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France’s EDF Reports $944M Impairment on US Offshore Wind Project
State-owned French power giant EDF is taking a 900 million euro ($944.4 million) impairment charge on the Atlantic Shores offshore wind farm project in the United States after partner Shell pulled out of the joint venture."We have every intention of pursuing the interests of the (joint venture) company to the end, but in order to reflect the new American political landscape ..., the board of directors has decided at this stage to depreciate the developments that we have carried out offshore at Atlantic Shore," EDF CEO Luc Remont told reporters.($1 = 0.9530 euros)(Reuters - Reporting by Forrest Crellin, Editing by David Goodman)
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Cuba opens the first of 92 new solar parks to combat energy crisis
Cuban President Miguel Diaz-Canel opened the first of 92 Solar Parks on Friday, as part of an initiative backed by China to reduce the number of blackouts that can last for hours in the Caribbean Island nation. The park in Havana is one of 55 that are expected to be online by this year. It will generate 1,200 megawatts. Last year, the outdated power grid of this Communist-run nation collapsed multiple times. A severe fuel shortage made it impossible for smaller clusters to operate diesel-powered generators which typically backup the system. Blackouts that lasted for years have weakened the economy, and prompted scattered protests by residents who are tired of the multi-faceted crisis which includes a scarcity of basic goods such as food and medicine. The government is heavily promoting the parks as a partial answer to people's problems, which they blame primarily on U.S. sanction. Diaz-Canel tweeted on Friday that "the recovery of the grid is a top priority, and this is its safest route." Cuba's maximum demand is around 3,500MW. However, it fails to meet 1,500MW of this, leading to power outages. Cuba and China agreed to boost solar energy in Cuba's grid in April, but neither government provided details on the financing. Hua Xin attended the Havana solar park's inauguration. Foreign journalists were not allowed to attend the event. Presently, less than 5% (or a little more) of Cuba's energy is derived from alternative sources. Cuba's 2030 goal is 24%. Marc Frank (reporting; Paul Simao, editing)
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Baker Hughes reports that the US oil and gas rig counts have reached their highest level since June.
Baker Hughes, a leading energy services company, said that the U.S. added oil and gas rigs this week for a fourth consecutive week to reach their highest level since last June. The number of oil and gas drilling rigs, a good indicator of future production, increased by four in the week ending February 21. Baker Hughes reported that despite this week's increase in rigs, the total count is still 34 or 5% lower than this time last year. Baker Hughes reported that oil rigs increased by seven this week to 488, the highest level since September. Gas rigs dropped by two to 99. Oil and gas rig counts are expected to decline by 5% and 20% respectively in 2024, as the lower U.S. gas and oil prices in recent years have prompted energy companies to concentrate more on increasing shareholder returns and paying off debt than raising production. Although analysts predicted that U.S. crude spot prices would remain the same in 2025, U.S. Energy Information Administration projected crude production would increase from a record 13,2 million barrels per daily (bpd), in 2024, to around 13.6 millions bpd, in 2025. The EIA predicted a 73% rise in the price of spot gas Prices in 2025 will prompt producers to increase drilling activity in this year. A 14% drop in price in 2024 forced several energy firms in the industry to reduce output for the very first time since 2020, when the COVID-19 epidemic reduced demand for fuel. The EIA predicted that gas production would increase to 104.6 billion cubic feet per day in 2025. This is up from 103.1 bcfd and a record-breaking 103.6 bcfd. (Reporting and Editing by Marguerita Choy)
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After the US exit, countries warn that global climate assessments should not be delayed.
After the U.S. government withdrew, the European Union, Britain, and other climate-vulnerable countries raised concerns over the delay in the next global assessment on climate change by the U.N.'s Climate Science Panel. Next week, the Intergovernmental Panel on Climate Change (IPCC), the U.N. organization that brings together scientists from over 200 countries to assess Earth's health, will be meeting in Hangzhou, China to plan its next report. In a Friday joint statement seen by, Wopke Hoopstra, EU climate chief and 17 other countries, including Britain, Germany France, Spain, Marshall Islands, Guatemala and the Marshall Islands, said: "It is vital that all contributions from the working groups to the Seventh Assessment Report be prepared on time." The statement stated that "we owe it both to those who are suffering from the effects of climate change now and to future generations to make decisions regarding the future of our planet based on the best available evidence and knowledge." According to reports on Thursday, the Trump administration has stopped the participation of U.S. Scientists in the IPCC. They will also not be attending its meeting next week in Hangzhou. Officials familiar with these talks say that the countries who made the statement are concerned that the report will not be finished in time for the next Paris Agreement stocktake in 2028. Nearly 200 countries will evaluate their progress in curbing climate changes and agree on tougher measures in order to avoid escalating temperatures. Last month, Donald Trump ordered the U.S. again to withdraw from the Paris Climate Agreement and reversed the Biden administration’s climate policies. Elon Musk, the billionaire, is leading the effort to rid the federal administration of what he considers wasteful spending, and to slash its workforce. He has cut funding for climate related work, and removed employees who worked on climate justice, climate science and clean energy. In a second statement published by the Least Developed Countries on Friday, a group consisting of 45 of the most vulnerable nations in the world, the Least Developed Countries said that there was no excuse for delays. In a press release, they stated that "any backtracking in this process issue would be seen as what it really is: politization of science on the cost of vulnerable countries." "People living in developing countries have nothing to gain by restricting their access to IPCC science." During the COP28 Climate Summit in 2023, nearly 200 countries agreed to transition from fossil fuels. The IPCC's earlier report was the basis for the agreement. It detailed the dramatic changes humans had made to the climate of the Earth and the need to drastically reduce emissions to prevent further disasters. Reporting by Kate Abnett and Valerie Volcovici, editing by Giles Elgood
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Global equity markets mixed due to uncertainty over Trump's moves and geopolitical issues
Wall Street stocks fell but European shares edged up on Friday, amid uncertainty over U.S. president Donald Trump's rapid policies, including tariffs and spending cuts, as well as Germany's upcoming election. Since returning to the White House in late October, Trump has announced tariffs against several U.S. trading partner countries and launched a campaign to cut the federal workforce of 2.3 million people. These moves have caused concern among traders. Joshua Wein, portfolio director at Hennessy Funds, Chapel Hill, North Carolina, said: "The sell-off over the past couple of days was really about the uncertainty regarding the pace of the change in government." We all knew that there would be cuts in spending and layoffs, but this pace has created a level of uncertainty we've never seen before. The data released on Friday revealed that U.S. businesses have fallen to their lowest level in 17 months, showing that consumers and businesses are becoming more concerned about the Trump administration. S&P 500, Dow Jones Industrial Average, and Nasdaq Composite Index all fell due to losses in consumer discretionary, industrial, and energy stocks. All three major indexes are also expected to finish the week lower. This week, European shares were volatile ahead of the German election on Sunday. Europe's Stoxx 600 index rose 0.45% on Wednesday, ending two days of declines. It is now heading for a weekly increase. The Dow fell 0.85% to 43799.85. The S&P 500 dropped 0.57% at 6,082.56. And the Nasdaq Composite was down 0.69% at 19,823.69. MSCI's global index of stocks fell by 0.23%, to 881.69. The index has fallen 0.25% in the past week. Overnight, MSCI's broadest Asia-Pacific share index outside Japan rose 1.45% and reached its highest level since November 8.
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Gold takes a break from profit-taking and targets eighth weekly gain
Gold prices fell on Friday, as investors took profits off the previous session's high. However, they were still set to make an eighth consecutive weekly gain due to strong demand for safe-haven assets amid fears over U.S. president Donald Trump's proposed tariffs. As of 10:07 am, spot gold fell 0.3% to $2.930.85 per ounce. ET (1507 GMT). Bullion is up around 1.7% after reaching a record of $2,954.69 last Thursday. U.S. Gold Futures dropped 0.4% to $2.945.20. Alex Ebkarian is the chief operating officer of Allegiance Gold. He said, "It was just a classic movement with new all-time highs and profit taking... but" gold's fundamentals remain strong. The price of gold has reached two new record highs in the past week, with prices trading above $2,950/oz. Investors' appetite for bullion is on the rise, as uncertainty surrounding global economic growth, and political instability, have highlighted investor appetite. The demand for gold at the moment is primarily driven by western investors and central bankers. Investors in ETFs appear to be jumping aboard the bandwagon," Commerzbank analyst said in a report. Trump announced a new round of tariffs earlier this week, including duties on lumber and wood products. This is in addition to the previously announced plans for duties on imports of cars, semiconductors, and pharmaceuticals. The tariffs are in addition to the 10% additional tariff imposed on Chinese imports, and the 25% tariff imposed on steel and aluminum. Ebkarian stated that the role of gold as a safe haven has not been fully realized, because the money is still sitting on the sidelines. Investors also monitor the U.S. Federal Reserve interest rate trajectory, as Trump's policies have been viewed by many as inflationary. A higher inflation rate could force the Fed to keep interest rates high, reducing the appeal of gold that doesn't yield. Silver spot was down 0.6% to $32.74 per ounce, and palladium dropped 0.9% to $968.78. Both metals are headed for gains this week. Platinum fell 1%, to $969.05. It is expected to decline by a week. (Reporting and editing by Maju Samuel in Bengaluru, Anmol Choubey from Bengaluru)
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Sources say that European military supplier KNDS is considering an IPO in the midst of a boom in the defence sector.
Two people with knowledge of the matter said that KNDS, a military defence system provider, is looking at an IPO as soon as the end this year. This comes as Europe's push to boost its defence sector sparks a rally. Sources, who spoke on condition of anonymity, said that the Franco-German firm has begun early discussions with advisers regarding a possible listing at Frankfurt in 2026 or 2025. They added that the Banks are yet to be named. The French state-owned holding agency (APE), declined to comment. KNDS, as well as its German family shareholders Wegmann-Group, did not immediately respond to requests for comments. The talks take place amid a recovery in the defence sector after U.S. president Donald Trump stated that Europe would have to increase its military resources significantly. After the U.S. urged European leaders to increase their military budgets, Germany's Hensoldt and Europe's largest ammunition manufacturer Rheinmetall led this week's gains. Rheinmetall's value has increased dramatically since the Russian invasion of Ukraine. It is now worth approximately 39 billion euros (40.87 billion dollars), up from 4 billion euros back in February 2022. KNDS formed in 2015 through the merger of German Krauss-Maffei Wegmann, a family-owned company famous for its Leopard tanks, and French state-owned Nexter. According to the website, both the German family and French Government remain joint owners. One person suggested that a complex shareholder structure could result in the company only floating a small portion of its shares. This would allow the company's family and state supporters to retain control stakes. They also warned that the company may decide not to list as a public business. At the time the article was published, it wasn't clear which shareholders would sell their shares in an IPO scenario or what valuation they might be seeking. According to LSEG Datastream on February 20, world defence companies are trading at 25,8 times expected earnings compared to 18 times three year ago. Iveco, Thyssenkrupp and other world defence companies trade at around 8 times the same valuation metric. KNDS is a manufacturer of battle tanks, armoured vehicle, artillery system, weapons station, ammunition, military bridges and battle management systems. It also produces battle management systems and protection and training solutions. According to its website, it generated revenue of 3.3 billion euro ($3.45 billion). KNDS, an investor in German gearbox manufacturer Renk, listed its shares last year at a valuation 2.15 billion euro and is expected to have sales of 1.1bn euros by 2024, according to preliminary results. KNDS increased its stake in Augsburg-based Renk last week to 25,1%. Renk's shares have risen 62% since the company made its debut on the stock exchange a year earlier. KNDS has approximately 9,500 employees worldwide and is incorporated in The Netherlands. According to its website, it supplies armies around the world with production lines located in France and Germany, and has various industrial partnerships. ($1 = 0.9543 euros)
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Savannah resumes lithium prospecting as Portugal overturns injunction
Savannah Resources announced on Friday that it will immediately resume prospecting work at its lithium project located in northern Portugal, after the government assisted it in overturning a precautionary order filed by landowners. Savannah, a London-based company, believes that the Barroso Project's deposit of lithium-bearing spodumene is the largest in Europe. The latest prospecting results indicate a deposit larger than the 28 million metric tonnes of high-grade battery lithium previously estimated. The EU's goal to reduce its dependence on countries like China for strategic raw material could hinge on this project. Savannah was forced to stop prospecting at Barroso in two weeks' time after the court ordered that the government revoke its permission for the company to enter land owned by others. Savannah said that in a press release, the government filed a "reasoned solution" citing a wider public interest and the court ended up overturning an injunction. Savannah's statement stated that the government claimed any delay in the work "would be more expensive and detrimental to public interest". It added that the company expected to compensate for the delays over the rest of the program. Savannah has only one venture, Barroso. It hopes to begin commercial production in 2027. The project will also complete its final environmental licensing and feasibility study in the second half this year. Reporting by Sergio Goncalves, Editing by Aiden Lewis
Texas oil regulator under scrutiny as zombie wells gush back to life
On a stretching ranch in Pecos County in late July, oil well control specialist Hawk Dunlap used a backhoe to discover a deserted or socalled zombie well that had bounced back to life in spite of being plugged just over a year earlier, hissing gas and bubbling poisonous water into the dry Texas dirt.
Worn brilliant red coveralls and a silver hard hat, Dunlap hopped off the machine and into the hole to clear away staying soil with a shovel, and after that picked up a brittle portion of cement that was part of the casing implied to keep fluids and gases underground. He squashed the cement into dust with a light squeeze of his fingers as the Briggs household, who own the cattle ranch, formed a circle around him.
This was not plugged properly, Dunlap stated. This is the work of the three stooges of the Railway Commission.
The Railroad Commission (RRC) is the regulative body that, despite its name, oversees oil and gas operations in Texas. And Dunlap, a three-decade veteran of oil fields around the globe, has turned into one of its most singing critics.
Armed with a portable gas detector and smart phone, Dunlap has actually invested much of the last two-and-a-half years documenting a. flurry of oil well blow-outs and leakages across West Texas at the. wish of landowners, in an epidemic he states is being triggered by. low-quality plugging tasks left behind by operators and their. contractors and authorized by the RRC.
He and his partner Sarah Stogner, an oil and gas legal representative who. files their work on social media, say they have actually now tape-recorded. over 100 dripping tradition or orphan wells without any responsible. owner, which were listed in RRC records as correctly plugged,. consisting of the one at the Briggs Cattle Ranch in Pecos County.
Reuters reporting in West Texas, together with interviews with. landowners and specialists and an evaluation of RRC records show why the. state regulator is under increased pressure to step up its. oversight. The included examination comes at a time when over the last. two years, more and more deserted wells have begun to spill. and even gushed geyser-like, formed salt and chemical-laden lakes. or caused sinkholes.
Making matters worse is the increasing pressure rising from. beneath the ground due to the billions of gallons of wastewater. injected back into reservoirs for disposal in most current. fracking-led drilling boom in the Permian basin, the largest. U.S. oilfield. That pressure, Dunlap says, likely causes the. badly plugged wells to burst.
The U.S. Epa stated it would. examine whether to withdraw the RRC's permitting authority for. waste disposal wells after Texas watchdog group Commission Shift. filed a federal grievance alleging mismanagement.
RRC representative Patty Ramon said the EPA has not yet. contacted them to introduce the review, and noted the agency. formerly applauded its underground injection program.
We will assist them with any input if they do, Ramon said.
Confronted with the increasing number of calls from worried. landowners, Dunlap is running a long-shot project to win one of. the 3 RRC seats as a libertarian this fall, wishing to. alter the organization from within.
It's about seeing that things are done right and not. letting oil companies run over the residents of Texas simply. since they produce oil and gas and pay some royalties, he. informed Reuters.
Among the changes he wish to see: quicker and better. quality plugging of wells, accountability for the oil business. who left them behind, and a brand-new name for the Railroad Commission. to make clear it controls the oil market.
I invested 27 years strolling the Earth lauding the fact that. Texas does it bigger and much better than everybody else. So you have. to comprehend that when we began excavating and examining. ... it was, a fair bit of a gut punch for me, said Dunlap, who. has actually operated in 103 countries.
BEST STORM
Without a solvent owner of record, the obligation of. plugging these orphan wells falls on the RRC, which plans to. plug 2,000 wells this year with state funds.
While the RRC has actually documented over 8,500 inactive or. unplugged orphan wells in Texas, specialists approximate there are. thousands more undocumented, the legacy of more than a century. of drilling, that are not eligible for closure financing.
Meanwhile, oil drillers working new wells in the Permian. overlying Texas and New Mexico are building up around 24. million barrels daily of produced water-- the salted mixture. that turns up alongside oil and gas, according to Laura Capper. with energy advisory EnergyMakers. In between 40-55% of this water. is injected in regional disposal wells, with much of the rest. recycled for oil operations, she stated.
On top of concerns of produced water - packed with chemicals. like radium and boron - threatening regional aquifers and. plants, all the drilling, pumping, and reinjection is. triggering the earth to rise and go away in locations and triggering. quakes, landowners and activists say.
It is this best storm in the Permian with all this. produced water, earthquakes and orphan wells, stated Adam Peltz,. director of the Environmental Defense Fund's Energy Program.
Deep injections of wastewater have set off earthquakes,. which has resulted in the RRC limiting new drilling allows in. some areas. Shallower injections, nevertheless, overpressure the. subsurface, triggering inadequately plugged wells to leakage or blow.
The RRC pushed back on the assertion that the problem is. extensive.
There is little evidence of a widespread event of. previously plugged wells leaking, Ramon stated, adding that. commission inspectors put high-risk, high-priority wells at. the top of their plugging list.
In 2022, Texas received a $25 million preliminary grant from the. bipartisan infrastructure law's Orphaned Well Program to deal with. the issue. It got another $80 million in January however with. strings attached: use of the money requires the RRC to determine. the quantity of methane and other gases dripping from plugged wells. before and after plugging.
The RRC has actually approximated that it will require over $481. million total to plug its wells.
Ramon said the RRC has used up the first tranche of federal. funds and begun to take advantage of the bigger tranche, in addition to. its state orphan well funds. She said the company is complying. with federal requirements.
' JUST WORSENING'
Meanwhile, researchers have been firming up the link in between. wastewater injection and erupting wells.
A paper published in July by Geophysical Research. Letters by researchers from Southern Methodist University, for. example, showed that a huge orphan well blowout in Crane. County, Texas, in 2022 was triggered primarily by wastewater injection. occurring numerous miles away.
The RRC is also examining the link however has not yet. released a conclusion. It shut in two saltwater disposal wells. after a series of earthquakes just northwest of Pecos County in. the last week of July.
Back in Pecos County on the 800-acre (320-hectare) Briggs. ranch that has actually 30 deserted wells last efficient in the 1980s,. Laura Briggs said things have actually just been becoming worse.
Less than one week after Dunlap collected the previously. plugged well on the home, a separate old dripping well less. than 1,000 feet (300 m) from her home and animal pens unexpectedly. had an explosive blowout of produced water. Briggs' gas screen. revealed high levels of poisonous hydrogen sulfide.
It's been leaking for a year. I've reported it to the. commission several times, she said. However it has to leakage like. this before the Railway Commission will respond.
In early August, a vacuum truck reached the cattle ranch to. begin transporting away the fluid streaming out of the well as it. pooled up near her animals.
It's going to draw up what's coming out of that well, she. said about the truck. Then he's going to take it off and dump. it into a saltwater disposal well, which is why these wells are. dripping..
(source: Reuters)