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Satellite photos show aftermath of Abu Dhabi oil site attack

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DUBAI, United Arab Emirates (AP) — Satellite photos obtained by The Associated Press on Tuesday appear to show the aftermath of a fatal attack on an oil facility in the capital of the United Arab Emirates claimed by Yemen’s Houthi rebels.

The attack brought the long-running Yemen war into Emirati territory on Monday. That conflict raged on overnight with Saudi-led airstrikes pounding Yemen’s capital, Sanaa, killing and wounding civilians.

Meanwhile, fears over new disruptions to global energy supplies after the Abu Dhabi attack pushed benchmark Brent crude to its highest price in years.

The images by Planet Labs PBC analyzed by the AP show smoke rising over an Abu Dhabi National Oil Co. fuel depot in the Mussafah neighborhood of Abu Dhabi after the attack. Another image taken shortly after appears to show scorch marks and white fire-suppressing foam deployed on the grounds of the depot.

The Abu Dhabi National Oil Co., known by the acronym ADNOC, is the state-owned energy firm that provides much of the wealth of the UAE, a federation of seven sheikhdoms on the Arabian Peninsula and also home to Dubai.

ADNOC did not respond to questions from the AP asking about the site and damage estimates from the attack. The company had said the attack happened around 10 a.m. Monday.

“We are working closely with the relevant authorities to determine the exact cause and a detailed investigation has commenced,” ADNOC said in an earlier statement.

The attack killed two Indian nationals and one Pakistani as three tankers at the site exploded, police said. Six people were also wounded at the facility, which is near Al-Dhafra Air Base, a massive Emirati installation that is also home to American and French forces.

Another fire also struck Abu Dhabi International Airport, though damage in that attack could not be seen. Journalists have not been able to view the sites attacked and state-run media have not published photographs of the areas.

Police described the assault as a suspected drone attack. The Houthis claimed they used cruise and ballistic missiles in the attack, without offering evidence.

Meanwhile Tuesday, the Saudi-led coalition fighting in Yemen announced it had started a bombing campaign targeting Houthi sites in the capital of Sanaa. It said it also struck a drone-operating base in Nabi Shuaib Mountain near Sanaa.

Overnight videos released by the Houthis showed damage, with the rebels saying the airstrikes killed at least 14 people. Sanaa resident Hassan al-Ahdal said one airstrike hit the house of Brig. Gen. Abdalla Kassem al-Junaid, who heads the Air Academy. He said at least three families were living in the house. Another adjunct house with a four-member family was damaged.

The Saudi-led coalition has faced international criticism for airstrikes hitting civilian targets during the war.

For hours Monday, Emirati officials did not acknowledge the Houthi claims over the Abu Dhabi attack, even as other countries condemned the assault. Senior Emirati diplomat Anwar Gargash broke the silence on Twitter, saying that Emirati authorities were handling the rebel group’s “vicious attack on some civilian facilities” with “transparency and responsibility.”

The office of South Korean President Moon Jae-in, who had been in the Emirates on a state visit, said he spoke to Abu Dhabi’s powerful Crown Prince, Sheikh Mohammed bin Zayed Al Nahyan, immediately after the attack.

The statement quoted Sheikh Mohammed as saying the attack had been “anticipated.” The two had been scheduled to meet during Moon’s visit but the event had been cancelled prior to the attack over an “unforeseen and urgent matter of state,” according to Moon’s office.

The Emirati Foreign Ministry did not immediately respond to a request for comment over Moon’s statement.

Fears over future attacks reaching the UAE, a major oil producer and OPEC member, helped push Brent crude oil prices to their highest level in seven years. On Tuesday, a barrel of Brent crude traded at over $87.50 a barrel, a price unseen since October 2014.

Although the UAE has largely withdrawn its own forces from Yemen, it is still actively engaged in the conflict and supports Yemeni militias fighting the Houthis.

The incident comes as the Houthis face pressure and are suffering heavy losses on the battlefields. Yemeni government forces, allied and backed by the UAE, have pushed back the rebels in key provinces. Aided by the Emirati-backed Giants Brigades, the government forces took back the province of Shabwa earlier this month in a blow to Houthi efforts to complete their control of the entire northern half of Yemen.

While Emirati troops have been killed over the course of the conflict, now in its eight year, the war has not directly affected daily life in the wider UAE, a country with a vast foreign workforce.

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Associated Press writers Isabel DeBre in Dubai, Samy Magdy in Cairo and Kim Tong-hyung in Seoul, South Korea, contributed to this report.

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Follow Jon Gambrell on twitter at www.twitter.com/jongambrellAP.

Jon Gambrell, The Associated Press

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Alberta

Analysts say natural gas could go even higher after breaking 14-year record this week

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CALGARY — The price of natural gas hit heights not seen since 2008 this week and analysts say it could go even higher this summer.

The U.S. benchmark natural gas price hit is currently trading at around US$8.60 per million British thermal units, or MMBtu. It surged to over $9 earlier in the week.

Analysts say the price could break $10 this summer due to low inventories and global concerns about energy security.

Summer heat waves could also push prices higher by driving up electricity demand.

The surging prices are good news for Western Canada, where the country’s natural gas production is concentrated.

But an industry group says labour shortages remain an ongoing challenge for drillers.

This report by The Canadian Press was first published May 27, 2022.

The Canadian Press

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Economy

GOP directs culture war fury toward green investing trend

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By Sam Metz in Salt Lake City

SALT LAKE CITY (AP) — Republicans are coming out swinging against Wall Street’s growing efforts to consider factors like long-term environmental risk in investment decisions, the latest indication that the GOP is willing to damage its relationship with big business to score culture war points.

Many are targeting a concept known as ESG — which stands for environmental, social and governance — a sustainable investment trend sweeping the financial world. Red state officials deride it as politically correct and woke and are trying to stop investors who contract with states from adopting it on any level.

For right-wing activists who previously brought criticisms of critical race theory (CRT), diversity, equity and inclusion (DEI) and social emotional learning (SEL) to the forefront, it’s the latest acronym-based source of outrage to find a home at rallies, in conservative media and in legislatures.

ESG has yet to take hold as mainstream political messaging, but backlash against it is gaining steam. Last week, former Vice President Mike Pence attacked the concept during a speech in Houston. And on Wednesday, the same day he said on Twitter he planned to vote Republican, Elon Musk attacked it after Tesla lost its place on the S&P 500′s ESG Index. He called it a scam “weaponized by phony social justice warriors.”

The concept calls on investors to consider criteria such as environmental risk, pay equity or how transparent companies are in their accounting practices. Aided by recently proposed disclosure requirements and analysis from ratings agencies, they have adopted the principles to such an extent that those who use them control $16.6 trillion in investments held in the U.S.

In response, Republicans — historically known for supporting fewer regulations — are in many places attempting to impose new rules on investors. Their efforts reflect how members of the party are willing to distance themselves from big business to push back against those they see as ideological foes.

“I don’t think we’re the party of big business anymore. We’re the party of people — more specifically, we’re the party of working people. And the problem that we have is with big banks and corporations right now trying to dictate how we’re going to live our lives,” West Virginia Treasurer Riley Moore said.

Opponents criticize ESG as politicized and a potentially costly diversion from purely financial investment principles, while advocates say considering the criteria more accurately accounts for risk and promises steadier returns.

“We focus on sustainability not because we’re environmentalists, but because we are capitalists and fiduciaries to our clients,” Larry Fink, CEO of investment firm BlackRock and a leading proponent, told clients in a letter this year.

But Moore and others including Utah’s Republican state treasurer Marlo Oaks argue favoring green investment over fossil fuels denies key industries access to the financial system and capital. They have targeted S&P Global Ratings for appending ESG scores to their traditional state credit ratings. They worry that without changes, their scores could make borrowing for projects like schools or roads costlier.

In an April letter, Oaks demanded S&P retract analysis that rated Utah as “moderately negative” in terms of environmental risk due to “long-term challenges regarding water supply, which could remain a constraint for its economy … given pervasive drought conditions in the western U.S.”

The letter was co-signed by the governor, legislative leaders and the state’s congressional delegation, including Sen. Mitt Romney, whose former firm Bain Capital calls ESG factors “strategic, fact-based and diligence-driven.” It said ratings system “attempts to legitimize a dubious and unproven exercise” and attacks the “unreliability and inherently political nature of ESG factors in investment decisions.”

Though he likened ESG to critical race theory, Oaks said he was mostly concerned with capital markets and what he called attempts by fossil fuel opponents to manipulate them by pressuring investors to pick businesses with high ESG scores.

“DEI, CRT, SEL. It can be hard to keep up with the acronyms,” he wrote on an economics blog last month, “but there’s a relatively new one you need to know: ESG.”

Investors making carbon neutral or net zero criteria common were, in effect, Oaks said, limiting access to capital for oil and gas businesses, hurting their returns and potentially contributing to gas price spikes.

In more than a dozen red states, officials dispute the idea that the energy transition underway could make fossil fuel-related investments riskier in the long term. They argue employing asset managers with a preference for green investments uses state funds to further agendas out of sync with constituents.

In statehouses, anti-green investing efforts are backed by conservative groups such as the American Legislative Exchange Council and the Heartland Institute, a think-tank skeptical of scientific consensus on human-caused climate change that has backed bills that either divest state funds from financial institutions that use ESG or forbid them from using it to score businesses or individuals.

In Texas, West Virginia and Kentucky, lawmakers have passed bills requiring state funds limit transactions with companies that shun fossil fuels. Wyoming considered banning “social credit scores” that evaluate businesses using criteria that differ from accounting and other financial metrics, like ESG

After conservative talk show host Glenn Beck visited the Idaho Statehouse and referred to ESG as critical race theory “on steroids,” the Legislature passed a law in March prohibiting investment of state funds in companies that prioritize commitments to ESG over returns.

The American Legislative Exchange Council recently published model policy that would subject banks managing state pensions to new regulations limiting investments driven by what it calls “social, political and ideological” goals.

Though the policy doesn’t mention it outright, Jonathan Williams, the group’s chief economist, said ESG’s mainstreaming amid broader trends of political correctness was a driving force. He said his research shows that incorporating factors beyond traditional financial metrics can lower the rate of return for already underfunded state pensions.

Sustainable investing advocates deny that charge and say considering the risks and realities of climate change amounts to responsible investing.

West Virginia and Arkansas recently divested their pension funds from BlackRock in response to the asset manager adding businesses with smaller carbon footprints to its portfolios. Moore, West Virginia’s treasurer, hopes more will follow.

Though it’s drawing enthusiasm, the green investment discourse differs from recurring debates over gender and sexuality or how history is taught. Both proponents and detractors acknowledged they’re surprised pensions, credit ratings and investment decisions have become campaign rally fodder.

Last month at the Utah state party’s convention, thousands of Republicans roared when Sen. Mike Lee described green investment in similar terms to critical race theory — another acronym-based foil: “Between CRT and ESG and MSNBC, we get way too much B.S.,” Lee said.

Bryan McGannon, a lobbyist with US SIF: The Forum for Sustainable and Responsible Investment, said opponents were wrong in framing sustainable investing trends as political. If states refuse to reckon with how the future will likely rely less on fossil fuels and limit how environmental risk can be considered, he said, they’re making decisions with incomplete information.

“If a state’s not considering those risks, it may be a signal to an investor that this might not be a wise government to be putting our money with,” McGannon said. “Investors use a huge swath of information, and ESG is a piece of that mosaic.”

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Associated Press writers Stan Choe in New York and Lindsay Whitehurst in Salt Lake City contributed to this report.

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