The Internal Revenue Service says that hiding money or assets in unreported offshore accounts remains on its 2017 list of tax scams known as the Dirty Dozen.

Since the first Offshore Voluntary Disclosure Program (OVDP) opened in 2009, there have been more than 55,800 disclosures and the IRS has collected more than $9.9 billion from this initiative alone.

In addition, another 48,000 taxpayers have made use of separate streamlined procedures to correct prior non-willful omissions and meet their federal tax obligations, paying approximately $450 million in taxes, interest and penalties. The IRS conducted thousands of offshore-related civil audits that resulted in the payment of tens of millions of dollars in unpaid taxes. The IRS has also pursued criminal charges leading to billions of dollars in criminal fines and restitutions.

"Offshore compliance remains a top IRS priority. We've collected $10 billion in back taxes in recent years with 100,000 taxpayers making use of our voluntary disclosure programs," said IRS Commissioner John Koskinen. "The IRS receives more foreign account information each year, making it harder to hide income offshore. I urge taxpayers with international tax issues to come forward and get right with the system."

Compiled annually, the Dirty Dozen lists a variety of common scams that taxpayers may encounter anytime, but many of these schemes peak during filing season as people prepare their tax returns or hire people to help with their taxes.

Illegal scams can lead to significant penalties as well as interest and possible criminal prosecution. The IRS Criminal Investigation Division works closely with the Department of Justice to shut down scams and prosecute the criminals behind them.

Hiding Income Offshore

Over the years, numerous individuals have been identified as evading U.S. taxes by attempting to hide income in offshore banks, brokerage accounts or nominee entities. Then access the funds using debit cards, credit cards or wire transfers. Others have employed foreign trusts, employee-leasing schemes, private annuities or insurance plans for the same purpose.

The IRS uses information gained from its investigations to pursue taxpayers with undeclared accounts, as well as bankers and others suspected of helping clients hide their assets overseas.

While there are legitimate reasons for maintaining financial accounts abroad, there are reporting requirements that need to be fulfilled. U.S. taxpayers who maintain such accounts and who do not comply with reporting requirements are breaking the law and risk significant fines, as well as the possibility of criminal prosecution.

Since 2009, tens of thousands of individuals have come forward to voluntarily disclose their foreign financial accounts, taking advantage of special opportunities to comply with the U.S. tax system and resolve their tax obligations. And, with new foreign account reporting requirements being phased in over the next few years, hiding income offshore is increasingly more difficult.

At the beginning of 2012, the IRS reopened the Offshore Voluntary Disclosure Program following continued strong interest from taxpayers and tax practitioners after the closure of the 2011 and 2009 programs. This program will be open for an indefinite period until otherwise announced.

Third-Party Reporting

Under the Foreign Account Tax Compliance Act (FATCA) and the network of intergovernmental agreements between the U.S. and partner jurisdictions, automatic third-party account reporting has entered its second year. The IRS continues to receive more information regarding potential non-compliance by U.S. persons because of the Department of Justices Swiss Bank Program. This information makes it less likely that offshore financial accounts will go unnoticed by the IRS.

Potential civil penalties increase substantially if U.S. taxpayers associated with participating banks wait to apply to OVDP to resolve their tax obligations.

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IRS Cracks Down on Offshore Tax Cheats - CPAPracticeAdvisor.com

WASHINGTON, D.C. -- A new modelling approach developed and validated by the Southwest Research Institute (SwRI) presents a major step forward in understanding how offshore blowout preventers (BOPs) are likely to function if employed during a blowout. Results from the study funded by the Bureau of Safety and Environmental Enforcement (BSEE) were presented today at the Ocean Energy Safety Institutes Public Technology Assessment Program Forum.

The emergency closure of a wellbore with a BOP is a highly complicated process in which high strength steel pipe must be cut and pinched closed under extreme pressure and flow conditions, said SwRIs Steven Green. SwRI is under contract with BSEE to develop and validate a methodology for conducting an analysis of a BOP closure event using existing commercially available software for advanced structural and fluid dynamics simulations. We have also developed a database tool that, when completed, will hold simulation results and allows BSEE and industry to interactively assess the basic design requirements of a BOP under its expected operating conditions, Green said.

Blowout preventers use multiple methods to prevent hydrocarbons from ascending through drill pipes and reaching surface operations. How well they would perform during a blowout, as opposed to activation to prevent a blowout, has been a concern for both the industry and regulators. The research performed by SwRI is part of BSEEs larger effort to advance the design of BOPs so that they function effectively under emergency conditions.

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Model advances analysis of offshore BOP closure during extreme conditions - WorldOil (subscription)

2/17/2017

HOUSTON -- In the event of a subsea loss of source control, response activity and equipment will often include equipment consisting of a very large and unwieldy BOP capping stack system. However, these systems are located in a limited number of locations globally, where response times to offshore location may vary from two to six weeks, depending on the location of the incident. Conventional assemblies are dependent upon a specific class of vessel with the capability to deploy these bulky BOP capping stacks. Furthermore, compliance with the regulatory requirements governing well control response times pose serious issues in being able to deploy in a timely manner.

The Global Rapid Intervention Package (GRIP) not only includes the compact and air-mobile designed Rapid Cap plus the air-mobile Top Hat, but also the necessary manifolds, a variety of debris removal and cutting tools, and wellhead dispersant connectors. Coupled with Boots & Coots Relief Well Service, the development of the Global Rapid Intervention Package (GRIP) demonstrates a step change in subsea response by providing the most rapid response possible.

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Halliburton's GRIP delivers rapid response to offshore source-control incidents - WorldOil (subscription)

ANCHORAGE, Alaska Natural gas for at least 10 days has leaked from an underwater natural gas pipeline in Alaskas Cook Inlet and floating ice has prevented divers from reaching the site.

The gas is bubbling from an 8-inch pipeline in 80 feet of water about four miles off shore. The pipeline belonging to Hilcorp Alaska, LLC, moves processed natural gas from shore to four drilling platforms in the inlet.

The Alaska Department of Environmental Conservation is investigating the leak. In an email response to questions, spokeswoman Candice Bressler said the agency is assessing public health and environmental risks.

We believe the risk to public health and safety is small, the agency said. Environmental risk is less easy to quantify since a monitoring and assessment program is not yet in place.

The federal Pipeline and Hazardous Materials Safety Administration also is investigating.

The Coast Guard warned mariners to stay at least 1,000 feet from the bubbling gas. Another federal agency expressed concern over possible adverse effects on marine mammals.

Our greatest concern is for endangered Cook Inlet beluga whales and impacts to their critical habitat, said Julie Speegle, spokeswoman for the fisheries section of the National Oceanic and Atmospheric Administration. The natural gas discharge is within the winter foraging area for the whales, she said.

Link:

Natural gas leaks from offshore pipeline in Alaska - Press Herald

US Wind has selected JDR Cable Systems as preferred supplier for the 750MW Maryland offshore wind project.

State regulators are reviewing the developers application for offshore renewable energy credits for a 250MW first phase. Also in the running is the 120MW Skipjack project by Deepwater Wind.

JDR's scope of work for US Wind would include project management, engineering and manufacture of 122 miles of inter-array cable, 112 miles of export cable and cable accessories.

US Wind president Riccardo Toto said: "We're interested in putting together a whole new offshore wind industry right here, in Maryland, and bringing JDR here is a big piece of that puzzle."

UK-headquartered JDR would also provide cable installation and testing.

Cable manufacture is expected to start in 2018 with delivery and installation in 2019 and 2020. Engineering work is scheduled to begin later this year.

The Maryland Public Service Commission is expected to award OREC funding by May.

Image: UKcompany to supply and install subsea cables(JDR)

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JDR lands US offshore bounty - reNews

CALGARY, ALBERTA--(Marketwired - Feb. 17, 2017) - Enbridge Inc. (TSX:ENB)(NYSE:ENB) (Enbridge or the Company) today announced it has acquired an effective 50 percent ownership in the 497-megawatt (MW) Hohe See offshore wind project from EnBW, a German utility, who will retain the remaining interest. Hohe See is a late design-stage project located in the North Sea, 98 kilometers off the coast of Germany. As co-developer, Enbridge will participate in the construction and operation of the project. Once in service in late 2019, Enbridge's total investment in the project will be $1.7 billion (EUR1.07 billion). The project is expected to be strongly accretive in the first full year of operations.

"Offshore wind presents promising large-scale opportunities to increase Enbridge's presence in the renewable power business and is one of our key platforms in the growth of our enterprise going forward," Enbridge President and CEO Al Monaco said of the transaction. "We like this business, and this project in particular, as it is supported by strong commercial underpinnings and provides attractive returns that are consistent with our investor value proposition.

"This partnership also provides an option for further future investment in a planned 112-MW expansion of the offshore wind farm, providing Enbridge with an additional organic growth opportunity within the European offshore wind market," added Mr. Monaco. "EnBW is an excellent partner and leader in German power generation and offshore wind development and we look forward to working together to execute on this project and potential future opportunities.

"This project represents an attractive opportunity for Enbridge to extend growth beyond 2019 and highlights the strength of the $48 billion in probability weighted development projects that we introduced in conjunction with our Spectra acquisition announcement. These projects, among others, will support the extension of our 10-12 percent annual dividend per share growth rate through 2024," concluded Mr. Monaco.

Under the German government's offshore wind incentive structure, power generated by this project will effectively receive long-term fixed pricing for a period of 20 years. Development and construction has been de-risked as the project has now achieved all key regulatory approvals and fixed-price engineering, procurement, construction and installation contracts have been secured with key suppliers representing more than 90 percent of the project capital costs.

Enbridge's investment in 2017 will be $0.6 billion (EUR0.44 billion) with the remaining capital to be invested through to the in-service date in 2019. Equity financing needs for the full $1.7-billion investment have been pre-funded through financing actions completed in the fourth quarter of 2016, specifically through the preferred share and hybrid instrument offerings.

EnBW is one of the largest energy supply companies in Germany and Europe, with significant experience in construction and operation of offshore wind assets. The company developed the first commercial offshore wind farm in Germany, which has been in operation since 2011.

"We are pleased to join forces with Enbridge in delivering this project," said EnBW CEO Frank Mastiaux. "EnBW has established a strong position in offshore wind and together with Enbridge, we will combine our expertise and advance our joint interest in this growing sector."

Enbridge has several projects under development in the European offshore wind market, including a 24.9 percent stake in the 400-MW Rampion wind project off the coast of England (expected to be fully operational in 2018), and a 50 percent interest in French offshore wind development company olien Maritime France SAS, which is pursuing three large-scale offshore wind that would produce a combined 1,428 megawatts (MW) of power and are subject to final investment decision.

Enbridge's financial advisor for this transaction was J.P. Morgan Securities LLC and its legal advisor was Dentons.

About Enbridge Inc.

Enbridge, a Canadian Company, exists to fuel people's quality of life, and has done so for more than 65 years. A North American leader in delivering energy, Enbridge has been ranked on the Global 100 Most Sustainable Corporations index for the past eight years. Enbridge operates the world's longest crude oil and liquids transportation system across Canada and the United States and has a significant and growing involvement in natural gas gathering, transmission and midstream business, as well as an increasing involvement in power transmission. Enbridge owns and operates Canada's largest natural gas distribution company, serving residential, commercial and industrial customers in Ontario, Quebec, New Brunswick and New York State. Enbridge has interests in approximately 2,500 MW of net renewable and alternative generating capacity, and continues to expand into wind, solar and geothermal power. Enbridge employs approximately 9,200 people, primarily in Canada and the United States and has been ranked 15 times on the annual Canada's Top 100 Employers list, including the 2017 index. Enbridge's common shares trade on the Toronto and New York stock exchanges under the symbol ENB. For more information, visit http://www.enbridge.com.

Forward Looking Information

Certain information provided in this news release constitutes forward-looking statements. The words "anticipate", "expect", "project", "estimate", "forecast" and similar expressions are intended to identify such forward-looking statements. Forward-looking statements contained in this press release include, but are not limited to, statements with respect to regulatory approvals, targeted in-service dates; funding of the investment in the Hohe See offshore wind project; growth of Enbridge; and extension of annual dividend per share growth Although the Company believes these forward-looking statements are based on information which is current, reasonable and complete, these statements involve a variety of assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, levels of activity and achievements to differ materially from those expressed or implied by such statements. Material assumptions include the following: the receipt of regulatory approvals; the realization of anticipated benefits of the investment in the Hohe See offshore wind project; the expected supply of and demand for renewable energy; commodity prices; timing of closing and impact of the combination with Spectra Energy Corp; satisfactory completion of projects under development and exchange rates, inflation and interest rates. The Company's forward-looking statements are subject to risks and uncertainties pertaining to project development; regulatory approvals; construction and completion; targeted in-service dates; operating performance; regulatory parameters; weather; commodity prices; supply of and demand for renewable energy, economic and competitive conditions; and exchange rates, inflation and interest rates. The Company cautions that the foregoing list of factors is not exhaustive. Additional information about these and other assumptions, risks and uncertainties can be found in applicable filings of the Company with Canadian and U.S. securities regulators. Except to the extent required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statements made in this news release or otherwise, whether as a result of new information, future events or otherwise.

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Enbridge Partners with EnBW on 497-MW German Offshore Wind Project - Marketwired (press release)

What happened

Shares of Hornbeck Offshore Services (NYSE:HOS) sank deep into the red on Thursday morning, plunging more than 22% by 10:30 a.m. EST after reporting its fourth-quarter results.

Hornbeck reported a net loss for the fourth-quarter of $19.2 million, or $0.53 per share, which was $0.08 per share wider than last quarter and $0.05 per share worse than analysts expected. Driving the decline was continued weakness in the offshore oil and gas market, which put pressure on vessel utilization and dayrates. In addition, general and administrative costs rose during the quarter due to an increase in incentive compensation expenses.

Image source: Getty Images.

Even more concerning was the company's outlook. Hornbeck noted that it currently has 44 of its 62 offshore supply vessels idled due to lack of work. However, it expects to idle an average of 46 vessels in future quarters because it doesn't see any improvement in market activities. Those challenging market conditions led the company to issue a warning concerning its future liquidity needs. Hornbeck noted in its earnings release that while it expects to have the financial resources to operate through the end of next year,

The Company does not currently expect to have sufficient liquidity to repay its three tranches of funded unsecured debt outstanding that mature in fiscal years 2019, 2020 and 2021, respectively, as they come due, absent a refinancing or restructuring of such debt. Refinancing in the current climate is not likely to be achievable on terms that are in-line with the Company's historic cost of debt capital. The Company remains fully cognizant of the challenges currently facing the offshore oil and gas industry and continues to review its capital structure and assess its strategic options.

On the one hand, the company does have time to address this issue. However, the problem is that more time might not be the solution because the outlook for the industry remains bleak as there is a real risk that conditions could continue growing worse. For example,Diamond Offshore Drilling (NYSE:DO) recently warned that it has "yet to see a floor in the declining demand of deepwater assets." Because of this, Diamond Offshore Drilling doesn't see a recovery in the offshore drilling market occurring until 2019 or 2020. While others are optimistic that a recovery could start to take shape as early as next year, there's a real possibility that Hornbeck's financial stress could deepen if conditions worsen.

Oil prices have improved and stabilized above $50 a barrel, butthat's still not enough to ignite a recovery in the offshore drilling sector. Most offshore service companies believe crude needs to improve to more than $60 per barrel before producers start expanding their drilling budgets, which might not arrive for quite some time. Given that outlook, and Hornbeck's potential liquidity problems, this is a stock that investors are better off avoiding for the time being.

Matt DiLallo has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Liquidity Warnings Send Hornbeck Offshore Services, Inc.'s Stock Plunging - Motley Fool

Oil States International (NYSE:OIS) reports Q4 earnings Thursday. Analysts expect revenue of $176.76 and eps of -$0.22. The revenue estimate implies a 1% decline sequentially. Investors should focus on the following key items.

Land Drilling Performance Should Be Stellar ...

Results from Oil States' land drilling operations will likely be stellar. Q3 revenue from the segment increased 14% sequentially as animal spirits returned to the oil patch. I expect a repeat performance this quarter. The North America rig count was up by over 20% during the quarter. Competitors such as Core Labs (NYSE:CLB), Baker Hughes (NYSE:BHI) and Halliburton (NYSE:HAL) showed outperformance in North America this quarter. That bodes well for Oil States.

The company receives about 26% of its revenue from Wellsite Services. The lion's share of its customers are located in the Permian basin where drilling activity has been robust. Another double-digit revenue increase would not be out of the question. There are still thousands of drilled, yet uncompleted wells. If oil prices remain robust then Wellsite Services could have a strong first half of 2017.

... While Offshore Would Likely Disappoint

The company's offshore segment will likely disappoint again. Offshore sustained the company during the oil price rout. However, its revenue fell 2% sequentially last quarter. That was likely a bad omen. Oil States' long-term offshore contracts might be expiring at a time when oil prices do not justify additional investment in the sector.

Experts believe offshore will not rebound until 2018 or 2019. That's problematic as the segment now represents over 75% of total revenue. Another single-digit decline by Offshore could trigger a revenue miss. A weak outlook from management could sink the stock.

Will EBITDA Margins Hold Up?

Oil States' EBITDA margins have ranged from 7%-8% over the past few quarters. Management has done a yeoman's job of cutting costs to stem losses and cash burn. However, if its largest segment takes a turn for the worst it could be difficult to maintain EBITDA margins. Moreover, if the company pares costs any further it might cut into muscle and hurt efficiency.

Conclusion

Growth in land drilling revenue will not likely be robust enough to offset the decline in Offshore. I also expect weak guidance for Q1 2017 due to Offshore's demise.

Disclosure: I am/we are short BHI, HAL.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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Will Offshore Stymie Oil States? - Seeking Alpha

Doug Fraser @dougfrasercct

CHATHAM This June, the state will solicit bids seeking offshore wind farms to produce 400 megawatts of electricity. Its the first of four phases of what state officials hope will be 1,600 megawatts of offshore power; 15 percent of what the state uses annually, enough power to replace what will eventually be lost when Pilgrim Nuclear Power Station shuts down.

Submitting a bid in June will be the first tangible step for a group of Marthas Vineyard residents who started the Vineyard Power energy cooperative six years ago in response to a lot of the things they didnt like about the now-defunct Cape Wind project. They have 1,400 members and say the cooperative represents 5,000 people on the island.

Richard Andre, president of Vineyard Power, said their prospects improved dramatically whenGov. Charlie Baker signed legislation in August that required that power utilities solicit and contract for 1,600 megawatts of offshore wind as part of their energy portfolio by 2027.

Then, we knew we would have a buyer for our power, Andre said.

Vineyard Power representatives came to the headquarters of the Cape Cod Commercial Fishermens Alliance in Chatham on a stormy Wednesday to get feedback from fishermen.

Perhaps it was fitting that there werent many fishermen in the audience because Andre said that unlike Cape Wind, which was sued by Vineyard fishermen and hotly contested by many Cape fishermen, they havent received any negative feedback.

We identified our site in 2009 as an area with the least amount of fishery conflicts, Andre said.

The process was helped considerably by the federal government in 2009 when the Bureau of Energy Management mapped out areas of the ocean with good wind and relatively few conflicting uses or environmental concerns. John Pappalardo, CEO of theCape Cod Commercial Fishermens Alliance, was part of the team that helped to eliminate large areas that were valuable for fishing, shellfishing or for fish habitat.

This zone was much larger. We shaved a huge piece out of it primarily because of scallops, Pappalardo said.

At over 500 feet tall, the 40 to 70 turbines that would be constructed in the first phase would be spaced over a half mile apart. Andre told the audience there would be no reduced speed or areas closed to navigation or fishing. Still to be determined would be whether there could be anything like a kelp or mussel farming operation using components of the turbine. There would be money available to reimburse fishermen displaced during construction work.

By locating them 12 miles offshore, Andre said the turbines would only be visible on extremely clear days and even then would be far off in the distance.

We wanted a different model than Cape Wind. We wanted there to be local benefit, local employment, and local input into the project, Andre told the audience. Weve met with over 20 fishing groups since March of 2016.

Vineyard Power partnered with Vineyard Wind, which holds the lease on the 260 square miles of ocean 12 miles south of the island. Vineyard Wind is a subsidiary of Copenhagen Infrastructure Partners, a Danish company that invests pension funds from Northern Europe. It has $3.5 billion in assets, Andre said, and is primarily focused on renewable energy projects. CIP has managed and invested in over 1,000 megawatts of offshore wind turbines currently being built in Europe, according to its website.

Three companies, Deepwater Wind, another Danish company Dong Energy, and Vineyard Power hold the three federal leases in federal waters south of the Vineyard that were designated as appropriate for offshore wind through an ocean zoning process. In September, the three companies signed letters of intent to use the state-run $113 million New Bedford Marine Commerce Terminal, which had been built in anticipation of the ill-fated Cape Wind offshore wind farm being constructed.

This December, Eversource acquired 50 percent ownership of the offshore wind farm proposed by Dong Energy.

All three offshore wind companies could be submitting bids this summer, Andre said. Price is the primary consideration and he anticipates the winning bid will be in the mid-teens per kilowatt hours as compared with Cape Winds prices which were over 20 cents. Each subsequent bid phase is required to start at a lower price than the previous ones as improved technology and economies of scale hopefully will reduce costs. Europe, where they have been doing it for decades, has seen offshore wind drop to 10 cents, Andre said.

The area south of the Vineyard has been rated the best or second best on the East Coast for the strength and consistency of its wind, Andre told the audience. Vineyard Wind ships were out on Nantucket Sound this summer and fall doing seismic and sonar testing on the sea bed to determine what type of foundation would be required for the turbines.

Environmental studies of impacts on birds and marine life, and permitting, will continue for another two years. Construction could start as early as 2020 and take two years. It will take about 2,000 construction workers for the first phase and Andre said the plan is to employ a lot of local workers. The company with the winning bid would also have to get state permits to run cables, which will be buried 6 feet deep in the sea bed, to the mainland.

Follow Doug Fraser on Twitter:@dougfrasercct.

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Vineyard Power vying for offshore wind farm - News - capecodtimes ... - Cape Cod Times (subscription)

Professional Diversity Network: Offshore Investment Fund, Dropping ... Seeking Alpha Whenever a company lists its address as a post office box on an island, as IPDN's Chinese investor does, it's a red flag indeed it's TheStreetSweeper's skull. and more »

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Professional Diversity Network: Offshore Investment Fund, Dropping ... - Seeking Alpha

In support of its planned 750 MW offshore wind farm off the coast of Maryland, Baltimore-based US Wind Inc. has teamed up with JDR Cable Systems Ltd., which is supplying underwater power cables for the project.

US Wind is one of two applicants for the offshore renewable energy credit a process currently under a 180-day public comment period overseen by the Maryland Public Services Commission. (The other applicant is Deepwater Wind.)

Were interested in putting together a whole new offshore wind industry right here in Maryland, and bringing JDR here is a big piece of that puzzle, comments Riccardo Toto, president of US Wind.

For the wind farm, JDRs scope of work includes project management, as well as engineering and manufacturing 122 miles of inter-array cables, 112 miles of export cables and other cable accessories. JDR will also provide cable installation and testing.

The cable manufacturing is expected to commence in 2018, and delivery and installation are planned for 2019 and 2020. Engineering work is scheduled to begin later this year.

US Wind officials say this partnership marks the start of bringing 5,000 manufacturing jobs to Maryland and generating over $16 billion in net economic output over the life of its wind farm.

We are extremely proud to be selected by US Wind for the full cable package, notes David Currie, CEO of JDR Cable Systems. This partnership will strengthen Maryland and Baltimore as a regional business hub and support additional job creation.

Toto adds, This new partnership with JDR brings us one step closer to establishing Maryland as the hub for offshore wind manufacturing for the entire East Coast of the U.S. Were ready to get to work.

Link:

US Wind Secures Cabling Partner For MD Offshore Project - North American Windpower

February 15, 2017 8:33 PM

GROTON, Conn. (CBSNewYork/CBS News) A Russian spy ship patrolling the East Coast was located near a U.S. submarine base off the coast of Connecticut Wednesday.

The ship, known as an AGI (Auxiliary, General Intelligence), was located 30 miles from Groton, Connecticut, CBS News national security correspondent David Martin reported.

More From CBS News

U.S. Rep. Jim Himes (D-Connecticut) sits on the House Permanent Select Committee on Intelligence. WCBS 880s Steve Scott asked Himes what the ship was doing off the Connecticut coast.

First of all, people should understand that this is not unprecedented, and this is not an offensive ship that is going, you know, land troops or start a war, Himes said. This is an intelligence and reconnaissance ship that largely has technologies and weve got plenty of it as well that can collect signals, intelligence, and listen in on, you know, all sorts of transmissions and that kind of thing. But the Russians had a purpose in sending the ship to the area, Himes said.

But the Russians had a purpose in sending the ship to the area, Himes said.

But what it really is, of course, its a political statement by Russia, saying, OK, when the White House is in turmoil, when you dont have a national security adviser, were going to provoke a little bit and see what the response is, which of course is what weve seen from North Korea; what weve seen from Iran, and one of the really concerning aspects about the turmoil that were seeing right now in our national apparatus, he said.

Himes agreed that the Russians goal was to test President Donald Trump to see how far they can go.

One of the discouraging things here, of course, is that our potential enemies our real and potential enemies right now are looking at the disarray in the White House, Himes said. Theyre looking at the fact that the president appears to be at war with the intelligence community who is paid to advise him, and theyre saying, Hey lets see, if we put our toe over this line over here, how the Americans respond.

Groton is the home of Naval Submarine Base New London, which the Navy describes as the Home of the Submarine Force.

According to the bases website, 6,500 military personnel are stationed there and 1,000 civilian employees work there.

The ship had made a port call in Cuba and has been working its way up the East Coast. Its expected to turn around and head south toward Cuba.

The presence of foreign vessels and aircraft near U.S. territory is nothing new. In 2015, there was a flap about a Russian spy ship hanging out in a spot where trans-Atlantic cables are laid.

The ships voyage comes as U.S. officials say Russia secretly deployed a cruise missile in December that is specifically banned by a treaty signed in the final years of the Cold War. The missile is capable of carrying a nuclear warhead.

Also, just five days ago, an incident similar to last years buzzing by Russian jets of a U.S. Navy destroyer in the Baltic Sea happened again, this time in the Black Sea

First, a Russian patrol plane made a low pass close to the USS Porter, then two Russian jet fighters were followed a short time later by a third. U.S. officials called the fly-bys unsafe and unprofessional.

On Thursday, Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, is expected to meet with his Russian counterpart in Azerbaijan, CBS Radio News correspondent Cami McCormick reports.

A statement from Dunfords office released on Wednesday said the meeting will be to discuss a variety of issues including the current state of U.S.-Russian military relations. The U.S. suspended military relations with Russia after its annexation of Crimea in Ukraine in 2014.

A spokeswoman told McCormick the meeting has been planned for months.

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Russian Spy Ship Spotted Offshore From Connecticut; Congressman Says Goal Is To Test US - CBS Local

Crimes against humanity have been committed in Australias offshore immigration detention centres, a petition before the International Criminal Court has claimed.

Handout / Reuters

ID: 10539857

The submission, from the Global Legal Action Network and the Stanford International Human Rights Clinic, urged the court to investigate potential crimes against humanity committed against asylum seekers by individuals and corporate actors within the island prisons.

As recent leaks reveal, these privatised facilities entail long-term detention in inhumane conditions, often including physical and sexual abuse of adults and children, the network said in a statement.

It accused Australian governments of contracting out the running of facilities to private corporations in order to avoid responsibility.

Nevertheless, that liability for international crimes can be traced not only to direct perpetrators on the ground, but also to public officials and corporate officers and directors, the statement read.

Stefan Postles / Getty Images

ID: 10539837

Let this be a warning to people donating to GetUp! that you are being ripped off by these wacky causes, a spokesperson for Dutton said this week.

The Australian government said last year that it would at some point shut down its detention centre on Papua New Guineas Manus Island, where 871 men are still detained.

Handout / Reuters

ID: 10539823

At Australias other offshore immigration centre, on the tiny Micronesian island of Nauru, there are still 372 people detained.

The Australian government has subjected asylum-seekers on Nauru to egregious abuses that amount to torture and flout international law, a report released last year by Amnesty International found.

The human rights group found refugees on Nauru had been denied medical treatment, suffered abuse and been subject to inhumane treatment.

Earlier this month, a heavily pregnant Kuwaiti refugee held in detention on Nauru had to wait several days to be flown to Australia after doctors said she was in a critical condition and needed an emergency C-section.

The 37-year-old was suffering from the potentially life-threatening condition of preeclampsia and had a large fibroid, or benign tumour, on the wall of her uterus.

Mandel Ngan / AFP / Getty Images

ID: 10540097

Everyone feels so hopeless and helpless, an Iranian refugee detained on Manus Island told BuzzFeed News.

Excerpt from:

Australia Accused Of Committing Crimes Against Humanity In Offshore Detention Centres - BuzzFeed News

A bipartisan coalition of 20 governors has called on President Donald Trump to help grow offshore wind energy in the US.

In a letter sent by the Governors Wind & Solar Energy Coalition (GWSC), they asked the Trump administration to adopt comprehensive long-term offshore wind development legislation.

Specifically, the governors said a long-term extension of a 30% investment tax credit is critical to incentivise development.

Investor confidence is strong, as shown by the intense competition for the recent New York offshore wind lease, but that support will disappear without a strong national policy foundation, said the coalition, which includes eight Republican and 12 Democratic governors.

The group of state leaders also asked the administration to support onshore wind and solar power, through significant funding for grid modernization and energy research and by streamlining permitting.

If the United States does not continue robust federal research and development programs in wind and solar energy, we will cede leadership in these critical technologies to other nations that have demonstrated ongoing high priority commitments to these technologies, such as China.

Trumps America First Energy Plan promotes oil, natural gas and coal but doesnt mention renewables.

Image: US PresidentDonald Trump (Gage Skidmore)

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Trump urged to back offshore - Offshore Wind | reNEWS ... - reNews

Published on February 15th, 2017 | by Joshua S Hill

February 15th, 2017 by Joshua S Hill

Construction in the UKs offshore wind sector reached an impressive high in 2016, with total construction value set at 4.1 billion, increasing from 2.45 billion in 2015, and accounting for 21% of all UK construction contract value in the year.

New analysis from Barbour ABI, a leading provider of construction intelligence services, highlighted the bumper year the UK offshore wind sector experienced, from the point of view of the construction sector. Offshore wind farms accounted for 42% of all UK construction contract value in the utilities and power sector, and 21% of the countrys entire infrastructure sector.

Further, Barbour ABI predicts that this trend is only set to continue through 2017, with a healthy pipeline of future offshore wind projects set to make 2017 another strong year, and up to23.2 billion worth of construction contract value already in planning.

Back in 2013 offshore windfarms accounted for only 7.5% of the annual construction value for the utilities and power sector, which increased to 42% in 2016, on the back of significant investment in this type of project, explained Michael Dall, lead economist at Barbour ABI. With reports showing that the cost of producing electricity in this way have fallen significantly, the increase in construction value makes sense.

Barbour ABI points to the Beatrice, Galloper, and East Anglia One offshore wind farm projects as all contributing heavily to the impressive increase in construction value in 2016.

We have also seen a large uptake in the planning pipeline for future offshore windfarms with 23.2 billion worth of construction planned over the coming years, suggesting this burgeoning sector will continue to expand in 2017 and beyond, Dall added.

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Tags: Barbour ABI, construction, UK offshore wind, UK Wind

Joshua S Hill I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.

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UK Offshore Wind Construction Had Bumper Year In 2016, Barbour ABI - CleanTechnica

I was reading the latest OPEC report with great interest, in part because oil (NYSEARCA:USO) is a major determinant for many asset classes, and in part because oil price is a key factor for the industry of my special interest, offshore drilling. The news of an OPEC/non-OPEC deal has surely provided significant support for the oil market, but now oil will have to trade on facts rather than assumptions. The first fact check is neutral to slightly bearish, in my view.

OPEC producers generally followed their quota. They knew they should do it after they created so much fuss about the deal - otherwise, oil would be way below $50 per barrel. However, since it's winter in the Middle East, the real test of the OPEC members' dedication to the deal has not started.

OPEC's own view on the demand/supply balance in 2017 is probably more problematic than the challenge of switching air conditioning on in spring in the Middle East states. The cartel estimates that oil demand in 2016 was 94.62 mb/d and that it will rise to 95.81 mb/d in 2017. Whether demand will indeed be this strong is not as important because supply is a crucial factor. OPEC estimates that world oil supply in January fell by 1.29 mb/d to 95.82 mb/d. However, OPEC's estimate of demand is lower than that of IEA.

IEA believes that the current supply/demand situation implies a 0.6 mb/d draw from OECD inventories. As per latest OPEC report, OECD inventories were 299 mb/d above the five-year average. Thus, it would take 498 days to bring them back to normal.

In my view, this is the reason why Brent oil (NYSEARCA:BNO) consistently fails to go past $57.50 per barrel. Even if the current supply/demand balance causes decline in inventories, the pace is too slow. The inventory overhang will continue to plague the market for months if the current situation persists. The key question here is whether the increase in demand will outpace the increase in supply from the countries that are not part of the deal.

Should the balance remain in place, OPEC countries will lose their market share and have more incentive to cheat or abandon the deal. Another reason for concern is that speculative long positions are at very high levels:

This is a recipe for major downside if the fundamental data does not support the long thesis. I would like to highlight that this level of speculative activity was reached without additional upside in oil. Thus, the cumulative speculative buyer was met by a fundamental seller - most likely represented by mass hedging of oil producers.

In my view, significant uncertainty remains in the market. The longer Brent oil spends below $57.50, the bigger chances for a domino effect once it breaks below $53. Given the chance to hedge, the situation looks normal for oil producers, but much less so for services companies, especially offshore drillers, which will continue to experience low levels of contracting activity. Current data is not good enough for a major bull thesis. Thus, oil companies remain in a defensive mode, preferring short-cycle opportunities.

This year, we will see a divergence between the "survival group" - Rowan (NYSE:RDC), Diamond Offshore Drilling (NYSE:DO), Transocean (NYSE:RIG), Ensco (NYSE:ESV), and Noble Corp. (NYSE:NE) - and the restructuring group - Seadrill (NYSE:SDRL), Ocean Rig (NASDAQ:ORIG), Pacific Drilling (NYSE:PACD), and North Atlantic Drilling (NYSE:NADL). Seadrill Partners (NYSE:SDLP), which should get confirmation that it is not part of Seadrill restructuring, and Atwood Oceanics (NYSE:ATW), whose debt is not big but whose backlog is a major problem, lie somewhere in between the two groups.

The year 2017 will be very difficult fundamentally even for the "survival group." From oil majors' plans to the cartel's report - everything points to continued pressure on the offshore drilling market due to low oil prices and general uncertainty on the future price levels.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I may trade any of the abovementioned stocks.

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OPEC Report: Pressure On Offshore Drilling Remains - Seeking Alpha

In the previous earnings season, I did an evaluation of majors' capital spending plans to find out whether offshore drilling recovery was around the corner (Part 1, Part 2). This time, I am returning to the topic and will look at majors' spending plans once again. The oil companies in question are Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM), BP (NYSE:BP), Shell (NYSE:RDS.A), Statoil (NYSE:STO), Conoco Phillips (NYSE:COP), and Total (NYSE:TOT). Drillers available on major exchanges are Atwood Oceanics (NYSE:ATW), Diamond Offshore Drilling (NYSE:DO), Ensco (NYSE:ESV), Noble Corp. (NYSE:NE), North Atlantic Drilling (NYSE:NADL), Ocean Rig (NASDAQ:ORIG), Pacific Drilling (NYSE:PACD), Rowan (NYSE:RDC), Transocean (NYSE:RIG), Seadrill (NYSE:SDRL) and Seadrill Partners (NYSE:SDLP).

In my previous articles, I went through the majors' plans one by one. This time, I want to concentrate on big trends and key takeaways, in part because it will be easier to navigate for readers and in part because it is just boring to write in the same format once again. Below I provide links to earnings reports and subsequent earnings calls, so you can read them if you want to dig deeper into the topic.

Inflated stock prices favor short-term thinking. I would argue that some stocks have gone way ahead of themselves. The clearest example is Chevron:

There is no logical valuation reason why Chevron should be worth as much as it was in 2014, when oil prices were twice higher. However, there is a rational explanation to this phenomenon. Chevron stock price reflects the demand for yield. If the yield is good and market participants believe in its sustainability, the stock price increases.

Management surely understands the key driver behind the stock price. Not surprisingly, they want the upside to continue, which is favorable both for them and their shareholders. Thus, they prefer short-cycle projects over long-term projects because longer-term projects are an immediate hit on the bottom line, while the results will be seen later.

During the earnings call, Chevron said the following: "We're further reducing capital spending in 2017 and investing a larger percentage of capital in short-cycle high-return opportunities presented by our advantaged portfolio." The company added: "Our actions support our number one financial priority which is maintaining growing the dividend as the pattern of earnings and cash flow permit."

While the Chevron team was the most straightforward in discussing their vision, other management teams sounded similar. You can't blame them for this; they are doing what their shareholders are demanding, and they want the dividend, which is a primary reason for investing in oil majors.

The takeaway for the offshore drillers is that there is no change of short-term priorities for oil majors. Just like in the previous earnings season, the words "short cycle" and "dividend" are frequent guests in management's vocabulary.

Management teams sound more positive but still cautious despite the OPEC/non-OPEC deal. If you believe that OPEC/non-OPEC deal is a game changer, you'd expect that oil majors will be more focused on their growth plans. However, they appear to be more focused on their EPS or debt management, as highlighted by Exxon Mobil's intention to use excess cash balances to pay down debt or buyback shares.

In my view, nobody wants to get caught in a 2015-like scenario, when the rebound was followed by massive downside, which took oil below $30 at one point. The situation is certainly different now, but it appears as if oil companies want to play it safe and see confirmation that oil prices won't drop once again. So far, oil hit a wall around $57.50 for Brent (NYSEARCA:BNO) and was unable to gain more ground. The more oil spends below $57.50, the more chances for downside increase.

Maximizing project NPV takes back seat to the focus on low breakeven price. This is a huge shift in mentality, a one that is especially dangerous for offshore drilling. Almost everyone keeps talking about which projects they have that are breakeven at $40 per barrel or another low price. The last thing an oil major wants now is to commit to a perspective long-term project only to find out that the price dropped below the breakeven point.

I believe that it highlights the fact that there is not enough "belief" in OPEC in the system right now. Everyone wants to see if the cartel is able to provide long-term support and upside for prices. This is a rational business decision. Certainly, oil majors have no obligation or intent to bail out companies that provide services to them, like offshore drillers. However, one could have expected that there will be some movement toward fixing the present low dayrates for the long-term projects. But that hasn't happened so far.

The year 2017 will be as hard as 2016 for offshore drillers as oil companies' priorities have not changed. Without a dramatic upside in oil prices, any real recovery in contracting activity is postponed until 2018. Keep in mind that oil majors have to deal with dividends that are a legacy from $100+ oil times. Also, oil companies have no duty to think about the long-term balance between supply and demand.

Should demand overcome supply by a big margin sometime in the future, oil prices will skyrocket and oil companies will reap the benefits of higher prices and invest accordingly. I don't buy the typical argument that oil companies should be extremely worried about their reserve replacement and act now, employing offshore drilling (presumably UDW drilling). In my view, they have plenty of time and can increase exploration in a more favorable pricing environment.

I expect downside in offshore drilling shares if oil prices fail to continue their upside. The road to recovery is long, and if it does not start now with the help of higher oil prices, valuations will decrease accordingly.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I may trade any of the abovementioned stocks.

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Oil Majors' Plans - No Relief For Offshore Drillers - Seeking Alpha

BBC News

Director hits back at offshore worker blacklisting claims BBC News The managing director of a scaffolding business who has lost workers to the oil and gas industry has hit back at claims former offshore workers are now being unfairly blacklisted. BBC Scotland revealed on Monday that an MSP had passed concerns about ... Jobseeking offshore workers being discriminated against, claims MSPEnergy Voice all 7 news articles »

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Director hits back at offshore worker blacklisting claims - BBC News

Allison Jones, The Canadian Press

TORONTO -- Six years after Ontario abruptly imposed a moratorium on offshore wind projects, citing the need for more research, the government is signalling it will likely continue for several more years, even with all of its studies in hand.

The moratorium has so far put the Liberal government on the hook for at least $28 million, and it still faces a trial next year on another $500-million lawsuit over the February 2011 decision.

Both Windstream Energy and Trillium Power Wind had wind turbine projects planned for Lake Ontario in the eastern part of the province when the government brought down the moratorium -- in Trillium's case, just minutes before its financing was set to close.

Windstream took its complaint to a NAFTA tribunal, which partially ruled in the company's favour, awarding it $25 million in damages for unfair and inequitable treatment as well as $3 million in legal fees.

Ontario's decision was "at least in part" driven by a genuine concern about a lack of scientific research, but was also influenced by public opposition to offshore wind and how it could affect the Liberals in the upcoming 2011 election, the tribunal found.

"The government on the whole did relatively little to address the scientific uncertainty surrounding offshore wind that it had relied upon as the main publicly cited reason for the moratorium," the tribunal ruled. "Indeed, many of the research plans did not go forward at all, including some for lack of funding, and at the hearing counsel for the respondent confirmed that Ontario did not plan to conduct any further studies."

Five government-commissioned studies have been completed since 2011 on impacts on fish, other environmental impacts, sound and decommissioning requirements.

The studies largely found that while there were still many unknowns about offshore wind in freshwater environments, impacts were likely to be minimal. At least one concluded it was doable.

"If appropriate precautionary measures are taken to avoid or mitigate the impacts of potential harmful or disturbing activities, and implementation strategies are adapted to reflect an ever-growing knowledge base and accommodate the best available science-based options for mitigation, offshore wind power generation within the Great Lakes has the potential to be implemented with minimal impacts on the aquatic ecosystem and in an environmentally sustainable manner," concluded one aquatic research study.

The last two outstanding studies were made public in December, but now the government says it needs more research -- only, it hasn't commissioned any.

"Ontario will continue to follow the impact of North America's first offshore wind pilot project in Lake Erie -- a project authorized by the State of Ohio," the Ministry of the Environment said in a statement.

"Doing so will allow us to have a better grasp of any potential environmental and health challenges posed by freshwater offshore wind developments. The moratorium will not be lifted until research findings are understood and concerns surrounding offshore wind projects are addressed."

The Lake Erie project is slated to begin construction in the spring of 2018.

The Windstream contract in Ontario was signed at a time when the government was shutting down coal-fired electricity generation and looking for green sources of power. Now, the Liberal government is under fire for its green energy program, which is blamed in part for high electricity rates. It recently cancelled plans to sign contracts for up to 1,000 megawatts of power from solar, wind and other renewable energy sources.

But Windstream is still hoping their contract is honoured.

As for Trillium, its $500-million lawsuit for misfeasance in public office is set to go to trial one week after the June 7, 2018 election. Trillium doesn't buy the need for more research as an explanation for the moratorium, said its lawyer.

"These are all really, as far as we're concerned, simply excuses for not wanting to proceed with offshore wind," said Morris Cooper. "(This government) has no focus other than to win the next election."

The Liberal government is also under criminal investigation stemming from Trillium's claim. The company alleged in the lawsuit that government officials destroyed documents after the company sued over the government's cancellation of a Lake Ontario wind project and the provincial police are investigating.

None of Trillium's allegations has been proven in court.

In its statement of defence, the government says it was a coincidence that the moratorium and cancellations were issued just before Trillium's financing was set to close.

Link:

Ontario signals extension on offshore wind project moratorium - BNN

By Michael Bonner, mbonner@s-t.com

Clean energy advocates dropped A-list names at least in terms of American history Monday when discussing promoting a Massachusetts bill.

The 100 Percent Energy Act would make the state the first in the nation to commit entirely to renewable energy, the hope being others would follow the lead of the Bay State in producing a greener country.

Throughout our entire career as a community, Massachusetts has offered leadership to the world, whether it was John Winthrop ... talking about being light in the city on the hill or John Adams echoing him or John Kennedy echoing them," Sustainability Roundtable CEO Jim Boyle said in a conference call.

In January, State Reps. Sean Garballey, D-Arlington, and Marjorie Decker, D-Cambridge, along with State Senator Jamie Eldridge, D-Acton, introduced the bill, which now has 53 co-sponsors. It would require Massachusetts to source all of its electricity from renewable sources like solar and wind by 2035. Other sectors, like heating and transportation, would have to use renewable energy by 2050.

We know were not going to achieve 100 percent renewable energy overnight, Director of Environment Massachusetts Ben Hellerstein said. But we can make sure that every decision were making in the upcoming decade is going to make us that much closer.

New Bedford already took steps in that direction last week when Deepwater Wind opened its offices in the city. The ribbon-cutting ceremony of sorts included the mayor among others with the belief that the company will bring a plethora of opportunities to New Bedford in offshore wind energy.

Studies have shown that Massachusetts has the potential to generate 11 times the amount of electricity that fuel takes each year just from offshore wind alone, Hellerstein said. So theres huge potential, to supply not just Massachusetts but the entire New England region.

Last year, Environment Massachusetts released a report, which named New Bedford as one of the leading cities in the state marching toward 100 percent renewable energy.

Another study conducted at Stanford University predicted that 55 percent of the energy used in Massachusetts in 2050 could come from offshore wind.

It all leads to a predicted jolt in the local economy with innovative high-paying jobs.

Once the legislation is passed, we will pretty quickly begin to see real tangible benefits come to our communities, Hellerstein said.

The bill would also establish a council to identify opportunities for the workforce that would try to help erase the challenges that stand in the way of cities that were built on the dependence of fossil fuels.

Massachusetts has an almost unique opportunity to lead this technological revolution globally, Boyle said.

No timetable was provided as to when the bill could be passed. There was no concrete information regarding the total cost either.

In the short term the bill would focus on new construction. However, the panel acknowledged that most of the buildings and homes that will exist in 2050 are already built.

We absolutely will need to create programs and incentives to help folks in those homes make the transition, Hellerstein said.

The rest is here:

Legislation could mean an economic boost in New Bedford offshore wind projects - SouthCoastToday.com