Wednesday, January 31, 2018

US home construction tumbled 8.2 percent in December


WASHINGTON – Groundbreakings on new homes fell 8.2 percent in December, with builders ending 2017 by slowing down their construction of single-family houses.

The Commerce Department said Thursday that the monthly decline put U.S. housing starts at a seasonally adjusted annual rate of 1.19 million units. Almost all of the decrease came from builders beginning work on fewer single-family houses, a reversal from the robust gains reported in October and November.

Despite the monthly decline, housing starts in 2017 were their strongest in a decade. But the ramp up in construction has done little to offset the dwindling pool of homes for sale, which has caused prices to surge faster than wage growth.

The hot housing market is being fueled by a strengthening job market. The unemployment rate is holding steady at a 17 year-low of 4.1 percent. Workers are feeling more confident as the Labor Department said separately on Thursday that the number of unemployed workers filing for jobless benefits, a proxy for layoffs, plunged by 41,000 last week to 220,000. That is the lowest level for benefit applications in nearly 45 years.

Yet homebuilders face pressures from high land prices and a construction workforce that relies heavily on immigration at a time when President Donald Trump is seeking to limit the inflow of foreigners into the United States.

"The pace of housing starts averaged just 1.2 million for the year, far short of the historical average of 1.5 million starts," said Nela Richardson, chief economist at the real estate company Redfin. "Given the three-year drought in inventory and surging homebuyer demand, a pace of 2 to 3 million starts would be reasonable and appropriate."

For all of 2017, housing starts have risen a mere 2.4 percent. Single-family house construction drove the entire annual increase, while the building of apartment complexes plunged last year as more renters appear to be seeking properties to buy. The slight gains in construction have been unable to fully offset the drastic fall over the past year in the number of existing homes put up for sale.

Housing starts in December fell in the Northeast, Midwest, South and West.

Building permits, an indicator of future construction, slipped 0.1 percent in December to 1.3 million.

Tuesday, January 30, 2018

Extraction Oil & Gas, Inc. Announces Proposed Aggregate $600 Million Private Offering Of Senior Unsecured Notes

DENVER, Jan. 18, 2018 (GLOBE NEWSWIRE) -- Extraction Oil & Gas, Inc. (NASDAQ:XOG) (“Extraction”) announced today that, subject to market and other conditions, it intends to offer for sale in a private placement under Rule 144A and Regulation S of the Securities Act of 1933, as amended (the “Securities Act”), to eligible purchasers $600 million in aggregate principal amount of senior unsecured notes due in 2026 (the “Notes”). Extraction intends to use the net proceeds from this private placement, along with cash on hand, if necessary, to fund the tender offer (the “Tender Offer”) to purchase any and all of its outstanding 7.875% Senior Notes due 2021 (the “2021 Notes”), to pay any fees and expenses thereof and to redeem any 2021 Notes that remain outstanding after consummation of the Tender Offer.

The Notes to be offered will not be registered under the Securities Act, or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements of the Securities Act and applicable state securities laws. The Notes are being offered and sold only to persons reasonably believed to be qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act and to certain non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act.

This press release does not constitute an offer to sell, or a solicitation of an offer to buy, any security, nor shall there be any sale of any security in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Forward-Looking Statements

Certain statements in this press release, including Extraction’s intention to issue and sell the Notes, are forward-looking statements. All statements, other than statements of historical fact, included in this press release that address activities, events or developments that Extraction expects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by Extraction based on its experience and perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement. Extraction undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release.

Monday, January 29, 2018

The Largest Military Construction Project in History


By late 1967, there were 485,600 American troops in South Vietnam; over the course of the war, nearly 2.6 million American service members would serve in country. While much of the historical discussion around the American military effort has focused on the immense firepower and destruction it entailed, an equally awe-inspiring aspect of the war has been overlooked: logistics.

Moving more than two million people — along with their weapons, aircraft, food and medical supplies — in and out of the country was an almost unfathomable challenge. Early in the war, South Vietnam, which even after a century of French rule remained a largely rural nation, simply did not have the seaports and airfields required to receive this level of manpower and sustain military operations. America would have to build those facilities, and much more, from scratch. It would be, in the words of The New York Times correspondent Hanson W. Baldwin, “probably the most massive construction effort ever organized and put into the field in so short a time and the ‘largest military construction contract in history.’”

Early on, Gen. William Westmoreland, the man in charge of the American war effort in Saigon, recognized that Vietnam would be a conflict with no fronts — the war would have to be executed in all areas of South Vietnam at the same time. The solution was to construct “logistical islands” along the coast to receive personnel and matériel for distribution to inland logistics centers, often by air.

By the end of the war, American forces had constructed six new major airports, with 10,000-foot concrete runways, at Bien Hoa, Cam Ranh Bay, Chu Lai, Phan Rang, Tuy Hoa and Phu Cat, and enlarged the two French-built airfields at Da Nang and Saigon; six new airports were also built in Thailand. Some 100 smaller airfields were built around South Vietnam to accommodate helicopters and supply aircraft.

Shipping early in the war was confined to the single deepwater port on the Saigon River, and ships had to wait at sea for months to offload. So Westmoreland’s logistical islands focused on new ports to be constructed first, as well as supporting airfields and supply depots.

American construction teams built six new seaports with 29 berths for deep-draft transport ships at Da Nang, Cam Ranh Bay, Qui Nhon, Vung Ro, Vung Tau and Newport, in Saigon; six new naval bases, with slips for amphibious shipping, were also built. In many cases, pier sections were prefabricated in the Philippines and floated over.

To care for the growing number of American and Vietnamese service members, Americans built 26 hospitals with 8,280 beds. To receive and hold the millions of tons of supplies shipped over, contractors built 10.4 million square feet of covered storage, as well as 5.5 million square feet of ammunition storage and enough tanker farms to hold 3.1 million barrels of petroleum products. Finally, the military built 26 major base camps around Vietnam, some with shopping malls and movie theaters, as well as hundreds of smaller combat firebases.

Conventionally, the design and construction of such facilities would be handled by military construction teams. But the size and urgency of the project were too much for the military’s engineers (many of whom were in the reserves, and so were not called up in time). Therefore, the Pentagon decided to rely on civilian construction contractors. In 1962, the Navy, which oversaw most of the large construction efforts, signed a contract with a joint venture between two large firms, Raymond International and Morrison-Knudsen, to build jet-capable airfields at Saigon, Da Nang and Pleiku.

By mid-1965, it was clear that the construction program was growing beyond the joint venture’s capacity, so the Navy broadened the construction consortium by adding Brown & Root, Inc. and J. A. Jones Construction Company. The consortium was then known as RMK-BRJ, and was managed by Morrison-Knudsen. By July 1966, the consortium had 51,000 employees, more than two-thirds of whom were Vietnamese. At its high point of activity, in March 1967, the consortium was spending $64 million a month, or $478 million in 2017 dollars.

Construction materials and equipment were provided to the contractor by the government. In 1966, the Navy put in an order for 196 million board-feet of lumber to build troop barracks — an order that, to be fulfilled, absorbed virtually all of the West Coast’s timber capacity for the entire year. The Navy also ordered 10,000 doors and 750,000 tons of cement. To construct the various facilities, the government provided RMK-BRJ with 5,560 pieces of equipment; the consortium also leased or chartered 16 aircraft, two landing ships, 10 landing craft, 14 dredges, 30 barges and 10 tugboats.

Alongside the contractors, at the peak of activity in 1968 more than 55,000 military engineers were in South Vietnam, including Navy Seabees, Army engineers, Air Force “Red Horse” squadrons and Marine combat engineers. In addition to building the forward combat bases, the military engineers constructed roads in operational areas as well as cantonment facilities — i.e., barracks, dining halls and training sites — at major bases. Later in the war, the Seabees and Army construction units participated in the largest single military construction effort, a network of highways strung around the country called the Lines of Communication, which cost about $500 million, or $3.7 billion today.

These units didn’t just build big; they built fast. In 1966, Navy Seabees rebuilt the damaged airfield at Khe Sanh in four days, with 3,900 feet of 60-foot-wide aluminum matting to serve cargo planes. Westmoreland “called it one of the most outstanding military engineering feats in Vietnam.”

As the war wound down, the construction program grew again to build up the ability of South Vietnam to prosecute the war and boost the economy. The Lines of Communication construction program was central to this effort in order to provide access for farmers to markets, comprising 1,750 miles of highways and bridges. The Americans also built housing for 450,000 Vietnamese servicemen and their families to improve the morale of the Vietnamese military, and thereby increase military capabilities.

The Navy closed out the RMK-BRJ construction contract in July 1972, for a grand total of $1.9 billion (equivalent to $14 billion today), not including government-furnished materials and equipment. While this contract allowed the combat mission of the Americans to proceed, it also left in place projects that continue to serve the Vietnamese people today, especially the seaports, airports, highways and bridges.

It also developed a Vietnamese construction industry, which allowed the Navy to award fixed-price construction contracts to Vietnamese contractors in 1971 and 1972. RMK-BRJ trained 200,000 Vietnamese employees in construction trades as well as administrative services, creating a skilled work force that remained long after the Americans had left.

At the July 3, 1972, closeout ceremony for the RMK-BRJ contract, Ambassador Ellsworth Bunker stated: “Construction in the cause of war has also brought construction in the cause of peace and progress.” Amid the terrible destruction of nearly a decade of conflict, he called the American military’s construction blitz “one of the finest episodes in our nation’s history.”


Sunday, January 28, 2018

Engineering student launches luggage transportation start-up


One University of Michigan student is looking to pack your bags soon. Luggage Teleport Inc., a new student start-up, transports luggage for business travelers to airports and hotels in the San Francisco and Las Vegas areas. The start-up is set to launch at the International Consumer Electronics Showcase next week in Las Vegas.

Co-founders Max Yong and Benjamin Eu, an engineering junior, met while taking entrepreneurship courses at Stanford University last summer. Yong had previously faced issues with luggage transport because his flight arrival time was much earlier than his check-in time at his hotel. Yong had a meeting to attend, so the process of transporting his luggage and traveling to the meeting took an additional hour of his time. The two saw an opening in the market and founded Luggage Teleport Inc.

The start-up works to transport luggage for business travelers between airports to hotels as well as hotel to hotel in Las Vegas and San Francisco. Through a mobile app, users can arrange for a worker to pick up their luggage at a designated time. Two pieces of luggage cost $35, and additional items are $10 each.

The company will debut at CES to introduce itself to the consumer market. Last year, more than 184,000 people attended and 4,000 companies had exhibits at the showcase. Eu said he would use the opportunity to gauge consumer interests.

“We see it as an opportunity because these people traveled there...they bring stuff there and they want everything to be productive,” Eu said. “With 180,000 people coming, we are trying to watch out for interests of the market share.”

The start-up will also offer a 50 percent-off code to University of Michigan students and alumni for the first three months of usage.

Anne Perigo, associate director for the Zell Lurie Institute at the Ross School of Business, has advised Eu on his entrepreneurial journey since his first year at the University. She also mentored the development of Carrycott, another company Eu co-founded. Carrycott offers strollers designed to be easily carried with one hand and cooling technology to prevent children from being hot or uncomfortable while in the stroller.

In an email to The Daily, Perigo described her excitement about Eu’s new endeavor.

“Benjamin is a great role model to other entrepreneurially-minded students at Michigan,” Perigo wrote. “He is willing to put in the hard work necessary to be successful and smart enough to really listen (to potential customers, coaches, advisors, judges) to know when to pivot or move on to a different idea/venture. I look forward to seeing his success as a serial entrepreneur.”

While he anticipates difficulty attending school and managing his company, Eu remains optimistic about his ability to balance his time because of the way his and Yong's working style.

“I will mainly be managing the technological and back end side of the operations while my co-founder will be in the state managing the drivers and operations,” Eu said. “That’s helpful for us because we are able to connect with the developers and develop the product while staying in school.”

LSA freshman Kate Sherwin welcomes the idea of the company. While she is not a business traveler, she resides out of state and would find the service helpful for moving in and out of campus.

“I think that a lot of people coming off airports don’t really want to deal with a lot of luggage,” Sherwin said. “Especially for me when I was moving into school. My family had to carry four or five suitcases...especially for students, it’s a great product and a great company.”


https://www.michigandaily.com/section/business/engineering-student-launches-luggage-transportation-start

Saturday, January 27, 2018

New Report Spots Inconsistencies In Obama Oil & Gas Testing Approvals


A new investigation by the Government Accountability Office (GAO) says the Obama administration took an inconsistent amount of time to approve applications for seismic testing for offshore oil and gas drilling, a report by The Hill says.

Depending on the regional office, some applications were approved within a day and others would take almost a year to go through the process. The National Marine Fisheries Service (NMFS) and the Fish and Wildlife Service (FWS) did not record application turnaround times consistently either.

“Until NMFS and FWS develop guidance that clarifies how and when staff should record the date the agency determines the ‘adequacy and completeness’ of an application, the agencies and applicants will continue to have uncertainty around review time frames for incidental take authorizations,” GAO said.

“Moreover, NMFS and FWS officials we interviewed said that they do not analyze their review time frames, a practice that is inconsistent with federal standards for internal control.”

Seismic analysis, which allows oil and gas companies to determine potential reserves in the underwater areas they would bid on to lease, is a controversial practice for environmentalists. They claim it unduly disturbs the wildlife.

An unpredictable bureaucracy generally makes it difficult for high cost, high risk businesses, like the oil and gas industry, to run on a set schedule. The report makes Obama’s executive branch seem unfriendly to the industry, though the previous White House did reverse forty years of restrictions on American fossil fuel exports.

“Seismic research is vital to unlocking energy potential off our coasts, and federal red tape is standing in the way,” Utah Rep. Rob Bishop, who requested the report, said. “GAO’s report highlights the bureaucratic dysfunction, lack of transparency and blatant abuses of discretion that has stalled greater exploration and development.”

https://oilprice.com/Latest-Energy-News/World-News/New-Report-Spots-Inconsistencies-In-Obama-Oil-Gas-Testing-Approvals.html

Friday, January 26, 2018

NYC transportation projects compete against each other for funding


Both Gov. Andrew Cuomo and Mayor Bill de Blasio have competing wish lists for capital transportation improvement projects that even Santa Claus couldn't deliver.

NYC already faces competition within the metro New York area for potentially $80 billion plus needed to fund major capital transportation improvements. Millions to billions more could be necessary by the time any project is completed and the true final costs are known. Everyone has their own priority wish list which in many cases conflicts with others who have different agendas.

One potential funding source for some of these projects could be amending additional state dollars to the MTA $32 billion 2015-2019, future 2020 - 2024 or 2025 - 2029 Five Year Capital Program Plans.

Cuomo last year increased the Metropolitan Transportation Authority 2015 - 2019 Five Year Capital Plan by $3 billion primarily supports $2.6 billion LIRR Main Line Third Track and increases Second Avenue Phase Two by $700 million to $2 billion. It still leaves a large unfulfilled wish list for transportation improvement projects. Just where do both Mayor Bill de Blasio and Cuomo stand on these ideas?

Cuomo still owes $5.8 billion toward the $32 billion MTA 2015 - 2019 Five Year Capital Plan plus an additional $1 billion he recently pledged in response to recent NYC Transit subway and LIRR Penn Station problems. He also owes $7.2 billion as New York state's 25 percent share for the New Jersey to Penn Station $29 billion Gateway Tunnel project.

Many NYC Councilmembers are supporting the Commuter Rail Fare Equalization Proposal. This would allow NYC residents to pay the same $2.75 fare on the LIRR or Metro North Rail Road as riding the NYC Transit Subway and provide a free transfer to the NYC subway. How will NYC provide the MTA with $200 million to cover the cost? Another $200 million is needed to provide 1/2 fare Metro Cards for several hundred thousand residents earning less than $26,000 per year. Mayor de Blasio also wants a free transfer for private municipal ferry riders and future Brooklyn Queens Street Car Connector riders to NYC Transit bus or subway. Both combined would cost the MTA millions in lost revenues which City Hall would have to make up.

Four billion of the $6 billion total cost is still needed to construct Phase 2 of the Second Avenue Subway. This will leave a balance of $14 billion more to pay for Phases 3 and 4 of Second Avenue Subway. Add another $20 billion for those who dream of extending the 2nd Avenue subway north into the Bronx and south into Brooklyn.

What about finding $800 million to build the new No. 7 subway station at 10th Avenue & 41st? This was dropped from the original scope of work for the No. 7 subway Hudson Yards extension as a means to keep the project within the final $2.4 billion budget.

Some dream of finding $10 billion more for the No. 7 subway extension from the Javits Convention Center on the west side of Manhattan to New Jersey Transit's Secaucus Junction station by Exit 15X on the NJ Turnpike. Others desire $5 billion to build an alternative extension of the No. 7 subway to the PATH/NJ Transit Station in Hoboken, New Jersey.

The proposed Metro North Rail Road access to Penn Station via the Amtrak Hell Gate Bridge, which would include construction of several new stations in the East Bronx, currently budgeted for $695 million and could easily cost over $1 billion. Several hundred million more would be needed to provide new service from Riverdale and the West Bronx using Amtrak's Empire Hudson line corridor which already provides service into Penn Station.

The LaGuardia Airport Train to the Plane will cost $1 billion with only $70 million approved to date leaving a shortfall of $930 million.

The $3 billion new Penn Station will end up needing far more than $300 million in combined assistance from the MTA, NJ Transit, Amtrak along with Port Authority of NY and NJ. Does anyone really believe that potential developers will spend $2.7 billion of their own funding to pay for this?

Staten Island residents will continue looking for $600 million for the North Shore Bus Rapid Transit. Don't forget $1.5 billion for West Shore Bus Rapid Transit along with new ferry services.

Queens residents will be looking for $91 million toward the $231 million Woodhaven Blvd. Select Bus Service. These dollars may be necessary if NYCDOT is unable to secure $91 million in United States Department of Transportation Federal Transit Administration New Starts funding.

Others will continue to lobby for $100 million to construct Light Rail between Glendale and Long Island City on the old Montauk LIRR branch; restoration of LIRR service on the old Rockaway LIRR branch at $1 billion; Triboro X Subway Express (new subway line connecting the Bronx, Queens & Brooklyn) for $2 billion); Main Street Flushing Intermodal Bus Terminal $100 million, reopening the Woodhaven Blvd Atlantic Branch LIRR Station $40 million and the Brooklyn-Queens Waterfront Street Car Connector at a cost of $2.5 billion. This would connect various neighborhoods along the waterfront from Sunset Park, Brooklyn to Astoria, Queens.

Mayor de Blasio's earlier "One NYC" Master Plan called for construction of the Utica Avenue subway originally proposed in 1910. He has asked the MTA to initiate a feasibility study for this proposal. The concept would construct extensions for both the No. 3 and 4 original IRT subway lines in East Flatbush, Brooklyn. It would be built along Utica Avenue from Eastern Parkway to Avenue U. Costs for both the first phase of Second Avenue & No. 7 subway line extension averaged $2 billion plus per mile. One can only imagine how many billions would be required to do the same along Utica Avenue.

Another developers’ dream now supported by Cuomo is an extension of the #1 subway from the Rector Street Manhattan station to Red Hook for $3.5 billion (a tunnel and three new stations) may be wishful thinking. This subway extension would support the proposed Red Hook Brooklyn economic development project.

The Port Authority needs another $7 billion to fully fund the total $10 billion cost for the new 42nd Street Manhattan Bus Terminal and $10 billion for the Cross Harbor Freight Tunnel which would put trucks on trains between NJ to Brooklyn and on to Queens through to Long Island.

Many neighborhoods are looking for introduction of either Select Bus Service; Bus Rapid Transit; Limited Stop Bus to Subway or Express Bus Service to Manhattan. There is still the need to bring many of the 471 NYC Transit subway, 21 LIRR, 13 Metro North Rail Road and 23 Staten Island Rapid Transit stations back up to a state of good repair. Don't forget the need for additional subway, LIRR, Metro North and SIRT stations to become fully compliant with the Americans for Disability Act (ADA) by construction of elevators.

The anticipated final potential cost for many of these projects will never be known until completion. Costs will be further refined by the awarding of construction contracts followed by any unforeseen site conditions and change orders to the base contracts during the course of construction.

History has told us that construction of most major new transportation system expansion projects has taken decades until completion of feasibility studies, environmental reviews, planning, design, engineering, real estate acquisition, permits, procurements, construction, budgeting, identifying and securing funding to pay for all of the above.

It is difficult for anyone at this point to really predict when we will see a shovel in the ground for many of these other new proposals, followed years later by beneficial use of projects supporting opening day service or the final price tag to taxpayers.

Clearly our region needs to prioritize the order for implementation of these projects based upon realistic assumptions for available funding.

Where will the MTA, Governor Cuomo and Mayor de Blasio find the cash for all these projects? The Federal Transit Administration may be a possible funding sources for a handful of these projects. Clearly both the State and City will have to contribute some significant funding if many of these projects will ever see the light of day. Billions in hard cash will be needed rather than increasing MTA debt by billions more. This is necessary if many of these projects will ever move beyond planning feasibility studies to see a shovel in the ground and actual construction.

https://www.metro.us/news/local-news/new-york/nyc-subway-mta-funding-penner

Thursday, January 25, 2018

U.S. factory, construction data brighten economic outlook



The economy’s robust fundamentals were also underscored by other data on Wednesday showing construction spending rising to a record high in November amid broad gains in both private and public outlays. Given the bullish growth outlook, economists expect the Federal Reserve will raise interest rates in March after increasing borrowing costs three times last year.

“Strong manufacturing and construction data confirm the U.S. economy is firing on all cylinders at the turn of the year,” said Sal Guatieri, a senior economist at BMO Capital Markets in Toronto. “The Fed remains solidly on track to lift rates again in March and two more times this year, with possible upside risk if growth doesn’t simmer down.”

The Institute for Supply Management (ISM) said its index of national factory activity jumped to a reading of 59.7 last month, the second-highest reading in six years, from 58.2 in November. A reading above 50 indicates growth in manufacturing, which accounts for about 12 percent of the U.S. economy.

The survey’s new orders sub-index shot up 5.4 points to 69.4, the highest reading since January 2004. Manufacturers also reported an increase in export orders. While a measure of factory employment fell 2.7 points last months it remained at lofty levels consistent with an expansion in manufacturing payrolls.

Factories also reported paying more for raw materials, with the survey’s prices index jumping by 3.5 points. Rising raw material prices bolster the view that inflation will pick up in 2018.

Manufacturing is likely to get a boost this year from a $1.5 trillion tax cut approved by the Republican-controlled U.S. Congress last month. The overhaul of the tax code, the most sweeping in 30 years, slashed the corporate income tax rate to 21 percent from 35 percent.

Business spending surged in anticipation of the corporate tax cuts. Recent weakness in the dollar and a strengthening global economy are expected to buoy exports of U.S.-made goods, which would underpin manufacturing.

“It is more than just domestic developments that are lifting animal spirits,” said John Silvia, chief economist at Wells Fargo Securities in Charlotte, North Carolina. “A number of the published industry comments focused on a pick-up in demand from overseas.”

The dollar .DXY was trading higher against a basket of currencies. U.S. stock indexes hit record highs and prices of U.S. Treasuries rose.

BULLISH OUTLOOK

The ISM survey showed manufacturers upbeat about the economic outlook. Machinery producers reported strong international sales and computer and electronic products manufacturers said they were “seeing a ramp-up with companies releasing early 2018 spend now.”

Food, beverage and tobacco products manufacturers, however, struck a more cautious note saying that while the economy and business were strong, signals of “headwinds in 2018 are persistent.”

In a separate report on Wednesday, the Commerce Department said construction spending rose 0.8 percent to an all-time high of $1.257 trillion in November. It advanced 2.4 percent on a year-on-year basis.

The manufacturing and construction reports added to data ranging from the labor market to housing and consumer spending in sketching a robust picture of the U.S. economy.

Following Wednesday’s data, the Atlanta Fed raised its fourth-quarter gross domestic product estimate by four-tenths of a percentage point to an annualized rate of 3.2 percent. The economy grew at a 3.2 percent pace in the third quarter.

In November, spending on private residential projects soared 1.0 percent to the highest level since February 2007 after rising 0.3 percent in October. The increase was in line with a recent jump in homebuilding and supported expectations that housing would boost economic growth in the fourth quarter after being a drag on GDP since the April-June period.

Spending on nonresidential structures rebounded 0.9 percent in November after falling 0.2 percent in the prior month. Overall, spending on private construction projects climbed 1.0 percent in November to a record high. That followed a 0.3 percent increase in October.

Outlays on public construction projects rose 0.2 percent in November after jumping 3.5 percent in October. Economists, however, expect modest gains in public spending in the months ahead.

“Many state budgets are being squeezed by weaker-than-expected revenues, and face other budgetary pressures related to things like health care,” said Nancy Vanden Houten, a senior economist at Oxford Economics in New York. “Also, the impact of the new tax law on state and local budgets is not yet clear.”

https://www.reuters.com/article/us-usa-economy/u-s-factory-construction-data-brighten-economic-outlook-idUSKBN1ES1A5

Wednesday, January 24, 2018

2018 Oil & Gas Outlook: Why Exxon and Chevron Could Unexpectedly Outshine the Market

Will 2018 be the year that the energy sector does its part in participating in this raging bull market? The Dow and S&P 500 have risen exponentially from their 2009 panic selling lows, but some investors are growing concerned that the broader bull market is nearing nine years old. The Dow Jones Industrial Average (DJIA) rose 25% and the S&P 500 rose by almost 19.5% in 2017.

Those gains greatly outpaced expectations that were forecast at the start of 2017, but big oil stocks disappointed.

Chevron Corp. (NYSE: CVX) managed to outperform its 2017 expected return of 5.3% with a total return of 6.4%. Exxon Mobil Corp. (NYSE: XOM) was projected to bring a return of just 0.9% in the past year, but the oil and gas giant posted a return of −7.3%.

Wall Street strategists have weighed in on tax reform, broader earnings growth and higher gross domestic product growth and expect to see the stock market to rise again in 2018. 24/7 Wall St. just came out with its annualized forecasting tool showing that DJIA at 26,400 and at least 2,855 on the S&P 500 are the baseline targets for 2018.

For the Dow to make its target in 2018, it seems that Chevron and Exxon Mobil are going to have to do better ahead for their shareholders. After all, the two energy giants have a combined market cap of over $600 billion but still make up just 5.9% of the Dow when you add both of them together.

At $125.19 a share, Chevron started 2018 with a consensus analyst target price of $128.55. With its 3.45% dividend yield in the mix, investors are expecting total return of 6.13% in 2018. Chevron has a 52-week trading range of $102.55 to $127.74 and a market cap of $241.5 billion. Its weighting in the Dow is 3.54%, but the rank is roughly 15th of the S&P 500.

Exxon’s 2018 starting price of $83.64 a share came with a consensus target price of $86.50. If analysts are correct, its return in 2018 after considering the dividend yield of 3.68% would be about 7.10%. Exxon has a 52-week range of $76.05 to $91.15 and a market cap of $360 billion. Its weighting in the Dow is 2.36%, but the rank is roughly 10th of the S&P 500.

The obvious issue to consider is of course where oil prices are heading. That being said, the current consensus with oil having surged north of $61 per barrel is that oil’s trading range might be tighter than over the past year. However, the floor for oil prices is also expected to be higher than what was seen in the past two years. That is good news for Exxon and Chevron. And what if oil surprises on the upside due to economic strength and higher global demand?

A second issue is that Exxon and Chevron have both been able to accomplish better project spending allocations. And the energy sector as a whole has managed to bring down production costs handily during the boom-bust cycle that the sector endured. This means that both oil and gas giants can reap better profits than in the past, even if they have to endure lower oil prices.

Tuesday, January 23, 2018

Pennsylvania halts construction of controversial pipeline


Pennsylvania regulators ordered construction crews to stop work Wednesday on a controversial major pipeline after recording numerous environmental violations in the building process, including spills and well contamination.

The Pennsylvania Department of Environmental Protection (DEP) accused Sunoco Pipeline of “egregious and willful violations” of environmental rules in building the Mariner East 2 pipeline.

The agency ordered the company to halt all work except some maintenance activities on the pipeline until it can demonstrate that it is abiding by all requirements from the permits the state granted.

“Until Sunoco can demonstrate that the permit conditions can and will be followed, DEP has no alternative but to suspend the permits,” DEP Secretary Patrick McDonnell said in a statement. “We are living up to our promise to hold this project accountable to the strong protections in the permits.”

Sunoco is a subsidiary of Energy Transfer Partners, the Dallas-based company that developed and operates the contentious Dakota Access pipeline in the Great Plains.

The $2.5 billion Mariner East 2 liquid natural gas pipeline has been highly controversial among environmentalists and some property owners.

DEP alleges dozens of legal violations by Sunoco since May, including releases of fluids into waterways, multiple unauthorized uses of horizontal drilling, unauthorized construction over a creek, violation of an order to re-evaluate construction techniques and unauthorized construction in a wild trout fishery.

DEP said in its order that Sunoco’s “unlawful conduct ... demonstrates a lack of ability or intention on the part of Sunoco to comply” with relevant laws and permits and that a suspension of the permits is necessary.

Monday, January 22, 2018

Housebuilding surge keeps construction industry’s head above water


New demand for housing kept the construction industry growing in December, adding to evidence that the sector rebounded out of recession in the final quarter of 2017.

The positive figures should help the wider economy by removing a drag on GDP growth.

But the commercial property market is still in the doldrums - activity in the sector has fallen in each of the past six months.

Overall the construction sector grew at a modest pace last month, with IHS Markit’s purchasing managers’ index coming in at 52.2 in December, down from 53.1 in November.
Any score above 50 indicates growth.
Residential property construction led the way with a PMI of 55.3, down a touch on the 56.6 recorded in November.

Civil engineering activity held flat at 50.1, an improvement on three prior months of contraction.

And the commercial construction sector fell further to 47.2, down from 48.4 in November.

“Continued support from the Help to Buy Scheme and other housing policy initiatives should keep housebuilding motoring along in 2018,” said Samuel Tombs at Pantheon Macroeconomics.

“In addition, commercial work might stabilise if, as we expect, a Brexit transition deal is agreed this year. But for now, the UK Government still insists that Britain eventually will leave the EU’s single market and customs union, so many firms that depend on overseas customers likely will remain reluctant to commit to large investments.”

There are some indications that the sector’s position may improve in the months ahead - the index for new orders rose to 53.1, the highest level since May, while the business expectations component stands at 63.3.

Builders are taking on more workers to meet this demand with the employment component of the PMI rising to 53.1.

Construction firms also ramped up their own demand, bringing in new supplies to match the growth, pushing the quantity of purchases section of the index up to 54.2, a two-year high.

The rise in orders “offers some hope” for the sector, said Howard Archer, chief economic adviser to the EY Item Club.

But overall the sector is still relatively weak.

“Despite showing modest expansion in December, the PMI indicates that the construction sector found life very challenging in the fourth quarter of 2017,” Mr Archer said.

Inflation remains a threat with the index for input prices edging up to 67.5, a modest acceleration on the month.

Sunday, January 21, 2018

Omaha transportation's future: Planners envision widened Interstates, expanded public transit


The road ahead of metro Omaha’s transportation system is an expensive one: $7.4 billion.

But the new road map is meant to chart the course for the Omaha of the future — one with 1.3 million people who are expected to increasingly use driverless cars, share the road with autonomous semis, hop Omaha’s growing bus rapid transit system or even take a streetcar.

Omaha is not going the way of the Jetsons, with automated aerial vehicles.

No, Omaha still loves its automobiles. And the new long-term travel improvement proposal would put significant attention — and funding — into streets and freeways.

But this is still the conceptual portion of the study, with no details decided yet on specific projects, costs, priorities or funding.

Notably, the study looking out to 2040 would rebuild the Interstate through the metro area. It would widen Interstates 80, 480 and 680 — a difficult prospect for a highway that’s all but maxed out.

But alongside that, transportation planners say Omaha needs a significant expansion of its public transit system. The report, an effort by the Nebraska Department of Transportation and the Metropolitan Area Planning Agency, proposes to focus 40 percent of the costs on transit.

“We’re at the point — let’s look to the future and see what our needs are going to be,” said Tim Weander, Omaha’s district engineer with the State Transportation Department.

The study promises to be a landmark one for Omaha.

The last similar study was completed in 1985 and led to the reconstruction of Omaha’s Interstate system over the next two decades. Since the modern freeway debuted, work has addressed individual bottlenecks and repairs.

The goal, according to the report, is to set a new “systemwide vision to guide improvements in the decades to come.”

But in some respects, the future of Omaha’s transportation system is outside Omaha and the State of Nebraska’s hands.

With Omaha’s place along the countrywide freight-mover that is Interstate 80, the city will experience the rise of autonomous, long-haul semi trucks, said Rebecca Ryan, a futurist and economist from Next Generation Consulting who has worked with the Greater Omaha Chamber of Commerce to develop its new 2040 goals.

Ryan said she expects capitalism to decide how and when those trucks are implemented, because sensor-driven trucks will simply be more efficient and profitable for corporations than human-driven semis.

“I feel like the market is going to decide for you,” she said.

She said that’s the biggest argument for expanding Omaha’s concrete infrastructure. “I-80 will change because of it.”

For now, the transportation report only generally outlines a package of projects. As part of the last stage of the study, officials are refining details, costs and timing on the proposed projects. This year, they plan to take the proposals public.

The leading ideas include:

» Widening the Interstate almost throughout. An idea under consideration is to divide each side of the Interstate into two parts: one set of outside lanes that has access to local interchanges, as the freeway exists now, and an inner set of lanes that runs uninhibited through the city, without that local access, said Greg Youell, MAPA’s executive director.

It’s a concept being implemented in Iowa’s reconstruction of Interstate 80 through Council Bluffs.

» Establishing an Interstate interchange around 180th to 192nd Street in Sarpy County near Vala’s Pumpkin Patch, then widening a north-south route to four lanes to connect with that new interchange.

» Widening major streets such as West Maple Road, South 72nd and 84th Streets, and Dodge Street between 72nd and 84th.

Omaha also has decisions to make about its mass transit system.
The report proposes spending almost $3 billion over time on Omaha’s transit system. Some of that funding exists already in operations and maintenance costs, but the area also will need some $1.1 billion for new capital costs, the report estimates, as it builds projects including new feeder lines into the Dodge Street bus rapid transit system and a midtown Omaha streetcar.

Ryan said those are important features that Omaha needs to build up as it competes for economic development and talent. It’s a major feature, for instance, that Amazon is seeking as it locates its second headquarters. (More than 230 cities, including Omaha, have submitted bids for the $5 billion project.)

“You’re going to get skipped for the big next-generation opportunity,” Ryan said, “if you don’t have that mass transportation that is an alternative to owning your own vehicle.”

Perhaps the biggest unsettled matter is how to pay for the projects. The gap between what’s available now and what’s needed in the future is some $4 billion, considering inflation. And that will test the transportation funding that the area receives from the federal government, the State of Nebraska and local cities and counties.

But Weander said the goal is first to establish consensus behind a plan — a process that he calls exciting.

Youell, from MAPA, said he hopes that the study leads to a significant conversation ahead.

“What do we want to do? There are more needs than we can currently fund. ... What are our priorities, and where do we go from here?”

Saturday, January 20, 2018

Woman offers homeless in freezing weather transportation to shelters

NEW ORLEANS - With temperatures expected to dip into the mid to lower 20s, B.B. St. Roman is making her rounds.

Tuesday night she traveled from the New Orleans Public Library to Claiborne Avenue checking on the homeless.

"I usually would start around 8 p.m. on a freeze night to go out and stay out until about 2 or 3 in the morning," St. Roman said.

St. Roman is the Executive Director of the NOPD's Homeless Assistance Unit. For 14 years she has made it her mission to transport men and women from the streets to the shelter.

"I have a ten-passenger van. And my job is to basically be out on the streets, and I will give people information where there are services to help the homeless and also to do transports. Some are ready to get up and go and others, they think they can tough it out and realize how cold it's gonna get and I have to do some convincing," St. Roman said.

Often times St. Roman says those without a tent are more than willing to go, but many have to be convinced that staying out in the frigid temperatures could seriously hurt their health.

"Last winter there was somebody I found who was, he was actually only 76 degrees. So his heart had stopped breathing and I rushed him up to the hospital. And they warmed him up and he survived," St. Roman said.

St. Roman says on the first night of the city's activation freeze plan, she transported about 14 people to shelters. Then on New Year's Day they transported 47 people. One of them had to be taken to the hospital.

Dr. Matthew Carlisle, an LSU Emergency Physician at University Medical Center says with the homeless and the elderly Hypothermia is their biggest concern.

"A person might get confused and a lot of times they'll get to the point where they become comatose and they may stop breathing and their heart may stop breathing," Dr. Carlisle said.

It's that condition St. Roman wants those out in the street to avoid. She's willing to do whatever it takes to keep them out of harm's way.

"On a night like tonight there's no way I can stay in, knowing that they're out there," St. Roman said.

Friday, January 19, 2018

Black River Falls company awarded construction contract for Foxconn project

The Wisconsin Department of Transportation awarded Hoffman Construction a contract to complete a 6½-mile stretch of road that will be in front of the new Foxconn manufacturing facility in Racine Coun.

The $12.7 million contract is to reconstruct a north-south frontage road along Interstate 94 south of Hwy. 11 in front of the future Foxconn manufacturing facility to accommodate the I-94 widening project.

Foxconn is investing $10 billion for a 13,000-employee complex that will be built in Mount Pleasant in Racine County. The Taiwan-based company plans to make advanced liquid-crystal display panels for commercial and consumer uses, including televisions.

he project will consist of 240,000 cubic yards of excavation, 240,000 tons of aggregate base and more than 50,000 tons of asphalt.

The original contract completion date was Nov. 18, but due to the upcoming Foxconn manufacturing facility located adjacent to the project, the completion date was changed to June 1.

“We have a plan” Brian Aebly, vice president of operations at Hoffman Construction, said. “What would normally be a 1-year job, the DOT decided to accelerate it as part of the public works to facilitate Foxconn. Our equipment, our people and subcontractors are ready to accept the challenge.”

A combination of off-road trucks and on-road dump trucks will recycle crush existing pavement to meet the schedule.

Work is scheduled to begin Monday with clearing and grubbing, traffic control and erosion control.

“Coordination with all the utility relocation in progress will be another challenge in addition to the schedule,” said James Hoffman, President of Hoffman Construction.

Hoffman Construction is excited to contribute to the state’s largest construction project — the public and private work for the Foxconn manufacturing facility.

“Foxconn coming to Wisconsin resembles when Henry Ford picked Detroit for the first automotive manufacturing facility. We look forward in utilizing Hoffman Construction’s fleet of scrapers, dozers and haul trucks and especially our biggest asset, our people, to build the projects,” said Hoffman.

Thursday, January 18, 2018

Smart Transportation in China and the United States


Many countries are experiencing significant traffic problems as their rural and suburban populations move to cities. As urban areas grow in density, vehicular congestion, poor urban planning, and insufficient highway designs have contributed to accidents and the loss of life, time and money spent commuting, and lost productivity and economic growth. The cost of traffic congestion alone is estimated to be greater than $200 billion in four Western countries: France, Germany, the United Kingdom, and the United States.

But the good news, as illustrated by this report, is that recent advancements in computing, network speed, and communications sensors make it possible to improve transportation infrastructure, traffic management, and vehicular operations. Through better infrastructure, ubiquitous connectivity, 5G (fifth generation) networks, dynamic traffic signals, remote sensors, vehicle-sharing services, and autonomous vehicles, it is possible to increase automotive safety, efficiency, and operations. Connected vehicles are moving beyond crash notification and lane changing guidance to offer a variety of services related to maintenance, operations, and entertainment. 5G networks will enable a shift in cellular technology from supporting fixed services to communication and data exchange that is machine-based.

These new capabilities enjoy broad support in parts of the world. In China, a recent survey found that 74 percent favored “the rapid introduction of automated driving in their country.” However, in other countries, public responses are more cautious. For example, only 33 percent of Germans and 31 percent of Americans supported the rapid expansion of autonomous vehicles in their nations. Residents in the latter countries are more attached to their cars and therefore less eager to embrace automated driving.

In this report, Yuming Ge, Xiaoman Liu, Libo Tang, and Darrell M. West look at several developments with the potential to turn current systems into smart transportation networks. These include intelligent infrastructure, traffic management improvements, human-machine interactive systems, vehicle safety, and security advancements. They review these innovations, examine the policy, legal, and regulatory issues associated with them, and close by making recommendations regarding ways to improve smart traffic operations. They argue that taking action on infrastructure investment, network construction, regulations and standards, privacy protection, cybersecurity, navigational systems, cloud and big data solutions, and international cooperation will yield tremendous benefits for the transportation sector.

http://www.globaltrademag.com/global-logistics/smart-transportation-china-united-states

Wednesday, January 17, 2018

Coroner IDs construction worker killed in Warren Co. trench collapse

MORROW - A construction worker was killed Thursday when a trench collapsed in Morrow, according to Warren County officials.

The coroner said the victim is 25-year-old Zachary Hess of Mason.

The incident began around noon at 5559 Anne Marie Dr.ive, south of East Pike Street. Multiple fire agencies responded.

Fire officials say the construction worker was buried up to his head when a 30-foot trench, next to a new home foundation, collapsed. Just before 3 p.m., officials said the attempt to save the worker had become a recovery effort.

"Initially we had a little bit of sight of the victim there in a short time the hole continued to fall in more and actually completely buried the victim even more. ... So it's a very loose and dangerous situation there and that's why it's a professional recovery operation," Lt. John Faine said.

The sheriff's office said he worked with JK Excavating.

Chief Investigator Doyle Burke described the complications crews faced as they attempted to free Hess' body.

"It's a process that you think you're there and then all of the sudden something else collapses, and I hate to use the word collapse ... but fills in around. So, you have to start excavating again to try to safely get this young man out. So, we're hoping that we can have him to take him up to the crime lab for a full medical exam shortly," he said.

 https://www.cincinnati.com/story/news/2017/12/28/warren-county-trench-rescue-becomes-recovery-effort-officials-say/988248001/

Tuesday, January 16, 2018

Construction begins on Vetter headquarters in Des Plaines


German pharmaceutical company Vetter Pharma has started construction on its $350 million U.S. headquarters in Des Plaines.

The first phase of construction at the 17-acre site at Mount Prospect and Algonquin roads began this month with renovations to the existing five-story office building formerly owned by the Salvation Army. The company's management, human resources and legal departments will occupy the building.

Reconstruction of the structure is expected to be complete by February and employees will move into the building in March, the company said.

That will clear the way for as many as 500 jobs to come to Des Plaines once the entire 1.2 million-square-foot facility is completed by 2030. Plans include a production facility, automated warehouse, offices and laboratory spaces.

In the meantime, however, renovations to the existing building include reconfiguring offices, upgrading utilities, repairing exterior masonry and lighting, and replacing the gate at the Algonquin Road entrance.

In 2018, construction is expected to begin on four new buildings with more than 700,000 square feet of production, warehouse, storage and multifunction space. It could take up to two years to build them, and commercial production might not start until 2022 because of required government certifications.

A second construction phase with two more buildings for production and warehousing is slated for completion by 2025.

The city, county and state used two tax incentives to lure Vetter.

The county approved a recommendation by the city to give Vetter a Cook County Class 6B tax incentive, which will lower property taxes for 12 years. The company will pay property taxes at 10 percent of market value for 10 years, 15 percent in the 11th year and 20 percent in the 12th year. Property is normally assessed at 25 percent.

Vetter also is receiving a grant from the Illinois Department of Commerce and Economic Opportunity.

Since 2011, Vetter has been operating a clinical manufacturing site in Skokie, which employs about 70 people.

Monday, January 15, 2018

israel's transportation minister wants to honor President Trump with a railway station near the Western Wall to recognize his recent “brave” decision calling for the relocation of the U.S. embassy to Jerusalem.

A railway tunnel to the Western Wall under the Old City in Jerusalem would meander past sites holy to Muslims, Christians and Jews, making such a project extremely controversial.

"The Kotel is the holiest place to the Jewish people,” said the transportation minister, Yisrael Katz, using the Hebrew name for Jerusalem’s Western Wall. “I have decided to name the train station leading to it after U.S. President Donald Trump, in recognition of his brave and historic decision to recognize Jerusalem as Israel's capital."

The Western Wall abuts the Temple Mount, also called the Noble Sanctuary — one of the most sacred sites for Judaism and Islam, and the focus of Palestinian protests in July when Israel announced it would install cameras at its perimeter after two police officers were killed in a terrorist attack.

The chance that the faithful of either religion or the doyens of Israel’s Antiquities Authority would approve of the project hovers somewhere near zero.

It is common for Israeli construction projects to be delayed for years due to the unwanted attentiveness of the antiquities czars. Recently, the attempt to expand the city of Beit Shemesh, a commuter hub between Tel Aviv and Jerusalem, came to a complete halt due to the discovery of a 1,500-year-old monastery compound.

The Western Wall is estimated to be about 5,000 years old. It is Israel’s most popular tourist site, drawing about 11 million visitors a year.

Katz, who has a knack for drawing attention to himself, declared the prospect of extending the proposed Jerusalem-Ben Gurion International Airport express train to the wall the "most important national project for the Transportation Ministry." He instructed his staff to put it at the top of the ministry’s planning and budget priorities.

Katz also once proposed the construction of an artificial island off the coast of the Gaza Strip, supposedly to serve as a railway connecting Israel and Saudi Arabia. (Saudi Arabia this week blocked Israel’s participation in the Chess World Championship by denying its players visas.)

Katz’s plan calls for construction of a tunnel 170 feet underground connecting Tel Aviv to Jerusalem’s “Donald John Trump Western Wall" station — near the Cardo — Jerusalem’s Roman-era main strip, in the Old City's Jewish Quarter. A VIP wagon would shuttle celebrities directly from the tarmac at Ben Gurion to the Western Wall station.

On Walla, a news portal, a long list of unimpressed Israelis complained about Katz’s pipe dreams, including a relatively easy to realize one-hour train from Tel Aviv to Be’er Sheba that he promised and never delivered.

Katz’s lively Facebook page filled quickly with commentary.

Some praised the proposal but said that “Temple Mount Station” would be a more appropriate name given the site’s importance. Others complained that by enhancing religious monuments, Katz “is turning Israel into Iran.”

Some were harsher.

“Wow,” wrote David Raz. “Is this suck-up your idea? I hope this ends before we end up naming half the country after him.”

Calling it “a disgusting idea,” Ya’ir Mevorach Sha’ag lamented the lack of a “‘I’m vomiting’ Like button.”

“I have a better idea,” offered Harel Aloni. “Let’s just call it Trump Wall and be done with it. And they say the left sucks up to the world.”

The comments became less printable as they piled up.

On Twitter, Haaretz senior columnist and U.S. affairs analyst Chemi Shalev asked, “Why stop with train station, ingrates? Kotel should be renamed Trump Wall and the praying area - Ivanka Square.”

Sunday, January 14, 2018

Ford wants to be the self-driving OS for the future of transportation


Ford unveiled its new self-driving “platform” on which its partners like Lyft, Domino’s Pizza, and Postmates — and even small- and medium-sized businesses — can tap into and reap the benefits of the auto giant’s fleet of autonomous vehicles. It’s an aggressive approach to the future of transportation, especially when taken with Ford’s other announcements today regarding its work with Qualcomm and its creation of something it calls the “Transportation Mobility Cloud.” In the simplest terms, Ford is tired of being just a car company; now it wants to be seen as an operating system for the future of mobility.

Ford’s new CEO Jim Hackett is taking the stage at CES in Las Vegas today to outline the company’s approach to recent trends in the transportation sector, like autonomous vehicles, ride-hailing, on-demand deliveries, and smart cities. It all can be filed under an initiative Ford introduced last year called the “City of Tomorrow,” a glossy, utopian vision of urban mobility that largely ignores the shabby condition of most of our major cities.

Nonetheless, the company is gung ho on the idea of self-driving cars that can “talk” to everything, from traffic lights to the smartphones in the pockets of pedestrians and bicyclists to other vehicles on the road. Ford announced today that it’s partnering with Qualcomm to install “vehicle-to-everything” (V2X) cellular technology in all of its cars. By 2019, Ford says all of its new cars will hit the road with Qualcomm’s connected car technology installed.

Much like the other car companies who descended on CES this year, Ford is less interested in demonstrating its autonomous capabilities, and more interested in talking about how these cars are going to be used to make money. In that vein, the company is highlighting its preexisting partnerships with Lyft and Domino’s, as well as announcing a new partner, on-demand delivery startup Postmates.

“[O]ur new platform will make it easy to connect to and work with our partners, who can benefit by accessing our fleet of self-driving vehicles to serve their customers,” Jim Farley, Ford’s executive vice president and president for global markets, writes. “Lyft, for example, is already testing the platform, which includes specific communications protocols that will be used to request and dispatch autonomous vehicles from our fleet for times and locations with surging customer demand, or to areas that are often underserved.”

With Postmates, Ford says it will begin deploying its self-driving cars for delivery company customers in the months to come. “In the future, when a consumer uses Postmates to place a purchase — whether for groceries, takeout or other goods — a self-driving vehicle could be what delivers her order,” says Sherif Marakby, Ford’s vice president of autonomous vehicles and electrification. “As part of our testing trials, we’ll study both what the merchant experience needs to be at the point of delivery and what the customer experience needs to be at that same point.”

It’s a bit nebulous, relying as much as it does on buzzwords like “platform” and “communications protocols,” but it’s not difficult to see where Ford is going with this. Every automaker working on self-driving cars today is looking for a fresh angle. GM is dispatching self-driving taxis in big cities. Toyota has zeroed in on modular delivery and retail experiences. Ford is hoping that businesses will be attracted to its very broad, loosely defined autonomous platform as a way to hop aboard the self-driving bandwagon.

Pre-construction work on track


FLORENCE — Construction of the much-anticipated nursing education building at University of North Alabama is one step closer to starting.

University officials reported earlier this month that the redesigned building plans had been approved by the state building commission, keeping the project on track for a spring or early summer start.

That approval triggers the full redesign of the plans, Finance Officer Evan Thorton told members of the university's board.

University officials worked with the project architect and an outside "value engineer" to modify the building design to reduce the construction cost after bids opened in April were markedly higher than expected.

The low bid on the original design was $20.87 million submitted by Johnson Construction. That did not include furniture or technology, which is expected to add another $2 million, Thornton said.

The new design removed the top floor of the building, which was mostly a large auditorium space. A storm shelter will be built outside the building instead of being included in the building's design.

Thornton said he would be "very excited" if the construction bid for the redesigned building was under $17 million. That would make the full project about $19 million.

Facilities Director Michael Gautney said the redesigned plans are expected to be submitted to the state building commission in February or March for final approval. Bids are expected to be solicited in March or April with a construction contract finalized in May.

The nursing education building has been a priority for more than two years. Private donations of at least $5.5 million have been secured for the project.

Thornton said additional funds from the Shoals Economic Development Fund and from a state economic development fund will be used to pay for the construction.

UNA asked for $5 million from the Shoals Economic Development Fund with $2 million being dedicated to the university's nursing program. The university also received $3 million from a state economic development fund for capital improvements.

Thornton expects the university will have to borrow some money to cover the balance of the construction costs.

"The (Shoals Economic Development Authority) money and the additional money from the state really helped," he said. "That has taken away some of the stressful burden of cutting it down to nothing. It will be a win if we still only end up borrowing $5 million."

Saturday, January 13, 2018

A Wyoming company can explore oil and gas drilling in a Montana coal mine's footprint, feds say


Move over, coal. The federal government will allow a Wyoming company to explore oil and gas drilling within the footprint of Montana’s Spring Creek coal mine.

Cheyenne-based Hoover & Stacy Inc. was awarded leases inside the permit boundary of Spring Creek in December. The leases come at the protest of mine owner Cloud Peak Energy, which had tried unsuccessfully to stop the leases near Decker from going up for bid.
Hoover & Stacy holds three leases totaling 909 acres within the mine area. The company paid $23,000 for the right to develop the mine area parcels, which were part of 37 leases it secured Dec. 12.

Cloud Peak objected, citing surface development conflicts.
“Our concern is to ensure coal leases are placed under consideration when nominating oil and gas leases within an existing mine permit and in front of mining development,” said Rick Curtzinger, Cloud Peak spokesman. “Our concerns were received by BLM after the public comment period closed. Our operations continue to work with oil and gas companies to develop all minerals and to benefit all parties.”

It isn’t often the federal government attempts to develop coal, oil and gas on the same land, but that horizontal drilling makes the development possible, said Al Nash of the Bureau of Land Management.

“There was a time and place where there would have been a vertical drilling rig and there would have been conflict, but not anymore,” Nash said.

The surface mine digs down a few hundred feet typically. Oil and gas will likely be developed a mile or more below the surface. The two projects shouldn’t interact.

The lease sale Dec. 12 involved 99,265 Montana acres and raised $37,773 in advanced rental income and $620,327 in bonus income. The average lease price per acre was $24.65.

The Oil and Gas Sector Is Changing — and So Is Geopolitics


Geopolitics is power played out against geographical settings. In this battle, ideas and ideologies matter. But it is often the most technical and complex factors — the ones we least understand and therefore discount, according to Columbia University’s Robert Jervis — that carry the greatest weight. There may be no factor more influential in contemporary geopolitics and yet least understood by journalists and policymakers than the energy revolution, which is less about renewables like wind and solar power than about how the oil and gas sector itself is changing. A Harvard professor and former assistant to President George W. Bush, Meghan L. O’Sullivan, has dissected the intricacies of this industry to offer a riveting and comprehensive geopolitical theory in “Windfall.”

The decline in crude oil prices from $100 per barrel to around $60 and below over the past two years, along with the widespread ability to extract shale gas through hydraulic fracturing of rock, or fracking, has moved the United States from being “the world’s thirstiest consumer of overseas oil to a position of greater self-sufficiency,” O’Sullivan writes. Falling energy prices have also stabilized Europe’s economy, helped Japan manage the aftermath of the Fukushima nuclear disaster, allowed China to more aggressively pursue its new Silk Road strategy across Eurasia (while reducing the pain of a decelerating economy), kept Russia from becoming an energy superpower and weakened the prospects for energy-rich sub-Saharan African countries. “On the whole,” the author says, “the new energy abundance is a boon to American power — and a bane to Russian brawn.” In fact, it was new extraction techniques in tight oil and shale gas that helped ease America out of the recession.

But triumphalists beware. Though the United States is now the world’s largest energy producer, it can never be the swing producer of hydrocarbons that Saudi Arabia once was, able to determine world prices by simply deciding how much to pump. That is because the United States is not an autocracy with a national oil company, but a vast network of hundreds of small producers making their own decisions and taking their own risks.

At the same time, the energy revolution has laid the basis for a more politically and economically unified North American continent. For this reason, O’Sullivan criticizes Barack Obama for alienating Canada with his delays of the Keystone XL pipeline and Donald Trump for alienating Mexico with his insults and talk of a “wall” between the two countries. O’Sullivan’s book lays out Trump’s ignorance of the whole United States-Mexico relationship. In 2015, the two countries traded “more than $1 million of goods and services every minute.” Rather than “simply trading in final products, the United States and Mexico build goods together, utilizing complex supply chains that crisscross the border,” a grid-work that includes 20 natural gas pipelines.

It was on the American side of the Gulf of Mexico where a floating storage and regasification unit was deployed in 2005 for the first time. Once natural gas is shipped in liquefied form, it can be converted back into gas upon arrival across the sea for actual use. Such units are now helping countries in Central and Eastern Europe receive gas from abroad, lessening their dependence on Russia for energy and creating a more globally integrated energy system. No longer dependent on continental pipelines, countries can now receive more gas by sea. This, in turn, has led to cheaper prices worldwide and stark geopolitical implications. China, for one, has benefited. It became less reliant on piped gas from Russia just at the moment when Moscow, reeling from the shale gas boom, was desperate for a natural gas export deal. The result was price concessions to Beijing that Russia otherwise would not have made.

For Russia, the rise of liquefied natural gas has placed the country in an increasingly greater disadvantage in competing with China for markets and influence in former Soviet Central Asia. Russia may still have an advantage because of its energy reserves, but it cannot wield energy for political ends as bluntly as it used to. While Russia is weakened, O’Sullivan posits that China will become in some respects a better global actor, since cheaper gas and oil will gradually reduce China’s need for friendship with energy-rich autocratic regimes and, as O’Sullivan observes, “reinforces Chinese confidence in one of the key elements of the liberal international order: the market.”

Though not wholly original, O’Sullivan writes with great clarity about a frankly dry and complicated subject. In tackling the Middle East, she observes a number of devastating ironies. Cheap oil does not spell the end of Middle East oil producers. It actually helps them, since it could price out high-cost American, Canadian and European oil. A United States that is more self-sufficient in energy will still have to be active in the Middle East to fight terrorism, resist nuclear weapons proliferation, support Israel and bolster other regional allies. Cheap oil spurs economic reform in Saudi Arabia, but also weakens the cause of Kurdish independence, since a successful Kurdish state will depend on oil revenues. Because energy is still only one factor in geopolitics, albeit a crucial one, power shifts will usually be oblique rather than immediately obvious.

Yet will Saudi Arabia have a revolution? Will Russia eventually become a low-calorie version of the former Yugoslavia? Will oil-rich Nigeria collapse, or oil-rich Venezuela continue to implode? Much will depend on the price of hydrocarbons in the years and decades ahead. In geopolitics, a $40-per-barrel world will be vastly different from a $100-per-barrel one. Rather than the usual policy pablum, “Windfall” is a smart, deeply researched primer on the subject.

Friday, January 12, 2018

LA oil & gas industry, environmentalists react to Trump's offshore drilling plan

NEW ORLEANS, LA (WVUE) - The oil and gas industry remains a huge part of Louisiana’s economic equation. But it has seen better days.

"Oil and gas has been in a depression, not a slow-down, not a recession, a depression,” said U.S. Sen. John Kennedy, R-Louisiana.

Last week President Donald Trump’s administration announced a plan to vastly expand offshore drilling from the Atlantic to Arctic oceans, a move welcome by the oil and gas industry.

"He's said, look, we're going to open up the entire Eastern Outer-Continental Shelf in the Atlantic, the entire Outer-Continental Shelf in the Pacific, the entire Gulf of Mexico and all of the seas around Alaska to oil and gas drilling,” said Kennedy.

The five-year plan would open 90 percent of the nation’s offshore reserves to development.

An industry group believes Louisiana oil and gas industry workers will benefit even from activity far away from the bayou state because of their deep knowledge of the industry.

"That work, when it happens, they will pretty much be Louisiana-trained people,” said Don Briggs, president of the Louisiana Oil and Gas Association, also known as LOGA.

But environmentalists blast the Trump Administration’s move.

"Many fishermen tell me that things are not back to normal, that there is still an impact,” said Cynthia Sarthou, executive director of the Gulf Restoration Network.

She said Louisiana is still recovering from the BP disaster and now the White House wants to open up more risky areas.

"You're opening all these areas to oil and gas development on the argument that it's safe and that you're not going to pollute anybody, despite the fact that you're continuing to pollute the people of the Gulf of Mexico,” said Sarthou.

The drilling expansion plan comes mere days after the Trump administration proposed rewriting or killing regulations placed on the industry after the BP oil rig blast and spill off of Louisiana’s coastline.

"You are rolling back what little safety increases there have been, so you know, the concern is you're going to end up having another BP disaster in an area that has not yet been despoiled and you're going to have impacts like you've had on the Gulf of Mexico,” Sarthou said in response.

And she does not believe Louisiana’s economy will benefit from the exploration planned along the coasts of distant states.

"I think that our economy is not going to be strengthened by this move but I think that the economy of Florida may be threatened by this move,” said Sarthou.

Others disagree.

"When it comes to offshore you can't beat Louisiana trained people,” Briggs stated.

Briggs also said lawsuits by some coastal parishes against the industry have had a chilling effect on shallow water exploration.

“No one wants to drill on Louisiana’s coast anymore because of those lawsuits, now deep-water that’s different,” said Briggs.

Man convicted of illegal transportation sales at San Ysidro border

A Los Angeles man convicted of operating an unlicensed, uninspected shuttle service at the San Ysidro border was placed this month on probation, San Diego City Attorney Mara Elliott announced Tuesday.

Noberto Romero Corona, 70, was found guilty Dec. 14 of unlawful sale of transportation services, a misdemeanor. He was fined $1,000 and placed on probation for a term of three years.

San Diego police arrested Corona on July 3 on the U.S. side of the San Ysidro border on suspicion of crimes related to illegal sale of transportation services, Cheryl Nolan, a spokeswoman for Elliott’s office, said.

People unlawfully selling transportation services, a practice sometimes called “wildcatting,” at the border look for customers traveling from Mexico to California, Elliott said. They offer unfairly-low prices that licensed, insured transportation providers are unable to match.

Thursday, January 11, 2018

USC-driven construction starts on renovations to Coliseum


The once-proposed changes to the Coliseum are now underway.

Construction began Monday on USC’s $270 million project to renovate the historic stadium at Exposition Park in Los Angeles, according to a school spokesman.

The start of construction had been delayed about a week while the Rams, who shared the Coliseum this past season, hosted the Atlanta Falcons in an NFC wild-card playoff game Saturday night. Rain on Monday in L.A. did not delay the start of the project, the school also said.

Senior associate athletic director Steve Lopes said earlier in the fall that construction was scheduled to begin once the Rams’ season ended, which was concluded with their 26-13 loss to Atlanta.

The timeline of the renovation is not expected to be impacted.

Had the Rams instead defeated the Falcons, construction would have been delayed an additional week and possibly longer if they won in the divisional round and hosted the NFC Championship Game on Jan. 21.

An official groundbreaking ceremony will be held later this month

The project, scheduled to be completed by the 2019 season, commences the first major upgrades for the Coliseum in two decades.

Capacity will ultimately shrink from about 94,000 to 77,500 and include the addition of luxury boxes and club suites.

Construction will start with the building of a so-called scholarship tower on the south side that will hold the luxury boxes and club suites. It will halt in August prior to the Rams’ first preseason game, then resume once their 2018 season ends.

Capacity will be about 80,000 in 2018 while the renovation is underway, prompting USC to twice reseat season-ticket holders for this fall and in 2019.

The Rams will play two more seasons at the Coliseum before moving to their new stadium in Inglewood in 2020.

Under its lease, USC is required to fund the upgrades for the Coliseum after it obtained management control of the stadium.

The Coliseum, a National Historic Landmark, opened in 1923.

Best transportation in Conneaut? Maybe Snowmobiles!

CONNEAUT, Ohio -- People in parts of Northeast Ohio’s Snowbelt are measuring the snowfall by the foot. In fact, travel has been so treacherous that some police departments have threatened to ticket drivers who venture out and get stuck.

A snowmobile was perhaps the most reliable mode of transportation in the Ashtabula County town of Conneaut Tuesday.

"We actually rode around all day today and people were stuck all over, including plow trucks," said resident Dave Lesperance.

He, his wife Lisa, and granddaughter Sophia Vickery, stopped at a gas station to fill up their snowmobiles.

“We did get stuck twice," said Lisa.

"I think it's really fun being on these and easier," said their granddaughter.

At least a couple feet of snow blanketed Conneaut throughout the day.

Even lifetime residents say it's been awhile since they've seen this much snow pile up.

"It's been about ten or fifteen years since we've had a good snowstorm," said Conneaut resident Jeremy Mareno.

"We've had several accidents, we've had motorist assists, a few people that needed being transported out of their homes for no heat, and just the weather conditions have been terrible and we've been trying to do as much as we can to help everybody," said Conneaut police Detective Michael Sullivan.

At one point, weather conditions got so bad, that Conneaut police advised residents to stay home unless they had an emergency. Anyone who ventured out without a legitimate reason risked getting a ticket, if they got stuck.

"We've given several warnings, it was more just kind of a reminder to people that we wanted you to stay off the road and for their safety as well as others," said Det. Sullivan.

Road conditions improved through the evening, but digging out remained quite a chore.

"We've been out here for almost an hour, there's a mound, walking through, it comes up to about my hip, it's bad, it's crazy," said resident Christopher Clark.

"This is four-wheel drive, so I really didn't have no troubles until I got here and I got stuck on flat ground," said Mareno.

"It's better to stay in the house," said resident Kenny Breeden as he shoveled his driveway.

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...