Denver

Democrats Spent $2 Trillion to Save the Economy. They Don’t Want to Talk About It.

“We in Georgia found ourselves trying to claw back from a historic pandemic, the likes of which we haven’t seen in our lifetime, which created an economic shutdown,” he said. “And now, seeing the economy open up, we’ve experienced major supply chain issues, which have contributed to rising costs.”

Direct pandemic payments were begun under Mr. Trump and continued under Mr. Biden, with no serious talk of another round after the ones delivered in the rescue plan. Most Democrats had hoped the one-year, $100 billion child credit in the rescue plan would be made permanent in a new piece of legislation.

But the credit expired, largely because Senator Joe Manchin III, Democrat of West Virginia and a key swing vote, opposed its inclusion in what would become the Inflation Reduction Act, citing concerns the additional money would exacerbate inflation.

Senator Michael Bennet, Democrat of Colorado, was one of the Senate’s most vocal cheerleaders for that credit and an architect of the version included in the rescue plan. His campaign has aired Spanish-language radio ads on the credit in his re-election campaign, targeting a group his team says is particularly favorable toward it, but no television ads. In an interview last week outside a Denver coffee shop, Mr. Bennet conceded the expiration of the credit has sapped some of its political punch.

“It certainly came up when it was here, and it certainly came up when it went away,” he said. “But it’s been some months since that was true. I think, obviously, we’d love to have that right now. Families were getting an average of 450 bucks a month. That would have defrayed a lot of inflation that they’re having to deal with.”

Mr. Biden’s advisers say the rescue plan and its components aren’t being deployed on the trail because other issues have overwhelmed them — from Mr. Biden’s long list of economic bills signed into law as well as the Supreme Court decision overturning Roe v. Wade that has galvanized the Democratic base. They acknowledge the political and economic challenge posed by rapid inflation, but say Democratic candidates are doing well to focus on direct responses to it, like the efforts to reduce costs of insulin and other prescription drugs.

Ms. Lake, the Democratic pollster, said talking more about the child credit could help re-energize Democratic voters for the midterms. Mr. Warnock’s speech in Dunwoody — an admittedly small sample — suggested otherwise.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

CorpHousing Group Inc. Announces 2022 Second Quarter Financial Results

MIAMI–(BUSINESS WIRE)–CorpHousing Group Inc. (“CorpHousing,” “CHG”, or the “Company”) (Nasdaq: CHG), which utilizes a long-term lease, asset-light business model to acquire and manage a growing portfolio of short-term rental properties in major metropolitan cities, today announced financial results for the second quarter (“Q2 2022”) and six months ended June 30, 2022.

2022 Second Quarter Financial Overview Compared to 2021 Second Quarter

Net rental revenue rose 144% to $10.2 million from $4.2 million
Gross profit improved to $2.9 million, or 28% of net rental revenue, from $0.1 million, or 3.5% of net rental revenue
Income before provision for income taxes improved to $1.5 million from a loss of $(1.1) million
Net income improved to $0.8 million, or $0.04 per diluted share, from a net loss of $(1.1) million
EBITDA was $2.1 million compared to EBITDA of $(0.6) million

2022 Six Months Financial Overview Compared to 2021 Six Months

Net rental revenue rose 158% to $19.3 million from $7.5 million
Gross profit improved to $5.4 million, or 28% of net rental revenue, from a loss of $(0.4) million
Income before provision for income taxes improved to $2.9 million from a loss of $(2.4) million
Net income improved to $2.2 million, or $0.10 per diluted share, from a net loss of $(2.4) million
EBITDA was $4.1 million compared to EBITDA of $(1.8) million

Operational Highlights

Generated gross proceeds of $13.5 million via Initial Public Offering (August 2022)
Commenced trading on Nasdaq Capital Market (August 2022)
For the six months ended June 30, 2022, managed 590 units under long-term lease
Subsequent to June 30, 2022, CHG announced the signings of separate 15-year Master Lease Agreements (“MLA”) with two luxury hotels in New York City and an historic boutique hotel in New Orleans
Inclusive of these new MLAs, CHG’s portfolio currently consists of 10 hotel properties in eight U.S. cities comprising 1,037 units
Based on current MLA pipeline, CHG expects more than 1,200 units to be operational in 10 cities during Q4 2022

“We are excited to announce our Q2 results, which we believe reflect the success of our asset-light business model, the vibrancy of our target markers, and the opportunities inherent in our industry,” said Brian Ferdinand, Chairman and Chief Executive Officer of CorpHousing Group. “Q2 2022 net rental revenue increased by 144%, gross profit increased 19-fold, net income improved by $1.9 million, and EBITDA for the quarter was $2.1 million. Our available units for rent increased quarter over quarter, occupancy rates improved as the effects of COVID pandemic wane, and we realized certain efficiencies from scale.

“We currently operate hotels under long-term lease agreements in Boston, Denver, Los Angeles, greater Miami, New York City, Washington, DC, and Seattle, and will commence operations in New Orleans in mid-October.

We are in various stages of negotiation with a variety of potential partners that represent thousands of additional hotel units in destination locations across the United States and Europe. We believe that we are creating win-win opportunities by providing property owners the ability to create stable cash flow streams to maximize returns on their properties, which have been significantly impacted by restrictions on travel and leisure activities due to the COVID-19 pandemic. CHG then markets these units under our customer facing LuxUrban^TM brand to increase occupancy rates and drive operational efficiencies, thus creating the opportunity to generate high margin, recurring and predictable revenue streams. Supported by a strengthened balance sheet and seasoned team of executives, we believe that are well positioned to advance our highly scalable, predictable, and profitable business model and look forward to our future with confidence.”

Q2 2022 Overview

Net rental revenue in Q2 2022 increased 144% to $10.2 million from $4.2 million in the second quarter ended June 30, 2021 (“Q2 2021”), driven primarily by an increase in average units available to rent from 376 in Q2 2021 to 565 at Q2 2022, as well as better occupancy rates and average daily rates (“ADRs”) over this period.

Cost of revenue, which includes rental expenses for available units to rent, rose to $7.3 million in Q2 2022 from $4.0 million in Q2 2021, due primarily to the increase in size of CHG’s rental unit portfolio, as well as related increases in furniture rentals, cleaning costs, cable / WIFI costs and credit card processing fees.

Gross profit improved to $2.9 million, or 28% of net rental revenue, from $0.1 million, or 3.5% of net rental revenue. Higher gross profit and gross margin was primarily attributable to a reduction in the impact of COVID-19 on our operations, higher unit counts and better occupancy rates and ADRs.

Total general and administrative expenses in Q2 2022 increased to $0.9 million, or 9% of net rental revenue, from $0.7 million, or 18% of net rental revenue, in Q2 2021, attributable to an increased number of units in operation.

Income before provision for income taxes improved to $1.5 million from a loss of $(1.1) million, reflecting a significant increase in net rental revenue in Q2 2022 compared to Q2 2021 and the benefits of scale-driven operating efficiencies.

Net income improved to $0.8 million, or $0.04 per diluted share, compared to a net loss of $(1.1) million.

EBITDA rose to $2.1 million, or 21% of net rental revenue, in Q2 2022 compared to negative EBITDA of $(0.6) million.

For a discussion of the financial measures presented herein which are not calculated or presented in accordance with U.S. generally accepted accounting principles (“GAAP”), see “Note Regarding Use of Non-GAAP Financial Measures” below and the schedules to this press release for additional information and reconciliations of non-GAAP financial measures. The company presents non-GAAP measures such as EBITDA to assist in an analysis of its business. These non-GAAP measures should not be considered an alternative to GAAP measures as an indicator of the company’s operating performance.

Conference Call and Webcast

The Company will host a conference call on Tuesday, September 27, 2022 at 9:00 am Eastern Time to discuss the results.

Investors interested in participating in the live call can dial:

(877) 407-9753 – U.S.
(201) 493-6739 – International

A webcast of the event may be accessed via the following link: https://event.choruscall.com/mediaframe/webcast.html?webcastid=ltKz5SSV.

CorpHousing Group Inc.

CorpHousing Group (CHG) utilizes a long-term lease, asset-light business model to acquire and manage a growing portfolio of short-term rental properties in major metropolitan cities. The Company’s future growth focuses primarily on seeking to create “win-win” opportunities for owners of dislocated hotels, including those impacted by COVID-19 travel restrictions, while providing CHG favorable operating margins. CHG operates these properties in a cost-effective manner by leveraging technology to identify, acquire, manage, and market them globally to business and vacation travelers through dozens of third-party sales and distribution channels, and the Company’s own online portal. Guests at the Company’s properties are provided Heroic Service™ under CHG’s consumer brands, including LuxUrban. CHG’s Heroic Service^TM provides guests a hassle-free experience which exceeds their expectations with “Heroes” who respond to any issue in a timely, thoughtful, and thorough manner.

Forward Looking Statements

This press release contains forward-looking statements, including with respect to the expected closing of noted lease transactions and continued closing on additional leases for properties in the Company’s pipeline, as well the Company’s anticipated ability to commercialize efficiently and profitably the properties it leases and will lease in the future. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those set forth under the caption “Risk Factors” in the prospectus forming part of the Company’s effective Registration Statement on Form S-1 (File No. 333-262114). Generally, such forward-looking information or forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking information may relate to anticipated events or results including, but not limited to business strategy, leasing terms, high-level occupancy rates, and sales and growth plans. The financial projection provided herein are based on certain assumptions and existing and anticipated market, travel and public health conditions, all of which may change. The forward-looking information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information and/or forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.

The Company seeks to achieve profitable, long-term growth by monitoring and analyzing key operating metrics, including EBITDA. The Company defines EBITDA as net income before interest, taxes, and depreciation. The Company’s management uses this non-GAAP financial metric and related computations to evaluate and manage the business and to plan and make near and long-term operating and strategic decisions. The management team believes this non-GAAP financial metric is useful to investors to provide supplemental information in addition to the GAAP financial results. Management reviews the use of its primary key operating metrics from time-to-time. EBITDA is not intended to be a substitute for any GAAP financial measure and as calculated, may not be comparable to similarly titled measures of performance of other companies in other industries or within the same industry. The Company’s management team believes it is useful to provide investors with the same financial information that it uses internally to make comparisons of historical operating results, identify trends in underlying operating results, and evaluate its business.

A reconciliation of net income to EBITDA will be provided in the company’s Quarterly Report on Form 10-Q for the three and six months ended June 30, 2022 to be filed on September 26, 2022, under the section thereof entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Reconciliation of Unaudited Historical Results to EBITDA.”

Condensed Consolidated Balance Sheet (Unaudited)

	(unaudited)
	June 30,			December 31,
	2022			2021
ASSETS
*Current Assets*
Cash	$	556		$	6,998
Processor retained funds		4,616,255			56,864
Prepaid expenses and other current assets		512,939			166,667
Deferred offering costs		1,234,500			771,954
Security deposits – current		276,943			276,943
Total Current Assets	$	6,641,193		$	1,279,426
*Other Assets*
Furniture and equipment, net		8,944			11,500
Restricted cash		1,100,000			1,100,000
Security deposits – noncurrent		4,108,010			1,377,010
Operating lease right-of-use asset, net		49,941,971			—
Total Other Assets		55,158,925			2,488,510
Total Assets	$	61,800,118		$	3,767,936
LIABILITIES AND STOCKHOLDERS’ DEFICIT
*Current Liabilities*
Accounts payable and accrued expenses	$	5,301,053		$	4,209,366
Rents received in advance		4,071,095			1,819,943
Merchant cash advances – net of unamortized costs of $0 and $57,768, respectively		575,489			1,386,008
Loans payable – current portion		2,780,054			1,267,004
Loans payable – SBA – PPP Loan – current portion		815,183			815,183
Convertible loans payable – related parties – current portion		2,596,865			—
Loans payable – related parties – current portion		1,071,128			22,221
Operating lease liability – current		7,182,381			—
Income taxes payable		750,000			—
Total Current Liabilities		25,143,248			9,519,725
*Long-Term Liabilities*
Loans payable		545,789			925,114
Loans payable – SBA – EIDL Loan		800,000			800,000
Loans payable – related parties		—			496,500
Convertible loans payable – related parties		700,195			2,608,860
Line of credit		94,975			94,975
Deferred rent		—			536,812
Operating lease liability		43,962,492			—
Total Long-term Liabilities		46,103,451			5,462,261
Total Liabilities		71,246,699			14,981,986
Commitments and Contingencies
*Stockholders’ Deficit*
Members’ Deficit		—			(11,214,050	)
Common stock (shares authorized, issued and outstanding – 90,000,000; 21,675,001; 21,675,001; respectively)		216			—
Accumulated deficit		(9,446,797	)		—
*Total Stockholders’ Deficit*		(9,446,581	)		(11,214,050	)
*Total Liabilities and Stockholders’ Deficit*	$	61,800,118		$	3,767,936

Condensed Consolidated Statement of Operations

(Unaudited)

For the Three Months Ended

For the Six Months Ended

June 30, 2022

June 30, 2021

June 30, 2022

June 30, 2021

Rental Revenue

12,656,540

6,728,686

24,419,439

11,688,873

Refunds and Allowances

2,455,202

2,545,820

5,118,676

4,199,978

Net Rental Revenue

10,201,338

4,182,866

19,300,763

7,488,895

Cost of Revenue

7,344,720

4,035,238

13,930,882

7,920,531

Gross Profit (Loss)

2,856,618

147,628

5,369,881

(431,636

)

General and Administrative Expenses

Administrative and other

809,121

701,040

1,559,742

1,258,458

Professional fees

76,500

37,390

305,485

90,404

Total General and Administrative Expenses

885,621

738,430

1,865,227

1,348,862

Net Income (Loss) Before Other Income (Expense)

1,970,997

(590,802

)

3,504,654

(1,780,498

)

Other Income (Expense)

Other income

137,154

434

587,067

467

Interest and financing costs

(595,742

)

(542,764

)

(1,159,879

)

(660,007

)

Total Other Expenses

(458,588

)

(542,330

)

(572,812

)

(659,540

)

Income (Loss) Before Provision for Income Taxes

1,512,409

(1,133,132

)

2,931,842

(2,440,038

)

Provision for Income Taxes

Current

750,000

—

750,000

—

Net Income (Loss)

762,409

(1,133,132

)

2,181,842

(2,440,038

)

Basic and diluted earnings per common share

0.04

—

0.10

—

Basic and diluted weighted average number of common shares outstanding

21,675,001

—

21,315,747

—

Non-GAAP Financial Measures

To supplement the condensed consolidate financial statements, which are prepared in accordance with GAAP, we use EBITDA as a non-GAAP financial measure.

The following table provides reconciliation of net income (loss) to EBITDA:


	Three Months Ended June 30, (unaudited)					Six Months Ended June 30, (unaudited)
	2022		2021			2022		2021
Net Income (loss)	$	762,409	$	(1,133,132	)	$	2,181,842	$	(2,440,038	)
Provision for Income Taxes	$	750,000	$	—		$	750,000	$	—
Interest and Financing cost	$	595,742	$	542,764		$	1,159,879	$	660,007
Depreciation Expense	$	—	$	—		$	2,556	$	—
EBITDA	$	2,108,151	$	(590,368	)	$	4,094,277	$	(1,780,031	)

EBITDA is defined as net income or loss before the impact of interest, taxes and depreciation and amortization. EBITDA is a key measure of our financial performance and measures our efficiency and operating cash flow before financing costs, taxes and working capital needs. We utilize EBITDA because it provides us with an operating metric closely tied to the operations of the business.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Amended Autopsy: Black Man Died Due To Sedative, Restraint

Despite the finding, the death of Elijah McClain, a 23-year-old massage therapist, was still listed as undetermined, not a homicide.

A Black man died after a police encounter in a Denver suburb in 2019 because he was injected with a powerful sedative after being forcibly restrained, according to an amended autopsy report publicly released Friday.

Despite the finding, the death of Elijah McClain, a 23-year-old massage therapist, was still listed as undetermined, not a homicide, the report shows. McClain was put in a neck hold and injected with ketamine after being stopped by police in Aurora for “being suspicious.” He was unarmed.

The original autopsy report that was written soon after his death in August 2019 did not reach a conclusion about how he died or what type of death is was, such as if it was natural, accidental or a homicide. That was a major reason why prosecutors initially decided not to pursue charges.

But a state grand jury last year indicted three officers and two paramedics on manslaughter and reckless homicide charges in McClain’s death after the case drew renewed attention following the killing of George Floyd in 2020. It became a rallying cry during the national reckoning over racism and police brutality.

The five accused have not yet entered pleas and their lawyers have not commented publicly on the charges.

In the updated report, completed in July 2021, Dr. Stephen Cina, a pathologist, concluded that the ketamine dosage given to McClain, which was higher than recommended for someone his size, “was too much for this individual and it resulted in an overdose, even though his blood ketamine level was consistent with a ‘therapeutic’ blood concentration.”

He said he could not rule out that changes in McClain’s blood chemistry, like an increase in lactic acid, due to his exertion while being restrained by police contributed to his death but concluded there was no evidence that injuries inflicted by police caused his death.

“I believe that Mr. McClain would most likely be alive but for the administration of ketamine,” said Cina, who noted that body camera footage shows McClain becoming “extremely sedated” within a few minutes of being given the drug.

Cina acknowledged that other reasonable pathologists with different experience and training may have labeled such a death, while in police custody, as a homicide or accident, but that he believes the appropriate classification is undetermined.

Qusair Mohamedbhai, attorney for McClain’s mother, Sheneen McClain, declined a request for comment.

Dr. Carl Wigren, a forensic pathologist in Washington state, questioned the report’s focus on ketamine, saying all the available evidence — including a highly critical independent review of McClain’s death commissioned by Aurora last year — point to McClain dying as a result of compressional asphyxia, a type of suffocation, from officers putting pressure on his body while restraining him. He was struck by one passage in the city’s review citing the ambulance company’s report that its crew found McClain lying on the ground on his stomach, his arms handcuffed behind his back, his torso and legs held down, with at least three officers on top of him.

That scene was not captured on body camera footage, the report said, but much of what happened between police was not because the officers’ cameras came off soon after McClain was approached. The cameras did continue to record where they fell and captured people talking.

Just because McClain, who said he couldn’t breathe, could be heard making some statements on the footage, does not mean he was able to fully breathe, Wigren said. Ketamine, which slows breathing, could have just exacerbated McClain’s condition, but Wigren does not think it caused his death.

However, another pathologist, Dr. Deborah G. Johnson of Colorado, said McClain’s quick reaction to ketamine suggests that it was a cause of McClain’s death, but she said its use cannot be separated from the impact that the police restraint may have had. McClain may have had trouble breathing because of the restraint and having less oxygen in your system would make the sedative take effect more quickly, she said.

Both thought the death could have been labeled as a homicide — a death caused by the actions of other people — which they pointed out is a separate judgment from deciding whether someone should be prosecuted with a crime for causing it.

McClain got an overdose of ketamine, Johnson said, noting that the paramedics were working at night when it is hard to judge someone’s weight.

“Was that a mistake to send someone to prison for? I don’t think so,” she said.

The updated autopsy was released Friday under a court order in a lawsuit brought by Colorado Public Radio, joined by other media organizations including The Associated Press. Colorado Public Radio sued the coroner to release the report after learning it had been updated, arguing that it should be made available under the state’s public records law.

Coroner Monica Broncucia-Jordan said she could not release it because it contained confidential grand jury information and that releasing it would violate the oath she made not to share it when she obtained it last year.

But Adams County District Judge Kyle Seedorf ordered the coroner to release the updated report by Friday, and a Denver judge who oversees state grand jury proceedings, Christopher Baumann, ruled Thursday that grand jury information did not have be redacted from the updated report.

Cina noted that the report was updated based on extensive body camera footage, witness statements and records that he did not have at the time of the original autopsy report, which were not made available to the coroner’s office at all or in their entirety before. Last year, Cina and Broncucia-Jordan received some material that was made available to the grand jury last year, according to court documents, but they did not say what exactly that material was.

McClain’s death fueled renewed scrutiny about the use of the ketamine and led Colorado’s health department to issue a new rule limiting when emergency workers can use it.

Last year, the city of Aurora agreed to pay $15 million to settle a lawsuit brought by McClain’s parents. The lawsuit alleged the force officers used against McClain and his struggle to survive it dramatically increased the amount of lactic acid in his system, leading to his death, possibly along with the large dose of ketamine he was given.

The outside investigation commissioned by the city faulted the police probe into McClain’s arrest for not pressing for answers about how officers treated him. It found there was no evidence justifying officers’ decision to stop McClain, who had been reported as suspicious because he was wearing a ski mask as he walked down the street waving his hands. He was not accused of breaking any law.

Police reform activist Candice Bailey had mixed emotions about seeing the amended autopsy.

“I do believe that it does get us a step closer to anything that is a semblance of justice,” said Bailey, an activist in the city of Aurora who has led demonstrations over the death of McClain.

But Bailey added that she is “extremely saddened that there is still a controversy around whether or not the EMTs and officers should be held responsible for what they did, and as to whether or not this was actually murder.”

Additional reporting by the Associated Press.

Source: newsy.com

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Guaranteed Income Programs Spring Up City by City

Early in the pandemic, Alondra Barajas had a temporary job for the Census Bureau, doing phone work from the two-bedroom apartment she shared with her mother and four younger siblings. When that job ended in late 2020, she struggled to find employment.

But Ms. Barajas learned from an ad on Instagram that she might qualify for an unusual form of assistance: monthly payments of $1,000 for a year.

Since she started receiving the funds this year — while caring for her newborn, searching for a job and looking for a new place to stay — her outlook has seemed brighter.

Oakland pledged to give 600 low-income families $500 for 18 months, and in San Diego, some families with young children will get $500 a month for two years.

Last year, the state set aside $35 million over five years for cities to carry out pilot programs, which can use different criteria, including income level, people leaving the foster care system and residence in low-income neighborhoods. An application process for municipalities to tap into those funds is underway.

one of the country’s first guaranteed income programs in 2019, notes that these payments are not meant to be a sole means of income but aim to provide a buffer for people to break the cycle of poverty.

Mr. Tubbs sees the programs as crucial tools in achieving racial justice for Black people and Latinos.

“The ways in which racism and capitalism have intersected to steal wealth from some communities,” he said, “creates the disparities we see today.”

Damon Jones, an economics professor at the University of Chicago, who has studied such programs, noted that unrestricted cash — including stimulus payments — was used broadly by the federal government to stem the economic devastation of Covid-19.

“Policymakers were surprisingly open to this idea following the onset of the pandemic,” Mr. Jones said. Now the emergency aid programs have largely lapsed, ending what for some was a lifeline.

Opponents argue that guaranteed income programs are too expensive and are counterproductive.

Oren Cass, executive director of American Compass, a conservative-leaning think tank, said the case against guaranteed income was not that people “receiving random windfalls can’t benefit from them — in at least some cases, they can and do.”

Los Angeles pilot program, said the goal of her city’s effort was to promote changes to the ways federal public benefit programs were designed.

“Many, if not all, public benefit program regulations contradict each other, are difficult to navigate and are not focused on creating pathways to greater economic opportunity,” Ms. Marquez said. (Some states, including California, have built-in exemptions to ensure that accepting funding from the pilot programs does not put recipients at risk of losing certain state and federal assistance.)

>>> Don’t Miss Today’s BEST Amazon Deals!<<<<

A Shell employee walks through the company’s new Quest Carbon Capture and Storage (CCS) facility in Fort Saskatchewan, Alberta, Canada, October 7, 2021. REUTERS/Todd Korol

Register now for FREE unlimited access to Reuters.com

Aug 15 (Reuters) – Tax credits in the $430 billion U.S. climate and tax bill set to be signed into law this week will kickstart carbon sequestration projects, say oil and gas proponents, offsetting startup costs for some of the anti-pollution initiatives.

Carbon capture and storage hubs that take gases from chemical, power and gas producers and oil refineries have become the energy industry’s preferred way to combat climate warming. But large-scale development has snagged over costs and lack of guaranteed revenue.

The Biden administration’s Inflation Reduction Act, which was approved by lawmakers last week, provides a tax credit of up to $85 per ton for burying carbon dioxide produced by industrial activity, and up to $180 per ton for pulling carbon dioxide (CO2) from the air.

Register now for FREE unlimited access to Reuters.com

The bill also greenlit new leases of federal land for oil and gas development, without considerations of climate impacts. Importantly, it automatically approved high bids from a November 2021 offshore auction that included a drilling project intended for a carbon-burying scheme. read more

“It’s a pretty big deal,” said Tim Duncan, chief executive of Talos Energy Inc (TALO.N) , an offshore oil and gas producer that is building a business around carbon sequestration. Talos has launched four projects and signed up big backers including Freeport LNG and Chevron Corp (CVX.N) .

“This is going to unlock a significant amount of emissions that could become economic for capture,” added Chris Davis, a senior vice president at Milestone Carbon, which develop carbon projects for mid-sized companies.

CONTINUED STRUGGLES

Over the last two decades, companies have tentatively tried and largely struggled to make a business from using CO2 to boost oil production. More recently, big investors want firms to address global warming, and the oil industry aims to show it takes climate change seriously.

There are carbon sequestration hubs proposed around the world – in Alberta in Canada, Rotterdam in the Netherlands, and Huizhou, China. Another type of carbon capture, which directly catches the greenhouse gas from the atmosphere rather than industrial production, also are being considered. read more

A massive expansion of carbon capture is vital to reaching net-zero emissions by 2050, according to energy consuming nations advocate, the International Energy Agency (IEA). The sector must go to storing 7.6 billion tonnes a year from around 40 million tonnes currently. read more

The new tax incentives mean “a number of small to mid-scale projects have a better chance of becoming economical,” said Frederik Majkut, a senior vice president for energy services company Schlumberger’s (SLB.N) Carbon Solutions business.

There are some 5 billion tons of carbon released in the United States annually that could be captured by these sequestration schemes. Previously, very little of that could be captured economically, said Milestone’s Davis said.

“With $85 a ton, I think you can get another billion tons,” he said. “It starts to look like an attractive investment.”

BIGGER PROJECTS

Larger projects, such as that advanced by Exxon Mobil Corp (XOM.N) , which floated a $100 billion plan for a massive carbon hub serving refineries and chemical plants, will need carbon taxes and other initiatives, said analysts.

Widespread deployment of these industrial hubs will require additional policy support from the Biden administration, an Exxon spokesperson said of the bill’s climate provisions.

Smaller projects are more likely to advance but still face hurdles including underground pore rights and permits, said Tracy Evans, chief executive of CapturePoint, which struck a partnership with pipeline operator Energy Transfer(ET.N) for a Louisiana hub.

Currently, permitting for carbon injection wells can take years to secure. And while offshore auctions cover large blocks, aggregating smaller tracts of private land owners onshore can slow the process, he said.

“It will drive more investment in the space for sure,” Evans said.

Register now for FREE unlimited access to Reuters.com

Reporting by Liz Hampton in Denver, additional reporting by Sabrina Valle in Houston
Editing by Marguerita Choy

Our Standards: The Thomson Reuters Trust Principles.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

REPUBLICA PRESS
Your Business & Political News Source

Denver

Democrats Spent $2 Trillion to Save the Economy. They Don’t Want to Talk About It.

CorpHousing Group Inc. Announces 2022 Second Quarter Financial Results

Guaranteed Income Programs Spring Up City by City

Inflation F.A.Q.

The State of Jobs in the United States

Economists have been surprised by recent strength in the labor market, as the Federal Reserve tries to engineer a slowdown and tame inflation.

Register now for FREE unlimited access to Reuters.com

Register now for FREE unlimited access to Reuters.com

Register now for FREE unlimited access to Reuters.com

Register now for FREE unlimited access to Reuters.com

Register now for FREE unlimited access to Reuters.com

Register now for FREE unlimited access to Reuters.com