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Environment workers rush to remove toxic debris from the LA fires
First, there were the rapid-fires that caused so much destruction. Workers are now tackling the delicate and massive task of cleaning up hazardous debris from the wreckage of the homes that were destroyed in the Los Angeles fires earlier this month. Last week, President Donald Trump ordered the U.S. Environmental Protection Agency to speed up the removal of contaminated materials. His administration set a deadline of Feb. 25, 2019. On Thursday, workers in hazmat suits and hard hats, as well as other protective gear, picked through the rubble to find paint cans, batteries, and other items. The buckets were emptied onto the driveway, and then sorted into plastic bags. They were sealed with duct tape. The slow and methodical work of the workers marked the beginning of a massive effort to remove harmful debris, and prepare the way for the rebuilding of thousands of residents after the Eaton fire and Palisades Fire ravaged the area. The fires claimed the lives of 29 people and destroyed over 16,000 buildings. This initial phase of cleanup is being conducted by the EPA before contractors or government agencies arrive with heavy equipment and clear entire lots. Harry Allen, a coordinator on site for the EPA told reporters on Thursday that the Trump administration's deadline required a five-fold increase in speed. "Normally, it takes months." EPA officials stated that there are many challenges - ranging from the sheer scale of destruction, affecting thousands of properties to the increasing number of lithium-ion battery littering the landscape. These batteries are used in electric cars, bikes, and other electronic devices. They can ignite or emit dangerous gases if exposed to extreme heat. The EPA has announced that it will be bringing on hundreds of additional personnel to speed up its work. This will allow more teams to spread out throughout Altadena, Pacific Palisades, looking for hazardous materials, chemicals, pesticides and asbestos. Allen stated that this may be the biggest job EPA has ever had in terms of natural disaster debris collection. The agency stated that there are approximately 13,500 properties in the two fires which need to be checked. The EPA has said that more than 4,200 properties have already been assessed. Officials said that the removal of hazardous substances takes longer. Altadena had cleared only nine lots in the first two days of this week's work. Some families do not want to move back into the neighborhood because they are afraid of the heavy metals such as lead, arsenic, and others that could have seeped in and posed a health risk. Pollutants can also spread beyond burn zones. According to the South Coast Air Quality Management District, air samples taken after the Los Angeles Fires began on January 7 detected "highly elevated levels" of lead and arsenic from several miles away. ASBESTOS AND PROPANE ARE Among the Hazards Workers marked potential hazards on a burned out lot with spray paint in different colors. The color pink was used to mark building materials suspected of containing asbestos. Empty propane tanks received a white X. A separate crew recovered items from the ruins of a house that had been inspected nearby on Wistaria Place. They inspected a tool box and peered into the car's shell, which was pocked by shattered pieces of glass. Small devices were used to monitor the air on the ground for dangerous radiation or emissions. The U.S. Coast Guard operated drones that buzzed above. The EPA stated that some properties cannot be inspected safely because the remaining structures or hidden areas such as basements are too unstable. The U.S. Army Corps of Engineers will mark these lots and leave them for heavy equipment work during the second phase of cleanup. Officials have stated that the second phase of debris cleanup could take as long as a year. Storage Site While the EPA teams were working, homeowners in the neighborhood were clearing their properties. Torri Huelskoetter said that this is not something that happens after disasters. She pointed to the residents in their area and said: "We haven’t cleared that one." "This fire is different from others that we've covered because it's open to the public... I can’t stop them." I would like to have the ability to say "Please do not enter here until it is removed for your safety." The EPA designated federally-owned land east of Los Angeles for temporary storage of hazardous materials that were removed from Altadena. Local officials and homeowners expressed concerns about the dangers the site could pose to residents, and that they weren't consulted on the decision. Officials from the EPA said that they have used staging areas similar to these for wildfires over many years and all materials are being sent somewhere else for disposal. The agency stated that it would ensure safety by using air quality monitoring, a water truck for dust suppression and emission control. Anna Drabek, spokesperson for the EPA, said: "We sample soil before and after and we have never had an issue." We return the site in the same condition that we found it. Reporting by Chad Terhune, Editing by Frances Kerry
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EU lifts gas price cap in energy crisis
The European Union's gas price cap, which was introduced during the Russian gas crisis of 2022, will expire this Friday. It has not been activated since its conception. The cap would apply if the gas prices rose to an unusually high level, in response to months of rising energy prices due to Russia's cutting of gas supplies following its invasion of Ukraine. The cap is designed to kick-in if European Gas Prices reach 180 Euros per Megawatt Hour - a price level that the benchmark EU hasn't reached since 2022 when the energy crisis hit Europe. On Friday, the benchmark front-month contract for gas at the Dutch TTF Hub was trading above 52 Euros/MWh - its highest price since late 2023 but still well below the prices of the energy crisis in 2022. The European Commission's decision that the price cap will expire signifies the end of Europe's worst energy crisis. Gas storage in the EU is full despite cold snaps and other countries have increased their non-Russian supplies. The Commission stated on its website that the price cap was not triggered, nor did it need to be extended, "thanks" to factors like the structural decline in demand, reliable LNG imports and pipeline imports by trusted partners, as well as enhanced import infrastructure. One EU diplomat stated, "We never got to the point where we had to test the effectiveness of the instrument again." Germany was among the countries and industries that were divided on this issue. They feared it would hamper Europe's ability in attracting gas supplies from competitive global markets. Eurogas, the industry association, said that it supports the gradual phase-out of the emergency measures implemented during the energy crises. Andreas Guth, Eurogas's head of business development said: "It is hard to determine the true effectiveness of these actions and they could create market distortions." Other countries including Italy wanted the EU price cap to be kept and redesigned to limit prices to much lower levels. (Reporting and editing by David Goodman, Jan Harvey, and Kate Abnett)
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Africa launches a new gold standard currency plan backed by minerals
Africa's Development Bank proposes a new "gold standard" style currency arrangement, backed by minerals like cobalt and copper, as well as lithium, manganese, and some of the rare earths that are key to the energy transition in the world and electric vehicles. African Development Bank reported that the 54-nation area, which contains about 30% of critical mineral reserves in the world, only attracts 3% of all global energy investments every year. The AfDB said that this is partly due to the volatile currency markets on the continent. It is proposing an "non-circulating" currency, called African Units of Accounts (AUA), which will be backed by vital mineral reserves. Africa needs to invest twice as much in clean energy, averaging $200 billion per year. This will help reduce carbon emissions while also boosting vital electricity production. The AfDB plan would see countries pooling a pre-agreed portion of their critical mineral reserves, and then local currencies being converted at a rate agreed upon. The AfDB stated in a recent report that the idea was based on the Gold Standard, which anchored global currency stabilization. However, the AfDB did not give a timeframe for the introduction of the currency. Abidjan's development bank floated this idea in 2013, but it is only now that the details have been revealed. The AfDB stated that the CFA-Euro peg is further strengthened in Francophone countries and backed by external reserves. It added that a basket containing critical commodities would retain its value "better" than any African currency. Emerging market countries have taken steps to mitigate the risks associated with their reliance on the dollar in trade and other transactions. Donald Trump, the U.S. president, threatened to impose 100% tariffs on BRICS nations if those nations replaced the dollar as their reserve currencies. The AfDB said that the new currency would help African governments to attract international money for green energy projects, as it "mitigated the currency and conversion risks". The proceeds from the sale of energy in local currency would be paid by a designated settlement agent. This agent will then sell an equivalent amount of minerals for dollars to repay any lenders who have invested into energy development projects.
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Exxon exceeds Q4 expectations with higher Permian and Guyana output
Exxon Mobil beat Wall Street's fourth-quarter profit estimate on Friday as higher oil and natural gas production more than offset lower oil prices. Refining margins were also weaker. LSEG data revealed that its adjusted profit was $7.39billion or $1.67 per shares, exceeding analyst expectations of $1.56. Exxon has benefited from its low production costs and lucrative projects in Guyana, despite the lower oil prices. After closing its purchase of Pioneer Natural Resources, in May, the company became the largest U.S. oilfield in 2024 and the largest oil producer within the Permian Basin. The number one oil producer in the United States reported earnings of $33,46 billion for 2024, down from $38.57 billion a year earlier. The No. 1 U.S. Oil producer reported earnings of 33,46 billion dollars for 2024 - down from 38,57 billion dollars the previous year. Exxon's shares remained unchanged before Friday's bell. The company's adjusted fourth-quarter earnings from oil production and gas were $6.28billion, up from $4.15billion in the same quarter of last year. The production reached 4.6 millions barrels of oil-equivalent per day. This is up from 4.58 billion barrels in the third quarter. The United States increased its production of crude oil, natural gas liquids and lubricants by almost 2% compared to the previous quarter. This equates to 1,47 million barrels a day. The earnings from gasoline and diesel production fell by a significant amount, from $3.2 billion to $323 million. Even though demand for gasoline and Diesel was below expectations, the startup of new oil refining facilities by other companies in Asia or Africa resulted in a higher global fuel supply. Kathryn Mikells, chief financial officer of the company, said that the refining industry is still under pressure due to the increased supply. She said, "We're really watching that as we look forward to 2025." Biraj Borkhataria said that Exxon’s results showed mixed results across the board, despite lower corporate costs. He made this comment in a Friday research note. Chevron, second largest U.S. oil firm, announced on Friday that it had acquired the aforementioned company. Refining losses were reported by the company For the first quarter since 2020, Exxon missed Wall Street's estimates for earnings. Exxon reported impairments in its business totaled $608 million for the fourth quarter. Mikells explained that the charges are a result of selling assets including a Nigerian joint venture. She said that the company is still expecting a decision in September on its arbitration challenge against Chevron's purchase of oil producer Hess. Chevron would be able to gain a foothold on Guyana's oil project if it proceeds. Exxon, CNOOC and Hess have the first contractual right to purchase Hess stake, even though the deal was approved by U.S. regulatory authorities. In 2024, shareholder returns through buybacks and distributions will total $36 billion. This is up from the previous $32 billion. Exxon’s $36.2 billion in free cash flow covered the shareholder distributions. This is a key part of Big Oil’s strategy to attract investors. The company intends to buy back $20 billion worth of shares each year until 2026. The earnings from the production of chemical products increased from $189 to $215 million. Exxon reported earnings of $759 million from specialty products, up from $650 in the previous quarter. Sheila Dang reported from Houston, and Simon Webb, Michael Perry Jason Neely, Nick Zieminski edited the story.
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Canada's Imperial Oil Quarterly Profit Falls on Weak Crude Prices
The Canadian oil company Imperial Oil reported a decline in profit for the fourth quarter on Friday as lower crude prices were offset by higher production and better utilization of refinery capacity. Benchmark crude oil prices dropped 3% in 2024, due to the economic challenges in China and a sluggish recovery from the pandemic. A supply glut was also exacerbated by a surge in U.S. production and that of other non-OPEC countries. The company raised its quarterly dividend to 72 Canadian cents per shares, an increase of 20%. Imperial's production upstream for the quarter October-December was 460,000 barrels of crude oil equivalents per day (boepd), as compared to 452,000 boepd in the same period the previous year. The total throughput volume, or amount of crude processed per day, was up by nearly 1% to 411,000 barrels (bpd). Refinery usage was 95%, up from 94% in the previous year. The Calgary-based company reported that its net income dropped to C$1.23billion ($849.39m), or C$2.37/share, for the quarter ending Dec. 31 from C$1.37billion, or C$2.47/share, last year. Imperial's earnings are down as Canadians prepare for the 25% tariff that President Trump is expected to impose on Canadian imports on February 1. According to the Energy Information Administration, Canada is the largest source of U.S. crude oil imports and will supply more than half the total imports in 2023. Imperial Oil, which is owned by Exxon Mobil in the United States, reported a decline in its fourth-quarter profits earlier today. ($1 = 1,4481 Canadian Dollars) (Reporting and editing by Devika Syamnath in Bengaluru)
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Libya's State Oil Company wants to increase output and transparency, says new Chairman
Massoud Suleman, the new acting chairman of Libya's National Oil Corporation, said that it would focus on increasing its output and transparency as Africa's largest oil producer tries to recover from years' worth of instability. Since 2011, violent factionalism, and disputes over labour have disrupted the oil and gas production of the state-owned firm that oversees it. Last year, production plummeted multiple times due to rivalry between groups. This included a dispute over the leadership of Libya's central bank that controls oil revenues. Suleman responded to questions via email by saying, "The National Oil Corporation's strategic plan for increasing production is something we will continue to implement. We can make adjustments whenever needed." According to NOC, the country will produce about 1.4 millions barrels of crude oil per day by the end of 2024. The longer-term goal of the OPEC nation is 2,000,000 bpd. Khalifa Abdelsadek told reporters earlier this month that the country needed $3 to $4 billion in order to achieve a production of 1.6 millions bpd. Suleman said that he also would concentrate on increasing the transparency of NOC, which could include streamlining certain operations and possibly closing some offices. According to its website NOC owns 15 subsidiaries in full, as well as stakes in joint-ventures and other companies. Suleman stated, "I will concentrate on ensuring transparency within the National Oil Corporation, so that any investors, whether they are the Libyan government or our foreign partners can be confident that the money invested in the NOC will use it in the best way possible." Foreign investors are wary about investing in Libya. The country has been divided for years between rival factions of the east and west, backed by Turkey or Russia. "I'm still trying to get a full picture of the work done by some companies like the Mediterranean Oil Services Company", Suleman said, referring specifically to NOC, which is responsible for procuring equipment and services related oilfield operations. "I'll probably move cautiously to evaluate some branches and close some of them... particularly some of the recently established branches." Mediterranean Oil Services is headquartered in Dusseldorf in Germany and, since 2020, in Dubai. Libyan media reported last year that the company opened a branch in Istanbul. Suleman stated that closing some offices would "simplify the corporate structure and make it easier to manage the company in the future." CRUDE FOR FUEL SWAPS He said that he was in touch with the Libyan attorney general regarding a "request for an end to the crude swap program". NOC uses crude-for fuel swaps as a funding alternative. He also said that he would work with the central banks and the Government of National Unity in Tripoli to determine "the appropriate mechanism to provide sufficient budget to ensure the complete supply of refined products to the country". He is the first person to comment on possible office closings, and the first to comment on the decision of the Attorney General to stop NOC from using crude-for fuel swaps. Suleman succeeded Farhat Bengdara in the position of chairman at NOC by mid-January. Bengdara resigned from his position as chairman of NOC in mid-January. He was appointed by NOC in July 2022. Libya, despite being a member of the Organization of the Petroleum Exporting Countries(OPEC), is exempted from the output limits agreed upon by its members and their allies in the so-called OPEC+ producer group. This includes Russia. Donald Trump, the president of the United States, has asked that crude oil prices be reduced.
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Swiss court finds former Trafigura executive guilty of corruption
S witzerland’s top criminal court found Trafigura, a former executive and a company guilty of corruption on Friday in a case involving the payment made to an Angolan government official in exchange for oil contract. The court ordered that the trading house pay $148 million as fines and compensation, and sentenced Mike Wainwright, a former employee of itss to 32 months imprisonment. Of this time 12 months must be served. You can appeal the decision to the same court. This is the first case in Switzerland where a company was charged with corruption of an official from abroad. It's also a rare instance in the world of a former executive of a trading house being brought to trial. The prosecution alleged Trafigura, among others, paid more than $5,000,000 in bribes to an Angolan official via a network intermediaries between 2009 and 2011 to secure oil deals. Trafigura previously stated that the anti-bribery, anti-corruption and compliance program in place at its parent company at the time met legal requirements as well as good practice standards. Wainwright previously denied all allegations made against him. (Reporting and editing by Emma Farge, Matthias Williams).
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LyondellBasell reports quarterly loss due to weak demand for chemicals
LyondellBasell, a petrochemicals company, reported Friday a loss for the fourth quarter. This was due to a weak demand in key markets like Europe and Asia. The economy of the eurozone stagnated in the last quarter due to high inflation, which hampered consumption. This added to concerns that a recovery long predicted could be further delayed. LyondellBasell's second largest market in the United States and Europe, the German economy has been negatively affected by increased competition abroad, a weakening of demand, and an industrial slowdown. The company's profit margins have been affected. Germany represents 6% of LYB’s total revenue. LyondellBasell’s fourth-quarter profits declined across the majority of its businesses. This was also hurt by rising costs for NGL feedstocks, natural gas and restrained prices due to seasonal slower demand. Due to a decrease in polyethylene sales, the company reported core earnings at $496 million for its olefins and polyolefins Americas unit. This is down from $604 million one year earlier. Olefins can be used to make polymers, such as plastic. The adjusted core profit for its Intermediates & Derivatives segment (which makes oxyfuels, intermediate chemicals and intermediate chemicals) fell by 5.6% from the previous year to $250 million. The revenue for the quarter ending December 31 decreased from $9.93 to $9.5 billion. The company reported a loss of 603 million dollars, or 1.87 cents per share. This compares to a profit of $185 millions, or 56c per share a year ago. LSEG data shows that it had a profit adjusted of 75 cents a share, compared to the average analyst estimate of 72 cents. (Reporting by Pooja Menon in Bengaluru; Editing by Shinjini Ganguli)
Tokyo Gas announces 40 billion yen in share buybacks, and plans to do more next fiscal year
Tokyo Gas announced on Friday that it will buy back its own shares up to 40 billion Japanese yen ($259,000,000) by the end March. It plans to continue buying large amounts of stock next year to increase shareholder value.
Elliott Management, an activist investor from the United States, has been pressing the company to sell off parts of its real estate portfolio in order to increase shareholder value.
Taku Minami, Chief Financial Officer, said at a press conference that "our business portfolio management focuses primarily on increasing business synergy while accelerating the withdrawal of inefficient or low-synergy businesses and assets including real estate".
Shinichi Sasayama, the President of Tokyo Gas, said this month that Tokyo Gas is identifying assets with low performance, including its vast portfolio of real estate, which will be sold in order to fund investments for growth.
Minami didn't provide any further details about the asset reshuffle including the size or specific assets or businesses that may be divested. He said that the company will announce specific measures to reach its goal of a 8% return on equity in the next fiscal period starting in April in March.
(source: Reuters)