Monday, April 4, 2011

45year old Man, dies after scuffle with traffic agents

As the police investigate the circumstances that led to the death of one Mr. Julius Iwhiwhu shortly after he allegedly had a scuffle with officials of the Traffic Maintenance Agency popularly known as TIMARIV, the family of the deceased are crying for justice.

Mr. Julius Iwhiwhu
 Iwhiwhu had left his home last Thursday for a church programme oblivious of the fact that he would never return to his residence alive. He died a day later in the hospital after he purportedly claimed that a substance was sprayed on his face by some operatives of TIMARIV.

The officials of TIMARIV were said to have accosted the 45-year-old Iwhiwhu, who was an employee of Schlumberger Group, for purportedly breaking a traffic rule.
The deceased was said to have made a turn at the MCC Junction while returning from the church, making the TIMARIV men to arrest him. The argument that ensued between him and the officials of the agency attracted the attention of passersby, who pleaded for the man to be left alone.
Not moved by the plea of the passersby, the TIMARIV officials insisted that Iwhiwhu, who was with his eight-year-old daughter while driving, must be taken to their office. The deceased was said to have told them that he was ready to go to their office with them, but on the condition that he would be the person to drive his car.
Dissatisfied with the condition, the men allegedly struggled with Iwhiwhu while trying to get his car key from him. The deceased’s daughter, Miss Rukey Iwhiwhu, narrated her father’s ordeal in the hands of the traffic officials. According to her, the men had during the struggled pushed her father.
“When my dad was turning at MCC Junction as other cars were turning, they (TIMARIV officials) told us to park somewhere and as my dad stopped,” she said. “They told us to move with them to their office in Nkpolu. When my dad hid the key of the car, they started pushing the car to their office at Rumuigbo after ordering us to go down from the car so that one of them could drive it.
“But my dad told them that he would drive the car himself to anywhere they wanted him to go and as they were dragging the key with my daddy, they pushed him inside somewhere. When he came out from there, I saw one man in black trousers and white T-shirt. The man was with a laptop. When I went to see my father, he (my dad) told me that they sprayed something on his face and asked me to pray for him. He said that he was dying. But the people said he was pretending until he collapsed.”
The grief-stricken wife of the deceased, Dr. Gloria Iwhiwhu, said she got a call from her husband, asking her to meet him at Rumuigbo Junction. She said her husband claimed that the men of TIMARIV were harassing him. Gloria added that when she got to a point, a neighbour told her that Iwhiwhu had raised the alarm before he died that the officials of traffic agency, who arrested him, had sprayed a substance on his face.
“It was at that point that I was assisted by some passersby to take my husband to the hospital. He was later admitted at Rivers Hospital with the help of some policemen. But at about 5 pm the following day, he died and the police came to transfer his corpse to Kpaima Morgue.
“I don’t really know what to say again because my heart is broken. But TIMARIV should have considered the cry of my little child, who pleaded with them to leave her father alone and spare my husband. In fact, TIMARIV should be made to explain what happened to my husband,” Gloria said, weeping, while also calling on humanitarian and rights organisations to prevail on the traffic agency to explain what they did to her husband.
Reacting, the Controller-General of TIMARIV, Mr. Nelson Jaja, told CRIME DIGEST that investigation had already commenced on the matter. Jaja maintained that the officials of the agency were not allowed by law to carry arms, teargas or engage in physical combat with suspected traffic offenders. He noted that preliminary investigation showed that his men didn’t spray any substance on the deceased, but added that the investigation, which included an autopsy, was ongoing.
“My preliminary investigation shows that my people did what they were supposed to do. But the police are still carrying on with the investigation. I requested an autopsy to be carried out and something has been taken to the forensic laboratory in Lagos and our stand today is that we’re very sorry, we sympathise with the family,” Jaja stated.
He, however, said that if at the end of the investigation, any of his men was found to have used anything on the deceased, he would not hesitate to prosecute the person based on his capacity as the controller-general of TIMARIV. “I, as a person, will not tolerate anybody spoiling the good work we’re doing. If any of our men goes outside our code, I will deal with the person. I will personally prosecute the person. That is why I’m also interested in getting to the root of the matter. But for now, I’m convinced that they followed due process,” he said.
When contacted, the State Police Commissioner, Mr. Suleiman Abbah, said three TIMARIV officials had so far been arrested in connection with the incident.
Abbah, however, told CRIME DIGEST that investigation was ongoing on the incident.
But for now Gloria and her daughter are still mourning their departed husband and father.

newsnigeriana.com/a-45year-old-man-dies-after-scuffle-with-traffic-agents

Akpanudoedehe’s life in danger, ACN alleges

By Ikechukwu Nnochiri
The Action Congress of Nigeria, ACN, has raised an alarm over the safety of its gubernatorial candidate in Akwa Ibom State, Senator John Akpanudoedehe, after he was flown, unaccompanied by any of his aides, in an helicopter to Uyo, yesterday.
In a statement issued in Ilorin, Kwara State, by its National Publicity Secretary, Alhaji Lai Mohammed, the party said its concern was in view of the glaring partisanship of the police in handling the Akwa Ibom case and the arrest of 41 ACN supporters in the state, whose only offence is that they were found with brooms, the party’s symbol.


Sen. Akpanudoedehe
 “Three of the 41 ACN supporters who were arrested and slammed into detention were reported to have died. How can we then not be worried by the safety of our governorship candidate under the circumstances?
“We hope this idea of flying Sen. Akpanudoedehe to Uyo, ostensibly to arraign him in court there after the police virtually abducted him right inside a court in Abuja, in a crude and brush manner, is not aimed at subjecting him to the final solution,” it said.
ACN warned that nothing untoward must happen to Sen. Akpanudoedehe, and that since he is now held captive by the police, the force will be held responsible for his safety.  The party urged the Inspector-General of Police, Hafiz Ringim, to respect the law in handling this delicate issue, since he is not above the law.
Wife pleads for intervention
Meanwhile, Senator Akpanudoedehe’s wife, Justin, has appealed to President Goodluck Jonathan to intervene in the matter by ordering an immediate release of her husband for the sake of her tender kids whom she said weep everyday over the continued detention of their father.
She equally implored well-meaning Nigerians, women and civil society organisations, within and outside the country, to come to her rescue with a view to determining the whereabouts of her husband who she last saw on Sunday, alleging that of 41 detained supporters of the ACN in Akwa Ibom State, that three of them were allegedly reported dead yesterday morning owing to food poisoning.
Speaking in Abuja yesterday, she said, “I went to the police headquarters this morning to tell my husband that the surety has finally signed all the documents that will secure his release from detention, only to meet an empty cell.
“When I started asking questions, officers there told me that a chopper came and picked him up, I tried to find out where he has been taken to, at least for me to hear his last words, they refused telling me, when I went to the IG, he told me that he is only following orders from above.
“My children are young, they have been crying over their father’s absence for the past two weeks. I am particularly afraid because out of the 41 persons that were arrested in Akwa Ibom because of their loyalty to by husband, three of them died this morning as a result of food poisoning.
“In the state now, everybody is afraid to hold a broom because once police see you with it they arrest you.
“Please President Jonathan, I know you are a good man, and you have said that no man’s blood is worth to be sacrificed for your mandate, please  my husbands blood is not worth it, don’t allow him to die in detention please. Intervene in this matter. You are a peace loving man, so also is my husband
“Women, where are you, come to my rescue immediately, I want the whole world to know that my husband may die before this election if nothing is done to secure his release.
“I am appealing to every Nigerian to intervene, if not for anything, for the sake of my innocent kids”, she urged.
One of the lawyers that is representing him in court, Chief Niyi Akintola, SAN, equally collaborated her story, adding that he was yet to be informed about where the ACN candidate is currently kept, adding that the defence team are working on legal processes that they intend to file in court soon.
It will be recalled that Udoedehe was re_arrested by security operatives last week Thursday, shortly after he was granted bail by a Federal High Court in Abuja over a four count charge bothering on treason.

vanguardngr.com/2011/04/akpanudoedehe%e2%80%99s-life-in-danger-acn-alleges

Chaos! *NASS elections postponed to April 9

*Presidential polls shifted to April 16; Governorship, April 26

BY JIDE AJANI, CLIFFORD NDUJIHE & DAPO AKINREFON

ABUJA – INDEPENDENT National Electoral Commission, INEC, led by Professor Attahiru Jega, has rescheduled the voting dates for the 2011 general elections.
Jega who made the announcement, yesterday, at the INEC headquarters after a meeting with chairmen of all the 63 political parties in the country, rescheduled the election dates as follows:
Senate and House of Reps Elections: Saturday, April 9
Presidential Elections:                         Saturday, April 16
House of Assembly/Governorship Elections:   Tuesday, April 26

The three elections were earlier scheduled to hold as follows: National Assembly Elections, Saturday, April 2; Presidential Elections, Saturday, April 9; and House of Assembly/Governorship Elections, Saturday, April 16.
Addressing journalists after the meeting with the political party chairmen, Jega said: “Yesterday, the Independent National Electoral Commission announced the rescheduling of the 2011 National Assembly, Senate and the House of Representatives elections from April 2, to April 4, 2011, due to late arrival of sensitive election materials.
“Since that announcement, several representations have been made to the Commission, urging it to consult more widely and to ensure that the two-day postponement is enough to address all the logistical issues that will militate against a successful conduct of the rescheduled election. We have just finished a meeting with chairmen of all the political parties in the country which is part of this wide consultations and representations which we have received.

Secure tamper resistant election ballot boxes.
Following these representations and the subsequent consultations we had with stake holders, the Commission has found that the overwhelming sentiment is to further reschedule the rescheduled elections.
“Requests to reschedule the National Assembly elections have come from a cross section of stake holders including political parties and civil society organizations. However, rescheduling the National Assembly elections would have implications for the other elections.
“Consequently, the Commission weighed all the options and considered the wide ranging counsel of Nigerians and decided to reschedule all the elections as follows: Saturday, April 9, Senate and House of Representatives Elections; Saturday, April 16, Presidential Elections; Tuesday, April 26, State House of Assembly and Governorship Elections”.
Jega then “thanked all Nigerians for their enthusiasm for the elections and the support to the Commission and the electoral process”, adding that “your sacrifices are not lost on the Commission and we’re even more determined now to ensure that the 2011 elections are free, fair and credible.”
Endorsement by parties
He added: “I must also say the chairmen of all political parties who are seated here today have fully endorsed these recommendations.”
Vanguard gathered that the full-scale postponement of the elections was partly engendered by deliberations at the National Security Council, NSC, meeting which was held at the Aso Rock Presidential Villa, late on Saturday, April 2.
It was also learnt that most of the stake holders who made presentations to INEC explained that citizens who were fully mobilized to their various villages, towns and states may not have been able to stay away from their bases longer than last weekend and, therefore, be able to wait till today to participate in the voting.
In addition, Vanguard was told by an INEC top shot that the reason for the 10-day difference between the Presidential Elections and the Governorship and State House of Assembly Elections was because of the possible challenges that may occasion the Presidential Election.

vanguardngr.com/2011/04/chaos-nass-elections-postponed-to-april-9/

Election Violence Still A Major Security Challenge



With close to some 200,000 officers and men, the Nigeria Police Force (NPF) appears ready to provide security during the April general elections in Nigeria. At least, Police can say in categorical terms that it has the manpower and therefore, ready for the task.

Commissioner of Police (CP),Yakubu Alkali
In Lagos for example, Nigeria’s commercial capital for instance, the Commissioner of Police (CP), Yakubu Alkali, confirmed to LEADERSHIP in a telephone interview on Thursday that he would like to keep the number of Policemen expected on duty for the April polls, rescheduled to begin this Saturday, close to his chest. He, however, vowed to deliver violence free elections in the State.
According to him, “I can tell you that we in Lagos State are more than ready and set to go. Officers and men designated for election duty have all been briefed on what the rules of the game are. They all know their limit at the polling stations. We have been properly equipped, by the Police High Command and the state government and so therefore, we have no reason to fail. Lagos residents should go about their electoral business without any fear of molestation because we are in control.”
But even with all these, security of lives and property before, during and after elections in the country still appear to be a herculean task. The Police, in this regard tend to be helpless. In fact, few days to the polls which were earlier billed to commence last Saturday, intelligence report said there were already huge arms piling in Lagos, Ogun and Oyo States and blamed it on porous border and compromise by security agents at such places of entry. The discovery was made by men and officers of the State Security Service (SSS).
Similarly, a United State of America (USA) based Human Rights Watch, said a successful transfer of power means more than just keeping the country from falling apart. Peter Takirambudde, Executive Director of the Africa division at Human Rights Watch said, “It means that voters must be protected from intimidation and violence aimed at silencing their voices. It means that candidates must be able to stand for office without fear of bloodshed.”
Many politicians have taken advantage of rampant poverty and unemployment to recruit young men, who intimidate and even kill their opponents or opponents’ supporters. For example, in Kwara State, supporters of the governor and the leading gubernatorial candidate have been in conflict, leading to the killing of a state party chairman in August 2002 and the bombing of a newspaper office in November 2002.
Some of the worst violence reportedly took place during the primaries of the ruling People’s Democratic Party (PDP), particularly in the oil-producing state of Bayelsa, in the South-South zone. Politically-motivated killings and other attacks have occurred in many other areas, including the South-East and the South-West. In central and northern states, some politicians have used religion and ethnicity to galvanise political support or opposition, stirring up sentiments that could spark further communal violence in Nigeria, as evidenced by the so-called Miss World riots in Kaduna in November 2002.
Most of the cases of political violence remain unresolved. Although the police have made some arrests, prosecutions are rare. “Impunity is encouraging ruthless politicians to believe they can continue using violence to silence their opponents,” said Takirambudde.
The Human Rights Watch said it also documented the status of preparations for elections, and made recommendations to the Nigerian government and the international community on how to help prevent political violence and ensure that the elections are free of human rights abuses.
Takirambudde added: “People in Nigeria have proven they are eager to vote and participate.But many may still be left out, either because of the bungling of preparations by the electoral commission, or because of outright intimidation and fraud by candidates.”
Takirambudde’s fear is understood. At least it is on record that at a party primary in Lagos organised by the ruling Peoples Democratic Party (PDP), over eight people lost their lives. The situation was not different during the Action Congress of Nigeria (CPC) primary in the state. A report has it that five persons were brutally hacked down by yet to be identified persons in the Badagary area of the state.The situation is unsafe and perilous in many part of the country with little or no answer by the security agencies on how to check the situation and ensure transparent, violence free and fair elections in the country. Needless to say here that there had been riots, bombings and assassinations in Nigeria. Yet, not a vote has been cast in what has turned out to be the most expensive elections in Africa’s history. To this effect, the Nigeria Elections Situation Room, a forum of groups focusing on the upcoming elections said, “The unprecedented levels of violence that have seen several people killed, maimed, kidnapped or intimidated for political reasons pose the single most significant threat to the conduct of general elections”.

Already, an estimated 70 people have been reported killed in political violence in just a run-up to the national elections that will be held the next Saturdays. Every day brings stories of violence and intimidation from across the country. An Islamic militant group reportedly killed three people this week at a rally in the north. At the same event, police said it stopped “two heavy explosives” from detonating in the crowd.
Too often, however, police are unable to stop the bloodshed. A situation that made the European Union (EU) to described the 2007 elections as the worst they had ever seen anywhere in the world, with rampant rigging, violence, theft of ballot boxes and intimidation. As Africa’s most populous country and its largest oil producer, Nigeria is important. Yet, despite its enormous oil wealth, 80% of the population lives on less than $2 a day, according to the United Nations.
Up to this point, there have been 16 bomb explosions in the country, all in the pre-election period. Compared to two explosions in 2007, according to Shehu Sani of Civil Rights Congress, that number continues to increase on almost daily basis. Nigeria’s National Emergency Management Agency (NEMA) has canceled leave for emergency officers during the elections and identified one-third of the country’s 36 states as “flash points,” an indication that all is not well.
The federal government has ordered the deployment of the military during the elections for security purposes. However, opposition political parties have rejected the security measures. “The deployment of troops creates an atmosphere of warfare, which in turn heats up the polity,” an opposition party, Action Congress of Nigeria (CAN) said, adding that “that is why it is not a common occurrence in other climes during elections.”
Olusola Amore, Police spokesman, assured that the military will guard ballot boxes. He said, “We are taking note of volatile areas and adequately planning our deployment, noting that three or four security agents will be posted at each polling booth. But Human Rights Watch warned that similar steps were taken during the 2007 elections, but backfired.
“The police were often present during such incidents but frequently turned a blind eye or, at times, participated in abuses, yet no one has been held accountable for these crimes,” the group said.
An electoral reform committee, established in 2008 reported that no Nigerian has been convicted and punished for electoral offenses since Independence in 1960.
In a recent statement, the Independent National Electoral Commission said, “Make no mistake about it: this test of honour is inescapably a collective one for all Nigerians. It is our national honour at stake, and our relevance in the affairs of the modern world being redefined.”
But the commission also admitted its limitations in ensuring smooth elections, saying “by all means, the test isn’t INEC’s alone; the election management body is only a midwife of the process and an umpire on the play turf.”
The concern is that despite all the promises, the trend appears to be happening all over again and might still happen.
 leadershipeditors.com/ns/index.php?option=com_content&view=article&id=28360:election-violence-still-a-major-security-challenge&catid=32:politics&Itemid=150

Why INEC Rescheduled Elections

 


• Commonwealth regrets further shift
• Postponement cost Nigeria N75b
• 4 killed in Lagos, others missing
• FG reopens land borders


Professor Attahiru Jega
 The Independent National Electoral Commission (INEC) yesterday bowed to pressures from stakeholders, principally political parties to reschedule the 2011 general elections. INEC had, on Saturday, postponed the National Assembly elections to Monday (today) due to late arrival of sensitive election materials.


This was even as the federal government ordered the  reopening of Nigeria’s land borders.
Rising from a close-door meeting with Nigeria’s political parties Sunday evening, INEC chairman Professor Attahiru Jega announced a sweeping change in all the election dates. According to him, rescheduling of the National Assembly elections would have implication for the schedule of all the other elections.
National Assembly elections will now hold on Saturday, April 9, presidential on Saturday, April 16, while gubernatorial and the state assembly elections will hold on Tuesday, April 26.
Many political parties under the aegis of Inter-Party Advisory Council (IPAC) had threatened to boycott what they deemed an arbitrarily chosen date for the previously postponed National Assembly election.
“It is unacceptable that having failed in its most basic statutory responsibility to conduct the April 2011 National Assembly elections, INEC should arbitrarily announce a new date of Monday, 4th April, without consultations with political parties who are the major stakeholders in the election. As it stands, the parties are not ready or prepared for this new date and as such, we are not party to the date as dictated by INEC.” A statement issued by IPAC’s chairman, Chief Osita E. Okereke and the Secretary, Alhaji Shittu Mohammed had earlier stated.
Jega told newsmen: “Since the postponement and the announcement of Monday for the conduct of the National Assembly elections, several representations have been made to the commission, urging it to consult widely and to ensure that the two-day postponement is enough to address all the logistical issues that may militate against a successful conduct of the rescheduled elections.
“Following these representations and subsequent consultations with stakeholders, the commission has found that the overwhelming sentiment is to further reschedule the elections. Requests to reschedule the National Assembly elections have come from a cross-section of stakeholders, including political parties and civil society organisations.” Jega thanked Nigerians for their enthusiasm for the elections and support for the commission and the electoral process stressing that, “Your sacrifices are not lost on the commission and we are even more determined now to ensure that the 2011 elections are free, fair and credible.”
Responding to questions from newsmen on the possibility of merging National Assembly elections with the presidential elections, Jega said it was not explored because logistics challenge would be too enormous.
“It is possible but we believe that we are better served by separating the two; we do not want the logistical preparations for one to affect the other.
“We all know that the international community is interested in observing all the elections but they are more particularly interested in terms of the outcome of the presidential elections. As a commission and with the endorsement of the stakeholders that we have consulted, Nigeria is better served in terms of bringing about free, fair and credible elections, if we separated these elections. That was the reason for this separation, “he stated.
Parties roundly embraced the new election dates.
National chairman, Congress for Progressive Change (CPC) Tony Momoh, said: “The logo of some political parties are missing, many names are not there (on the ballot papers), there are shortages at polling stations and lots and lots of problems and these cannot be addressed within 24 hours. There is enough time now to make the necessary adjustments and we believe that Jega can handle the issue.”
The CPC said it was more comfortable with the March 9 date that has been fixed for the National Assembly elections and commended Jega for consulting with political parties and taking them into confidence before fixing the date.
The national publicity secretary of CPC, Rotimi Fashakin, speaking to LEADERSHIP yesterday, said the date was agreed upon through a democratic process. The political parties, he said, had a joint position which they presented to the electoral commission, adding that the new date is the most reasonable under the circumstances.
Fashakin said “Saturday will afford INEC the opportunity to overcome all the impediments it had previously encountered. It is good for Nigeria and I must commend Prof. Jega for his truthfulness. It takes a great man to take the decision he took.”
The acting national chairman of the Peoples Democratic Party (PDP), Haliru Bello, said, : “If they (INEC) say they are not ready now, we are willing to wait for them to get ready because we want free and credible elections.”
Meanwhile, the Save Nigeria Group (SNG) has said it was unrealistic to schedule the cancelled National Assembly elections for Monday, even as the group insisted that it was capable of deepening the current state of uncertainty.
This was contained in a statement signed by Comrade Hilary Ojukwu of the Nigerian Progressives in the Diaspora; Barr Benedict Ezeagu, national coordinator SNG; Barr. Stanly Dien, secretary, SNG;  and Barr. Francis Olabode, PRO, SNG; and made available to LEADERSHIP.
“In view of the nationwide confusion and disagreement occasioned by the new date fixed by INEC for the botched National Assembly elections, the Save Nigeria Group wishes to state unequivocally that the April 4,2011 date unilaterally announced by the Jega-led INEC is unrealistic and capable of further deepening the current state of uncertainty in the country.
They argued that the new date for the NASS elections would clash with WAEC examinations which had been fixed for the same date with the attendant security implications, even as any attempt to move these exams would cost the nation further avoidable and unwarranted loss.
Any new date, the statement maintained must take into cognizance the ability of different political parties and other stakeholders to mobilise the needed resources to be able to participate effectively in the elections.
However, the Commonwealth Election Observer Group in Nigeria has expressed regret over the further postponement of the National Assembly polls now scheduled to hold April 9.
A statement by its chairman, Festus Mogae, made available to LEADERSHIP last night stated that the last-minute postponement was regrettable.
“We have noted the further postponement by the Independent National Electoral Commission (INEC) of the National Assembly elections, and that the presidential elections have also now been postponed.
“We note that the announcement follows consultation with the principal stakeholders. We recognise fully that it is the prerogative of Nigeria’s electoral authorities to make changes to the electoral timetable.
“We believe, nevertheless, that such repeated and last-minute changes are regrettable and do not reflect positively on the state of preparedness of INEC.”
Meanwhile, an estimated sum of N75 billion might have been lost by the economy especially in the private sector following the postponement of the National Assembly election earlier scheduled for last Saturday.
The estimate is based on the nation’s Gross Domestic Product (GDP) of about $360 billion.  Experts estimate that about $500 million or N75 billion for half a day of work was lost due to the fact that Saturday was a weekend when only the private sector operates.
The chairman of INEC, Prof. Jega, last Saturday postponed the National Assembly election due to an“ unanticipated late arrival of results sheets in many parts of the country.”
Reacting to the development, the chairman of the National Economic Summit Group (NESG), Mazi Sam Ohuabunwa said the aggregate loss based on the GDP particularly as it borders on private sector which drives the economy of any nation, was enormous.
He noted that what happened was a national disgrace to a country that pride itself as giant of Africa, adding that INEC should apologies to the nation as what happened was absolutely unavoidable.
Ohuabunwa described the postponement as a national disgraced that bothers on the integrity of INEC adding that electoral materials are items that require the highest level of security and must be treated as such.
Ohuabunwa noted that if the security of any of the items is breached, then the credibility of the election becomes compromised.
Meanwhile, former Chai rman of Epe local government,  Mr Mufutai Rufai  and two others lost their lives on Saturday , as their boat  capsized , when returning from a  river side area in Epe local government area of Lagos state  , where they went to monitor last Saturday’s botched National Assembly election.
Mr Rufai who was earlier seen at Epe around 2pm, was said to have visited Oriba in Epe Local government Area. Their boat capsized on their way back from the island, and three of them drowned in the process.
It was gathered that, they were eight people aboard the boat, but five of them managed to survive, and they were latter taken to a hospital for treatment, and have been subsequently discharged.
The reopneing of the borders was announced in Abuja by the minister of interior Captain Emmanuel Iheanachor.
This is sequel to the resheduling of the general elections by INEC.

leadershipeditors.com/ns/index.php option=com_content&view=article&id=28402:why-inec-rescheduled-elections&catid=51:cover-stories&Itemid=142


 

Friday, April 1, 2011

Yet another attempt to undermine the nation’s energy industry


 

February 10, 2011 | Posted by Ken Cohen
 
There’s a letter making the rounds this week in Washington from a number of Democratic Senators, asking for congressional support to remove tax provisions that help enable the oil and natural gas industry to create jobs and contribute billions in tax revenues to federal, state and local governments across the nation.
While the letter wasn’t sent to ExxonMobil, I think it’s important to address the claims made in it, for two reasons: first, because they are incorrect; and second, because punishing successful companies won’t do anything to help restore our economy.
It’s just another unfortunate attempt to attack an industry that supports more than 9.2 million jobs, adds $1 trillion to the national economy – or 7.5 percent of GDP – and contributes billions in tax revenues to federal, state and local governments.
In fact, the letter’s authors went so far as to say that our industry “adds little to our economic and energy security.” These comments come as some surprise given that our industry is responsible for providing more than 60 percent of America’s daily energy needs, and invests in a wide range of technologies to increase and diversify the nation’s energy supplies.
Without any evidence, the authors refer to “tax loopholes and other subsidies that benefit big oil and gas companies.” The most often cited such provision is the Section 199 domestic manufacturers’ deduction.  This tax provision applies not only to U.S. oil and natural gas companies like ExxonMobil, but to all qualified U.S. manufacturers. In other words, American automakers, software developers, newspaper publishers, alcohol and tobacco companies – all these industries benefit from the Section 199 deduction.  To suggest oil and gas companies are the sole beneficiaries of this provision, and to label it a  “loophole” for “Big Oil” is misleading.
The suggestion is even more disconcerting given that the U.S. oil and natural gas industry currently benefits less from this tax provision than all other qualified industries.  All U.S. manufacturers can claim a 9 percent deduction – except the U.S. oil and natural gas industry, which can claim only 6 percent.
So what’s their justification? They imply that  the Section 199 deduction and other tax provisions should be repealed for our industry because “oil and gas companies are doing just fine.”  ExxonMobil has indeed reported strong earnings recently, to the benefit of our millions of shareholders, many of whom are middle class Americans and participants in U.S. government pension and mutual funds, such as the Thrift Savings Plan. In fact, we distributed $19 billion to shareholders in 2010 alone through dividends and share purchases.
The fact that these earnings appear large in absolute terms is a reflection of the scale of the energy industry, which supports U.S. economic activity through the reliable fuels we provide and the electric power we enable.  In relative terms, however, the U.S. oil and natural gas industry’s earnings are consistent with U.S. manufacturing in general. Over the last five years, for example, earnings for the oil and natural gas industry have been in line with the broader manufacturing sector – averaging about 7 cents for every dollar of sales.
To eliminate the tax provisions to which these lawmakers refer would amount to a punitive tax increase on the U.S. oil and gas industry.  Currently, our industry is one of the nation’s largest taxpayers.  From 2005 to 2009, ExxonMobil’s U.S. taxes totaled $63 billion – $19 billion more than we earned in the United States during this period, and an amount that exceeds the entire proposed budget of the U.S. Department of Education for fiscal year 2011.   Furthermore, our effective tax rate in 2009 was 47 percent – approximately 20 percent higher than the average of all other Standard & Poor’s Industrials, according to a recent study.
To increase our tax expenses by repealing the Section 199 deduction and tax provisions would jeopardize the U.S. oil and natural gas industry’s future investments in the United States, as well as our ability to continue being a reliable generator of goods, services, jobs and government revenues.
Given our industry’s enormous contributions to American job creation, manufacturing production, and middle class prosperity – and the importance of the domestic energy sources we produce to our economic and our energy security – I hope people look at the facts before believing these attacks on one of the key foundations of the U.S. economy

exxonmobilperspcom/2011/02/10/yet-another-attempt-to-undermine-the-nations-energy-industry/ectives.

Energy security – A global imperative

·                                
© gasworld

Energy security is perhaps the biggest debate or challenge right now – but what are the solutions to our energy dilemma?
For the first time in human history more than half the Earth’s population have migrated to live in towns and cities and complete global urbanisation seems to be inevitable.
Forty years ago the population of only three cities exceeded 10 million, whereas now there are 32 cities of this size and three of these are home to over 20 million each.
United Nations Population Division estimates predict that the rate of global urbanisation will continue to accelerate to approach 60% by 2030 and 70% by mid-century. This trend will have major impact on the demand for energy, particularly in the developing countries of Africa and Asia.
The importance of energy security
Interruptions in supplying the energy demand of urban populations have potentially greater impact than mere frustration and inconvenience; they can threaten economic and physical survival.
Public transport, road traffic control, lighting, heat, air-conditioning and ventilation in retail malls, offices, hotels, apartments and public facilities all depend on continuous energy supply and power outages result in chaos.
The failure of health services, emergency services or the maintenance of law and order due to energy scarcity could easily have life or death consequences. Industrial and commercial activities from manufacturing to service delivery all depend on continuous energy supply for their efficient operation.
Sources of energy & delivery factors
The primary energy resources listed in most discussions are: coal, crude oil, natural gas, nuclear fission, hydro-power and other renewables. Considerable differences exist between these six options in terms of distribution and availability, ease of production, storage and transportation.
Coal mining has a long history of accidents and explosions and is probably considered the most dangerous to extract. The magnitude of pollution risk from the spillage of crude oil was recently demonstrated on a grand scale in the Gulf of Mexico.
Despite these difficulties, both coal and oil are stored and transported in vast quantities across the oceans and continents using bulk carriers, tankers, conveyors and pipelines. Apart from their ever increasing size and capacity, these may be described as conventional. Stocks can be accumulated in the event that production should exceed demand or stockpiled in the anticipation of interrupted supply.
Historically it was coal that fuelled the industrial revolution and it continued to be the world’s primary energy resource until the mid 1960s when it was overtaken by oil. Despite the obvious convenience and reduction in pollution associated with oil burners, there was some reluctance to convert because the future supplies of oil seemed uncertain.
As the oil industry grew and extraction technology developed, the price of oil fell and it was the promise of cost savings that convinced the majority of consumers to switch. Ironically, the price of crude oil is still influenced by fears of depletion, referred to as ‘Peak Oil’.
Natural gas reserves were first discovered during the process of exploring for deposits of crude oil and this low-grade fuel gas is still often flared to atmosphere as a waste product. The potential of natural gas to contribute very significantly to the energy mix was only realised when the vast size of untapped gas reserves became apparent. The low energy density of natural gas, consisting as it normally does of mainly methane with impurities of carbon dioxide and occasional small percentages of helium, has serious cost implications for both its storage and its distribution.
The trade in natural gas as a primary energy source was limited to the range of long-distance pipelines, until the development of purpose designed carrier ships that deliver this cryogenic liquefied natural gas (LNG) across the oceans and around the globe. The fact that LNG stores only 60% of the energy stored in an equivalent volume of crude oil means that the LNG trade is fundamentally more risky. The expansion of LNG capacity requires major capital investment in plant and carriers and the liquefaction process is energy intensive.
LNG, like other cryogenic liquids, has a limited ‘shelf-life’ in storage because even the most sophisticated thermal insulation systems cannot prevent the ingress of heat which causes vaporisation and pressure build-up. This implies that stocks cannot be accumulated without expensive losses and excess production will quickly precipitate a fall in spot market prices. Long-term high volume contracts are a pre-requisite to approval of new liquefaction projects.
Greenhouse gases
As a brief aside, we should at this point look at the other aspects of the conventional fuels that we’re so familiar with. After all, this wouldn’t be the ‘green’ issue without some reference to greenhouse gases (GHGs) and any of the associated factors.
Two factors related to the accumulation of greenhouse gases affect Earth’s climate because they interact with the incoming radiation. The first factor is the degree to which a gas reflects heat back into space, and the second factor is how long that gas remains in the atmosphere. Although the products of combustion do include both water vapour and CO2, human activity contributes only slightly to greenhouse gas concentrations through farming, manufacturing, power generation, and transportation.
Many environmentalists do not consider water vapour to be a greenhouse gas, despite its reflective qualities and relative abundance. Some argue that because water vapour is naturally abundant, our influence estimated at 0.28% is comparatively negligible. Even though water vapour is responsible for nearly 95% of the greenhouse effect, others argue that because it is part of the natural weather cycle it can’t be considered and on this basis the human contribution rises to 5.53%.
If we disregard the main and natural cause of global warming and only focus on the causes related to the combustion of fossil fuels, then three major greenhouse gases emerge. Top of the list is CO2, followed by methane (CH4) and finally nitrous oxide (N2O).
Fossil fuels are also known as hydrocarbons because their molecules are made up of carbon and hydrogen in many different ratios and configurations. These fuels have largely replaced the traditional biomass as industrialisation has spread around the globe. The final products of complete combustion are carbon dioxide and water vapour, both of which are natural substances in the terrestrial environment and both behave as green-house gases and are minor constituents of the atmosphere.
Incomplete combustion, high temperature combustion and the presence of elements like sulphur in hydrocarbon fuels result in the emission of toxic gases including nitrogen oxides, carbon monoxide and sulphur dioxide.
Another powerful greenhouse gas is CH4 which occurs naturally in huge underground deposits, often together with crude oil deposits, and is the major component of natural gas. The decomposition of landfill waste and digestion of sewage in wastewater treatment plants and cattle farms are all sources of CH4 – some of which is recovered as useful energy.
Balancing act
It is feared that the increasing concentration of greenhouse gases will shift the fine balance between heat reflected and heat retained, causing ambient temperatures to rise.
An increase in atmospheric temperature also affects the amount of water frozen at the poles. If the temperature in the atmosphere increases and the polar ice melts, it could affect both human and marine life drastically:
* World temperatures could rise by between 1.1 and 6.4°C during the 21st century;
* Sea levels will probably rise by 18 to 59cm;
* There will be more frequent warm spells, heat waves, and heavy rainfall;
* There an increase in droughts, tropical cyclones, and extreme high tides.
This environmental balancing act brings us to the subject of carbon credits. A carbon credit is like a form of environmental currency. One carbon credit is equal to one tonne of CO2 emission. Companies that reduce their CO2 emissions have the opportunity to earn carbon credits that they can trade to other industries. This incentive system is intended to reward environmentally conscious industries financially while taxing harmful industries for their neglect.
Though for the most part this system does show promise, it does have the potential to simply pass the problem on to somebody else. The emissions from natural sources beyond our control are so large that even the expensive measures designed to limit human emissions may have a very small, and perhaps undetectable, effect on global climate.
Oxygen applications that optimise fuel efficiency can reduce emissions and result in higher concentrations of CO2 in the waste gas – thus facilitating its capture for storage. Many other gas applications are used by diverse industries to reduce emissions of harmful emissions and greenhouse gases. Industrial gases such as CO2 are normally sourced from the waste gas streams emitted by existing combustion processes.
Final energy consumption by fuel
Returning to the energy diversification debate, and liquid fuels and primarily oil are expected to dominate the final consumption of energy, but electricity consumption is expected to continue growing most rapidly.
The global use of electricity grew 54% between 1990 and 2005 according to the IEA. Despite the rising trend in price, natural gas is expected to remain an important primary fuel for electricity generation. Gas-fired combined cycle plants are recognised for high fuel efficiency, are less capital intensive and constructed more rapidly than plants fuelled by coal, nuclear or renewable energy sources.
The adoption of natural gas is also favoured by the ‘green movement,’ because it is characterised by significantly lower emissions of sulphur dioxide, carbon dioxide and particulate matter than oil or coal.
High oil prices have motivated rapid growth in the number of gas-fired generating plants and natural gas is expected to be the fastest-growing primary energy source through until 2020, when rising extraction costs will retard the growth rate in favour of alternatives like renewable energy or nuclear power. Unless policies are implemented to curb their use, coal-fired generation plants are likely to gain popularity especially in those countries with large accessible reserves and growing industrial demand; including China and India.
Contrary to earlier forecasts, it is unlikely that natural gas consumption will oust coal as the dominant power generating energy source.
Oil products provide the largest share of final energy globally: 35% in 2010, driven by their use in transport. The substitution of renewables and natural gas is expected to erode this down to 30% by 2035. The fastest growth will be seen in renewable energy technologies, but they are unlikely to exceed 14% by 2035. Although the amount of primary energy derived from nuclear fission will nearly double, it will peak at only 6% in 2035.
Does hydrogen promise a solution?
It is significant to note that hydrogen is not mentioned in the energy outlook publications released by the EIA, IEA or BP.
The technical breakthrough that will enable the production of low cost hydrogen from water is yet to be announced.
Hydrogen, being highly reactive, only occurs naturally in stable compounds and all known separation processes are too costly for this alternative energy to compete with conventional liquid fuels.
In the early 2000s several governments pledged support for the development of infrastructure to support a hydrogen economy starting with passenger vehicles. At the close of the decade nothing like a commercial hydrogen car market exists yet and support has waned considerably, especially in the US and Canada. Stakeholders there in the hydrogen economy have shifted their near-term focus away from transport applications, to stand-alone products like standby and portable power supply units.
Energy Secretary and Nobel prize-winning physicist Steven Chu explained, “...the Department is reducing funding for the hydrogen technology programme by more than 41%, or almost $70m, in order to focus on technologies deployable at large scale in the near term.”
Car manufacturers developed Hydrogen Fuel Cell (HFC) technology and offered hydrogen-powered test-models in several countries around the world, but the motoring public has not received these vehicles with sufficient enthusiasm. In terms of infrastructure or vehicles on the road, little progress can be claimed despite the investment of $2bn globally over a 15-year period, especially when compared with the advances made by electric and hybrid drive cars.
Transportation planners and policymakers abandoned the ‘hydrogen highway’ programme envisioned by US state of California’s Governor, Arnold Schwarzenegger, in 2003 and decided instead on a more realistic pilot programme – to create a cluster of 10-20 stations in a specific region close to where the vehicles reside.
Several member countries of the International Partnership for Hydrogen and Fuel Cells in the Economy (IPHE) still maintain the vision and have announced continued investment:
* Germany is continuing to fund HFC programs, some of which go to 2013;
* Japan is continuing to fund HFC programmes to 2014;
* South Korea has aggressive plans for commercialisation and export of HFC technology that enjoy strong government support.
Up to 10 Japanese energy companies, including automakers and gas suppliers, have announced that they will put up 100 hydrogen fuelling stations in Japan by 2015.
Toyota’s Executive Vice-President for Research and Product Development, Takeshi Uchiyamada, recently announced that by 2015 they intend to be selling hydrogen cars for around $50,000 – which is half of what it costs to build them now.

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