Oil prices fall as US sequester cuts loom

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NEW YORK: Oil prices fell late in the session Thursday after trading slightly higher much of the day, with traders blaming portfolio adjustment on the final day of the month.

But prices were also soft as the United States appeared headed for slower economic growth due to mandated spending cuts that kick in beginning Friday.

New York's main contract, West Texas Intermediate crude for April delivery, lost 71 cents from late Wednesday, closing at $92.05 a barrel.

Brent North Sea crude for April fell 49 cents to $111.38 a barrel in London trade.

Prices were fairly stable much of the day, showing little impact from an improved but still disappointing revision to the US growth rate for the 2012 fourth quarter, to a positive 0.1 percent from the original estimate of a 0.1 percent contraction.

But late in the session support for WTI and Brent dropped out.

"That has a lot to do with the technical selling pressure that finally gave up towards the end of the day. Today is the last day of the month and you'll see some month-end rebalancing," said David Bouckhout of TD Securities.

The market also appeared well-supplied given the pace of the global economy, analysts said.

"Fundamentally, oil prices are unlikely to rise much in the short-term as demand remains weak and supply abundant," said Fawad Razaqzada of traders GFT Markets.

The US appeared headed for a growth slowdown as the US government's "sequester" budget cuts appeared likely to take effect Friday.

Economists warn the $85 billion in spending reductions for the next seven months will take off a 0.5 percentage point from potential growth, if politicians cannot find a last-minute compromise in White House talks Friday.

-AFP/ac



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Pictures: Saving Sumatra's Orangutans

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Photograph by Paul Hilton

A young boy shows off his illegally owned pet, a two-year-old orphaned orangutan that was later confiscated by SOCP and the local police, in April 2012.

When the team first discovered the ape, he'd been tied up to the back of the house in a village located on the outskirts of the Tripa peat forest.

A prompt health inspection by veterinarian Saraswati found that the young orphan was not in good health. "He's suffering from malnutrition, his skin is bad, and he has a wound from where he had been tied with a rope," she said in a statement.

Although trading and owning wildlife is illegal in Indonesia, the government does not impose strict penalties for those who are caught. Instead, they are only given a warning. (Watch video: "Grisly Wildlife Trade Exposed.")

According to Singleton, based on the number of cases reported to rescue centers since 1970 in Sumatra and neighboring Borneo, there have been at least 2,800 confiscations—only three of which he knows resulted in prosecution of the owners.

"People are not afraid of being arrested for it, and the only way to change that is to see more arrests and prosecutions," he said.

Published February 28, 2013

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Obama Admin to File Brief on Gay Marriage

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Solicitor General Donald B. Verrilli, plans to file a brief today with the Supreme Court in favor of challengers of Prop. 8, according to an administration source.


It would mark the first time that the Obama administration has come out in court against the California ballot initiative that defines marriage as between one man and one woman.


As far back as 2008, the president said that he thought Prop 8 was "divisive and discriminatory," but his Justice Department has never opined on its constitutionality. Because the DOJ is not a party to the case, it is not required to file a "friend of the court" brief, but the deadlines for briefs supporting the challengers to Prop 8 is tonight at midnight.






Justin Sullivan/Getty Images







Theodore Olson, one of the lead lawyers challenging Prop 8, told reporters last week that he hoped the DOJ lawyers would take the opportunity to set down a legal position.


In Depth: Obama's Prop 8 Decision


"However," Olson added, "whether they do or not, the president of the United States made it very clear in his inaugural address that we cannot rest in America until all civilians have equal rights under the law so, in a sense, the president has made that statement already."


Today, 39 states have laws restricting marriage to opposite-sex couples. This number includes voter-approved constitutional amendments in 30 states barring same sex marriage. Nine states allow gay marriage.


Related: Eric Holder Says Gay Marriage is the Next Civil Rights Issue


Related: Republican Moderates Join Legal Fight for Gay Marriage



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Football: Robben strikes as Bayern dump Dortmund out of cup

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MUNICH, Germany: Bayern Munich ended their three-year wait for a competitive win over Borussia Dortmund on Wednesday as Arjen Robben's first-half strike sealed a 1-0 German Cup quarter-final victory.

February 2010 had been the occasion of Bayern's last league or cup win over Dortmund -- a six-game stretch -- but Robben's thunderbolt two minutes before the break at the Allianz Arena was enough to put Munich in the last four.

A pre-season Supercup final win in Munich last August had been Bayern's only source of comfort against Borussia recently.

Despite having spent much of this season on Bayern' bench, Robben took over on the left-wing from France's Franck Ribery, who was suspended, to show coach Jupp Heynckes what he has been missing.

The 29-year-old ex-Chelsea and Real Madrid star sank to his knees and beat the turf at the final whistle in delight.

He has now scored in three of Bayern's last four games after netting in recent Bundesliga wins over Wolfsburg and the 6-1 drubbing of Werder Bremen last Saturday.

This was the clash of Germany's titans -- Bayern Munich, 17 points clear in the Bundesliga against defending league champions and cup holders Dortmund, who have dominated the top-tier of German football for the last two years.

Germany defender Mats Hummels dropped out the day of the game with flu and in his place Brazilian Felipe Santana partnered Neven Subotic at centre-back for Dortmund.

Robben's inclusion for the suspended Ribery was the only change from the team which won 3-1 at Arsenal in the Champions League just over a week ago.

Dortmund hammered Bayern 5-2 in last May's German Cup final, when Poland striker Robert Lewandowski netted a hat-trick.

If Wednesday's game needed extra spice, Lewandowski has been strongly linked to a move to Bayern with his contract to expire in 2014.

In a tight, nervy cup game, both teams had their opportunities.

The brightest chance of the first-half fell to Javi Martinez when his shot straight at Roman Weidenfeller was parried and the Dortmund goalkeeper scrambled back to grab the loose ball on 36 minutes.

Bayern kept up the pressure and when Dortmund's Marcel Schmelzer hit a weak clearance, Robben's shot from 18 metres clocked 115km/h (70mph) as it hit the top-right corner on 43 minutes for what proved to be the winner.

With Dortmund out, Bayern are now clear cup favourites and are on course to be the first team to win the treble of German league, cup and Champions League titles in their quest to end their three-year wait for silverware.

VfB Stuttgart, who beat third-division VfL Bochum 2-0, Wolfsburg and Freiburg are the other teams to go into the pot for Sunday's draw with the semi-finals to be held on April 16/17, with the final on June 1 in Berlin.

- AFP/ac



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Megadam Project Galvanizes Native Opposition in Malaysia

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Most villages along the Baram River in Malaysia cannot count on round-the-clock electricity. Diesel generators hum at night near longhouses in the northwestern corner of the island of Borneo. Mobile and Internet coverage are almost nonexistent.

A plan to dam the Baram River would generate power far in excess of current demand in the rainforest state: At 1,000 megawatts, the hydropower project would be large enough to power 750,000 homes in the United States.

Yet the promise of power rings hollow for many who live here.

Natives from the tribes of Penan, Kenyah, and Kayan have taken to their traditional longboats, traveling downstream to the town of Long Lama to voice opposition to the plan. (See related quiz: "What You Don't Know About Water and Energy.")

Baram is one of seven big hydropower projects that Malaysia's largest state, Sarawak, is building in a bid to lure aluminum smelters, steelmakers, and other energy-intensive heavy industry with the promise of cheap power. Together, the dams mapped out in the state government's sprawling $105 billion Sarawak Corridor of Renewable Energy (SCORE) plan would harness nearly as much river power as the largest generating station in the world, the massive Three Gorges Dam in China. (See related photos: "A River People Awaits an Amazon Dam.")

The Sarawak project is changing landscape and lives. The dam across the sinuous Baram River will submerge 159 square miles (412 square kilometers) of rain forest, displacing some 20,000 indigenous people.

Open acts of defiance are rare in Sarawak after three decades of authoritarian rule under the state's Chief Minister Abdul Taib Mahmud, who has long battled charges that he has amassed personal wealth by selling off swaths of the rain forest in corrupt deals with timber industry. But protests have become increasingly bold among indigenous people opposed to the megahydro plan. Last September, native tribes set up a blockade to protest the Murum River dam project in western Sarawak. And in January, the longboat protest came to Long Lama, with shouts of "Stop Baram Dam" in indigenous languages reverberating through the normally quiet town.

"I don't care if I'm not reappointed" as the village chief by the government, said Panai Erang, 55, an ethnic Penan, one of several chiefs openly against the state-backed project. "I have to speak out for my people."

Power Transformation

Baram Dam is part of a grand eonomic-development vision for Sarawak, which along with Sabah is one of two Malaysian states on the northern coast of Borneo (map), along the South China Sea. Borneo, shared with Indonesia and Brunei, is one of the largest islands in the world, and home to one of its oldest rain forests. (See related story: "Borneo's Moment of Truth")

Endangered species such as Hose's civet, the Borneo gibbon, and six different species of hornbills rely on the habitat. The Bornean bay cat, one of the most elusive cats in the world, was sighted near the upper Baram River last November. Sarawak boasts more than 8,000 unique types of flora and 20,000 species of fauna, including one of the world's largest butterflies, the Rajah Brooke Birdwing, and one of the most extensive cave systems on Earth.

Despite its natural resources, Sarawak's economy has lagged behind the rest of Malaysia. An ever-widening economic gap, as well as a sea, separates Sarawak from the fast-growing states and bustling capital of Kuala Lumpur on the Malay peninsula. But Sarawak's SCORE plan aims to "transform Sarawak into a developed state by year 2020."

A government spokesperson close to Mahmud said Sarawak has to tap the hydro potential of its numerous rivers to power the state's industrial development.

"The people affected [by the dams] will be those who are living in small settlements scattered over remote areas," said the spokesperson, who asked not to be named, in an email. "They are still living in poverty.

"To build a dam, not just to generate reasonably priced energy, is also to involve the affected people in meaningful development," he said. "Otherwise, they will be left out."

The spokesperson added that Sarawak will also be exploiting its one to two billion tons of coal reserve for power. One of the coal plants is already operating in the developing township of Mukah. Malaysia's first aluminum smelter was opened here in 2009.

Sarawak's plan is to grow its economy by a factor of five, increase jobs, and double the population to 4.6 million by 2030.

But during the January protest at Long Lama, village chief Panai Erang said he and his people have little confidence that they will benefit from the new industrial development. Erang has visited the town of Sungai Asap, in central Sarawak, where 10,000 indigenous people already displaced by the first megadam project, Bakun Dam, were relocated. The forced exodus began in the late 1990s, and construction continued for more than a decade. With a capacity of 2,400 megawatts, Bakun, which opened in 2011, is currently Asia's largest hydroelectric dam outside China.

Erang said the settlers were given substandard houses and infertile farmland. Some have returned to Bakun and are living on floating houses at the dam site.

The community leader is fearful for the future of his villagers. Many do not possess a MyKad—the Malaysian national identification card—because of government policies making it difficult for them to prove citizenship. As a result, they cannot vote and would be unlikely to find employment if they were forced out of their ancestral homes into towns and cities.

"This is not the development that we want," said Salomon Gau, 48, an ethnic Kenyah from the village of Long Ikang, located downstream off the Baram River. "We don't need big dams. We want micro-hydro dams, [which are] more affordable and environmentally friendly."

Energy and Development

The concerns of the indigenous tribes are echoed by academics and activists from Malaysia and around the world. They worry about SCORE's potential social and environmental impact.

Benjamin Sovacool, founding manager of Vermont Law School's Energy Security and Justice Program, studied the SCORE project extensively. He and development consultant L.C. Bulan traveled the corridor and interviewed dozens of Sarawak planners and stakeholders to catalog the drivers and risks of the project. Their research, conducted at the National University of Singapore, was published last year in the journal Renewable Energy.

Government officials told the researchers that SCORE would improve prospects for those now living in villages, especially the young people: "They want gadgets, cars, nice clothes, and need to learn to survive in the modern economy," one project planner told Sovacool and Bulan. "They are not interested in picking some fruit in the forest, collecting bananas, hunting pigs."

And yet when the researchers visited the Sungai Asap resettlement community, they found people scraping for both water and food, oppressed by heat and rampant disease, with limited transportation options. "We had trouble sleeping at night due to coughing from a tuberculosis epidemic, malaria-carrying mosquitoes buzzing around our beds, and the smell of urine, since the longhouse lacked basic sanitation," they wrote.  Many community members had fled.

The squalor stands in marked contrast to the portrait of Sarawak that the SCORE project seeks to paint in its bid to attract new industry, a region of "world-class infrastructure, multimodal interconnectivity and competitive incentives," strategically located near potential fast-growing markets of India, China, and Indonesia.

Sovacool and Bulan noted that SCORE had encountered difficulties in finding investors and financiers, and flawed environmental impact assessments and questionable procurement practices would further hamper those efforts. (At least one major aluminum smelter plan was scrapped last year over a dispute over finances.) The authors concluded that SCORE might undermine Sarawak's greatest assets: "[I]t is taking what is special to Sarawak, its biodiversity and cultural heritage and destroying and converting it into electricity, a commodity available in almost every country on the planet."

And yet, Sovacool and Bulan wrote that such projects may become increasingly common globally, as governments seek to build energy systems and spur development at the same time.

Daniel Kammen, founder of the Renewable and Appropriate Energy Laboratory at the University of California, Berkeley, who has worked extensively on alternative energy solutions in Malaysia, thinks Sarawak should explore other renewable energy options before implementing SCORE's power projects.

"The political and infrastructure challenges are immense, and the ecological and cultural impacts have barely been evaluated," he told National Geographic News via email.

He said careful evaluation and planning in cooperation with communities could yield better solutions; Kammen's team's work was pivotal in the 2011 decision by neighboring state Sabah to scrap plans for a 300-megawatt coal plant in an ecologically sensitive habitat, and provide energy instead with natural gas.

"What is vital to the long-term social and economic development of [Sarawak], and of Borneo, is to explore the full range of options that are available to this resource-rich state, recognizing that community, cultural, and environmental resources have tremendous value that could be lost if the SCORE project goes ahead without a full analysis of the options that exist in the region," he said.

Mounting Resistance

The natives of Sarawak, including those from Baram, have already lost thousands of hectares of customary land to logging companies and oil palm plantation companies over the past few decades. The state government often cuts land lease deals with companies without consulting natives. Consequently, there are now more than 200 land-dispute court cases pending in Sarawak.

The Penans, a nomadic hunter-gatherer tribe, have suffered more than the Kenyah and Kayan agricultural tribes as they are entirely dependent on the forest for their livelihoods, and are well-known for their blockades against loggers.

But the dam development has united different tribes traditionally divided by their disparate interests. Unlike previous upheavals due to logging, the hydro projects will force tribes out of their ancestral land completely. Adding to anger is the appearance of nepotism in several of the deals; for example, Hamed Abdul Sepawi, chairperson of the state utility company Sarawak Energy Bhd, which is building the Murum Dam, is the cousin of chief minister Mahmud.

The tribes struggle to have their concerns heard. The opposition party that organized the longboat protest in January at Baram, The People's Justice Party, collected more than 7,000 signatures but the government-appointed regional chief refused to see the protestors.

In some cases, the opponents have received a better reception abroad. Peter Kallang, an ethnic Kenyah and chairperson of the Save Sarawak Rivers Network, and other local indigenous activists traveled to Australia late last year to draw attention to their plight. "Development isn't just about economic growth," said Kallang. "Will these mega projects really raise the standard of living among our indigenous communities?" With support of Australian green groups, the activists pressured dam operator and consultant Hydro Tasmania to withdraw from Sarawak's hydropower projects.  Reports say Hydro Tasmania told the campaigners it plans to leave Sarawak after it fulfills its current contractual obligations, but the company has maintained it has been a small player in the SCORE program.

In any event, the indigenous activists plan to step up their campaign against the dam in the coming weeks in anticipation of upcoming national elections. Sarawak and Sabah traditionally have been viewed as a stronghold for the Barisan Nasional coalition that has ruled Malaysia for half a century.

Malaysian opposition leader Anwar Ibrahim now views the rural states on Borneo as key to his bid to unseat the long-standing regime, due to the support he has garnered among increasingly organized indigenous tribes.

In uniting Sarawak's native peoples, the project to alter its rivers may, in the end, change the course of Malaysia.

This story is part of a special series that explores energy issues. For more, visit The Great Energy Challenge.


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Newtown Dad's Tearful Plea at Senate Gun Hearing

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A father who lost his son in the massacre at Sandy Hook Elementary School sobbed as he testified at a Senate hearing today in favor of an assault weapons ban.


Across town Vice President Biden alluded to untold horror of the Newtown tragedy in an appeal for help from the nation's attorneys general.


Despite their emotional appeals, the push for gun reforms championed by the White House and many Democrats faces an uncertain future.


"Jesse was the love of my life," said Neil Heslin, sobbing as he described his 6-year-old son before the Senate Judiciary Committee. "He was the only family I had left. It's hard for me to be here today to talk about my deceased son. I have to. I'm his voice."


Heslin's son, Jesse Lewis, was among the 20 children and six teachers and school administrators murdered at Sandy Hook Elementary in Newtown, Conn. last December. Heslin recounted his last moments with his son when he took him to pick up his favorite, sausage egg and cheese sandwich and hot chocolate before dropping him off at school on the morning of Dec. 14.


"It was 9:04 when I dropped Jesse off. Jesse gave me a hug and a kiss and at that time said goodbye and love you. He stopped and said, I loved mom too." Heslin and his wife are separated.


"That was the last I saw of Jesse as he ducked around the corner. Prior to that when he was getting out of the truck he hugged me and held me and I could still feel that hug and pat on the back and he said everything's going to be ok dad. It's all going to be ok," Heslin said breaking down in tears a second time. "It wasn't ok. I have to go home at night to an empty house without my son."












Army Vet Awarded Medal of Honor for Afghan Firefight Watch Video





Heslin was one of eight witnesses testifying at a hearing to back a proposed assault weapons ban. Another witness was Dr. William Begg, a physician who made it to the emergency room the day of the Newtown shooting.


"People say that the overall number of assault weapon deaths is small but you know what? Please don't tell that to the people of Tucson or Aurora or Columbine or Virginia Tech, and don't tell that to the people in Newtown," Begg said as he choked up and people in the crowd clapped. "Don't tell that to the people in Newtown. This is a tipping point. This is a tipping point and this is a public health issue. Please make the right decision."


Related: Read More About Heslin's Testimony


The Senate Judiciary Committee is set to consider four gun safety measures, including the assault weapons ban, on Thursday. The three other bills aim to stop illegal gun trafficking, enhance safety in schools, and enact universal background checks.


As the hearing unfolded on Capitol Hill, Biden tapped into the stories that Newtown's first responders have shared with him as he urged attorneys general to help the administration push their gun proposals.


Related: The Tragedy at Sandy Hook


"With the press not here, I can tell you what is not public yet about how gruesome it was," Biden said of the massacre's gruesome aftermath at a Washington luncheon. "I met with the state troopers who were on the scene this last week. And the impact on them has been profound. Some of them, understandably, needing some help."


A spokeswoman for Biden could not clarify the non-public information to which he referred. The vice president suggested that what he heard in private conversations should spur lawmakers to enact some measures aimed at curbing gun violence.


Related: President Obama's Campaign Organization Turns to Gun Control






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Boehner cuts House members’ greatest perk

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House speaker John Boehner speaking to reporters Tuesday
(J. Scott Applewhite - AP)
House Speaker John Boehner, citing the impending sequester cuts to the federal budget, Wednesday canceled all House congressional delegation (codel) travel on military jets, our colleague Paul Kane reported, citing GOP sources in the room


Members may still be able to fly commercially however.


Of course, as we noted on Friday, budget cuts to the Air Force may well end that spectacular perk — full-service, business-class-only — for the House — and the Senate.

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