Brazilian union sues JBS over alleged exploitation of chicken workers

Story by By Ana Mano • Yesterday 

 The logo of Brazilian meatpacker JBS SA is seen in the unit in the city of Jundiai

SAO PAULO (Reuters) - A Brazilian labor union has accused JBS SA of submitting dozens of workers to "degrading conditions," according to a class action suit filed against the world's biggest meatpacker and its suppliers this week.

The union filed the claim on behalf of at least 76 people, including members of the Terena Indigenous community, who were employed as third-party chicken catchers for JBS and worked in conditions "analogous to slavery," the suit alleges.

Their shifts lasted up to 14 hours including the journey to and from the hen houses, said union leader Sergio Bolzan in a telephone interview. The work consisted of packing live chickens in boxes for transportation, some of which weighed as much as 24 kilograms (53 pounds), he added.

JBS is a primary defendant and four outsourcing companies are co-defendants in the suit, documents show.

In a statement, the company said it had not yet been notified of the suit and would investigate the allegations.

The suit claims workers did not get enough rest time, were not fully paid upon dismissal and did not get extra pay for performing hazardous work.

JBS says it maintains "strict protocols and controls in its operations to ensure that all its suppliers comply with their legal obligations and the well-being of employees."

These obligations include providing adequate protective gear, safe working conditions and reliable means of transportation.

It also says it regularly conducts technical visits to supervise the work of catchers and to verify that everything is in order with suppliers.

Bolzan said evidence of alleged exploitation surfaced in April when he paid a surprise visit to where some catchers were being housed to document the conditions.

The union submitted that evidence on Tuesday to a court in Sidrolandia, in the state of Mato Grosso do Sul, where Bolzan said JBS employs 5,000 people directly and indirectly.

The union is seeking 400,000 reais ($82,000) in damages per worker and is pushing for prosecutors to formally join the suit as plaintiffs, documents show.

Bolzan shared his concerns with labor prosecutors, who confirmed preliminary investigations into the matter, including whether catchers were employed "off the books."

($1 = 4.8831 reais)

(Reporting by Ana Mano; Editing by Brad Haynes and Mark Potter)

CRYPTO CRIMINAL CAPITALI$M THREAT
Binance could lay off thousands as company buckles down for DOJ probe, source says

Story by Rohan Goswami • Yesterday 


Binance plans to lay off between 1,500 and 3,000 employees through the year in response to an ongoing Justice Department probe, a current employee familiar with the company's plans told CNBC. A company spokesperson disputed the higher number.

The company has already laid off 1,000, the Wall Street Journal reported earlier on Friday, and this number is part of the total, CNBC's source said.

Binance has been charged by both the SEC and CFTC with various securities and commodities violations, while founder Changpeng Zhao has downplayed concerns.


Changpeng Zhao, billionaire and chief executive officer of Binance Holdings Ltd., speaks during a session at the Web Summit in Lisbon, Portugal, on Wednesday, Nov. 2, 2022.© Provided by CNBC

Crypto exchange Binance is laying off employees in response to an ongoing Justice Department probe that is likely to end with a consent decree or settlement, according to a current employee who is familiar with the company's plans.

The cuts will eliminate 1,500 to 3,000 of Binance's global workforce, this person told CNBC, and will take place through the end of the year. The Wall Street Journal previously reported on Friday that 1,000 employees have already been laid off, and those layoffs are part of the total planned, the source told CNBC. This person asked to remain anonymous because they are not authorized to talk to the press about internal matters.

The Justice Department probe will likely reshape the company fundamentally, the employee told CNBC. If Binance opts to settle the DOJ allegations, it could result in a multi-billion dollar payment. Reuters has reported that federal prosecutors have been weighing anti-money laundering violations and sanctions evasion charges, allegations that would make it difficult for Binance or founder Changpeng Zhao to continue to get licenses to operate.

A Binance spokesperson disputed that the cuts would impact 3,000 employees, saying that the high-end number was "just not right."

The spokesperson said, "As we prepare for the next major bull cycle, it has become clear that we need to focus on talent density across the organization to ensure we remain nimble and dynamic. This is not a case of rightsizing, but rather, re-evaluating whether we have the right talent and expertise in critical roles."

Binance has faced significant regulatory challenges over the last few months, culminating in lawsuits from the Securities and Exchange Commission and the Commodity Futures Trading Commission over alleged mishandling of customer assets and the operation of an illegal, unregistered exchange in the U.S.

Binance founder Changpeng Zhao has repeatedly dismissed concerns about the future of the exchange, even after being personally named in the SEC's lawsuit. Binance itself has suffered significantly since the lawsuits from U.S. regulators, with exchange outflows running into the hundreds of millions. The company has also seen a number of key executive departures.

Critical moment for Thai democracy as parliament fails to elect new prime minister

Story by Helen Regan • CNN - Thursday

The sole nominee to be the next prime minister of Thailand failed to secure enough parliamentary votes to form a government Thursday, a set back for the future of democracy in the country following nearly a decade of turbulent military-backed rule.

The vote was seen as a critical moment for Thailand, in which members of the bicameral National Assembly declared their pick for prime minister, and was expected to reveal whether the ruling establishment would accept the choice of the people who overwhelmingly voted for progressive, opposition parties in a May election.

In a shock election result, newcomer party Move Forward won the most seats and the largest share of the popular vote, capitalizing on years of rising anger over the kingdom’s governance.

Move Forward’s leader Pita Limjaroenrat received just 324 votes out of the 376 needed for a majority in both the upper and lower houses. The House Speaker will now call for another round of voting scheduled for a later date.

The party had pledged deep structural reforms to how the Southeast Asian country of more than 70 million people is run: changes to the military, the economy, the decentralization of power and even reforms to the previously untouchable monarchy.

Following the vote, Pita told reporters outside parliament that he accepts the result “but won’t give up.”

“We will not change our policies, we have to keep our promise given to the people,” he said, in reference to his party’s radical campaign pledge to amend Thailand’s strict lese majeste law despite the taboo surrounding any discussion of the royal family in Thailand.

Monarchy looms over the vote

Section 112 of the Criminal Code criminalizes criticism of the King, Queen or heir-apparent and lese majeste convictions carry long prison terms of up to 15 years. Currently, anyone can bring a case, even if they aren’t connected to the alleged crime.

The subject of royal reform is so sensitive that several senators and conservative parties ruled out voting for Pita for this reason.

“He is not suitable to become a prime minister of Thailand. First, the Move Forward Party has a policy amending and abolishing Section 112, secondly, after the Election Commission has forwarded the case to the court to look into his eligibility, this has proved at a certain level that he is not qualified,” Senator Seri Suwannapanon told CNN before the vote.

“The tendency of the senators, they will protect Section 112 and won’t vote for an ineligible person.”

Outside parliament Thursday morning, Senator Kittisak Rattanawaraha said he wouldn’t vote for Pita, “because they are behind attempts to meddle with independent agencies, military, police and Section 112.”

But Move Forward’s policies won huge support among the country’s youth who have long felt disaffected by years of authoritarian politics and frustrated with the stuttering economy and tough job market.

The May election, which saw a record turnout, also delivered a powerful rebuke to the military-backed establishment that has ruled Thailand since 2014, when then-army chief Prayut Chan-o-cha seized power in a coup.

Thailand has witnessed a dozen successful coups since 1932, including two in the past 17 years.

Prayut was elected prime minister in 2019, a win largely credited to a military-drafted constitution that entrenched the military’s power in politics.

On Tuesday, Prayut announced his retirement, adding he would remain as prime minister until the new government is formed.

Regardless, he was not expected to gain enough support in the lower house to win another term as prime minister, as his party only won 36 seats in the May election.

Roadblocks to the progressive movement

Pita’s supporters say a victory for the 42-year-old Harvard alumni in Thursday’s parliamentary vote would usher in a progressive and democratic new era for Thai politics.

Despite a clear win at the polls for Pita, it remains far from certain who will be Thailand’s next leader.

In Thailand, a party or coalition needs to win a majority of 376 seats in both lower and upper houses of parliament – 750 seats – to elect a prime minister and form a government.

Move Forward’s majority was not big enough to form a government outright, even with a coalition of seven other opposition parties.

To secure victory, the coalition will need support from the unelected 250-member Senate – which was appointed by the military under a post-coup constitution and has previously voted for a pro-military candidate.

That proved to be major roadblock in Pita’s path to prime minister.

Thailand’s powerful conservative establishment – a nexus of the military, monarchy and influential elites – has a history of blocking fundamental changes to the status quo.

Move Forward’s proposed structural changes target the heart of this establishment, with priorities to “demilitarize, demonopolize and decentralize” Thailand, Pita recently told CNN.

That includes getting rid of mandatory conscription, reducing the military budget, making the military more transparent and accountable, and reducing the number of generals.

In another major setback on the eve of the vote, Thailand’s Constitutional Court Wednesday accepted two complaints against the Move Forward Party and its leader Pita.

The case is set to be reviewed next week and if it moves to trial, Pita will be suspended from political duty. That outcome will likely add fuel to the fire of his young support base, with the potential for mass street protests.

One of the complaints, forwarded to the court by the Election Commission, accuses Pita of violating election law for allegedly holding shares in a media company and requested he be disqualified. Pita has denied he broke election rules and a statement from Move Forward accused the Election Commission of rushing the case to court.

In recent weeks, Pita has been rallying supporters across the country, with thousands of people gathering in Bangkok on Sunday, despite heavy rain.

He has previously been confident of securing enough parliamentary votes, but on Sunday warned senators not to vote against the will of the people.

“The voting is not for Pita, not for MFP, but it is for Thailand to move forward into normalcy of democratic system, just like any democratic countries in this world,” he said on Twitter.

If Pita is not elected on Thursday, the Speaker of the House has announced two more rounds of voting – on July 19 and 20 – for a result to be declared.

After that, coalitions may start to crumble and a political deadlock could derail the progressive movement’s election success, potentially sparking protests.

Move Forward encouraged citizens to show their support at parliament on Thursday and a prominent Thai protest leader Wednesday called for demonstrations if the senators refused to vote in line with the election results.

DEMOVICTION

B.C. family evicted for demolition but found new tenants were moved in

By Amy Judd & Kylie Stanton Global News
Posted July 14, 2023 

WATCH: A Vancouver Island woman says she was force out of her rental home, which was later rented to someone else, she says as a result of municipal red tape. Kylie Stanton reports.

A Vancouver Island woman says she was forced out of her home and left with no recourse, but now she is questioning what happened.

Chelsea Langlois told Global News she had to move her family of four out of their rental home in Langford, B.C., when she was notified it would be torn down for development.

“While we were struggling, looking for a place to live, we thought we would reach out to the developer and just ask them since the rezoning hasn’t (yet) gone through, could we stay just until those permits go through?” she said

“At that time he said, ‘No, we have a permit to demolish. That’s all we need to evict you. And our plan is to demolish and start prepping the land in preparation for the rezoning permit’.”

Langlois said it got to the point where they thought they would have to leave the area, live in a van or even separate the family.

She eventually managed to find another place to live, albeit at more than $1,000 more per month. And that wasn’t easy.

“My experience with that is that there are hundreds if not thousands of applicants per rental,” Langlois said.

“It really is about presenting yourself in a way that the landlord would see you as a benefit to tenant their place. So very much an interview-type process. I’m very lucky that I’m a registered nurse and a college instructor, so that bodes well when I interview to rent a place. However, not everybody has that kind of criteria to back them up, which is frustrating.

“But we went to the lengths of having the prospective landlords come to our current rental to see how we take care of our home in order to demonstrate that we would.”

2:10 Vancouver housing advocates urge permanent solutions to modular units

Then, in another blow, about six months later, their former neighbours told them there was someone else living in their former rental home.

“So we went up and had a look for ourselves and it did appear to be occupied,” Langlois said. “So not only had it not been demolished, but it’s still standing and it has new tenants living in it.”

She said the whole experience has been extremely frustrating.

“The stress we went through trying to find a new place, the increased expenses of having to move, and knowing that that home is still standing and we could still be living there could have saved us not only money but a lot of stress and angst as well,” she added.

In a statement, the developer blames the City of Langford, saying it was given a demolition permit but the city then changed it to require that the house be moved instead.

The developer said it had to re-rent the house while dealing with the new requirements because it was losing money with the house empty.

The City of Langford told Global News it cannot comment on the file.

“I did initially believe it was on the developer, but through arbitration found out that the permit was solely issued to evict us,” Langlois said.

“And I was just shocked by that, that the city would issue a permit for the sole purpose of evicting tenants in a global pandemic during a housing crisis.”

She added she would like to see the City of Langford take accountability for its actions in issuing permits to demolish with no intent to demolish the property for the sole purpose of evicting tenants.

“I would like to see the city really look at how they’re going to promote housing for individuals and how they’re going to tackle our housing crisis rather than contributing to it,” she said.

4:22  Rethinking how to deal with the housing crisis

Manitoba liquor workers to go on strike with planned walkout

Story by Talha Hashmani • Yesterday 

The union representing over a thousand workers with Manitoba Liquor and Lotteries issued a strike notice that would come in effect on July 19.© Google Maps

Union workers with Manitoba Liquor and Lotteries have issued a strike notice, with plans to hold a one-day, provincewide walkout on July 19.

Represented by the Manitoba Government and General Employees' Union, approximately 1,400 workers will be part of the strike action beginning at 7 a.m. next Wednesday. It also includes workers at the Liquor Distribution Centre and those in supporting business operations, which includes information technology, purchasing and administration.

"This is absolutely not the position our members wanted to be in, but frankly we were forced here," said union president Kyle Ross.

In a press release on July 14, the union said workers had been working under an expired contract since March 2022. According to Ross, an offer from the employer — which would provide a two per cent increase annually for four years — wasn't enough.

"It certainly wouldn't help retain the workers who are leaving for better pay at places like Walmart and Sobey's - and it falls far short of the pay increases that the premier and her cabinet are taking," said Ross. "A strike is and always will be the last resort."

Union members are expected to refuse all overtime following the July 19 walkout. Further strike actions could be announced if a "fair deal" isn't reached.

Global News has reached out to Manitoba Liquor and Lotteries for comment.

Video: Manitoba government reintroduces bill to ease liquor rules

B.C. wants 1,000 more international firefighters to join wildfire battle

Story by The Canadian Press •


British Columbia is putting out a call for national and international help to fight wildfires that are blanketing communities in thick smoke, as some residents watch flames approach their homes.

The province had requested 1,000 additional foreign firefighters to join 160 from Mexico and the United States already in B.C., said Bowinn Ma, minister of emergency management and climate readiness.

Ma also formally requested more federal resources from her counterpart in Ottawa, Bill Blair, to help fight the 350 or so fires burning across B.C.

She said at a briefing about drought conditions in B.C. on Thursday that an "incident management team" from Australia is arriving on Saturday.

An evacuation order was issued Thursday by Lhoosk’uz Dené Nation for areas of the Lhoosk’uz community. The order covers an area from its borders with the districts of Bulkey Nechako and Fraser-Fort George, extending south to near the Kluskus Lakes and Tsacha Lake regions.

Firefighters from South Korea, France, South Africa and the Dominican Republic have also been fighting fires in Canada, during what is shaping up as a record-breaking fire season.

Blair, federal minister of emergency preparedness, had earlier said he was expecting a "fairly substantive" request for help from B.C. as wildfires worsen.

Blair told The Canadian Press the government operations centre has been in discussions with the province for the last several days, and Ottawa is ready to deploy resources.

"The fire season now is obviously sparking up pretty seriously out there and they have sent us an indication of some additional resources that they will require," he said in an interview Thursday.

"For the last 48 hours we've been working with Canadian Armed Forces, Parks Canada, Natural Resources Canada, and people from the Canadian Coast Guard," said Blair. "There's a lot of different federal departments all mobilizing their response to the requirements of British Columbia."

He said the federal help could include military assistance for airlift evacuations from remote locations, as well as troops trained as firefighters who can "mop up" to keep blazes from reigniting.

"If there are communities that become isolated and need to be evacuated, then Canadian Armed Forces provides those resources," Blair said.

The Canadian Coast Guard is also mobilizing support for affected coastal communities, and Natural Resources Canada staff with forest management expertise are also preparing to help, he said.

Blair added there are a number of national parks in B.C., so Parks Canada is ready to aid the province with park firefighters and forest management experts.

Related video: Peacock Creek Wildfire Expands In BC, Canada, Evacuation Order Issued (StringersHub)   Duration 0:35   View on Watch

Dailymotion  Blaze rages in British Columbia as Canadian wildfires continue to burn

0:18

cbc.caIt's  hard to think of a more dramatic example of sacrifice,' B.C. premier says after firefighter's death

1:09

The Weather Network  Wildfire smoke moves into southern British Columbia and Alberta

1:11

Blair said B.C. is one of the better-equipped provinces to handle fires because it is often among the hardest hit, but any extra help needed is being made available.

B.C. would welcome all additional firefighters and equipment as hot weather and afternoon lightning storms keep fire conditions extreme and strain resources, said BC Wildfire Service spokesman Cliff Chapman.

"It is very, very challenging across Canada and across the globe right now to secure additional firefighting capacity," he said. "This is a very dangerous job. With the conditions we are in it makes it all that much more dangerous for our staff who are working 14-, 16-, 20-hour days trying to do everything to move these fires away from critical impacts."

He said in northwest B.C., 51,000 lightning strikes have been recorded over the past seven days and about 160 wildfires are burning. Crews were facing difficult conditions in which daily afternoon lightning storms were starting new fires.

Fire officials have also received reports from residents living in Burns Lake and Houston who say they can see flames from their backyards, he said.

Chapman said more than 2,000 B.C. firefighters are currently battling the flames, but many need rest and the arrival of international help will provide that opportunity.

"We are not short 1,000 firefighters in B.C. at this time," he said. "We are planning ahead, obviously looking into next week, but even looking into the next number of weeks to secure resources so we can rest some of our staff."

Ma's request for more international help was lodged through the Canadian Interagency Forest Fire Centre, which co-ordinates firefighting resources across the country.

Premier David Eby said earlier this week the province was looking for more firefighting support, particularly air equipment, in its battle against wildfires.

He said forecasts suggest B.C. and Canada could be facing the worst fire season in 100 years.

Eby expressed gratitude for the help provided by the firefighters from Mexico and the U.S. who are on the frontlines with provincial crews.

Rural and northern B.C. communities have felt the brunt of this year's wildfire season, but on Wednesday, smoke from a blaze on the mountains overlooking Vancouver could be seen across the city, as helicopters dropped water to extinguish the flames.

Brant Arnold-Smith, director of the Metro Vancouver regional district's emergency operations centre, said at a media briefing Thursday that crews were still tackling hot spots, saying the fire in North Vancouver's Seymour conservation area is deep underground.

"We are quite confident that it will not spread anymore," he said.

Arnold-Smith said their initial theory suggested it was caused by lightning, but they’re not ruling out that it was human caused until an investigation is done.

But he said the fire was in a “rugged, secluded area” where people rarely trek, taking an hour and a half for crews to reach the scene through thick brush.

“This event serves as an important reminder as to how dry our region is,” he said. “It's been almost a month of just no precipitation in the region, so our green spaces are very dry and very susceptible to any sort of ignition sources that could cause a wildfire."

There are more than 350 wildfires burning in all corners of the province, and the BC Wildfire Service warns another blast of heat in many areas could add more burdens on already overstretched crews.

The wildfire service says a week-old, 300-square-kilometre blaze close to Highway 37 just south of the Yukon boundary has been calm, but it and similar fires across northern B.C. could flare up during the next several days of expected hot weather.

— With files from Darryl Greer

This report by The Canadian Press was first published July 13, 2023.

Dirk Meissner and Mia Rabson, The Canadian Press

RIP

Firefighter, 19, killed while battling wildfire near Revelstoke, B.C.

CBC News: The National

Jul 14, 2023

A 19-year-old firefighter was killed by a falling tree while her crew was battling a wildfire near Revelstoke in B.C.'s central interior. She is being remembered as a kind, selfless woman committed to protecting the province and those who call it home.

 

BC wildfires: 19-year-old firefighter struck and killed by fallen tree while clearing brush

Global News   Jul 14, 2023 

A 19-year-old firefighter struck and killed by a fallen tree in a remote area outside of Revelstoke, B.C., on Thursday has now been identified. Global News has learned the firefighter was Devyn Gale.

B.C.’s Premier, David Eby, confirmed on Friday that her family has been notified and they are asking for privacy at this time.

RCMP said the wildland firefighter was working alongside a team clearing brush where a small fire had started. Gale became separated from her fellow firefighters and was then discovered caught under a fallen tree. 

Global's Troy Charles has more on how it happened and the tributes now pouring in. 

 

Firefighter dies battling B.C. wildfire

CTV Vancouver

A 19-year-old firefighter who died on the job is being remembered as a young woman who took pride in her work and had a promising future.

19-year-old identified as B.C wildfire fighter who died on the job

CityNews

  Jul 14, 2023

The mayor of Revelstoke is calling the death of a B.C. wildfire fighter absolutely devastating. Kier Junos reports the 19-year-old was killed by a falling tree while tackling a fire.

 

New government rules spell end for Nova Scotia's distinctive shark-fishing derbies

Story by The Canadian Press • 12h ago

New government rules spell end for Nova Scotia's distinctive shark-fishing derbies© Provided by The Canadian Press

Nova Scotia shark derbies, which for 30 years offered anglers a chance to land one of the ocean's top predators, have been called off after authorities determined they no longer served a scientific purpose.

Fisheries and Oceans Canada had authorized the shark-fishing tournaments by issuing scientific licences so the animals could be studied after they were caught. But the department has informed derby organizers that its research program no longer needs derby-caught specimens.

Organizers of the Yarmouth Shark Scramble in southwestern Nova Scotia, the Petit de Grat Shark Derby in Cape Breton and the Lockeport Sea Derby in Shelburne County were given three options if they want to continue: follow a catch and release model in which the sharks don't leave the water; use all sharks caught for human consumption; or find another organization to support research on the sharks caught.

"The decision to proceed or not with any of these options — and the request for any applicable required licence — rests with shark tournament organizers," the department said in an emailed statement. The department declined to make anyone available for an in interview.

Bob Gavel, organizer of the Yarmouth Shark Scramble, said he was extremely disappointed by the government directive. He said it is impossible for any of the province's shark derbies to meet the conditions proposed by the Fisheries Department.

For conservation reasons, tournament participants have been allowed to catch only blue sharks since 2018, and Gavel said there is not enough demand for the meat to consume everything caught. He said trying to tag and release sharks would be too dangerous aboard the crowded fishing boats. And no other organizations are interested in the sharks for research, he said.

Whale freed from Nova Scotia lobster gear | Watch (msn.com)

The August tournaments were unique in Canada. "We have people from all over Canada and the United States who have come to the tournament, and as far away as Australia," Gavel said. "We have thousands of spectators every year. It generated a lot of revenue for our communities with regards to restaurants, hotels, fuel — people buying souvenirs, and just having the people in our town created quite an economic boost for us."

The Lockeport Sea Derby said on its Facebook page there will be no shark fishing this year because of the new rules, and the Petit de Grat Shark Derby said the tournament wouldn't be held this year because of the new licence requirements.

Gavel called Fisheries and Oceans Canada's stipulations for the tournaments unfair, noting that the blue shark population was not affected by the derbies.

A report from the department published this year on shark tournament landings found that the derbies "accounted for three per cent of blue sharks killed annually in Canada, having a negligible effect on the overall population." Department officials have said in the past that most of the blue sharks killed in Canada are hooked by fishing boats using long lines to catch swordfish and tuna.

Gavel started the Yarmouth tournament in 1998 and saw it adapt over the years. Four species of shark could be landed when the tournament began: shortfin mako, porbeagle, blue shark and common thresher.

In 2004, the Committee on the Status of Endangered Wildlife in Canada assessed the porbeagle as endangered, and two years later the tournament organizing committees voluntarily excluded the species from landings to promote conservation, the DFO report noted. Similar conservation concerns for shortfin mako and common thresher led to licence conditions being changed in 2018 to allow blue shark landings only.

The report said organizers also imposed additional restrictions to promote conservation, including increasing the minimum size of shark landed to nine feet in length and allowing one shark per participant and three per boat.

Gavel said the tournament was mostly a way for fishers to spend time with their families on the water. "We're a little fishing community and the fishermen, all they do is work at their jobs," he said. "But this was a way for them to take their families and so on to go out and have some fun."

Data showed that since the first tournaments began in 1993, a total of 4,266 sharks were landed around Nova Scotia, including 4,193 blue sharks, 52 shortfin mako sharks, 15 porbeagles and six common threshers.

Between 1993 and 2005, the report said landings were made up of immature males and females, as well as mature males. Females of reproductive age were not caught "due to their absence from Canadian waters," the report said.

Gavel remembers the first time he reeled in a shark.

"Oh, it's quite the adrenalin rush," he said. "To catch something that size that takes you sometimes three or four hours to land it. To fish a shark that weighs anywhere from 200 to over 300 to 400 pounds and land it. It's that kind of adrenalin. It's quite tiring. And it's a lot of fun."

This report by The Canadian Press was first published July 14, 2023.

Hina Alam, The Canadian Press

Exxon to buy Denbury for $4.9 billion in carbon storage bet

Story by By Sabrina Valle and Arunima Kumar • Yesterday 

Signage is seen at an Exxon gas station in Brooklyn, New York City

HOUSTON (Reuters) -Exxon Mobil Corp on Thursday agreed to buy Denbury Inc for $4.9 billion to accelerate its energy transition business with an established carbon dioxide (CO2) sequestration operation.

The acquisition, which sent both companies' shares lower, gives Exxon ready-made CO2 transportation and highlights its bets on making carbon capture a profitable business. U.S. tax credits for reducing planet-warming gases have set off a race to build carbon capture sites.

But wide-scale adoption of carbon sequestration remains uncertain because of the costs and technical challenges, which were reflected in the deal price. Exxon's all-stock offer valued Denbury at a 1.9% premium to its Wednesday closing stock price.

Denbury CEO Chris Kendall said in a statement that "significant capital and years of work" are required to fully develop its CO2 business, making deep-pocketed Exxon "the ideal partner with extensive resources and capabilities."

Plano, Texas-based Denbury is an oil and gas producer that owns and operates a 1,300 mile CO2 pipeline network in the U.S., including pipelines that span the Gulf Coast's petrochemical industry heartland, where Exxon has sought to build a carbon hub.

Jefferies analyst Sam Burwell estimated Exxon was paying $1.9 billion for Denbury's carbon capture infrastructure and $3 billion for its oil production.

"The modest 2% takeout premium suggests to us that Denbury realized the difficulty in competing with Exxon to win CO2 offtake," he wrote in a note.

Exxon shares dropped 1.9% to $104.46 in afternoon trading. Denbury shares slipped to $86.62. Its shareholders stand to receive 0.84 of an Exxon share for each Denbury share.

Denbury, which gets most of its revenue from enhanced oil recovery, or pumping CO2 into wells to force out more oil, exited bankruptcy in September 2020 and its stock has jumped nearly fivefold since as carbon sequestration was embraced by U.S. companies to cut greenhouse gas emission.

Why Exxon Mobil Is Buying Denbury for $4.9 Billion | Watch (msn.com)

Its pipeline network and sequestration sites will give Exxon a way to quickly provide carbon removal services to carbon reduction customers such as Linde AG and CF Industries. Exxon's own offshore storage sites are years away.

"It's a very logical, very straightforward way for Exxon to build on its existing business strength in carbon management technology," said Raymond James analyst Pavel Molchanov, but adding the deal is "very small for Exxon, relative to its size."

LOW CARBON BUSINESS

Carbon sequestration has been embraced by oil companies including Chevron , Occidental Petroleum and Talos Energy, which aim to capture and store CO2 underground.

Exxon two years ago set up its Low Carbon Solutions business with the aim of generating hundreds of billions of dollars in revenue from cutting its and customers' emissions. It has said the business, which includes carbon storage, hydrogen and biofuels, could outperform its traditional oil and gas operations as soon as a decade from now.

Last year, Exxon struck its first commercial carbon storage deal with top ammonia maker CF Industries. In January, Exxon said it plans to start operations at its large-scale hydrogen plant in Texas in 2027 or 2028. Hydrogen is a potential clean fuel for utilities.

The Denbury deal "reflects our determination to profitably grow our low carbon solutions business," Exxon CEO Darren Woods said.

(Reporting by Sabrina Valle and Arathy Somasekhar in Houston, Arunima Kumar in Bengaluru; Editing by Savio D'Souza, Shilpi Majumdar and Conor Humphries)

Why Exxon Mobil is spending $4.9 billion on a company that pumps carbon dioxide back into the earth

Story by cboudreau@insider.com (Catherine Boudreau) • 8h ago


Exxon is buying Denbury, a company that could help the oil giant's move into the business of capturing planet-warming carbon dioxide. REUTERS/Jessica Rinaldi© REUTERS/Jessica Rinaldi
Exxon Mobil this week announced plans to acquire oil producer Denbury.
Denbury also has a business of capturing carbon-dioxide emissions.
That's a business Exxon, the biggest oil company in the US, is looking to expand.

Exxon Mobil is trying to position itself for a low-carbon world by buying a company that stores planet-warming emissions.

The largest US oil major said Thursday it would acquire Denbury, which has the largest network of carbon dioxide pipelines in the country, for $4.9 billion. Denbury is also in the business of what's called enhanced oil recovery, which involves using carbon dioxide to collect more oil from wells.

Exxon's move follows the passage last year of the Inflation Reduction Act, which includes tax breaks for companies that capture and store carbon dioxide — injecting new life into the nascent and controversial industry.

The IRA is set to pump almost $370 billion over a decade into a range of efforts to help fight the climate crisis and put the US on a path to slash carbon emissions by 40% by 2030, a goal set by President Joe Biden.

What is carbon capture, utilization, and storage?

Carbon capture, utilization, and storage, or CCUS, refers to technologies that trap carbon-dioxide emissions, often from large industrial sources like power plants or factories.

Most of the carbon dioxide being captured today is used to pump more oil from wells, a process known as enhanced oil recovery, or to make fertilizer. The gas can also be piped underground into geological formations, including oil-and-gas reservoirs or salty aquifers, according to the International Energy Agency.

Why is Exxon buying Denbury?

Denbury gets most of its revenue from enhanced oil recovery, a technique that Exxon has a long record of using. But for Exxon, the acquisition is part of a larger strategy to stay profitable as countries try to meet global climate targets.

THEY USE THE CO2 FOR FRACKING OLD WELLS HENCE; EOR

Why Exxon Mobil Is Buying Denbury for $4.9 Billion | Watch (msn.com)

Rather than diversifying into producing solar and wind power, Exxon is betting that it can keep pumping oil and gas so long as it caps emissions flowing out of smokestacks at power plants and factories.

Some of that captured CO2 could be put to use by other industries, including makers of fertilizers and other chemicals. Most of the captured carbon dioxide will likely be stored underground, however.

The IEA estimates that if the world achieves net-zero emissions by 2050, less than 5% of the carbon captured would be used, while the rest would need to be stored.

Transporting CO2 requires pipelines, and Denbury has 1,300 miles of carbon dioxide pipelines; much of its network spans Louisiana, Texas, and Mississippi. Denbury also already has 10 sites where it stores carbon.

The purchase would help Exxon go deeper into this business.

"If we're able to acquire a really significant piece of existing infrastructure, that allows us to move much more quickly than if we were to try and build and replicate that infrastructure ourselves," Dan Ammann, president of Exxon's Low Carbon Solutions business, told Bloomberg on Thursday.

The deal with Denbury is one of several carbon-capture and storage deals Exxon has made in less than a year, including a plan to capture, transport, and store carbon emissions from a steelmaking plant in Louisiana by 2026.

What is the state of CCUS today?

CCUS is still a nascent industry with a troubled track record, but there's been a lot of momentum in recent years.

Around 40 commercial sites are operating around the world, with another 50 capture facilities expected to come online by 2030, according to the IEA.

For its part, Exxon has carbon-capture and storage facilities in the US, Qatar, and Australia, and at least 10 more have been announced around the world.

Is carbon capture a solution to the climate crisis?

Oil companies certainly think so, though the technology is still a major flashpoint. Many climate advocates argue that CCUS is too expensive to develop and the money is better spent on technology already proven to slash emissions at scale: solar panels, wind turbines, and electric vehicles, to name a few.

Even though the renewable energy transition is speeding up, the pace isn't fast enough yet. A United Nations panel of climate scientists earlier this year warned that the world is still way off track in achieving net-zero emissions by 2050 — a key target to avoid global temperatures from rising above catastrophic levels.

Without a more rapid shift away from fossil fuels, technology like carbon-capture and storage is critical, the scientists said.

Still, there's no guarantee that CCUS will scale up in time, either. The IEA said that even if all the planned sites come online by 2030, the entire industry combined would only be capturing about one-third of the carbon dioxide needed to hit net-zero emissions by midcentury.

UK Government gives green light for Stonehenge road tunnel

Story by Neil Lancefield • 

A303 road plans© PA Archive

Plans to construct a road tunnel near Stonehenge have been approved, the Department for Transport (DfT) said.

Transport Secretary Mark Harper has granted a Development Consent Order (DCO) for the project on the A303 in Wiltshire.

A DCO previously issued for the £1.7 billion National Highways scheme was quashed by the High Court in July 2021 amid concern about the environmental impact on the Unesco World Heritage Site.

The plans involve overhauling eight miles of the A303, including digging a two-mile tunnel.

Then-transport secretary Grant Shapps gave the go-ahead to the project in November 2020 despite advice from Planning Inspectorate officials it would cause “permanent, irreversible harm” to the area.

The Save Stonehenge World Heritage Site alliance successfully challenged his decision in the High Court.

In a 64-page letter published on the Planning Inspectorate website granting fresh approval, the DfT said Mr Harper is “satisfied” that the project’s “harm on spatial, visual relations and settings is less than substantial and should be weighed against the public benefits”.

The A303 is a congestion hotspot, with drivers heading to and from the South West during peak holiday periods often stuck in long queues.

National Highways chief executive Nick Harris said: “The A303 Stonehenge scheme is part of the biggest investment in our road network for a generation, and I’m really pleased the project has been given the green light by the Secretary of State for Transport – a decision which will enable us to progress this transformational scheme and deliver the planned benefits.

“The decision follows a lot of work on a comprehensive year-long process to reassess our Development Consent Order, looking in detail at possible alternatives, also including cumulative carbon and heritage issues.

“It means we’re now a step closer to solving the longstanding issues of congestion and delays on the existing A303, improving journeys for all our customers and bringing much-needed relief to local communities.

“The investment, along with other improvements along the A303, will help to boost the South West economy, improve journey reliability, remove the sight and sound of traffic from this very busy road and return one of our most important World Heritage Sites to something like its original setting.”

Steve Gooding, director of the RAC Foundation, said: “This saga is starting to feel almost as old as the stones themselves and it’s not over yet.

“The likelihood must be that objectors will already be poring over the Secretary of State’s lengthy and detailed decision letter looking for grounds on which to launch another legal challenge.

“Quite apart from the risk of further legal delays, the next hurdle for the project is getting the funding in place to proceed, despite the economic squeeze on the Department for Transport’s budget.”

AA president Edmund King said: “Whether we like it or not, Stonehenge has been a transport congestion hot spot for more than 30 years.

“This is good news that progress is slowly being made to alleviate the chaos.”

Dr Kate Fielden, an archaeologist and honorary secretary to the Stonehenge Alliance, described the decision as “deeply disappointing” as the scheme will cause “severe, irreparable damage to one of the world’s premier World Heritage Sites”.

It's a colossal intervention

Dr Kate Fielden, Stonehenge Alliance

She told the PA news agency: “There’s not only the tunnel. To each side there will be wide and deep cuttings through the landscape, effectively destroying the archaeology and in the process creating a massive monument to the future which dwarfs anything in the World Heritage Site that’s there at the moment, including the Stonehenge monument itself.

“It’s a colossal intervention.”

She said campaigners opposed to the scheme are considering launching another legal challenge.

Rebecca Lush, of Transport Action Network (Tan), which supports sustainable transport campaigns, said: “Just as the Climate Change Committee has recommended that new roads should be reviewed, Mark Harper seems to be in denial by giving the go-ahead to the Stonehenge dual carriageway through the World Heritage Site.

“National Highways admit the scheme would increase carbon emissions by 2.5 million tonnes over its lifetime at a time when we need to rapidly reduce emissions.

“This decision flies in the face of the evidence on climate change and the recommendations of the Climate Change Committee, and will devastate the World Heritage Site.”

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