Wednesday, August 02, 2023

How the Texas backlash to Obama fueled the conservative drive to reinterpret the U.S. Constitution

Eleanor Klibanoff, Texas Tribune
July 31, 2023

Texas Attorney General Ken Paxton speaks during the Conservative Political Action Conference CPAC held at the Hilton Anatole on July 11, 2021, in Dallas, Texas.
 - Brandon Bell/Getty Images North America/TNS

In November 2008, almost 70 million people turned out to vote for the nation’s first Black president and their hope for once-in-a-generation political change.

Barack Obama, a young, former community organizer, promised he’d help more people afford health care, stop the pollution of the planet, expand pathways to legal citizenship and help families dig their way out of the worst recession in decades.

With congressional majorities at his back, it seemed Republicans in D.C. would be hard-pressed to stop Obama's liberal juggernaut. But 1,500 miles away, a group of conservative attorneys were loading the canons and pointing them north.

Over the previous eight years, the Texas Office of the Attorney General had transformed from a Democrat-led bureaucratic workhorse into a Republican war machine, peppering the federal courts with conservative cases and friend-of-the-court filings. Now, Greg Abbott, a man elected by 2.5 million people to be the top lawyer for one of fifty states, stepped up to do what his fellow conservatives in Washington could not: stop, or at least slow, Obama’s agenda

During the Obama administration, Abbott's office, and especially its elite appellate unit, the Office of the Solicitor General, became a government in exile, a refuge for the Republican party’s brightest minds. Top-tier conservative attorneys came to Texas for the chance to gain courtroom experience, burnish their bonafides and strengthen their commitment to the cause.

They had plenty of opportunities. Under Abbott, Texas brought more than 30 lawsuits against the Obama administration in six years, including an average of one suit a month in 2010. Texas used the federal courts to try to stop the federal expansion of government subsidized health care; block protections for young people who entered the country illegally with their parents; guard businesses against environmental regulations intended to stave off climate change; and even extend the fishing season by two weeks.

Texas emerged as an almost co-equal party to the federal government, casting itself as the defender of state sovereignty, federalism and the U.S. Constitution, and quietly helping push the nation’s legal apparatus to the right.

Abbott defined his role quite simply: “I go into the office, I sue the federal government, and then I go home.”

Reformation takes root

Several forces aligned to allow Texas to punch above its constitutional weight during the Obama administration.

In the previous decade, state attorneys general had taken a more proactive stance in the federal courts, banding together to pursue consumer protection and environmental regulation cases. Many states, including Texas, built solicitor general offices to improve their performance before appellate courts, and even bring cases to the U.S. Supreme Court.

This accelerated after a 2007 U.S. Supreme Court decision, Massachusetts v. EPA, granted states “special solicitude” to bring lawsuits against the federal government, effectively lowering the bar for states to get into court. The ruling’s true meaning has been hotly debated since, but Texas took it as pre-clearance to file more, and more ambitious, cases.

"The AG’s have really latched onto that,” said Paul Nolette, a Marquette University political scientist. “They’ve really expanded their ability to be, in some ways, unlike any other plaintiff. It’s just a lot easier to get into court for them.”

Other conservative states got in on the action, but Texas led the way, throwing its considerable resources into assembling multi-state lawsuits challenging anything the Obama administration put forth.

“Texas is the undisputed champion amongst conservative state litigators,” Nolette said. “Just in terms of sheer quantity of single-state cases and leading multi-state cases against Democratic administrations.”

Texas also started asking judges to issue nationwide injunctions, until then a rarely used tool that allows federal judges to extend their rulings to the whole country.

When Obama tried to protect undocumented parents of lawful citizens from deportation, Texas gathered a coalition of states to challenge the executive action. A federal judge in Brownsville determined only Texas had standing to sue — but agreed to issue a temporary injunction covering the whole country, effectively allowing one state’s objections to dictate policy for the nation.

“It was a new strategy, where one judge, in one random part of the state, all of a sudden has the power to basically bring entire federal programs to a halt,” said Stephen Vladeck, a law professor at the University of Texas at Austin. “The state of Texas was one of the first litigants to repeatedly push for this kind of relief.”

As the state’s legal tactics evolved, so did the intellectual underpinnings of their arguments. These cases weren’t about liberal or conservative politics, the argument went, but about returning to the original separation of powers laid out in the U.S. Constitution.

Obama was overstepping his executive authority, Texas argued, sidelining Congress and, most crucially, squashing state’s rights.

“If I have to, I will use one challenge after another to dismantle governmental operations that I consider violations of the Constitution,” Abbott told Texas Monthly in 2013. “I’ve had one overarching goal, and that is a strict interpretation and application of the laws and the Constitution.”

Abbott did not respond to a request for comment for this story.

Texas’ most common target was the Environmental Protection Agency and Obama's efforts to address climate change, which were viewed as a threat to the oil, gas and chemical industries that fuel the Texas economy.

In 2010, Texas sued to overturn an agency finding that greenhouse gasses were impacting public health, and then sued to block the rules intended to rein in those emissions, claiming the agency had not followed proper rulemaking procedure. When the EPA said Texas’ environmental protection plans didn’t meet federal standards, Texas sued, and when the EPA took over Texas’ programs, Texas sued.


Then-President Barack Obama speaks to a crowd of 3,000 students and faculty at the University of Texas at Austin on Aug. 8, 2010. 
Credit: Bob Daemmrich for The Texas Tribune

Texas pushed this legal strategy on cases big — the Affordable Care Act — and small. When a federal judge in Texas ordered the National Marine Fisheries Service to restore two weeks of red snapper season, Abbott touted the victory as a “big win for Texas fishermen, jobs along the Gulf Coast and — most importantly — the rule of law.”

“Texans will not stand by idly while federal bureaucrats attempt to govern by illegal emergency rule – we will fight back and we will prevail,” he wrote in a press release.

While it was easier than ever to get into the courtroom, many federal judges had not yet traveled as far down the ideological road as Texas. Abbott’s defeats seemed to fuel his fervor as much as the wins.

“It’s about principles — fundamental principles enshrined in the Constitution,” Abbott wrote in an op-ed defending the cost of his lawsuits. “Defending the constitutional principles that have made the United States truly exceptional: That’s priceless.”

And when he lost at the district court level, Abbott had a crack team on hand in the Office of Solicitor General to handle the appeals.

True believers


Ted Cruz, who would ride Texas’ Obama outrage to a U.S. Senate seat in 2012, laid the foundation for the solicitor general’s office as a legal champion of conservative causes. His successors continued to build the edifice, returning to the circuit courts and the Supreme Court again and again to defend Abbott’s multiplying forays into federal territory.

James Ho, regarded at the time as “one of the best appellate lawyers in the state (and the country for that matter),” became solicitor general in April 2008, a little less than a decade after the office was created.

“By the time I inherited the office, the Texas Solicitor General’s office had cemented itself as the state’s appellate chief, with the same power that the U.S. Solicitor General has at the federal level,” Ho told the Texas Tribune. “No one in the AG’s office could either pursue or defend an appeal without the express advance permission of the SG’s office.”

Ho, who was later appointed to the 5th U.S. Circuit Court of Appeals under former President Donald Trump, helped turn the office into a legal heavyweight. In 2009, the U.S. Supreme Court asked Texas to submit a brief in a lawsuit the state wasn’t directly involved in, a sign of respect usually reserved for the U.S. Solicitor General’s office.

“There was a saying when I was there, which is, ‘when in doubt, do what the U.S. Solicitor General’s office does,’” Ho said. “That tells you the spirit of the office, we wanted to be the premiere appellate speciality office for the state of Texas, to make sure our client’s legal rights were well-represented.”

Many of Texas’ high-profile challenges didn’t make it to the appeals stage until after Ho returned to private practice in December 2010. He left the office in the hands of a law school classmate with a similarly purebred conservative resume.

Like Ho, Jonathan Mitchell, and his deputy, Andrew Oldham, each clerked for conservative Supreme Court justices — Antonin Scalia for Mitchell, Samuel Alito for Oldham. All three men worked under Republican presidents at the elite coterie that is the Department of Justice’s Office of Legal Counsel.

From there, Mitchell had gone into academia, teaching law at George Mason University Law School, later renamed for Scalia. Today, Mitchell is best known for designing the novel legal theory that allowed Texas to sidestep Roe v. Wade and ban abortions after about six weeks of pregnancy. The law, which has survived severallegalchallenges, is enforced entirely through private lawsuits.

“I thought it would be an opportunity to work on some interesting cases, and an opportunity to get Supreme Court arguments, which are really, really hard to get if you’re not a state solicitor general,” Mitchell told The Texas Tribune.

Mitchell noted that the office handled a wide range of cases, including defending the University of Texas at Austin’s affirmative action policy. But by the time he took over, Texas had made a name for itself as a conservative legal force, led by Abbott — “a true believer in federalism.”

“I don’t think it was just because it was Obama and Obama’s policies,” Mitchell said. “He really believed that things had gotten out of kilter between the federal government and the states, and he wanted to restore a balance that more closely resembled what the framers envisioned.”


Attorney Jonathan Mitchell speaks before the Texas Supreme Court on Oct. 28, 2021.
Credit: Supreme Court of Texas YouTube channel

As his deputy, Mitchell hired Oldham, today a judge on the 5th U.S. Circuit Court of Appeals. In addition to clerking at the U.S. Supreme Court, Oldham was a “Sentelletubbie” — a former clerk of Judge David Sentelle on the D.C. Circuit Court of Appeals.

The D.C. Circuit is unique in that it mostly handles cases related to the federal agencies that regulate daily life, like the Environmental Protection Agency, the Food and Drug Administration and the Securities and Exchange Commission.

“It’s a place where, if you have ideas about the size, nature and scope of the administrative state … It's really an opportunity for those ideas to be tested,” said Enrique Armijo, a law professor at Wake Forest University who clerked at the same time as Oldham. “I myself got more sympathetic to the idea that there is a reason these agencies exist and there’s a reason Congress created them.”

But not everyone had the same takeaway. Working for Sentelle, a deeply conservative Reagan appointee, Oldham began to develop the anti-regulatory ideas he would eventually bring to bear on Texas.

Over the past century, as the world became more complicated and Congress more deadlocked, these executive branch agencies grew in number and power, and presidents of both parties increasingly turned to administrative regulation to enact aspects of their agendas.

But during the Obama administration, Texas appointed itself top administrative regulation cop, setting up roadblocks to prevent the EPA from tackling climate change, the Equal Employment Opportunity Commission from helping former felons get hired and the U.S. Department of Health and Human Services from requiring contraception be covered on health insurance plans.

In lawsuit after lawsuit, Texas argued the Obama administration hadn’t followed the correct rulemaking procedure, new regulations were “arbitrary and capricious,” or they didn’t fully take into account the economic impact on the states. Obama was violating the separation of powers enshrined in the Constitution, using these agencies to legislate without Congressional oversight, Texas claimed; anything Congress couldn’t handle should be left to the states.

The “alphabet soup of administrative agencies that dominate modern American life,” Oldham said at a 2016 Federalist Society event at the University of Chicago, is “fundamentally illegitimate.”


Andrew Oldham testifies at a confirmation hearing before the U.S. Senate Judiciary Committee on April 25, 2018. 
Credit: Allison Shelley for The Texas Tribune

“The reason I argue it is illegitimate is because it is not based in the way the Constitution says law should be made,” Oldham said. “The entire existence of this edifice of administrative law is constitutionally suspect.”

Conservatives have never been overly fond of regulation. But these more extreme arguments challenging the entire construct of administrative law have largely been contained to academia, in part because it’s not clear what would come after.

“There's just no way that Congress has the ability to itself decide what a safe amount of greenhouse gas in the atmosphere is, and then adopt motor vehicle standards that try to get to that place,” said Armijo. “There's not enough political will to do it. There's not enough political agreement to do it. And there's just not enough bandwidth to do it.”

Texas helped drag disputes about the legitimacy of federal agencies out of the ivory tower and into the courts, undermining Obama’s agenda by attacking the administrative state. While these legal theories gained ground in Texas, the courts weren’t quite as convinced.


Then-Texas Attorney General Greg Abbott in 2010. “I go into the office, I sue the federal government, and then I go home,” he said of his role. 
Credit: Bob Daemmrich for The Texas Tribune

In rejecting several of Texas’ challenges to new EPA regulations, the D.C. Circuit effectively rolled its eyes at the state’s claims that the agency hadn’t taken the proper steps to prove the need for restrictions on greenhouse gasses.

“This is how science works,” the opinion, led by Oldham’s old boss, Sentelle, read. “EPA is not required to re-prove the existence of the atom every time it approaches a scientific question.”

The Book of Ken

After three terms as attorney general, Abbott used his record of suing the Obama administration to successfully run for governor in 2014, taking Oldham with him as general counsel. There was no question that his replacement would be a Republican; Democrats hadn't won a statewide office in years.

This time, though, there was no former Texas Supreme Court justice in the running. The all-important Republican primary came down to a runoff between two state legislators – Sen. Ken Paxton and Rep. Dan Branch.

This marked a turning point for the office.

Attorneys general like now-Sen. John Cornyn and Abbott “who came up through the judiciary tend to be much more concentrated on issues of law,” said Ed Burbach, a former assistant attorney general under Abbott, now an attorney at Foley & Lardner who advises state attorneys general. But “those who came up through the legislative branch tend to be much, much more active with regard to policy issues.”

Branch attracted support from mainstream conservative groups and many of Abbott’s former deputies, but Paxton’s promised fervor for culture war issues secured him the increasingly powerful right-wing of the party.


New Texas Attorney General Ken Paxton is administered a ceremonial oath of office by Gov.-elect Greg Abbott in the Senate chamber on Jan. 5, 2015. 
Credit: Bob Daemmrich

One of Paxton's earliest supporters was Kelly Shackelford, founder of First Liberty Institute, a conservative religious liberty law firm based in Plano. Paxton also got support, albeit not a full endorsement, from state solicitor general-turned-senator Ted Cruz.

“In the race for Attorney General,” one ad said, “there’s only one constitutional conservative like Ted Cruz.”

Paxton won the runoff and the general, and assumed his seat behind the wheel of the legal machine built by his predecessors. Over the next eight years, he would drive Texas — and the nation — further to the right, faster than ever before.

Paxton continued much of Abbott’s agenda — suing the EPA over Obama’s environmental agenda; the Food and Drug Administration over execution drugs; and the Department of Labor over its efforts to require overtime pay for low-wage workers.

But for his more right-wing base, Paxton’s election came at a crucial moment: Less than a year later, the U.S. Supreme Court upheld the right to same-sex marriage, galvanizing conservative Christians nationwide.

Religious liberty, once on the fringes of the conservative legal movement, moved to the center of the conversation, as Christian groups took to the courts to claim that everything from requiring a baker to sell a wedding cake to a gay couple to allowing cities to turn away foster agencies that wouldn't place children with same-sex couplesviolated their sincerely held beliefs.

These groups found an ally in the Texas Office of the Attorney General, where Paxton used taxpayer dollars to build out his own team of lawyers to carry the religious liberty banner.

While Abbott had collaborated with First Liberty on certain cases, Paxton created a revolving door between Shackelford’s firm and the Office of the Attorney General.

Despite criticism, he hired First Liberty chief legal officer Jeff Mateer as first assistant attorney general. Former Solicitor General Ho, by then one of First Liberty’s most active volunteers, jumped to Mateer’s defense, calling him “an exceptional legal talent and a zealous and powerful advocate for his clients.”

It would later come out that Mateer, in 2015, gave a speech in which he called transgender children part of “Satan’s plan” and the legalization of same-sex marriage “disgusting.” Ho has said he was not aware of those comments at the time.

Hiram Sasser, First Liberty’s general counsel, became Paxton’s temporary chief of staff, and other lawyers from First Liberty and the Alliance Defending Freedom, a similarly aligned law firm, filled out the office’s top ranks.

First Liberty declined to make Mateer or Sasser available for an interview. In a statement, Sasser said the firm works with “lots of government lawyers from state and federal offices across the country, including the Bush, Obama, Trump, and Biden administrations to protect religious liberty and value those partnerships when we can forge them for specific projects.”

But this close-knit relationship meant Texas stood ready to swat down any efforts to shore up protections for LGBTQ+ people — like May 2016 guidance that said schools must allow students to use the bathroom that aligns with their gender identity.

Paxton followed the Abbott playbook, assembling a coalition of red states interested in challenging the guidance. But his office went a step further to orchestrate a lawsuit, drafting a bathroom policy that was at odds with the guidance and shopping it around to school districts.

Once a school district voted to adopt the policy, Paxton would have the lead plaintiff he needed to get this case in front of a judge.

But not just any judge.

Power of the gavel

All 105 students in Harrold Independent School District attend class in one building. In 2016, when Paxton’s office came knocking, no one could remember the district ever having a transgender student. Nonetheless, this tiny district near the Oklahoma border became the face of a 13-state lawsuit challenging the bathroom guidance.

This wasn’t a random selection. By enlisting Harrold ISD as the main plaintiff, Paxton could file the lawsuit in Wichita Falls, where he could virtually guarantee it would be heard by a conservative judge.

Under Paxton, the Office of the Attorney General began exploiting a quirk of Texas’ federal judicial structure, where large swaths of the state are overseen by just one federal judge. Between 2015 and 2018, almost half of Texas’ lawsuits against the federal government were filed in Wichita Falls and heard byJudge Reed O’Connor, a former Cornyn aide and longtime Federalist Society member appointed to the federal bench by Bush in 2007.

O’Connor delivered Paxton’s office several big wins, including a later-overturned repeal of the Affordable Care Act, and served as a timely object lesson in the importance of having someone who agrees with your legal philosophy on the bench.

This lesson was not lost on two former occupants of Paxton’s office who were well-placed to do something about it. After their stints at the attorney generals’ office, Cornyn and Cruz had ascended to the U.S. Senate, and, specifically, the Senate Judiciary Committee, where they wielded great influence over Texas’ lifetime appointments to the federal bench.


U.S. Sen. John Cornyn at a U.S. Senate Judiciary Committee hearing to confirm five nominees to fill vacancies on federal courts in Texas, on Capitol Hill in Washington on Sept. 7, 2016. 
Credit: Allison Shelley

U.S. Sen. Ted Cruz speaks during a U.S. Senate Judiciary Committee hearing to confirm five nominees to fill vacancies on federal courts in Texas, on Capitol Hill in Washington on September 7, 2016. 
Credit: Allison Shelley

U.S. Sens. John Cornyn and Ted Cruz at a U.S. Senate Judiciary Committee hearing to confirm five nominees to fill vacancies on federal courts in Texas, on Capitol Hill in Washington on Sept. 7, 2016. Credit: Allison Shelley for The Texas Tribune

In 2013, the senators created the Federal Judicial Evaluation Committee to help vet potential judicial nominees. The committee included Ho and his wife, Allyson, First Liberty’s Shackelford, as well as former Texas Supreme Court justices, federal judges and other high-powered attorneys.

But few judges were appointed in Texas, due to a lack of urgency from the Obama administration and counterparty intransigence from Cornyn and Cruz.

By the end of the Obama administration, Texas had 11 district court vacancies out of 52 total seats, all of which were classified as emergencies by the Department of Justice, and two vacancies on the 5th U.S. Circuit Court of Appeals.

Though Texas saw some progress on judicial nominations towards the end of the Obama administration, the majority of the spots remained open, leaving the door open for a Republican president to help usher in more ideologically aligned choices.

In the meantime, though, Texas still had O’Connor, who in 2016 heard the 13-state lawsuit about Harrold ISD’s bathroom policy.

In court, Austin Nimocks, an assistant attorney general who previously worked for the Alliance Defending Freedom, said the case wasn’t about trans kids. It was about defending the Constitution.

[Part 3: Under Trump, Texas’ foot soldiers became federal judges, securing a conservative stronghold in the courts]

The Obama administration’s guidance was “legislative in nature,” Nimocks said, and was “usurping the authority” of school districts by forcing them to “mix the sexes in intimate areas.”

O’Connor granted a temporary nationwide injunction, blocking the guidance from going into effect anywhere in the country.

The Department of Justice appealed to the 5th Circuit, but in the end, it didn’t matter. Just a few months later, Donald Trump won the 2016 presidential election.


U.S. President-elect Donald Trump greets supporters during his election night rally in Manhattan on Nov. 9, 2016.
 Credit: REUTERS/Mike Segar

[Part 3: Under Trump, Texas’ foot soldiers became federal judges, securing a conservative stronghold in the courts]


This article originally appeared in The Texas Tribune at https://www.texastribune.org/2023/07/31/texas-federal-courts-conservative-takeover-obama-paxton/.

The Texas Tribune is a member-supported, nonpartisan newsroom informing and engaging Texans on state politics and policy. Learn more at texastribune.org.
ESOP
Workers become millionaires in sale of employee-owned Philadelphia insurance company

2023/08/01


Six years after workers acquired their company from second-generation owner William A. Graham IV through an Employee Stock Ownership Plan, the 215 people who now work at Graham Co. are selling the Philadelphia-based business-insurance agency to national broker Marsh & McLennan Agency.

Graham leaders confirmed Tuesday that their board has agreed to sell. The buyer, part of global insurance giant Marsh McLennan Cos. Inc. won't say how much it's paying, but people familiar with the deal say Marsh McLennan agreed to pay five times Graham's expected yearly sales, which works out to about $375 million.

Filtered into a retirement plan that makes the sale tax-free, the total adds up to more than $1 million per worker, even after discounting a slice that will be used to pay down debt.

"For some, it will be life-changing," said Mike Mitchell, the firm's 67-year-old vice chairman.

The millions won't be split evenly. Staffers, including Graham, who's still the board chairman, are assigned shares prorated based on their responsibilities and years of service. But no one executive owns as much as 10%, according to Mitchell and Ken Ewell, 65, Graham's president and chief operating officer.

Still, many of the company's long-serving employees will get a significant boost to collect more than $1 million each in their retirement plans.

"It is mind-blowing," said Sara Kurtz, a Graham production specialist who joined the firm in 1990 and helps producers put together complex, data-rich sales pitches.

Kurtz became enthusiastic about worker ownership when the Employee Stock Ownership Plan (ESOP) was set up in 2017. She has enjoyed watching the estimated value of her shares grow modestly since then.

Yet she was floored to learn at a company meeting last month that she and her colleagues would be paid four times more than the most recent estimate of their shares' value when the company changes hands later this year. (The shares had been amortizing over a 30-year period; with the company sold, they will vest all at once.)

How will it change her life? Kurtz has a child who plans to start college in two years, "and now I don't have to worry how I'll be paying for that." She's also thinking of "taking a trip to Bora Bora and sitting in one of those huts over the ocean. And maybe I'll get the Eagles' new Kelly Green shirt."

Long-term, she has suddenly topped her retirement savings goal. "People at the firm who are my age are all ecstatic and grateful," said Kurtz, 54. "It's given me peace."

The sale price is a 63% advance (not counting inflation) over the $230 million offer Graham says he turned down from another firm in 2017, opting instead to sell his company to his colleagues. During the same period, revenues rose 36% to $73.5 million, from $54 million.

That earlier cash offer would have been taxable — unlike Marsh McLennan's payment to the ESOP, which holds the money tax-free for workers' retirement, according to Phil Trem, president of MarshBerry, the Ohio consulting firm that advised Graham in both the ESOP and the sale to Marsh.

Even with the large payouts, Mitchell said he and other senior officers plan to stay on for the foreseeable future.

Graham, founded by Bill Graham's father in 1960, focuses on business insurance and employee benefits for real estate, manufacturing, transport, health care, nonprofit and professional services companies, and surety bonds for construction, for 1,000 clients, many of them midsized employers such as Select Medical/NovaCare and Liberty Coca-Cola Beverages. The firm also has offices in New York and Washington.
Why Graham is selling now

According to Mitchell, even when they touted employee ownership, company leaders were always open to an attractive sale offer from a buyer who would invest in the agency, not just buy the clients and strip out costs. Selling Graham Co. "was not the goal. But things evolve," he added.

The firm felt the pressure of the times, Mitchell said. Though Graham has long proclaimed that its proprietary database of customer claims and information gave it an edge over rival brokers, Marsh and other national firms enjoyed a growing advantage in pricing coverage and paying claims, based on experience from many more clients and cases. That data have become easier to collect and apply, thanks to digital technologies and applications.

"It's a tech tsunami, coming at us quickly," said Ken Ewell, 65, Graham's president and chief operating officer. "We worked hard on building what we call 'Grahamalytics'. But Marsh has the biggest data of anybody in the industry. We're in good shape, but we have to think about where will be in 18 months."

Rivals such as Aon, Arthur J. Gallagher, Hub, and Willis have also been building national agent networks, Trem said.

The Graham leaders worried a larger agency would "smother" their painstakingly built-up operation. Marsh McLellan has a distinct approach, Ewell said: It has been buying up regional agencies since 2009 and has shown a track record of helping them get bigger once they were acquired.

He cited the example of Marsh McLellan's Minneapolis agency, which has quadrupled in size to $100 million a year since its acquisition 12 years ago, and others from Maryland to Montana where professionals stayed on to build their firms with Marsh's support.

Smaller agencies aren't disappearing overnight, and Graham didn't have to sell, said Trem, the adviser. Graham's rising sales confirm the firm remained "incredibly competitive — they continued to invest in the firm, to provide the best services." Still, "partnering with the world's largest broker gives them the best of both worlds — autonomy in the local and regional markets, but with new tools and expertise."

Marsh McLennan sees Graham as adding "significant business insurance expertise," while its customers will be potential clients for its own employee health and benefits practice, according to Andrew Neary, chief executive of the company's eastern U.S. region.

For her part, Kurtz, has no plans to retire early: "I'm not a sit-still type of person."

She said colleagues see the payout as a kind of vindication: "We've all worked for Graham for so long. My dad instilled my work ethic from a young age. I put my heart and soul into things, and that fits the culture here. I always thought, 'Put your head down, grind it out and you'll get the reward.' "

© The Philadelphia Inquirer
HEGEMONIC HUBRIS
‘Never witnessed that before’: USA torn to shreds over World Cup act

It’s the USA’s worst ever performance in a World Cup group stage and just the second time the side has not topped its group.

American players were seen celebrating with fans. 
Photo: Optus Sports. 

Tyson Otto from News.com.auAugust 2nd, 2023 9:58 am


The United States are on the verge of crisis after surviving elimination by just millimetres in a wild end to their Women’s World Cup group stage match against Portugal.

The reigning champions dodged disaster in a dour 0-0 draw at Eden Park in New Zealand on Tuesday night.

The US, who have won the last two Women’s World Cup titles, survived by the width of a post with a draw was good enough for them to finish second in group E. It was almost curtains for the powerhouse American team when Portugal substitute Ana Capeta had a golden opportunity to score in the 92nd minute, only to see her shot bounce off the post.

Watch Angel City, a new documentary which goes behind the scenes of the groundbreaking new Los Angeles pro women’s soccer team backed by Natalie Portman on BINGE.

The team’s lacklustre performances have been widely criticised by football pundits around the world, and one star’s act after the game has particularly angered America.

American football legend Carli Lloyd was scathing of the moment members of the United States team celebrated with fans after the match.

Meanwhile, other team members, including Megan Rapinoe, were also seen dancing after surviving through to a Round of 16 match against the top team from Group G, which will be decided on Wednesday.

Lloyd was staggered at the celebratory acts from the American players. The most eyebrow-raising one came when Trinity Rodman and Kelley O’Hara were seen taking photos and high-fiving fans after the team’s worst-ever performance in World Cup group stage with five points.

“I have never witnessed something like that. There’s a difference between being respectful of the fans and saying hello to your family,” Lloyd said on Fox Sports’ World Cup post-game show.

“But to be dancing, to be smiling. I mean, the player of the match was that post. You were lucky to not be going home right now.”

She said the team’s “uninspiring” effort was nothing to celebrate.

“It started to shift post-2020 and there are a lot of off-the-field things that are happening,” she said.


Megan Rapinoe was seconds from the end of her career. 
Photo by Buda Mendes/Getty Images.Source: Getty Images

“You never want to take anything for granted. You put on that jersey and you want to give it everything you have for the people who came before you, the people who are going to come after you and I am just not seeing that passion.

“I am seeing a very lacklustre, uninspiring, taking it for granted. Winning and training and doing all that you can to be the best possible individual player is not happening.”

Lloyd, who led her team to World Cup titles in 2015 and 2019 and won Olympic gold in 2008 and 2012, said her former team is walking a “fine line” right now.

“We saw before the game, the dancing. There’s a difference between confidence and arrogance, and I think that’s a fine line of where is the direction going with that,” she said.

“It’s OK to be confident, but you never want to cross that line of becoming arrogant and this is exactly what can come and bite you.”

Team USA superstar Megan Rapinoe was not in a mood to talk to the press after the game.

Former Matildas star Catherine Cannuli responded to the vision of Rodman and O’Hara’s antics on the post-game show on Optus Sport, cheekily saying: “Typical USA arrogance. Coming off that pitch, finishing second in the group and still think they’ve got it all”.

Head coach Vlatko Andonovski had a different view on his team’s competitive level in his post-game comments.

“This team wanted to win this game more than anything else and they’ve put everything they could in preparation for this tournament,” Andonovski said in response to Lloyd.

“To question the mentality of this team, to question the willingness to win, to compete … I think it’s insane. I’ve never seen this team step on the field and not try hard and not compete.”

Regardless, it’s the USA’s worst ever performance in a World Cup group stage and just the second time the side has not topped its group.


USA 2019 World Cup winner and forward Jessica McDonald said the champion side were a shadow of their regular selves.

“As far as performance, I did expect more from them, I’m sure a lot of us do, and they’ve been outperformed,” she said.

“I know they’re walking on eggshells right now. It has not been to their standard so far.”

McDonald said she “felt sick” when Capeta’s shot beat US goalkeeper Alyssa Naeher but slammed into the post and then bounced straight back out.

There’s good news for the Matildas however with the side now not able to come up against the defending world champs until the final, if they both make it that far.

Why is the US team struggling at the Women’s World Cup?

By Tara Subramaniam and Matt Foster, CNN
Wed August 2, 2023

CNN —

After the thrill of winning successive Women’s World Cup titles, the 2023 tournament – so far – has brought the US team very much down to earth with a bump.

Hearts must have been in the mouths of US fans during Tuesday’s tense 0-0 draw with Portugal as the four-time world champion came within inches of being knocked out of the tournament altogether.

Portugal was desperately unlucky not to engineer one of the great Women’s Cup shocks, notably when Ana Capeta’s shot deflected off the post in the last few minutes of the game.

For a team that has been so historically dominant at the Women’s World Cup, performances throughout the 2023 edition so far have been underwhelming for women’s soccer’s most dynastic team.

Head coach Vlatko Andonovski admitted his side “did not play well” against Portugal, while TNT soccer analyst and the US Women’s National Team (USWNT) great Julie Foudy told CNN: “They just haven’t been clicking – the thing I keep coming back to is it doesn’t feel like there is a lot of chemistry.

Their three matches at this tournament represents the US women’s worst group stage performance in World Cup history – and no team has ever won the competition having picked up so few points in the preliminary stage.

Blending experience with potential

Four-time winners of the tournament, the USWNT arrived for their three Group E games in New Zealand looking to bring home the trophy for the third consecutive edition – something no team in either men’s or women’s football has achieved.

However, the squad perhaps does not possess the veneer of invincibility that characterized those squads.

It was defeated by Canada in the semifinals of the Tokyo Olympics in 2021 – having already been handily beaten 3-0 by Sweden earlier in the tournament. In October 2022, the team suffered back-to-back defeats to England and Spain in high-profile friendlies – marking the first time in over five years that had occurred.

While stalwarts of previous successes such as Megan Rapinoe and Morgan remain in the team, Andonovski has overseen something of a transitional period as a host of young talent looks to establish itself in the team. The US squad contains 14 World Cup debutants – blending them in seems to have taken a toll on the usual ruthless efficiency of the team.

It should also be remembered that the USWNT is missing a number of players due to injury: forwards Mallory Swanson, Christen Press and Tobin Heath, midfielders Sam Mewis and Catarina Macario, as well as defenders Becky Sauerbrunn and Abby Dahlkemper.


Fans of the US team get ready for the Women's World Cup group game against Portugal.
Andrew Cornaga/AP

Doubt among the fans?

Known for their extravagant support of the normally all-conquering side, US women’s soccer fans appeared to demonstrate the same nerves that reverberated among the squad during the draw against Portugal in Auckland.

From the outset, the players were greeted by a relatively subdued fanbase with supporters arriving at the stadium much later in comparison to the matches against Vietnam and the Netherlands. Both of those games had seen fans streaming in more than an hour before kick-off – whereas empty seats remained plentiful at Tuesday’s decider right up until the start of the game.

Similarly, tension seemed to affect the vociferousness of the crowd. Compared to the constant cheering and chanting that accompanied the US draw with the Netherlands in Wellington, the loudest cheers against Portugal came when substitutes Rapinoe and Trinity Rodman entered the fray.
Criticism

Former US stars have been scathing in some of their analysis, most vocally Carli Lloyd, who said the team was “lucky not to be going home right now” following the “lackluster and uninspiring” performance against Portugal.


Americans from coast to coast flock to Women's World Cup, including one very dedicated superfan


“There is a difference between being respectful to the fans and saying hello to your family, but to be dancing, to be smiling – I mean the player of the match was that post,” Lloyd said in response to footage of Rapinoe, Morgan and Crystal Dunn dancing before the Portugal match.

Coach Andonovski said it was “insane” for anyone to question the team’s commitment when asked by CNN to respond to criticism from Lloyd.

“To question the mentality of this team, to question the willingness to win, to compete, I think is insane,” Andonovksi said. “Everyone is entitled to their opinion and you know, they can say whatever they want, but I just know how this team feels,” he added.


English referee Rebecca Welch (R) shows a yellow card to US midfielder #16 Rose Lavelle (L) in the match against Portugal. Lavelle will now miss her team's last-16 match on Sunday.
Saeed Khan/AFP/Getty Images

Three-peat?

Amid the criticism it should be remembered that winning three championships in a row is extremely hard to do at the professional club level in any sport, let alone the World Cup in international soccer – no nation has ever won three consecutive World Cups in either the men’s or women’s game.

The biggest enemies of sustained success in sports are waning motivation and, most often, time. The amount of effort, skill and sustained passion it takes to keep up success over a long period of time is beyond difficult and the years between World Cup editions only ratchet that tension up.

Professional teams have a hard enough time keeping a core championship group together and healthy for three consecutive years on a club level – the US women’s team is attempting to do the same thing eight years after winning the 2015 World Cup.

The legendary generation of players which won that tournament is largely gone – just five players from 2015 remain on the squad in this tournament.

The teams that have pulled off three-peats are often legendary. The 1990s Chicago Bulls, the late 90s-early 00s New York Yankees and Los Angeles Lakers, the mid-century Boston Celtics and Montreal Canadiens, the New York Yankees (again) in the 1930s and 40s – all teams that live long in the consciousness of American sports fans.

In club soccer since 2000, only an iconic Real Madrid side led by Cristiano Ronaldo won three UEFA Champions Leagues in a row from 2016 to 2018.

Meanwhile Spain is the only country to ever win three major international championships in a row – Euro 2008, the 2010 World Cup and Euro 2012 – and those were still two different competitions taking place every two years, not very comparable to what the US women are attempting to do in winning three World Cups in a row.

This US Women’s National Team still has a path – albeit one that might be rockier and steeper than most observers expected even two weeks ago – to join those legendary ranks. If they pull it off, perhaps the disappointing draws from the 2023 tournament’s group stage will be seen as a case of survive-and-advance.

Sophia Smith (R) comes off to be replaced by Rapinoe (L) during the match against Portugal.Buda Mendes/Getty Images
Eyes on the prize

USWNT players and Andonovski are looking ahead to the knockout stage, where they will meet Sweden, who topped Group G.

“The approach is do or die,” Morgan told reporters after the game. “You know, the knockout stage, anything can happen and we are looking to get back, feel good, get our bodies back and we’ll be watching tomorrow to see who will be playing.”

Star midfielder Lindsey Horan, who has scored two of the team’s four goals, was keen to focus on the positives after the game but recognizes the need for improvement.


Female soccer players earn 25 cents to the dollar of men at World Cup, new CNN analysis finds

“I’m very confident in this team,” she said after the match. “Obviously, this is not the performance that anyone wanted to see, or we felt like we could do.

“I think we need more and we build off of that. You’re going to see a better team in the round of 16.”

Andonovski himself added, “We’re not happy with our performance, but we qualify for the next round. We’re moving on.”

The USWNT’s next fixture takes place on Sunday at 5 a.m. ET. The match against Sweden, No. 3 ranked in the world by FIFA, has plenty of World Cup history. Sweden drew with the US in 2015 and also beat them in 2011 – the last time any team defeated the USWNT inside regulation at a World Cup. The US defeated the Scandinavian side in the group stage in 2019.




TIE SCORE 0 - 0
Jamaica knock Brazil out to advance to last-16 in just their second Women’s World Cup

Marta Cox makes history for Panama but France respond with six goals



Jamaica goalkeeper Rebecca Spencer celebrates after her team qualified for the last-16. Photograph: Getty Images

Wed Aug 2 2023 - 

Jamaica 0 Brazil 0

A courageous Jamaica team held Brazil to a 0-0 draw on Wednesday to reach the knockout phase for the first time in only their second Women’s World Cup while condemning the South Americans to their earliest exit since 1995.

Needing a point to go through, the Reggae Girlz barely threatened to score but were tight in defence, repelling wave after wave of Brazilian attacks in a frenetic atmosphere at Melbourne Rectangular Stadium.

At the final whistle, the overwhelmed Jamaicans slumped to their knees and roared in joy before forming a circle to dance and sway to the Bob Marley song “One Love”.

Having lost all their matches in France four years ago, the Jamaicans have coming a long way in a short time, holding France 0-0 and beating Panama 1-0 in their Group F clashes. It was a tough night for Brazil.

READ MORE

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Jamaica knock Brazil out to advance to last-16 in just their second Women’s World Cup


South Africa into the knockout stages with a last-gasp win over Italy


Mary Hannigan: Awkward homecoming on the cards when Ireland return from Women’s World Cup


Their coach Pia Sundhage started Marta on the field for the first time in her sixth and final World Cup but the iconic forward bowed out in disappointment, coming off in the 80th minute. Her touch was missing early. She fired a shot into a defender in the fourth minute and then wasted another chance seven minutes later with a heavy touch, leaving an unmarked Ary Borges fuming at the far post.

Running towards goal, Borges finally had her chance when Luana found her with a cross but the playmaker steered her header well wide in the 24th minute.

Borges then set Tamires up with a delightful cross into the inside-left channel late in the half but she thumped a volley straight at goalkeeper Becky Spencer. Jamaica rode their luck to halftime and Brazil’s desperation grew after the break as their attacks came to nothing.

Jamaican hearts were in mouths in the 79th minute when defender Allyson Swaby nearly put the ball into her own net with a terrible attempted clearance that forced Spencer into a fine save at the far post.

In search of a goal, the Brazilians exposed themselves to the counter-attack and Khadija Shaw all but made them pay. Needing only the keeper to beat, she blazed just over the bar in the 82nd minute.

Brazil had one last chance in a final-minute goalmouth scramble but Debinha headed straight to the keeper, allowing the Jamaicans to celebrate arguably their finest moment in international football.
Panama 3 France 6

Kadidiatou Diani netted a hat-trick, including two penalties, to lead France to a frenzied 6-3 victory over debutants Panama and into the last 16 of the Women’s World Cup.

Les Bleues needed only a draw in the Group F finale against winless Panama. After conceding in the second minute, fifth-ranked France dominated, with goals from Maelle Lakrar, Lea Le Garrec and Vicki Becho, despite playing without captain Wendie Renard and all-time leading scorer Eugenie Le Sommer.

Marta Cox made history by scoring Panama’s first-ever Women’s World Cup goal – and the quickest at this tournament at 1:07 – with a stunning 35-yard free kick that curled into the top corner. Cox burst into tears before being mobbed by team-mates.



Lakrar finally got France on the scoresheet in the 21st minute with a header that goalkeeper Deysire Salazar could not keep out. Diani netted her first seven minutes later, pouncing from six yards out after a goalmouth scramble, before converting from the penalty spot for her second after a handball in the area.

Le Garrec scored just before halftime with an intended long cross that curled into the net, putting Les Bleues up 4-1 at the break while Panama’s players argued among themselves before trudging off the pitch.

Diani completed her hat-trick with another penalty seven minutes after the break following a handball in the box. Trailing 5-1, Yomira Pinzon added a second for Las Canaleras – the Canal Girls – from the penalty spot in the 64th minute, to the delight of a largely neutral Sydney Football Stadium crowd of 40,498, after a foul by Elisa De Almeida on Riley Tanner.

Lineth Cedeno pulled another back with a header in the 87th minute, reacting quickest after the ball had bounced off the bar. The goal was initially ruled offside, before a VAR review allowed it to stand.

Becho scored deep into stoppage time, flicking in Eve Perisset’s cross, and despite the lopsided score, when the whistle blew Panama erupted into joyous celebration, dancing on the pitch long after most fans had departed.

“We gained a lot, we won a lot, 40,000 people that ended up cheering for our team, 40,000 people at the stadium that we were able to feel the energy, the vibes from the Panamanian football fans ... they were filling the Panamanian heart,” Panama coach Ignacio Quintana said.

France will meet the second-place team from Group H – either Colombia, Germany or Morocco – in the last 16.

Jamaica reaches knockout round for the first time, eliminating Marta's Brazil at Women's World Cup



Jamaica's Khadija Shaw, right, celebrates after the Women's World Cup Group F soccer match between Jamaica and Brazil in Melbourne, Australia, Wednesday, Aug. 2, 2023. (AP Photo/Hamish Blair)
EMILY DOZIER
Updated Wed, 2 August 2023

MELBOURNE, Australia (AP) — Jamaica advanced to the knockout round for the first time following a 0-0 draw Wednesday that ended Brazil’s run in the group stage for the first time since 1995 at the Women’s World Cup.

The scoreless game in Melbourne also ended Brazilian great Marta’s World Cup career.

She holds the all-time scoring record with 17 goals at the World Cup but couldn’t add to her tally in her sixth trip to the global tournament.


After conceding 12 goals in its Women’s World Cup debut in 1999, Jamaica shut out France, Panama and Brazil in consecutive games to finish second in Group F behind the French.

In addition to being ranked well below both Brazil and France, Jamaica progressed despite the financial struggles it faced before the tournament.

These difficulties resulted in Jamaica receiving support from fans through crowdfunding due to inadequate support from its federation. Nearly $100,000 was raised for the team through two fundraisers.

After opening the tournament with a 4-0 victory over Panama, Brazil failed to get the victory it needed to extend Marta's World Cup campaign.

KEY MOMENTS

With Marta starting the match for the first time in the group stage, Brazil maintained possession for most of the first half but struggled to test Jamaica goalkeeper Rebecca Spencer.

The second half saw Brazil lift the tempo as the team chased the goal needed to advance. Brazil recorded six shots on target but struggled to threaten Jamaica’s goal as Jamaica’s organized defense stifled the team throughout the game.

Marta was replaced after 80 minutes with the game still in the balance.

A free kick from Andressa and a header from Debinha in stoppage time represented Brazil’s closest chance of scoring the winning goal. It was close, but close enough.

WHY IT MATTERS

With the draw, the Reggae Girlz advance to the Round of 16 in their second Women’s World Cup. The team made its debut in 2019 but lost all three group-stage matches, including a 3-0 loss to Brazil. This time, Jamaica finishes unbeaten in Group F.

Brazil’s loss means it is eliminated from the Women’s World Cup in the group stage for the first time since 1995. With the exit from the tournament, Marta has played her final World Cup match after announcing her plan to retire prior to the tournament. She bids farewell to the game’s biggest stage as the World Cup’s all-time leading scorer with 17 goals.

IN THEIR OWN WORDS

“It’s the best feeling I’ve ever had in my life. To be able to do this is unbelievable to just watch it, while I’m alive. I thank the girls for doing this for the country. The country should be proud.” — Lorne Donaldson, Jamaica coach.

“For me, that is the end, but it’s just the beginning for the others.” — Marta, Brazil's veteran forward.

WHAT’S NEXT

Jamaica advances to play the winner of Group H next week in Adelaide, South Australia. Brazil’s tournament comes to a disappointing end.

___

Emily Dozier is a student at the University of Georgia’s Carmical Sports Media Institute.

___

AP Women’s World Cup coverage: https://apnews.com/hub/fifa-womens-world-cup



Jamaica's team members celebrates after the Women's World Cup Group F soccer match between Jamaica and Brazil in Melbourne, Australia, Wednesday, Aug. 2, 2023.

Brazil's Geyse, center, in action against Jamaica's Atlanta Primus during the Women's World Cup Group F soccer match between Jamaica and Brazil in Melbourne, Australia, Wednesday, Aug. 2, 2023. 

Brazil's Marta, center, controls the ball during the Women's World Cup Group F soccer match between Jamaica and Brazil in Melbourne, Australia, Wednesday, Aug. 2, 2023.

Jamaica's Solai Washington, celebrates with her teammate after the Women's World Cup Group F soccer match between Jamaica and Brazil in Melbourne, Australia, Wednesday, Aug. 2, 2023.

AP Photos/Hamish Blair

FIFA WWC PHENOM'S
South Africa 3-2 Italy: Thembi Kgatlana's late goal sees South Africa into last 16 with first Women's World Cup win

Match repot as South Africa go throughout to the last 16 at the expense of Italy, who only needed a draw to go through; Arianna Caruso scored a 74th minute equaliser for the Italians, but Thembi Kgatlana won the game for her country; South Africa face the Netherlands on Sunday


FT
Full Time

South Africa Women vs Italy Women. Women's World Cup Group G.

8:00am, Wednesday 2nd August 2023.

Sky Stadium Attendance: 14,967.

South Africa Women3B Orsi (32' ogown goal)
H Magaia (67')
T Kgatlana (90+2')
Italy Women2A Caruso (11' pen, 74')

Wednesday 2 August 2023

South Africa have reached the knock-out rounds for the first time in a Women's World Cup

Thembi Kgatlana scored a last-gasp winner to give South Africa their first ever Women's World Cup win with a 3-2 victory over Italy that sent them through to the last 16 of the tournament at the expense of their opponents.

Striker Kgatlana struck two minutes into stoppage time to send her team to Sydney for a clash with the Netherlands on Sunday and broke the hearts of the Italians, who had only needed a draw to progress.

Italy had appeared to salvage the draw they needed when Arianna Caruso scored from a corner in the 74th minute but were left to rue what could have been after a series of late missed chances.

The Italians had opened the scoring when Karabo Dhlamini tripped Italy forward Chiara Beccari just inside the box in the 10th minute and Caruso converted the penalty with a confident shot into the bottom left corner.

South Africa equalised in the 32nd minute through an own goal from Benedetta Orsi, who did not check where goalkeeper Francesca Durante was before making a back pass

South Africa's Thembi Kgatlana scored a late winner to beat Italy

Banyana Banyana went ahead for the first time in the 67th minute when Kgatlana's neat inside pass found Hildah Magaia free behind the defensive line and the forward swept it into the net.

Caruso answered seven minutes later from a corner when the ball caught her hip in a goalmouth scramble and cannoned into the bottom right corner of the net.

Also See:

Women's World Cup 2023: Teams, schedule, fixtures, matches and dates



Women's World Cup fixtures



Women's World Cup results



Women's World Cup group tables


It looked as though Italy might hang on for the draw in a frantic finale but Magaia's pass found Kgatlana in the box and the striker smashed the ball into the net to secure second place in the group behind Sweden.

Italy needed just a draw to qualify, but instead exit at the group stages

What's next?

Group G runners-up South Africa will face the Netherlands in the last 16 on Sunday August 6 in Sydney; kick-off 3am.
What is the schedule?

The group stage has begun and runs over a two-week period finishing on August 3. Group winners and runners-up progress to the round of 16, which takes place from August 5 to August 8.

The quarter-finals, which will be held in Wellington, Auckland, Brisbane and Sydney, are scheduled for August 11 and 12.

The first semi-final will then be played on August 15 in Auckland, with the other semi-final taking place on August 16 at the Accor Stadium in Sydney, which will then host the final on August 20.

A third-place play-off will be played the day before the final on August 19 in Brisbane.



RIGHT WING TELEGRAPH VIEW
We won’t invest in green energy
 for the sake of it, says BP boss

Matt Oliver
TELEGRAPH
Tue, August 1, 2023

BP boss Bernard Looney's comments come after BP scaled back some of its green targets earlier this year - Hollie Adams/Bloomberg

The boss of BP has warned that the oil giant will not invest in green energy schemes unless they are profitable enough, as rising costs make a string of offshore wind farms unviable.

On Tuesday the blue chip company became the latest producer to reveal a drop in profits, with oil and gas prices down from the highs they reached following the outbreak of the Ukraine war.

In the wake of the crisis, Bernard Looney, BP’s chief executive, said investment was needed in both fossil fuels and renewable power to boost global energy security.

But he also warned that green energy schemes had to pay their own way, as oil companies face pressure from investors to focus on fossil fuel production rather than less profitable wind and solar farms.

It comes as a string of offshore wind farms face being delayed or shelved, as rising costs wreck the business cases for investing in them.

BP already scaled back its green targets earlier this year after making record profits of $27.7bn (£21.7bn) in 2022 off the back of soaring oil and gas prices.

Mr Looney’s comments on Tuesday came as the company said second quarter profits had sunk to $2.6bn (£2bn), down from $8.5bn a year earlier.

The company insists it is not scaling back its green ambitions, having pledged to invest an extra $8bn in its “transition” businesses and another $8bn in its oil and gas divisions by the end of the decade.

Speaking on Tuesday, Mr Looney said: “We are investing in today’s energy system, and – not or – we are investing in accelerating the energy transition.

“We’re not making a choice between one or the other, we believe the world needs both.”

In February, the company slowed its retreat from oil and gas production, relaxing its targets for cutting carbon emissions up to 2030.

Asked whether BP should further reduce its green commitments, Mr Looney said: “We grew oil and gas production in the first half of this year.

“We’ll actually grow production through the middle of the decade and it will be relatively flat through the end of the decade… That’s where we provide the security that the world needs, at the same time providing the cash flows that we need for our business.”

At the same time, Mr Looney warned inflation had “clearly impacted offshore wind projects”.

But he said: “What I can tell you categorically is that our returns threshold is sacrosanct – we will not develop projects that don’t meet our returns threshold.”

He said the company would only invest in offshore wind where it could directly benefit from the power generated, adding: “We don’t want to generate electrons just for electrons’ sake.”

Mr Looney’s remarks come as a string of wind farm projects around the world, including some in Britain, are facing serious financial difficulties.

Swedish energy giant Vattenfall last month confirmed it had halted development of the 1.4 gigawatt Boreas project, off the coast of Norfolk, after a 40 per cent increase in costs made it unviable.

Developers behind other projects have also indicated their schemes could be at risk as well, with final investment decisions still to be taken.


Prime Minister Rishi Sunak announced new oil and gas projects in the North Sea on Monday - Simon Walker/No 10 Downing Street

Meanwhile, Mr Looney said BP was holding crunch talks about a proposed wind farm it is seeking to build off the east coast of the US, where it is seeking to renegotiate a power-selling agreement due to rising costs.

He told the Telegraph: “The challenge has arisen in the United States and in the UK, where there are projects that have experienced cost rises where there have been pre existing contracts signed on the revenue side, and then there’s a mismatch between the cost assumptions and the revenue assumptions.

“And that’s where the real crunch is coming in.... That’s what the industry is trying to resolve. Clearly, the world needs offshore wind to be successful.”

It comes as Rishi Sunak on Monday announced new oil and gas projects in the North Sea, in a bid to boost Britain’s energy security.

His push angered climate activists, who are campaigning for an end to all new licensing in the UK.

But the Prime Minister, who has suggested some of Britain’s net zero pledges could be watered down if they threaten consumers with huge costs, said the move would “increase domestic gas production and reduce our reliance on hostile foreign states”.

BP reveals underwhelming £2bn profit – but still sparks climate activists' anger

Matt Oliver
TELEGRAPH
Tue, August 1, 2023

BP’s results come a day after Rishi Sunak announced new oil and gas projects in the North Sea - ANDY BUCHANAN/AFP

Oil giant BP has reported a 70pc drop in profits on the back of lower oil and gas prices.

The FTSE 100 company on Tuesday posted second-quarter profits of $2.6bn (£2bn), down from $8.5bn a year earlier.

That was lower than the $3.5bn analysts had been expecting, echoing similarly disappointing numbers at rival Shell last week.

On Tuesday, BP announced a 10pc increase in its dividend and pledged $1.5bn more in share buybacks, following $3.9bn worth in the first and second quarters.

Bernard Looney, BP’s chief executive, said the numbers reflected lower profit margins at the company’s refining operations, due to work being carried out.

He added: “We’re delivering our strategy at pace – we’ve started up two major oil and gas projects to help keep energy flowing today and we’re accelerating our transformation through our five transition growth engines.

“And we’re delivering for shareholders, growing our dividend and announcing a further share buyback.

“This reflects confidence in our performance and the outlook for cash flow, as well as continued progress reducing our share count.”

It means BP’s first-half profits came in at $7.6bn, down from $14.7bn during the same period last year – when oil and gas prices rocketed after the outbreak of the Ukraine war.

The results come a day after Rishi Sunak announced new oil and gas projects in the North Sea, in a bid to boost Britain’s energy security.

His push has angered climate activists, who are campaigning for an end to all new licensing in the UK.

On Tuesday morning, Charlie Kronick, senior climate adviser at Greenpeace UK, said: “BP posting billions in profits while wildfires and floods continue to wreak havoc around the world shows us who really benefits from Rishi Sunak’s climate policy U-turns.

“Handing out new oil and gas licences will do nothing to improve our energy security, or address either the climate crisis or the cost of living facing people across the UK, instead allowing companies like BP and Shell to rake in even more money for their shareholders.”


BP Is Latest Energy Firm to Report Profit Drop on Lower Oil and Gas Prices

Even with the drop in profit, BP raised its dividend and announced a new stock buyback.

By BILL MCCOLL
INVESTOPEDIA
Published August 01, 2023


Peter Dazeley / Contributor / Getty Images

KEY TAKEAWAYS

BP's profit slumped in the second quarter, joining rivals in feeling the impact of lower oil and gas prices.

Second quarter profits were down by more than half from 2022.

Even with the drop in profit, BP raised its dividend and announced a new stock buyback.


BP (BP) is the latest to join the list of major energy companies that posted big profit declines because of falling oil and gas prices.

The British petroleum giant reported fiscal 2023 second quarter profit of $2.6 billion, a more than 69% drop from $8.5 billion a year ago.1

BP indicated it had significantly lower oil and gas realizations, lower realized refining margins, significantly higher turnaround and maintenance activity, a weak oil trading result, and an exceptional gas marketing and trading result, although lower than in the first quarter.

CEO Bernard Looney said it was “another quarter of performing while transforming,” adding the company’s underlying performance was resilient with good cash delivery during “a period of significant turnaround activity and weaker margins in our refining business.”

Rivals Chevron (CVX), Exxon Mobil (XOM), and Shell (SHEL) also saw earnings shrink because of the decline in energy prices.

Despite the slide in profits, BP announced it was raising its dividend by 10% to $0.0727 per share, and would make another $1.5 billion in stock buybacks prior to the release of its third quarter financial results.

American Depositary Receipts (ADRs) of BP were down 1.5% in early trading on Tuesday but remained in positive territory for the year.



YCharts



WE DON'T REPORT THE NEWS MA'AM WE WRITE IT!
WILLIAM BURROUGHS
Consumer Crunch, Weak Miners in Focus for Australia’s Earnings

Georgina McKay
Tue, August 1, 2023 
 




(Bloomberg) -- Consumer spending, China’s uneven economic recovery and declining dividend payouts are in the spotlight as Australia’s earnings season ramps up, with market watchers expecting lackluster results.

Investors will be looking to see how Australia’s biggest companies and consumers are weathering the Reserve Bank’s tightening campaign. Mining profits could be a pain point as commodity prices decline and China’s demand for product wanes.

The reports come as the country’s S&P/ASX 200 Index lags peers. The bank and miner-heavy gauge is up 5.9% this year, trailing the regional stock benchmark as investors flock to technology shares. Earnings downgrades have also weighed on Australian shares.

“We expect modestly lower earnings than last year,” said Anna Milne, an equity analyst at Wilson Asset Management. Guidance statements will likely “be limited in nature.”

Here’s what to watch this earnings season:

Consumer Crunch?

All eyes are on Australian consumers and whether companies can meet sales targets amid higher interest rates. Retail sales unexpectedly fell in June, suggesting consumers are hunkering down amid higher rates and still-elevated inflation. On Tuesday, the nation’s central bank left rates unchanged but kept the door ajar to future hikes.

Supermarkets, health companies and insurers will hold up better than their discretionary peers, with household goods, electronics and fashion companies set to be hit hardest, Paul Taylor, Fidelity International’s head of investments in Australia, said at a briefing in Sydney.

Read: Australia’s Retail Sales Decline as Rising Rates Take Toll

Key stocks to watch: Woolworths Group Ltd. (YTD +16%), Commonwealth Bank of Australia (YTD +3.2%), Harvey Norman Holdings Ltd. (YTD -8%), JB Hi-Fi Ltd. (YTD +11%), Qantas Airways Ltd. (YTD +8%), Flight Centre Travel Group Ltd. (YTD +60%)

China’s Recovery

Rio Tinto Group last week reported lower profits and dividends in a negative sign for the Australian benchmark’s second-largest sector. China’s output grew more slowly than expected last quarter, while other data haven been flashing warnings on everything from consumption to trade.

Still, China’s reopening may be positive for some firms. Companies like IDP Education Ltd. should see an incrementally better earnings outlook compared with last year as students consider international study options again, Wilsons Advisory analysts led by Rob Crookston wrote in a note.

Key stocks to watch: BHP Group Ltd. (YTD +1.6%), Fortescue Metals Group Ltd. (YTD +7.2%), Woodside Energy Group (YTD +7.7%), IDP Education Ltd. (YTD -8.9%), Treasury Wine Estates Ltd. (YTD -17%)

Financials Diverge

Commonwealth Bank will set the scene for the sector’s share performance when it reports next week, as investors eye results from the country’s largest lender at a time when interest rates have stoked concern over credit growth and earnings. It’s the only one of Australia’s so-called big four banks to report earnings this month, though other lenders will issue trading updates.

Insurers are set to be a bright spot as rate hikes, inflationary pressures and a series of extreme weather events have pushed up premiums.

“Within financial services, we get a definite preference of insurance over banking” as premiums tick higher, Fidelity’s Taylor said.

Key stocks to watch: CBA, National Australia Bank Ltd. (YTD -4.9%), ANZ Group Holdings Ltd. (YTD +9.4%), Insurance Australia Group Limited (YTD +25%), Suncorp Group Ltd. (YTD +17%)

Declining Dividends

Among companies on Australia’s benchmark, dividend payouts are expected to fall almost 6% this year, according to data compiled by Bloomberg.

Materials companies are tipped for the largest decline, falling 37%. Energy shares are expected to lead payment growth for another year.

Key stocks to watch: BHP, Commonwealth Bank, Newcrest Mining Ltd. (YTD +31%), Qantas, Whitehaven Coal Ltd. (YTD -26%)

--With assistance from Zhuo Zhang.