Tuesday, October 31, 2017

Angry Front Range residents pack hearing, berate state regulators for allowing drilling near homes


An overflow crowd showed up Monday to plead with — and in some cases berate — state regulators over several oil and gas drilling operations slated for neighborhoods along the Front Range.

Development proposals in Broomfield and Boulder County and the recent approval of two dozen wells near a school in Weld County drew denunciations from a long line of people — some wearing surgical masks emblazoned with anti-fracking messages — during a boisterous Colorado Oil and Gas Conservation Commission meeting.

A common theme heard in the hearing room was the potential health hazards wells pose to homeowners and to children attending nearby schools. Several elected officials from Broomfield and Boulder and Adams counties told the commissioners of their concerns about drilling so close to homes.

Broomfield City Councilman Kevin Kreeger painted a dire picture of the effects of oil and gas operations. He said a “belch” of toxic fumes from a well pad in neighboring Erie had left families with nosebleeds and covered patio furniture in an oily film.

“If the oily residue is covering the patio furniture, it means it’s in the air — it’s a fine mist,” Kreeger said.

His council colleague, Sharon Tessier, said she was uncomfortable with how prevalent drilling was becoming in some metro Denver neighborhoods and wanted permitting by the state to be more rigorous.

“I want to make sure there is no normalizing of the abnormal,” she said.

Broomfield City Council last week approved an operational agreement with Extraction Oil & Gas Inc. to drill 84 wells along the Northwest Parkway. But several council members said they felt they had no choice, given that state law limits what control municipalities have over drilling operations.

The COGCC has yet to issue permits to Extraction for those wells. On Monday, the commissioners had been scheduled to vote on whether to approve well spacing for the project but pulled most of the well pads from the agenda so they could further discuss the issue Tuesday.

Barbara Binder, an Adams County resident whose neighborhood would be just over 1,000 feet from 49 of Extraction’s wells, just over the county line in Broomfield, said she and her neighbors had little input into the project.

“All directly affected and impacted residents need a voice,” she told the commissioners. “Large-scale oil and gas does not belong next to residential communities.”

At least two commissioners expressed concern about the proximity of Extraction’s proposed wells to nearly 200 homes in Adams County.

“I’m concerned about whether Adams County had appropriate notification and had a chance to participate in finding a solution to these proceedings,” commissioner Erin Overturf said.

A spokesman for Extraction declined to comment Monday. Dan Haley, head of the industry’s trade group, the Colorado Oil and Gas Association, told The Denver Post in a statement that Colorado’s energy industry is heavily regulated and provides the state a vital economic boost.

“As Colorado communities continue to grow and expand, it is important to keep in mind where our natural resources exist, the value that development provides our economy and our national security, and the respect we must have for private property rights,” he said. “Colorado natural resource development, done under strict regulations, provides important societal benefits that can’t be dismissed or ignored, from our cars and the roads we drive on, to the clothes we wear, the paint on our walls, and the smartphones in our hands.”

Heidi Gill, founder of the Urban Solution Group, applauded Extraction for spending months hammering out an agreement with Broomfield that will have the company going well beyond state requirements for operation of its well pads — be it bigger setbacks, quieter equipment or higher levels of insurance coverage than what the state requires.

Gill, whose firm works with the energy industry to mitigate the effects of drilling, said Extraction “is a great example of an operator coming to the table.”

But otherwise, the more than 50 people waiting to speak to the commission Monday lambasted the oil and gas industry and what they described as the cozy relationship it has with the COGCC.

The meeting was standing-room only, with a long line of people stretched out the small hearing room waiting to step up to the microphone. COGCC chairman John Benton asked for order several times as audience members clapped or held signs during the proceedings.

Several speakers addressed drilling plans in Boulder County, where Crestone Peak Resources wants to put 180 wells into production over a 12-square-mile area between Lafayette and Longmont. Jan Wilson appealed to the commissioners to protect residents from what she said would be an intense industrial operation close to homes.

“I’m the one having the impacts — they’re the ones making the money,” Wilson said of Crestone.

Patricia Nelson, whose son is enrolled at Bella Romero Elementary, chastised the commissioners for recently approving 24 wells near the east Greeley school.

“It is you who approved this project. It is you who put my child at risk,” she said, her voice cracking with emotion. “You have failed my child, you have failed his classmates, you have failed Colorado.”

CU Boulder study links Raton Basin earthquakes to oil and gas wastewater injections


New research by the University of Colorado Boulder's Department of Geological Sciences connects a rash of small earthquakes in the Raton Basin, a resource-rich area in southern Colorado and northern New Mexico, to deep underground wastewater disposal by oil and gas companies.

Wastewater, pumped back into the ground through injection wells, was found to have increased pore pressure in lower rock beds, likely causing more than 1,800 earthquakes up to magnitude-4.3 during a period of time studied from 2008 to 2010.

Six of the earthquakes were reported to ShakeMap, a U.S. Geological Survey earthquake detection app. None were known to cause any damages.

The research confirms and builds upon the findings of two previous studies linking earthquakes to the wastewater injections in Raton Basin.

"What makes our research different is by having established a causative mechanism for the seismic activity — which is the increase in pore pressure from the area's wells," said CU doctoral student Jenny Nakai, the lead author of the study.

Nakai said the research team did not look at the relationship between the Raton Basin earthquakes and hydraulic fracturing, or fracking.

Wastewater disposal wells are used to pump water deep back into the ground after it is extracted during the collection of methane from underground coal deposits.

By looking at well-water injection data provided for the public by the Colorado Oil & Gas Conservation Commission, the CU team of geologists was able to draw together a correlation between injection volumes and seismic activity.

The Raton Basin's earthquakes went mostly undetected by the U.S. Geological Survey, which gathers seismic data around the country for public use.

As seismometers were placed in Colorado and New Mexico from the EarthScope USArray Transportable Array — a program intending to measure earthquakes and map Earth's interior across the country in two-year periods — the seismic activity was picked up and recorded from 2008 to 2010.

Using this data, they were able to map out fault lines and model pore pressure in the "basement rock" of Raton Basin — rock several miles deep in the Earth's crust.

"Basement rock is typically more brittle and fractured than the rock layers above it," said Professor Anne Sheehan, co-author of the study and a fellow at CU's Cooperative Institute for Research in Environmental Sciences. "When pore pressure increases in basement rock, it can cause earthquakes."

According to Nakai, pressure thresholds between .01 and .1 Megapascals — a metric pressure unit equal to 1,000,000 newtons per square meter — is enough to cause an earthquake. Pressure measurements from the wastewater wells surpass these numbers regularly.

There are 28 wastewater disposal wells in the basin, and at least 200 million barrels of wastewater have been injected by the oil and gas industry since 1994.

In a statement responding to the study's findings, Dan Haley, the president and CEO of Colorado Oil and Gas Association, said: "In Colorado, according to the U.S. Geological Survey, 98.8 percent of injection wells operate without seismicity. ... While we are still reviewing the study conducted by CU, Colorado has a one of the best permitting programs for underground injection control in the country, and requires operators to submit detailed documentation on the geology where they plan to drill or inject water prior to receiving a permit."

The study was published in the Journal of Geophysical Research: Solid Earth. The co-authors included CU Professor Shemin Ge, of geological sciences; former CU doctoral student Matthew Weingarten, now a postdoctoral fellow at Stanford University; and Professor Susan Bilek, of the New Mexico Institute of Mining and Technology in Socorro.

Monday, October 30, 2017

Conservationists, Industry Support Updating Utah’s Oil & Gas Rules



Imagine this: The oil and gas industry in Utah supports overhauling air-quality permits for their wells – and so do environmental groups. It’s what’s actually happening right now at the Utah Division of Air Quality (DAQ) with its proposed regulations for more than 12,000 oil and gas wells in the state.

“I think we’re getting to a good place where this rule represents improvement for Utah air quality and better certainty for companies,” says Kathleen Sgamma, president of the Western Energy Alliance.

Her Denver-based trade group originally resisted the changes that state regulators are proposing. But that's changed as the regulations undergo a public review process that ends in three weeks. Sgamma says her group still wants to see a few tweaks, but overall it's looking forward to a streamlined process for oil and gas operators.

Conservation groups are requesting a few changes, too – to make the rules tougher.

“It’s a step in the right direction," says Dan Goldstein, who follows the energy industry for the Environmental Defense Fund. "And we’d like to see that step going as far as possible to address the pollution problems the state’s facing and to get the biggest benefit to the people of Utah.”

Goldstein says the changes will mean less ozone pollution in the Uintah Basin, more profits for energy companies and more tax revenues for counties. DAQ plans to have the regulations in place early next year.

Sunday, October 29, 2017

Russia ready to partake in joint oil & gas projects with Turkmenistan





President of Turkmenistan Gurbanguly Berdimuhamedov received Chairman of the Union of Oil and Gas Producers of Russia Yuri Shafranik, the Turkmen Dovlet Habarlary state news agency reported on October 27.

During the meeting, it was noted that Russia intends to expand its presence in the promising Turkmen market by actively participating in new joint projects.

“In particular, this concerns the exploration, production and processing of hydrocarbons, as well as other minerals,” says the report.

President Berdimuhamedov emphasized that in the modernization of the oil and gas industry, Turkmenistan relies on the introduction of innovative technologies, advanced achievements of scientific and technical progress, and asked Russian partners to present concrete proposals on cooperation in this area.

Turkmenistan is one of the biggest suppliers of natural gas in the Caspian region. There are about 190 companies with Russian capital in Turkmenistan.

https://www.azernews.az/region/121197.html

Public agency refuses to release transportation data related to Amazon bid: Mark Naymik


CLEVELAND, Ohio - The Northeast Ohio Areawide Coordinating Agency, a publicly-funded entity obligated to follow Ohio's open records laws, has denied a request for transportation data it supplied to Team NEO as part of the region's bid to attract Amazon's second headquarters.

Grace Gallucci, NOACA's executive director, said she has been asked not to release the records and she directed cleveland.com to Dix & Eaton Public Relations, which helped organize the Amazon bid and is responding to media inquiries. Cleveland.com did not request the Amazon bid but asked NOACA, which helps governments with transportation and environmental planning, for the underlying transportation information it gathered for the bid.

"We can't speak for NOACA on their data so that's a request they have to answer," Dix & Eaton CEO Chas Withers said, noting that some information related to the bid would be released today to The Plain Dealer.

Gallucci said in an email after the story was first published online that the agency would review the request and respond according to the time frame prescribed by law.

"The referral to Dix and Eaton was intended to be helpful to you, as well as be consistent with my team's directive on point person for media coordination," Gallucci said. "As is NOACA's procedure, your request is being reviewed internally and we will get back to you as soon as possible, but definitely within the legal timeframe."

Cleveland Mayor Frank Jackson and Cuyahoga County Executive Armond Budish have refused to release the bid, claiming that region's bid is proprietary, though they have been unable to show how underlying information is protected information.

A spokeswoman for Budish said: "The county executive has given no directives to other agencies regarding what they can or cannot release."

NOACA's second vice president is Valarie McCall, Cleveland's chief of government and international affairs. She worked on the bid and has been a proponent of blocking the release of the Amazon bid as a whole.

McCall said in an email after the story posted that she was unaware of cleveland.com's request to NOACA and that she has not instructed the agency to sit on the information.

Saturday, October 28, 2017

Oil & Gas Firm Offers 'High-Impact Exploration Potential'


Drill results from the ELOK-1X exploration well, which Pan Orient Energy Corp. (POE:TSX.V) owns in a joint venture, confirmed "the findings of the AYU-1X well," which were the presence of oil and gas within the Gumai sandstone formation, concluded Bill Newman, an analyst with Mackie Research Capital Corp.

The ELOK-1X showed "high gas reading and oil staining" also in the BFR formation, the analyst explained. That well's "subsurface location was ~700m southwest from the AYU-1X well and encountered the BRF formation 26m structurally lower than the AYU-1X well."

Both the ELOK-1X and AYU-1X wells fall under the East Jabung production sharing contract (PSC), in which Pan Orient Energy has a 49% working interest. With the drilling of ELOK-1X, the company "has now met its current drilling commitments for East Jabung PSC which had a November 2017 deadline," noted Newman, referring to phase 1. "The partners will now meet in early November to discuss future drilling plans."

The next phase of the PSC involves "drilling of the high-impact ANGGUN-1X exploration well," which "has potential in both the BRF and the Gumai," Newman indicated. "We find it encouraging that the partners elected to incur the cost to drill the ELOK-1X well to retain the East Jabung license which allows for the drilling of the ANGGUN-1X well."

Newman added that "it's likely that the ANGGUN-1X well will be drilled next year" and that the activity "could commence in late Q2/18 or early Q3/18."

Mackie Research reiterated its Buy recommendation and $3.25 per share target price on Pan Orient Energy based on the company's "strong financial position and high-impact exploration potential in Indonesia," Newman wrote. The oil and gas company's shares are currently trading at around $1.12 per share.

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Friday, October 27, 2017

Heritage High construction and culinary students help build Habitat for Humanity home


Instead of sitting in a classroom, about a dozen Heritage High School students learned by doing, building a house at the Habitat for Humanity ReStore on Wednesday morning and serving a meal to builders.

Half of the students came from the school’s construction trades, with the rest coming from the culinary class.

John Garretson, the culinary arts teacher at Heritage, contacted Habitat for Humanity about getting his students involved with community service by serving food to volunteers. He also invited construction trades teacher Jerry Dudley to bring students. Dudley teaches electrical work, plumbing, carpentry, cabinet hanging, masonry and other skills in a hands-on environment at school.

“It was a great idea,” Donna Vincent, executive director of the Greater Lynchburg Habitat for Humanity, said Wednesday as the students worked with other volunteers.

For lunch, culinary arts students prepared tacos with pork carnitas and pulled chicken; Mexican pickled slaw; refried beans; a Mexican corn dish called elotes, which are rolled in cheese and spices; and apple and cranberry cobbler for dessert.

The students did much of the food prep in advance so they had time to help the construction students and other volunteers with assembling and hammering the wooden frames in the morning.

“Kids these days really don’t have a connection to their community, and it’s a huge problem,” Garretson said. “This is a simple way to get them out there, make that connection and learn new skills and make an impact.”

Eleventh-grader Kayla Manville said she liked the project because it not only allowed the students to show off their cooking abilities but also “do something new.”

It allowed everyone to do something new — even some of the construction students. Senior Ashtyn Shupe said he only had done interior work on a house before, so hammering together framing for walls was a new experience. His favorite work he’s done so far with the class has been electrical.

You get to see, ‘oh, I gave that power,’” he said.

Shupe said he originally took the construction course because it sounded interesting, but as he’s done more of the work, he’s started to think of it as a potential career option. The certifications students can earn from the class also can help with jobs and even college applications, he said.

Some of the culinary students also have aspirations of taking their craft beyond graduation.

“Ever since I was a little kid, I used to watch The Food Channel every day, and I always wanted to be a chef,” said Gabriela Canelon, an eleventh-grader.

Darlene Tucker, who is purchasing the Habitat for Humanity house the students worked on, said she loved that the students had a hands-on way to use their skills.

“Whatever you can learn, go for it,” Tucker said, adding she had also learned a lot as she helped with the wall framing.

Vincent said Tucker’s house — which is the 300th the Greater Lynchburg Habitat for Humanity has built — will be done by Christmas.

Garretson hopes to return to ReStore on a monthly basis with his students to continue to help with the house and cook meals, he said.
“I don’t think any of us knew how to properly hammer in a nail,” Manville said. “Now I think we’re all pros.”

Here’s why a Broomfield vote on oil and gas wells has Adams County residents up in arms


Fights over oil and gas development along the Front Range are nothing new, with neighbors and towns often locking horns with energy extraction firms.

But one of the newest standoffs coming to a head is between local governments over the where and how of drilling operations, a type of clash that at least one official says will happen elsewhere without more state guidance.

On Tuesday night, a simmering cross-border conflict between Adams County and city of Broomfield is expected to come to a head when elected leaders in Broomfield choose whether to sign off on an operating agreement with Extraction Oil & Gas Inc. over a plan to drill 49 wells close to a few hundred Adams County homes.

“You should be a good neighbor,” said Barb Binder, a 20-year resident of an Adams County neighborhood near the proposed drilling sites. “This is a classic example of ‘Let’s shove this as far away from our residents as possible and on to others.’ ”

The issue has become so contentious that Adams County officials are now publicly urging Broomfield to delay a vote on the deal — known as a memorandum of understanding — with Extraction so that new well pads can be identified.

Adams County wants the wells to be moved north of the Northwest Parkway. That’s where county commissioners, in a letter sent to Broomfield officials last week, claimed there is “abundant land … that is undeveloped and more suitable for oil and gas development” than nearby neighborhoods that have been around as long as half a century.

In that scenario, the wells would also be far from any Broomfield neighborhoods, Adams County Commissioner Eva Henry told The Denver Post.

“It’s not anti-drilling, what we’re asking,” she said. “We just want them to move them away from homes.”

The high-stakes battle at the intersection of the Northwest Parkway and Interstate 25, where Adams and Broomfield counties share a border, in many ways mirrors the objections to oil and gas development that have surfaced near neighborhoods across Denver’s northern suburbs over the past few years, as a rapidly growing population encroaches on highly sought-after underground mineral deposits in the giant, gas-rich Denver-Julesburg Basin.

Without more direction from the state that allows mineral owners to exercise their rights while protecting homeowners’ health and safety, Henry said, “it’s only going to get worse.”

“We are a rural, residential area and never expected to have huge-scale industrial operations next to us,” said Binder, who lives in North Star Estates in unincorporated Adams County. “There are just better locations for these facilities.”

As it stands, Extraction’s plan calls for wells to be as close as 1,000 feet from Binder’s home and those of her neighbors in North Star Estates and Mustang Acres — Adams County neighborhoods that sit at the southwest corner of I-25 and Northwest Parkway. The company wants to drill in an adjoining open space in Broomfield where 49 wells — part of a broader, 84-well project — are slated to go.

Binder said she has heard from real estate brokers who say properties in the neighborhood will plummet if the wells go in. She also worries about possible negative health effects from drilling activity and incessant lines of trucks servicing the well pads.

Extraction spokesman Brian Cain said the company has settled on well locations that have been “heavily scrutinized” for their technical feasibility and potential impacts to those living in the area — a process that has taken the better of two years.

Cain said the final proposal was arrived at in full collaboration with Broomfield’s citizen-led oil and gas task force, which was formed in February. And it’s a far less intensive plan than had been proposed by a previous energy firm a few years ago, which wanted to drill 140 wells across 12 sites in Broomfield, he said.

“We are trying to do our best to develop the resource in the safest way with minimum inconvenience to neighbors,” he said. “We can’t just throw darts at a map to pick drilling sites.”

Cain said the sites near the Adams County homes were chosen for a variety of reasons, including the technical ability to access the mineral deposits, land ownership considerations and abiding by the task force’s recommendations.

He said the company is keeping the wells more than 1,000 feet from the nearest homes — twice as far as what state statutes require — and removing dozens of old vertical wells already in Adams County neighborhoods.

But those concessions don’t mollify Adams County officials, who say they were blindsided by Extraction’s latest plan. They said they only learned last month that the well pads had been moved south from sites north of the parkway to the county line.

“For 18 months to 2 years, (the northern sites) were acceptable locations,” said Kristin Sullivan, Adams County’s director of community and economic development.

Broomfield Deputy City Manager Kevin Standbridge said Broomfield finds itself in a tough spot because ultimately Extraction has the right under state law to develop its resources according to rules far less stringent than what the city and county have hammered out with the company.

The Colorado Oil and Gas Conservation Commission will have final say over the permitting of Extraction’s proposed wells.

Standbridge said Broomfield asked Extraction to move the wells away from the Adams County line but that the company said it couldn’t.

“We understand the concerns (of Adams County residents), but we don’t think we can put something better on the table,” he said. “This is the proposal the city council is going to consider.”

Thursday, October 26, 2017

Changing Japan's pacifist constitution won’t be easy for Abe


TOKYO — Shinzo Abe has long held a dream — to redraw Japan’s pacifist constitution. And this week, after Japanese voters had given his coalition government yet another decisive election win, it seemed perhaps time to make it a reality.

“This is a new beginning,” Abe told reporters gathered at his official residence Monday morning. “We will implement policies, and we want to deliver results.”

But only a few hours later, the prime minister cut a far less optimistic figure. In a news conference celebrating his victory, Abe dismissed a suggestion that he would set a deadline of 2020 to change the most controversial part of the constitution, Article 9, which renounces war and prohibits an army — suggesting instead that it was “not bound by any schedule.”

That cautious rhetoric is not what might be expected from a politician who is on track to become the longest-serving Japanese prime minister and has few, if any, serious rivals. Abe’s coalition government easily overcame opposition movements in Sunday’s election to retain its two-thirds majority in the lower house of Japan’s parliament.

However, the prime minister’s caution on constitutional changes is understandable. Abe has proved himself remarkably adept at maneuvering Japan’s parliamentary politics — and he probably knows that amending the constitution will require a high level of public support he may not possess.

Even allies are unsure that Japanese citizens can be convinced to amend Article 9. Former defense minister Shigeru Ishiba, a member of Abe’s Liberal Democratic Party (LDP) and a vocal proponent of rewriting the constitution, said in an interview that it had proved “extremely difficult” to mobilize citizens behind the issue.

In theory, the coalition government’s two-thirds majorities in both houses of parliament means it can push through pretty much any legislation it wants, including changes to Article 9. Abe would clearly have the parliamentary support: One analysis found that 80 percent of politicians in the newly elected lower house supported a rewrite of the constitution.

Any changes to the constitution, however, then require majority approval from the public in a referendum. Polls show mixed support for amending Article 9 among Japanese voters. And as the Brexit vote showed Britain’s David Cameron, winning an election is not the same thing as winning a referendum.

“One thing that Mr. Abe does not want is to go out as a failure,” said Michael Cucek, an adjunct professor of politics at Temple University’s Japan campus in Tokyo. “Messing up the first attempt to ever amend the constitution would be extremely damaging.”

Abe is not the first politician who felt that Japan’s pacifist constitution needed revising. The document was adopted in 1947 while the country was under U.S. occupation. Seven years later, the LDP — the party Abe leads — was founded with the creation of a new constitution one of its objectives.

The issue later picked up steam in the 1990s with the formation of the reformist group Nippon Kaigi, of which Abe is a member. However, it is largely thanks to the 63-year-old Abe that it has come to the forefront of Japanese politics. During his first term as prime minister in 2007, his ruling coalition pushed through the laws that outlined the referendum process that is now so daunting to him.

In 2014 and 2015, Abe’s coalition enacted legislation that reinterpreted the role of Japan’s Self-Defense Forces and allowed them to fight with allies overseas — a move that brought condemnation from opposition lawmakers, activists and neighboring nations such as South Korea and China.

Despite this controversy and other scandals, Abe’s coalition government has retained power. Earlier this year, on the 70th anniversary of the enforcement of the constitution, Abe said that he hoped to amend it within three years. A powerful victory should give him a larger window of time within which he could push for real constitutional change.

However, the coalition government’s enduring supermajority may have overshadowed another aspect of Sunday’s vote — the emergence of the Constitutional Democratic Party of Japan (CDPJ), which opposes any amendments to the constitution. That party, formed 20 days ahead of the election, became the second-largest party in parliament, beating the more-hyped (and pro-amendment) Party of Hope led by Yuriko Koike, the governor of Tokyo.

For some, the election felt like a partial victory for the anti-amendment movement. “We weren’t defeated,” said Mitsuhiro Hayashida, an anti-nuclear activist and student who worked with the CDPJ ahead of the election. “And the ruling parties don’t think it’s totally a victory.”

Abe may have another problem in his quest — his own government. While the LDP holds most of the seats in the coalition, it shares the government with its junior partner, Komeito.

Komeito’s base has long been skeptical of any amendment to the constitution, in part because of its links to the Buddhist group Soka Gakkai. In an apparent attempt to appease this group and others who oppose amending the constitution, Abe has proposed a compromise that would involve adding language to the constitution to clarify the legal standing of the Self-Defense Forces.

This attempt to add to the constitution rather than amend it brings its own enemies. The LDP’s Ishiba is among those who favor rewriting the constitution as a whole, rather than making a compromise. “We shouldn’t take the easy approach,” he said.

Andrew Oros, author of the recently published “Japan’s Security Renaissance,” suggests that Abe will choose to push forward with a constitutional referendum that focuses not only on Article 9 but also on less controversial aspects of the constitution.

“I predict that Abe will use the upcoming visit of U.S. President Trump as a time to talk about the need to revise the constitution to make Japan safer and will use momentum from the Trump visit to push that agenda forward,” he said.

But others have their doubts, and Abe’s personal support for constitutional changes could end up being a liability: Even though his party won handily, an exit poll this weekend showed 51 percent of voters said they did not trust the Japanese prime minister.

North Korea making millions from construction projects in Africa

North Korea is making tens of millions of dollars from construction projects in a number of African countries that are members of the United Nations, a U.N. official has told CNN.

Hugh Griffiths, the coordinator of the U.N. Panel of Experts on North Korea, which monitors the enforcement of sanctions on the reclusive nation, told CNN that the money Pyongyang is making is “highly significant.”

The North Korean state-owned entity Mansudae is carrying out many of the contracts, CNN reported. The countries where construction projects have taken place include Namibia, Botswana, Angola, Zimbabwe and Senegal, according to the broadcaster.

"We are looking at at least 14 African (U.N.) member states where Mansudae alone was running quite large construction operations — building everything from ammunition factories, to presidential palaces, to apartment blocks,” Griffiths told CNN.

"North Koreans can make a little money go a long way,” he added.

In Namibia, Mansudae built the presidential palace and a statue of Sam Nujoma, the anti-apartheid activist and the nation’s founding president, in front of the National Museum in the capital of Windhoek, according to CNN.

Namibia's Deputy Prime Minister Netumbo Nandi-Ndaitwah told CNN that all North Korean operations have now been stopped and all North Korean construction workers have left the nation, in accordance with U.N. sanctions.

"All of these were agreed before the sanctions by the U.N. But when the sanctions were imposed we had to comply and then we had to cease all the contracts, we had to terminate the contracts we had with North Korea," Nandi-Ndaitwah told the broadcaster.

The U.N. Security Council imposed sanctions on Mansudae's statue-building operations last year and on the Korea Mining Development Trading Corporation (KOMID), which CNN says Mansudae worked with in Namibia, in 2009.

The report came as tensions remain high over Pyongyang’s nuclear and missile program, and North Korean leader Kim John Un and President Trump have engaged in a war of words. Since July, North Korea has conducted its sixth and most powerful nuclear test, launched missiles over Japan and test-launched two intercontinental ballistic missiles.

Japan’s Defense Minister Itsunori Odonera said Monday that the threat from Pyongyang has grown to an “unprecedented, critical and imminent” level.

He made the comments at the start of a meeting in the Philippines with U.S. Defense Secretary Jim Mattis and South Korea’s Defense Minister Song Young-moo.

“The country has steadfastly improved it nuclear and missiles capability... we have to take calibrated and different responses to meet that level of threat,” Odonera said, without elaborating.

Mattis criticized North Korea for defying U.N. Security Council resolutions and emphasized a unified position between the allies to pressurize Pyongyang to give up its nuclear program, the AP reported.

Meanwhile, in an open letter to several parliaments that emerged last week, North Korea said it was a "full-fledged nuclear power,” and that Trump was "trying to drive the world into a horrible nuclear disaster."

Foreign Minister Julie Bishop told local media that she received the “unprecedented” open letter, which was dated Sept. 28, from Australia’s Indonesian embassy via North Korea's embassy in Jakarta.

It urges parliaments that want peace to "discharge their due mission and duty in realising the desire of mankind for international justice and peace with sharp vigilance against the heinous and reckless moves of the Trump administration."

"This is the first letter that we can find that any Australian foreign minister has received from North Korea...it's an open letter, this is not how they usually send messages around the world," Bishop said, according to the Sydney Morning Herald.

Wednesday, October 25, 2017

Caltrans: Nearly $3.4 billion in transportation projects to be accelerated

SACRAMENTO, Calif. - Caltrans added nearly 1,200 lane miles of pavement repair and 66 bridges to its growing list of projects to be delivered sooner-than-planned thanks to the imminent influx of revenue from the Road Repair and Accountability Act of 2017.

The transportation funding and reform package passed in April. To date, Caltrans has now expedited nearly $5 billion in "fix-it-first" project since the spring.

"Years of unfunded maintenance needs have plagued our roadways; Caltrans is expediting projects with the expectation of SB 1 funds coming in November," said Caltrans Director Malcolm Dougherty. "We are lining up projects that are going to deliver real results for all users of the state transportation system."

This latest approval of 90 major "fix-it-first" transportation projects, worth nearly $3.4 billion, are part of a list Caltrans submitted to the California Transportation Commission that was voted on at the Commission's October meeting.

Improvements to be made by these projects include improving or replacing 66 bridges; rehabilitating nearly 1,200 lane miles of pavements of highways across the state; repairing more than 300 culverts and drainage systems; and installing nearly 2,400 elements that are part of traffic management systems that help manage traffic and reduce congestion.

Among the projects in District 2 receiving funding, allocated is a $26.4 million pavement preservation project that will improve 6.4 lane miles, update signage and lighting, and add intelligent Transportation System elements on Interstate 5 from I-5/Highway 273 separation in the city of Anderson to the Sacramento River Bridge.

In Siskiyou County, a $135.8 million pavement preservation project will improve 25.4 lane miles on Interstate 5 from the Sacramento River Bridge in the city of Dunsmuir to Black Butte Overhead in Siskiyou County.

In Siskiyou/Shasta County, a $39.2 million bridge project will revamp and improve the vertical clearance for trucks to improve freight movements on Interstate 5 at the Louie Road Overcrossing in Yreka, Moonlit Oak Avenue Undercrossing, Miner Street Undercrossing and North Yreka Separation in Siskiyou County, and the State Route 273/I-5 Connector Overcrossing in the City of Redding in Shasta County.

In Trinity County, a $10.7 million bridge project will improve the Dobbins Gulch Bridge, Stuart Fork Bridge, and Mule Creek Bridge on State Route 3, and the Grass Valley Bridge on Highway 299 in Trinity County.

Border wall prototypes take shape at San Diego construction site





SAN DIEGO— The last two of eight prototypes for President Donald Trump's proposed border wall took shape Thursday at a construction site in San Diego.

The prototypes form a tightly packed row of imposing concrete and metal panels, including one with sharp metal edges on top. Another has a surface resembling an expensive brick driveway.

Companies have until Oct. 26 to finish the models but Border Patrol spokesman Theron Francisco said the last two came into profile, with crews installing a corrugated metal surface on the eighth model on a dirt lot just a few steps from homes in Tijuana, Mexico.

As the crews worked, three men and two women from Nepal, ages 19 to 30, jumped a short rusted fence from Tijuana into the construction site and were immediately stopped by agents on horseback.

Francisco said there have been four or five other illegal crossing attempts at the site since work began Sept. 26.

The models, which cost the government up to $500,000 each, were spaced 30 feet (9.1 meters) apart. Slopes, thickness and curves vary. One has two shades of blue with white trim. The others are gray, tan or brown — in sync with the desert.

Bidding guidelines call for the prototypes to stand between 18 and 30 feet (5.5 and 9.1 meters) high and be able to withstand at least an hour of punishment from a sledgehammer, pickaxe, torch, chisel or battery-operated tools.

Features also should prevent the use of climbing aids such as grappling hooks, and the segments must be "aesthetically pleasing" when viewed from the U.S. side.

The administration hasn't said how many winners it will pick or whether Trump will weigh in himself.

There is currently 654 miles (1,052 kilometers) of single-layer fence on the 1,954-mile (3,143-kilometer) border, plus 51 miles (82 kilometers) of double- and triple-layer fence.

"I'm sure they will engage in a lot of tests against these structures to see how they function with different challenges," U.S. Rep. Bob Goodlatte, a Virginia Republican who chairs the House Judiciary Committee, said Tuesday after touring the construction site.

Trump has asked Congress for $1.6 billion to replace 14 miles of wall (22.4 kilometers) in San Diego and build 60 miles (96 kilometers) in Texas' Rio Grande Valley, the busiest corridor for illegal crossings.

Here's a rundown of companies building prototypes, their headquarters and value of their contract. Two are making one concrete prototype and another using other materials.

CADELL CONSTRUCTION CO., Montgomery, Alabama. ($344,000 for concrete wall, $320,000 for other wall)

Its tan concrete wall is thick at the bottom and narrows considerably toward the pointed top. The other, also tan, has metal poles on the bottom, a metal plate in the middle, and concrete block on top.

The general construction company founded in 1983 says its projects include U.S. embassies in Beijing and Kabul, Afghanistan, terminals at Houston's George Bush International Airport and renovations to the Denver Mint.

W.G. YATES & SONS CONSTRUCTION CO., Philadelphia, Mississippi. ($453,548 for concrete wall, $458,103 for other wall)

Its models are a darker brown than other prototypes and topped by round beams. Its concrete panel has a plain face; its metal one has a corrugated surface.

The 53-year-old company has worked in a wide range of projects, including a Toyota plant in Blue Springs, Mississippi, a county jail in Olmito, Texas, a marine terminal in Jacksonville, Florida, and a power plant near Panama City, Florida.

___

Two companies are building concrete walls.

FISHER SAND & GRAVEL CO., Tempe, Arizona. ($365,000 contract)

It's the only prototype to be built entirely on site — as opposed to being hauled in. Its tan surface gradually narrows toward the top, like a long triangle.

Part of conglomerate Fisher Industries, the company produces sand, gravel and other products for roads, dams and large public works projects. The company is active is 12 western states.

TEXAS STERLING CONSTRUCTION CO., Houston. ($470,000 contract)

The gray surface of the U.S. side is stamped with patterns of different-sized bricks, like a driveway or sidewalk at an upscale home. There is a steel plate on top with prongs that feature at three metal spikes, resembling an agave plant.

Parent company Sterling Construction Co., founded in 1991, specializes in water and transportation projects, including highways, bridges, ports, light rail, wastewater and storm drainage systems. It is active in Utah, Texas, Nevada, Colorado, Arizona, California and Hawaii.

___

Two companies were selected to build walls made of materials other than concrete.

KWR CONSTRUCTION INC., Sierra Vista, Arizona. ($486,411 contract)

Its gray metal columns are topped with a large metal plate. The small, Hispanic-owned company counts the Homeland Security, Defense and Interior departments among its largest customers.

ELTA NORTH AMERICA INC., Annapolis Junction, Maryland. ($406,319 contract)

Its solid metal wall features six light blue squares with white trim on the bottom third, topped by dark blue beams and metal plates.

ELTA is a large Israeli defense contractor owned by state-run Israel Aerospace Industries. The company, which makes radar and other gear, opened its new U.S. headquarters in Maryland in May.


https://www.cbsnews.com/news/border-wall-prototypes-take-shape-at-san-diego-construction-site/

Tuesday, October 24, 2017

South Koreans' support for nuclear projects deals blow to government energy plan

SEOUL (Reuters) - South Korean public support for nuclear power on Friday sucker punched a government policy to steer the country away from nuclear-generated electricity as Seoul said it would bow to a demand to resume construction of two new reactors.

President Moon Jae-in came to power in May, after running on a ticket that called for reducing South Korea’s nuclear and coal-fired power generation in a push to use more natural gas and renewables.

Those plans were dealt an unlooked-for blow on Friday when a public opinion survey found a majority of almost 60 percent in favour of resuming the stalled construction of two reactors.

Building the two reactors could mean reversal of a strategy to slowly reduce nuclear energy’s share of the power mix, and also significantly eat into the liquefied natural gas (LNG) demand of the world’s second-largest consumer of the fuel.

“Our recommendation to the government is restarting construction,” said Kim Ji-hyung, chairman of a government-organised committee to study the nuclear projects.

“Our final public opinion survey showed 59.5 percent of (responding) South Koreans chose to resume the construction,” Kim told a news conference.

Stability of power supply was cited as a primary reason for the choice in survey responses, the committee said.

“We respect the will of the committee,” said South Korea’s presidential office spokesman Park Soo-hyun.

An expert at a government think tank said the size of the win in favour of the projects meant the government had no choice but to go with the committee’s recommendation.

“The outcome was very unexpected ... Many expected the difference would be a maximum 10 percentage points, but as it turned out, it stood nearly at 20,” said Roh Dong-seok, senior

research fellow at the Korea Energy Economics Institute.

The two 1,400-megawatt (MW) reactors - Shin Kori No.5 and Shin Kori No.6 - were originally to be completed by March 2021 and March 2022, respectively, in the southeastern city of Ulsan.

The government announced a suspension of the projects after coming to power, saying it would consult the public over their future.

The committee conducted four rounds of surveys, including phone interviews of 20,006 people and public discussions involving some 470 citizens, over the past three months.

With the reactors now likely going ahead, completion dates are set for October 2021 and October 2022, according to state-run nuclear operator Korea Hydro & Nuclear Power [KRHYDR.UL].

(For a graphic on 'South Korea 2016 power generation mix' click reut.rs/2xTOZKB)
BOOST FOR KEPCO, BLOW TO GAS

Shares of Korea Electric Power Corp rose 0.6 percent to 41,110 won ($36.32) on Friday, after jumping nearly 6 percent following the announcement of the survey results.

KEPCO Engineering & Construction, in charge of the reactors’ design, lost 1.2 percent after surging as much as 20 percent. KEPCO Plant Service & Engineering gained 1.7 percent.

Building nuclear power plants takes years, so the decision in favour of the two new reactors will not change South Korea’s immediate fuel demand patterns.

But the vote, which surprised many in the industry, does impact the long-term outlook for the country’s fuel consumption, with the biggest impact likely falling on imports of LNG.

“Full implementation of Moon’s election promises could have resulted in around 10 million tonnes (a year) of extra LNG demand by 2030. This now seems unlikely,” said Kiah Wei Giam, principal analyst at energy consultancy Wood Mackenzie.

That compares to South Korea’s LNG imports of 33.4 million tonnes last year, according to customs data. [LNG/KRTRD]

Giam said, however, the survey did not totally derail the government’s energy policies.

“With the planned nuclear phase-out delayed, it will be interesting to see whether more aggressive anti-coal policies are enacted,” Giam said.

Park Won-joo, Deputy Minister for Energy & Resources, said later at a briefing the government will reach a final decision on the nuclear reactors next Tuesday and then tell the state-run nuclear operator when to resume project construction.


https://www.reuters.com/article/us-southkorea-nuclear/south-koreans-support-for-nuclear-projects-deals-blow-to-government-energy-plan-idUSKBN1CP06F

Monday, October 23, 2017

UK Oil And Gas Costs To Rise 100% If Brexit Fails


The UK’s embattled oil industry might have to tackle a twofold increase in trade costs if its separation from the European Union takes place under a no-deal scenario, an industry group has warned.

The warning comes just as the region’s oil and gas companies start to boost investments in the UK’s continental shelf, thanks to generous government incentives.

The UK government is attempting to negotiate a trade deal with the European Union, but optimism is fading as talks struggle to get off the ground. As Bloomberg noted earlier this week, after the end of yet another round of disappointing discussions, no government in Europe is willing to make concessions to London, as they have enough to deal with at home with populism on the rise and public opinion unlikely to hail any concessions to the British separatists.


EU leaders chose to begin trade deal negotiations with London in December, despite the latter’s insistence the talks begin this week. If the talks end unfavorably for the UK, Oil & Gas U.K. warned this week, the investment rush currently underway in the UK’s section of the North Sea would slow down to a trickle as the cost of labor and equipment jumps. This, the group said, will inevitably happen if the UK reverts to World Trade Organization rules in the absence of a trade agreement with the EU.

Earlier this year, Oil & Gas U.K. conducted a study of the potential effects of an unfavorable Brexit scenario on the oil and gas industry and found that it could see its cost of trade swell from the current $791 million (600 million pounds) to $1.45 billion (1.1 billion pounds). This is the cost on $97 billion (73 billion pounds) worth of annual trade in goods and services related to the oil industry.

For Oil & Gas U.K., this would be the worst-case scenario. While, theoretically, costs equaling one-tenth of turnover isn’t insurmountable for an industry, UK oil and gas is working in one of the highest-cost oil basins in the world. Operators there also face hundreds of millions in decommissioning costs and field depletion.

On the other hand, a recent Wood Mackenzie report found that the UK North Sea section has become the second hottest spot for deal making, after U.S. shale. Some oil majors have reduced their presence there, selling assets to independents who are eager to make the most of what oil remains in the North Sea, which isn’t an insubstantial amount. Others, namely French Total, have expanded their footprint through acquisitions.

There’s an ongoing cost-cutting drive among North Sea operators and it’s already paying off. In its Economic Report 2017, the UK’s Oil & Gas Authority said that operation costs per unit in the North Sea have fallen the most across all oil basins in the world. While this doesn’t mean that North Sea field operators can pump crude at Aramco’s production costs, it’s attractive enough to motivate further investment.

BP, for instance, has cut its production costs from $30 a barrel to about $15, and plans to further reduce this to less than $12 by 2020. Shell and other producers have managed to cut costs by as much as 60 percent.

So, there could be a silver lining in the threat of trade costs doubling for UK’s oil and gas players. It would motivate finding new ways to reduce costs and likely lead to faster adoption of the digital oilfield—it’s been hailed as a great cost-saver, after all.

By Irina Slav for Oilprice.com

Sunday, October 22, 2017

GOVERNOR SIGNS ENVIRONMENTAL PROTECTION BILL FROM OIL & GAS PRODUCTION

Governor Brown has signed Assembly Bills 1328 and 1197, authored by Assemblymember Monique Limón (D-Santa Barbara) to make the oil and gas production more responsive to the needs and goals of the state. AB 1328 gives California water agencies access to information on potentially hazardous chemicals used in oil and gas operations. AB 1197 will ensure their spill management teams are adequately trained and prepared in the event of an oil spill.

“After years of numerous legislative attempts with no success, I am grateful that California will now have AB 1328 and AB 1197 that increase environmental and water quality protections. AB 1328 and 1197 protect the health of our communities and environment by giving our regulatory bodies the information and tools they need,” said Limón. “By addressing the gaps in our environmental regulations, California is leading the way in safeguarding our water quality and public health.”

For decades, legislators in California have been working to obtain information on the chemicals present in wastewater from oil and gas production. Oil and gas companies are currently required to report the chemicals used for hydraulic fracturing, or “fracking,” but do not have to report chemicals used for other oil and gas operations. These other operations account for the majority of all oil and gas production in California. The information obtained through AB 1328 will help the water boards set appropriate requirements to ensure that potentially hazardous chemicals do not pose a risk of contaminating water supplies.

“While California already has strict environmental regulations for oil and gas production, we are taking additional steps to make it even safer,” said California Secretary for Environmental Protection Matthew Rodriquez. “By addressing a gap in our ability to obtain information about chemicals in oil and gas wastewater, this bill will enable the water boards to better protect water quality and public health.”

AB 1197 will establish a program within The Office of Spill Prevention and Response (OSPR) to measure spill response capabilities and performance criteria for Spill Management Teams, which a potential responsible party may hire to manage an oil spill. While oil spill prevention and response has improved over the years, oil spills continue to occur in California and across the country, including the 2015 Refugio beach spill and 2016 Crimson pipeline spill in Ventura County.

OSPR has documented through numerous drills that some Spill Management Teams fail to adequately perform, endangering response employees and surrounding environment and communities.

“EDC supports AB 1197 because this measure will ensure that oil spill management teams have the qualifications necessary to effectively participate in oil spill response. We saw during the 2015 Refugio Oil Spill how important it is to make sure that all responders are adequately trained and experienced to ensure protection of the environment as well as worker safety. AB 1197 will address this need by authorizing the State Office of Spill Prevention and Response (OSPR) to establish a spill management team certification program. We applaud Assemblymember Limón for passing this important legislation,” said Environmental Defense Center Chief Counsel Linda Krop.

AB 1197 was signed on October 9, 2017, and AB 1328 was signed on October 13, 2017. Both bills will become law on January 1, 2018.

Saturday, October 21, 2017

MEASURE EXPANDS CONSTRUCTION DRONE SOLUTIONS


Measure now offers drone-powered solutions designed to optimize site development, project monitoring/documentation, and stockpile/earthwork measurement.

The new solutions provide enhanced visibility into site conditions, construction progress and material availability and enable site owners, architects, civil engineers, builders and inspectors to take advantage of drone technology without the time and expense of building in-house drone programs.

The new Measure packages include:

• Pre-construction surveys provide rich aerial imagery for all stakeholders in the procure-design-build lifecycle to evaluate sites and plan for construction logistical operations using current site conditions. The surveys are useful in a range of applications, from due diligence for site selection to pre-bidding site analysis, design presentations with site image and 3D overlays, stormwater runoff planning and more.

• Project documentation provide weekly or monthly remote monitoring of building status on active construction sites as well as a historical record of project progress. The project documentation solution shows updates, identifies disparities between blueprints and actual work, assists insafety and logistics planning using current conditions, does data collection for permit reviews, legal documentation, and other needs with high-resolution aerial photos and precision measurements. It also enables timely BIM software integration.

• Volumetrics provides drone-based stockpile and earthwork measurements that are faster, safer and more cost-effective than manned surveys. Recurring volumetric analysis makes it possible to compare proposed grading plans with true topographic conditions as well as evaluate granular change comparisons over time. The volumetrics solution also provides cut and fill analysis and material usage insights for production planning.

Source: Measure

Friday, October 20, 2017

Is Hyperloop Transportation Technology Feasible or Insurable?


Hyperloop Transportation Technologies wants to build a tube-based inter and intra-city transportation system to transport passengers and cargo at high speeds. As part of its efforts to gain support, it sought to assure people that its technology is feasible.

The firm recently collaborated with Munich Re on a risk analysis of Hyperloop’s proposed futuristic transport system.

The good news for Hyperloop is the experts at Munich Re believe the technology is both feasible and insurable.

This is how Hyperloop works: a travel capsule moves through a tube with nearly zero friction and safely up to airplane speeds. The capsule is propelled by a drastic reduction of air in the tube along with magnetic levitation and propulsion. The system is all powered by a combination of alternative energy and energy conservation systems that its designer day will produce as much or more energy than it uses.

Global insurer Munich Re conducted a comprehensive risk analysis of the Hyperloop technology and created the first Hyperloop Transportation Technologies Risk Report. Over the past year, a project team within Munich Re’s Special Enterprise Risks Unit weighed the risks and challenges facing HTT’s Hyperloop technology. They developed risk landscapes to shed light on enterprise and technological risk and to document relevant external and internal influencing variables.

Munich Re concluded that the Hyperloop technology is both feasible and insurable in the medium term and that delivering the system demands a model represented by HTT’s innovative approach.

The risk report forms the foundation for active strategic risk management and, according to company officials, having risk management integrated into its planning will allow HTT to move ahead to other challenges such as the legal framework for its transportation infrastructure and to commence actual construction.

“Offering an insurable system is a massive milestone for this groundbreaking technology,” Dirk Ahlborn, CEO and co-founder of HTT, said. “As we move forward with commercialization of the system and our technology, our biggest challenge remains the creation of a new regulatory framework.”

“With one of the world’s leading insurance companies as a partner, we are able to integrate a risk management framework into our planning process,” Bibop Gresta, chairman and co-founder of HTT said. “Now with further validation that our technologies and system are feasible and insurable, we are ready to build.”

The analysis also positions Munich Re to develop new insurance products to meet the needs of Hyperloop.

“The technology developed by HTT is set to fundamentally change the way we travel in the future. Such technological shifts give rise to new insurance needs that demand innovative solutions,” which Munich Re is happy to develop, said Torsten Jeworrek, member of the Munich Re board of management.

The Munich Re findings may also help sway public opinion as to the safety of Hyperloop, although recent research by travel and specialty insurer Allianz Global Assistance USA suggests the public is more comfortable with the idea of super-fast trains like Hyperloop than with autonomous cars. Self-driving or autonomous vehicles rate lowest for travelers “very interested” and highest for “safety concerns” among those not interested when compared to other future travel methods surveyed, including space travel, supersonic travel, Hyperloop high-speed rail, and even flying cars.

Founded in 2013, HTT is a global team comprised of more than 800 engineers, creatives and technologists in 52 multidisciplinary teams, with 40 corporate and university partners. Headquartered in Los Angeles, HTT has offices in Abu Dhabi and Dubai, UAE; Bratislava, Slovakia; Toulouse, France; and Barcelona, Spain. HTT has signed agreements in California, Slovakia, Abu Dhabi, the Czech Republic, France, Indonesia and Korea.

Hyperloop has been promoted by entrepreneur Elon Musk, who founded Tesla Motors, helped start PayPal, and is also co-founder and CEO of Space X.

http://www.insurancejournal.com/news/national/2017/10/18/467883.htm

Thursday, October 19, 2017

Emerson Electric - Adding To Oil & Gas With Paradigm

Summary


  • Emerson Electric has announced two bolt-on deals into the oil & gas sector.
  • Acquisitions might be welcomed after Emerson has been shedding many assets in recent years.
  • Growth is uninspiring, as I am not impressed with the portfolio transformation, which makes me cautious at current levels as a lot of margin expansion is already priced in.


Emerson Electric (EMR) is boosting its expertise into the oil & gas sector again. About a week ago, the company announced the purchase of GeoFields, a supplier of software and services for pipeline integrity data collection at undisclosed terms. This deal is now followed by the purchase of Paradigm for half a billion dollars.

These deals add some growth again, after Emerson has been shedding some non-core assets at cheap multiples last summer. While investors in Emerson are waiting for growth, management still has to impress me with its ¨buying high, selling low¨ practices.

Paradigm Marks A New Paradigm?

Emerson announced that it has laid out $510 million to acquire Paradigm, a supplier of software solutions to the oil & gas sector. Combined with Emerson's existing Roxar software business, Emerson helps producers to increase efficiency and cut costs. Paradigm is headquartered in Houston of course, and adds over 500 people to Emerson's payroll.

Few financial details have been announced other than that a 13 times EBITDA multiple has been paid, suggesting an anticipated EBITDA contribution of $39 million per year. In that light, the contribution to all of Emerson is very modest, equivalent to roughly one percent of total EBITDA.

This technology is much in demand as it allows maximised production of existing fields and reservoirs, as reducing break-even points in this marginal production ¨era¨ is very important. In fact, many producers with a smaller production base, but lower break-even costs, trade at huge premiums compared to larger producers with higher break-even rates. This ¨discrepancy¨ is driven by the market's view that upside in oil prices is somewhat limited for some time to come.

Wednesday, October 18, 2017

Trump finalizing opioid testing rule for transportation workers




 The Trump administration is finalizing a proposal to require opioid testing for certain transportation workers.
 
The rule would affect railroad engineers, pilots, air traffic controllers, truck drivers and other employees who are subject to federal drug and alcohol testing regulations.

Transportation Secretary Elaine Chao said in a letter to Rep. Peter DeFazio (D-Ore.) this week that the proposed rule is “undergoing final review.” The agency has also ordered a study on substance abuse in the transportation sector, she added.

“Safety is the Department of Transportation’s top priority, and we are committed to working with Congress and other federal departments to combat opioid abuse,” Chao wrote.

The letter comes in response to complaints from House Democrats, who raised concerns earlier this week that the administration had stalled the rulemaking process.

Currently, the Department of Transportation only administers a five-panel drug test, which includes marijuana, cocaine and PCP, for safety-sensitive transportation workers.

But the the agency's decades-old drug testing does not include prescription painkillers and opioid misuse, which has skyrocketed in the country in recent years.

“We are in the midst of a prescription opioid crisis in America,” Democrats on the House Transportation and Infrastructure Committee wrote in a letter to Chao on Tuesday. “In 2016 alone, it is estimated that 11.8 million Americans engaged in opioid misuse.”

“Transportation workers are not immune to this crisis,” the lawmakers said.

Two maintenance workers who were struck and killed by an Amtrak train last year while working on the track tested positive for cocaine and oxycodone.

To combat the growing opioid crisis, the Department of Health and Human Services updated its mandatory guidelines in January for Federal Workplace Drug Testing Programs and allowed the Transportation Department to add four prescription opioids to its drug-test panel: hydrocodone, hydromorphone, oxymorphone and oxycodone.

The Transportation Department then issued a notice of proposed rulemaking signaling that it would adopt the Health and Human Services guidelines on opioids. Comments on the proposal were due six months ago.
 
 

Tuesday, October 17, 2017

Osinbajo to Deliver Keynote Address at Oil & Gas Roundtable


Efforts at creating a more conducive environment for Nigeria’s oil and gas sector will receive fresh impetus tomorrow as Vice President Yemi Osinbajo will lead an array dignitaries among whom are, Speaker of the House of Representatives, the Hon. Yakubu Dogara, industry experts and other dignitaries to a brainstorming session in Asaba, the Delta State capital.

Professor Osinbajo is expected to deliver the keynote address at the event billed to take place at the prestigious Grand Hotel while Minister of Petroleum, State, Dr. Ibe Kachikwu, will present a paper.

The forum is a one-day event with the theme: ‘Peace and Sustainable Development in Nigeria’s Oil and Gas Areas,’ organised by the leading advocacy group, Nigeria Entrepreneur (Summit and Honours) NESH, for short.

NESH founder, Emeka Ugwu-oju had stated that the event had become necessary to create a road map for optimising the benefits of Nigeria’s hydrocarbon resources against the background of not only declining crude prices but the decision by most European countries to migrate from fossil fuels for automobiles to other alternatives.

He noted that this cannot be achieved without peace in the Niger Delta, a factor necessary for driving down costs and building stakeholder confidence in the environment.

He said: “It is in that regard that Nigeria and Entrepreneurship: Summit & Honors (NESH) team, has made the main theme of this event to be “Peace and Sustainable Development of Nigeria Oil and Gas Producing areas” and packaged a special session to bring together key and impactful stakeholders to discuss and device a new template for rapid development of the oil and gas producing areas that will reinforce and complement existing institutions and roadmaps, through a more robust private and public sector partnership.

“Another session at the roundtable will also have experts discussing the subject of Mini/Modular refineries which is a key item on the 16 point demand presented to the federal government by the Pan Niger Delta Forum as necessary condition for sustainable peace in the oil and gas producing areas,” he said.

Top oil industry players, finance experts, investors and notable advocacy groups have all confirmed their participation at the event to be hosted by the Delta State Governor, Dr. Ifeanyi Okowa.

The choice of the Delta State capital is seen as a masterstroke aimed at showing key stakeholder groups in the Niger Delta sub-region that the development of the region will remain on the front-burner until it is settled. Areas of emphasis include infrastructure, industrialization, local content management, capacity building and funding of small and medium scale enterprises in the region.

As part of the event, NESH has incorporated in the program interviews with high net worth Nigerians, to provide a broader knowledge pool for result-oriented stakeholder engagement in the area.

The event will be rounded off with a dinner at which ‘thank you” plaques will be presented to 10 private and public sector individuals for their roles in bringing about the relative peace prevailing in the region.

Monday, October 16, 2017

How Washington can boost skilled trades in construction


Americans are eager to rebuild our infrastructure — the nation's schools, highways, bridges, dams, and transit systems that have been suffering from decades of neglect. But before any golden shovel photo-ops can take place, we must first invest and build our workforce to meet today's construction demands.

October is Careers in Construction Month, a time to celebrate the people who build our nation and reach out to the construction workers of the future.


Today, the construction industry employs about 7.5 million workers, and we have an estimated 500,000 jobs open this year. If we add a $1 trillion infrastructure bill into the equation, we could create an additional one million jobs. The demand for construction workers is high, and firms are anxiously looking to hire tomorrow's electricians, carpenters, welders, plumbers, HVAC specialists, and more.

Associated Builders and Contractors and its 70 chapters are doing their part to train construction professionals using innovative and flexible apprenticeship models like just-in-time task training, competency-based progression, work-based learning, and government-registered training to build a safe, skilled, and productive workforce.

But Washington can also help. President Trump and policymakers can help bridge the skills gap and shape the workforce of tomorrow in three ways.

First, they can recognize all apprenticeship models. The U.S. Department of Labor sets the regulations for registered apprenticeship programs, which define the standards and definitions of required competencies and skills. Government-defined apprenticeship programs play an important role in training, but this is only one training solution in the construction professional training ecosystem the industry deploys.

President Trump took a great first step when he signed an executive order expanding current apprenticeship models by inviting trade associations, companies, unions, and other stakeholders to the table to design the kinds of programs businesses need. Recognizing these high-quality, industry-recognized, competency-based apprenticeship programs will go a long way to bridge the skills gap and train the construction workforce we need today—and tomorrow to build our nations infrastructure.

Second, Washington can expand tuition assistance to those learning skilled trades. Skilled trades are a viable alternative to college for young students. Student aid could be expanded beyond the traditional four-year college model to give Americans better access to apprenticeship training programs that lead to industry recognized credentials and competencies which lead to a career as a construction professional.

Allowing tuition assistance programs like 529 plans to be used for industry-recognized apprenticeship training would help students who decide college is not for them to invest in acquiring skills and competencies through apprenticeship training and thus pursue a career in construction. Young students could look forward to a promising career path rather than dreading mounds of college debt.

Third, President Trump can increase opportunities for the construction workforce and ensure his infrastructure plan gets built by enhancing the conditions for competition and welcoming all construction companies to compete based on merit. We all know that competition promotes innovation and therefore benefits projects by delivering them faster, safer, at higher quality and ultimately at a lower cost. This is how you create value for the taxpayer.

President Trump should issue an Executive Order which welcomes every construction company and worker to build America. The Trump administration can first rescind an executive order issued in the Obama administration that gives the government the option of excluding 86 percent of the 7.5 million construction employee construction industry from building America.

With such tremendous demand in the marketplace, there has never been greater opportunity for those seeking a rewarding path in a skilled trade, where one can enter the workforce right away as an apprentice, get paid to learn career skills on the job, and even work their way up to owning their own business. A 2015 survey found construction professionals are the happiest employees in the workforce. Opportunity knocks for women, minorities, veterans, students, non-graduates, and people seeking new careers, reentry to the workforce, or a second chance for a well-paying career, not just another job that can be offshored.

Together, we can help build a safe, skilled, productive workforce that can become the time-tested foundation we need to build America.

Sunday, October 15, 2017

Vine Oil & Gas LP Launches $530 Million Private Debt Offering

Vine Oil & Gas LP and Vine’s wholly owned subsidiary, Vine Oil & Gas Finance Corp. has commenced a private offering of $530 million in aggregate principal amount of senior unsecured notes due 2023, the company said on Oct. 10.

Vine intends to use a portion of the net proceeds of the notes offering to repay in full its existing third lien term loan, and the remainder of the net proceeds will be used to pay down borrowings under its second lien term loan and revolving credit facility.

Vine plans to offer and sell the securities only to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in transactions outside the U.S. pursuant to Regulation S under the Securities Act.

Saturday, October 14, 2017

Woman steals construction truck, police say


A woman stole a construction truck in Redding on Tuesday evening and was later arrested after she ditched the truck shortly afterward, according to the Redding Police Department.

Police say that Alice Kelsey, 46, of Redding, hopped into a running construction truck a at construction site at Placer Street and Buenaventura in west Redding around 9:50 p.m. Tuesday. An employee of Axner Construction tried to get her out of the truck, but she drove off. The worker fell from the truck and suffered minor injuries.

Police officers found the truck abandoned just west of Redding city limits. A K-9 helped track the suspect in a nearby field, about the same time a resident reported a female prowler, according to the Redding Police Department.

Kelsey didn't go peacefully, police say. She kicked one of the officers several times, but was eventually taken to Shasta County Jail on charges of carjacking, assault on an officer and resisting arrest.

She was not listed as being in custody at the jail as of Wednesday morning.

Friday, October 13, 2017

Carrizo Divests Marcellus; Kalnin Strengthens In Play’s ‘Super Core’


Carrizo Oil & Gas Inc. (NASDAQ: CRZO) inched toward the halfway mark of its $300 million divestiture goal on Oct. 5 with an agreement to sell Marcellus Shale assets to help pay for an August Delaware Basin transaction.

The buyer, Kalnin Ventures LLC, said it purchased Carrizo’s assets, as well as those of a Reliance Industries Ltd. subsidiary, in separate deals totaling $210 million. With the deals, Kalnin is poised to become a major northeast gas producer.

Carrizo operates all of the assets and has been in a joint venture with Reliance Marcellus II LLC for seven years, according to Reliance Industries—the largest private-sector company in India.

Houston’s Carrizo said its assets were sold for $84 million cash and with additional contingency payments of $7.5 million based on price thresholds for natural gas during the next three years.

Thursday, October 12, 2017

Australia's WorleyParsons to buy AFW's former oil & gas assets for $298 million

(Reuters) - Australian engineering firm WorleyParsons Ltd (WOR.AX) said on Monday it would buy the former upstream oil and gas assets of Britain’s Amec Foster Wheeler Plc AMFW.L for 228 million pounds ($298.22 million), marking its entry into the UK North Sea market.

WorleyParsons expects to tap Amec’s maintenance, modifications and operations capabilities through the deal, which is to be funded by a 1 for 10 entitlement offer of approximately A$322 million ($250.36 million) and existing WorleyParsons debt facilities at A$13 per new share.

The enterprise value will be A$303 million before adjustments for surplus working capital and cash in the AFW UK business, the statement said.

The deal is expected to reduce net debt and be accretive to WorleyParsons’ earnings per share in the first year of ownership, and is expected to be completed by the end of October.

The sale is an attempt by Amec to get regulatory approval for its merger with John Wood Group (WG.L).

Britain’s Competition and Markets Authority (CMA) said in August the merger could lead to competition concerns in the supply of engineering and construction services and operation and maintenance services on the UK continental shelf.

The CMA said later that month that divesting almost all of Amec’s upstream offshore oil and gas servicing assets may be adequate for regulatory approval for the merger.

https://www.reuters.com/article/us-honeywell-spinoff/honeywell-spins-off-units-worth-7-5-billion-in-sales-keeps-aerospace-idUSKBN1CF17L

Senator’s plan to raise taxes for transportation maintenance

JACKSON, Miss. (AP) — Mississippi residents could vote on a state lawmaker’s plan that would raise taxes and fees to pay for needed renovations to roads and bridges.

Mississippi Central District Transportation Commissioner Dick Hall on Monday announced the bill Republican state Sen. Dean Kirby of Pearl plans to introduce next year, The Clarion-Ledger reports .

Kirby’s plan is in draft phase and includes a statewide referendum, annual fees of $150 on electric cars and $75 on hybrid cars, and adding roughly 1.5 cents to Mississippi’s fuel tax of 18.4 cents a gallon. His plan would also place a $2.50 fee per car tire.


Kirby’s legislation would allow residents to say “yes” or “no” to his plan and view a list of projects the money would fund in each of Mississippi’s three transportation districts. A successful referendum in Georgia gave him the idea, Kirby said, as he believes there is no way lawmakers will pass a fuel tax increase.


Kirby has not yet run his plan by others in the Republican Senate leadership, he said, including Lt. Gov. Tate Reeves, who has been opposed to any tax increase for roads and bridges, or anything else.


Mississippi needs at least an additional $400 million each year in state funding for transportation maintenance, Hall said.\

Public comment period extended for Walan air quality regulations construction permit

The Delaware Department of Natural Resources and Environmental Control extended the public comment period on the company’s permit applicatio...