HONOLULU: In an eleventh-hour push for environmental protection before he leaves office, President Barack Obama is placing an indefinite ban on oil drilling in huge swaths of the Arctic and Atlantic oceans.
The move helps put some finishing touches on Obama’s environmental legacy while also testing President-elect Donald Trump’s promise to unleash the nation’s untapped oil and natural gas reserves. Environmental groups were hoping the ban, despite relying on executive powers, would be difficult for a future president to reverse.
A permanent ban would mark the culmination of a slow reversal by Obama’s administration, which had been considering opening a broad area of the Atlantic Coast to drilling, but then backed away from that idea. Earlier this year, the administration removed potential Atlantic lease sales from its blueprint for offshore drilling. But that ban only applies to a five-year period starting in 2017, and could be more easily reversed by Trump in his own five-year blueprint.
In issuing a permanent ban, Obama appears to be trying to tie the hands of his successor. Trump has vowed a domestic energy revolution and is filling his Cabinet with nominees deeply opposed to Obama’s environmental and climate change actions.
Along the Atlantic seaboard, states have had mixed reactions to the possibility of drilling. In Florida, the administration of Gov. Rick Scott, a Trump supporter, has raised concerns about the possible effects to the state’s beaches and fishing industry, and residents in North Carolina’s Outer Banks protested a move toward ocean drilling. But officials in South Carolina and Virginia have expressed support for the economic benefit of new oil jobs.
Environmental groups were calling for a permanent ban even before the presidential election, but Trump’s victory has provided greater urgency for them and for businesses that rely on tourism and fishing. Trump has said he intends to use all available fuel reserves for energy self-sufficiency — and that it is time to open up offshore drilling.
Industry groups are confident that the ban will not stand and Trump can simply issue a new proclamation after taking office that would allow for oil and gas production in the Atlantic. They point to President George W. Bush, who in July 2008 lifted some executive bans on Outer Continental Shelf leasing and drilling.
“There is no such thing as a permanent ban,” said Erik Milito, a policy director at the American Petroleum Institute.
But Niel Lawrence, a senior attorney at the Natural Resources Defense Council, said the result of a Trump proclamation is not so clear-cut. He said the statute says a president can withdraw waters from the country’s leasing plans and “it does not say you can put back in.”
If Trump does issue an order reversing Obama’s proclamation, it would be up to environmental groups or others to challenge his actions in court. If he does not, then it would be up to Congress to intervene.
“My guess is that Congress has better things to do,” Lawrence said. “The industry is not clamoring to get into these places. Any return on investment is decades away.”
The Trump administration could also take a more gradual approach of changing the nation’s five-year leasing plan to put the waters back in play. That would buy groups on both sides time to make their case about the need or lack thereof to drill off the Atlantic coast.
Milito said keeping oil and gas production in the Atlantic as an option is important in the event US reserves elsewhere are depleted. The US should not have to rely on other countries for oil and gas supplies to ensure affordability and availability, he said.
“We have to look to the future so that we can maintain our status as an energy superpower and so that we can continue to rely on US oil and gas production to fulfill our economic needs,” Milito said.
Fourteen senators have signed a letter calling on Obama to ban offshore drilling permanently. Sen. Robert Menendez, D-N.J., disputed the notion that future administrations could undo Obama’s order without congressional approval.
“Declaring the Atlantic and the Arctic off-limits to Big Oil is a step the president can take immediately to show that we as a nation are committed to the future of our shore towns, our beaches and our environment,” Menendez said.
Obama bans oil drilling in Arctic, Atlantic oceans
Obama bans oil drilling in Arctic, Atlantic oceans
Xi calls for more jobs for youth, migrant workers
- (We should) insist that employment of young people including college graduates is a top priority: Chinese president
BEIJING: China’s President Xi Jinping called on Monday for efforts to promote high-quality and sufficient jobs for college graduates and migrant workers, while presiding over a Politburo group study session, state media Xinhua reported on Tuesday.
“(We should) insist that employment of young people including college graduates is a top priority,” the Xinhua report quoted Xi as saying at a group study session of the Politburo, a top decision-making body of the ruling Communist Party.
The Xinhua report did not give details on job promotion support measures or plans.
The survey-based jobless rate for 16-24 year-olds, excluding college students, was 14.7 percent in April, down from 15.3 percent in March, official data showed last week.
China’s statistics bureau revised its methodology by removing college students from the survey pool after youth jobless rate surged to around 20 percent last year.
Xi also said the government should take steps to promote the employment of migrant workers, guide them to return to their hometowns and for people to start businesses in the countryside.
He called for stabilizing the income of people who had been lifted out of poverty and preventing large-scale return to poverty due to unemployment, Xinhua said.
Companies and industries with strong job creation capabilities will be supported, the report said.
China created 4.36 million new urban jobs in the first four months, Human Resources Ministry data showed, 36 percent of its annual job creation target.
Saudis spent more money on electronic devices during the 4th week of May: SAMA data
RIYADH: Saudi Arabia’s point-of-sale spending reached SR11.2 billion ($2.98 billion) in the fourth week of May, official figures showed.
The latest data from the Saudi Central Bank, also known as SAMA, revealed that spending on electronic and electric devices surged by 9.5 percent to reach SR240.4 million.
Beverages and food, which accounts for the largest share at 14.9 percent, saw a 5.9 percent decline, reaching SR1.66 billion, during the week from May 19 to 25.
Meanwhile, transactions at restaurants and cafes, holding a 14.6 percent share, recorded a slower decline of 4.8 percent, amounting to SR1.64 billion.
Saudi spending on miscellaneous goods and services, including personal care items, supplies, maintenance, and cleaning, constituted the third-highest share and witnessed a 5.1 percent decline that week, reaching SR1.36 billion.
Despite composing only 1 percent of the week’s overall POS value, spending on education recorded a minimal increase of 0.1 percent to SR152.48 million.
In the past few years, this sector has been allocated the largest share of government expenditure in comparison to other divisions of the economy.
Efforts are underway to revamp the education system, aiming to equip the national workforce with the necessary skills to thrive in a technological and information-centric global economy.
The hotel sector experienced the largest decline in POS transaction value, dropping 10.9 percent to SR227.13 million.
According to data from SAMA, 35.44 percent of POS spending occurred in Riyadh, with the total transaction value reaching SR3.97 billion. However, this represents a 1.6 percent decrease from the previous week.
Riyadh has undergone considerable expansion, evolving into a pivotal center for growth and progress. The city is witnessing a surge in new businesses setting up operations, drawn by its vibrant economic landscape and strategic prospects for investment and innovation.
Spending in Jeddah followed closely, accounting for 14.3 percent of the total and reaching SR1.60 billion; however, it marked a 3.1 percent weekly drop.
The two cities that registered the highest declines in POS spending were Makkah and Madinah, with decreases of 11 percent and 6.8 percent, respectively. The value of transactions in Makkah reached SR380.98 million, while in Madinah, it was SR393.26 million.
Saudi healthcare to advance with major digital tech partnership
RIYADH: The Saudi healthcare system is set to advance as two of the country’s major companies partner to leverage digital technologies to enhance the Kingdom’s capabilities.
SAMI Advanced Electronics Co., a wholly owned subsidiary of SAMI, the nation’s defense and digital solutions provider, has signed a cooperation agreement with the National Unified Procurement Co., a Public Investment Fund company.
The agreement, signed on May 27, will provide solutions for medication tracking and IT infrastructure and increase local content through medical devices manufacturing and maintenance.
This partnership demonstrates SAMI-AEC’s unremitting efforts to build a harmonious and applicable healthcare system in Saudi Arabia based on digital technologies.
Ziad Al-Musallam, CEO of SAMI-AEC, commented on the agreement, saying that they are honored to collaborate with NUPCO, as this deal underscores the unwavering commitment of both entities to bolstering efforts aimed at enhancing the healthcare ecosystem in Saudi Arabia.
“At SAMI-AEC, we firmly believe in the significance of augmenting public health services through digital solutions and delivering e-health services. This involves integrating effective, fast technologies to empower the healthcare sector, aligning with the objectives of Saudi Vision 2030,” he said.
Fahad Al-Shebel, CEO of NUPCO, highlighted the agreement’s importance and its role in fortifying the healthcare infrastructure and facilitating access to the integrated technology offered by SAMI-Advanced Electronics Co.
Aiming to upgrade the healthcare sector by improving its facilities in all public hospitals and medical centers in the Kingdom, NUPCO is the country’s largest central company providing medical purchasing, storage, and distribution services for medicines, devices, and supplies.
With a workforce of over 3,320 individuals, 85 percent of whom are Saudi nationals, SAMI-AEC has positioned itself as a leader in electronics, technology, engineering, and manufacturing. Its services span sectors such as defense and aerospace, digital, energy, and security.
Over 800 of the company’s employees are engineers and certified experts, reaffirming the dedication of SAMI-AEC, which was established in 1988, to excellence and innovation.
On the other hand, NUPCO was established in 2009 with SR1.5 billion in capital. It is the leading company in Saudi Arabia in procurement, logistics, and supply chain management for pharmaceuticals, medical devices, and supplies for governmental hospitals.
Closing Bell: Saudi main index continues downward trend to close at 11,660
RIYADH: Saudi Arabia’s Tadawul All Share Index continued its downward movement for the third consecutive session this week, as it shed 171.28 points to close at 11,659.94 on Tuesday.
The total trading turnover of the benchmark index was SR5.34 billion ($1.42 billion), with 23 stocks advancing and 202 declining.
The Kingdom’s parallel market, Nomu, also slipped by 0.81 percent to 26,234.79, while the MSCI Tadawul Index shed 20.97 points to close at 1,449.44.
The best-performing stock on the main index was Sustained Infrastructure Holding Co. The firm’s share price soared by 6.2 percent to SR34.25.
Other top performers were the Mediterranean and Gulf Insurance and Reinsurance Co. and AYYAN Investment Co., whose share prices edged up by 3.98 percent and 3.63 percent respectively.
The worst-performing stock on the benchmark index was Saudi utility giant ACWA Power, as its share price slid by 4.68 percent to SR456.60.
On the announcements front, Etihad Atheeb Telecommunication Co. said that it was awarded two projects worth SR45.51 million by Technical and Vocational Training Corp. to provide dedicated Internet services in 77 locations.
In a Tadawul statement, the telecommunication provider said that the first project has a value of SR23.64 million, while the second one amounts to SR21.87 million.
Meanwhile, Mouwasat Medical Services Co. announced that its shareholders have approved the board’s recommendation to distribute a 17.5 percent cash dividend, or SR 1.75 per share for 2023.
In March, Mouwasat Medical Services Co. had revealed that its net profit witnessed a growth of 10 percent in 2023 to SR657.7 million, compared to the previous year.
Al Moammar Information Systems Co., on Tuesday, revealed that it received new orders to increase the capacity of data centers at a total value of SR 75.2 million.
In a statement to Tadawul, the company added that further developments of the order will be unveiled in due course.
PIF’s Halal Products Development Co. invests in Singapore-based cosmetics firm
RIYADH: In a bid to localize the Kingdom’s cosmetics and personal care industry, the Halal Products Development Co. announced an investment in a Singapore-based fast-moving consumer goods conglomerate.
The Public Investment Fund-owned company signed a binding agreement with Believe — a company specializing in the halal cosmetics and personal care field.
As per the agreement, the company will relocate its headquarters from Singapore to Saudi Arabia and establish a factory to manufacture its products, the Saudi Press Agency reported.
The new headquarters will also serve as a major center for exporting the company’s products to various countries of the world.
This move is in line with the PIF-owned firm’s goal to strengthen the halal industries in Saudi Arabia and provide high-quality products compatible with Islamic standards.
Halal Products Development Co. CEO Fahad Al-Nuhait said that investing in this sector is a very important first step that serves as a major catalyst for developing and localizing the manufacturing of halal cosmetics and personal care.
In return, this is expected to raise the efficiency of the sector and support research as well as development efforts to improve the services provided locally and globally, Al-Nuhait added.
The CEO said it will also facilitate the transfer of the expertise and resources to the Kingdom.
Moreover, it will also contribute to achieving the goals of the Kingdom’s Vision 2030 by creating direct and indirect job opportunities.
Believe CEO Ankit Mahajan said this partnership represents a strategic opportunity to expand the scope of investment and boost manufacturing capabilities.
The agreement will also provide contract manufacturing services for local brands in the initial stage and will expand to international brands in the future.
In August, Halal Products Development Co. signed a strategic cooperation agreement with the Saudi Exports Development Authority to launch the Halal Products Manufacturing Accelerator Program.
According to a statement, the new program came amid the Kingdom’s efforts to become a global hub for halal food products and accelerate the growth of the sector.
