Written by rjs, MarketWatch 666
Here are some more selected news articles about the oil and gas industry from the week ended 08 August 2020. Go here for Part 1.
This is a feature at Global Economic Intersection every Monday evening.
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EMISSIONS: Methane plume menaces Navajo as EPA weakens safeguards — Thursday, August 6, 2020 — EPA is preparing to finalize a rule later this month that would significantly lighten requirements for fossil fuel producers and remove the regulations entirely for natural gas transmission and storage facilities. The agency’s proposed replacement would permit the industry to conduct fewer searches for methane leaks and reduce remediation for a broad swath of the oil and gas sector. It would also rule out the possibility that older oil and gas wellheads would become subject to regulation in the future. But Native American advocates on a June 30 teleconference stressed that those changes would put their communities at risk by undermining air quality and public health on and near Navajo Nation tribal lands in New Mexico. The region, which has been the site of oil, gas, coal and uranium production for a century, has the highest concentration of methane emissions in the U.S. Julia Bernal of Pueblo Action Alliance said she told officials with EPA and the White House Office of Management and Budget that the federal government had neglected to look at the damage that scrapping the methane rules would do to people in the Four Corners region. The area, which straddles the borders of Utah, New Mexico, Colorado and Arizona, is home to hundreds of thousands of Native Americans. “There’s already a huge methane cloud that sits over the Four Corners area in the Southwest,” Bernal said in an interview. “Indigenous people have raised those concerns. How come that hasn’t been addressed?” EPA’s removal of federal methane curbs for new oil and gas wells might have an outsize impact on the San Juan Basin of northwestern New Mexico. That’s because the Trump administration’s rollback is designed to head off future regulations for existing oil and gas infrastructure.The basin is an older oil field that saw declining production even before the coronavirus pandemic caused a massive contraction in the sector this spring. Many of the wells there might not have been covered under EPA’s methane rule, known as a new source performance standard, because they’re too old.But they would have been regulated under a rule tailored to cover existing infrastructure. If EPA gets its way, that rule may never be written (Climatewire, Aug. 15, 2019). Navajo Nation President Jonathan Nez submitted comments to EPA last year opposing the methane rule rollback. He argued that it would leave transmission and storage infrastructure on Navajo lands unregulated for harmful pollutants. He also said the Navajo stand to see adverse impacts from climate change.Data from the Environmental Defense Fund shows that San Juan County, where more than half the Native American population lives within a half-mile of a production site, is second in New Mexico only to the Permian Basin for its methane levels. The American Lung Association’s 2020 State of the Air report, which ranks counties’ ozone and airborne particulate pollution levels, or smog, gave San Juan County an F for ozone. It lacked data to assess its particle pollution.
Interior proposes easing royalty calculations for public lands drilling – The Interior Department on Friday proposed a new rule that would allow oil and gas companies to pay less money to the government in exchange for producing energy on public lands by changing how these royalties are calculated. The proposal would allow oil and gas companies to deduct more for transportation and processing costs from the fees they pay. It would also use an average weekly benchmark price for the commodities rather than the highest weekly benchmark prices to assess royalty payments for certain sales. Proponents say this will ease burdens on regulated industries and promote energy independence. “This proposal provides regulatory certainty and clarity to States, Tribes and stakeholders, removing unnecessary and burdensome regulations for domestic energy production,” Interior Secretary David Bernhardt said in a statement. Opponents argue that the changes unfairly let companies pay less money to the taxpayers. “David Bernhardt all along has had one job to do and that is to give as many handouts as possible to his former clients in the oil and gas industry,” said Aaron Weiss, the deputy director of the Center for Western Priorities. The proposed rule would lessen royalties paid by some oil companies by allowing them to ask the government for transportation cost allowances that exceed the current cap of 50 percent of the oil’s royalty value. It would also let some gas companies pay fewer fees by allowing them to ask the government for processing cost allowances that exceed the current cap of 66 2/3 percent. The department estimated that these changes would result in the oil industry paying the government $11,000 less and the gas industry paying $135,000 less per year. This part of the proposal mirrors changes requested by oil lobbying group the American Petroleum Institute (API) last year.
US senators aim to ease pipeline permitting after latest Keystone XL setback – – US Senate Republicans from energy-producing states are pushing for infrastructure permitting reforms after a fast-track program came under court challenge this year and became the latest roadblock for the Keystone XL heavy crude pipeline. Senator John Cornyn of Texas introduced Aug. 4 a bill to amend the Federal Water Pollution Control Act “to clarify certain activities that would have been authorized under Nationwide Permit 12 and other Nationwide Permits,” according to the preliminary text of the bill. Co-sponsors include senators from Alaska, Oklahoma, Montana, North Carolina, North Dakota, West Virginia, and Wyoming. Katie Bays, managing director of FiscalNote Markets, said the co-sponsors signal that the measure is likely aimed at the Northern Plains Resource Council lawsuit against the US Army Corps of Engineers. In that case, a Montana judge in April vacated the Corps of Engineers’ NWP12 program and prevented the Corps from using it to authorize construction across waterways. The US Supreme Court later allowed the permits to resume during the appeals process, except in the case of TC Energy’s long-delayed Keystone XL pipeline project from Alberta to Nebraska. TC Energy said July 30 that it intends to pursue “other permitting means” to authorize waterway crossings and get the project back on track. Bays said the bill’s sponsors likely want to ensure that pipelines have access to NWP12 permitting even if a future administration makes a decision that pipelines should be permitted using the more onerous process of individual permitting. The American Petroleum Institute said the bill would bring “an efficient, short-term solution to restore regulatory certainty and allow continued development of critical infrastructure projects affected by recent federal court decisions” by ensuring the Corps and project owners could continue to rely on NWP12. Bays predicted the Cornyn bill may move through the Environment and Public Works Committee, but does not have a realistic chance of passage by the full Senate. “It looks like political messaging to me, and certainly we’ve seen the White House use the pipeline industry and energy broadly as a political signal in recent weeks,” she said.
Two Keystone XL Construction Workers Test Positive For Coronavirus – The developer of the Keystone XL oil pipeline confirmed Aug. 5 that two of its workers in northern Montana tested positive for the novel coronavirus last week. In a statement, pipeline developer TC Energy says the first pipe yard worker tested positive at a local clinic last July 28 and the company took protective measures when it learned about the results. That included shutting down activity at the site in Phillips County. The company says it then used contact tracing and identified six close contacts. One tested positive. The company says all are in quarantine at home. They will not return to the worksite as construction is expected to wrap up at that location in the coming days. A spokesperson from the Phillips County Health Department says there’s still a lot of unknowns, but that the two workers are not connected to five county residents who Phillips County announced Tuesday tested positive. Phillips County is now subject to Gov. Steve Bullock’s mandate that requires face coverings be worn in indoor spaces open to the public. TC Energy started construction on the highly disputed 1,200 (twelve-hundred) mile crude oil pipeline in April. At the time, it met with backlash from nearby Native American tribes, who worried workers could bring coronavirus into the area. Bozeman-based Barnard Construction contracted with workers from various locations. In a statement, TC Energy said that the workers were quarantined before beginning work.
Appeals Court Halts Dakota Access Shutdown Order -The controversial Dakota Access Pipeline won a reprieve Wednesday when an appeals court canceled a lower court order mandating the pipeline be shut down and emptied of oil while a full environmental impact statement is completed. The shutdown order, which would have gone into effect Wednesday, marked the first time a major oil pipeline was court ordered to cease operations for environmental reasons. But while its reversal is disappointing for pipeline opponents, Wednesday’s decision was not wholly favorable for the pipeline, either. The court refused to halt the initial order for a new environmental review of the pipeline’s crossing under the Missouri River, where the Standing Rock Sioux Tribe fears it will pollute its drinking water and sacred lands if it leaks. “We’ve been in this legal battle for four years, and we aren’t giving up this fight,” Standing Rock Sioux Tribe Chairman Mike Faith said in an Earthjustice press release. “As the environmental review process gets underway in the months ahead, we look forward to showing why the Dakota Access Pipeline is too dangerous to operate.” In its ruling, the U.S. Court of Appeals for the District of Columbia Circuit put the question of whether the pipeline could continue to operate without a permit back to the Trump administration, Bloomberg News reported. It said it expected the Army Corps of Engineers to clarify the issue. “It’s interesting what the court did here,” Earthjustice lawyer Jan Hasselman, who represents the Standing Rock Sioux Tribe, told Bloomberg. “While the focus has been on this judicially imposed shutdown order, the bigger picture is the environmental impact statement and whether a permit will be reissued under the next administration.” Hasselman argued that the pipeline is now operating illegally, and, if the Army Corps of Engineers decides to let it keep running while a review is completed, the issue will return to court. “[W]e are confident that it will be shut down eventually,” he said in the press release.
PIPELINES: Army Corps moves to split utilities from streamlined permits — Tuesday, August 4, 2020 —The Army Corps of Engineers is proposing to separate oil and gas pipelines from its streamlined permits for utilities – a move that follows a court battle over the program.
Santa Barbara County releases environmental impact report for ExxonMobil trucking project – Santa Barbara County recently released an environmental analysis reviewing ExxonMobil’s proposal to transport oil on local roadways using tanker trucks so that it can resume the operation of three offshore oil rigs and a processing facility. The final supplemental environmental impact report the county made public on July 29 assesses ExxonMobil’s plans to move about 11,200 barrels of oil per day on 70 trucks through most of Santa Barbara County on highways 101 and 166. This proposal would allow ExxonMobil to resume operations at its Santa Ynez Unit, a processing facility that has remained offline since the Plains All American Pipeline was shut off after a spill in 2015. Shortly after releasing the report, a coalition of environmental groups released a statement pushing back on the findings. “The county’s final environmental impact report fails to disclose the devastating impacts that will result if ExxonMobil is allowed to resume oil drilling in the Santa Barbara Channel and truck oil along our scenic highways,” Environmental Defense Center Chief Counsel Linda Krop said in a statement. “ExxonMobil’s proposal will result in more oil spills, air pollution, and increased climate change at a time when we need to pursue clean energy alternatives.” During the 2015 oil spill, which occurred near Refugio State Beach, nearly 3,000 barrels of crude oil poured into the ocean, killing birds, fish, and other marine life. Earlier this year, Plains All American Pipeline reached a civil settlement with the federal government that required it to pay more than $60 million in penalties and damages, according to a March statement from the U.S. Environmental Protection Agency. ExxonMobil is pitching this trucking proposal as a temporary solution to resume operations at its Santa Ynez Unit until the pipeline is replaced. According to the report, Plains All American Pipeline is in the process of applying for a permit to replace the pipeline, and if it’s successful, ExxonMobil would resume transporting oil via the pipeline and the trucking would stop.
California greenlights ‘Orwellian’ solar-powered fracking scheme — Steve Horn – California-based multinational oil company Chevron landed two rounds of drilling permits from Gov. Gavin Newsom this summer – evidence, climate advocates say, that Newsom is not committed to tackling the climate crisis. The permits bolster Chevron’s position in the Lost Hills Oil Field, the sixth most prolific field in industry-heavy Kern County, and will shift drilling in the field largely towards using power from solar panels. One critic called the way the permits use climate crisis rhetoric “Orwellian,” incorporating solar power into drilling operations to expand the use of fracking and oil production. The variety of oil extracted in California is among the most greenhouse gas intensive in the world. The town of Lost Hills has a population of 2,500. The community is 97% Latino, and over 27% of people living there have incomes below the poverty threshold. Environmental justice advocates say the new permits, awarded during a pandemic disproportionately impacting the state’s Latino community in a predominantly farmworker town, further call into question Newsom’s commitment to environmental justice. A representative from Greenpeace USA did not mince words, calling the new fracking permits an example of “environmental racism.” “These new permits, like the others, will further exacerbate air pollution and poison Black and Brown communities, worsening the dual public health crises they face,” said Greenpeace spokesperson Katie Nelson in a press release. “It’s long past time to end the practice of treating California’s Black, Brown, and Indigenous communities as ‘sacrifice zones.’” According to a 2015 report by the groups Earthworks and the Clear Water Fund, the town of Lost Hills has high levels of airborne toxic chemicals, including methane, acetone, dichlorodifluoromethane and acetaldehydes. Those chemicals come from drilling and other oil industry infrastructure like that in the nearby oil field. Recent studies by bothHarvard University and Stanford University have found higher COVID-19 case numbers in communities situated near areas with high industrial pollution levels.
Alaska Tribes Petition to Preserve Tongass National Forest Roadless Protections – Last week, nine native Alaska tribes filed a petition calling on the U.S. Department of Agriculture to halt the removal of protections for the Tongass National Forest, the country’s largest reserve of public woodlands, which the tribes say is vital to their livelihoods. Currently, more than half of the forest’s 16.7 million acres are protected under the Roadless Rule, which, since 2001, has prohibited road building and commercial logging in 58 million acres of U.S. forests. But the Trump Administration is seeking to open the old-growth forest for logging and has requested that the U.S. Forest Service, part of the USDA, lift the rule from the Tongass, a process that is in its final stages. A decision is expected later this summer. The forest is critical to indigenous economies in southeastern Alaska. Tribal members hunt for deer and moose, fish for salmon, gather mushrooms, berries and medicinal plants, and use the massive trees to carve canoes and totem poles. The forest is “priceless,” said Joel Jackson, president of the Organized Village of Kake, one of the tribes that signed the petition. “It’s basically our grocery store.”Conventional grocery shopping is not feasible in the highly isolated region, Jackson said, with prices for food running two or three times more than they would in the city. Logging and road building in the Tongass could deplete and disrupt plant and animal populations in the ecosystem that the tribes rely on, the petition says. “Not only is it devastating for the land, but for our people and for the survival of our culture,” said Marina Anderson, tribal administrator for the Organized Village of Kasaan, which also joined the petition. “It’s really essential that we keep these old growth timber stands intact.” A spokesperson for the USDA said agency officials are refraining from comment until after they have reviewed the July 21 petition. President Trump instructed Secretary of Agriculture Sonny Perdue to remove the Tongass from the Roadless Rule in August – a move that Alaska leaders favor. “With the Trump administration’s help, the devastating Clinton-era roadless rule may soon be history, and the Tongass restored to a managed multi-use forest as it was always intended,” Alaska Gov. Mike Dunleavy (R) said in his State of the State address in January. In a September 2019 op-ed for The Washington Post, Sen. Lisa Murkowski (R-Alaska) claimed that the Tongass is sufficiently protected without the Roadless Rule.
BP reports second-quarter loss after major write downs, halves dividend — Energy giant BP reported a significant loss for the second quarter on Tuesday, after downgrading the value of some of its assets on expectations of lower commodity prices. Second-quarter underlying replacement cost profit, used as a proxy for net profit, came in at a loss of $6.7 billion, meeting expectations of analysts polled by Refinitiv. That compared with a net profit of $800 million in the first quarter of the year. BP also announced that it had halved its dividend to 5.25 cents per share for the quarter, compared to 10.5 cents per share for the first three months of the year. The reported loss for the quarter was $16.8 billion, which includes a post-tax charge of $10.9 billion for non-operating items. It compares to a loss of $4.4 billion over the first three months of 2020. The breakdown of this figure included $9.2 billion in impairments across the group, largely due to BP’s revised forecast for oil and gas prices over the next 30 years, and $1.7 billion of exploration write-offs. The U.K.-based oil and gas company said last month that it could incur non-cash impairment charges and write-offs in the second quarter, estimating an aggregate range of $13 billion to $17.5 billion after tax. At the time, BP said the “enduring” impact of the coronavirus pandemic had prompted the firm to lower its oil and price forecasts through to 2050. “These headline results have been driven by another very challenging quarter, but also by the deliberate steps we have taken as we continue to reimagine energy and reinvent bp,” Bernard Looney, CEO of BP, said in a statement on Tuesday. “In particular, our reset of long-term price assumptions and the related impairment and exploration write-off charges had a major impact. Beneath these, however, our performance remained resilient, with good cash flow and – most importantly – safe and reliable operations,” he added. International benchmark Brent crude futures traded at $44.02 a barrel on Tuesday morning, down more than 0.3%, while West Texas Intermediate (WTI) crude futures stood at $40.89, around 0.3% lower. Analysts had anticipated that “Big Oil” companies, referring to the world’s largest energy majors, were likely to report “horrendous” second-quarter results as coronavirus lockdown measures coincided with an unparalleled demand shock and significantly weaker oil and gas prices. However, some companies have been able to limit the damage as their trading divisions have capitalized on heightened market volatility.
BP Pledges to Cut Oil and Gas Production 40 Percent by 2030, but Some Questions Remain – Energy giant BP says it will cut its fossil fuel production significantly over the next decade, marking the first commitment from a major global oil company to such short-term production declines, which are critical to reining in global greenhouse gas emissions. The company said Tuesday that its oil and gas production will fall by about 40 percent by 2030, while its refining output will decline about 30 percent, driving down BP’s direct emissions as well as those that come from its products.The announcement is the most detailed and significant of the pledges made by the world’s leading oil and gas companies, which over the last year have been announcing increasingly ambitious plans to address climate change, yet have largely failed to explain how or when they will pivot away from fossil fuels in coming years. In fact, many of the plans allow the companies’ oil and gas output to continue growing for years.”BP has radically changed the game,” said Andrew Grant, head of oil, gas and mining at the Carbon Tracker Initiative, a think tank that has closely tracked the industry’s climate change plans. He added: “In the arms race of emissions announcements, most oil and gas peers have conveniently ignored the global need to produce and use less oil and gas” and BP’s production cut makes it “unquestionably the industry leader.” The 40 percent production cut does not include BP’s 20 percent stake in Rosneft, a Russian energy company that is one of the world’s largest oil and gas producers, according to David Nicholas, a BP spokesman. BP chief executive Bernard Looney said in February that the company would reach net-zero emissions by 2050, but he declined to spell out what steps he would take in the near-term. Now, the company says it will boost its investments into low carbon energy ten-fold, to $5 billion a year by 2030, as it draws down its exploration and production of oil and gas. Within 10 years, BP said, it will have developed 50 gigawatts of renewable energy, up from 2.5 gigawatts today, and will have 70,000 electric vehicle stations, up from 7,500. BP will also increase investment in biofuels, hydrogen and carbon capture and storage – a technology that pulls carbon dioxide from smokestacks or directly from the air. Together with its scaled down oil and gas output, the company says its direct emissions will fall by about one-third by 2030, while the carbon-intensity of the products it sells will decline by more than 15 percent.
IEEFA update: Australia sponsors a failing gas industry – The controversial Narrabri gas project for New South Wales, Australia enters the final stages of approval with over 400 people presenting to the Independent Planning Commission who will determine its fate.The project is the most hotly contested resource project in the history of the state with over 23,000 submissions, 98% of which objected to the project.While queueing up to be heard, there was another queue forming.Liquefied Natural Gas (LNG) tankers in the Pacific and Atlantic oceans are motoring in circles while they wait to find a market for their unwanted product. Gas is currently being almost given away on international markets.The very last thing the world needs is more gas.Far from seeing the “gas powered recovery” our politicians desire, we are seeing a gas fired depression around the globe. In the U.S., the number of operating drill rigs has fallen 73% in the last 12 months. And US LNG exports have more than halved so far in 2020. Deloitte estimates that almost a third of U.S. shale producers are technically insolvent at current oil prices.Domestically, the industry is faring little better. On Tuesday, Santos, the proponent of the Narrabri gas project, wrote off a further $950m from its failed Coal Seam Gas to Liquefied Natural investments in Australia. Their total write-downs since 2014 are close to $8bn!Globally, renewables continue to overwhelm new fossil fuel and nuclear power station builds.Since 2010 renewables have grown by approximately 148% whilst nuclear plus fossil fuels have declined by 38%.This year alone, 200 gigawatts of renewable power plants have already been built, compared to only 100 gigawatts of fossil fuel energies and nuclear.Less gas power plants have been built in 2020 than in 2001. Investors are fleeing the gas industry and investment is flooding into renewables.The NSW government recently announced its tender for 3 gigawatts of power projects for its Central Renewable Energy Zone near Dubbo. The response was overwhelming with the tender being nine times over-subscribed. In Australia, gas usage in gas-fired power plants has declined by 59% since 2014 whilst renewables have increased to produce 25% of the energy in the National Electricity Market. The AEMO, the only agency to model a future electricity grid in its Integrated Systems Plan, has shown that in a renewables rich grid, the role of gas is smaller than it is today by 2040. Gas peaking plants only contributed 1.8% of the National Electricity Market’s generation in the year to April 2020 whilst they account for 13.4% of capacity. Put simply, we need capacity in gas peaking plants but they are never run for long. We don’t need much gas to power them.
Venezuela begins cleanup after oil slick hits coast – Venezuelan authorities have begun a cleanup effort after an oil slick washed up over the weekend on the coast of western Falcon state, known for pristine beaches and nature preserves, the environment ministry said in a statement late on Tuesday.Officials had not previously commented on the event, and the ministry said it was still investigating the cause of the spill. An opposition lawmaker and a source at state-run oil company Petroleos de Venezuela had previously said the slick likely resulted from a spill of the contents of a vessel’s fuel tank.”We have acted immediately in the face of this contingency, because to protect nature is to defend the fatherland,” the ministry, known formally as the Ecosocialism Ministry, wrote in a statement posted on its Instagram account. The ministry added that it had set up barriers to contain the oil but did not provide an estimate of how much oil had spilled. It said the oil ministry, PDVSA, the local Falcon state government, national park officials, and the Sebin intelligence service were participating in the cleanup and investigation.
Bulk carrier sitting on reef off Mauritius starts to leak bunker fuel – The 203,000 dwt Wakashio bulk carrier, which ran aground on a reef just off the southeast coastline of Mauritius on July 26, has started spilling bunker fuel into the famous azure seas of the French speaking republic. Local authorities have ordered the public, including boat operators and fishermen, not to venture to the beach and in the lagoons of Blue Bay, Pointe d’Esny and Mahebourg. “All highly sensitive areas including the Ramsar site of Pointe d’Esny and the Blue Bay Marine Park have been protected with booms,” a government spokesperson said. The ship, owned by Japan’s Nagashiki Shipping, was en route from China to Brazil when it ran aground with 3,800 tonnes of bunker fuel onboard. “Due to the bad weather and constant pounding over the past few days, the starboard side bunker tanker has been breached and an amount of fuel oil has escaped into the sea. Oil prevention measures are in place and an oil boom has been deployed around the vessel,” a spokesperson for the Japanese shipping company said today.
Mauritius faces up to its worst environmental crisis as oil slick snakes around the south of the island – An environmental crisis is playing out in the Indian Ocean where a grounded Panamanian-flagged newcastlemax is spewing bunker fuel onto the pristine shores of southeastern Mauritius.The 203,000 dwt Wakashio bulk carrier, which ran aground on a reef July 26, has a gash on its starboard hull through which significant tracts of heavy fuel oil are poisoning the local environment.The ship, owned by Japan’s Nagashiki Shipping, was en route from China to Brazil when it ran aground with 3,800 tonnes of bunker fuel onboard.“We are in an environmental crisis situation,” admitted the environment minister, Kavy Ramano last night, while the fishing minister, Sudheer Maudhoo, said: “This is the first time that we are faced with a catastrophe of this kind and we are insufficiently equipped to handle this problem.”This is the first time that we are faced with a catastrophe of this kind and we are insufficiently equipped to handle this problemNearby nature reserve Blue Bay Marine Park has been badly damaged with coral and rare turtles smothered in oil while schools in the vicinity are closed because of the noxious smell from the bunker fuel.Efforts are being made to try and pump out the remaining fuel from the ship while local politicians have called for international help to contain the damage. The French island of Reunion, which lies 200 km west from Mauritius, has been put on alert as the slick meanders through the ocean.
Oil spill threatens ecological disaster as Mauritius declares emergency (Reuters) – Fuel spilling from a Japanese bulk carrier that ran aground on a reef in Mauritius two weeks ago is creating an ecological disaster, endangering corals, fish and other marine life around the Indian Ocean island, officials and environmentalists say. The MV Wakashio, owned by the Nagashiki Shipping Company, struck the reef on Mauritius’ southeast coast on July 25. On Thursday, the government said fuel was leaking from a crack in the vessel’s hull and Prime Minister Pravind Kumar Jugnauth declared a state of environmental emergency, pleading for international help. “The sinking of the #Wakashio represents a danger for Mauritius,” Jugnauth said. Environmental group Greenpeace said the spill was to likely to be one of the most terrible ecological crises that Mauritius has ever seen. “Thousands of species around the pristine lagoons of Blue Bay, Pointe d’Esny and Mahebourg are at risk of drowning in a sea of pollution, with dire consequences for Mauritius’ economy, food security and health,” Greenpeace said in a statement. Satellite images released on Friday showed a slick spreading out into the turquoise waters surrounding the stricken vessel. Some fuel has washed ashore. France was sending specialist teams and equipment to help Mauritius deal with the spill, French President Emmanuel Macron said. A French military aircraft from the neighbouring island of Reunion, a French overseas territory, carrying pollution-control equipment would make two flights over the spill site on Saturday. A naval vessel carrying booms and absorbents would also set sail, authorities on Reunion said. “When biodiversity is in danger, there is an urgent need to act,” Macron said. “You can count on our support.” Nagashiki Shipping Company said it had tried to free the the tanker but the effort was hampered by persistent bad weather. “We will do our utmost working with the Mauritius authorities and relevant Japanese organizations to offload the oil still in the ship, clean up the spill and safely remove the vessel,” Nagashiki said in a statement.
Is Turkey Drilling For Oil & Gas In The Wrong Sea? –Whilst most of European media have narrowed down the deterioration in EU-Turkey relations to the issues of the “refurbished” Hagia Sophia and the protracted Libyan proxy war, their energy ties were just as crippled by Turkey’s intensive drilling campaign in Cyprus’ offshore, generating bad blood between the Old Continent and Ankara. Driven by its purported objective to drill 26 wells in the Eastern Mediterranean, every one of Turkey’s wildcats in Cypriot waters has gauged Europe’s unity and shed light on its ill-preparedness to confront Turkish actions. Now Turkey has started to drill its initial objective along its northern coast, the Black Sea – the one offshore area that is undeniably Turkish. The reticence of Turkish authorities to drill their Black Sea first might explain a lot as to why drilling in the Mediterranean might be more beneficial. The Turkish Fatih drillship has started prospecting works within Turkey’s Black Sea shelf this July and is assumed to have spud the Tuna-1 wildcat on July 20. Tuna-1 will be drilled in water depth of more than 2km, having been pinpointed as a potential drilling site following 3D seismic surveying in the area in April-May 2019 (by means of the Polar Empress vessel). The location of the Tuna-1 well is peculiar as TPAO has decided to go at it right next to the quadrangle of the Romanian-Bulgarian-Ukrainian-Turkish maritime border, within the deepwater Block 26. It seems that the wildcat’s location not far away from Ukraine’s Skifsky block and (perhaps more importantly) from the largest-so-far offshore discovery of the Black Sea deepwater, the OMV-operated Neptun field in Romania, is a deliberate attempt to maximize the success potential of the well by drilling as close as possible to proven commercial discoveries.
After twin oil spills off its beaches, Sharjah warns vessels — Authorities in Sharjah have warned of strict action against vessels violating environment regulations and causing oil spills. Two recent oil spills off Khor Fakkan and Kalba beaches have impacted the marine ecosystem and affected the livelihood of fishermen. They have also led to swimming ban on Kalba beach, which was covered with black sludge. Hana Saif Al Suwaidi, chairperson of the Environment And Protected Areas Authority (EPAA), said: “The EPAA, in collaboration with the police, municipal bodies, the coast guard and Bee’ah, has managed to contain the oil spill on the two beaches in Sharjah successfully. These spills could have spelt more disaster on the environment and marine life.” In most of the oil spill cases, the pollution is caused by vessels discharging residue from their tanks before going into the port. Al Suwaidi added that the ships causing the environmental violations have been strictly dealt with. “Awareness of ship crews is being raised. Immediate measures are being taken and the public has been asked not to venture into the sea. We are making huge efforts to restore the ecosystem of the area and prevent the pollution from spreading,” she added. An official at the Ministry of Climate Change and Environment said that preventing oil spills are crucial since these incidents are occurring at an alarming frequency. “This year alone, three oil spills have happened in the country and caused far-reaching impact. We need a strong mechanism to implement the law,” he pointed out. Members of the Sharjah Consultative Council (SCC) and representatives of the Federal National Council (FNC) have also raised their concerns over the spurt in oil spills. They have called on upgrading smart technology that can monitor marine life and carry out surveillance of ships loaded with tanks. The fishing community expressed its concerns over the pollution caused by the ships. “The oil spill mostly spreads to more than five kilometers of coastline and causes shoals of fish to wash ashore.” The fishermen in Khor Fakkan, Kalba and Al Qurm areas said that the closure of the beaches have hit their business as their work has come to a halt for several days causing a hike in the price of fishes due to their scarcity.
OPEC+ is facing a ‘very delicate, fragile balancing act’ in the oil market, strategist says – OPEC and its allies need to find a balance between supporting oil prices and keeping U.S. crude production at bay, a strategist told CNBC this week as the oil-producing group starts to roll back supply cuts. The alliance’s historic production cuts of 9.7 million barrels per day expired on July 31 this year. From August, the cuts will be tapered to 7.7 million bpd. Oil prices fell on Monday due to oversupply concerns, Reuters reported, noting that oil output already increased by 1 million bpd in July when Gulf countries ended their voluntary extra supply curbs. “I think we’re witnessing kind of a high-wire … balancing act that OPEC+ is trying to execute here,” said John Driscoll, chief strategist at JTD Energy Services. OPEC+ in April made a deal to reduce supply to the market in a bid to support prices, which went into a “free fall” earlier this year amid demand destruction due to the coronavirus and a price war between Russia and Saudi Arabia. We’re kind of flying blind, but trying to find this magical mean to use to keep U.S. production at bay and to also support prices. “Now they’ve restored the balance, prices have recovered, but they have to be very careful because they don’t want to be the victim of their own success,” he told CNBC’s “Capital Connection” on Monday. “If prices were to zoom past $45 a barrel, $50 a barrel on the back of these cuts, that may be waving the red cape in front of the U.S. independents, the producers,” he added. U.S. West Texas Intermediate crude futures were down 1.22% at $39.78 a barrel during Asia’s afternoon trade, while Brent crude was down 0.94% at $43.11 a barrel. “The way I see it, this is a very delicate, fragile balancing act and there’s this cloud of uncertainty overhanging all of it, on the pace of the recovery,” Driscoll said. He noted that it is difficult to predict how quickly the economy can recover. “We’re kind of flying blind, but trying to find this magical mean to use to keep U.S. production at bay and to also support prices.”
OPEC July oil output surges as Gulf voluntary cuts end – OPEC oil output has risen by over 1 million barrels per day (bpd) in July as Saudi Arabia and other Gulf members ended their voluntary extra supply curbs on top of an OPEC-led deal, and other members made limited progress on compliance. The 13-member Organization of the Petroleum Exporting Countries pumped 23.32 million bpd on average in June, the survey found, up 970,000 bpd from June’s revised figure, which was the lowest since 1991. OPEC and allies agreed in April to a record output cut as the coronavirus crisis hammered demand. An easing of lockdowns and lower supply have helped oil climb above $40 from April’s 21-year low of below $16 a barrel, although concerns of a second wave are keeping a lid on gains. .”Upside potential will continue to be in short supply so long as the COVID hangover lingers,” said Stephen Brennock of oil broker PVM. OPEC, Russia and other producers, a group known as OPEC+, agreed to cuts of 9.7 million bpd, or 10% of global output, from May 1. OPEC’s share, to be made by 10 members from October 2018 levels in the case of most countries, is 6.084 million bpd. In July, they delivered 5.743 million bpd of the pledged reduction, equal to 94% compliance, the survey found. Compliance in June was revised up to 111%. July’s increase is the biggest since April, when OPEC briefly pumped at will before the latest supply cut was agreed. To further support the market, Saudi Arabia, Kuwait and the United Arab Emirates had pledged to cut by an extra 1.18 million bpd in June only. This helped curb output last month to OPEC’s lowest since 1991, excluding membership changes, based on Reuters surveys and OPEC figures. The biggest rise in supply in July came from Saudi Arabia, which pumped 8.4 million bpd, up 850,000 bpd from June and close to its quota, the survey found. The United Arab Emirates and Kuwait also boosted output close to their targets. Iraq and Nigeria, which boosted compliance in June and were laggards in previous OPEC+ deals, did not make any further cuts in July, the survey found, with Iraq boosting exports. Both have pledged to make additional reductions in later months.
Oil falls on supply glut fears as OPEC+ set to boost output – Oil prices fell on Monday on oversupply concerns as OPEC and its allies wind back production cuts in August and a rise in worldwide COVID-19 cases points to a slower pick-up in fuel demand. Brent crude futures slid 26 cents, or 0.6%, to $43.26 a barrel by 0253 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 29 cents, or 0.7%, at $39.98 a barrel. Brent posted a fourth month of gains in July and U.S. crude posted a third as both rose from depths hit in April, when much of the world was in lockdown due to the coronavirus pandemic. “Investors are worried about oversupply as the OPEC+ is due to start reducing production cuts this month and a recovery in oil prices from record lows is likely to encourage U.S. shale producers to ramp up output,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities. “Also, fears over a resurgence in the coronavirus cases are weighing on oil markets,” he said. Oil output by the Organization of the Petroleum Exporting Countries rose by over 1 million barrels a day in July as Saudi Arabia and other Gulf members ended their voluntary extra supply curbs on top of an OPEC-led deal. Russia’s oil output in July was unchanged from June levels, the nation’s Energy Ministry said on Sunday. OPEC+, a grouping of OPEC and allies including Russia, is set to step up output in August, adding about 1.5 million bpd to global supply. U.S. energy firms kept the number of oil and natural gas rigs unchanged at a record low as the rig count fell for a fifth straight month, although July marked the smallest monthly decline. Oil prices are set for a slow crawl upwards this year as the gradual easing of coronavirus-led restrictions buoys demand, although a second COVID-19 wave could slow the pace of recovery, a Reuters poll showed on Friday. The Australian state of Victoria declared a state of disaster and authorities in the Philippines said they would impose fresh restrictions in Manila this week, reflecting worries around the world about getting the pandemic under control. “Adding to matters is that the U.S. consumer market is entering the last few weeks of peak driving season and with mobility tracking data flatlining,” Stephen Innes, chief global market strategist at AxiCorp, said in a report. “Unless there is a significant drop in the COVID-19 case count curve that is sufficient enough to reduce consumer fear of the virus and shift mobility data higher, demand might not get much better from here on in,” he said.
Oil Prices Climb After Lebanon Blast— Oil climbed to the highest level in nearly two weeks after an explosion at Lebanon’s main port rocked the capital Beirut, stoking fears over instability in the region. U.S. benchmark crude futures climbed 1.7% on Monday. Footage showed what appeared to be a fire, followed by crackling lights and then a larger explosion as an enormous cloud of smoke engulfed the area around the Port of Beirut. Authorities say it was caused by highly explosive materials at the port, but didn’t immediately say whether it was an accident or an attack. Meanwhile, analysts’ expectation of a decline in U.S. crude inventory levels in this week’s government report released on Wednesday is also helping to buoy crude prices. “Tensions are high and that just kind of puts a fine point on it,” said John Kilduff, a partner at Again Capital LLC. “Looks like there’s gonna be a draw in crude oil again, so we got that support as well.” Lebanon is reeling under its worst financial and economic crisis, with a sharp plunge in its local currency eroding purchasing power and throwing many into poverty and unemployment. Analysts in a Bloomberg survey are expecting a 3.35 million-barrel decline in oil supplies in the Energy Information Administration report. The industry-funded American Petroleum Institute will report its inventory tally later Tuesday. Still, a persistent supply overhang coupled with a souring demand outlook due to the coronavirus pandemic has kept U.S. crude futures locked in a tight trading range near $40 a barrel since late June. OPEC and its allies plan to ease historic output curbs this month, even with global virus cases above 18 million.
Oil prices end higher after upbeat readings on manufacturing activity – Crude oil prices ended higher on Monday with West Texas Intermediate crude for September delivery adding 74 cents or 1.8%. WTI settled at $41.01 a barrel in trading on the New York Mercantile Exchange as analysts credited the increase on upbeat readings on manufacturing activities. Some also see a limited field of improvement for oil prices because of the continuing rise of the number of COVID-19 cases reported MarketWatch. October Brent crude, the global benchmark rose 63 cents or 1.5% and finished the day at $44.15 a barrel on ICE Futures Europe. The increased prices came after the Institute for Supply Management said its manufacturing index rose to 54.2 in July from 52.6 in June, the highest level in 15 months. A reading higher than 50 indicates an expansion in activity. However – there’s always a ‘however.’ OPEC’s decision to relax production curbs takes effect this month and the output is targeted to rise by nearly 1.5 million barrels a day. “Investors are worried that the production increase will reverse the recent price recovery in oil, especially as coronavirus cases continue to rise world-wide and energy demand remains subdued,” said Mihir Kapadia, chief executive of Sun Global Investments, in a note.
Oil Rises for Third Day as Dollar Sweeps Commodities Higher– Crude prices rose for a third straight session on Tuesday, leveraging on the dollar’s tumble that swept commodity prices higher and expectations that U.S. stockpiles fell again last week despite the continuous spread of the coronavirus raising doubts about fuel demand. New York-traded West Texas Intermediate, the benchmark for U.S. crude futures, settled August with its strongest performance in more than a week, settling up 69 cents, or 1.7%, at $41.70 per barrel. London-traded Brent, the bellwether for global crude prices, closed the New York session up 28 cents, or 1.3%, at $44.43. The Dollar Index, which pits the greenback against a basket of six competing currencies, resumed its slide on Tuesday after a respite since the end of last week, sending most commodities higher, including gold to record highs. On the stockpiles front, traders expect the U.S. Energy Information Administration to report on Wednesday a 3-million-barrel decline in domestic crude stockpiles last week. But analysts warned that there might be an unexpected swing in the data, in keeping with recent trends. The EIA reported two 7-million-barrel draws and one 10 million barrel slump in July versus two builds of nearly 5 million. Both the declines and increases were way beyond levels forecast by analysts. With the previous week’s data showing an outsize draw, this Wednesday’s EIA release for the July 27-31 week could come up with a huge build, they say. Despite the three-day rally in oil, traders said crude remains under pressure due to concerns a fresh wave of Covid-19 infections elsewhere in the world will hamper demand recovery just as major producers ramp up output.
Oil edges up to highest since March on hopes for U.S. stimulus – Brent oil futures on Tuesday closed at their highest since early March on hopes the United States is making progress on a new economic stimulus package, as well as curbing the coronavirus spread. Brent rose 28 cents, or 0.6%, to settle at $44.43 a barrel, its highest close since March 6. U.S. West Texas Intermediate (WTI) crude rose 69 cents, or 1.7%, to $41.70, its highest finish since July 21. Earlier in the day, both Brent and WTI were trading at their highest since early March. Those price moves came ahead of the release of an industry report later Tuesday from the American Petroleum Institute that is expected to show a decrease in U.S. crude stockpiles last week. [EIA/S] “Crude prices turned positive on stimulus hopes and after another positive round of economic data showed manufacturing recovery continued in June,” Edward Moya, senior market analyst at OANDA in New York, said, pointing to better than expected manufacturing data in Asia, Europe and the United States. Negotiations between congressional Democrats and the White House on a new round of coronavirus relief have begun to move in the right direction, though the two sides remain far apart, the U.S. Senate’s top Democrat said on Tuesday. New U.S. coronavirus cases fell below 50,000 over the weekend for the first time since early July, according to the U.S. Centers for Disease Control. Despite Tuesday’s price rise, traders said crude remained under pressure due to concerns a fresh wave of COVID-19 infections elsewhere in the world will hamper demand recovery just as major producers ramp up output. The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, were boosting output this month by about 1.5 million barrels per day. U.S. producers also plan to restart shut-in production. In Europe and Asia, meanwhile, concerns are growing that coronavirus may be spreading in a global second wave, said Paola Rodriguez Masiu of Rystad Energy.
Oil jumps more than 1% to five-month high on larger-than-expected inventory drop – Oil prices rose to their highest since early March on Wednesday after a large decline in U.S. crude inventories and the dollar weakened, but mounting coronavirus infections had investors worried about the demand outlook. Brent crude was up 70 cents, or 1.6%, at $45.13 a barrel. West Texas Intermediate oil settled 49 cents, or 1.18%, higher at $42.19 per barrel. Both contracts gained over 4% earlier in the session. U.S. crude inventories fell by 7.4 million barrels last week, the Energy Information Administration said. That exceeded the draw of 3 million barrels analysts predicted in a Reuters poll. A weaker dollar, which makes oil cheaper for holders of foreign currencies, also supported prices. “There’s no escaping the benefits of a weaker dollar in the commodity space and oil is certainly basking in its decline,” senior OANDA analyst Craig Erlam said. Oil also drew support from signs that talks between the White House and Democrats in Congress on a new coronavirus relief package are making progress, although the sides remain far apart. U.S. factory data this week also showed an improvement in orders, which some analysts took as a hint of economic recovery. Euro zone business activity returned to modest growth in July as some curbs imposed to stop the spread of the coronavirus eased, the Composite Purchasing Managers’ Index from IHS Markit showed. Rising prices come against the backdrop of a surge in coronavirus cases which could threaten a recovery in fuel demand. Global coronavirus deaths surpassed 700,000 on Wednesday, according to a Reuters tally, with the United States, Brazil, India and Mexico leading the rise in fatalities. “We see gasoline demand coming in close to 7% year-on-year lower through Q3, with gasoil/diesel registering a decline of some 4%, implying a continued slowdown of the recovery, with a global return to 2019 levels this year increasingly in doubt,” JBC Energy said, referring to global consumption, which has collapsed due to lockdowns to help contain the pandemic. The consultancy sees jet fuel demand down 50% year on year through the third quarter. In the United States, the world’s top oil consumer, distillate inventories rose last week to their highest in 38 years for the third week in a row, while Gulf Coast distillates were at record high levels, the EIA said. Gasoline stocks rose for a second straight week.
Oil settles below 5-month highs amid fuel demand worries – (Reuters) – Oil prices hovered below five-month highs on Thursday, falling after a session in which bearish sentiment about fuel demand counteracted optimism about Iraq’s supply cuts, pushing the benchmarks in and out of positive territory. Concerns remain that demand is depressed by the economic slowdown due to the coronavirus pandemic, said Phil Flynn, senior analyst at Price Futures Group in Chicago. “Everyone is waiting for the coronavirus relief package to come through to give a bounce to the economy,” he said. Brent crude settled down 8 cents at $45.09 a barrel, while U.S. crude fell 24 cents to $41.95 after a four-day streak of gains. Earlier in the session, planned output cuts from Iraq boosted the contracts. Iraq said it would make an additional cut in its oil production of about 400,000 barrels per day in August to compensate for its overproduction over the past period under the OPEC supply reduction pact. The two benchmarks rose to their highest since March 6 in the previous session after the U.S. government reported a much bigger-than-expected drop in crude stockpiles. [EIA/S] A weaker U.S. dollar was also supportive of oil prices as it makes dollar-priced oil cheaper for holders of other currencies. The dollar index, which measures the greenback against a basket of six major currencies <.DXY>, logged its biggest monthly percentage fall in a decade in July, and a Reuters poll found analysts expected it to continue falling into next year.
Oil Slips Below 45 Bbl On Demand Concerns But Posts Weekly Rise – Oil prices fell nearly 2% on Friday, limiting their weekly gain due to concerns the global recovery could falter from a resurgence of coronavirus cases. The rise in infections remains the dominant issue for the fuel demand outlook. Cases in the United States are still rising in a number of states, while India recently reported a record daily jump in infections. More than 700,000 people have died in the worldwide pandemic. Brent crude fell 69 cents, or 1.5%, to settle at $44.40 a barrel. U.S. West Texas Intermediate (WTI) crude fell 73 cents, or 1.7%, to end at $41.22 a barrel. Brent rose 2.5% for the week, while WTI gained 2.4%. Talks between U.S. lawmakers over another round of stimulus have stalled, meanwhile. U.S. President Donald Trump has threatened to pull White House representatives out of talks and instead issue executive orders to address economic needs. “The U.S. Congress can’t seem to come up with a plan for the next round of stimulus and it’s creating doubt for U.S. economic recovery,” said Gary Cunningham, director of market research at Tradition Energy. OPEC member Iraq pledged to cut output further in August, which helped support prices. The nation has been a laggard in fully meeting its pledge as part of an April deal to reduce supply. Crude has recovered from lows reached in April, when Brent slipped below $16, a 21-year low.
Oil lower as U.S.-China tensions mount, but logs weekly gain – Oil futures ended lower Friday, trimming weekly gains, with pressure tied to rising tensions between the U.S. and China after President Donald Trump imposed a sweeping but unspecified ban on dealings with the Chinese owners of consumer apps TikTok and WeChat. West Texas Intermediate crude for September delivery was down 73 cents, or 1.7%, to close at $41.22 a barrel on the New York Mercantile Exchange, while October Brent crude fell 69 cents, or 1.5%, to finish at $44.40 a barrel on ICE Futures Europe. WTI saw a 2.4% weekly rise, while Brent gained 2%. The pair of executive orders banning transactions with Chinese social-media companies signed by Trump late Thursday take effect in 45 days. Oil shifted lower in Asian trade after the announcement, showing “that when it comes to geopolitical risk, Asia oil traders (and most for that fact) have an unfortunate predisposition to heightened U.S.-China tensions,” said Stephen Innes, chief global market strategist at AxiCorp., in a note. Meanwhile, investors have remained fairly upbeat in the face of a reduction in production curbs by major producers that took effect on Aug. 1.Saudi Arabia on Thursday lowered its official selling price, or OSP, for crude into Asia and Europe by 30 cents. Analysts said the move came as a relief to traders who had feared a steeper cut in a bid to take market share from rivals. But the cut still suggests the global market isn’t absorbing physical crudes as cleanly as a month ago, said Michael Tran, analyst at RBC Capital Markets, in a note.“The cut to OSPs is a sign that the market is struggling to absorb the easing of the OPEC production cuts as additional barrels [return to the] market,” he wrote, referring to an easing of curbs by the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, beginning this month.Tran noted that China has played an oversize role in soaking up supplies, which means any slowing of Chinese imports will show up in softer physical pricing. Meanwhile, refinery margins remain soft across most regions, while the U.S. and Europe have seen stagnating traffic patterns in recent weeks.“We continue to have a cautious outlook,” he said, particularly coming into the end of the summer driving season, “as abysmal refining margins could result in economic run cuts, or demand destruction for crude.” A further decline in the number of U.S. oil rigs did little to move prices in early afternoon trade. Oil-field services firm Baker Hughes said the number of rigs fell by four this week to 176. A lack of progress in talks between congressional Democrats and the White House over additional coronavirus aid was also a potential weight on crude prices, as it could represent a threat to consumer demand, analysts said. Talks were set to resume Friday despite a wide gulf on key issues. Meanwhile, the U.S. currency was on the rise, with the ICE U.S. Dollar Index, a measure of the greenback against a basket of six major rivals, surging 0.8%.
Yemenis fear decaying oil tanker could cause major disaster – Following Tuesday’s huge explosions in Beirut, Yemenis have been voicing their concern that the decaying Safer floating storage and offloading terminal could lead to a devastating disaster in Yemen if it is not repaired soon. Having seen footage of the destruction wrought by the explosions in Lebanon, Yemeni fishermen, politicians, government officials, military officers and activists have urged the international community to pressure the Houthis to give experts from the United Nations access to the damaged ship so that it can be fixed. The Safer has been stranded off the western city of Hodeida since early 2015. It reportedly carries around 1.1 million barrels of crude oil and has recently shown signs of rusting, with water entering the engine room. That leak prompted UN officials to warn of a major impending environmental disaster in the Red Sea, as well as the potential risk of a massive explosion caused by the build up of gases in the storage tanks, or by weaponry fired deliberately or accidentally. Under pressure from local and international bodies, the Iran-backed Houthis, who control Hodeida, initially agreed to allow a UN team to board the ship to assess the damage and unload the oil. However, they later reversed that decision, citing a conspiracy between the UN, the US, and the Saudi-led Arab coalition. Khaled Al-Rami, a Yemeni fisherman from Hodeida’s Khokha district on the shores of the Red Sea, told Arab News that his “first thought” on seeing the images from Beirut on Tuesday was that an equally devastating disaster could occur if the Safer spills oil into the water. Last month, the Yemen-based environmental group Holm Akhdar (Green Dream) warned that an oil spill would have devastating consequences for fishermen, marine diversity, and the country’s fish stock. “At least 115 of Yemen’s islands in the Red Sea would lose their biodiversity and their natural habitats. About 126,000 Yemeni fishermen – including 67,800 in Hodeida – would lose their only source of income because of the disaster,” the group said in its report. “If the ship is not repaired, then after Lebanon, it will be Yemen,” Al-Rami said. “On WhatsApp, my friends and other fishermen shared their concerns about a predicted disaster from the ship. We are all worried about the impact of any oil spills on our lives. This is our major concern at the moment. It causes us great horror and panic. I appeal to the international community, the Arab Coalition and the UN committee (in Hodeida) to save us from a possible disaster.”
US Confirms American Company Has Signed Deal With ‘Rebels’ To Take Syria’s Oil | Zero Hedge –For anyone who still actually thinks America’s role in Syria was ever somehow about “protecting human rights” or “promoting democracy” – here’s the latest out of Syria, which the Trump administration has since confirmed:Syria’s foreign ministry said on Sunday that an American oil company had signed an agreement with Kurdish-led rebels who control northeastern oilfields in what it described as an illegal deal aimed at “stealing” Syria’s crude. That’s right, the some 700 to perhaps 1000+ US troops still occupying Syrian territory in the country’s oil and gas rich northeast are overseeing a deal for an American company to come in and take the oil.This is after Trump has said for much of the past year that he’s keeping American forces there to “secure the oil” – though it’s long been left open whether this means “secure” it from ISIS, or the Russians, or Damascus. Now in practice we see it’s all about taking these vital resources away from the government and ultimately the already impoverished Syrian people.Syria’s foreign ministry as well as state media SANA said it “condemns in the strongest terms the agreement signed between al-Qasd militia (SDF) and an American oil company to steal Syria’s oil under the sponsorship and support of the American administration.”Damascus also said “This agreement is null and void and has no legal basis,” and is likely to lodge an official complaint with the UN. It’s as yet unknown precisely what US company or companies are involved. When early reports surfaced last week, it was Syrian state sources making the allegation. But US Secretary of State Mike Pompeo since confirmed it, according to Reuters: Senator Lindsey Graham said during the committee hearing that SDF General Commander Mazloum Abdi informed him that a deal had been signed with an American company to “modernize the oil fields in northeastern Syria”, and asked Pompeo whether the administration was supportive of it. “We are,” Pompeo responded during the hearing streamed live by PBS. “The deal took a little longer… than we had hoped, and now we’re in implementation.”
Erdogan: Turkey resumes energy exploration in east Mediterranean – President Tayyip Erdogan said on Friday that Turkey had resumed energy exploration work in the eastern Mediterranean as Greece had not kept its promises regarding such activities in the region. NATO members Turkey and Greece have long been at loggerheads over overlapping claims for hydrocarbon resources and tensions flared up last month, prompting German Chancellor Angela Merkel to hold talks with the country’s leaders to ease tensions. “We have started drilling work again,” Erdogan told reporters after participating in Friday prayers at the Hagia Sophia mosque. “We don’t feel obliged to talk with those who do not have rights in maritime jurisdiction zones.” He said Turkey’s Barbaros Hayreddin Pasa, a seismic survey vessel, had been sent to the region to carry out its duties. The ship moved into waters off Cyprus in late July and remains in that region. Erdogan made the comments when asked about an accord signed by Egypt and Greece on Thursday designating an exclusive economic zone between the two nations in the east Mediterranean. Diplomats in Greece said their agreement nullified an accord reached last year between Turkey and the internationally recognized government of Libya. However, Erdogan said the Egypt-Greece accord was of no value and that Turkey would sustain its agreement with Libya “decisively.” The Turkish Foreign Ministry has said the Egypt-Greece zone falls in the area of Turkey’s continental shelf. Turkey and Greece are also at odds over a range of issues from flights over each other’s territory in the Aegean Sea to ethnically divided Cyprus.
US Navy Seizes Iran-Bound Ship Carrying Pharmaceutical Supplies Off China- Fars – Iranian state media has announced that a US Navy warship has seized a transport ship near the Chinese port of Qingdao on Wednesday morning.The ship was reportedly en route to Iran loaded with medical manufacturing components, specifically zeolite, which Fars News Agency says is needed for manufacturing oxygen concentrators for coronavirus-infected patients.“Only one imported part is used for production of oxygen concentrators, which is zeolite, and we are forced to purchase it from France and import it to the country through several intermediators,” Peyman Bakhshandeh-Nejad, an Iran-based pharmaceutical company CEO told state media. Amid the raging coronavirus crisis in the Islamic Republic, which for over half a year has been among the hardest-hit countries in the world (and recall that last month President Rouhani shocked in a speech by saying the truer estimate of numbers of Iranian infected stands at some 25 million, not the official 300,000+), Tehran has been desperate to import vital hospital equipment and medicines.However, US-led sanctions related to Iran’s alleged nuclear aspirations has made this extremely difficult. While Washington has denied it is targeting vital medicines and staples like food and hospital gear, Iran has said it’s precisely these things which are being blocked. Specifically in the case of the seized ship off China, zeolite is said to be crucial in oxygen concentrator systems for coronavirus patients who can rely on the vital devices at home without having to visit a hospital.
300 ISIS Terrorists At Large- Mass Prison Break In Afghanistan After Hours-Long Firefight – What could be the largest ISIS jailbreak in the terror group’s history didn’t take place in Iraq or Syria, but just happened inside Afghanistan, where ISIS is attempting to make a come-back at a moment the US-Taliban truce deal is taking shaky effect.It happened Monday after the Islamic State attacked a large prison complex in the eastern city of Jalalabad in which nearly 40 people were killed, among these 10 ISIS members, but some 300 escaped jihadists still remain a large.Some international reports listed that as many as 400 terrorists may have escaped. It reportedly began by a car bomb attack, after which ISIS gunmen surged into the prison area and ultimately overran the guards. ISIS held the prison throughout much of the day Monday as national defense forces laid siege, leading to a huge firefight. According to Reuters, hundreds escaped amid the chaos:More than 300 prisoners were still at large, Attaullah Khugyani, spokesman for the governor of Nangarhar province, said, said. Of the 1,793 prisoners, more than 1,025 had tried to escape and been recaptured and 430 had remained inside. “The rest are missing,” he said.Jalalabad is an area known for heavy ISIS and other jihadist activity. The terror group got a foothold in central Asia years ago at the height of the Islamic State’s short-lived territorial caliphate over w estern Iraq and eastern Syria.
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