adplus-dvertising
Connect with us

News

Climate-related extreme weather puts oil and gas assets, production at risk

Published

 on

 

CALGARY – Suncor Energy Inc. filed a disclosure document last year laying out what would happen if extreme weather were to force a 10-day shutdown of its massive Base Plant oilsands mine in northern Alberta.

The document — which Suncor filed with CDP, a global non-profit that maintains a database on corporate environmental action and climate risk — details the financial risk to the company posed by such a scenario.

While the likelihood of extreme weather events remains “unknown,” Suncor said in the document that a 10-day Base Plant shutdown could cost the company $56 million per day (more than half a billion dollars in total) in the form of lost revenue due to production losses.

When analysts talk about the oil and gas sector’s exposure to climate change-related risk, they often come at it from a policy or demand forecast perspective. They look at the risk that climate change will prompt governments to impose more regulation on the fossil fuel sector, or that the energy transition will lead to a decline in demand for oil and gas.

But the oil and gas sector, like all industries, is also exposed to climate risk in a physical sense. That risk has been hammered home this month, as out-of-control wildfires in northern Alberta forced several Canadian oilsands companies to evacuate non-essential workers from their sites. Suncor itself, Canada’s second-largest oilsands producer by volume, has temporarily curtailed production at its Firebag complex due to the fire danger.

Also this month, Hurricane Beryl forced the temporary shutdown of offshore oil platforms along the U.S. Gulf Coast, one of North America’s most important regions for energy resources and infrastructure.

“Oil and gas infrastructure, like everything else, has been increasingly exposed to severe weather events fuelled increasingly by climate change,” said Craig Stewart, vice-president of climate change with the Insurance Bureau of Canada.

“We’ve seen it all the way back to Hurricane Katrina, which disrupted activity in the Gulf of Mexico back in 2005. We saw it in the Fort McMurray fire in 2016, where oil and gas sector or oilsands activity was disrupted for a month … and we’ve seen it elsewhere in the world as well.”

More than 40 per cent of the world’s commercially recoverable oil and gas reserves are highly exposed to the effects of climate change, according to a 2021 report by risk intelligence company Verisk Maplecroft. The report pointed to that year’s deep freeze in Texas that knocked U.S. oil and gas output to a three-year low, as well as the effects of Hurricane Ida, which caused a record 55 spills in the Gulf of Mexico and created historic disruptions to the supply of both crude oil and refined products.

Refineries, drilling rigs, export terminals and pipelines are also vulnerable to flooding, tornadoes and even drought, which has the potential to limit the amount of water the industry can draw on for processes like hydraulic fracturing. And all of these weather events are becoming more common, Verisk Maplecroft said.

“These types of events are going to become more frequent and more extreme, creating even greater shocks within the industry,” the report stated.

There’s big money in oil and gas, which means there are millions of dollars at play every time a tropical storm rears its head or a refinery trips off during a heat wave. If weather knocks out a significant amount of a jurisdiction’s oil output, it can cause temporary commodity price spikes that trickle all the way down to the consumer.

For example, nearly half of the total petroleum refinery capacity in the U.S. and 51 per cent of that country’s total natural gas processing plant capacity is located along the Gulf Coast.

Earlier this year, the U.S. Energy Information Administration warned of the potential for a “particularly intense” hurricane season in 2024, suggesting there is a heightened risk of weather-related production outages.

The EIA has also said a “high-impact” hurricane that significantly disrupts U.S. oil production could increase monthly average retail gasoline prices by up to 30 cents US per gallon.

In Canada, the largest oil-producing region is the oilsands, located in the boreal forest of northern Alberta — an area highly prone to wildfires. Thousands of oilsands workers were evacuated in the 2016 wildfire that destroyed part of the community of Fort McMurray, forcing companies to reduce their oil output by a million barrels per day.

The resulting economic impact was so severe that Canadian GDP contracted 0.4 per cent in the second quarter of 2016. Economists say GDP would have grown 0.1 per cent that quarter, excluding the impact of wildfire on Canadian oil production.

Thomas Liles, vice-president of upstream research for Rystad Energy, said while that event took place more than eight years ago, it remains fresh in the minds of many.

“From the industry’s perspective, there’s still a lot of scarring from the events in 2016,” he said.

Environmentalists say it’s ironic that the fossil fuel sector is being affected by climate change-related disasters, even as it makes plans to continue to grow oil and gas output in the future.

“They’re just throwing fuel on the fire,” said Keith Stewart, senior energy strategist for Greenpeace Canada.

“These companies have business plans that are going to make extreme weather even more extreme.”

But Liles said while the risk remains, the energy industry is better prepared for weather-related disasters than it was a decade ago. Companies have spent years developing detailed emergency response plans to protect their workers and their assets.

“I think the industry at large is pretty used to judging risks and dealing with those accordingly,” he said, adding that even if extreme weather intensifies in the years to come, it’s unlikely to dissuade companies from investing in lucrative areas like the oilsands or the Gulf of Mexico.

What fossil fuel companies are increasingly doing, said the IBC’s Stewart, is seeking insurance coverage to protect them against not just physical loss and damage, but against the impacts of business interruption in the event of extreme weather.

So far, they have had “varying” success, he said.

“Reinsurers have reduced their exposure to the commercial market in Canada over the last five years due to the growing threat of climate-driven disaster,” Stewart said, adding that getting insurance in wildfire-prone areas like the boreal forest is becoming increasingly difficult for businesses.

“Any operations, whether oil or gas or something else, that are located in those areas are going to have difficulty.”

This report by The Canadian Press was first published July 21, 2024.

Source link

Continue Reading

News

Indonesia swears in Prabowo Subianto as the country’s eighth president

Published

 on

 

JAKARTA, Indonesia (AP) — Prabowo Subianto was inaugurated Sunday as the eighth president of the world’s most populous Muslim-majority nation, completing his journey from an ex-general accused of rights abuses during the dark days of Indonesia’s military dictatorship to the presidential palace.

The former defense minister, who turned 73 on Thursday, was cheered through the streets by thousands of waving supporters after taking his oath on the Quran, the Muslim holy book, in front of lawmakers and foreign dignitaries. Banners and billboards to welcome the new president filled the streets of the capital, Jakarta, where tens of thousands gathered for festivities including speeches and musical performances along the city’s major throughfare.

Subianto was a longtime rival of the immensely popular President Joko Widodo, who ran against him for the presidency twice and refused to accept his defeat on both occasions, in 2014 and 2019.

But Widodo appointed Subianto as defense chief after his reelection, paving the way for an alliance despite their rival political parties. During the campaign, Subianto ran as the popular outgoing president’s heir, vowing to continue signature policies like the construction of a multibillion-dollar new capital city and limits on exporting raw materials intended to boost domestic industry.

Backed by Widodo, Subianto swept to a landslide victory in February’s direct presidential election on promises of policy continuity.

Subianto was sworn in with his new vice president, 37-year-old Surakarta ex-Mayor Gibran Rakabuming Raka. He chose Raka, who is Widodo’s son, as his running mate, with Widodo favoring Subianto over the candidate of his own former party. The former rivals became tacit allies, even though Indonesian presidents don’t typically endorse candidates.

But how he’ll govern the biggest economy in Southeast Asia — where nearly 90% of Indonesia’s 282 million people are Muslims — remains uncertain after a campaign in which he made few concrete promises besides continuity with the popular former president.

Subianto, who comes from one of the country’s wealthiest families, is a sharp contrast to Widodo, the first Indonesian president to emerge from outside the political and military elite who came from a humble background and as president often mingled with working-class crowds.

Subianto was a special forces commander until he was expelled by the army in 1998 over accusations that he played a role in the kidnappings and torture of activists and other abuses. He never faced trial and went into self-imposed exile in Jordan in 1998, although several of his underlings were tried and convicted.

Jordanian King Abdullah II bin Al-Hussein was expected to attend Sunday’s ceremony, but canceled at the last minute because of escalating Middle East tensions, instead deciding to send Foreign Affairs Minister Nancy Namrouqa as his special envoy. Subianto and Abdullah met in person in June for talks in Amman on humanitarian assistance to people affected by the war in Gaza.

Subianto, who has never held elective office, will lead a massive, diverse archipelago nation whose economy has boomed amid strong global demand for its natural resources. But he’ll have to contend with global economic distress and regional tensions in Asia, where territorial conflicts and the United States-China rivalry loom large.

Leaders and senior officials from more than 30 countries flew in to attend the ceremony, including Chinese Vice President Han Zheng and leaders of Southeast Asia countries. U.S. President Joe Biden sent Linda Thomas-Greenfield, the U.S. ambassador to the United Nations. Adm. Samuel Paparo, the U.S. Commander of the Indo-Pacific Command, was also among the American delegation.

Army troops and police, along with armored vehicles, fire trucks and ambulances, were deployed across the capital, and major roads were closed to secure the swearing-in.

The election outcome capped a long comeback for Subianto, who was banned for years from traveling to the United States and Australia.

He has vowed to continue Widodo’s modernization efforts, which have boosted Indonesia’s economic growth by building infrastructure and leveraging the country’s abundant resources. A signature policy required nickel, a major Indonesian export and a key component of electric car batteries, to be processed in local factories rather than exported raw.

He has also promised to push through Widodo’s most ambitious and controversial project: the construction of a new capital on Borneo, about 2,000 kilometers (1,240 miles) away from congested Jakarta.

Before February’s presidential election, he also promised to provide free school lunches and milk to 78.5 million students at more than 400,000 schools across the country, aiming to reduce malnutrition and stunted growth among children.

Indonesia is a bastion of democracy in Southeast Asia, a diverse and economically bustling region of authoritarian governments, police states and nascent democracies. After decades of dictatorship under President Suharto, the country was convulsed by political, ethnic and religious unrest in the late 1990s and early 2000s. Since then, it has consolidated its democratic transition as the world’s third-largest democracy, and is home to a rapidly expanding middle class.

___

Associated Press journalists Edna Tarigan and Andi Jatmiko contributed to this report.

Source link

Continue Reading

News

Voters in Arizona and Nebraska will face competing ballot measures. What happens if they both pass?

Published

 on

 

Voters in Nebraska and Arizona will see competing measures on their November ballots — in one case about abortion, in the other about primary elections. If voters approve them all, what happens next could be up to the courts to decide.

Like more than a dozen other states, Arizona and Nebraska have constitutions stating that if two or more conflicting ballot measures are approved at the same election, the measure receiving the most affirmative votes prevails.

That sounds simple. But it’s actually a bit more complicated.

That’s because the Arizona and Nebraska constitutions apply the most-votes rule to the specifically conflicting provisions within each measure — opening the door to legal challenges in which a court must decide which provisions conflict and whether some parts of each measure can take effect.

The scenario may may sound odd. But it’s not unheard of.

Conflicting ballot measures “arise frequently enough, and the highest-vote rule is applied frequently enough that it merits some consideration,” said Michael Gilbert, vice dean of the University of Virginia School of Law, who analyzed conflicting ballot measures as a graduate student two decades ago when his curiosity was peaked by competing measures in California.

What’s going on in Nebraska?

After the U.S. Supreme Court overturned a nationwide right to abortion, Nebraska enacted a law last year prohibiting abortion starting at 12 weeks of pregnancy except in medical emergencies or when pregnancy results from sexual assault or incest.

Abortion-rights supporters gathered initiative signatures for a proposed constitutional amendment that would create “a fundamental right to abortion until fetal viability, or when needed to protect the life or health” of a pregnant woman, without interference from the state. Fetal viability generally is considered to be some time after 20 weeks. The amendment is similar to abortion-rights measures going before voters in eight other states.

Abortion opponents, meanwhile, pursued their own initiative to essentially enshrine the current law into the constitution. That measure would prohibit abortion in the second and third trimesters, except in medical emergencies or pregnancies resulting from sexual assault or incent.

The Nebraska Constitution says the winning measure with the most votes shall become law “as to all conflicting provisions.” State law says the governor shall proclaim which provision is paramount. Lawsuits could follow.

If the measure creating a right to abortion until fetal viability gets the most votes, it could be construed as fully conflicting with the restrictive measure and thus prevail in its entirety, said Brandon Johnson, an assistant law professor at the University of Nebraska.

But if the restrictive measure gets the most votes, a court could determine it conflicts with the abortion-rights measure only in the second and third trimesters, Johnson said. That could create a scenario where abortion is elevated as a fundamental right during the first trimester but restricted in the second and third.

“There’s a decent legal argument, based on the language that talks about conflicting provisions of the measures, that you can synchronize the two,” Johnson said.

What’s going on in Arizona?

Arizona, like most states, currently uses partisan primaries to choose candidates for the general election.

The Republican-led Legislature, on a party-line vote, placed an amendment on the November ballot that would enshrine partisan primaries in the state constitution, reaffirming that each party can advance a candidate for each office to the general election.

A citizens initiative seeks to change the current election method. It would create open primaries in which candidates of all parties appear on the same ballot, with multiple candidates advancing to the general election. It would be up to lawmakers or the secretary of state to enact requirements for exactly how many should advance. If at least three make it to a general election, then ranked choice voting would be used to determine the winner of the general election.

The Arizona Constitution says the winning ballot measure with the most votes shall prevail “in all particulars as to which there is conflict.”

In the past, the Arizona Supreme Court has cited that provision to merge parts of competing measures. For example, in 1992, voters approved two amendments dealing with the state mine inspector. One measure extended the term of office from two to four years. The other measure, which got more votes, limited the mine inspector to serving four, two-year terms.

In a case decided 10 years later, the Supreme Court said parts of both measures should take effect, ruling the mine inspector could serve four, four-year terms. That could have implications for Arizona’s future elections if voters approve both competing measures on this year’s ballot.

“The court really goes out of its way to harmonize the two,” said Joseph Kanefield, an attorney and former state election director who teaches election law at the University of Arizona. Striking one measure entirely “is something that the court will try to avoid unless they absolutely determine the two cannot exist together.”

What’s happened in other states?

When Gilbert’s curiosity was peaked about conflicting ballot proposals, he teamed up with a fellow graduate student at the University of California, Berkeley, to examine 56 instances of competing ballot measures in eight states between 1980 and 2006. In some cases, the measures appeared to directly conflict. In others, the measures merely addressed similar topics.

Their research found that the measure getting the most affirmative votes often was the one that made the least change from the status quo.

But sometimes, the highest-vote rule never comes into play, because voters approve one measure while rejecting the other. Or voters defeat both measures.

In 2022, California voters were presented with two rival proposals to legalize sports betting. Interest groups spent roughly $450 million promoting or bashing the proposals, a national record for ballot measures. But both were overwhelmingly defeated.

In 2018, Missouri voters faced three different citizen-initiated proposals to legalize medical marijuana. Voters approved one and rejected two others.

“It is not unusual to have conflicting measures,” said John Matsusaka, executive director of the Initiative and Referendum Institute at the University of Southern California. “But my observation is that voters usually understand the game and approve one and turn down the other.”

Source link

Continue Reading

News

From showgirl feathers to shimmering chandeliers, casino kitsch finds new life

Published

 on

 

LAS VEGAS (AP) — Crystal chandeliers that once glimmered above a swanky lounge, bright blue costume feathers that cloaked shimmying showgirls, and fake palm trees that evoked a desert oasis are just some the artifacts making their way from the latest casino graveyards of Las Vegas into Sin City history.

The kitsch comes from the Tropicana, which was demolished in a spectacular implosion Oct. 9 to make room for a new baseball stadium; and from The Mirage, the Strip’s first megaresort, which dealt its last cards in July and is set to reopen as a new casino nearly 40 years after it originally debuted.

As the neon lights dimmed and the final chips were cashed in, a different kind of spectacle unfolded behind the casino doors. Millions of items big and small were meticulously sorted and sold, donated and discarded.

“You take this hotel-casino and you turn it upside down, shake everything out of it until it’s empty,” said Frank Long, whose family business, International Content Liquidations, led the effort to unload the Tropicana’s merchandise before its implosion.

Long, 70, a third-generation auctioneer, likes to say he’s in the business of “going, going, gone.” He jokes that his Ohio home is “decorated in early hotel,” having helped clear out dozens of them as well as casinos across the country. In Las Vegas, that includes the Dunes, Aladdin and Landmark.

“Vegas buyers are special,” Long said. “This is their community, and they want a piece of it.”

Trolling for a piece of history

On a hot day in June, two months after the Tropicana shut its doors, Long welcomed buyers onto the casino floor.

The whirring slot machines were long gone, transferred to other casinos. In their place sat an odd collection of things: desks and chairs, rattan night stands, table lamps, pillows and sofas. Piled high in what was once the high-limit gambling room were mattresses and box springs. Small crystal chandeliers going for $1,000 hung suspended from old luggage carts.

“Fill up your entire truck for 100 bucks,” Long told shoppers, grinning.

Buyers of all ages filled wagons and luggage carts with arm chairs priced at $25, mirrors at $6, floor lamps at $28. Behind red velvet ropes where guests used to check in, customers waiting to pay stood in line with 43-inch flatscreen televisions. One man hugged a mattress and box spring, trying to keep them from toppling over.

In the Tropicana’s vast conference hall, piles of large vintage spotlights labeled “FOLIES” sat in waist-high bins marked for donation. They were off-limits to buyers, destined for the Las Vegas Showgirl Museum.

The Tropicana was home to the city’s longest-running show, “Folies Bergere,” a topless revue imported from Paris. Its nearly 50-year run helped make the feathered showgirl one of the most recognizable Las Vegas icons.

Elvis’ image among the forgotten treasures

One of Long’s favorite parts about the job is sifting through forgotten corners of casinos.

Inside the Tropicana, his team rescued black-and-white photographs of stars who wined, dined and headlined there. His favorite was a candid photo of Elvis Presley found in an unused office.

In its heyday, the casino played host to A-list stars including Elizabeth Taylor and Debbie Reynolds, Frank Sinatra and Sammy Davis Jr.

Long said his people have fun with the job, too. The tedium of collecting several thousand pillows from the Tropicana’s two hotel towers turned into “the world’s biggest pillow fight.”

When Sarah Quigley learned the Tropicana was closing, she knew she needed to act fast if she wanted some of the casino’s historical records for the Special Collections and Archives at the University of Nevada, Las Vegas.

Quigley, director of the special collections, wasn’t the first to call.

But after a meeting with the Tropicana’s management team, UNLV’s special collections acquired five boxes of records from 1956 to 2024, including vintage 1970s ads for the Tropicana’s showroom, old restaurant menus, architectural blueprints and original film reels of the dancing “Folies” showgirls rehearsing in the mid-1970s.

Salvaging the neon Vegas is famed for

The Neon Museum, which rescues iconic Las Vegas signs, got the Tropicana’s red one and The Mirage’s original archway that welcomed guests for 35 years. In a herculean effort, the 30-foot sign was placed on a flatbed truck in August. A chunk of the Strip closed so the piece could be slowly driven to its new home at the museum.

The Mirage opened with a Polynesian theme in 1989, spurring a building boom on the Strip that stretched through the 1990s. Its volcano fountain was one of the first sidewalk attractions, and tourists flocked to the casino to see Cirque du Soleil set to The Beatles or Siegfried and Roy taming white tigers.

In just a few years, the Strip’s skyline will look different. The Mirage will become the Hard Rock Las Vegas in 2027, with a hotel tower shaped like a guitar. The following year, the new baseball stadium is expected to open on the former site of the Tropicana.

While the last of the Tropicana’s buildings came tumbling down in 22 seconds, pieces of the Las Vegas landmark have found a new life in nearby museums, curated collections and homes.

“There’s history here,” said Aaron Berger, executive director of the Neon Museum. “You just have to look past the glitter to find it.”

___

Associated Press video journalist Ty O’Neil in Las Vegas contributed to this report.

Source link

Continue Reading

Trending