Tag Archives: energy and resources

Business

Shell posts profit of nearly $40 billion and announces $4 billion in buybacks

Leave a comment


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.

Read original article here

World

Nearly 220 million people in Pakistan without power after countrywide outage

Leave a comment


Islamabad, Pakistan
CNN
 — 

A nationwide power outage in Pakistan left nearly 220 million people without electricity on Monday, threatening to cause havoc in the South Asian nation already grappling with fuel shortages in the winter months.

The country’s Ministry of Energy said in a statement the country’s National Grid went down at 7.34 a.m local time, “causing a widespread breakdown in the power system,” according to initial reports.

“System maintenance work is progressing rapidly,” the statement added.

A “limited number of grids” in the capital Islamabad and the city of Peshawar have had power restored, the ministry said.

It is unclear how long the outage will last and efforts are underway to restore power to various parts of the country.

In the city of Quetta, in Pakistan’s northern Balochistan province, the outage has affected all aspwects of daily life, including hospitals, markets and households.

“Due to unavailability of generators, services are affected in health centers in suburbs of Quetta city,” the director of Balochistan’s health department, Dr. Imran Zarkoon, told CNN.

Zaheer, the owner of a clothing ship in Quetta, said they have no backup and have been waiting for the electricity to be restored for hours.

“The whole market of Jinnah road is practically shut, as without electricity customers do not turn to shops,” he said.

The outage comes as the country’s fragile economy continues to struggle with multiple challenges, including a severe energy crisis.

Earlier this month, Prime Minister Shehbaz Sharif ordered all federal departments to reduce their energy consumption by 30%, while his government ordered all markets to close by 8.30 p.m. and restaurants by 10 p.m.

The decision to reduce energy usage came as Pakistan announced its foreign exchange reserves had dwindled to alarmingly low levels. In December, the country’s total liquid foreign exchange reserves stood at $11.7 billion, which is half the amount it held at the start of last year, according to the central bank.

Monday’s power outage is Pakistan’s most widespread power shutdown since 2021, when the nation plunged into darkness for hours after a “sudden plunge in the frequency in the power transmission system.”

Read original article here

US

California storm: 90% of residents are under flood watches as another storm threatens mudslides, power outages and deadly inundation

Leave a comment



CNN
 — 

Much of California can’t soak up another drop of rain. Yet the state is getting pummeled again with torrential downpours and ferocious winds, causing power outages and treacherous travel conditions.

More than 34 million Californians were under a flood watch Monday – about 90% of the state’s population and 10% of the US population.

Parts of the central California coast got walloped with 1 to 1.25 inches of rainfall per hour, the Weather Prediction Center said. Extensive rainfall there Monday triggered significant flooding, mudslides, debris flows and closed roadways.

Widespread rainfall totals of 3 to 6 inches have been observed from just south of San Francisco to just north of Los Angeles. Isolated amounts of 6 to more than 10 inches have been observed in the higher terrain near the coast.

As the rain shifted slowly to the south Monday toward Los Angeles, the National Weather Service there warned of the risk of flooding, debris flow in land scarred by recent wildfires and an increased risk of rock and mudslides in mountains and on canyon roads.

And hurricane-force wind gusts topping 74 mph thrashed states across the western US. More than 37 million people were under wind alerts Monday in California, Nevada, Oregon, Washington, Utah, Arizona and Wyoming.

A 132-mph wind gust lashed Oroville, California. Residents in Washoe City, Nevada, were hit with a 98-mph gust, the Weather Prediction Center said.

TRACK THE STORMS

“Expect widespread power outages, downed trees and difficult driving conditions,” the National Weather Service in Sacramento tweeted. “Now is the time to prepare if you have not already!”

Almost 92,000 homes, businesses and other power customers had no electricity Monday evening, according to PowerOutage.us.

And the central California coast could be at risk of a tornado, CNN Meteorologist Dave Hennen said.

The severe weather is part of a relentless parade of atmospheric rivers slamming the West Coast.

California is now extremely vulnerable to flooding because much of the state has been scarred by historic drought or devastating wildfires – meaning the land can’t soak up much rainfall.

And after an onslaught of storms since late December led to deadly flooding, Gov. Gavin Newsom warned Sunday: “We expect to see the worst of it still in front of us.”

Two bouts of major rainfall are expected to hammer the West Coast over the next few days – without much of a break between events for the water to recede.

The system is part of an atmospheric river – a long, narrow region in the atmosphere that can transport moisture thousands of miles, like a fire hose in the sky.

The atmospheric river slamming California on Monday could result in a 1-in-50 year or 1-in-100 year rainfall event near Fresno, the Weather Prediction Center said.

A moderate risk – level 3 of 4 – of excessive rainfall covers over 26 million people in California, including in San Francisco, Sacramento, Los Angeles and Fresno, where rain could fall at 1 inch per hour.

The San Lorenzo River in Santa Cruz County has risen 14 feet in just over four hours and is in major flood stage. Parts of the county will experience “widespread flooding at shallow depths,” and the city of Santa Cruz will have serious flooding, according to data from the National Oceanic and Atmospheric Administration and US Geological Survey.

The threat will shift further south Tuesday, with a level 3 of 4 risk centered over Los Angeles.

“While some of the forecast rain totals are impressive alone, it is important to note that what really sets this event apart are the antecedent conditions,” the National Weather Service office in San Francisco said.

“Multiple systems over the past week have saturated soil, increased flow in rivers and streams, and truly set the stage for this to become a high impact event.”

In Sacramento County, officials warned “flooding is imminent” and issued evacuation orders for the Wilton community near the Cosumnes River before roads become impassable.

Wilton residents also had to evacuate during last week’s storm, when exit routes flooded quickly, officials said.

El Dorado, Monterey, Santa Cruz and Santa Clara and Alameda counties have issued evacuation warnings or recommendations for some areas due to possible flooding and other safety risks as forecasters warned of swelling rivers.

Residents in all areas of Montecito, the city of Santa Barbara and parts of Carpinteria and Summerland are being ordered to evacuate immediately due to the threat of the ongoing storm, the Santa Barbara County Incident Management Team said on Monday evening.

“LEAVE NOW! This is a rapidly evolving situation,” the team said in a release.

Montecito is a haven for the rich and famous, including Prince Harry and his wife, Meghan, Duchess of Sussex; Oprah Winfrey and Ellen Degeneres. Monday marks exactly five years since heavy rains in the area caused deadly mud- and landslides.

Santa Barbara County authorities are advising residents to “be prepared to sustain yourself and your household for multiple days if you choose not to evacuate, as you may not be able to leave the area and emergency responders may not be able to access your property in the event of road damage, flooding, or a debris flow.”

Newsom on Sunday asked the White House for an emergency declaration to support response and recovery efforts.

“We are in the middle of a deadly barrage of winter storms – and California is using every resource at its disposal to protect lives and limit damage,” Newsom said in a statement. “We are taking the threat from these storms seriously, and want to make sure that Californians stay vigilant as more storms head our way.”

San Francisco Mayor London Breed on Monday issued a Local Proclamation of Emergency due to the ongoing series of winter storms that began New Year’s Eve, according to a news release from his office.

This storm system arrives on the heels of a powerful cyclone that flooded roads, toppled trees and knocked out power last week to much of California. Earlier, a New Year’s weekend storm system produced deadly flooding.

At least 12 Californians have died from “storm-related impacts” such as flooding since late December, the governor’s office said.

In San Luis Obispo County, dive teams from the sheriff’s office and Cal Fire rescuers were searching Monday for a 5-year-old child reported to have been swept away in flood waters near the Salinas River in San Miguel.

“Floods kill more individuals than any other natural disaster,” California Emergency Services Director Nancy Ward said Sunday. “We’ve already had more deaths in this flood storm since December 31 than we had in the last two fire seasons of the highest fire acreage burned in California.”

Flood-related deaths can happen when drivers attempt to cross standing water.

“Just a foot of water and your car’s floating. Half a foot of water, you’re off your feet. Half foot of water, you’re losing control of your vehicle,” Newsom said.

“We’re seeing people go around these detours because they don’t see any obstacles – they think everything is fine, and putting their lives at risk or putting first responders lives at risk.”

For anyone who doesn’t need to travel during the peak of this storm, “please don’t,” California Secretary of Natural Resources Wade Crowfoot said. “Be prepared for power outages and other interruptions. Have those flashlights, the candles, batteries, charge cell phones at the ready.”

Already, flooded roads, toppled trees and downed power lines are making travel difficult, California Highway Patrol said. Some fallen trees crushed cars and homes over the weekend. On Monday, portions of the Pacific Coast Highway – US 101, a major north-south highway, were closed.

The Santa Barbara Airport, a tri-county regional airport, is closed because of flooding airport officials said Monday.

California is experiencing “weather whiplash,” going from intense drought conditions to now contending with its fifth atmospheric river, Newsom said.

Much of the state has already seen 5 to 8 inches of rain over the last week. Two to 4 more inches of rain are expected across the coasts and valleys – and even more in mountains and foothills through Tuesday.

Rising from swelling rivers could spill over and inundate communities.

The rainfall over the weekend brought renewed flood concerns for streams, creeks and rivers. The Colgan Creek, Berryessa Creek, Mark West Creek, Green Valley Creek and the Cosumnes River all have gauges that are either above flood stage or expected to be in the next few days.

“The cumulative effect of successive heavy rainfall events will lead to additional instances of flooding. This includes rapid water rises, mudslides, and the potential for major river flooding,” the National Weather Service said Monday.

The moisture is expected to sink southward Monday night, making flooding “increasing likely” over the Southern California coastal ranges Tuesday, the weather service said. Fierce winds are expected to accompany the storm as it pushes inland.

“Valley areas will likely see gusts as high as 45-50 mph, with gusts greater than 60 mph possible in wind prone areas,” the National Weather Service in Reno said. The Sierra Ridge could receive peak gusts between 130 to 150 mph Monday.

For those at higher elevations, intense snow and ferocious winds will be the biggest concerns.

Parts of the higher elevations in the Sierra Nevada have gotten more than 100” – or 8.3 feet – of snow in just the past few weeks, the Weather Prediction Center said.

Now, another 6 feet of snow is expected in some parts of the Sierra.

As the storm pushes inland, more than 5 feet of snow could fall along the Sierra Crest west of Lake Tahoe, the weather service said.

The heavy snow and strong winds could lead to near whiteout conditions on roads.



Read original article here

US

NFL’s Tennessee Titans delay game one hour as state deals with rolling power outages

Leave a comment



CNN
 — 

The NFL’s Tennessee Titans delayed its scheduled noon CT game by an hour due to rolling blackouts in the region, which have since ended, stemming from the winter storm and brutal cold.

“Due to the extreme weather and power outages affecting our region, kickoff for today’s game has been postponed one hour to 1 p.m. CT,” the Titans said in a statement.

“This decision was made in partnership with the NFL, Office of Emergency Management, Nashville Electric Service and the Mayor’s Office in an abundance of caution to ensure that the game would not negatively impact our community in any way. We are exploring every possibility to minimize non-essential power around the stadium.”

The Titans (7-7), losers of four straight games, began their game against the Houston Texans (1-12-1) at Nissan Stadium in Nashville at 1 p.m. CT. The temperature was 22 degrees at kickoff, making it the coldest game in Nissan Stadium history, according to the CBS broadcast.

The Tennessee Valley Authority, the federally owned electric utility company that powers seven states in the region, had directed local power companies to reduce their power load for periods on Friday and Saturday due to weather-related record-high demand and power generation issues.

Chief Operating Officer Don Moul said the agency “lost some generation” due to the extreme cold and high winds, and the authority urged residents to conserve power. Still, the TVA said Saturday it supplied more power in the past 24 hours than at any other time in its history.

The authority ended the rolling blackouts midday Saturday after temperatures rose slightly and the power system’s conditions improved, the TVA said.

“We recognize that these planned temporary disruptions are a challenge, but it was needed to maintain grid stability for 10 million people across seven states,” the authority said. “Thank you for doing your part, conserving energy, and helping us manage this extreme weather event.”

On Saturday morning, local power companies said that they were directed to interrupt power for short spurts. CDE Lightband, a power company out of Clarksville, Tennessee, said the TVA told it to interrupt power in 15-minute intervals.

Similarly, the Nashville Electric Service told customers Saturday morning to expect “rotating, intermittent power outages” in about 10-minute increments every one-and-a-half to two hours.

Amid the blackouts, Nashville Mayor John Cooper had urged the Titans to postpone their game, saying that “all non-essential businesses should reduce power usage.” He issued a follow-up tweet saying he appreciated the decision to delay the game an hour.

In general, prolonged cold snaps can overwhelm the power grid by simultaneously knocking out power supply and causing a sharp increase in demand as residents turn up the heat. For example, in Texas in February 2021, a winter storm and lengthy cold period caused mass outages in areas served by the Electric Reliability Council of Texas, leaving millions of residents in the cold and dark for nearly a week.

The TVA informed residents on Friday there would be rolling blackouts due to the winter storm, though that directive was later rescinded.

Memphis Mayor Jim Strickland told CNN on Friday hospitals and medical offices were exempt. The TVA did not anticipate the extent of the situation prior to the storm, he said.

“This is a real struggle. This has never happened in my lifetime, this hasn’t happened in Memphis in at least 50 years,” Strickland said Friday.

On Saturday morning, he said the rolling blackouts across Memphis impacted more than 50,000 people for about 30 to 60 minutes at a time, likely two to three times per day.

“TVA has always prided itself on reliability. This is the first time TVA has required rolling blackouts,” Strickland told CNN. “It’s going to take a deeper dive into the reasons this happened.”

Strickland said that temperatures are not expected to rise above 32 degrees Fahrenheit for at least the next two days.

The outages and rolling blackouts have affected much of the US, particularly the Southeast.

As of 11 a.m. ET Saturday, Tennessee has about 250,000 customers without power, and North Carolina has over 380,000 customers without power, according to the website PowerOutage.US. In Davidson County, Tennessee, which includes Nashville, more than 60% of customers were without power, the site says.

Duke Energy, the electric power company headquartered in Charlotte, North Carolina, on Saturday morning announced “emergency outages” as extremely cold temperature drive unusually high energy demand across the Carolinas.

“We have begun short, temporary power outages. These emergency outages are necessary to protect the energy grid against longer, more widespread outages. We appreciate your patience,” the energy provider said in a tweet.



Read original article here

US

Heavy snow to bombard millions in Northeast this weekend as South recovers from deadly tornadoes 5.5

Leave a comment



CNN
 — 

The monstrous storm that walloped much of the US this week has now brought nor’easter conditions as it moves across New York and New England ahead of the weekend.

After many in the South were left grappling with power outages and smashed homes and businesses from a string of tornadoes earlier this week, officials and forecasters across several Northeastern states are warning of heavy snow that could pile up to a foot Friday.

In response to the massive storm system, New York Gov. Kathy Hochul warned residents of the hazardous road conditions the storm is threatening to bring as millions across in the Northeast are under winter weather alerts Friday.

“We urge everyone in the impacted regions to avoid unnecessary travel tonight and tomorrow,” Hochul said in a Thursday statement. “Work from home if possible, stay off the roads, and make sure you and your loved ones remain vigilant.”

In neighboring Pennsylvania, state transportation officials implored drivers to avoid unnecessary travel due to the low visibility caused by wind and heavy snow.

“Very heavy snowfall rates reaching 1 to 2 inches/hour will be likely across areas of interior New York and central New England,” the Weather Prediction Center at the National Weather Service said Thursday. “Dangerous travel conditions and scattered power outages are expected.”

Parts of eastern New York, Vermont, New Hampshire and Maine can also see between 18 and 24 inches of snow accumulate in local areas, according to the weather service. Already, parts of Pennsylvania, New Jersey and New York have seen several inches of snow, with some areas catching up to six inches.

The unrelenting storm system has cut a dangerous cross-country path since the beginning of week, bringing varying combinations of severe weather to different parts of the US.

Tornadoes in the South killed three people in Louisiana while also flattening many homes and other structures. Blizzard conditions in the Upper Midwest brought piles of snow and fierce winds that tore down power lines, leaving tens of thousands in the dark in freezing temperatures the week before Christmas.

States from the Rockies to the Upper Midwest – including Colorado, Wyoming, Montana, North Dakota, South Dakota, Nebraska, Minnesota and Wisconsin – saw more than a foot of snow this week.

Plus, dozens of tornadoes were reported across Mississippi, Louisiana, Florida, Texas, Alabama, Georgia and Oklahoma since Tuesday. The deadly storms claimed the lives of three people in Louisiana.

And in parts of the Mid-Atlantic, the storm brought a quarter inch of ice was reported Thursday morning to the Appalachian Mountains of West Virginia and Maryland, and about a tenth of an inch had built up in parts of Virginia.

More than 5 million people across portions of Pennsylvania, New York, Vermont, Maine and New Hampshire are under winter storm warnings Friday.

Heavy wet snow is expected to bombard the region, making travel miserable this weekend, according to the National Weather Service.

“For the interior Northeast, precipitation tonight and Friday will fall as snow and become heavy at times,” the weather service said.

Snow totals between 6 and 12 inches are forecast from central Pennsylvania north into interior Upstate New York, with up to 2 feet at areas with higher elevations, through Saturday.

Plus, major cities, including New York and Boston, can expect 1 to 2 inches of heavy rain from the nor’easter into the weekend before the storm system pulls away from the region Sunday,

Some communities along the coasts of New Jersey and Delaware are under flood alerts, though severe flooding is not expected.

The storm inflicted a slew of tornadoes in the South and blizzard conditions in the Upper Midwest, leaving about 100,000 homes and businesses in the dark across Minnesota, Wisconsin, West Virginia and Virginia as well as Pennsylvania of early Friday, according to Poweroutage.us.

Powerful winds whirled by blizzard conditions knocked down power lines in the Upper Midwest as temperatures in some areas plummeted to near or below freezing, leaving thousands without proper heating.

Meanwhile in Louisiana, Yoshiko A. Smith, 30, and her 8-year-old son, Nikolus Little, were killed Tuesday when a tornado struck Caddo Parish and destroyed their home, local officials said.

The family’s bodies were found far from where their house once stood, officials said. Autopsies have been ordered for both, the county coronor said.

A 56-year-old woman died after a tornado hit her home in St. Charles Parish, the Louisiana Department of Health said Wednesday.

Another tornado in northern Louisiana traveled through the town of Farmerville was rated an EF-3, with 140 mph winds, according to the National Weather Service. At least 20 people were injured, and the tornado demolished parts of an apartment complex and a mobile home park, Farmerville Police Detective Cade Nolan said.

The tornado, which moved through Union Parish Tuesday evening, was 500 yards wide at its largest point and was on the ground for more than 9 miles.



Read original article here

Business

US scientists reach long-awaited nuclear fusion breakthrough, source says

Leave a comment



CNN
 — 

For the first time ever, US scientists at the National Ignition Facility at the Lawrence Livermore National Laboratory in California successfully produced a nuclear fusion reaction resulting in a net energy gain, a source familiar with the project confirmed to CNN.

The US Department of Energy is expected to officially announce the breakthrough Tuesday.

The result of the experiment would be a massive step in a decadeslong quest to unleash an infinite source of clean energy that could help end dependence on fossil fuels. Researchers for decades have attempted to recreate nuclear fusion – replicating the fusion that powers the sun.

US Energy Secretary Jennifer Granholm will make an announcement Tuesday on a “major scientific breakthrough,” the department announced Sunday. The breakthrough was first reported by the Financial Times.

Nuclear fusion happens when two or more atoms are fused into one larger one, a process that generates a massive amount of energy as heat. Unlike nuclear fission that powers electricity all over the world, it doesn’t generate long-lived radioactive waste.

Scientists across the globe have been inching toward the breakthrough, using different methods to try to achieve the same goal.

The National Ignition Facility project creates energy from nuclear fusion by what’s known as “thermonuclear inertial fusion.” In practice, US scientists fire pellets that contain a hydrogen fuel into an array of nearly 200 lasers, essentially creating a series of extremely fast, repeated explosions at the rate of 50 times per second.

The energy collected from the neutrons and alpha particles is extracted as heat, and that heat holds the key to producing energy.

“They contain the fusion reaction by bombarding the outside with lasers,” Tony Roulstone, a fusion expert from the University of Cambridge’s Department of Engineering, told CNN. “They heat up the outside; that creates a shockwave.”

Even though getting a net energy gain from nuclear fusion is a big deal, it’s happening on a much smaller scale than what’s needed to power electric grids and heat buildings.

“It’s about what it takes to boil 10 kettles of water,” said Jeremy Chittenden, co-director of the Centre for Inertial Fusion Studies at Imperial College in London. “In order to turn that into a power station, we need to make a larger gain in energy – we need it to be substantially more.”

In the UK, scientists are working with a huge donut-shaped machine outfitted with giant magnets called a tokamak to try to generate the same result.

The missing mass converts to an enormous amount of energy. The plasma needs to reach at least 150 million degrees Celsius, 10 times hotter than the core of the sun. The neutrons, which are able to escape the plasma, then hit a “blanket” lining the walls of the tokamak, and their kinetic energy transfers as heat. This heat can then be used to warm water, create steam and power turbines to generate power.

Last year, scientists working near Oxford were able to generate a record-breaking amount of sustained energy. Even so, it only lasted 5 seconds.

Whether it’s using magnets or shooting pellets with lasers, the result is ultimately the same: Heat sustained by the process of fusing the atoms together holds the key to helping produce energy.

The big challenge of harnessing fusion energy is sustaining it long enough so that it can power electric grids and heating systems around the globe.

Chittenden and Roulstone told CNN that scientists around the globe now must work toward dramatically scaling up their fusion projects, and also bring the cost down. Getting it commercially viable will take years of more research.

“At the moment we’re spending a huge amount of time and money for every experiment we do,” Chittenden said. “We need to bring the cost down by a huge factor.”

However, Chittenden called this new chapter in nuclear fusion “a true breakthrough moment which is tremendously exciting.”

Roulstone said there’s much shows more work needs to happen to make fusion able to generate electricity on a commercial scale.

“The opposing argument is that this result is miles away from actual energy gain required for the production of electricity,” he said. “Therefore, we can say (it) is a success of the science but a long way from providing useful energy.”

Read original article here

World

Oil tankers are getting stuck in the Black Sea. That could become a problem

Leave a comment



CNN
 — 

A bottleneck is building across an important trading route for oil, which if left unresolved could knock global supply and boost prices at a fragile moment for energy markets.

As of Thursday, 16 oil tankers traveling south from the Black Sea were waiting to cross the Bosphorus strait into the Sea of Marmara, an increase of five from Tuesday, according to a report from Istanbul-based Tribeca Shipping Agency. A further nine tankers were waiting to cross southbound from the Sea of Marmara through the Dardanelles strait into the Mediterranean.

The snarl-up in waterways controlled by Turkey, which Turkish officials said is mostly affecting crude oil shipments destined for Europe, has caught the attention of UK and US government officials who are now in talks with Ankara to resolve the growing impasse.

The snag is linked to a Western price cap on Russian oil that came into effect on Monday. The cap is supposed to limit the Kremlin’s revenues without adding to stress on the global economy by reducing supply. But Turkey is insisting that vessels prove they have insurance that will pay out in light of the new sanctions, before allowing them to pass through the straits linking the Black Sea and Mediterranean.

Although currently causing no disruption to global oil supply and thus prices, the hold-up could become a problem if left unresolved, said Jorge Leon, senior vice president for oil market analysis at Rystad Energy. “This is a very popular route around the world for global trade and specifically for crude,” he told CNN Business.

Countries including Russia, Kazakhstan and Azerbaijan use the Turkish straits to get their oil to world oil markets.

The traffic jam in the Turkish straits arose following the imposition this week of the price cap on Russian oil. The cap bars ship owners carrying Russian oil from accessing insurance and other services from European providers unless the oil is sold for $60 a barrel or less.

In light of the cap, Turkish maritime authorities are concerned about the risk of accidents or oil spills involving uninsured vessels, and are preventing ships from passing through Turkish waters unless they can provide additional guarantees that their transit is covered.

In a notice issued last month by Turkey’s government ahead of the price cap, maritime director general Ünal Baylan said that given “catastrophic consequences” for the country in the event of an accident involving a crude tanker, “it is absolutely required for us to confirm in some way that their [protection and indemnity] insurance cover is still valid and comprehensive.”

The International Group of P&I Clubs, which provides protection and indemnity insurance for 90% of the goods shipped by sea, has said it cannot comply with the Turkish policy.

The Turkish government’s requirements “go well beyond the general information that is contained in a normal confirmation of entry letter” and would require P&I Clubs to confirm coverage even in the event of a breach of sanctions under EU, UK and US law, the UK P&I Club said in a statement.

Turkish officials say this position is “unacceptable” and on Thursday reiterated demands for letters from insurers. “The majority of the crude oil tankers waiting to cross the strait are EU ships and a majority of the petrol is destined for EU ports,” the Turkish maritime authority said in a statement.

“It is difficult to understand why EU-based insurance companies are refusing to provide this letter… for ships that belong to the EU, carrying crude oil to [the] EU when the sanctions in question have been set forth by the EU,” it added.

Western officials, clearly worried about potential disruption to oil supply, say they are in talks with Turkey’s government to resolve the situation.

US Deputy Treasury Secretary Wally Adeyemo told Turkish Deputy Foreign Minister Sedat Onal on a call that the price cap only applies to Russian oil and “does not necessitate additional checks on ships” passing through Turkish waters.

“Both officials highlighted their shared interest in keeping global energy markets well supplied by creating a simple compliance regime that would permit oil to transit the Turkish straits,” the Treasury Department said in a statement.

“The UK, US and EU are working closely with the Turkish government and the shipping and insurance industries to clarify the implementation of the Oil Price Cap and reach a resolution,” according to a statement from the UK Treasury.

“There is no reason for ships to be denied access to the Bosporus Straits for environmental or health and safety concerns,” it added.

Despite the backlog of tankers, the average waiting time to cross the Bosphorus strait is still well below where it was this time last year, according to Leon of Rystad Energy. “Given the reaction from UK and US officials, my hunch is that this is going to be resolved very soon,” he said.

-— Gül Tüysüz in Istanbul contributed to this article.



Read original article here

US

Moore County power: Investigators are zeroing in on 2 possible motives centered around extremist behavior in NC power stations attacks, sources say

Leave a comment



CNN
 — 

Investigators – who have found nearly two dozen shell casings from a high-powered rifle – are zeroing in on two threads of possible motives centered around extremist behavior for the weekend assault on two North Carolina electric substations, according to law-enforcement sources briefed on the investigation.

The news comes as the primary utility company in Moore County restored electricity to the final customers of the 45,000 homes and businesses that initially lost power.

Officials on Wednesday also announced a total of $75,000 in reward money for information leading to the arrest and conviction of the person or people responsible for Saturday’s attacks.

One thread involves the writings by extremists on online forums encouraging attacks on critical infrastructure. The second thread looks at a series of recent disruptions of LGBTQ+ events across the nation by domestic extremists.

The FBI and the NC State Bureau are assisting in the investigation.

investigators have no evidence connecting the North Carolina attacks to a drag event at the theater in the same county, but the timing of two events are being considered in context with the growing tensions and armed confrontations around similar LBGTQ+ events across the country, the sources told CNN.

In the past two years, anti-government groups began using online forums to urge followers to attack critical infrastructure, including the power grid. They have posted documents and even instructions outlining vulnerabilities and suggesting the use of high-powered rifles.

One 14-page guide obtained by CNN cited as an example the 2013 sniper attack on a high voltage substation at the edge of Silicon Valley that destroyed 17 transformers and cost Pacific Gas and Electric $15 million in repairs.

In that case, the shooter fired more than 100 bullets in about 20 minutes, disappearing a minute before police arrived. The case remains unsolved.

While investigators haven’t found a rifle in the North Carolina shootings, the casings still could offer critical evidence. A law enforcement source told CNN that the caliber of the bullets in the California incident is different from those used in North Carolina.

Investigators are taking into consideration that the timing of Moore County shootings – 7 p.m. on a Saturday night – coincided with the time a drag performance sponsored by the local LBGTQ+ community began, according to the sources. Audience members used their phone flashlights to light the stage for one last song, but after that the performance couldn’t continue due to the power outage, according to Sandhills PRIDE.

Officials have said the gunfire, which left much of the county without electricity for days, were a “malicious” and “intentional” attack. The two substations are about 10 miles apart.

No suspects in the outages have been announced.

Sheriff Ronnie Fields has said whoever fired at the substations “knew exactly what they were doing.” No group “has stepped up to acknowledge or accept they’re the ones who (did) it,” the sheriff said Sunday.

As of Wednesday morning there were 35,000 customers without power, but that number had decreased to 1,200 by the time a 4 p.m. news conference began, according to Duke Energy spokesperson Jeff Brooks. A few hours later the company’s website showed zero outages in the area.

Given the information, county officials said a nightly curfew will end for good at 5 a.m. Thursday.

Bullets recovered from the sites, and the brass shell casings found a short distance away, are the few pieces of physical evidence that investigators have.

Because of the heat generated in a high-powered rifle’s chamber during rapid fire, fingerprints are burned away – and nearly impossible to recover from spent casings. Still, the brass may offer valuable clues.

Investigators can enter the casings into the National Integrated Ballistic Information Network, a database from the Bureau of Alcohol, Tobacco, Firearms and Explosives. The database records three-dimensional images of shell casings and can match them to any other shell casings that may have been fired by the same gun at another crime scene or to the gun if the weapon is recovered.

The spot where the casings were found can give investigators a way to pinpoint the firing positions. Knowing where the shooter fired from could lead to discoveries such as shoe prints and tire tracks.

For now, schools are closed through Thursday, many stores and restaurants are shut, homes are without heating or running refrigerators, drivers are traversing intersections with no traffic lights.

A Red Cross-run emergency shelter was set up at the Moore County Sports Complex to help provide shelter, food, showers and other services to people impacted. It will remain as a shelter through noon on Thursday, officials said.

Nakasha Jackson, who came to the shelter to pick up some hot food, said the outage has been difficult for her 1-year-old child.

“No lights, no power, can’t really do nothing. The kid is scared of the dark,” she told CNN.

Jackson said sometimes she has to travel up to an hour one way to buy food. “It’s ridiculous. It should never have been done,” Jackson said.

Residents who rely on electricity-powered medical equipment have also seen their lives upended. One woman told CNN she came to the shelter because she had no power for her CPAP machine at night.

After two days of sleeping without it, she said she began to feel ill and came into the shelter for help.

Others have sought shelter fearing for their safety as they struggled to keep their homes warm.

“It’s different. It’s kind of hard to sleep, you know. But at the end of the day, I’d rather be somewhere where it’s warm, where we have food, where we’re taken care of than to be somewhere it’s freezing cold,” said Amber Sampson.

On top of having to stay at the shelter, Sampson hasn’t been able to work since Sunday after her employer also lost power – an issue that could end up costing her hundreds of dollars.

Authorities have expressed anger over the attack, with Carol Haney, mayor of Southern Pines – a town of about 15,900 residents that completely lost power – calling it a cruel and selfish act.

North Carolina Gov. Roy Cooper voiced concern over businesses and residents in nursing homes.

“When we look at all the money that’s being lost by businesses here at Christmastime, when we look at threats to people in nursing homes having lost power, hospitals having to run off generators and not being able to do certain kinds of operations at this point – all of those are deep concerns here, and we can’t let this happen,” the Democrat told CNN on Tuesday.

“This was a malicious, criminal attack on the entire community.”

Read original article here

World

The West just scrambled the oil market. What happens next is up to Russia

Leave a comment


London
CNN Business
 — 

Most Russian crude oil exports to Europe are now banned, marking the boldest effort yet by the West to pile financial pressure on President Vladimir Putin as his brutal war in Ukraine enters its tenth month.

The oil embargo, which was agreed upon in late May, took effect in the European Union on Monday. It was accompanied by a new price cap on Russian crude set by G7 countries. That’s designed to limit the Kremlin’s revenues while allowing countries such as China and India to continue to buy Russian oil, provided they don’t pay more than $60 a barrel.

What happens next will likely hinge on the response from Moscow, which has vowed not to cooperate with the price cap and could slash its production, rattling global energy markets. Global crude prices were up 2.6% on Monday as investors watched nervously for the next move.

Here’s what you need to know about the oil embargo, the price cap and the potential impact.

The European Union now prohibits Russian crude oil imports by sea, setting up the bloc to have phased out 90% of oil imports from Russia. It’s a huge move given that Europe received roughly a third of its oil imports from Russia in 2021. More than half of Russia’s exports went to Europe 12 months ago.

There are a few exceptions. Bulgaria received a temporary carve-out. The embargo also doesn’t target imports via pipeline. That means the Druzhba pipeline can continue to supply Hungary, Slovakia and the Czech Republic. (Germany and Poland are working to end pipeline imports from Russia as soon as possible.)

But the embargo is significant. In 2021, the EU imported €48 billion ($50.7 billion) worth of crude oil and €23 billion ($24.3 billion) of refined oil products from Russia. Two-thirds of those imports arrived by sea.

A ban on Russian refined oil products, such as diesel fuel, imported by sea will launch in early February.

The European Union, plus the other members of the G7 — the United States, Canada, Japan and the United Kingdom — and Australia also agreed on Friday to cap the price of Russian crude oil at $60 a barrel, a policy aimed at Moscow’s other customers. This measure took effect Monday, too.

The price cap, which can be adjusted over time, is designed to be enforced by companies that provide shipping, insurance and other services for Russian oil. If a buyer pays more than the cap, they would withhold their services, in theory preventing the oil from being shipped. Most of these firms are based in Europe or the United Kingdom.

Despite unprecedented sanctions from the West, Russia’s economy and the government’s coffers have been padded by its lucrative position as the world’s second largest exporter of crude oil behind Saudi Arabia.

In October, Russia exported 7.7 million barrels of oil per day, just 400,000 barrels below pre-war levels, according to the International Energy Agency. Revenues from crude oil and refined products currently stand at $560 million per day.

By quickly phasing out imports, Europe hopes to limit inflows to Putin’s war chest, making it harder for him to continue his war in Ukraine.

But countries like China and India have stepped in buy surplus barrels. That’s where the price cap comes in.

G7 countries don’t want Russian oil taken off the market entirely, since that would push up global prices at a time when high inflation is hurting their economies. By enacting a price cap, they hope that can keep barrels flowing, but make the business less profitable for Moscow.

That’s far from certain. Countries like Poland and Estonia wanted a lower price cap, emphasizing that $60 is too close to the current market price for Russian oil. At the end of September, Russian Urals crude was trading just under $64 a barrel.

“Today’s oil price cap agreement is a step in right direction, but this is not enough,” Estonian foreign minister Urmas Reinsalu tweeted Friday. “Why are we still willing to finance Russia’s war machine?”

Enforcement could also prove difficult. Russia and its customers could start using more ships and insurance providers outside Europe and the United Kingdom to circumvent the rules, increasingly relying on what’s termed a “shadow fleet.”

“Capacity in that fleet has been growing, and it could probably handle Russian volumes for a while,” said Richard Bronze, head of geopolitics at Energy Aspects, a research firm.

Kremlin spokesperson Dmitry Peskov said Monday that Moscow will “not recognize any price caps.” Russian Deputy Prime Minister Alexander Novak said Sunday that Russia would not export oil to countries adhering to the cap, even if that will mean cutting production.

Oil prices have fallen sharply since the spring as fears about a global recession that may hit demand have come to the fore. Now, all eyes are on Russia’s response. Peskov said the price cap was a step towards “destabilizing the world energy markets.”

Moscow needs to find replacement customers for 1.1 million barrels per day of crude that had still been flowing to Europe, according to the IEA. That may not be easy, especially as coronavirus restrictions and a growth slowdown in China affect demand from the world’s second biggest economy.

The price cap adds to the uncertainty. Would-be customers may decide buying Russian cargoes has become too risky and complex, taking another batch of buyers off the market.

As the Kremlin has threatened, Russia may reduce its oil output as a result. The IEA has estimated Russia will slash output by an additional 1.4 million barrels per day by early 2023.

Other factors will dictate prices, too. Rare protests in China have raised questions about the country’s commitment to its “zero-Covid” policy, and demand could increase if its economy picks up pace.

The Organization of the Petroleum Exporting Countries, or OPEC, could also alter its output. The cartel on Sunday decided to stick with previously announced production cuts, giving it more time to assess the effects of the embargo and the price cap.

Europe’s embargo on refined oil products in February could also be a flash point for energy prices, since the region remains dependent on Russian diesel. Finding alternative sources in just two months may be tricky.

— Anna Chernova contributed reporting.



Read original article here

US

Moore County: FBI joins investigation into North Carolina power outage caused by ‘intentional’ attacks on substations as officials work to determine a motive and suspect

Leave a comment



CNN
 — 

With no suspects or motive announced, the FBI is joining the investigation into power outages in a North Carolina county believed to have been caused by “intentional” and “targeted” attacks on substations that left around 40,000 customers in the dark Saturday night, prompting a curfew and emergency declaration.

The mass outage in Moore County turned into a criminal investigation when responding utility crews found signs of potential vandalism of equipment at different sites – including two substations that had been damaged by gunfire, according to the Moore County Sheriff’s Office.

“The person, or persons, who did this knew exactly what they were doing,” Moore County Sheriff Ronnie Fields said during a Sunday news conference. “We don’t have a clue why Moore County.”

Fields said multiple rounds were fired at the two substations. “It was targeted, it wasn’t random,” he said.

The sheriff would not say whether the criminal activity was domestic terrorism but noted “no group has stepped up to acknowledge or accept they’re the ones who [did] it.”

Authorities announced a mandatory curfew from 9 p.m. until 5 a.m., starting Sunday night, with Fields saying the decision was made to protect residents and businesses.

In addition to the FBI, the North Carolina State Bureau of Investigation has joined the investigation, officials said.

More than 33,000 customers were still in the dark across the county Sunday evening, the Duke Energy outage map showed. For some, the outage may stretch into Thursday, officials said, upending life for tens of thousands.

All schools in the county will be closed Monday and authorities have opened a shelter running on a generator.

Traffic lights are also out, and while a few stores with generators were able to open their doors, several businesses and churches in Moore County were closed Sunday, CNN affiliate WRAL reported.

“We were just getting over Covid. And now this,” the sheriff said, adding, “It’s gonna hurt all of our restaurants and businesses.”

Inside people’s homes, it’s become difficult to keep the cold out.

“We have a six-month-old baby in the house. We’re out of heat. We are trying to get heat for her,” Carthage resident Chris Thompson told WRAL.

Chilly temperatures, with lows in the 30s, were expected in the area overnight Sunday with highs in the 50s and a chance of rain expected Monday, according to the National Weather Service. Moore County is in central North Carolina, about 50 miles northwest of Fayetteville.

Mapbox

The estimated cost of the substation damage is in the millions, the sheriff said Sunday.

The damage has been significant and rerouting power isn’t an option, said Jeff Brooks, principal communications manager for Duke Energy.

“Equipment will have to be replaced,” Brooks said. “We’re pursuing multiple paths of restoration so that we can restore as many customers as quickly as possible. Recognizing that, we are looking at pretty sophisticated repair with some fairly large equipment.”

In addition to the gunfire damage at the substations, a gate at one of the locations appears to have been taken off its hinges, Asst. Chief Mike Cameron of the Southern Pines Fire and Rescue Department told CNN.

While it’s unclear what motivated the alleged vandalism, the sheriff on Sunday addressed rumors circulating on social media that the attack was an attempt to thwart a local drag show.

Fields said investigators “have not been able to tie anything back to the drag show,” which was scheduled in the town of Southern Pines at 7 p.m. Saturday, around the time the power went out.

The county declared a state of emergency to protect residents and property and maintain public services, authorities said. The countywide curfew is expected to stay in effect nightly while the emergency declaration is in effect.

“It is going to be very, very dark and it’s going to be chilly tonight, and we don’t need to have anyone out on the streets and that is the reason for our curfew,” North Carolina state Senator Tom McInnis said during the news conference. “Please stay home tonight … the roads are dangerous.”

The emergency order also encourages residents to conserve fuel.

With streets in the dark, the area has seen increased emergency calls and vehicle accidents are being reported because traffic lights are out, Cameron told CNN.

People who rely on oxygen have also placed emergency calls, he added.

A shelter was opened at the Moore County Sports Complex, and trailers with bathroom and shower facilities are being brought in, Moore County Manager Wayne Vest said.

As for schools, it’s unclear how long campuses will stay closed. Moore County Superintendent Tim Locklair said decisions regarding school openings for the remainder of the week will be made on a day-by-day basis.

Read original article here