting the Earth’s temperature rise to 1.5 Celsius (2.7 Fahrenheit).

Saudi authorities are promoting what they call a “circular carbon economy” to cut emissions from oil and gas operations, but the tracker says this it “only addresses a fraction of relevant emissions in Saudi Arabia and globally, as most emissions related to oil and gas come from fuel combustion rather than extraction and processing.”

Saudi Arabia’s oil and gas assets spew 900 million tons of emissions a year, according to an inventory of top known sources of greenhouse gas emitters compiled by the Climate TRACE coalition and launched at COP27.

There’s also a plan for a greenhouse gas crediting and offsetting scheme next year, with few details. Carbon credits, which allow countries and companies to pay to reduce their carbon footprints, say by planting trees, have become increasingly controversial, with critics saying they’re a license for polluting companies to keep polluting.

At least year’s talks in Glasgow, Saudi Arabia faced accusations that its negotiators were working to block climate measures that would threaten demand for oil – a charge that the energy minister called a lie.

As negotiations on the final agreement head into their second and final week, watchdog groups warned about the influence of so-called petrostates and industry lobbyists. They counted 636 people linked to fossil fuel companies on the meeting’s provisional list of participants, a quarter more than last year’s tally.

“The Saudis may well be coming to COP27 with a green hat on and extolling the virtues of planting trees, but this is a state that continues to profit wildly from the destructive practices causing the climate crisis,” said Alice Harrison, a campaigner at Global Witness, one of the groups that did the count. “Any exhibitions, talks or shows to the contrary are pure greenwashing.”

———

Follow AP’s climate and environment coverage at https://apnews.com/hub/climate-and-environment

———

Associated Press climate and environmental coverage receives support from several private foundations. See more about AP’s climate initiative here. The AP is solely responsible for all content.

Source link

November 13, 2022
Famed painting ‘The Scream’ targeted by climate activists

COPENHAGEN, Denmark — Norwegian police said two climate activists tried in vain Friday to glue themselves to Edvard Munch’s 1893 masterpiece “The Scream” at an Oslo museum and no harm was reported to the painting of a waif-like figure appearing to scream.

Police said they were alerted by the National Museum of Norway and had three people under their “control.” A third person filmed the pair that tried to affix to the painting, Norwegian news agency NTB said.

The museum said that the room where the glass-protected painting is exhibited “was emptied of the public and closed,” and will reopen as soon as possible. The rest of museum remained open.

Police said there was glue residue on the glass mount.

A video of the incident showed museum guards holding two activists with one shouting “I scream for people dying” and another one shouts “I scream when lawmakers ignore science” while a person was shielding the painting from the protesters.

Environmental activists from the Norwegian organization “Stopp oljeletinga” — Norwegian for Stop Oil Exploration — were behind the stunt, saying they “wanted to pressure lawmakers into stopping oil exploration.” Norway is a major producer of offshore oil and gas.

“We are campaigning against ‘Scream’ because it is perhaps Norway’s most famous painting,” activist spokeswoman Astrid Rem told The Associated Press. “There have been lots of similar actions around Europe, they have managed something that no other action has managed: achieve an extremely large amount of coverage and press.”

It was the latest episode in which climate activists have targeted famous paintings in European museums.

Two Belgian activists who targeted Johannes Vermeer’s “Girl with a Pearl Earring” in a Dutch museum in October were sentenced to two months in prison. The painting wasn’t damaged and was returned to its wall a day later.

Earlier this month, climate protesters threw mashed potatoes at a Claude Monet painting in a German museum and a similar protest happened in London, where protesters threw soup over Vincent van Gogh’s “Sunflowers” at the National Gallery. In both those cases, the paintings also weren’t damaged.

———

Follow AP’s coverage of the climate and environment at https://apnews.com/hub/climate-and-environment

Source link

November 11, 2022
Greek PM: Gas exploration to start off Crete in coming days

ATHENS, Greece — Exxon Mobil is poised to start a delayed gas prospecting project off southwestern Greece, the country’s leader said Monday amid tensions between Greece and Turkey over offshore rights and as Europe seeks alternative energy sources due to the war in Ukraine.

The U.S. energy giant will start seismic exploration “in the coming days” southwest of the southern Peloponnese peninsula and the island of Crete, Prime Minister Kyriakos Mitsotakis told private Antenna TV.

The project has been heavily criticized by environmental groups, which argue that the deep-sea prospecting would have “unbearable” consequences on endangered Mediterranean whales and dolphins. Critics also highlight the potential risk of spills, and say the project, if successful, would increase Greece’s use of fossil fuels amid the planet’s climate change crisis.

Mitsotakis insisted Monday that Greece remains dedicated to “fast green transition.” But he added: “Our country … must ascertain whether it currently has the ability to produce natural gas, which would contribute not only to our own energy security but also to that of Europe.”

European countries are scrambling to replace their former dependency on Russian fossil fuels following Russia’s Feb. 24 invasion of Ukraine and the subsequent damaging of pipelines designed to bring natural gas from Russia to Germany.

Meanwhile, Greece and Turkey are at loggerheads over offshore exploration rights in the eastern Mediterranean, and Turkish prospecting east of Crete in 2020 prompted a military build-up and bellicose rhetoric.

In 2019, Greece granted rights for exploration — which, however, didn’t go ahead — in two blocks of seabed south and southwest of the island of Crete to a consortium of TotalEnergies and Exxon Mobil with Greece’s Hellenic Petroleum.

The areas include the Mediterranean’s deepest waters. The Hellenic Trench, at 5,267 meters (17,300 feet) is a vital habitat for the sea’s few hundred sperm whales, and for other cetaceans already threatened by fishing, collisions with ships and plastic pollution.

These mammals are particularly sensitive to the underwater noise produced by seismic surveys for fossil fuels, in which sound waves are bounced off the seabed to locate potential deposits. Sonar used by warships has been shown to have deadly effects on whales, and experts say seismic surveys can do the same.

———

Follow all AP stories about climate change issues at https://apnews.com/hub/climate-and-environment.

Source link

November 7, 2022
Climate Questions: Does what I do matter?

Can people’s individual actions make a difference in how much carbon dioxide is emitted on an international scale? International organizations like the United Nations have called on individuals to limit their carbon footprint and live more sustainably, along with governments and corporations.

Some argue it would be more effective to focus on changing government and corporate policy to limit emissions from the energy and agriculture sectors than asking individuals to limit their carbon footprint, but experts say that while that’s true, every bit of emissions reduction helps.

———

EDITOR’S NOTE: This story is part of an ongoing series answering some of the most fundamental questions around climate change, the science behind it, the effects of a warming planet and how the world is addressing it.

———

“We should all be the most responsible citizens we can be in every sense of the word and contribute to a sustainable existence on this planet,” said University of Pennsylvania climate scientist Michael Mann. He said that means, in part, minimizing our carbon footprints as individuals.

And that can take a lot of different forms.

The United Nations Act Now campaign for individual climate action suggests people can minimize their personal carbon footprint directly by changing their energy and transportation use and food consumption. Other, less direct methods for reducing carbon emissions include divesting from fossil fuel companies in retirement plans, protesting to support climate action and lobbying government officials to pass environmentally sustainable policies.

Kim Cobb, a Brown University climate scientist, said there are consequences to individuals having “outsized” carbon footprints. And still there are people who engage in the environmental movement who don’t consider their personal carbon footprint.

“I think we’re living in an anti-gravity moment where people are able to say, ‘I’m not concerned about my first, personal carbon footprint. Collective action matters the most,’” she said. In the future, though, “there will be a moral and social cost to bear by those individuals.”

Still, there are some climate impacts that people aren’t individually responsible for and can’t change on their own. Over 70% of all greenhouse gas emissions produced between 1988 and 2015 came from 100 fossil fuel companies, according a 2017 report by CDP, formerly known as the Carbon Disclosure Project.

And despite the United Nations’ warnings to drastically cut greenhouse gas emissions, countries are planning on extracting double the amount of fossil fuels than what would be consistent with keeping the global temperature rise below 1.5 degrees Celsius (2.7 degrees Fahrenheit), even as they pledge to make ambitious cuts.

So, although there are things individuals can do to minimize their personal carbon footprints, Mann said, “we must not allow … polluters to reframe the discussion so that it falls entirely upon individuals, which takes the pressure off of them.”

“We can’t pass legislation ourselves that incentivizes renewable energy or that blocks new fossil fuel infrastructure. We can’t impose regulations on industry. We can’t negotiate directly with international partners. We need our policymakers to do that,” Mann said. “Those things can only be enacted at the systematic level, and that’s why we have to keep the pressure on policymakers and on corporations and those who are in a position to make the changes that we can’t make ourselves.”

———

Follow Drew Costley on Twitter: @drewcostley.

———

The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institute’s Department of Science Education. The AP is solely responsible for all content.

Source link

November 6, 2022
Saudis say US sought 1 month delay of OPEC+ production cuts

DUBAI, United Arab Emirates — Saudi Arabia said Thursday that the U.S. had urged it to postpone a decision by OPEC and its allies — including Russia — to cut oil production by a month. Such a delay could have helped reduce the risk of a spike in gas prices ahead of the U.S. midterm elections next month.

A statement issued by the Saudi Foreign Ministry didn’t specifically mention the Nov. 8 elections in which U.S. President Joe Biden is trying to maintain his narrow Democratic majority in Congress. However, it stated that the U.S. “suggested” the cuts be delayed by a month. In the end, OPEC announced the cuts at its Oct. 5 meeting in Vienna.

Holding off on the cuts would have likely delayed any rise in gas prices until after the elections.

Rising oil prices — and by extension higher gasoline prices — have been a key driver of inflation in the U.S. and around the world, worsening global economic woes as Russia’s months-long war on Ukraine also has disrupted global food supplies. For Biden, gasoline prices creeping up could affect voters. He and many lawmakers have warned that America’s longtime security-based relationship with the kingdom could be reconsidered.

The decision by the Saudi Foreign Ministry to release a rare, lengthy statement showed how tense relations between the two countries have become.

The White House pushed back on Thursday, rejecting the idea that the requested delay was related to the U.S. elections and instead linking it to economic considerations and Russia’s war on Ukraine.

“We presented Saudi Arabia with analysis to show that there was no market basis to cut production targets, and that they could easily wait for the next OPEC meeting to see how things developed,” said John Kirby, coordinator for strategic communications at the National Security Council.

“Other OPEC nations communicated to us privately that they also disagreed with the Saudi decision, but felt coerced to support Saudi’s direction,” he added.

U.S.-Saudi ties have been fraught since the 2018 killing and dismemberment of Washington Post columnist Jamal Khashoggi, which Washington believes came on the orders of Saudi Crown Prince Mohammed bin Salman. Meanwhile, higher energy prices provide a weapon Russia can use against the West, which has been arming and supporting Ukraine.

The statement by the Saudi Foreign Ministry acknowledged that the kingdom had been talking to the U.S. about postponing OPEC+’s 2 million barrel cut announced last week.

“The government of the kingdom clarified through its continuous consultation with the U.S. administration that all economic analyses indicate that postponing the OPEC+ decision for a month, according to what has been suggested, would have had negative economic consequences,” the ministry said in its statement.

The ministry’s statement confirmed details from a Wall Street Journal article this week that quoted unnamed Saudi officials saying the U.S. sought to delay the OPEC+ production cut until just before the midterm elections. The Journal quoted Saudi officials as describing the move as a political gambit by Biden ahead of the vote.

The kingdom also criticized attempts to link its decision to Russia’s war on Ukraine.

“The kingdom stresses that while it strives to preserve the strength of its relations with all friendly countries, it affirms its rejection of any dictates, actions, or efforts to distort its noble objectives to protect the global economy from oil market volatility,” it said. “Resolving economic challenges requires the establishment of a non-politicized constructive dialogue, and to wisely and rationally consider what serves the interests of all countries.”

Both Saudi Arabia and the neighboring United Arab Emirates, key producers in OPEC, voted in favor of a United Nations General Assembly resolution Wednesday to condemn Russia’s “attempted illegal annexation” of four Ukrainian regions and demand its immediate reversal.

Once muscular enough to grind the U.S. to a halt with its 1970s oil embargo, OPEC needed non-members like Russia to push through a production cut in 2016 after prices crashed below $30 a barrel amid rising American production. The 2016 agreement gave birth to the so-called OPEC+, which joined the cartel in cutting production to help stimulate prices.

The coronavirus pandemic briefly saw oil prices go into negative territory before air travel and economic activity rebounded following lockdowns around the world. Benchmark Brent crude sat over $92 a barrel early Wednesday, but oil-producing nations are worried prices could sharply fall amid efforts to combat inflation.

Biden, who famously called Saudi Arabia a “pariah” during his 2020 election campaign, traveled to the kingdom in July and fist-bumped Prince Mohammed before a meeting. Despite the outreach, the kingdom has been supportive of keeping oil prices high in order to fund Prince Mohammed’s aspirations, including his planned $500 billion futuristic desert city project called Neom.

On Tuesday, Biden warned of repercussions for Saudi Arabia over the OPEC+ decision.

“There’s going to be some consequences for what they’ve done, with Russia,” Biden said. “I’m not going to get into what I’d consider and what I have in mind. But there will be — there will be consequences.”

———

Associated Press writer Aamer Madhani in Washington contributed to this report.

———

Follow Jon Gambrell on Twitter at www.twitter.com/jongambrellAP.

Source link

October 13, 2022
EU countries turn to Africa in bid to replace Russian gas

DAKAR, Senegal — A new liquefied natural gas project off Africa‘s western coast may only be 80% complete, but already the prospect of a new energy supplier has drawn visits from the leaders of Poland and Germany.

The initial field near Senegal and Mauritania’s coastlines is expected to contain about 15 trillion cubic feet (425 billion cubic meters) of gas, five times more than what gas-dependent Germany used in all of 2019. But production isn’t expected to start until the end of next year.

That won’t help solve Europe’s energy crisis triggered by Russia’s war in Ukraine. Still, Gordon Birrell, an executive for project co-developer BP, says the development “could not be more timely” as Europe seeks to reduce its reliance on Russian natural gas to power factories, generate electricity and heat homes.

“Current world events are demonstrating the vital role that (liquid gas) can play in underpinning the energy security of nations and regions,” he told an energy industry meeting in West Africa last month.

While Africa’s natural gas reserves are vast and North African countries like Algeria have pipelines already linked to Europe, a lack of infrastructure and security challenges have long stymied producers in other parts of the continent from scaling up exports. Already-established African producers are cutting deals or reducing energy use so they have more to sell to boost their finances, but some leaders warn that hundreds of millions of Africans lack electricity and supplies are needed at home.

Nigeria has Africa’s largest natural gas reserves, said Horatius Egua, a spokesman for the petroleum minister, though it accounts for only 14% of the European Union’s imports of liquefied natural gas, or LNG, that comes by ship. Projects face the risk of energy thefts and high costs. Other promising countries like Mozambique have discovered large gas reserves only to see projects delayed by violence from Islamic militants.

Europe has been scrambling to secure alternative sources as Moscow has reduced natural gas flows to EU countries, triggering soaring energy prices and growing expectations of a recession. The 27-nation EU, whose energy ministers are meeting this week to discuss a gas price cap, is bracing for the possibility of a complete Russian cutoff but has still managed to fill gas reserves to 90%.

European leaders have flocked to countries like Norway, Qatar, Azerbaijan and especially those in North Africa, where Algeria has a pipeline running to Italy and another to Spain.

Italy signed a $4 billion gas deal with Algeria in July, a month after Egypt reached an agreement with the European Union and Israel to boost sales of LNG. Angola also has signed a gas deal with Italy.

While an earlier agreement allowed Italy’s biggest energy company to start production at two Algerian gas fields this week, it was wasn’t clear when flows would start from the July deal because it lacked specifics, analysts said.

African leaders like Senegalese President Macky Sall want their countries to cash in on these projects even as they’re being dissuaded from pursuing fossil fuels. They don’t want to export it all either — an estimated 600 million Africans lack access to electricity.

“It is legitimate, fair and equitable that Africa, the continent that pollutes the least and lags furthest behind in the industrialization process should exploit its available resources to provide basic energy, improve the competitiveness of its economy and achieve universal access to electricity,” Sall told the U.N. General Assembly last month.

Algeria is a major supplier — it and Egypt accounted for 60% of the natural gas production in Africa in 2020 — but it can’t offset Russian gas to Europe at this stage, said Mahfoud Kaoubi, professor of economics and specialist in energy issues at the University of Algiers.

“Russia has an annual production of 270 billion cubic meters — it’s huge,” Kaoubi said. “Algeria is 120 billion cubic meters, of which 70.50% is intended for consumption on the internal market.”

This year, Algeria is forecast to have piped exports of 31.8 billion cubic meters, according to Tom Purdie, a Europe, Middle East and Africa gas analyst with S&P Global Commodity Insights.

“The key concern here surrounds the level of production step-up that can be achieved, and the impact domestic demand could have” given how much gas Algeria uses at home, Purdie said.

Cash-strapped Egypt also is looking to export more natural gas to Europe, even regulating air conditioning in shopping malls and lights on streets to save energy and sell it instead.

Prime Minister Mostafa Madbouly says Egypt hopes to bring in an additional $450 million a month in foreign currency by rerouting 15% of its domestic gas usage for export, state media reported.

More than 60% of Egypt’s natural gas consumption still is used by power stations to keep the country running. Most of its LNG goes to Asian markets.

A new, three-party deal will see Israel send more gas to Europe via Egypt, which has facilities to liquefy it for export by sea. The EU says it will help the two countries increase gas production and exploration.

In Nigeria, ambitious plans have yet to yield results despite years of planning. The country exported less than 1% of its vast natural gas reserves last year.

A proposed 4,400-kilometer-long (2,734-mile-long) pipeline that would take Nigerian gas to Algeria through Niger has been stalled since 2009, mainly because of its estimated cost of $13 billion.

Many fear that even if completed, the Trans-Sahara Gas Pipeline would face security risks like Nigeria’s oil pipelines, which have come under frequent attacks from militants and vandals.

The same challenges would hinder increased gas exports to Europe, said Olufola Wusu, a Lagos-based oil and gas expert.

“If you look at the realities on ground — issues that have to do with crude oil theft — and others begin to question our ability to supply gas to Europe,” he said.

Wusu urged pursuing LNG, calling it the “most profitable” gas strategy so far.

Even that isn’t without issues: In July, the head of Nigeria LNG Limited, the country’s largest natural gas firm, said its plant was producing at just 68% of capacity, mainly because its operations and earnings have been stifled by oil theft.

In the south, Mozambique is slated to become a major exporter of LNG after significant deposits were found along its Indian Ocean coast in 2010. France’s TotalEnergies invested $20 billion and started work to extract gas that would be liquefied in a plant it was building in Palma, in the northern Cabo Delgado province.

But Islamic extremist violence forced TotalEnergies to indefinitely scupper the project last year. Mozambican officials have pledged to secure the Palma area to allow work to resume.

Italian firm Eni, meanwhile, pressed ahead with its plan to pump and liquefy some of its gas deposits discovered in Mozambique in 2011 and 2014. Eni established a platform in the Indian Ocean 50 miles (80 kilometers) offshore, away from the violence in Cabo Delgado.

It’s the first floating LNG facility in the deep waters off Africa, Eni says, with gas liquefaction capacity of 3.4 million tons per year.

The platform liquefied its first gas on Oct. 2, according to Africa Energy, and the first shipment is expected to depart for Europe in mid-October.

———

Chinedu Asadu in Abuja, Nigeria; Aya Batrawy in Dubai, United Arab Emirates; Samy Magdy in Cairo; Andrew Meldrum in Johannesburg; and Colleen Barry in Milan contributed to this report.

Source link

October 11, 2022
Israel, US announce Lebanon sea deal, but questions remain

JERUSALEM — President Joe Biden on Tuesday said the U.S. has brokered a “historic breakthrough” between Israel and Lebanon that would end a dispute over their shared maritime border, pave the way for natural gas production and reduce the risk of war between the enemy countries.

The agreement, coming after months of U.S.-mediated talks, would mark a major breakthrough in relations between Israel and Lebanon, which formally have been at war since Israel’s establishment in 1948. But the deal still faces some obstacles, including legal and political challenges in Israel.

Israel welcomed the deal even ahead of Biden’s announcement. Lebanese leaders made no formal announcement, but indicated they would approved the agreement.

In Washington, Biden said that Israel and Lebanon had agreed to “formally end” their maritime dispute. He said he had spoken to the leaders of both countries and been told they were ready to move ahead.

The agreement “will provide for the development of energy fields for the benefit of both countries, setting the stage for a more stable and prosperous region,” Biden said. “It is now critical that all parties uphold their commitments and work towards implementation.”

Lebanon and Israel both claim some 860 square kilometers (330 square miles) of the Mediterranean Sea. At stake are rights over exploiting undersea natural gas reserves. Lebanon hopes gas exploration will help lift its country out of its spiraling economic crisis. Israel also hopes to exploit gas reserves while also easing tensions with its northern neighbor.

Israeli Prime Minister Yair Lapid called the deal a “historic achievement that will strengthen Israel’s security, inject billions into Israel’s economy, and ensure the stability of our northern border.”

Under the agreement, the disputed waters would be divided along a line straddling the strategic “Qana” natural gas field.

Israeli officials involved in the negotiations said Lebanon would be allowed to produce gas from that field, but pay royalties to Israel for any gas extracted from the Israeli side. Lebanon has been working with the French energy giant Total on preparations for exploring the field, though actual production is likely years away.

The agreement would also leave in place an existing “buoy line” that serves as a de facto border between the two countries, the officials said.

The officials, speaking on condition of anonymity because they were discussing behind the scenes negotiations, said the deal would include American security guarantees, including assurances that none of the gas revenues reach Hezbollah.

Many leading Israeli security figures, both active and retired, have hailed the deal because it could lower tensions with Lebanon’s Hezbollah militant group, which has repeatedly threatened to strike Israeli natural gas assets elsewhere in the Mediterranean.

With Lebanon now having a stake in the region’s natural gas industry, experts believe the sides will think twice before opening up another war.

“It might help create and strengthen the mutual deterrence between Israel and Hezbollah,” said Yoel Guzansky, a senior fellow at Israel’s Institute for National Security Studies. “This is a very positive thing for Israel.”

Israel and Hezbollah fought a monthlong war in 2006, and Israel considers the heavily armed Iranian-backed group to be its most immediate military threat.

The agreement will be brought before Israel’s caretaker government for approval this week ahead of the Nov. 1 election, when the country goes to the polls for the fifth time in under four years.

An Israeli official said Lapid’s Cabinet is expected to approve the agreement in principle on Wednesday, while sending it to parliament for a required two-week review. After the review, the government would give final, official approval, the official said, speaking on condition of anonymity to discuss government strategy. It remains unclear if parliament needs to approve the agreement, or merely review it.

Approval is not guaranteed. Former Prime Minister Benjamin Netanyahu has said the caretaker government has no authority to sign such an important agreement and has vowed to cancel the deal if re-elected. On Tuesday, he accused Lapid of caving in to Hezbollah threats.

“This is not a historic agreement. It’s a historic surrender,” Netanyahu said in a Facebook video.

The Kohelet Policy Forum, an influential conservative think tank, already has filed a challenge with the Supreme Court trying to block the deal.

But Yuval Shany, an expert on international law at the Israel Democracy Institute, another prominent think tank, said it is customary, but not mandatory, to seek Knesset approval for such agreements.

“Peace agreements are usually brought to the Knesset, but this is not a peace agreement. It’s a border and limitation agreement,” he said.

Senior U.S. energy envoy Amos Hochstein, whom Washington appointed a year ago to mediate talks, delivered a modified proposal of the maritime border deal to Lebanon on Monday night, according to local media and officials.

There was no formal response from Lebanon. But the office of President Michel Aoun said the latest version of the proposal “satisfies Lebanon, meets its demands, and preserves its rights to its natural resources,” and will hold consultations with officials before making an announcement.

A senior official involved in the talks told The Associated Press that Aoun, Prime Minister Najib Mikati, and Speaker Nabih Berri were all satisfied. The official spoke on condition of anonymity in line with regulations.

Hezbollah’s leader, Hassan Nasrallah, was noncommital in a speech late Tuesday. He praised his group’s “resistance” against Israel and insisted that Lebanon is not afraid of another war against Israel. But he said Hezbollah would “wait” to issue its position on the agreement. Previously he has said the group would endorse the government’s position.

He said any agreement would require cooperation and unity among Lebanon’s fractured political leadership. “The upcoming hours are decisive,” he said.

———

Associated Press correspondent Eleanor Reich contributed reporting from Jerusalem.

Source link

October 11, 2022
Key Senate chair urges US to freeze cooperation with Saudis

WASHINGTON — Senate Foreign Relations Committee Chairman Robert Menendez called Monday for freezing all U.S. cooperation with Saudi Arabia, delivering one of the strongest expressions yet of U.S. anger over Saudi oil-production cuts that serve to boost Russia in its war in Ukraine.

In a statement, Menendez specifically called for cutting off all arms sales and security cooperation — one of the underpinnings of the more than 70-year U.S. strategic partnership with the oil kingdom — beyond the minimum necessary to defend Americans and American interests.

As committee chairman, Menendez, a New Jersey Democrat, vowed he “will not green-light any cooperation with Riyadh until the Kingdom reassesses its position with respect to the war in Ukraine. Enough is enough.”

His statement comes four days after Saudi Arabia and Russia led OPEC nations in announcing a 2 million barrel a day cut in oil production. The Saudi- and Russian-led cuts help prop up high oil prices that are allowing President Vladimir Putin to keep paying for his eight-month invasion of Ukraine. The production cut also hurts U.S.-led efforts to make the war financially unsustainable for Russia, threatens a global economy already destabilized by the Ukraine conflict, and risks saddling President Joe Biden and Democrats with rising gasoline prices just ahead of U.S. midterms.

Menendez’s announcement Monday places him among a growing number of Democrats who, since the announcement by OPEC nations and Russia, have called for stopping what are billions of dollars in annual U.S. arms sales to Saudi Arabia.

The Democrats accuse Crown Prince Mohammed bin Salman, the kingdom’s de facto ruler, of effectively flouting the Saudi side of a decades-long bargain that has consisted of the U.S. military and defense industry providing security for Saudi Arabia, and Saudi Arabia in turn providing world markets with a reliable flow of oil.

Senate Majority Leader Chuck Schumer last week was among the Democrats blasting Prince Mohammed for seeming to act in support of Putin’s invasion.

Schumer declared then that lawmakers were looking at legislative options to deal with what he called Saudi Arabia’s “appalling and deeply cynical action.”

Democratic lawmakers within a day of the OPEC move were introducing new legislation to stop U.S. arms sales to the kingdom. Menendez’s action Monday, given his key role shepherding foreign policy legislation, raises the prospect that Congress could act to punish the Saudis during the lame-duck period after the November elections.

It’s not clear how far Menendez and other Democrats would go in practical terms in cutting off weapons deals and most other cooperation with the Saudis, or whether the Biden administration would go along. Biden said last week he was disappointed with Saudi Arabia’s role in the latest oil production cut and said the administration was looking at options.

There was no immediate reaction from the White House on Monday to Menendez’s move.

Last week’s oil production cuts delivered one of the sharpest yet in a series of blows in the U.S. and Saudi relationship. They include the 2018 Saudi killing of a U.S.-based journalist, Jamal Khashoggi, in which the U.S. intelligence community concluded the crown prince played a key role. Americans also fault the crown prince for refusing to join in U.S.-led efforts to isolate and punish Putin for his February invasion of Ukraine, and for maintaining seemingly friendly relations with Putin.

“There simply is no room to play both sides of this conflict — either you support the rest of the free world in trying to stop a war criminal from violently wiping off an entire country off of the map, or you support him,” Menendez said in his statement. “The Kingdom of Saudi Arabia chose the latter in a terrible decision driven by economic self-interest.”

Biden had sought to patch relations with Prince Mohammed, traveling to Saudi Arabia in July to deliver an awkward fist bump in a conciliatory gesture.

—-

Aamer Madhani contributed from Washington.

Source link

October 10, 2022
German energy company RWE to end coal use by 2030

BERLIN — German energy company RWE said Tuesday that it will phase out the burning of coal by 2030, saving 280 million metric tons of climate-changing greenhouse gas emissions.

The decision will accelerate the closure of some of Europe’s most polluting power plants and a vast lignite strip mine in western Germany.

It will also prevent the eviction of residents of several villages and farms west of Cologne near the Garzweiler mine. The exception is Luetzerath, a hamlet that has been the focus of protests by environmentalists and which will now need to be cleared to extract more coal in the short-term.

The government argues this is necessary to ensure energy security amid the fallout of Russia’s attack on Ukraine.

RWE’s announcement boosts the German government’s efforts to bring forward the deadline for phasing out coal use by eight years as part of the country’s goal of ending its greenhouse gas emissions by 2045.

Economy Minister Robert Habeck, who is responsible for energy, said negotiations with the operators of Germany’s other coal mines and eight coal-fired power plants were ongoing.

The Fridays for Future climate activist group said the announcement that Luetzerath will be destroyed and some coal-fired plants will temporarily be kept online for longer to cover possible energy shortfalls was “cynical.” It said protests against the plan would be organized in several locations across Germany.

In parallel to its phaseout of coal, RWE said it would expand renewable energy production and build gas-fired power plants capable of burning hydrogen.

RWE, which over the weekend announced the purchase of American company Con Edison Clean Energy Businesses, said it is now on a path that is compatible with the 2015 Paris climate accord’s goal of limiting global warming to 1.5 degrees Celsius (2.7 degrees Fahrenheit).

Separately on Tuesday, the Netherlands said it plans to join a German-led initiative to promote the market ramp-up of hydrogen produced using renewable energy.

German Chancellor Olaf Scholz and Dutch Prime Minister Mark Rutte said the two countries will also explore cooperation on future offshore wind parks in the North Sea that would produce both electricity and “green hydrogen.”

———

Follow AP’s coverage of climate and environment issues at https://apnews.com/hub/climate-and-environment

Source link

October 4, 2022
World shares mostly lower as recession fears deepen

BANGKOK — Shares dropped in Europe and Asia on Monday while oil prices surged more than $3 a barrel amid dire warnings over energy shortages in Europe if Russia cuts off gas supplies.

Germany’s DAX fell 1% to 11,998.26 while the CAC 40 in Paris shed 1.2% to 5,690.88. Britain’s FTSE 100 lost 0.8% to 3,305.79. On Wall Street, the future for the S&P 500 was up 0.2% while the contract for the Dow industrials gained 0.4%.

In its quarterly gas report, the Paris-based International Energy Agency said people will have to save at least 13% over the winter if Russia cuts off the last trickle of gas that’s flowing to Europe.

Europe faces “unprecedented risks” to its natural gas supplies this winter after Russia cut off most pipeline shipments and could wind up competing with Asia for already scarce and expensive liquid gas that comes by ship, the IEA said.

Reports that major oil producers plan further production cuts were also exerting upward pressure on energy prices.

U.S. benchmark crude oil gained $3.18 to $82.67 per barrel in electronic trading on the New York Mercantile Exchange. It lost $1.74 to $79.49 per barrel on Friday.

Brent crude oil, the standard for pricing international oil, rose $3.29 to $88.43 per barrel.

OPEC and allied oil-producing countries, including Russia, made a small trim in their supplies to the global economy a month ago, underlining their unhappiness as recession fears help drive down crude prices.

In Asian trading, Japan’s Nikkei 225 index gained 1.1% to 26,215.79 after a Bank of Japan quarterly survey showed sentiment among manufacturers has darkened, reflecting rising costs, the weakening yen and lingering pandemic-related restrictions.

The headline measure for the “tankan,” measuring sentiment among large manufacturers, was plus 8, down from plus 9 the previous quarter. The tankan measures corporate sentiment by subtracting the number of companies saying business conditions are negative from those responding they are positive.

“Today’s Tankan survey suggests that while the services sector is benefitting from the subsiding virus wave, the outlook for the manufacturing sector continues to worsen,” said a report from Capital Economics. It noted it was the third consecutive decline in sentiment for the world’s third largest economy.

The BOJ has kept interest rates below zero in a longstanding effort to encourage inflation and keep deflation at bay as the country ages and its population shrinks. That has kept the value of the yen weak relative to the U.S. dollar, which has been strengthening as the Federal Reserve raises rates to combat decades-high inflation.

The dollar was trading at 145.15 yen early Monday, up from 144.68 yen late Friday. That raised speculation that the central bank might once again intervene to prevent the yen from weakening further. The euro was at 97.98 cents, up from 97.96 cents.

The stunning and swift rise of the U.S. dollar against other currencies, meanwhile, raises the risk of creating so much stress that something cracks somewhere in global markets.

Elsewhere in Asia, Hong Kong’s Hang Seng index fell 0.8% to 17,079.51. Australia’s S&P/ASX 200 slipped 0.3% to 6,456.90. Taiwan’s Taiex lost 0.9% and Bangkok’s SET declined 1.8%.

Wall Street closed out a miserable September on Friday with the S&P 500′s worst monthly skid since the coronavirus pandemic crashed global markets. It’s now at its lowest level since November 2020 and is down by more than a quarter since the start of the year.

The Fed has been at the forefront of the global campaign to slow economic growth and hurt job markets just enough to undercut inflation but not so much that it causes a recession. On Friday, the Fed’s preferred measure of inflation showed it was worse last month than economists expected. That should keep the Fed on track to keep hiking rates and hold them at high levels a while, raising the risk of it going too far and causing a downturn.

The S&P 500 fell 1.5% on Friday while the Dow Jones Industrial Average dropped 1.7%. The Nasdaq composite slid 1.5% and the Russell 2000 lost 0.6%.

Other worries hang over global markets, including Russia’s invasion of Ukraine. A U.K. government plan to cut taxes sent bond markets spinning recently on fears it could make inflation even worse. Bond markets calmed a bit only after the Bank of England pledged last week to buy however many U.K. government bonds are needed to bring yields back down.

Source link

October 3, 2022