U.S. Drilling Activity Going Nowhere Baker Hughes Data Shows

By Julianne Geiger - Nov 01, 2024




The total number of active drilling rigs for oil and gas in the United States saw no change this week, according to new data that Baker Hughes published on Friday, after holding steady in the week prior.

The total rig count stayed at 585, according to Baker Hughes, down more than 5% from this same time last year.

The number of oil rigs fell by 1 this week to 479—down by 17 compared to this time last year. The number of gas rigs rose by 1 this week to 102, a loss of 16 active gas rigs from this time last year. Miscellaneous rigs stayed the same at 4.

Meanwhile, U.S. crude oil production stayed at its highest level ever in the week ending October 25—for the third week in a row—according to weekly estimates published by the Energy Information Administration (EIA). Current weekly oil production in the United States, according to the EIA, continues to sit at 13.5 million bpd.

Primary Vision’s Frac Spread Count, an estimate of the number of crews completing wells that are unfinished, rose by one in the week ending October 25, from 238 to 239—nearly at the same level as the beginning of the year.

Drilling activity in the Permian slipped by 1 this week to 303—a figure that is 7 fewer than this same time last year. The count in the Eagle Ford also fell by 1, to 48. Rigs in the Eagle Ford are now just 3 below where they were this time last year.

Oil prices were trading up on Friday. At 12:23 p.m. ET, the WTI benchmark was trading up $0.79 (+1.14%) on the day at $70.05, down roughly $1.30 per barrel from this time last week. The Brent benchmark was trading up $0.79 (+1.09%) on the day at $73.60—more than $2 per barrel down from last Friday’s price.

By Julianne Geiger for Oilprice.com

Billions Pouring into UK Renewables

By Felicity Bradstock - Nov 02, 2024

The UK's new Labour government is aggressively pursuing a green energy agenda, with significant investments in renewable projects and supportive policies.

Innovative initiatives like Octopus Energy's wind-powered bill discounts and community-owned solar projects are gaining traction.

The UK aims to become a global leader in floating offshore wind and other clean technologies, attracting billions in private investment.


The U.S. has become recognised for rolling out the most far-reaching climate policy of any major world power to date. The Biden administration’s 2022 Inflation Reduction Act (IRA) introduced a wide range of financial incentives to support a green transition, which has helped attract billions in private investment in renewable energy and clean technologies. The EU and the U.K., which were expected to lead the green transition, have lagged behind the U.S. on climate policy over the last two years. However, the U.K.’s new Labour government is rapidly developing its green transition strategy, supported by strong climate policies, innovative energy initiatives, and financial incentives that could soon rival U.S. efforts.

The U.K.’s largest electricity supplier, Octopus Energy, has launched a new initiative to offer consumers a discount on their energy bills during times of favourable conditions for renewable energy production. So, when the wind is blowing more, the company offers consumers reduced-price electricity from its wind turbines. The company hopes this will encourage consumers to support wind turbine projects, as well as use energy in a more considered way. This is just one of the schemes being run by utilities and the government to demonstrate that a shift away from fossil fuels to renewable alternatives could help slash energy bills and have a better impact on the environment.

One London-based start-up, Ripple Energy, is now inviting people to purchase a piece of a wind turbine in exchange for a discount on their electricity bills. Meanwhile, in Grimsby in the north of England, a local cooperative is investing in small-scale solar projects to help cut energy costs for charities in the area.

The U.K. has set ambitious climate targets but has been greatly criticised for not doing enough to meet these goals. The previous Conservative government pledged that all of the U.K.’s electricity would come from low carbon sources by 2035, as well as announced plans to increase offshore wind capacity five-fold by 2030, increase solar power capacity five-fold by 2035, and expand nuclear power. Yet, in February, U.K. ministers found themselves in court for a second time for failing to align the climate action plan with the government’s climate pledges, as well as filling the plan with ambiguities and loopholes.

However, since the Labour Party was voted into government in July, we have seen a significant shift in the country’s energy sector. In just over three months, Labour has launched a multibillion-dollar effort to reposition the U.K. as a global pacesetter for clean energy. In July, the government established a new publicly owned, clean-energy company –Great British Energy, which will own, manage, and operate clean power projects. In September, the U.K. government agreed to buy the electricity system operator from National Grid for around $816.8 million, further enhancing its role in the energy industry.

In August, the government announced a record-breaking investment of over $1.9 billion in domestic renewable energy projects. Some of the renewable energy and clean tech projects now underway include a new investment support scheme for long-duration electricity storage (LDES) projects, plans for the U.K.’s first large-scale carbon capture and storage sites in Teesside and Merseyside, and the publication of a report from a government-industry taskforce that highlights the U.K.’s potential to become a global leader in floating offshore wind energy. The government has also launched the website Innovating the Energy Transition, which outlines investment opportunities and provides a tailored step-by-step guide to help companies set up their business in the U.K.

The government’s ambitious new energy initiatives are already helping to attract higher levels of funding from the private sector in renewable energy and clean tech. In September, Octopus Energy Generation announced plans to invest almost $2.6 billion in clean energy projects by 2030.

Zoisa North-Bond, the CEO of Octopus Energy, stated, “The U.K. is on the verge of a green energy revolution.” North-Bond added, “This £2 billion investment in homegrown renewables will help boost our energy security and pave the way for a more affordable energy future… Solar and onshore wind are among the cheapest energy sources available. By building closer to demand, we can maximise green electricity when it’s abundant and lower bills for customers nationwide.”

In October, the government announced it had raised nearly $31.1 billion in private investment for pioneering energy projects. This came ahead of the International Investment Summit, which helped garner greater attention for sectoral growth in line with new government energy policies and climate pledges.

Following years of stagnation under the Conservative government, there have been significant strides in energy policy and clean energy incentives in recent months under the new Labour government. This is expected to attract high levels of private investment in the coming years and diversify clean energy investment beyond the U.S. market.


By Felicity Bradstock for Oilprice.com

Greenwashing Case Against Santos Could Set Global Precedent

By Felicity Bradstock - Nov 03, 2024

Israel's ban on UNRWA, the main aid provider in Gaza, could have catastrophic consequences for Palestinian refugees.

Experts believe Israel's move is politically motivated and aimed at undermining Palestinian refugee status.

The international community has condemned Israel's actions and Norway has called for a ruling from the International Court of Justice.


In the most recent in a long line of oil and gas companies to be accused of greenwashing, Australia’s second-largest independent oil firm is being sued by the Australasian Centre for Corporate Responsibility (ACCR) for misguiding consumers on its decarbonisation aims. The ACCR is a shareholder activist group that has purchased shares in several high-emissions companies to try to encourage them to pursue Paris Climate Agreement targets. It is not the first time that an activist organisation has accused an oil and gas company of greenwashing and misleading the public, but the outcome of the trial could have an impact on future legal action in the sector.

Monday marked the first day of the 13-day Santos trial in Australia’s federal court. The lawsuit, which was launched in 2021, claims that Santos did not have a proper basis for saying it had a clear strategy for reducing emissions by 26 percent, to 30 percent by 2030, and to achieve net-zero emissions by 2040. The ACCR says this constitutes misleading or deceptive conduct and puts the company in breach of Australian corporate and consumer laws. The case is the first of its kind and could provide the blueprint for lawsuits against oil and gas majors in other countries in the future.

The ACCR’s lawyer, Noel Hutley, stated, “We’ll be submitting that Santos lacked reasonable grounds for making these statements.” Hutley suggested that Santos’s climate strategy was “little more than a series of speculations … cobbled together in a matter of weeks”, rather than a comprehensive pathway to decarbonisation. The ACCR is using additional examples to support its argument that Santos was wilfully greenwashing its oil and gas activities, such as the company calling natural gas a “clean fuel”. Santos also referred to blue hydrogen, which is produced using fossil fuels, as “clean” and “zero emissions”.

Santos has often stated that its net-zero plans rely heavily on the deployment of carbon capture and storage (CCS) technology, to help decarbonise its operations. The company aims to expand its oil and gas production while reducing emissions by using CCS technology. However, ACCR argues that Santos made “a range of undisclosed qualifications and assumptions about CCS processes”. Dan Goucher, ACCR’s Director of Climate and Environment, stated, “We read annual reports and sustainability reports from a range of companies every day. And some of these claims are completely unjustified… The key point for us I guess is that it’s become very difficult for any investor to differentiate between companies making genuine claims and companies that are not genuine.”

Santos is worth approximately $22 billion and operates both onshore and offshore in Australia, the U.S., Papua New Guinea, and Timor-Leste. The court judgement is being watched closely by activist groups around the globe that hope it will put greater pressure on oil and gas companies to be more transparent about their environmental impact and climate efforts going forward. The ACCR hopes the court will forbid Santos from engaging in deceptive conduct in the future, as well as force the company to issue a corrective notice about the environmental impact of its activities.

Earlier in the year, Rob Bonta, the Attorney General of California, filed an amended complaint aimed at encouraging some of the biggest players in oil and gas to relinquish profits that were made while misleading consumers about their contribution to climate change. In June, Bonta filed a lawsuit against the American Petroleum Institute (API), as well as BP, Chevron, ConocoPhillips, ExxonMobil and Shell, for their deceptive conduct. Bonta accused the companies of false advertising and possible greenwashing. A press release said that the firms used words such as “clean” and “green” to make consumers believe their products were more environmentally friendly than they actually were.

Meanwhile, Italy’s oil major Eni was sued last year for alleged early knowledge of the climate crisis. It was the first climate lawsuit to be launched in Italy. Several environmental groups sought legal action, accusing Eni of “lobbying and greenwashing” to encourage higher levels of fossil fuel production despite having an awareness of the risks its products posed since 1970. The allegations are largely based on a study commissioned by Eni between 1969 and 1970 that determined rising fossil fuel use could result in a climate crisis within just a few decades.

The report by the Isvet research centre stated, “Carbon dioxide in the atmosphere, according to a recent report by the UN secretary, given the increased use of [fossil fuels], has increased over the last century by an average of 10 percent worldwide; around the year 2000 this increase could reach 25 percent, with ‘catastrophic’ consequences on climate.”

A new wave of lawsuits, aimed at forcing oil and gas majors to be more transparent about their environmental impact and climate efforts, is taking place in several countries around the globe. Environmental organisations and activists are no longer standing for greenwashing and are asking state and federal courts to impose restrictions on the use of misleading language, as well as force oil and gas companies to produce viable decarbonisation strategies with clear policies and mid-term targets to achieve their climate goals.

By Felicity Bradstock for Oilprice.com

BIDENOMICS

20 States See Gasoline Prices Fall Below $3 Ahead of Presidential Elections

By Charles Kennedy - Nov 04, 2024


A day before the presidential elections, U.S. national average prices per gallon at the pump have continued to fall, with both GasBuddy and AAA predicting a drop to under $3 “soon”.

On Monday, November 4, the national average price for a gallon of gasoline was $3.10, or three cents lower than a week ago and 32 cents lower than a year ago, according to AAA.

Last week, gasoline prices were given a further downward push by plummeting oil prices as a result of the market response to Israel’s decision to avoid targeting Iran’s oil and gas infrastructure. This combined with a regular decline in prices due to lowering seasonal demand, which is on track for this time of year, has kept both gasoline and diesel prices lower, with Gasbuddy noting that diesel “has not fallen to its lowest level in over three years”.

“While many Americans may incorrectly credit the upcoming election for the declines, politicians have little influence over the strong seasonal forces that drive prices lower in autumn,” Patrick De Haan, head of petroleum analysis at GasBuddy, said last week.

“With winter gasoline soon to reach the rest of California, and demand continuing to decline as Americans grapple with colder weather, the drop in demand is pushing gas prices down — not politicians on either side, as much as they might like to think they do. I expect the decline in gas prices will continue into and even beyond the upcoming election.”

Some 20 U.S. states are now enjoying gas prices under $3 per gallon, with the lowest prices in Texas, at $2.63 per gallon as of Monday. California continues to suffer the highest prices, at $4.548 per gallon.

Analysts largely believe that the presidential elections will have minimal impact on gas prices, with seasonal adjustments the main driver, despite the fact that American voters tend to perceive gas prices as a direct indicator of the health of the economy.

By Charles Kennedy for Oilprice.com

ABOUT TIME

Trudeau Government Orders Canadian Oil & Gas Firms To Cut Emissions

By Charles Kennedy - Nov 04, 2024, 12:30 PM CST


Canada is unveiling on Monday its plan to cap emissions from the most polluting sectors, including a requirement for oil and gas operators to reduce their greenhouse gas emissions by one-third by 2032.

At the end of last year, Canada’s federal government introduced a draft framework to cap pollution from the oil and gas sector to reduce emissions.

The plan proposes to cap 2030 emissions at 35% to 38% below 2019 levels while providing compliance flexibilities to emit up to a level about 20 to 23% below 2019 levels.

The government has said that it would publish the final version of the legislation by the end of 2024.

In the plan expected to be published in detail later on Monday, the government would be seeking to force oil and gas producers to have their emissions decline by 35% compared to 2019 levels sometime between 2030 and 2032.

“I think everyone should do their fair share,” Canada’s Environment Minister Steven Guilbeault told The Canadian Press in an interview ahead of the news conference to announce the plan.

“I think most Canadians — even those that aren’t my biggest fans — would agree that it’s not OK for a sector to not be doing its share, and that’s mostly what this regulation is about,” Guilbeault added.

The minister told The Canadian Press that the emissions reduction plan would face a backlash, but that the government is committed to advancing its climate goals.

The chief executives of Canadian oil sands producers have already spoken against plans by the federal government to impose a cap on emissions from oil and gas production.

Separately, the Business Council of Canada issued a statement on Monday, saying that “At a time when Canada’s economy is stalling, imposing an oil and gas emissions cap will only make Canadians poorer. Strong climate action requires a strong economy. This cap will leave us with neither.”

“Today’s announcement ahead of the U.S. presidential election also sends the wrong signal to our most important trading partner that looks to Canada as a secure and reliable source of energy,” the council added.

“A de facto cap on oil and gas production would restrict cross-border energy trade and harm our shared economic and security interests.”

By Charles Kennedy for Oilprice.com

COP29 to Shape the Future of Climate Finance

By City A.M - Nov 04, 2024

COP29, also known as the 'finance COP,' will focus on mobilizing private sector finance to support climate action in developing countries.

Key priorities for COP29 include formalizing the New Collective Quantified Goal on Climate Finance (NCQG) and discussing updated National Determined Contributions (NDCs).

The UK is leading efforts to mobilize private finance for net zero, with a focus on public-private collaboration and innovative financial solutions.



Policymakers are descending on Baku for COP29 to mobilise finance to support climate action in developing countries – and London is leading those efforts, says Chris Hayward

Hundreds of ministers, policymakers and financiers descending on Baku this month for COP29 will be met by an in-tray of crucial climate policy decisions. Dubbed the ‘finance COP’, this year’s conference puts the private sector at centre stage as governments debate who pays for the trillions of dollars required globally for the transition to net zero.

Key priorities for the negotiations include The New Collective Quantified Goal on Climate Finance (NCQG) which is set to be formalised at COP29. The outcomes of these discussions will be critical for mobilising finance to support climate action in developing countries. With the right outcome from the negotiations, the NCQG will provide a more ambitious financial framework for climate finance, foster global partnerships and generally strengthen the global response to climate change. Private sector support, with a particular focus on the mechanisms to deploy finance, will be critical to success.

In addition to this, governments will also discuss their updated National Determined Contributions (NDCs) which they have until February 2025 to submit outlining their plans for reducing emissions and adapting to climate change. More than ever, private finance will play a central role in the successful implementation of the plans put forward by companies.

Both within and beyond the formal negotiations, we are expecting a significant focus on the role of transition finance in reaching Net Zero. BloombergNEF estimates that to match their ‘economic transition’ scenario, annual investment must increase to $6.7 trillion per year. In the UK alone, a total of £2.7 trillion of investment is required between 2021 and 2035 to meet the nation’s net zero commitments – accounting for a five-fold growth in investments to approximately £50bn per year in 2030.

In the UK alone, a total of £2.7 trillion of investment is required between 2021 and 2035 to meet the nation’s net zero commitments

The world is still recovering from the economic shocks of Covid, the Ukraine war and subsequent high inflation. It is clear that government coffers alone will not be sufficient to fund the action needed to reach net zero. Private sector must be centre stage. The recently published Transition Finance Market Review which was co-sponsored by HM Treasury and the Department for Energy Security and Net Zero, with the secretariat being hosted and co-led by the City of London Corporation, highlights the need for innovative public-private sector collaboration. The Review recognises that governments must provide a level of certainty and clarity on climate action to drive private sector commitments. This includes calling for a new ‘Transition Finance Lab’ that will allow the development and testing of these financial solutions to ensure they are robust and market appropriate, and a Transition Finance Council – convened by the Corporation – which will monitor the UK’s progress on transition finance.

I will be attending COP29 representing the City of London Corporation as we continue to demonstrate the role of the UK as a one-stop shop for sustainable finance. Just last week Z/Yen’s latest Global Green Finance Index showed London retained its leading position for a third year running above New York, Paris and Singapore. We continue to champion the role of London as a leading finance centre in supporting ambitious outcomes to the negotiations at COP. For example, before the summer, Mansion House hosted the second High-Level Energy Transition Dialogue led by the COP29 Presidency and the International Energy Agency (IEA) discussing the role of private finance in the energy transition alongside international ministers and financial services leaders.

These debates and discussions are happening regularly with high engagement among financial services leaders in the Square Mile and the UK more broadly. This same zeal from the private sector must travel to Baku.

By City AM

CRIMINAL CAPITALI$M

Trafigura Facing $1.1B In Losses After Multi-Year Fraud

By Alex Kimani - Nov 04, 2024,

Trafigura is facing potential losses of up to $1.1 billion due to alleged fraud by employees tied to overdue debts in Mongolia.

This new scandal comes as Trafigura’s profits have dropped 73% compared to last year.
The recent financial hits signal the end of record profits seen during COVID-19 and the Ukraine war.


Back in June, we reported that Singapore-based oil and commodities trading powerhouse Trafigura Group was still dealing with the fallout of a massive nickel scam that rocked global metal markets in 2023, as well as the effects of past corruption scandals. Trafigura has grown into one of the biggest diversified commodities traders in the world: last year, the firm traded an average of 5.5 mn barrels of oil a day--the equivalent of the combined oil demand of the UK, France and Germany--and sold more than 100 million tonnes of metals and bulk commodities, including coal. Trafigura’s full FY 2023 revenue of $244 bn surpassed that of British oil major BP Plc. (NYSE:BP).

Well, it appears that scandals are not about to depart from the giant oil trader. Bloomberg has reported that Trafigura is facing a loss of up to $1.1 billion in Mongolia, linked in part to suspected fraud by its own employees.

According to Bloomberg, the company’s staff manipulated payments while concealing a mountain of overdue debts, a malpractice that continued for years without raising any red flags. Speaking privately, nine bankers have described the potential loss as ‘astounding’, considering Mongolia’s consumption of ~35,000 barrels a day is worth roughly $1 billion a year, or less than 0.3% of the oil traded by Trafigura.

“The key question, as always, is how quickly and effectively one learns from mistakes and implements corrective measures. Not merely by reshuffling or dismissing staff and launching a lengthy recovery process, but by strengthening the company’s governance, internal processes, and controls,” said Jean-Francois Lambert, a consultant and former commodity banker.


Mongolia does not issue import licenses to international companies such as Trafigura, making it impossible to directly supply the local market. This means that traders must rely on local distributors; Lex Oil LLC in Trafigura’s case.

The Mongolian company has been taking Trafigura’s oil products on credit and selling them on to fuel retailers, with an agreement that Lex Oil would pay in the future after making deductions for customs and freight duties.

Further complicating matters is the fact that Lex Oil has been providing credit to its own customers, while hedging transactions. Unfortunately, Trafigura’s accountants in Singapore and Geneva failed to recognize just how big Trafigura’s exposure in Mongolia had grown over the years, even as the bills hadn’t been paid when they were due.

Last year, Trafigura reported that it had found “deliberate concealment of overdue receivables” but said the alleged misconduct was not limited to hiding the debt. The company revealed that for years, its employees manipulated data and documents to misstate the calculations for charges like customs and freight.

Trafigura Profit Drops 73% As Oil Price Boom Fades

Trafigura is likely to take a big write-down for its latest scandal, which comes at a time when its profits are shrinking. Back in June, the company posted the smallest profit since the 2020 oil crisis as volatility in energy markets hit new lows. Trafigura’s net profit dropped to $1.47 billion in the six months through March, good for a 73% decline from a record $5.5 billion posted a year earlier. Trafigura’s revenue fell 5.4% to $124.2 billion, while group equity increased to $17.3 billion.

The company’s energy division saw operating profit before depreciation and amortization drop by half, to $3.35 billion while the metals division recorded a 11% increase from a year earlier thanks to easier comps after the company took a large impairment charge for an alleged nickel fraud. Trafigura is still dealing with the fallout of a massive alleged nickel scam that rocked global metal markets last year, as well as the effects of past corruption scandals, as detailed by the Financial Times.

“In a less stressed environment than the same period a year ago, demand for our services remained strong,” Chief Executive Officer Jeremy Weir said in the report published on Thursday. “In the near term, supply chain disruptions continue to persist, including due to ongoing threats in the Red Sea and commodity markets remain vulnerable to sudden shocks and price spikes.”

The latest set of results signals that a period of record profitability for the commodities trading industry fueled by Covid-19 and Russia’s war in Ukraine is coming to an end. The past three years have seen dramatic price swings that tend to favor commodities traders. For some time now, Trafigura and its peers have warned that the blowout profits they have been posting over the past couple of years are unlikely to be sustained over the long-term, although many industry experts believe that the baseline has been set higher.

By Alex Kimani for Oilprice.com

Australian rare earths developer ASM eyes US defence funding

Reuters | October 29, 2024

ASM is developing its Dubbo rare-earths project in New South Wales.

 (Image courtesy of Australian Strategic Materials .)

Rare earths developer Australian Strategic Materials (ASM) sees more funds becoming available for rare earths projects from the United States Department of Defence even if there is a change in administration, its CEO said on Tuesday.


Rare earths have strong magnetic qualities which make them key to applications from smart phones to laser guided missiles. Australia is classified as a domestic supplier to the United States for defence purposes.

“The magnet supply chain is actually in a really good position, regardless of which (US) government comes in,” CEO Rowena Smith told Reuters.

Smith said that Australian firms can potentially access US Department of Defence funding under the newly set up Office of Strategic Capital.

“When I met with them, they were… very confident that they had bipartisan support,” she told Reuters on the sidelines of the International Mining and Resources Conference (IMARC) conference in Melbourne.

“They’re expecting to come out of this calendar year with momentum. They asked me to come back February and talk to them again. So yeah, we’re feeling very optimistic of regardless of what the outcome is,” she said.
Context

ASM has been building funds to finance the development of its Dubbo rare earths project in Australia’s New South Wales state. It estimated in late 2021 that the project would cost A$1.678 billion ($1.10 billion).

ASM has already received a letter of interest for a debt funding package of up to $400 million from Canada’s official export credit agency and a promises for $600 million from the US Export-Import bank.

The Pentagon’s Office of Strategic Capital has recently been set up to distribute funds that are meant to seed investment in the defense industrial base’s supply chain.
What’s next

ASM is targeting a final investment decision for the first half of 2026 although a study is underway to potentially fast track production.

($1 = 1.5223 Australian dollars)

(By Melanie Burton; Editing by Michael Perry)

Brazil prepares to remove illegal Amazon gold miners from Munduruku land

Reuters | November 4, 2024  

Aerial view of Tapajos River (Credit: Shutterstock)

Brazilian authorities are preparing to remove illegal gold miners from an Indigenous reservation in the Amazon rainforest that has been criss-crossed with informal airstrips and contaminated with mercury, an official said.


The Munduruku territory covers nearly 24,000 square km (9,000 square miles), about the size of the US state of New Hampshire, and is home to 61 villages of Munduruku, Apiacas and other Indigenous groups in an area known for violent land disputes.

The Munduruku reservation has the second-most illegal mining in Brazil, according to a report seen by Reuters from government agency Censipam, which manages operations protecting the Amazon.

Brazilian President Luiz Inacio Lula da Silva has vowed to fight illegal mining on Indigenous lands after a surge under his predecessor Jair Bolsonaro.

Illegal gold miners have poisoned rivers and triggered public health crises on Indigenous reservations, which are the responsibility of the federal government.

The planned operation will involve federal bodies from the Defense Ministry to Indigenous affairs agency Funai, Nilton Tubino, who has been coordinating similar efforts in the Yanomami territory in far northern Brazil, told Reuters.

The Yanomani territory, where illegal miners have also been vectors for malaria and other contagious disease, has seen the most illegal mining, Censipam says.

Authorities have identified 21 informal airstrips in the Munduruku territory providing supplies for mining activity, the Censipam report showed. Turbino said the operation would aim to cut supplies for illegal activities in partnership with Brazil’s fuel and aviation regulators.

The Censipam report showed that 388 new illegal mining spots opened in the Munduruku territory in 2022, the last year of the Bolsonaro administration, falling to 128 last year and 23 so far this year.

Tubino said the government would avoid inflaming any conflicts with the operation.

(By Ricardo Brito and Andre Romani; Editing by Brad Haynes and Alison Williams)

JV Article: Wall of Water fire suppression system protects mines from raging forest fires

Northern Miner Staff | November 4, 2024 | 

The Wall of Water portable trailer contains either a 20 or 35 horsepower pump, complete with suction line, floating intake filter and supply hoses with a manual attack nozzle for extinguishing established fires. Credit: Wall of Water

An Ottawa-based company has developed a new fire prevention technology for mines and exploration camps susceptible to the increasing prevalence of forest fires. The patented fire prevention technology, described by Wall of Water (WOW) president David McKeen “as a sprinkler system on steroids,” is designed to propel a wall of water toward buildings and equipment to protect them from a raging wildfire.

“If a building in the path of a forest fire remains dry, there’s little chance of saving it from flying embers unless it’s soaking wet and that’s what my equipment does,” McKeen said.

The WOW product family consists of portable trailers that can be stored when not in use and moved into place at will; fixed mount tripods; roof mount guns; and ancillary support equipment such as self priming electric start pumps, hoses, manifolds, fittings and gun tips.

A Wall of Water fixed mount tripod can propel water 137 metres in diameter and up to 15.2 metres high. Credit: Wall of Water

Trailers, tripods and roof top units can be daisy chained and powered by pumps of up to 650 horsepower to protect the desired real estate.

McKeen describes the trailers as being equivalent to “mini fire pumper trucks.” Trailers are equipped with a pump, fuel tank, 4.3-metre-high sprayer mast, water intake/supply hoses and a gun. The sprayer will throw a wall of water up to 137 metres in diameter and up to 15.2 metres high, soaking the roof and sides of a building along with surrounding vulnerable fuel sources. Sprayer towers have a fully adjustable gun pitch angle and rotation sweep. Once deployed, the deluge of water will rotate autonomously for as long as fuel and the water supply are available.

Standard fully equipped trailers include either a 20 or 35 horsepower pump, complete with suction line, floating intake filter and supply hoses with a manual attack nozzle for extinguishing established fires. The complete system can be deployed within 15-20 minutes by two men, taken to a location by means of a pick-up truck, off road UTV, helicopter or watercraft to any remote location.

The Wall of Water fire suppression system can propel water 137 metres in diameter and up to 15.2 metres high. Credit: Wall of Water

Water can be sourced from a hydrant system, lake, river, ocean, or other water body using the suction line equipped with a floating filter that avoids intake of debris.

The pumps can be fuelled by gas, diesel or propane. To protect an unmanned exploration camp, systems can be started remotely via satellite or cellular connectivity. Fuel tanks are sized to operate for a minimum of 24 hours.

Permanent fixed mount tripods are anchored in the ground with one leg consisting of a water supply pipe and the attached water gun which is fully adjustable for pitch angle and rotation sweep.

McKeen came up with the idea while watching TV and witnessing the devastation of entire communities levelled to the ground and people losing their homes, businesses and livelihoods. “It really bothered me seeing so many people suffering from these disasters and losing absolutely everything,” he said.

A technically savvy entrepreneur with no background in firefighting, McKeen worked with Ontario fire truck manufacturer Battleshield Industries south of Ottawa to help design the initial system. Further refinements along with extensive testing continued with his current manufacturer Cadman Power Equipment in southern Ontario until performance goals were achieved and proven.

To succeed at bringing WOW to the masses, McKeen’s team has implemented a marketing strategy to introduce WOW to municipal first responders, private home and cottage owners, businesses, Indigenous communities and resorts located in forested areas.

A chance meeting with an employee from a large northern Ontario mining company at a Cottage Life trade show in Toronto introduced McKeen to the vulnerability of Canada’s mining operations, many of which are located in remote areas.

Canada’s 2023 wildfire season was the most destructive ever recorded with more than 6,000 fires torching a staggering 150,000 sq. km of forest. That’s an area larger than England and more than double the 1989 record, according to Natural Resources Canada.

Hecla Mining (NYSE: HL), Agnico Eagle Mines (TSX: AEM; NYSE: AEM), Eldorado Gold (TSX:ELD; NYSE: EGO) and Wesdome Gold Mines (TSX: WDO; US-OTC: WDOFF) were among more than a dozen Canadian mining operations that either shut down and evacuated their staff or forced the cancellation of some shifts in June 2023.

The 2024 wildfire season, according to Natural Resources Canada, consisted of more than 5,000 fires affecting more than five million 50,000 sq. km. In July, Champion Iron Mines (TSX: CIA; ASX: CIA; US-OTC: CIAFF) suspended operations at its Bloom Lake site in northeastern Quebec, and in August, SSR Mining (TSX: SSRM; NASDAQ: SSRM; ASX: SSR) evacuated its employees and shut down its Seabee gold mine 125 km northeast of La Ronge, Sask., resuming operations only in mid-October. While the mine itself wasn’t materially impacted by the fire, the company reported damage to power poles, piping and exploration equipment.

According to McKeen, WOW products have been delivered to a large remote mine in Ontario. The Ontario mine has opted to sole source several products to measure their effectiveness with a group of stationary fixed mount tripods to protect an essential building area using its own pumps and water supply infrastructure. Once the coverage area and optimum positioning of the tripods are verified, additional tripod units along with custom designed roof top sprayers will be added for further thorough encampment and work zone equipment protection.