NEO COLONIALIST BRAIN DRAIN

 In 2021, Nigeria Witnessed 'Unprecedented Exodus of Health Professionals'


Pixabay
(file photo).

28 DECEMBER 2021
Vanguard (Lagos)By Obinna Chima

... Says holistic reform of health sector overdue

No doubt that the health sector has been eventful throughout 2021. The COVID-19 pandemic in particular has disrupted every aspect of life and equally exposed massive gaps in Nigeria with its relatively weak health systems.

As the end of the year approaches, Good Health Weekly spoke to Dr Casmier Ifeanyi, a health analyst and renowned Medical Laboratory Scientist and a former National Publicity Secretary of the Association of Medical Laboratory Scientists of Nigeria, AMLSN.

In his appraisal, Ifeanyi notes that 2021 is more of a carry-over of years of numerous challenges that have long bedevilled the health sector. He regretted tthe rampant effect of brain drain on the nation's even amid the COVID-19 pandemicc and called for comprehensive and systemic repositioning of the health sector. Excerpts:

The Nigerian health sector in the year ending 2021 has been relatively eventful. This 2021 is more of a carry-over year of the numerous challenges that have long bedevilled the health sector. The preceding year 2020, was the onset of the Global COVID-19 pandemic in Nigeria. That global public health challenge caught the country very much ill-prepared for the response and containment of the pandemic.

The nation's health sector ever since has been struggling. Of course, before the pandemic, our health systems were rather in shambles, and had been roundly adjudged as frail and dysfunctional.

Our hospitals were in disrepair, dilapidated and the workforce ill-motivated. Notwithstanding the situation of the country's health sector, it proved very resilient when confronted with the challenge of the Covid-19 pandemic.

The Nigeria Health sector managed the COVID-19 response commendably considering our limited resources. Credit must be given to President Muhammadu Buhari who spared no resource towards reactivating and revamping the health system including the health infrastructure.

Unfortunately, in spite of all the huge investments, not much has changed in the sector up to the end of the year. The sad narrative is that most of the dilapidations and systemic decay subsist.

How health sector fared in all aspects

The Nigerian health sector faired poorly in the year under review. Despite enhanced budgetary provisions, the huge sums appropriated and released, it is unfortunate that the health sector is yet to better serve the Nigerian people. There were the usual episodic inglorious industrial unrest and strike especially the National Association of Resident Doctors, NARD. The 2021 NARD strike was the most protracted in recent time and it crippled the Hospitals across the country. The issues in dispute that led to the strikes are yet to become fully resolved. Again, imagine that the Federal Government released the sum of N1 billion each to almost all the 36 States and the FCT, and another tranche of about N950M each was released to all Federal Tertiary Hospitals as special Covid-19 Intervention fund, regrettably, there are virtually little or nothing in most of these hospitals commensurate to such humongous investment in the health sector in 2021.

In the year ending, Nigeria witnessed unprecedented exodus of healthcare professionals of all categories out of the country to other climes for greener pasture.

It was a matter of national embarrassment when it trended that Dubai and many other countries set up centres in hotels and in many other undisclosed places in Abuja and Lagos to massively recruit Nigerian healthcare professionals for their home countries.

Rather than address the root cause, the Nigerian Government reactionarily resorted to clamping down on such centres. Even this December, young and vibrant Nigerian healthcare professionals, the critical mass of the health workforce are still leaving the country in droves.

You cannot point to any tangible infrastructural intervention in the health sector in 2021 to support the much-touted Government interest to revamp the health sector and systems and to bring it up to par so as to meet the prevailing health challenges the nation and her people are grappling with.

Just recently, the Minister of Budget visited the University of Port Harcourt Teaching Hospital for an on-the-spot assessment of the utilisation of their own N950 million Covid-19 intervention fund.

The Minister could not hide his disappointment as he was not shown anything substantial and he left threatening that Federal Government will invoke the anti-graft agency to probe how the fund was used. Managers of the Nigerian health sector are yet to make the most of the lessons derivable from the COVID-19 experience.

Candidly, the Nigerian health sector did not fare better during the year under review. The health systems are not revamped yet; the health systems are not reformed yet. To help reposition the health sector, there is the need of urgent holistic reforms.

Effect of pandemic on the medical lab sector

Under the leadership of President Muhammadu Buhari, there has been steady improvement of budgetary allocation to the health sector. Even though we are yet to attain the 15 percent Abuja Declaration, the country has hovered between 4 and 5 percent and that is commendable progress.

If increment on the annual appropriation to the health sector. It is worrisome this budgetary improvement has not translated to an enhanced medical laboratory services provision for the Nigerian People.

To date, no medical laboratory in the public hospitals in Nigeria has any form of "third party" accreditation for the testing being performed in these hospitals. Many of the public medical laboratories are poorly equipped and resourced to provide cutting edge diagnosis.

Not much was done in the year under review to revolutionise medical laboratory services in Nigeria. The ability of a country to detect disease is a function of its capacitated medical laboratory structure and workforce.

The willful underdevelopment of the medical laboratory sector in Nigeria has continued to fester. Apart from the modest efforts of the management of the Nigeria Centre for Disease Control, NCDC, the country's ability to detect disease timeously particularly diseases that we are endemic in our country which has continued to take a huge toll on our country has remained very rudimentary.

In Nigeria, medical laboratory diagnosis of diseases such as Lassa, fever, meningitis, cholera and other childhood killer diseases remain a huge challenge. So, one key area in the Nigerian health sector needing and deserving attention is building capacity for the medical laboratory sector. We need to capacitate our medical laboratories in the tertiary health institutions, specialist hospitals and secondary health instituatons.

Supportive medical laboratory systems for timeous disease diagnoses and disease notification systems are not in place in Nigeria.

Way forward

I want to appeal to President Muhammadu Buhari to consider for 2022 a holistic reform of the Nigerian health sector as it is long overdue.

The hegemonic structure of the sector is its major impediment of the health system. Government should improve funding and track its investment in to ensure value for money and to curb corruption.

That is one effective intervention that we can help mitigate medical tourism. Government must urgently put measures in place to mitigate the ugly mass exodus of healthcare professionals occasioning brain drain.

Though not enough, the Nigerian President, a couple of days ago had directed for some interventions to assuage the agitation in the health sector.

President Mohammadu Buhari recently directed that the arrears of all the withheld salaries of health workers that embarked on strike previously, for whom the no work, no pay rule was evoked be paid. Relatedly, the National Income, Salaries and Wages Commission, this December released the approved revised hazard allowances for all categories of health workers.

Although there are misgivings about what was approved, that is also commendable because something better than N5000 has been offered by the government. That is commendable.

The government needs to do more. One of the things I expect in the new year is to resolve the issues about pay disparity, parity and relativity in the remuneration of Nigerian healthcare workers that will encourage retention and help mitigate brain drain of healthcare professionals.

The government should make it mandatory for the Chief Medical Directors and the Medical Directors of the various federal tertiary hospitals and specialist hospitals to holistically adopt the Quality Management System (QMS) and hence pursue, and attain international accreditation such as JCI and ISO for the services they render.

This is the most effective way of turning around our health system and repositioning them to better serve the Nigerian people. Everything is not about funding.

ECOCIDE

Nigeria: Pipeline Vandalism, Sabotage, Others Culminate in Shutdown of 8 Oil Terminals - Report

Amnesty International
(file photo).

28 DECEMBER 2021
Vanguard (Lagos)By Ediri Ejoh

Pipeline vandalism, sabotage and other factors have culminated in the shutdown of eight oil terminals, according to data obtained from the Nigerian National Petroleum Company Limited.

The eight oil terminals, including Forcados, Bonny, Odudu, Brass, Yoho, Urha, Ajapa and Aje, were shut between August and October, 2021, leading to losses and deferred crude oil production valued at about N556 billion at the official exchange rate of N411.95 to the dollar.

As a result, deferred/lost production in October alone was to the tune of 4,824,946 barrels of oil, the lowest among the figures posted during the three-month period. Losses and deferment in August, September and October were put at 6,680,620 barrels; 6,362,700 barrels; and 4,824,946 barrels respectively.

Already, the Organisation of Petroleum Exporting Countries, OPEC, has put Nigeria's oil output at 1.273 million barrels per day, mb/d in November 2021, indicating a shortfall of 300,000 below its 1.5 mb/d quota. The latest output also showed a drop of 4.2 percent compared to 1.329 mb/d, excluding condensate, produced in the corresponding period of 2020.

The organisation which disclosed this in its December 2021 Monthly Oil Market Report, MOMR, obtained by Vanguard, noted that the output was based on data obtained from direct sources.

However, the report did not provide reasons for the declining output during the period, but Vanguard investigation pointed to factors, such as pipeline vandalism, oil theft and illegal refining.

Also, in its latest report obtained by Vanguard, Shell stated: "While the Shell Petroleum Development Company joint venture (SPDC JV) is not responsible for preventing illegal oil refineries, it is committed to preventing attacks and breaches of its pipelines and well heads. In 2020, 92 percent of oil spills were caused by sabotage and theft - similar to previous years.

"Sabotage incidents often occur in remote areas of the Niger Delta where access is difficult. The SPDC JV works closely with government agencies, non-governmental organisations and communities to proactively minimize spills from illegal activity.

This involves using simplified zonal pipeline maps to enhance targeted response and prevent incidents from occurring."

Africa: Major Victory for Wild Coast Communities - Shell Interdicted From Conducting Seismic Operations With Immediate Effect

Greenpeace International (Amsterdam)

PRESS RELEASE

By Chris Vlavianos, Greenpeace Africa and Katherine Robinson

28 December 2021: Today the Grahamstown High Court in Makhanda ordered Shell to immediately cease its seismic blasting along South Africa's Wild Coast, while ordering Shell and the Minister of Mineral Resources and Energy to pay the costs of the application for the interim interdict.

Details of the judgement:

In granting the interdict sought by communities affected by the blasting and supporting civil society organisations, Judge Gerald Bloem said that Shell was under a duty to meaningfully consult with the communities and individuals who would be impacted by the seismic survey, and that based on the evidence provided, Shell failed to do so in the case of the applicant communities who hold customary rights, including fishing rights. They also hold a special spiritual and cultural connection to the ocean. It was thus crucial for Shell to consult these communities and understand how the survey may impact upon them. They did not. The judge found that the exploration right, which was awarded on the basis of a substantially flawed consultation process is thus unlawful and invalid. The applicants' right to meaningful consultation constitutes a prima facie right which deserves to be protected by way of an interim interdict.

On irreparable harm:

The applicants rely on cultural and spiritual harm; the threatened harm to marine life; and the negative impact on the livelihood of small-scale fishers, arising from the harm to marine life. In its answering affidavit, Shell elected not to deal with the aspect relating to the threat of harm to the applicant communities' cultural and spiritual beliefs, the applicants allegations in that regard are accordingly undisputed. The applicants also provided a massive body of expert evidence on the threat of harm to marine life, and this evidence establishes that, without intervention by the court, there is a real threat that the marine life would be irreparably harmed by the seismic survey. Against the acceptance of the body of expert evidence, Shell's denial that its activities will have an adverse impact on marine life cannot be sustained. The judge was satisfied that the applicants have established a reasonable apprehension of irreparable harm to marine life. In addition to the harm to marine life, the applicants have also established how the seismic survey will firstly, negatively impact on the livelihood of the fishers, and secondly, cause cultural and spiritual harm.

Costs:

Since the applicants were successful in obtaining the interim interdict, and because Minister Mantashe also opposed the application, the Minister and Shell are accordingly ordered to pay the applicants' costs.

Next steps:

Shell has been interdicted from undertaking seismic survey operations pending the finalisation of Part B of the application. A court will need to determine whether or not Shell requires an environmental authorisation obtained under NEMA, when part B of the application is dealt with at a date yet to be determined. The Applicants may also challenge the awarding of the exploration right based on the failed consultation. Shell may appeal the interim interdict, but it will not suspend the order at this stage.

Responses from applicants:

"The voices of the voiceless have been heard. The voices of the directly affected people have at last been heard, and the constitutional rights of indigenous people have been upheld.

This case reminds us that constitutional rights belong to the people and not to government, and that the only way that we can assure that the rights of indigenous people are living - and not just written on paper - is if we challenge government decisions that disregard these rights. This victory is hugely significant because we have made sure that the rights of indigenous communities are kept alive." - Sinegugu Zukulu, Sustaining the Wild Coast (SWC)

"Today's judgment marks one of the important milestones in our lifetime as people of not only Pondoland but South Africa, Africa and the world at large. We - the people - we took a stand in fighting against the BULLYING by Politicians, tenderpreneurs, the so called investors who undermine and threaten our livelihoods as ordinary people. The extraction of our natural resources is not a solution for so-called "poverty stricken communities" but a get rich quick scheme of those in power as well as financial control to the greedy Mafias of this world. We are living in borrowed time where money cannot buy their immunity; the mafias must be warned." - Nobuntu Mazeka, Sustaining the Wild Coast (SWC)

"This case is about making sure that profit making does not override human rights. It is about making sure that the voices of rural communities are as important as the voices of the elite. The case is not just about Shell - it is about both protecting human rights and animal rights which are both enshrined in the constitution. As coastal communities we have relied on the sea for centuries - and we are glad that the judge has recognised that our ocean livelihoods must not be sacrificed for short term profit." - Nonhle Mbuthuma, Amadiba Crisis Committee

"I feel impressed and very, very happy and proud that the court has listened to our voices - the people living on the coast. That for me is a big thing, because most of the time we feel that our government is not interested in listening to us - their people.

Also, winning in this court case means that we are not alone - the courts are with us in protecting our resources - which are the resources of the citizens of all South Africans. A decision against Shell is a decision to protect the ocean - which is ourselves. This is a decision for all citizens of South Africa - not just the residents of the coast. As residents of the coast it is our responsibility to give a shout so that everyone can hear what's going on around us. And then we work together to protect our resources for future generations so that they can live the life we are living today like our forefathers did. So this judgement is a big win for all of us - citizens and government - the whole of South Africa. I am so happy. Wow!"- Siyabonga Ndovela, Amadiba Crisis Committee

Responses from attorneys:

"The case has huge significance in that it shows that no matter how big a company is, it ignores local communities at its peril. This case is really a culmination of the struggle of communities along the Wild Coast for the recognition of their customary rights to land and fishing, and to respect for their customary processes. The Amadiba and Dwesa-Cwebe communities fought for such recognition in earlier cases, and the Makhanda High Court reminded the state and Shell today, once again, that the indigenous rights of communities are protected by the Constitution from interference, no matter how powerful the intruders are." Wilmien Wicomb, Legal Resources Centre.

South Africa: Shell Stopped! a Community's Generational Defence of Their Land, the Sea and Their Environment Must Be Protected By the Constitution

28 DECEMBER 2021
Daily Maverick (Johannesburg)

ANALYSIS

By Johan Lorenzen

On Tuesday morning the Makhanda High Court issued an interim interdict preventing Shell from 'undertaking seismic survey operations under Exploration Right 12/3/252 pending the finalisation of Part B of the notice of motion'. Johan Lorenzen, an associate with Richard Spoor Attorneys, reflects on the significance of this morning's successful judgment in the application to interdict Shell from seismic blasting off the Wild Coast.

On Tuesday, the Makhanda High Court ruled in favour of several Wild Coast communities in our application to interdict (stop) Shell's seismic blasting of 6,011km2 of the resplendently beautiful Wild Coast.

History made.

But also, history continuing.

History in the making.

It has been a bit frustrating, honestly.

I kept trying to tell our clients - Nonhle Mbuthuma and Sinegugu Zukulu - how stressful it is to wait for the judgment.

And they kept calmly saying not to worry. That it doesn't matter whether we win or lose because either way, this is just a step in a long struggle.

Which is not what a lawyer wants to hear. I want to bloody win, dammit.

But, of course, they're right.

And their rightness - on this question, on the righteousness of their entire struggle for community-driven development...

Africa: Who's Willing to Change for Climate Change?


Gerd Altmann / Pixabay
(file image) climate, globe, earth, warming, climate change, ocean

28 DECEMBER 2021
Ensia (Minnesota)By Mary Hoff

Would you alter the way you do things to help reduce the severity of climate change? If so, you're not alone. A recent survey of individuals in 17 "advanced economies" found that 80% of respondents were willing to modify some aspects of their work and lifestyle to help mitigate the threat.

The survey, conducted in early 2021, assessed the opinions of 16,254 individuals from 16 "advanced economies" by phone and another 2,596 in the U.S. via the internet. It included a broad range of questions related to beliefs and attitudes regarding climate change actions. Countries included in the survey were Canada, Belgium, France, Germany, Greece, Italy, the Netherlands, Spain, Sweden, the UK, the U.S., Australia, Japan, New Zealand, Singapore, South Korea and Taiwan.

A drill-down into the data by traits such as gender, nationality and political persuasion offers insights for individuals, organizations, governments and others seeking to mobilize individuals to help mitigate risks. Among the more specific findings:

Individuals on the political left tended to be more willing to make changes than those on the ideological right.

Young adults were more likely to be amenable to change than older adults.

Higher educational attainment was positively correlated with more willingness to change.

The survey also found that willingness to change varied from one country to another. The range in proportion of respondents "willing to make ... changes about how you live and work to help reduce the effects of global climate change" ranged from 93% for respondents from Italy to 55% for those from Japan.

The survey also assessed a number of other attitudes and beliefs related to climate change and climate action. These included how concerned respondents were that climate change would harm them personally; how well they think society is responding; and whether climate action is good for the economy. Again, responses were broken down by demographic group, yielding some additional insights:

Except for Sweden, most respondents were at least somewhat concerned that climate change will hurt them. This was generally more true for ideological left than right, for women than for men, and for young people than for older adults.

Respondents were generally favorable regarding how well their own society is dealing with climate change. Results were mixed as to whether the international community is doing a good job.

Overall, the survey offered encouraging news for those hoping to make inroads into climate change, noting that while it "reveals a growing sense of personal threat from climate change among many of the publics polled," it also indicates that "[p]ublic concern about climate change appears alongside a willingness to reduce its effects by taking personal steps."

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Read the original article on Ensia.

Western Sahara: Morocco - Young Democrats Denounce Repression of Peaceful Protests

28 DECEMBER 2021

Sahara Press Service (El Aaiun)

  

Rabat — The Progressive Democratic Youth Movement denounced on Monday the repression carried out by the Moroccan Makhzen regime against peaceful demonstrators, announcing its intention to engage in all forms of legal struggle to defend freedom of expression and the right to demonstrate.

The National Bureau of the movement said in a statement that its members were not spared by this repression. A member of the Central Committee was also heard by the judicial police about his speech at the end of a protest action and about content published in 2019.

In the same press release, the movement expresses its solidarity with the unemployed, students and pupils in their actions against the decisions of the Minister of Education and their legitimate fight for the right of everyone to a job without discriminatory conditions, stressing that "the repressive approach in dealing with the problems of the Moroccan people, in particular those of the youth, will only exacerbate the situation ".SPS

Morocco: Casablanca - Hassan II University Holds Patent for Robotic System for Scorpion Venom Extraction


28 DECEMBER 2021
Maghreb Arabe Presse (Rabat)

Casablanca — The Hassan II University of Casablanca holds a patent for a revolutionary robotic system for scorpion venom extraction and will present a book on this topic next January, says the university in a statement.

Having received a positive notice of issuance from the Moroccan Office of Industrial and Commercial Property (OMPIC), after its publication last November 30, this invention was made by a research team composed of Mouad Mkamel, PhD student, Professor Anass Kettani, thesis director, Professor Omar Tanane, thesis co-director, and Professor Rachid Saile, Director of the laboratory of Biology and Health of the Faculty of Sciences in Ben M'Sik.

Thanks to this invention, the collection of venom is done via a network of automated conveyors and a central unit to extract the venom by providing electric discharges adapted to each species of scorpion in a faster and risk-free process.

In fact, it consists of a pneumatic and vibratory system that facilitates the recovery of the venom droplets that fall into a filling station. This robotic system ensures a fully automatic process without manual intervention of the operator.

It should be noted that the commercialization of this robot interests several actors at the national and international level, in particular venom farmers and industrial establishments thanks to its promising pharmacological properties.

Scorpion venom is among the world's most expensive as it is used as active principle in the manufacture of drugs and cosmetic products, as well as the production of the anti-venom serum.

The Hassan II University of Casablanca has an excellent project that can be included in the Center for Innovation and Technology Transfer, says the statement.

In the same context, the members of the research team have published a book entitled "Guide to scorpions in Morocco" with a first mapping according to the degree of venom, and they will present it on January 6 at the Mohamed Sekkat University Library.

Read the original article on MAP.

Moroccan University Pioneers Robot Extraction of Scorpion Venom

EShare

The Hassan II University of Casablanca holds a patent for a revolutionary robotic system for scorpion venom extraction and will present a book on this topic in January 2022, the university said in a statement.

Thanks to this invention, the collection of venom is done via a network of automated conveyors and a central unit to extract the venom by providing electric discharges adapted to each species of scorpion in a faster and risk-free process.

Scorpion venom is among the world's most expensive as it is used as active principle in the manufacture of drugs and cosmetic products, as well as the production of the anti-venom serum.

VIDEO: The Scorpion-Milking Robot: Extracting the Poison that Cures - Rethink

• Morocco:  Local University Awarded Patent for Robotic Scorpion Venom Extraction

  MAP, 28 DECEMBER 2021

  The Hassan II University of Casablanca holds a patent for a revolutionary robotic system for scorpion venom extraction and will present a book on this topic next January, says the… Read more »

• Morocco:  Milking It - A New Robot to Extract Scorpion Venom

  EUREKALERT, 2 JULY 2017

  A new scorpion-milking robot designed to extract venom could replace the traditional manual method. Scorpion venom is used in medical applications such as immunosuppressants,… Read more »

Clinton & Charles Robertson/Flickr

Scorpion tail (file photo).

AN ENTIRE CONTINENT!

Africa: Covid-19 Deaths Approach 230,000 Across Continent

Pixabay
(file photo).

29 DECEMBER 2021

As of December 29, 2021, confirmed cases of Covid-19 from 55 African countries reached 9,548,141 

While over 185,502,904 vaccinations have been administered across the continent.

Reported deaths in Africa reached 227,650 and 8,532,090 people have recovered. South Africa has the most reported cases 3,424,534 and 90,854 people died. Other most-affected countries are Morocco ( 957,594 ), Tunisia ( 724,092 ), Ethiopia ( 405,745 ), Libya ( 386,878 ) Egypt ( 383,003 ) and Kenya ( 285,654 ).

For the latest totals, see the AllAfrica interactive map with per-country numbers. The numbers are compiled by the Center for Systems Science and Engineering (CSSE) at Johns Hopkins University (world map) using statistics from the World Health Organization and other international institutions as well as national and regional public health departments.

AllAfrica interactive map with per-country numbers.

 

Why isn’t Big Oil drilling more as gas prices surge? The answer is more Wall Street than White House

in General Energy News 28/12/2021

A popular trick at gas stations this fall is to slap a sticker featuring President Joe Biden pointing to the price per gallon and saying, “I did that.” But the real answer has more to with Wall Street than Pennsylvania Avenue.

The root cause of today’s high gas prices isn’t politics: It’s financial pressure on oil companies from a decade of cash-flow losses that have made them change financial tactics. Investment in new wells has dropped more than 60%, causing U.S. crude oil production to plummet by more than 3 million barrels a day, or nearly 25%, just as the Covid virus hit, and then fail to recover with the economy. For an oil-drilling sector that lost 90% of its stock value from 2012 through early last year, it hasn’t been the toughest call in the world.

Oil company chief executives and finance chiefs have faced years of rising demand from markets for more disciplined capital spending after a spree of development centered in West Texas and North Dakota produced an estimated $10.9 billion in negative free cash flow in 2014 alone — roughly speaking, operating profit minus capital spending. That persistent cash drain made blue-chip oil exploration stocks drop 90% from their peak and spurred demands that companies eschew fast growth in favor of steadier profits and stock-boosting finance moves like higher dividends, more share buybacks and reduced debt.

“For really the decade that ended in 2019 or 2020, there was an energy revolution and what did the energy sector get? They were the worst performers in the S&P 500,″ said Rob Thummel, portfolio manager at Tortoise Capital in Overland Park, Kansas.

A Dec. 6 report by progressive advocacy group Accountable.US says 16 of 24 large U.S. energy companies have raised their dividends this year (through third-quarter earnings reports), while 11 made special dividend payouts totaling more than $36.5 billion of what the group says were $174 billion in industrywide profits. Indeed, one new financial trick popular with energy companies is a “variable dividend” that allows high payments in good times and a small base payout when profits are lower, Third Bridge analyst Peter McNally said.

The group only found $8 billion in share buybacks, but Exxon Mobil and Chevron alone pledged to buy back as much as $20 billion of stock in the next two years when they disclosed third-quarter earnings. Chevron’s annual dividend is now 4.7% of the company’s value, more than triple the average of 1.3% paid by members of the Standard & Poor’s 500 Index.

“Strong operating cash flow enabled us to deliver on our financial priorities, including the resumption of share repurchases,” Chevron CFO Pierre Breber said on the company’s earnings call. “Cost efficiency and capital efficiency are essential to navigate commodity price cycles.”

“The equity holders said, ‘you’ve got to give me cash,’” according to McNally. “Now the companies are being run to generate free cash more than growth.”

Much discussion, including on social media platforms like Twitter, as to why crude oil and gasoline prices have spiked has focused on politics, with followers of former President Donald Trump claiming he kept gas prices low before Biden made them climb. But if there are political leaders to take the credit, or the blame, according to Tom Kloza, president of Oil Price Information Service, the people most responsible are not Americans, but Russian President Vladimir Putin and Saudi Arabia’s Crown Prince Mohammed Bin-Salman.

After oil prices tanked in 2014 and 2015, with the U.S. national average price for gasoline reaching an early-2016 low of $1.72 a gallon, the Organization of Petroleum Exporting Countries linked up with Russia to contain oil production, which had outstripped demand as U.S. production rose to 9 million barrels per day in 2016 from 5 million in 2008. Daily worldwide demand now is about 100 million barrels, according to a report last month by BP.

Production limits by the OPEC+ bloc let gas prices rise slightly during Trump’s pre-Covid presidency. Even as U.S. crude production kept rising, peaking at 13 million barrels in November 2019, gas prices, which averaged $2.37 a gallon at Trump’s inauguration, stayed between $2.24 and $2.92 until Covid sent them plunging to an April 2020 low of $1.77. That pushed U.S. oil drillers to finally cut production back to 9.8 million barrels per day by February 2021. Meanwhile, OPEC+ continued to hold its own production near-steady.

“You have a cartel that is traditionally as disciplined as Charlie Sheen’s drinking, and for the last year they’ve been as disciplined as Olympic gymnasts,” Kloza said.

Another reason is that investment in finding new wells peaked in 2014 and has dropped sharply since, making it hard for drillers to react quickly to an improving economy. According to S&P Capital IQ data, 27 major oil makers tripled capital spending between 2004 and 2014 to $294 billion, ad then cut it all the way back to $111 billion by last year. Once old wells were capped, new ones haven’t been available to fill the production gap quickly, explained CFRA Research analyst Stewart Glickman.

The pressure on oil companies to stop draining cash took many forms. The catastrophic drop in independent oil stocks forced a series of mergers of independent oil producers, and debt markets became more wary of oil companies, forcing producers to pay more attention to stockholders’ financial strategy demands.

“In effect, shareholders [had been] subsidizing the global price of oil,” says IHS Markit analyst Raoul LeBlanc.

The managements of bigger oil companies like Oxy, ConocoPhillips and others are more fiscally conservative than the independents they took over, LeBlanc said. Instead of maintaining debt loads of 2.5 times their annual earnings before deducting interest and non-cash depreciation and amortization charges, or EBITDA, some companies are targeting debt loads of 1 times EBITDA, he said.

Hanging over all of this is pressure from environmentally conscious investors to push carbon emissions lower, and the awareness that gasoline demand will likely erode as electric cars get more popular. “Companies don’t know where this is going and don’t trust the future too much,” LeBlanc added.

With crude still at $70 a barrel, even after a big dip caused by the emergence of the omicron variant of Covid-19, there would seem to be plenty of room to boost production with many areas of the U.S. flush with oil that would cost $50 or less to produce, according to IHS Markit data. And indeed, production has recovered to about 11.7 million barrels per day, helping to spur an 11-cent drop in gasoline prices in the last month.

But the most conspicuous part of the production jump has come from producers whose stock isn’t publicly traded, according to experts. Privately owned oil and gas exploration firms are moving faster because they don’t have the day-to-day shareholder pressure that has made CEOs and CFOs of bigger drilling companies change their tactics. One sign that the pressure is still working: The number of U.S. oil wells that have been drilled but are not completed, or ready to begin pumping, is still down more than 30% since 2018, according to government data.

The question is how long the restraint by publicly traded oil companies will last. Glickman is betting that it will be durable, with capital spending around $135 billion next year – less than half of 2014′s level. Kloza suspects the discipline will break down sooner, helping gas prices keep falling.

The worst combination for gas purchasers would be a quick recovery from omicron, followed by a surge in economic activity and continued low spending. That could pull gas prices toward $4 a gallon again if the economy is strong, according to Glickman, while McNally said consumers could benefit from a recent rise in gasoline inventories.

For shareholders, the outlook is for more dividend hikes to protect 2021 gains in energy stocks, followed by stock buybacks rather than plunging into new drilling — and, ultimately, a shift in investment toward the future that many companies have already telegraphed.

“They’ll start spending capex on decarbonization,” Thummel said. “For these companies to get investors to return, you have to show a solid cash-flow-making business. It’s kind of a prove-it story for the industry.”
Source: CNBC

Natural gas use may affect climate as much as coal does if methane leaks persist

in General Energy News 29/12/2021

Flames from a flaring pit near a well in the Bakken oil field in North Dakota. Satellites are gathering methane release data from the oil and gas industry.

As satellites deliver more accurate data on methane emissions from oil and gas production, scientists are getting a clearer picture of how natural gas stacks up against coal and whether it is truly the cleaner fuel.

Researchers are refining their understanding of the point at which methane leaks along the gas chain offset the climate benefits of switching from burning coal to natural gas to generate electricity.

“I think the main breakthrough is that we’re starting to be able to put numbers to it,” Yasjka Meijer, a scientist with the European Space Agency’s Copernicus program, said. Meijer has looked at comparisons of carbon dioxide emissions from coal plants versus life-cycle greenhouse gas emissions from the production and burning of natural gas.

Methane, the main ingredient in natural gas, carries more than 80 times the warming punch of carbon dioxide for the first 20 years, an impact that matters in climate planning scenarios at all levels, from utilities to nations.

Scientists caution that research into ongoing methane emissions is in the early stages, noting that uncertainty remains around which sources are responsible for the rapid buildup of methane in the atmosphere. Accidental blowouts from oil and gas fields and releases from coal mines are likely major contributors, however.

But over the last several years, readings by a growing fleet of satellites circling the Earth have also revealed that some normally functioning facilities are releasing significantly more of the climate-warming gas than what official greenhouse gas inventories suggest.

“We’re able to pinpoint it down to specific sources, and in some cases, we’ve seen the quantification,” Meijer said.

Satellites gather data

Meijer estimated that if 3% to 4% of natural gas produced at oil and gas wells leaks into the atmosphere, power produced by natural gas plants is on par with coal plants in terms of the overall climate impact. If upstream emissions exceed that percentage, natural gas would be more harmful than coal in the short term.

Another study by German researchers published in the journal Nature in June 2021 concluded that methane leakage below 4.9% would still give natural gas a leading edge over coal. A research paper published in the Proceedings of the National Academy of Sciences in 2012 put the threshold at 3.2%.

One 2020 study modeling satellite observations of methane releases across North America found that operators in the prolific Permian Basin released 3.7% of the gas they extracted in 2018 and 2019. Based on Meijer’s calculations, the life cycle of that natural gas — from the well to the power plant stack — would have roughly the same climate impact as coal would from mine to plant.

Another six-year study found that older production wells in the Uintah Basin in northeastern Utah emitted 6% to 8% of the gas they extracted, twice the break-even threshold in Meijer’s estimate. Research from other areas has estimated a leak rate closer to 2.3%.

The persistent problem of methane plumes from oil and gas production fields in the Permian Basin has also been documented by the Environmental Defense Fund, a group advocating for stricter pollution controls. Its latest aerial survey released Dec. 13 showed that 40% of 900-some production sites are continuously leaking methane into the atmosphere.

‘Possible’ undercounting

The EPA calculates industry’s methane emissions by measuring leaks from a limited number of sites and by collecting data the industry self-reports. From there the agency extrapolates national data. The method has been challenged by researchers and environmental groups in recent years.

A 2021 Harvard University study looking at satellite data found methane emissions from oil production to be 90% higher and natural gas production 50% higher than the national data that the U.S. Environmental Protection Agency has been reporting to the United Nations Framework Convention on Climate Change.

The Harvard study was the first to confirm on a national level what regional studies had shown before: The government’s official inventory of methane emissions from oil and gas production sites underestimates how much they actually release. The EPA, in an email, acknowledged as much.

“Given the variability of practices and technologies across oil and gas systems and the occurrence of episodic events,” EPA Deputy Press Secretary Tim Carroll said, “it is possible that the EPA’s estimates do not include all methane emissions from abnormal events.”

The methane problem is an irritant for power companies that continue to shift to natural gas as a cleaner alternative to coal, and the power industry has applauded proposed regulations to rein in leaks from wells, pipelines and processing plants.

“We are working to get the energy we provide as clean as we can as fast as we can while maintaining the reliability and affordability that our customers value,” Tom Kuhn, president of the Edison Electric Institute, said in November when the U.S. Environmental Protection Agency proposed new and stringent methane curbs on the oil and natural gas industry. “Federal regulations on methane emissions across the value chain are essential.”

A number of electric utilities are also zeroing in on their own natural gas infrastructure and supply chains. Xcel Energy Inc. announced in November that it would cut emissions from its natural gas service by 25% by 2030 from 2020 levels and only source gas from certified low-emission suppliers.

Sempra is developing upstream “preferred source” programs to procure more cleanly produced natural gas as well. Dominion Energy Inc. sold most of its natural gas transmission and storage facilities in 2020 and plans to sell the Questar Pipeline Co., part of the utility’s plan to cut methane emissions 65% by 2030 below 2010 levels.

The demand for responsibly sourced natural gas is not lost on the industry: At least two dozen North American operators have thus far pledged to certify their products.

And the One Future Coalition — a group of companies spanning the natural gas value chain and representing roughly 19% of the gas produced in the U.S. — set a 2020 methane intensity goal of 0.283%. The group said its methane intensity, or leak rate, for that year came in at 0.105%.

Scientists like Meijer say they hope the scrutiny of the natural gas supply chain will prompt policies that end methane leaks once and for all. Indeed, such efforts now have broad support from previously reluctant U.S. industry players.

The oil and gas industry’s main trade group is generally on board with methane reduction plans. In comments on the proposed methane emissions reduction policy, the American Petroleum Institute said methane reductions are a priority for the industry, albeit while urging the EPA to consider costs and implementation timelines.

Regulations could also help to tamp down criticism against the country’s booming production and exports of liquefied natural gas, the group suggested.

“We believe the direct regulation of methane can further bolster the environmental benefits of American natural gas,” Dustin Meyer, API’s vice president of natural gas markets, said in an emailed statement. “Exports of U.S. LNG could help drive down global emissions by replacing dirtier fuels and higher-emitting Russian natural gas to our allies abroad.”
Source: Platts

Labour demands stricter air pollution limits after child poverty link revealed

Research shows UK’s 50 most polluted areas also have highest rates of child poverty

Traffic on the A205 South Circular road in Lewisham, south London.

 Photograph: Dominic Lipinski/PA

Fiona Harvey

Environment correspondent
Tue 28 Dec 2021 

The Labour party has demanded stricter limits on air pollution after analysis showed the close correlation between children living in poverty and dirty air in the UK.

Five London boroughs rank worst for child poverty and worst for dirty air, according to government data collated by Labour, mapping areas of high poverty against statistics on air pollution. The analysis showed that the higher the rate of child poverty in a given area, the dirtier the air there was on average, with most of the 50 most polluted areas in the UK also showing the highest rates of child poverty.

Boroughs in Birmingham, Southampton, Portsmouth, Sandwell and Walsall also showed high correlations between child poverty and air pollution.

In the 11 local authorities that exceed the WHO’s recommended guideline limit of an annual mean concentration of 10 micrograms per cubic metre of air (µg/m3), an average of 39.5% of children are living in poverty – much higher than the national average of 31%.

Altogether, about 6.7 million children are living in areas of the UK where air pollution has breached legal limits, of whom about 2 million are also living in poverty, according to the research.

The announcement by the Labour party follows a meeting in December with Keir Starmer, Ed Miliband, and campaign group Choked Up, a group of young black and brown teenagers living in areas affected by air pollution, who are calling for a right to clean air.

Jim McMahon, the shadow secretary of state for environment, food and rural affairs, said: “Everyone should have the right to breathe clean, safe air, no matter where you live. If the pandemic has shown us anything, it’s that public health has to be at the very top of the political agenda, and that has to start with the air we breathe.”

He pointed to Labour proposals for a Clean Air Act, which would establish a legal right to breathe clean air, and legal requirements for air quality based on the advice of the World Health Organization. The government rejected amendments to the environment bill that would have set pollution limits in line with WHO advice.

He added: “The Conservative government refused to protect the health of British children, voting against tougher limits on pollution. Our children should be able to take clean, safe air for granted. Only a Clean Air Act is going to guarantee that.”

Under the new environment legislation, the government will set new pollution targets from late next year. The government was repeatedly found to be in breach of EU air pollution rules, when they applied to the UK, before Brexit.

A government spokesperson said: “Air pollution has reduced significantly since 2010 – at a national level, emissions of fine particulate matter have fallen by 11%, while emissions of nitrogen oxides are at their lowest levels since records began. But we know there is still more to do. To continue to drive forward tangible and long-lasting improvements to air quality, we are committed to setting stretching and ambitious targets on air quality through our Environment Act.”

Some of the most polluted cities, including London, Birmingham and Portsmouth, have introduced clean air zones in an effort to reduce air pollution, which mainly comes from diesel and petrol vehicles, agriculture and wood-burning stoves.