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In California’s dusty oil country, Ukraine war brings faint hope of keeping wells flowing

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In California’s dusty oil country, Ukraine war brings faint hope of keeping wells flowing

Right here amid the dusty hills and abandoned principal streets of California’s oil nation, the final three years have delivered “one kick within the intestine after one other,” some say.

Coronavirus, wildly fluctuating crude costs, lingering floor spills, Gov. Gavin Newsom’s pledge to transition to a “carbon impartial” financial system and the latest closure of two native prisons have left many questioning simply what the longer term has to supply on this sere nook of western Kern County.

In latest days nonetheless, that grim outlook has given method to a potent mixture of hope, anger and desperation following President Biden’s ban on the importation of Russian oil.

The manager order, which is meant to undermine President Vladimir Putin’s potential to wage conflict in Ukraine, has contributed to hovering gasoline costs. It has additionally given oil trade advocates a brand new cudgel with which to combat California’s pumping restrictions.

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“We’re prepared to satisfy this God-given alternative with experience and a crucial pure useful resource we’ve acquired loads of,” stated Dave Noerr, mayor of Taft and a veteran oilman. “However we’re not being allowed to do what we do finest for what California wants most — native oil.”

“We’re not being allowed to do what we do finest for what California wants most — native oil,” says Taft Mayor Dave Noerr, standing in an oil subject within the metropolis.

(Gary Coronado / Los Angeles Instances)

Within the fields surrounding such historic oil facilities as Taft and McKittrick, a labyrinth of steam pipes, gas strains, diesel energy mills and filth roads weave amid numerous pump jacks. The air right here smells like crankcase oil — because it has for many years — however there may be far much less exercise now than there was simply three years in the past, and native communities are feeling the pinch.

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State oil and fuel regulators have denied most new permits to make use of hydraulic fracturing, generally known as fracking, and comparable extraction applied sciences since 2019, when Newsom started calling for plans to section out oil manufacturing in California, citing the more and more dangerous results of worldwide warming.

His actionsraised ire in petroleum firm boardrooms, enraged Kern County officers and left small-town officers on the southern finish of the San Joaquin Valley grappling with shrinking tax rolls.

Newsom has since been named a defendant in lawsuits filed by Kern County and the Western States Petroleum Assn., which accuse him of inflicting “irreparable hurt” to roughly 23,900 individuals who, straight or not directly, rely on Kern County’s 76 energetic oil fields to earn a dwelling. The lawsuits need a choose to declare that his actions are “are null and void and exceed the bounds of regulation.”

A bronze statue of an oil worker

The Taft Oilworker Monument, devoted in 1910, pays tribute to the employees of the petroleum trade — a strong reminder of the world’s financial roots.

(Gary Coronado / Los Angeles Instances)

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However now, some see the Russian oil ban as their final, finest hope of forcing the state to broaden manufacturing.

State and federal lawmakers backed by the oil trade have spent the previous week pounding Newsom’s anti-oil stance.

In a letter despatched to Newsom every week in the past, Home Minority Chief Kevin McCarthy (R-Bakersfield) stated, “it’s crucial that we actively work to interchange Russian oil imports” with “cleaner American vitality that may be produced in California by Californians.”

“Taking motion to extend vitality manufacturing at house,” he stated, “would additionally improve home vitality provides — doubtlessly serving to blunt will increase in already-soaring fuel costs seen throughout our state.”

Locals ask how a rustic that also imports hundreds of thousands of barrels of petroleum per day — from generally hostile suppliers — can ignore a spot like this.

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For them, a small uptick in manufacturing on current oil subject operations over the previous week prompted by the rising worth of oil and fuel commodities has introduced a measure of aid, and hope.

However considered at shut vary, the robustness of what Noerr described as “a bump in manufacturing of about 5% to 10%” seems to be like a fragile boomlet.

As an illustration, it has meant bigger crowds of hungry oil subject employees at Mike & Annie’s McKittrick Lodge, Penny Bar & Cafe, a watering gap in a city with a inhabitants of about 145 individuals about 15 miles northwest of Taft.

A woman stands in the doorway of a cafe

Annie Moore co-owns Mike & Annie’s McKittrick Lodge, Penny Bar & Cafe in McKittrick in Kern County. Throughout good instances, the enterprise attracts crowds of hungry oil subject employees.

(Gary Coronado / Los Angeles Instances)

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“Issues have been choosing up somewhat bit,” stated Annie Moore, co-owner of the enterprise on scenic Freeway 33 that includes over one million pennies glued to the bar, flooring, partitions, tv and entrance. “We actually wanted that.”

The large query now could be whether or not it is going to develop into one thing lasting and helpful on streets that embody most of the most tasty attributes of small-town Americana, together with bronze oil rigs and different items of equipment erected as reminders of their financial roots.

Oil drilling in Kern County dates again to the nineteenth century, with the primary subject developed in 1898.

Simply three years in the past, Kern County ranked first amongst California’s oil-producing counties, producing 119 million barrels of oil, about 71% of the state’s manufacturing. In 2020, the latest 12 months out there, manufacturing had dropped to 103 million barrels, based on the information service DrillingEdge.

In 2020, for the primary time in California historical past, Newsom issued an govt order directing the California Environmental Safety Company and California Pure Sources Company to “expedite” the “closure and remediation of former oil extraction websites because the state transitions right into a carbon-neutral financial system.”

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A man walks three dogs

Enterprise proprietor Michael Lengthy walks his three border collies alongside Heart Avenue in downtown Taft. The town is at a crossroads, he says.

(Gary Coronado / Los Angeles Instances)

A 12 months later, he directed the California Air Sources Board to judge plans to “cut back or eradicate demand for fossil gas in California and finish oil extraction in our state.”

Even with a ban on imported oil, the drive to section out fossil gas emissions stays an pressing precedence for a lot of.

Final month, a United Nations local weather report stated that individuals’s lives and Earth’s ecosystems are at growing danger of disaster if nations fail to shortly cut back emissions of planet-heating gases.

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As international warming continues to amplify lethal warmth waves, intense droughts, floods and devastating wildfires, researchers from 67 international locations known as for pressing motion to deal with the disaster. They stated most of the harmful and accelerating results can nonetheless be diminished, relying on how shortly the burning of fossil fuels and emissions of greenhouse gases is curbed.

Western Kern County’s oil trade has endured downturns earlier than. However the present decline differs as a result of it has coincided with shifting political winds, the frenzy to develop different sources of vitality, the COVID-19 pandemic and rising issues about poisonous emissions, leaks and seeps from oil and fuel manufacturing.

An enormous seep in Chevron Corp.’s Cymric Oilfield, simply exterior McKittrick, unleashed a gusher of troubles for the area in 2019. Greater than 1 million gallons of oil and brine oozed from a nicely, filling a dry creek and making a hazardous black lagoon.

When Newsom went to the spill website, the sarcastic response heard throughout city was, “There goes the neighborhood.”

Chevron continues to be attempting to completely cease the seepage. On Friday, the corporate described its situation as “stabilized,” with stream charges which can be “95% decrease at this time than in July 2019.”

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The seep was just one in a collection of latest setbacks, locals say.

In 2021, as Newsom was attracting help for his anti-oil stance, a state jail and a federal jail closed in Taft, inflicting the sudden lack of greater than 400 native jobs.

A man stands in front of a bar

Michael Lengthy, proprietor of Black Gold Brewing Co. in downtown Taft, says, “We’d like extra housing and diversification of jobs.”

(Gary Coronado / Los Angeles Instances)

“Dropping each prisons in a single 12 months — on high of every thing else — was devastating for this city,” stated Michael Lengthy, 67, proprietor of Black Gold Brewing Co. in Taft, the place patrons are provided an assortment of Thai meals, craft beers, weapons and ammo.

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“To make up for the financial losses,” added Lengthy, a burly man who can be writer and govt editor of the Taft Impartial Newspaper, “the residents of Taft voted in favor of a 1% gross sales tax, which kicks on this month.”

Past all that, it has been painfully disappointing to observe oil trade investments migrate to states with simpler extraction guidelines and better revenue margins, resembling New Mexico and Texas, since Russia marched into Ukraine.

Taft is at a crossroads. “We’d like extra housing and diversification of jobs,” Lengthy stated as he eyed the principle drag by means of Taft, a melange of storefronts, many blemished by chipped paint and boarded-up home windows.

That gained’t be simple. However Noerr enthusiastically insists that the squeeze on the pump as fuel costs proceed to rise has offered Kern County’s ailing oil trade with a possibility to rise to the myriad political, financial and technical challenges on the horizon.

He tells anybody who will pay attention about bold proposals to rework the world right into a proving floor for brand new, much less environmentally dangerous and extra environment friendly refinements of extraction applied sciences, possibly even carbon seize and storage enhancements.

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On a latest weekday, Noerr introduced his black, 425-horsepower pickup to a cease on a two-lane street flanked by oil rigs and steam pipes.

“Right here’s the deal,” he stated, turning to a reporter. “We don’t have an enormous river, scenic shoreline, bustling harbor or a significant railroad line. We’re a comparatively small space surrounded by 10,000 wells.”

All we wish,” he stated, “is an opportunity to maintain the door open to new alternatives.”

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U.S. job growth outperforms expectations as hiring resurges and unemployment drops

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U.S. job growth outperforms expectations as hiring resurges and unemployment drops

An unexpectedly large surge in new job creation and a down-tick in unemployment last month was good news for the economy, for the Federal Reserve and for Democratic politicians because it suggested policymakers have managed, thus far, to curb inflation without triggering a recession.

The addition of 254,000 jobs in September, reported by the government Friday, was well above the average 203,000 monthly gains over the past year. It blew past analysts’ expectations and indicated that the economy has more legs than previously thought, despite a worrisome slowdown in hiring over the past summer.

At the same time, the unemployment rate dropped to 4.1% from 4.2% in August.

Employers in an array of industries added to their payrolls, led by eating and drinking businesses, healthcare and government. Construction payrolls rose over the month, as did retail. Manufacturing and transportation and warehousing jobs, however, declined slightly, and there was little change in business services and information, which includes the struggling film industry.

“The report doesn’t single-handedly change the landscape for the economic outlook, but it does provide reassurance that there’s still plenty of life in the jobs market,” said Jim Baird, chief investment officer with Plante Moran Financial Advisors, a major accounting firm based in the Detroit area.

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The strong hiring in September, plus a pickup in wage gains to a 4% annual pace — notably faster than the rate of inflation — comes on the heels of the Federal Reserve’s big, half-point reduction in interest rates last month, the first rate cut since 2020. With inflation now seemingly under control, the central bank is focusing on supporting the job market.

After Friday’s report, most analysts say they expect a quarter-point cut at its next meeting in early November. Stocks initially jumped on news of the latest employment numbers, then dropped and rose again in a volatile day on Wall Street.

The monthly jobs report is viewed as the single most important economic indicator. The October report will be released Nov. 1, a few days before the Fed meeting and the national election in which the economy has been a top concern for voters.

The September employment statistics for states won’t be released until later in the month. California’s latest jobless figure was 5.3% in August, the second highest in the nation, although job growth in recent months has been keeping pace with the national rate.

At this late point in the political calendar, new economic reports aren’t likely to sway a lot of voters, who typically have locked up their candidate of choice by the summer. Polls suggest that the lingering effects of inflation have cast a shadow over the economy in the minds of many voters, but the labor market has rarely been as resilient — and that goes for most key battleground states.

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Through August, Arizona, Georgia, North Carolina and Pennsylvania all have lower unemployment rates than the country’s 4.2% in August, according to the U.S. Bureau of Labor Statistics. And their pace of job growth has been as strong if not stronger than the national average.

Wisconsin’s jobless rate was just 2.9% in August, and while Nevada has the highest unemployment in the land, at 5.5%, the state is adding jobs at double the speed of the country. Meanwhile, Michigan’s unemployment and job-growth rates are slightly worse off than for the U.S. as a whole.

“If people are looking at the labor market, I would think they would have to be pretty happy,” said Dean Baker, an economist at the Center for Economic and Policy Research in Washington, who like other analysts were worried after the jobless rate rose to 4.3% in July from 3.7% at the start of the year. But after Friday’s report, he said, “This is a really low unemployment rate by historical standards, and most of the swing states are doing even better.”

Baker said the job market has been bolstered by federal spending and investments, as well as larger inflows of immigrants, who, while stirring fresh controversies, also have filled many jobs.

The future may be a bit cloudy, with the conflict in the Middle East and uncertainties hanging over the election Nov. 5. Also, the October job numbers could be affected by the devastating effects of Hurricane Helene and the Boeing strike if that persists, even as the suspension of the large-scale picketing by dockworkers removed another potential hit to the employment numbers.

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Cory Stahle, economist for Indeed Hiring Lab, said next month’s report may not be so reassuring, reflecting the fluctuation in the data month to month. But “the labor market isn’t on the brink of collapse,” he said, although adding that Fed interest rate cuts may be needed to sustain the momentum.

“Another half-point cut in the interest rate in November is now out of the question; a quarter-point cut is likely,” said Sung Won Sohn, professor of economics and finance at Loyola Marymount University. “The central bank will proceed with a series of small cuts in the interest rate.”

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Sonos tries to get its groove back after upsetting loyal customers

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Sonos tries to get its groove back after upsetting loyal customers

Heath Evans really needed his Sonos speakers to work.

He and his wife counted on one of the three wireless devices he owned to play lullabies to help put their baby daughter to sleep.

So, in May, when Sonos released a new controller app that was so riddled with problems he couldn’t get the speakers to work, Evans was angry.

“We just need reliable music that plays lullabies while we’ve got a screaming baby trying to go to sleep,” said Evans, a 40-year-old entrepreneur in Australia who had received the speakers from his wife last year for his birthday.

Fed up with the time Sonos has taken to fully fix the app, the family has given up on trying to use the devices, which cost about $1,300. They’ve turned instead to a cheap speaker to stream music for their daughter’s bedtime.

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Evans is among a legion of unhappy customers who are upset with Santa Barbara-based Sonos. Today, the company is still trying to mitigate the fallout from the app debacle and salvage its reputation as a powerhouse in the audio industry offering an array of portable, high-quality wireless speakers. The hit to Sonos’ brand has swung the door open for rivals such as Amazon, Bose, Apple and other tech giants that make smart speakers to capture more of the business’ customers.

“Sonos knows it is on precarious ground because while it has built up customer goodwill, it plays in a highly competitive space,” said Dipanjan Chatterjee, vice president and principal analyst at research firm Forrester in an email.

Over its more than 20 years, the publicly traded company has weathered tough times before, including the 2008 financial crisis. But its latest misstep is a multimillion-dollar blunder that has forced it to delay the launch of new products and lower sales projections for the pivotal final months of the year when they otherwise would be looking to capitalize on a holiday sales boost.

Sonos said it’s spending $20 million to $30 million to fix the app and provide more customer support — an emergency investment it hopes will win back the trust of customers and steady its financial footing. In the last six months, the company’s stock, which ended trading Thursday at $11.58, has fallen 39%. In the quarter ending June 29, it reported $397 million in revenue, a 6% increase over the same period last year, and $3.7 million in net income.

This week, the company outlined a plan to make sure it doesn’t have similar failures in the future, including improvements to how it tests products before they’re released, the appointment of a “quality ombudsperson,” creation of a customer advisory board, and extending its warranty for certain items, such as its home theater and plug-in speaker products. Executives agreed to forgo their annual bonuses for 2025 unless their turnaround plan succeeds.

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“There are many wonderful brands that have made missteps, have gone out and apologized to fix things and won back the trust of their customers,” said Eddie Lazarus, Sonos’ chief strategy officer. “We’re going to be the next one in that line.”

Sonos was founded in 2002 by a group of entrepreneurs who set out to build something that is commonplace today but pioneering at the time: a wireless audio system that would enable people to play music over the internet anywhere in their home. They were working years before the start of popular streaming services such as Spotify and Pandora, as well as the launch of the iPhone.

In January 2005, the company released the ZP100, a device with a remote control that allowed people to stream music through their computers. The product garnered positive reviews including from Walt Mossberg, a tech columnist at the Wall Street Journal, who called the Sonos music streaming system “easily the best music-streaming product I have seen and tested.”

As in many startups, Sonos executives were worried about competitors . The first song played publicly on the ZP100 was the Beastie Boys’ “No Sleep Till Brooklyn,” a tune engineers could relate to as they hustled to improve the quality of the device before its release.

Appearing on the podcast “How I Built This with Guy Raz” this year, one of the founders, John MacFarlane, recalled the pressure he and others felt to unveil their first product in time for the holiday season — a goal they ultimately missed. Releasing the ZP100 before it was ready would have “killed the company,” he said.

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“You had to have a great positive first experience if you’re going to build the brand on word of mouth,” MacFarlane said.

The challenge of striking a balance between moving fast and having a good product is still a challenge that Sonos and other tech companies have grappled with throughout their history. Apple faced backlash from its customers in 2012 when it released a Maps app that contained inaccurate driving directions, Chatterjee said. But Sonos is in a “trickier” spot because the app is part of what makes the company’s audio system function seamlessly for the 15 million households that use its products globally.

“Without that seamlessness, there is no ease of use, and without the ease of use, the company cannot command its premium price with consumers or its premium position in the market,” he said.

Sonos Chief Executive Patrick Spence has acknowledged that the company has let down its customers. He told investors in August after Sonos released its quarterly earnings that the company had to rebuild the app to address “performance and reliability issues” and position the company for growth as the company expands “into new categories and move ambitiously outside of the home.” Sonos released its first pair of headphones in June.

For some Sonos customers like Evans, Sonos’ response has been “tone deaf,” underscoring the trust the company still needs to win back.

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“Why on earth would I care about a quality ombudsman? I’m a guy sitting in Melbourne nursing a baby in Australia with a speaker that doesn’t work,” he said.

Despite looking at the possibility of bringing back the previous version of the Sonos app, Lazarus said the company ruled it out because there were a lot of “technical concerns.” While the company has said it’s reintroduced many of the features from the old version of the app that were missing in the new one, he acknowledged the company still has work to do. He couldn’t say when the app will be completely fixed.

Other customers have found workarounds to still stream their music from their Sonos speakers even if the app doesn’t work.

Fearing issues with the rollout of the new app, 32-year-old product designer Matthew Mocniak said, he disabled his Sonos system from automatically updating the app but the solution worked only temporarily.

Mocniak, who lives in North Carolina and has spent more than $2,000 on Sonos speakers, said he’s able to stream music through Apple’s Airplay feature.

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As someone who works in the tech industry, Mocniak knows rebuilding software can be harder than it looks. “It’s very easy to promise certain features or certain deadlines,” he said. “It’s also easy to forget that there are people responsible for that stuff on the other side.”

Ben Brown, a 49-year-old creative director in the United Kingdom, said his Sonos app still says his speakers are not connected. Instead, he’s been using Amazon’s Alexa assistant to play music on the speakers.

Brown, who also purchased multiple Sonos speakers for his home, said he was so frustrated that he felt the urge to throw the Sonos Roam portable speaker in the sea while on vacation.

“I would never have done it, really, but that’s how angry it makes you,” he said. “It’s those moments where you just want to take a speaker outside, eat some dinner and listen to some music.”

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Video: Port Workers Go on Strike

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Video: Port Workers Go on Strike

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Port Workers Go on Strike

The president of the International Longshoremen’s Association said the workers were “making history” by walking off the job for the first time in nearly 50 years.

“I.L.A.! I.L.A.!” “You’re making history here because we’re doing one thing. We are fighting for our families and we are fighting for the rights so that we have a right to get a piece of that money that they got so much of. And we’re going to do it. We’re going to walk away with a great contract. God bless us all.” “I.L.A.!” “All the way!” “I.L.A.!” “All the way!”

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