Police name man found dead at Dover Transportation Center

DOVER — Police in Dover released the name of the man found dead in his car on Friday at the Dover Transportation Center parking lot and said the death appears to be a suicide.

George Tilton, 23, was pronounced dead at the scene as a result of a gunshot wound, police said in a press release late Monday morning.

The Dover Police Department and the office of the chief medical examiner are investigating the unattended death, but police believe it was a suicide, based on the investigation to date, police said. A final determination on the cause and manner of Tilton’s death, which occurred on the morning of Nov. 24, will be made by the office of the chief medical examiner, police said.

At about 1:24 p.m. Friday, Nov. 24, the Dover Police and Dover Fire and Rescue responded to the Dover Transportation Center parking lot at 33 Chestnut St. in Dover for a report of an unconscious individual in a vehicle. Upon arrival, they located Tilton’s body slumped over in a gray Saab. He was pronounced dead at the scene as a result of a gunshot wound, police said.

Tilton, a Washington Street resident, was the owner of the Saab in which he was found. Passersby notified police after seeing Tilton slumped in the vehicle.

An obituary posted on the Brewitt Funeral Services & Crematory Inc. website stated Tilton “had bravely struggled with severe depression for many years and could no longer continue his fight.”

Tilton, born in Teaneck, New Jersey, lived much of his life in Exeter, the obituary stated. He attended the Cornerstone and Great Bay Charter school and was selected as the graduating senior to receive the Faith and Service Award from Holy Trinity Lutheran Church. Tilton received his associate’s degree from the Thompson School at the University of New Hampshire. He was pursuing a degree in social work before he died, the obituary stated. At UNH, Tilton was a student advocate with Active Minds, a group that works to remove the social stigma that surrounds mental issues on college campuses throughout the country.

His obituary also stated he worked at the homeless shelter Cross Roads House in Portsmouth. Cross Roads House Executive Director Martha Stone said in a statement, “George was a valued member of our Direct Care Staff at Cross Roads House and had worked here for eight months. In his role, he showed compassion and kindness to the residents at our shelter as he responded to their needs from our front desk. He also greeted volunteers, donors and service providers who came into the shelter with a huge smile on his face. We are all shocked and saddened at his passing and will miss him. Our hearts go out to his family and friends.”

A visitation and service for Tilton will be held beginning at 1 p.m. Saturday, Dec. 2 at the Holy Trinity Lutheran Church in Newington. Donations may be made in his name to the National Alliance on Mental Illness, Seacoast Chapter.

“His heartbroken family asks that you offer words of love and acceptance to anyone you know who suffers with mental illness,” the obituary concludes.

Tilton’s death is being investigated by the Dover Police Department’s Special Investigations Bureau. Anyone with information about this incident is asked to call the Dover Police Department at 742-4646. Anonymous tips may be called into the Dover Crimeline at 749-6000. The Dover Crimeline can also be contacted via www.dovernhcrimeline.org.

http://www.fosters.com/news/20171127/police-name-man-found-dead-at-dover-transportation-center

OPEC’s Clash with U.S. Oil Approaches Day of Reckoning

OPEC strategy has helped to deplete half of surplus stocks, but bolstering prices has emboldened American shale-oil drillers

The clash between OPEC and America’s oil industry is reaching a day of reckoning.

The U.S. shale revolution is on course to be the greatest oil and gas boom in history, turning a nation once at the mercy of foreign imports into a global player. That seismic shift shattered the dominance of Saudi Arabia and the OPEC cartel, forcing them into an alliance with long-time rival Russia to keep a grip on world markets.

So far, it’s worked — global oil stockpiles are draining and prices are near two-year highs. But as the Organization of Petroleum Exporting Countries and Russia prepare to meet in Vienna this week to extend production cuts, ministers have little idea how U.S. shale production will respond in 2018.

“The production cuts are effective — it was absolutely the right decision, and the fact of striking a deal with Russia was crucial,” said Paolo Scaroni, vice-chairman of NM Rothschild & Sons and former chief executive officer of Italian oil giant Eni SpA. Nonetheless, “OPEC has not the same power. The U.S. becoming the biggest producer of oil in the world is a dramatic change.”

High stakes for OPEC members

For OPEC members, the stakes couldn’t be higher. Saudi Arabia’s Crown Prince Mohammed Bin Salman is embarking on a radical economic transformation of the kingdom, including a partial sale of its state oil company that could be the largest public offering in history. Venezuela, reeling from years of recession and a crushing debt burden, is on the brink of political implosion.

Eroding the surplus

The producers’ efforts to clear the oil surplus are starting to pay off. They’ve drained excess inventories in developed nations this year by 183 million barrels, or more than half of the glut, which now stands at about 140 million barrels, according to OPEC data. That has revived London-traded crude futures, which sank below $45 a barrel this summer, to a two-year high of $64.65 on Nov. 7.

That success goes some way to countering accusations that OPEC had lapsed from the dominant market force of the 1970s and 1980s into irrelevance. Although its 14 members still pump 40 percent of the world’s oil, their share has dwindled from the days when OPEC held the global economy in thrall.

“People may have thought that OPEC was dead, but Saudi Minister Khalid Al-Falih has succeeded in building agreements and alliances within OPEC and non-OPEC, such as Russia, to restrain production,” said Luis Giusti, an adviser at the Center for Strategic and International Studies and former CEO of state-run Petroleos de Venezuela SA.

Losing momentum

There are even signs that OPEC’s opponents, the dozens of drillers tapping shale-oil deposits in Texas and North Dakota, are losing momentum. Companies may have already squeezed costs and maximized productivity as much as possible, and their investors are finally insisting profits are returned to them rather than re-invested in more drilling.

Mark Papa, CEO of Centennial Resource Development Inc. and considered one of the industry’s founders, said in September that shale “is not nearly the Big Bad Wolf that everybody thinks.”

A year-long ramp-up in drilling by American operators appeared to hit a plateau in July, data from Baker Hughes show, and companies such as Pioneer Natural Resources Co. have lowered their output targets.

The outlook for shale is so clouded that when OPEC officials invited industry experts to brief them on the topic last week, they were disturbed by the diversity of opinions. Veteran crude trader Andy Hall, whose decision to close his main hedge fund this year was partly driven by shale’s unpredictability, told the organization that 2018 growth estimates vary from 500,000 barrels a day to 1.7 million a day.

Yet, the basic paradox confronting OPEC is that the more it succeeds in bolstering prices, the more it emboldens shale explorers and other competitors, said Mike Wittner, head of oil market research at Societe Generale SA in New York.

Increases in U.S. oil production next year will be big enough to cancel much of the sacrifices made by OPEC and Russia, leaving the surplus more or less intact, forecasts from the International Energy Agency show. The recent rebound in prices could energize shale even further.

Instead of being able to declare victory next year and restore the production they’ve halted, OPEC may find itself trapped in an open-ended struggle, Wittner said.

Catch-22

“Now that they’re in it, I don’t see how they get out of it,” said Wittner. “They need to continue supply management for the foreseeable future.”

The need to cooperate indefinitely could strain the Saudi-Russia partnership.

While the Saudi-Russia alliance has allowed them to call a “truce in the battle for market share,” they may end up fighting over customers again when faced with a relentless tide of crude exports from the U.S., said Ed Morse, head of commodities research at Citigroup Inc. in New York.

With U.S. crude exports climbing from close to zero three years ago to now exceeding the combined shipments of OPEC’s smallest members, it increasingly looks as if the face-off between the cartel and what was formerly its biggest customer “has an endgame,” Morse said.

“And the endgame is there’s an awful lot of shale in the world.”

https://www.oilandgas360.com/opecs-clash-with-u-s-oil-approaches-day-of-reckoning/

Carrizo Oil & Gas Announces Partial Redemption of 7.50% Senior Notes Due 2020

HOUSTON--(BUSINESS WIRE)--Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) today announced that it has delivered a notice to the trustee for its 7.50% Senior Notes due 2020 (CUSIP No. 144577 AF0) under which it called for redemption on December 28, 2017 $150 million aggregate principal amount of the outstanding notes, representing 25% of the aggregate principal amount of this series of outstanding notes.

The notes will be redeemed at a redemption price of 101.875% of the principal amount thereof plus accrued and unpaid interest on the notes to be redeemed to the redemption date. The funds to be used for the redemption are expected to primarily be proceeds from Carrizo’s previously-announced divestiture program, including the sale of properties in the Marcellus Shale and Utica Shale.

David Pitts, Carrizo’s Vice President and CFO, commented on the announcement, “Consistent with our leverage reduction goals, we are using the divestiture proceeds we have received to date to retire a portion of our senior notes. We expect to receive additional cash proceeds in early 2018, and currently expect to allocate this to further debt reduction.”

Selection of the notes for redemption will be made by the trustee in accordance with the terms of the indenture governing such notes based on The Depository Trust Company’s method that most nearly approximates pro rata selection unless otherwise required by law; provided, that notes and portions of notes selected shall be in amounts of $2,000 or whole multiples of $1,000 in excess of $2,000, except that if all of the notes of a registered holder are to be redeemed, the entire outstanding amount of notes held by such registered holder, even if not a multiple of $1,000, shall be redeemed.

This news release shall not constitute a notice of redemption with respect to or an offer to purchase or sell (or the solicitation of an offer to purchase or sell) any securities.

Carrizo Oil & Gas, Inc. is a Houston-based energy company actively engaged in the exploration, development, and production of oil and gas from resource plays located in the United States. Our current operations are principally focused in proven, producing oil and gas plays primarily in the Eagle Ford Shale in South Texas and the Permian Basin in West Texas.

http://www.businesswire.com/news/home/20171128005484/en/Carrizo-Oil-Gas-Announces-Partial-Redemption-7.50

Eco Atlantic Oil & Gas welcomes endorsement for Cooper oil block in Nambia

Eco Atlantic Oil & Gas Ltd’s (LON:ECO) has received a further endorsement for its portfolio of oil assets after the overseas arm of India state-owned Oil and Natural Gas Corp (ONGC) said it would buy a 15% stake in the Cooper Block in Nambia.

ONGC Videsh Ltd (OVL), a division of ONGC, said its indirect subsidiary ONGC Videsh Vankorneft Pte Ltd (OVVL) has signed binding agreements with Tullow Namibia Ltd to acquire the 15% participating interest in the Namibia Petroleum Exploration License (PEL) 30 for an undisclosed sum.

"This is a further endorsement of Eco's strategy and the quality of the acreage that we have in our portfolio,” said Eco Atlantic president and chief executive Gil Holzman.

“This is ONGC Videsh's second foray into Namibia and we are delighted, on the satisfaction of the conditions precedent, that they have decided to enter the Copper Block.”

Holzman added that the deal has the potential to expedite the first exploration well on Cooper Block, as all the partners are now lined up and the financial burdens are spread.

Eco Atlantic is the operator of the block with a 32.5% holding.

Tullow Namibia, a wholly-owned subsidiary of Tullow Oil, holds a 10% working interest in the oil block. Other parties include Azimuth Namibia Ltd with a 32.5% stake and National Petroleum Corp of Namibia (Pty) Ltd, which owns 10%.

Eco Atlantic has also contracted Tullow's exploration team to oversee processing and conduct the initial interpretation for block partners.

All the partners agree there is a “highly justifiable lead” after evaluating data, and an exact drilling location is being defined.

"We look forward to working with them as we accelerate the work programme on this license and further define the exact drilling location,” said Holzman.

Eco has recently filed a NI51-101 compliant report by Gustavson Associates that reported 882 million barrels of oil resources on the block.

A 12-month extension to March 2019 for the first renewal period for all three blocks, including PEL 0030 Cooper, PEL 0033 Sharon and PEL 0034 Guy, was granted by the Ministry of Mines and Energy in October.

http://www.proactiveinvestors.co.uk/companies/news/187584/eco-atlantic-oil-gas-welcomes-endorsement-for-cooper-oil-block-in-nambia-187584.html

Construction crew unearths giant concrete swastika

BERLIN -- Construction workers in Germany have unearthed a giant concrete swastika on a sports field in the northern city of Hamburg.

The German news agency dpa reported Tuesday workers were digging in the ground with an excavator to build changing rooms when they suddenly hit the 13-by-13 foot Nazi symbol.

Members of the sports club at the Hein-Kling stadium in the city's Billstedt district told dpa the swastika served as a foundation for a monument that was torn down decades ago.

City officials say they want the swastika, which was buried 1.3 feet below the ground, gone as quickly as possible. Because it's too heavy to be transported away, they are planning to destroy it with jackhammers.

https://www.cbsnews.com/news/giant-nazi-swastika-unearthed-hamburg-germany-construction-crew/

This ride-hailing service will pick up your kids where school buses don't go

A Los Angeles start-up called HopSkipDrive wants to give parents the convenience of ride-hailing and comfort of a trusted sitter whenever they need to get their kids around town.

The company is one of a handful of transportation start-ups vying to become an "Uber for kids." Some, like Shuddl, have failed in this mission in the past and ultimately shut down.

One thing that's different about HopSkipDrive, according to CEO and co-founder Joanna McFarland, is that it's not trying to replace trusted school bus services, but to supplement them by picking up or dropping off kids when it isn't cost-effective to send a bus.

To that end, HopSkipDrive announced a partnership with Student Transportation on Tuesday, a public company that provides school bus services to different districts in the U.S. Student Transportation will encourage schools to use the HopSkipDrive app, in conjunction with its own scheduled pick-ups and drop-offs.

"We really think of ourselves as caregivers on wheels, and not just a ride-hailing app," McFarland told CNBC. Unlike Uber and Lyft, HopSkipDrive fingerprints prospective drivers and ensures they all have had at least 5 years of professional experience working with kids.

While Uber and Lyft don't legally allow minors to ride unaccompanied by a parent or guardian, HopSkipDrive is set up specifically for that use, from its insurance to the way its app communicates with passengers, parents and drivers.

The existence of HopSkipDrive, and competitors including Zum and Kango, is a sign of the times.

The share of students who can get to and from school relying on public school buses is in decline, according to research by the Urban Institute. Yet more parents are working, and not as available to do all the driving that they once were when a single income could pay the bills.

With its partnership, Student Transportation invested in a $7.4 million round for HopSkipDrive, alongside the company's earlier backers: FirstMark Capital, Upfront Ventures, and others.

https://www.cnbc.com/2017/11/21/student-transportation-invests-7-point-4-million-in-hopskipdrive.html

'Hyperloop-inspired' transportation heads to Denver

It may not be Hyperloop, but Denver residents may one day find themselves shuttled around Denver in tubes at speeds of up to 200 mph.

That is the promise of a partnership announced Tuesday between Arrivo, a Los Angeles-based transportation startup led by a former executive and co-founder of Hyperloop One, and the Colorado Department of Transportation. The partnership aims to create a series of enclosed superhighways that use magnetic levitation and electric power to whisk floating vehicles around the heart of the congested city.

Arrivo, Italian for "arrival," was co-founded earlier this year by Brogan BamBrogan, once the chief technology officer at Hyperloop One. BamBrogan resigned from Hyperloop in July 2016 and filed a lawsuit accusing company executives of defamation, breach of fiduciary duty and assault, in which a noose was placed around his chair.

The lawsuit was settled in November 2016 for an undisclosed amount, and now BamBrogan is focused on building a $15 million test center and test track in the Denver Metro area.

"Passengers and cargo arrive quickly and efficiently at extremely low cost," BamBrogan said in a statement that likened the system to the one being built by his former company. "Arrivo will end traffic and futureproof regional mobility."

But unlike Hyperloop, which promises to move passengers and cargo over long distances through vacuum-sealed tubes at speeds up to 700 mph, Arrivo will move people much shorter distances at a fraction of the speed. Still passengers can expect to get around Denver much quicker than possible today, making what is normally an hour-long rush hour trip between Denver and Boulder in just 8 minutes.

"We are reaching max roads in many cases in Colorado," Shailen Bhatt, executive director of the Colorado Department of Transportation, said in a statement. "Arrivo has a unique and practical approach to implementing hyperloop technology to eliminate traffic and dramatically improve the way people and goods move around the city."

Arrivo expects the test track to be completed by 2021.

https://www.cnet.com/news/hyperloop-inspired-transportation-heads-to-denver/

Nvoicepay Integrates Into Viewpoint’s Construction Software

The latest research in B2B payment practices within the construction sector isn’t good: Two-thirds of small- and medium-sized businesses (SMBs) surveyed by the U.K. Federation of Master Builders (FMB) said they aren’t paid within the typical 30-day invoice payment period, and it’s complicating cash flow management for industry players.

Just days after the FMB published its findings, invoice payment firm Nvoicepay announced a partnership with Viewpoint, a software firm targeting the construction space.

In an announcement made on Tuesday (Nov. 14), Nvoicepay and Viewpoint said they are working together to provide back-office automation for the construction sector, supporting the digital shift to electronic B2B payments and streamlining supplier management.

“We know how time-consuming and complex our customers’ accounts payable processes can be,” said Viewpoint Chairman and CEO Manolis Kotzabasakis in a statement. “Integrating with Nvoicepay will simplify the payment process to a single click. These innovations are how we continue to transform the construction industry with cutting-edge technology.”

Viewpoint will integrate Nvoicepay’s B2B invoice payments and supplier management capabilities into its own offering for construction company clients. The solution enables all accounting teams across the enterprise to pay suppliers electronically, the company said. The integration will be made available in the spring of next year.

“It’s exciting to have a partner that is as passionate as we are about transforming processes, companies and even entire industries through technology,” said Nvoicepay CEO and Founder Karla Friede in another statement. “Our solutions change the incredible effort that often goes into paying suppliers into a simple automated flow, and we immediately reduce accounts payable costs by 75 percent. The ROI along with the simplicity and efficiency of the process really speaks for itself.”

https://www.pymnts.com/news/b2b-payments/2017/viewpoint-nvoicepay-construction-accounts-payable/

Senate approves Trump Transportation Department nominee

WASHINGTON (Reuters) - The U.S. Senate voted Monday to approve a senior Transportation Department nominee and advance another nomination, after Republicans accused Democrats of blocking some nominees to push for funding of a New York area infrastructure project.

Derek Kan, who was previously an official at San Francisco-based ride services company Lyft Inc, won confirmation to be undersecretary of transportation for policy on a 90-7 vote.

Senate Republicans have said their Democratic rivals were stalling a number of nominees over a dispute over funding for the $24 billion “Gateway Program,” which includes building a new tunnel underneath New York’s Hudson River. At least eight other Transportation Department nominations are pending and other jobs vacant, including a top auto safety regulator.

In addition to confirming Kan, the Senate voted 50-47 on Monday to advance the nomination of Steven Bradbury, a Washington lawyer, to be general counsel at the Transportation Department.

During the administration of President George W. Bush, Bradbury was one of the principal authors of the legal justifications for “enhanced interrogation techniques” called the “torture memos” by critics. Senator Tammy Duckworth, an Illinois Democrat, said in June that Bradbury “lacked the judgment to stand up against (the Bush) administration’s use of torture.”

Bradbury defended his work in June, saying the “questions we addressed raised difficult issues about which reasonable people could disagree.”

In September, President Donald Trump met with top elected officials from New York and New Jersey over the fate of the Gateway Program deemed critical to northeast U.S. transportation, but Trump made no commitments to finance the project.

Republican Senator John Thune accused Democrats of holding nominations “hostage” while awaiting “assurances that the Trump administration will approve and fund” the Gateway project.

“While no one questions the importance of this corridor, there are many other important projects that also are awaiting approval and funding at the Department. No project should get to cut the line based on the machinations of a handful of our” colleagues, Thune said.

Senate Democratic Leader Chuck Schumer said on Monday he opposed Kan because of administration roadblocks to the project. “Time is running out and we must quickly build new tunnels,” Schumer said.

A Senate Democratic aide confirmed, separately, that Democrats were holding up some nominations “because they want assurances from the Transportation Department the Gateway Project will quickly move forward after it’s funded.”

The Transportation Department regulates the nation’s vehicles, airplanes, railroads, pipelines, ports and highways.

http://www.reuters.com/article/us-usa-trump-transportation/senate-approves-trump-transportation-department-nominee-idUSKBN1DD2QO

Uzbek-Russian conference to mull training of oil & gas industry personnel

Leading firms of oil and gas industry of Uzbekistan and Russia will take part in the international conference “Training and development of national personnel in international companies”, which will be held in Tashkent on November 14.

The conference was initiated by LLC LUKOIL Uzbekistan Operating Company, Uzbekneftegaz JSC and the Gubkin Russian State University of Oil and Gas.

The main topics of the conference, according to the organizers, will be the study of interaction of universities in the training and development of personnel, the definition of the role of corporate training centers in the training and development of personnel in companies.

The conference will be attended by leading firms of oil and gas industry, ministries and state organizations, big international companies, educational and training companies of Uzbekistan and Russia, as well as other foreign countries.

https://www.azernews.az/region/122082.html

UberAir May Only Worsen Dallas’ Transportation and Inequality Problems

Uber’s vision of a futuristic era of flying drones that ferry Dallasites over and above clogged streets is still a ways away. But last week, the ride sharing company took a few more steps towards realizing their transportation dream by announcing a new partnership with NASA to test a handful of air shuttle service pilot programs, including one program in Dallas. Uber first announced the partnership to build a Frisco “ventriport” with helicopter adventurer Ross Perot Jr.’s Hillwood Company back in April.

But should we buy the Silicon Valley-based company’s argument that adding air service will usher-in a better and brighter future? Or, just as the promise of automobile travel created an economy based on inefficient sprawl that we are still trying to legislate and build our way out of, will it only worsen existing problems with transportation inequality?

That’s the argument made in this article over on CityLab, which looks at how the ride-share air service might exacerbate existing issues with inequality and eroding public services. In a city like Los Angeles, which is well ahead of Dallas in terms of its efforts to reverse the negative impacts of automobile-driven sprawl, UberAir could undo that momentum:

Ride-hailing companies already seem to be undermining those goals; UberAir would do so even more explicitly. Setting aside the the many practical questions yet to be answered (the electro-choppers don’t quite exist yet, for one), the fundamental model here—a network of private, high-rise launchpads—does not a walkable city make. Nor an equitable one: Even if UberAir somehow overcomes the safety, technology, and regulatory challenges and delivers on super-low fares, consider that adoption of UberX has been highly uneven across income and education brackets. Poorer Americans aren’t riding Ubers and Lyfts like they’re riding transit. Meanwhile, bus routes are getting shortened and slashed. Ride-hailing, even when it’s shared, is creating a new class of transportation. UberCopters would give rise to an even loftier one.

We’ve been here before. At the 1939 World’s Fair in New York, the public was wowed by the Futurama exhibition, which depicted a magical vision of a new world in which all Americans whisked around in personal cars carried above neighborhoods and homes on new elevated concrete highways.

If we have learned anything from the era of the automobile, it is that the promise of technology is not, in and of itself, a social good. Just because capacities exist for changing the way we move around cities, that doesn’t mean that they should be embraced wholeheartedly before all of the potential impacts and implications are studied and weighed.

https://www.dmagazine.com/frontburner/2017/11/uberair-may-only-worsen-dallas-transportation-and-inequality-problems/

Brazil rejects Saudi Arabia’s overtures on oil output cuts

Brazil has rejected an informal effort by Saudi Arabia to coax Latin America’s top oil producer into joining OPEC-led production cuts aimed at boosting prices that have been hit by oversupply, a Brazilian official said on Tuesday.

Marcio Felix, Brazil’s oil and gas secretary, told Reuters he received a call last week from an adviser to Saudi Arabia’s Energy Minister Khalid al-Falih “sounding him out” about potential production cuts.

“They are worried about the growth of production in Brazil,” Felix said in a phone interview, explaining Saudi interest in Brazilian cuts. “We have explained already that Brazil cannot do this,” he said.

The call occurred days after oil majors like Royal Dutch Shell snapped up blocks in a historic opening of Brazil’s coveted offshore pre-salt oil play to foreign operators, part of its bid to aggressively boost output in the coming years.

Brazil, which produces 2.65 million barrels of crude per day (bpd), by law cannot control output. The South American country could double its oil production to more than 5 million barrels a day (bpd) by 2027, regulator ANP has said.

Felix, who attended an OPEC meeting last year, said Brazil has been approached by the world’s largest oil exporter on previous occasions to discuss the issue.

They “don’t give up easily,” he said.

The Organization of the Petroleum Exporting Countries, led by Saudi Arabia, has agreed to restrain crude output by 1.8 bpd together with 10 other nations including Russia until March 2018.

OPEC meets at the end of this month and has been widely expected to extend the deal.

Oil prices surged to their highest since July 2015 on Monday as Saudi Arabia’s crown prince cemented his power with a crackdown on corruption and tensions ratcheted up between the country and rival OPEC member Iran.

https://www.oilandgas360.com/brazil-rejects-saudi-arabias-overtures-oil-output-cuts/

Massive Transformation For Oil & Gas Industry With Accelerated Oil & Gas Programme

Minister of Energy, Boakye Agyarko, on behalf of President Nana Addo Dankwa Akufo-Addo, has officially launched the Accelerated Oil & Gas Capacity (AOGC) programme in response to the demand for highly skilled manpower in the industry.

The programme combines four different capacity-building initiatives in the areas of technical and vocational training, SME building, public institution development and educational sector management.

It will equip Ghanaians to find lasting solutions to challenges in the oil and gas industry of the country.

The overall goal of the programme is to ensure that Ghana's oil and gas industry does not only contribute to the growth of the economy but also serves as a major source of employment for Ghanaians.

Mr. Agyarko, addressing officials in the industry and the public at the Regional Maritime University, host of the programme, said the initiative signified government's commitment to ensuring that Ghanaians and Ghanaian companies take the fore front of the oil and gas industry.

He said the oil and gas industry plays a critical role in the economic development of the country as it serves as a major source of employment.

“Many of our people have not acquired the requisite technical expertise to meet the often very high standards set by the oil companies.”

Mr. Agyarko therefore noted that the AOGC programme would guarantee that local service providers and personnel were given the requisite skills and technical know-how from entrepreneurship to engineering to strengthen their effective participation in the oil and gas sector, as well as other allied industries.

“We are determined to expand opportunities in the industry and to use it as a catalyst for the rapid transformation of our country,” he said.

He further observed that it was the vision of government to see to the successful running of the oil and gas industry.

The sector minister noted that plans were far advanced under the programme to train 1,000 Ghanaians annually to gain various technical skills in oil and gas.

“Two hundred Small and Medium Scale Enterprises (SMEs) will be provided with the capacity to gain a competitive advantage in the industry and some 300 employees in public institutions also adequately prepared to support the development of the oil and gas policies and the enforcement of industry regulations,” he added.

Mr. Agyarko stated that government was ready to partner international oil and gas companies to take up more acreage in the country's offshore basins.

He, however, urged oil and gas companies holding oil blocks to show commitment by fulfilling their contractual obligations, noting that government reserves the right to take action if they fail to comply with the terms agreed upon.

Vice Chancellor of RMU, Professor Elvis Nyarko, expressed gratitude to government for supporting the programme, which will train hundreds of Ghanaians in the technical skill areas of oil and gas.

He also called for increased support in the areas of infrastructure development and protection of its lands, which are being encroached upon.

New Workshop
The sector minister, together with the RMU Vice Chancellor and Acting CEO of the Petroleum Commission, Egbert Faibille, commissioned the newly built welding, fabrication and mechanical workshop funded by the World Bank, IDA and government of Ghana.

https://www.modernghana.com/news/815257/massive-transformation-for-oil-gas-industry-with-accelerat.html

Striking protesters disrupt transportation in Catalonia

MADRID – Protesters have blocked roads and stopped commuter trains as Catalonia faces a general strike in the wake of unprecedented controls in the region by Spanish central authorities to crush an independence bid.

Intersindical CSC, a platform that groups pro-independence workers' unions, had called the strike for Wednesday to push for labor rights. But the call comes at a sensitive political moment, and separatist parties and civil society groups asked workers to join the stoppage to protest the jailing of activists and ousted Catalan government officials.

Spanish authorities took direct control of Catalonia after regional lawmakers passed an independence declaration on Oct. 27. An early election has been called for next month to replace the sacked regional government.

Among dozens of roads blocked, protesters cut the traffic on the AP7 motorway north of Girona, one of the main arteries connecting France and Spain.

http://www.foxnews.com/world/2017/11/08/striking-protesters-disrupt-transportation-in-catalonia.html

Philippines, Seeking to Appease Beijing, Halts Construction in South China Sea

MANILA — President Rodrigo Duterte of the Philippines has ordered military officials to stop construction work on a sandbar in a disputed area of the South China Sea after Beijing complained, the country’s defense chief said on Wednesday.

Mr. Duterte’s decision to halt work on the project, which was to include a shelter for Philippine fishermen, signals an effort to improve ties with China before a regional summit meeting in Vietnam this weekend.

China complained in August about the work on the sandbar at Sandy Cay, the Philippine defense secretary, Delfin Lorenzana, said. The sandbar is near Thitu Island, which Manila calls Pag-Asa island and claims as its own.

“They complained that we were occupying a new feature,” Mr. Lorenzana said, adding that the Philippine Defense Ministry had transported people there “to put structures for our fishermen.”

The resource-rich Spratly Islands are claimed in whole or in part by both nations, as well as by Brunei, Malaysia, Taiwan and Vietnam. Beijing has been creating artificial islands in the South China Sea, expanding former reefs and outcrops into guarded permanent outposts, increasing tensions with Washington, which has sent warships through the area.Continue reading the main story

Mr. Lorenzana said that Beijing had invoked an agreement between the Chinese and Philippine foreign ministers to maintain the status quo in the area, and not to occupy any new land features, in an effort to reduce tensions in the area. He said that Mr. Duterte had been informed of the “standoff” and had decided to halt construction on the sandbar.

“I agree with the decision because it was indeed a new feature,” Mr. Lorenzana said.

China claims ownership of a vast majority of the South China Sea, asserting rights even to waters near the shores of other nations.

A third of global maritime traffic passes through the South China Sea, making the disputes a source of contention, with defense strategists and analysts warning that competing ownership claims could lead to armed conflict.

The Philippines has contested many of China’s claims, but since assuming office last year, Mr. Duterte has taken a more conciliatory stance. The president, who is the current chairman of the Association of Southeast Asian Nations, hopes to begin negotiations this year for a code of conduct that would govern actions in the region. Mr. Duterte will host Asean leaders in Manila next week.

But some Philippine lawmakers oppose what they see as Mr. Duterte’s acquiescence to China.

Representative Gary Alejano, a former marine captain who had warned of China’s increasing presence near Thitu, accused Mr. Duterte of buckling to Beijing, saying the Philippines could rightfully set up structures on the sandbar.

“There was no new occupation of the sandbars by the Philippines because these sandbars have been traditionally under effective control by Philippine troops,” he said.

Mr. Alejano noted that the sandbars in question, about 2.5 miles from Pag-Asa, were subject to regular patrols and visits by Philippine forces and fishermen.

“That is part of Duterte’s strategy of silence, inaction and subservience to China’s actions in the South China Sea,” he said.

Harry Roque, a spokesman for Mr. Duterte, said in an interview on Tuesday that the president had relied “on the principle of good faith” in dealing with China’s expansionist ambitions in the region, and he described relations between the two countries as “very warm.”

“I think we are witnessing a renaissance of sorts as far as China and Philippine relations are concerned, and this bodes well for peaceful resolution of the varying claims” in the South China Sea, Mr. Roque said.

He added that Mr. Duterte had opted to maintain “very close and cordial” relations with China, noting that his state visit to Beijing last year had resulted in pledges of Chinese investment in the Philippines.

But he warned that the government had also made “contingency plans” in case relations hit a sour note again.

“We will rely on peaceful means of settling disputes — recognizing that we also have the right to self-defense,” Mr. Roque said.

In a speech on Wednesday, Mr. Duterte highlighted his country’s warmer relations with Beijing.

“We are friends of China, we owe them a debt of gratitude,” he said, noting that the Chinese government had helped the Philippines by supplying arms to fight militants in Marawi, on the southern Philippine island of Mindanao.

https://www.nytimes.com/2017/11/08/world/asia/philippines-south-china-sea.html

Details show tax bill isn't really about competiveness or workers

The rhetoric coming out of the White House and the Congress touts corporate tax cuts as essential to make the economy competitive and help American workers. Yet, the House Tax Cuts and Jobs Act makes it abundantly clear that the true priorities of the legislation have little to do with competitiveness or workers and far more to do with rewarding business owners.

First, the tax legislation loses revenue over 10 years and even more in future decades. Deficits weaken the competitiveness of our economy in one of two ways. Government borrowing increases demand for loanable funds, raising interest rates and lowering investment.

Or, if foreign capital inflows to the United States offset that effect, such inflows are associated with a stronger dollar and a larger trade deficit, increasing protectionist pressures, already precariously high in the Trump administration (and tariffs are regressive taxes.) Borrowing from abroad must eventually be repaid, lowering future living standards.

Second, deficit spending harms our ability to fund infrastructure and respond to recessions, two crucial ingredients in competitiveness. The U.S. debt-to-GDP ratio is already forecast to increase by over 10 percentage points this decade (due to demographic changes that increase spending on Social Security and Medicare).

Making deficits even larger will reduce our ability to respond to the next recession, harming American workers. Deficits also reduce our ability to spend on sorely needed infrastructure projects. Good public infrastructure is important for making U.S. workers productive.

Well-functioning roads, bridges, ports, airports, computing and internet access help ensure the smooth transport of goods, services and ideas. Public investments pay large dividends, especially given our recent under-investment.

Third, our higher education system is a key source of economic growth and opportunity, yet the bill contains misguided attacks on higher education.

Under the provisions of the bill, student loan interest is no longer deductible, tuition waivers for graduate students would be taxable, employer-provided tuition assistance would be taxed and college endowments are taxed.

These short-sighted provisions weaken a source of substantial U.S. economic strength. We have the strongest higher education system in the world, and this sector is a source of innovation, business collaboration and highly productive workers.

Attacking higher education will result in fewer Ph.D. scientists, more burdensome student loans and faltering innovation. Tax increases on higher education total $69 billion over 10 years; in comparison, the one-fifth of 1 percent of estates that benefit from estate tax cuts gain $172 billion in benefits.

Fourth, provisions that are most likely to spur new investment, such as expensing, sunset after five years, whereas provisions that would provide tax windfalls for investments made a long time ago are excessively generous.

The bill provides a temporary incentive for new investments, which would allow companies to write off the cost of new investments for five years. However, this provision expires after five years. In comparison, the corporate rate cut to 20 percent is excessively generous relative to what we can afford, and its short-run effect is to provide a windfall to the owners of corporations.

Even more egregious is the repatriation rate. Companies receive a special rate of 5 percent or 12 percent on profits they have shifted abroad to tax havens in the past. There is simply no economic justification for such a huge giveaway. Prior similar policy experiments have conclusively shown no positive effects on investments or jobs.

Fifth, key provisions of the bill shift the playing field toward foreign income and away from U.S. activity. A territorial system entirely exempts foreign income from taxation. This makes foreign income and economic activity even more tax advantaged than under the current system, since there will no longer be eventual U.S. taxation of foreign income.

While there is a minimum tax of 10 percent on some excess foreign income, 10 percent is also less than 20 percent (and there is an incentive to have more tangible assets offshore to reduce the bite of the minimum tax.) In the end, the new system contains a clear tax preference for foreign income over domestic income.

Sixth, the bill puts business owners ahead of their workers. The business tax cuts in the bill total $1 trillion over 10 years, whereas individual tax cuts total $230 billion and estate tax cuts total $170 billion. Important individual cuts, like the family credit, are sunset, while business tax cuts are made permanent.

Republicans argue that cutting business tax rates will unleash a new era of investment and economic growth, ultimately benefitting workers, perhaps by more than $4,000 each year. Yet these views have been discredited as far too optimistic by observers throughout the political spectrum.

As I’ve argued elsewhere, there are many reasons to be skeptical of the claim that business tax cuts redound to workers by increasing investment and worker productivity. First, U.S. companies enjoy historically high after-tax profits, low effective tax rates and globally strong competitive positions.

Second, debt-financed investments receive a subsidy under the present tax system and interest rates have been quite low for some time. Of late, secular stagnation and the weak economic position of the middle class are the more likely deterrents to investment. Finally, there is scant evidence that corporate tax cuts lead to investment and wage increases.

A tax bill focused on workers would focus any tax cuts on taxes that workers pay directly. The Earned Income Tax Credit could be expanded to help low-income workers, encouraging work incentives and labor force participation.

Tax cuts could be directed at families, instead of raising taxes on millions. At the same time, business tax reform should be revenue neutral, lowering rates and expanding the base in an offsetting manner.

Instead, this bill reveals its true priorities: tax cuts for business owners and estates, done in a way that is more likely to reduce than increase the nation’s competitiveness. We can do a lot better.

http://thehill.com/opinion/finance/359105-details-show-tax-bill-isnt-really-about-competiveness-or-workers

New Agency To Support Revenue Collection In Oil & Gas Sector

Finance Minister Mr Ken Ofori-Atta has inaugurated the Multi-Agency Petroleum Revenue Committee (MAPREC) to coordinate the efforts of state institutions in the oil and gas sector in order to improve petroleum revenue collection.

The Committee, with membership from the Ministry of Finance, the Ghana Revenue Authority, Petroleum Commission, Ghana National Petroleum Corporation, Bank of Ghana and Ministry of Energy will come out with pragmatic measures to address the challenges associated with the petroleum revenue collection.

The Committee under the Chairmanship of Kweku Kwarteng, Deputy Minister of Finance, would work to identify constraints that have caused underperformance of oil and gas revenue, and adopt remedial measures to improve collection.

The set-up of the committee followed a study undertaken by the Ghana Oil and Gas for Inclusive Growth (GOGIG) Programme in partnership with the Ghana Revenue Authority to assess and identify potential revenue losses along the oil and gas decision chain.

The study was to provide further understanding of the constraints in petroleum revenue collection while informing the Ghana Revenue Authority and the GOGIG Programme of appropriate areas for interventions that optimize revenue collection.

The work of the MAPERC will bridge the coordination gap existing amongst state institutions in the oil and gas sector to improve revenue collection.

Mr Ofori-Atta said revenue generation was a major challenge and therefore any effort geared towards finding avenues to ensure that those who have to pay do so and to create a society in which people fulfil their tax responsibility was welcomed.

He said the non-payment of taxes was very pervasive either through the lack of knowledge or the inability of the country’s systems to capture them.

While there were about 10 million economic active people, out of which about four million in formal employment, only 1.1 million people paid their taxes.

The informal sector where the bulk of economic activities occur, have only 200,000 paying their taxes.

Mr Ofori-Atta said to reverse some of these trends in the oil sector, the committee would work to push understanding among stakeholders and increase accountability, which was key to getting the necessary revenue from the oil and gas sector.

He suggested the expansion of the membership of the Committee to include the Ghana Ports and Harbours Authority, the Maritime Authority, and the National Petroleum Authority, to ensure not only the coverage of the upstream sector but also the downstream as well.

Ms Adelaide Addo-Fenning, Team Leader GOGIG, said the five-year governance programme was aimed at promoting inclusive economic growth in Ghana by improving the management of the country’s oil and gas resources.

She said a key objective was to improve revenue capture, adding that the success of the programme would be measured by the extent to which GOGIG was able to support government to increase revenue from the sector as well as strengthen policy and regulatory framework.

Ms Adelaide Addo-Fenning said the DFID-funded GOGIG programme was to also help address capacity constraints by improving the capacity of government agencies involved in the management of Ghana’s nascent oil and gas sector, as well as engaging with a variety of accountability actors involved in improving public scrutiny of the sector.

“A key objective is to support government to maximize the benefits that can be derived from the nascent industry. Clearly all indicators show that it is going to be key driver of economic growth in the short and medium term,” Ms Addo-Fenning added.

She said GOGIG in the past two years had provided capacity building support to the Ghana Revenue Authority, help with the income tax act, and Petroleum Revenue Management Act regulations.

She said a study carried out in collaboration with GRA to identify areas of potential revenue losses and to enhance revenue capture in the Petroleum Industry, showed the need for coordination among the institutions involved in the sector.

It also stressed the need to clarify guidelines and regulations, as well as simplifying some of the arrangements.

“If the agencies are better coordinated there is a better chance of raising more revenue,” she added, and pledged GOGGI continuous support to the institutions and the committee.

https://www.modernghana.com/news/814857/new-agency-to-support-revenue-collection-in-oil-gas-sector.html

Altamesa, Fondo AAA, MVG Alliance Promotes Oil & Gas Production Investments in LATAM

BOGOTA, Colombia & HOUSTON--(BUSINESS WIRE)--Altamesa Energy Canada Inc. (“Altamesa Energy”) today announced a strategic collaboration agreement to pursue acquisitions and investment opportunities within the Latin American (“LATAM”) oil & gas industry through the launch of the Altamesa Platform. Created in partnership between Altamesa Energy, Fondo AAA, and MVG Energy Solutions (“MVG”), the integrated platform, led by experienced industry executives, leverages upon the wealth of experience, industry expertise, and resources of the resulting robust team to identify, acquire, finance, and develop targeted assets to their full value.

Donald Glover, President of MVG Energy Solutions, said: “The Altamesa Platform is designed to provide investment opportunities as well as operational and management solutions to our global clients, which include private equity funds and other institutional investment firms. We aim to swiftly capture opportunities which meet agreed investor requirements. We will also work closely with asset owners and operators in the LATAM oil & gas industry.”

The Altamesa Platform strategically focuses on medium and large-scale oil & gas production projects in, but not limited to, Argentina, Brazil, Colombia, Mexico, and Peru and is underpinned by an initial portfolio of pre-qualified target assets representing approximately 200,000 barrels of oil equivalent per day (BOEPD) and US $3.5 billion of investment. The platform’s senior management team possesses more than a century of collective experience in the global oil & gas industry, as well as direct involvement in LATAM projects totaling over US $10.1 billion of investment.

Armando Méndez, Co-Founder and CEO of Altamesa Energy, said: “We are proud of the collection of top industry talent formed by our strategic alliance. The deep, diverse, and complementary expertise of the aggregate team uniquely positions the Altamesa Platform to capitalize on the current opportunities offered in the LATAM oil & gas environment for the benefit of investors and other stakeholders. We look forward to a well-timed launch and to providing differentiated on-the-ground business development and management capabilities to the LATAM market.”

Carlos Velásquez, Co-Founder and Board Member of Fondo AAA, adds: “We are excited to be a part of the Altamesa Platform and for the opportunity to collaborate with industry leaders such as MVG’s Donald Glover. Our shared objective was to fill a gap in the industry by offering institutional investors a locally-managed LATAM platform built upon technical and commercial proficiency, capital markets knowhow, and a scalable pipeline of quality transactions.”

About Altamesa Energy Canada Inc.

Altamesa Energy is a LATAM-focused oil & gas project development and asset management investment platform headquartered in Montreal, Canada, with a strategic office in Bogota, Colombia, and presences in Europe and the United States. Altamesa Energy promotes institutional investment in the LATAM oil & gas industry by developing, acquiring, financing, and transforming medium and large-scale oil & gas production projects through strategic alliances with established value-added partners. For more information, please visit: www.altamesaenergy.com

About Fondo AAA

Fondo AAA is a Colombian-founded LATAM investment firm specializing in the further expansion of proven oil and gas fields, as well as the development and financing of renewable energy infrastructure, such as hydropower, solar, and wind. Headquartered in Medellin, Colombia and Miami, Florida, Fondo AAA reduces the cost, risk, and complexity of investing in LATAM Energy Assets through its capable local team, structuring expertise, and consistent deal sourcing.

For more information, please visit: www.fondoaaa.com.co

About MVG Energy Solutions

MVG Energy Solutions, based in Houston, Texas, designs customized strategies delivering operational excellence and cashflow optimization for existing oil & gas operations in both the conventional and unconventional (shale) sectors. Founded on thirty years of industry experience in North and South America, including major acquisition and divestiture transactions, MVG is a proven oil & gas business improvement specialist across operations, technology, and finance.

http://www.businesswire.com/news/home/20171107005036/en/Altamesa-Fondo-AAA-MVG-Alliance-Promotes-Oil

School officials: Heavy financial burden for transportation shouldered by rural districts

VERNON TOWNSHIP — The state’s outdated system for funding school transportation forces rural districts like many of those in northwestern Pennsylvania to shoulder a heavy burden, officials from the region told a state Senate subcommittee Monday.

Representatives from several northwestern districts and bus companies painted a dark and depressing picture of school transportation at a hearing held in the Crawford Central Instructional Support Center. The picture they painted was literally dark: they described students braving wintry conditions while trudging as much as 1.5 miles to rural bus stops for pickup times as early as 6 a.m., then spending 90 minutes on the bus in some cases — only to repeat the process all over again in the afternoon.

“The challenges to rural districts are far greater than to our urban counterparts,” Conneaut School Board President Jody Sperry said in testimony presented to the Appropriations Subcommittee on Education, Workforce, Community and Economic Development. “With the possibility of the property tax elimination, we struggle to know where we will find the dollars to continue.”

The subcommittee, which included Republican state Sen. Michele Brooks of Crawford County, listened again and again to school officials who feel squeezed by the large geography of rural districts and a state funding formula that encourages districts to put as many students on a bus as possible. To get more students on a bus, districts must design longer routes, which mean longer bus times.

Conneaut, for example, is spread over 319 square miles with a population density of 2.1 students per square mile, according to Doug Anderson, owner of Anderson Coach and Travel, which provides bus services for the district.

“We run out of time before we run out of seats,” Anderson told the legislators.

For the time being, Sperry said, the longest any Conneaut student spends on the bus is 75 minutes for a one-way trip, but that could be going up as the district begins to consider middle school consolidation.

“(Students) could possibly be on the bus for two hours (each way) if we need to control our transportation costs,” Sperry testified.

Conditions are nearly that bad already in Warren County, the state’s second largest district by area at 788 square miles. Students ride buses for up to 90 minutes in some cases.

Furthermore, said Superintendent Amy Stewart, buses carry students of all grade levels rather than make multiple trips on the same routes. As a result, some of the students riding the bus for three hours each day are first and second graders.

All districts face common challenges when it comes to transportation, according to the testimony presented Monday. Extensive training requirements limit the pool of bus drivers. Districts are mandated to provide transportation to nonpublic schools, even days when the district’s own schools are not in session — and even to schools as much as 10 miles outside the district’s boundaries. State regulations also require districts to transport homeless students to their “home” districts, regardless of where the students may be located at present.

Rural districts also face challenges unique to their locations.

Stewart pointed out, for instance, that Warren County School District transports 82 Amish students to eight different preschools. Further complicating the task, she said, is the fact that the Amish do not follow daylight savings time, forcing the district to accommodate multiple student schedules.

Local bus companies told the senators that the state method for reimbursing school district transportation costs, which was formulated in 1972, doesn’t account for costs and conditions that have developed in the intervening decades.

Increasing costs for fuel, insurance and even school bus parts should be reflected by updating the reimbursement formula, according to Fred Bennett, president of the Pennsylvania School Bus Association. Perhaps most importantly, the formula should recognize the high cost of transporting children with special needs, particularly in geographically large rural districts where it is difficult to maximize the number of students in any given vehicle.

The goal of the reimbursement formula when it was designed 45 years ago, according to Sen. Patrick Browne, was for districts to end up spending about 0.5 mills of property taxes on transportation.

Conneaut’s current contribution to transportation costs are equivalent to more than four mills of taxes, while Warren County’s are about five mills, according to data presented at the hearing.

http://www.meadvilletribune.com/news/school-officials-heavy-financial-burden-for-transportation-shouldered-by-rural/article_f5a14032-c34e-11e7-9ad2-9f1770b9b437.html

Philippines starts construction near China's manmade islands in disputed waters

MANILA (Reuters) - The Philippines has started upgrading military facilities on the biggest features it occupies in the disputed South China Sea, its defense secretary said on Tuesday, asserting Manila’s claims in the strategic waterway.

Delfin Lorenzana said a contractor was building a beach ramp on Thitu Island, locally known as Pag-asa (hope), the largest of nine features the Philippines holds in the Spratly islands.

“While construction is ongoing, albeit intermittently, depending on good weather, we expect its completion by early 2018,” Lorenzana said, adding the monsoon rains have been hampering the building of the beach ramp.

“No construction can proceed without a good beaching ramp.”

China claims almost the entire South China Sea, but Brunei, Malaysia, the Philippines, Taiwan and Vietnam also have claims on the waterway where more than $3 trillion worth of sea-borne goods pass every year.

Recent satellite imagery has shown Chinese vessels gathering around Thitu, in what some experts say could be an attempt to deter the Philippines from cementing its claim. China’s ambassador has played that down, insisting his country has no ill intent.

The two countries have long been at odds over the South China Sea, although ties have warmed substantially under Philippine President Rodrigo Duterte, who says it is smarter to do business with China than pick a fight with its far superior military.

Lorenzana said the ramp was important to allow large naval ships to deliver construction materials to repair and upgrade the island’s airfield, fix structures and build a new port for fishermen.

A small community lives on Thitu, ostensibly to prop up the country’s claim, although conditions are basic compared to those enjoyed by Vietnamese and Chinese on other islands in the Spratly chain.

Defense department spokesman Arsenio Andolong said the government would spend more than 1.3 billion pesos ($25.3 million) for the upgrades on Thitu.

The military has defended the work, saying almost of all South China Sea claimants have been doing the same.

China has built seven artificial islands, installing radar and anti-aircraft guns and missiles on several. Experts have predicted fighter jets will soon be deployed on those islands.

http://www.reuters.com/article/us-southchinasea-philippines/philippines-starts-construction-near-chinas-manmade-islands-in-disputed-waters-idUSKBN1D71F2

Will The Third Great Energy Revolution End The Oil & Gas Industry?

The history of crude oil and natural gas is a history of technological innovation. Until recently the innovation supported crude oil and natural gas. Now, it challenges it, causing structural changes in the crude oil and natural gas markets.

Originally, crude oil was only used for lighting. This changed following the invention of the internal combustion engine, which outperformed steam engine in power, range and ease of operation and maintenance, and the invention of the conveyor belt, which made it possible to mass-produce the internal combustion engine at a price which was affordable to the masses. Not much later, crude oil became the transportation fuel of choice. The horse drawn carriage was replaced by the car; the locomotive by the diesel train; the steamship by the motor vessel; and the zeppelin by the airplane.

For a long time, natural gas was an unwanted by-product from crude oil production, and typically burned off (flared) at the production site. That was until, again, technological innovation made utilization of the benefits in natural gas possible. Improvements in pipeline technology made it possible to use natural gas as a feedstock for the chemicals industry, and as fuel for home heating, cooking and power generation. Later on, LNG technology improvements greatly expanded the market for natural gas and made it truly global.

Technological innovation was therefore not only behind the first great energy revolution—from wood to coal—during the Industrial Revolution of the 18th and 19th century, but also behind the second great energy revolution—from coal to crude oil and natural gas—during the first half of the 20th century.

Now, in 2017, crude oil and natural gas, the great beneficiaries of earlier technological innovation, find themselves challenged because of continued technological innovation. Innovation in (battery) technology has made the electric drivetrain a serious competitor for the internal combustion engine, leaving crude oil challenged by electricity while at the same time that natural gas is being challenged by solar and wind in electricity generation.

This has led some to predict the imminent demise of the oil and gas industry. But is this the correct conclusion?

We must remember that both crude oil and natural gas are not solely used for transportation (crude oil) and electricity generation (natural gas). And some of the drivers of crude oil demand, such as heavy duty hauling and aviation, will remain unaffected by the electrification of transportation trend. The same goes for natural gas, which will remain the main source of chemicals and energy for the heavy-duty industries such as steel, aluminum, cement and paper.

Even if the current expectations around technological innovation materialize, it will still take time before crude oil is comprehensively outperformed by electricity in transportation and natural gas by solar and wind in electricity generation.

Along with battery innovation, the electrification of transport also requires the development of recharging infrastructure. In areas where most houses have garages this is less of an issue, as their electric cars could be charged overnight at home. And since overnight charging means charging during off-peak hours, this wouldn’t be an immediate issue for most existing power grids. In areas with many homes without garages, however, a publically accessible charging network will need to be established. The most sensible solution for such areas is to equip public parking and office parking spaces with chargers (a fantastic business opportunity for utility companies!), but this requires collaboration between city planners, real estate developers and entrepreneurs, all of whom, barring a few exceptions, have only just begun thinking through the implications of electric transportation. Thus, it will most likely take years—possibly even decades—for many areas around the world to become truly supportive of the electric transportation trend.

The shift from coal- and gas-powered electricity generation to wind and solar faces similar practical hurdles in many parts of the world. In wealthier countries, funds will be available to finance a relatively fast transition, which will include early retirement of coal and gas plants. In countries where the grid is immature and investment is necessary, this investment can quite easily be directed toward solar and wind and away from coal and gas, leading such countries to skip the coal and gas age and move straight into the renewables era. Countries with existing coal- and/or gas-based electricity grids—whether poor or faced with competing priorities (growth or sustainability?)—will be more inclined to leverage the existing infrastructure as long as possible, however, ensuring continuation of at least part of current natural gas demand for electricity generation for a long time to come.

So even under the most optimistic forecasts for technological innovation, usage of—and thus, demand—for crude oil and natural gas will likely remain well into the future, but could soon reach a peak.

That doesn’t mean that the oil and gas industry will stay the same and has nothing to worry about. The mentioned technological trends will definitely create a completely different market dynamic. Managing profitability and growth in a flatlining or even shrinking market is completely different from managing them in a growing market, after all.

Natural decline will demand continued investment in crude oil and natural gas resources to be able to continue to meet demand, under both kinds of market conditions. However, in a growing market natural decline is a much bigger challenge than in a flatlining or shrinking market, as in the former more than the natural decline will have to be added to production, while in the latter less will already suffice.

In a flatlining or shrinking market for crude oil and natural gas, oversupply will therefore be a continuous threat, making the kind of pressure on the price that the oil and gas industry has experienced over the last few years a permanent reality—think “lower forever” instead of “lower for longer”. In this environment, competitive advantage is in the lowest cost resources and operations. In the former, the NOCs have the edge over the IOCs; in the latter, however, most NOCs remain outperformed by their international counterparts.

Also, in a flatlining or shrinking market, growth can only be achieved through consolidation. Only the very best performing IOCs will be granted access to the resources of the not-so-well performing NOCs, while the IOCs with anything less than stellar performance will exit the market, as the low-price environment will push many NOCs to upgrade their own capabilities to ensure continued profitability.

This exit from the market by the IOCs with less than stellar performance will either be through bankruptcy or diversification into a new market with continued growth potential. Thus, there can be no doubt that diversification is now an urgent must for all IOCs to ensure long term growth and hedge against the risk of eventual obsolescence.

https://oilprice.com/Energy/Energy-General/The-Era-Of-Oil-And-Gas-Is-Nearing-Its-End.html

Why Did Tesla’s Stock Crash?

Tesla, Inc. has been keeping its word on hitting Model 3 production targets and financial goals – at least compared to what happened with the delayed schedules of the luxury Model S and Model X launches in recent years.

CEO Elon Musk and other top executives yesterday broke the news during an investor shareholder call that its long-promised commitment to reach 5,000 Model 3 units rolling off the assembly line by the end of this year won’t be met. The company also reported that production costs have been heavy, with its largest quarterly loss ever - coming in at $619 million for the third quarter.

Musk had made similar failed promises on the Model S and Model X, which competitors have enjoyed as regulatory pressure mounts to build and sell more electric vehicles. The Model 3 has made for a much larger target, with production expected to shoot up from about 100,000 units this year to 500,000 vehicles next year based on Tesla’s claims.

Tesla said in its earnings call that Model 3 production has been slowed by changes being made with improvements at its Gigafactory. It will reach its goal of producing 5,000 of the vehicles per week by early 2018, rather than the end of 2017, the company said.

The $619 million loss compares to a $336 million loss in the previous quarter and a $21 million profit in Q3 2016. That’s coming from the huge investment needed for ramping up production of the Model 3 at its Fremont, Calif., assembly plant and its Nevada-based Gigafactory.

“While we continue to make significant progress each week in fixing Model 3 bottlenecks, the nature of manufacturing challenges during a ramp such as this makes it difficult to predict exactly how long it will take for all bottlenecks to be cleared or when new ones will appear,” Tesla said.

The bottlenecks go back to last month when Tesla revealed that it had only made 260 Model 3s since the car’s launch during the summer. The company initially predicted that it would produce 1,500 Model 3s in September.

Musk blamed “production hell” and “bottlenecks” in a recent Twitter post. Analyst reports said there was more to the story – that the production process was not working like it was supposed to and that Tesla was still relying on hand-made parts; inadequate communication with the company’s suppliers was another problem mentioned.

The company also reported a record $3 billion in quarterly revenue and delivery of about 26,000 vehicles. The Model S and Model X have been popular to lease by luxury vehicle owners, and those fascinated with the performance, tech toys, and zero emissions.

It hasn’t been enough to save Tesla’s stock value. It was last trading at about $296, plunging from a high of $385 on September 18.

Tesla’s battery partner, Panasonic, earlier this week said that production problems are being worked out at the Gigafactory in Nevada. Panasonic CEO Kazuhiro Tsuga said that delays to the automation of the battery pack production line meant some of it had to be completed manually.

It will soon be automated, meaning the number of vehicles to be produced will rise sharply, Tsuga said. He declined to comment on how his company sees the production schedule will be carried out compared to the original projection.

During the earnings call, Tesla backed away from its lofty goal of hitting production targets of 10,000 Model 3s per week. The company didn’t commit to when that goal will come back, or if it ever will. It’s been lowered to hitting the 5,000 per week goal, and will be reassessed at that time.

The former NUMMI plant in Fremont, where Tesla is building its electric cars, was previously jointly owned by General Motors and Toyota. The NUMMI plant averaged about 8,300 vehicles produced per week during its peak.

Tesla told shareholders that it may build a factory in China during 2019. Discussions have been underway with the national government to set up shop in one of its free trade zones to avoid the requirement of having to set up a joint venture with a Chinese automaker.

Tesla wants to protect its vehicle design intellectual property, and wants to maintain control over the production and marketing.

The auto industry has seen several electric car startups file for bankruptcy in recent years, highlighting the massive costs of becoming a vehicle manufacturer. Tesla has upped the ante greatly with its ambitious production targets for the Model 3, and soon after, the Model Y electric crossover.

https://oilprice.com/Energy/Energy-General/Why-Did-Teslas-Stock-Crash.html

China Has Begun Testing a Brand New Type of Electric Transportation

ART PROJECT

China’s CRRC Corporation has started testing a new public transport vehicle that blurs the lines between a train and a bus. Dubbed the Autonomous Rail Rapid Transit(ART) system, it can carry up to 300 passengers across three carriages at speeds of up to 70 kilometers per hour.

ART bears the physical appearance of a train but it doesn’t rely on following a track. Instead, it follows a virtual route using an electric powertrain and tires. It’s expected to function much like an urban train or a tram, but since there’s no investment cost in laying down rails, it should be much cheaper to implement.

This vehicle is also emission free, as it runs on electricity. Currently, its battery packs are only capable of traveling 15 kilometers on a single charge, but they can be fully recharged in just ten minutes using a connection point situated on the top of the carriage.

The concept was first displayed in June 2017, but the system is now being put through its paces on the streets of Zhuzhou in the Hunan Province.

GOING THE DISTANCE

China is pursuing a variety of different avenues in terms of advanced public transport. The country’s Aerospace Science and Industry Corporation is reportedly working on a more sophisticated version of the Hyperloop concept, although there’s no word on how far into development this initiative is.

One particularly high-profile endeavor was the straddling bus that made headlines in 2016. However, it has since emerged that the project was actually a scam, and its owners were arrested late last year.

Still, the country is very serious about making big changes to the way that residents get around. Authorities are making a great effort to spur the adoption of electric vehicles, which will be aided by the largest Supercharger station in the world, which Tesla opened in Shanghai earlier this month.

It’s no secret that pollution is a huge problem in China, with smog proving to have particularly deadly consequences for people living in the region. However, in recent years the government has committed to making big changes in order to improve the situation.

40 percent of China’s factories have been shut down, and authorities are reportedly working on a timetable to end the sale of gas- and diesel-powered cars. Alongside the prospect of the ART system being brought to fruition, there are hopes that air quality might continue to be improved in the years to come.

https://futurism.com/china-has-begun-testing-a-brand-new-type-of-electric-transportation/