Connect with us

Business

Three Years After Ukraine Invasion, Europe Still Deals With Energy Crisis

Published

on

Three Years After Ukraine Invasion, Europe Still Deals With Energy Crisis

At a newly built dock along Germany’s Elbe River, tankers from the United States unload liquefied natural gas to fuel factories and homes. In central Spain, a forest of wind turbines planted atop mountains helps power the energy grid. In French government buildings, thermostats have been lowered in winter to save electricity.

In the three years since Russia’s invasion of Ukraine ignited an energy crisis across Europe, the continent has transformed how it generates and stores power. Russian natural gas, long Europe’s energy lifeline, has been replaced with other sources, notably liquefied natural gas from the United States. Wind and solar power generation has leaped around 50 percent since 2021. New nuclear power plants are being planned across the continent.

But Europe’s energy security remains fragile. The region produces far less natural gas than it consumes and is still largely dependent on other countries, especially the United States, to help keep the lights on. Natural gas, which drives the price of electricity, is roughly four times as expensive as in the United States. High energy costs have strained households and forced factories to close, weakening Europe’s economy.

The 2022 invasion of Ukraine revealed Europe’s dependence on energy from Russia, especially natural gas, which accounts for around 20 percent of Europe’s energy consumption.

“The energy appeared cheap, but it exposed us to blackmail,” Ursula von der Leyen, president of the European Commission, the European Union’s executive arm, told the World Economic Forum last month.

Advertisement

Prices soared in 2022 on worries that Russia would completely cut off gas flows into Europe as well as other factors. Countries banded together to share fuel and other energy sources, and build or modify infrastructure to transport it. These efforts are forecast to have reduced Europe’s reliance on Russian gas to 8 percent of supplies in 2025, from 35 percent in 2021, according to Anna Galtsova, an analyst at S&P Global Commodity Insights, a research firm.

Norway is now the largest supplier of gas, mainly through a web of pipelines. But Russia has become a large supplier of liquefied natural gas, second only to the United States in 2024.

And Europe has become better at directing the energy to where it is needed, creating “a tremendous amount of flexibility that Europe didn’t have on the eve of the war,” said Anatol Feygin, chief commercial officer at Cheniere Energy, a large American L.N.G. exporter.

Helping that pivot were programs that encouraged households and government buildings to lower thermostats to 19 degrees Celsius (66 degrees Fahrenheit). Factories across Europe also curbed production to avoid blistering energy bills. Other initiatives, like having stores shut off lights early in the evening, have been rolled out.

Europe built more renewable energy projects to help bridge the gap. Before Russia’s invasion, around a third of Europe’s power generation came from renewable energy, propelled by a buildup of wind and solar power. In 2024, wind and solar farms generated more electrical power than fossil fuels for the first time, according to S&P Global Commodity Insights.

Advertisement

“That is a big change, and that speaks to the additional policy push to get alternative sources of energy into the system,” said Tim Gould, chief energy economist at the International Energy Agency in Paris.

But shifting to renewable energy is costly. Although overall energy prices have declined from their 2022 peaks, both gas and electricity tariffs remain elevated. Renewable sources like wind and solar have made great progress, but much investment is still needed to fill in the gaps in periods of low wind and sun.

Large polluters like steel makers have said Europe is not doing enough to foster a shift to greener operations. “European policy, energy and market environments have not moved in a favorable direction,” ArcelorMittal, Europe’s largest steel company, said in November.

The largest alternative to gas piped in from Russia by far has been liquefied natural gas, but it is a relatively expensive option. With gas vital for industry, heating and power generation, the shift away from Russian supplies has been difficult.

Europe is at the mercy of global markets, bidding against the likes of China and South Korea for liquefied natural gas. Prices have recently soared to the highest level in a year, hurting businesses and adding to a cost-of-living crisis in Europe.

Advertisement

The largest source of liquefied natural gas has been the United States, mostly terminals from the Gulf Coast, which provide nearly half of Europe’s supply. Europe has seen a boom in setting up terminals to receive L.N.G., especially in Germany, which had none before the energy crisis.

During a cold snap in January, several American tankers carrying liquefied natural gas to Asia changed course for Europe, where they could make a bigger profit, said Natasha Fielding, head of European gas pricing at Argus Media, a London research firm.

“Europe has made really remarkable strides,” said David L. Goldwyn, who was a State Department energy envoy during the Clinton and Obama administrations. “But when the weather turns cold and competition from Asia for L.N.G. increases, the situation looks more challenging.”

Natural gas prices in Europe have fallen from the punishing highs of 2022, but in 2024, they were still double their five-year average before the war, according to the International Energy Agency.

Although imports of Russian gas through Europe’s pipelines have plummeted, Europe has expanded its purchases of liquefied natural gas from Russia, which arrives via port. There has not been enough time to develop new resources like L.N.G. to compensate for the loss of Russian gas.

Advertisement

The ebbs and flows of L.N.G. are largely determined by market forces. President Trump has pushed Europe to import more fuel from the United States, and Ms. von der Leyen has suggested that L.N.G. from the United States could replace Russian fuel.

Some level of additional gas exports to Europe from Russia could be included as a sweetener for President Vladimir V. Putin of Russia to agree to a settlement in Ukraine, analysts say. “That would be a serious negative for U.S. energy exporters,” Mr. Goldwyn said.

Exorbitant gas costs contributed to soaring inflation and led factories that employed thousands in Europe to close or relocate to countries with cheaper energy.

Some of the biggest European names are trimming their operations. The German chemical giant BASF said it would close some production at its site in Ludwigshafen near the border with France, while making the largest foreign investment in its history in China, where energy is up to two-thirds cheaper than in Europe.

High natural gas prices have translated into higher costs for making ammonia, a crucial component in fertilizers. Yara International, a fertilizer giant based in Norway, is stopping ammonia production at its plant in Tertre, Belgium, potentially leading to more than 100 job losses. “High energy prices are a huge challenge for European competitiveness,” a spokeswoman said.

Advertisement

The energy crisis has also led to a painful cost-of-living crisis for families across Europe. Energy poverty has jumped in Europe, with nearly 10 percent of the population reporting that it is unable to keep its homes warm, and larger numbers of households falling behind on paying their energy bills.

“We’ve created a state of energy precariousness,” said Niki Vouzas, spokeswoman for the National Federation of Rural Families in France. “People are heating their house less, and filling up the gas tank less.”

Recent months have brought renewed signs of market unease. The colder weather has caused Europe to draw down the levels of storage it builds up for the winter at a faster rate than the previous year, leading to worries that rebuilding these stocks over the summer may be expensive.

“The challenge will be this summer to replenish the reserves ahead of the following winter,” Ms. Fielding of Argus said.

Despite the premium prices of recent years, Europe’s overall gas production has declined. Higher taxes have deterred investment in the British North Sea while the Netherlands is shutting the once prolific Groningen field after production triggered earthquakes. Domestic output in the European Union and Britain amounted to less than 20 percent of consumption in 2024, S&P Global Commodity Insights estimates.

Advertisement

Austria’s OMV is one of the rare companies aiming to increase gas production in Europe. The only way to make Europe’s energy costs competitive with other regions like the United States “is to increase supplies of gas” said Alfred Stern, OMV’s chief executive.

“We are past peak crisis,” said Michael Stoppard, global gas strategy lead at S&P Global Commodity Insights. “But we are not out of the woods.”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Business

Podcast industry is divided as AI bots flood the airways with thousands of programs

Published

on

Podcast industry is divided as AI bots flood the airways with thousands of programs

Chatty bots are sharing their hot takes through hundreds of thousands of AI-generated podcasts. And the invasion has just begun.

Though their banter can be a bit banal, the AI podcasters’ confidence and research are now arguably better than most people’s.

“We’ve just begun to cross the threshold of voice AI being pretty much indistinguishable from human,” said Alan Cowen, chief executive of Hume AI, a startup specializing in voice technology. “We’re seeing creators use it in all kinds of ways.”

AI can make podcasts sound better and cost less, industry insiders say, but the growing swarm of new competitors entering an already crowded market is disrupting the industry.

Advertisement

Some podcasters are pushing back, requesting restrictions. Others are already cloning their voices and handing over their podcasts to AI bots.

Popular podcast host Steven Bartlett has used an AI clone to launch a new kind of content aimed at the 13 million followers of his podcast “Diary of a CEO.” On YouTube, his clone narrates “100 CEOs With Steven Bartlett,” which adds AI-generated animation to Bartlett’s cloned voice to tell the life stories of entrepreneurs such as Steve Jobs and Richard Branson.

Erica Mandy, the Redondo Beach-based host of the daily news podcast called “The Newsworthy,” let an AI voice fill in for her earlier this year after she lost her voice from laryngitis and her backup host bailed out.

She fed her script into a text-to-speech model and selected a female AI voice from ElevenLabs to speak for her.

“I still recorded the show with my very hoarse voice, but then put the AI voice over that, telling the audience from the very beginning, I’m sick,” Mandy said.

Advertisement

Mandy had previously used ElevenLabs for its voice isolation feature, which uses AI to remove ambient noise from interviews.

Her chatbot host elicited mixed responses from listeners. Some asked if she was OK. One fan said she should never do it again. Most weren’t sure what to think.

“A lot of people were like, ‘That was weird,’” Mandy said.

In podcasting, many listeners feel strong bonds to hosts they listen to regularly. The slow encroachment of AI voices for one-off episodes, canned ad reads, sentence replacement in postproduction or translation into multiple languages has sparked anger as well as curiosity from both creators and consumers of the content.

Augmenting or replacing host reads with AI is perceived by many as a breach of trust and as trivializing the human connection listeners have with hosts, said Megan Lazovick, vice president of Edison Research, a podcast research company.

Advertisement

Jason ⁠Saldanha of PRX, a podcast network that represents human creators such as Ezra Klein, said the tsunami of AI podcasts won’t attract premium ad rates.

“Adding more podcasts in a tyranny of choice environment is not great,” he said. “I’m not interested in devaluing premium.”

Still, platforms such as YouTube and Spotify have introduced features for creators to clone their voice and translate their content into multiple languages to increase reach and revenue. A new generation of voice cloning companies, many with operations in California, offers better emotion, tone, pacing and overall voice quality.

Hume AI, which is based in New York but has a big research team in California, raised $50 million last year and has tens of thousands of creators using its software to generate audiobooks, podcasts, films, voice-overs for videos and dialogue generation in video games.

“We focus our platform on being able to edit content so that you can take in postproduction an existing podcast and regenerate a sentence in the same voice, with the same prosody or emotional intonation using instant cloning,” said company CEO Cowen.

Advertisement

Some are using the tech to carpet-bomb the market with content.

Los Angeles podcasting studio Inception Point AI has produced its 200,000 podcast episodes, accounting for 1% of all podcasts published on the internet, according to CEO Jeanine Wright.

The podcasts are so cheap to make that they can focus on tiny topics, like local weather, small sports teams, gardening and other niche subjects.

Instead of a studio searching for a specific “hit” podcast idea, it takes just $1 to produce an episode so that they can be profitable with just 25 people listening.

“That means most of the stuff that we make, we have really an unlimited amount of experimentation and creative freedom for what we want to do,” Wright said.

Advertisement

One of its popular synthetic hosts is Vivian Steele, an AI celebrity gossip columnist with a sassy voice and a sharp tongue. “I am indeed AI-powered — which means I’ve got receipts older than your grandmother’s jewelry box, and a memory sharper than a stiletto heel on marble. No forgetting, no forgiving, and definitely no filter,” the AI discloses itself at the start of the podcast.

“We’ve kind of molded her more towards what the audience wants,” said Katie Brown, chief content officer at Inception Point, who helps design the personalities of the AI podcasters.

Inception Point has built a roster of more than 100 AI personalities whose characteristics, voices and likenesses are crafted for podcast audiences. Its AI hosts include Clare Delish, a cooking guidance expert, and garden enthusiast Nigel Thistledown.

The technology also makes it easy to get podcasts up quickly. Inception has found some success with flash biographies posted promptly in connection to people in the news. It uses AI software to spot a trending personality and create two episodes, complete with promo art and a trailer.

When Charlie Kirk was shot, its AI immediately created two shows called “Charlie Kirk Death” and “Charlie Kirk Manhunt” as a part of the biography series.

Advertisement

“We were able to create all of that content, each with different angles, pulling from different news sources, and we were able to get that content up within an hour,” Wright said.

Speed is key when it comes to breaking news, so its AI podcasts reached the top of some charts.

“Our content was coming up, really dominating the list of what people were searching for,” she said.

Across Apple and Spotify, Inception Point podcasts have now garnered 400,000 subscribers.

Advertisement

Continue Reading

Business

L.A. County sues oil companies over unplugged oil wells in Inglewood

Published

on

L.A. County sues oil companies over unplugged oil wells in Inglewood

Los Angeles County is suing four oil and gas companies for allegedly failing to plug idle oil wells in the large Inglewood Oil Field near Baldwin Hills.

The lawsuit filed Wednesday in Los Angeles Superior Court charges Sentinel Peak Resources California, Freeport-McMoran Oil & Gas, Plains Resources and Chevron U.S.A. with failing to properly clean up at least 227 idle and exhausted wells in the oil field. The wells “continue to leak toxic pollutants into the air, land, and water and present unacceptable dangers to human health, safety, and the environment,” the complaint says.

The lawsuit aims to force the operators to address dangers posed by the unplugged wells. More than a million people live within five miles of the Inglewood oil field.

“We are making it clear to these oil companies that Los Angeles County is done waiting and that we remain unwavering in our commitment to protect residents from the harmful impacts of oil drilling,” said Supervisor Holly Mitchell, whose district includes the oil field, in a statement. “Plugging idle oil and gas wells — so they no longer emit toxins into communities that have been on the front lines of environmental injustice for generations — is not only the right thing to do, it’s the law.”

Advertisement

Sentinel is the oil field’s current operator, while Freeport-McMoran Oil & Gas, Plains Resources and Chevron U.S.A. were past operators. Energy companies often temporarily stop pumping from a well and leave it idle waiting for market conditions to improve.

In a statement, a representative for Sentinel Peak said the company is aware of the lawsuit and that the “claims are entirely without merit.”

“This suit appears to be an attempt to generate sensationalized publicity rather than adjudicate a legitimate legal matter,” general counsel Erin Gleaton said in an email. “We have full confidence in our position, supported by the facts and our record of regulatory compliance.”

Chevron said it does not comment on pending legal matters. The others did not immediately respond to a request for comment.

State regulations define “idle wells” as wells that have not produced oil or natural gas for 24 consecutive months, and “exhausted wells” as those that yield an average daily production of two barrels of oil or less. California is home to thousands of such wells, according to the California Department of Conservation.

Advertisement

Idle and exhausted wells can continue to emit hazardous air pollutants such as benzene, as well as a methane, a planet-warming greenhouse gas. Unplugged wells can also leak oil, benzene, chloride, heavy metals and arsenic into groundwater.

Plugging idle and exhausted wells includes removing surface valves and piping, pumping large amounts of cement down the hole and reclaiming the surrounding ground. The process can be expensive, averaging an estimated $923,200 per well in Los Angeles County, according to the California Geologic Energy Management Division, which notes that the costs could fall to taxpayers if the defendants do not take action. This 2023 estimate from CalGEM is about three times higher than other parts of the state due to the complexity of sealing wells and remediating the surface in densely populated urban areas.

The suit seeks a court order requiring the wells to be properly plugged, as well as abatement for the harms caused by their pollution. It seeks civil penalties of up to $2,500 per day for each well that is in violation of the law.

Residents living near oil fields have long reported adverse health impacts such as respiratory, reproductive and cardiovascular issues. In Los Angeles, many of these risks disproportionately affect low-income communities and communities of color.

“The goal of this lawsuit is to force these oil companies to clean up their mess and stop business practices that disproportionately impact people of color living near these oil wells,” County Counsel Dawyn Harrison said in a statement. “My office is determined to achieve environmental justice for communities impacted by these oil wells and to prevent taxpayers from being stuck with a huge cleanup bill.”

Advertisement

The lawsuit is part of L.A. County’s larger effort to phase out oil drilling, including a high-profile ordinance that sought to ban new oil wells and even require existing ones to stop production within 20 years. Oil companies successfully challenged it and it was blocked in 2024.

Rita Kampalath, the county’s chief sustainability officer, said the county remains “dedicated to moving toward a fossil fuel-free L.A. County.”

“This lawsuit demonstrates the County’s commitment to realizing our sustainability goals by addressing the impacts of the fossil fuel industry on front line communities and the environment,” Kampalath said.

Advertisement
Continue Reading

Business

Instacart is charging different prices to different customers in a dangerous AI experiment, report says

Published

on

Instacart is charging different prices to different customers in a dangerous AI experiment, report says

The grocery delivery service Instacart is using artificial intelligence to experiment with prices and charge some shoppers more than others for the same items, a new study found.

The study from nonprofits Groundwork Collaborative and Consumer Reports followed more than 400 shoppers in four cities and found that Instacart sometimes offered as many as five different sales prices for the exact same item, at the same store and on the same day.

The average difference between the highest price and lowest price on the same item was 13%, but some participants in the study saw prices that were 23% higher than those offered to other shoppers.

The varying prices are unfair to consumers and exacerbate a grocery affordability crisis that regular Americans are already struggling to cope with, said Lindsey Owens, executive director of Groundwork Collaborative.

Advertisement

“In my own view, Instacart should close the lab,” Owens said. “American grocery shoppers aren’t guinea pigs, and they should be able to expect a fair price when they’re shopping.”

The study found that an individual shopper on Instacart could theoretically spend as much as $1,200 more on groceries in one year if they had to deal with the kind of price differences observed in the pricing experiments.

At a Safeway supermarket in Washington, D.C., a dozen Lucerne eggs sold for $3.99, $4.28, $4.59, $4.69, and $4.79 on Instacart, depending on the shopper, the study showed.

At a Safeway in Seattle, a box of 10 Clif Chocolate Chip Energy bars sold for $19.43, $19.99, and $21.99 on Instacart.

Instacart likely began experimenting with prices in 2022, when the platform acquired the artificial intelligence company Eversight. Instacart now advertises Eversight’s pricing software to its retail partners, claiming that the price experimentation is negligible to consumers but could increase store revenue by up to 3%.

Advertisement

“These limited, short-term, and randomized tests help retail partners learn what matters most to consumers and how to keep essential items affordable,” an Instacart spokesperson said in a statement to The Times. “The tests are never based on personal or behavioral characteristics.”

Instacart said the price changes are not the result of dynamic pricing, like that used for airline tickets and ride-hailing, because the prices never change in real time.

But the Groundwork Collaborative study found that nearly three-quarters of grocery items bought at the same time and from the same store had varying price tags.

The artificial intelligence software helps Instacart and grocers “determine exactly how much you’re willing to pay, adding up to a lot more profits for them and a much higher annual grocery bill for you,” Owens said.

The study focused on 437 shoppers in-store and online in North Canton, Ohio; Saint Paul, Minn.; Washington, D.C., and Seattle.

Advertisement

Instacart shares were down more than 5% in midday trading on Wednesday and have risen 1% this year.

Continue Reading

Trending