Anti-Russian Alliance Fractures After Japan Decides To Stay In Russia's Sakhalin-1 Energy Project

 While Europe continues the unvarnished hypocrisy of pretending it is imposing draconian sanctions against Russian oil and gas, when instead it is merely buying the country's natural resources via such middlemen as India and China (an exercise in virtue signaling that costs it a 20% mark-up to Russian prices), less than a year since the start of the Ukraine war, some countries have had enough of pretending.

Today, the Japanese government decided to officially screw the sanctions, and remain involved in the (formerly Exxon-led) Sakhalin-1 oil and gas project in Russia, as it seeks a stable supply of energy (who doesn't) despite international sanctions on Moscow over its invasion of Ukraine, the Nikkei reported.

ExxonMobil, which held a 30% stake in Sakhalin-1, announced in March that it would withdraw from the project. But after vacillating for more than half a year, Japan decided not to follow in Exxon's footsteps.

Meanwhile, Russia set up a new company to take over the project under a presidential decree that has in effect forced investors to choose sides. Japan's Ministry of Economy, Trade and Industry is a stakeholder in Tokyo-based Sakhalin Oil and Gas Development -- which owns 30% of Sakhalin-1's current operator - along with other investors including Itochu, Japan Petroleum Exploration and Marubeni.

The Japanese consortium will make a final decision on whether to stay invested in the project after discussions with other stakeholders.

Why does this matter? Well, back in may, the G-7 nations decided to ban imports of Russian crude oil. Although the G-7 did not decide on a time frame, saying only that the ban will be enforced in a "timely and orderly fashion," Japan's continued participation in Sakhalin-1 would go against the consensus among fellow G-7 members.

In short, Japan would be the first "western" nation to officially breach the anti-Russia alliance.

Of course, there are reason: Japan relies on the Middle East for 95% of its crude imports, and sees ownership in Russian projects as essential to ensuring a stable supply of energy. But then again, one can say the same of most of the developed world, and certainly all of Europe, where Russian energy commodities serve as the basis for comfortable, modern life.

On October 7, Vladimir Putin signed a decree transferring Sakhalin-1 to a newly established company, which was registered on Oct. 14. Stakeholders in the project were given one month to decide whether to invest in the new company, and relevant Japanese agencies, including the Ministry of Economy, Trade and Industry, have been considering their options. They have now decided.

A unit of Russian state oil company Rosneft is expected to operate Sakhalin-1 after ExxonMobil. Rosneft and India's state-owned Oil and Natural Gas Corp. each previously held 20% of the project.

As a result of the chaos, operations at Sakhalin-1 have been virtually shut down, and Japan has imported no oil originating from the project recently, so losing its stake will not have an immediate impact on the country's fuel supply.

Russia has transferred operations of the Sakhalin-2 natural gas project to a new company as well. Japanese investors Mitsui & Co. and Mitsubishi Corp. decided to retain their stakes in the project, and their continued investment has been approved by the Russian government.

Translation: the upcoming G-20 will be rather awkward as Japan's PM Fumio Kushida, an anchor pillar of the G7 in Asia, may decide to sit at the table next the Xi and Putin.

https://www.zerohedge.com/energy/anti-russian-alliance-fractures-after-japan-decides-stay-russias-sakhalin-1-energy-project

Biden threatens oil companies with ‘higher tax’ if they don’t increase production

 President Biden on Monday warned that oil companies would face a “higher tax” on their excess profits if they don’t reinvest in increasing production to bring down prices at the pump. 

“They have a responsibility to act in the interest of their consumers, their community and their country, to invest in America by increasing production and refining capacity,” Biden said of the companies during a speech on Monday afternoon. 

“If they don’t, they’re going to pay a higher tax on their excess profits and face other restrictions,” he added in the remarks from the White House just more than a week before the midterm elections. 

Biden can’t unilaterally impose a tax on companies; he would need a new law to pass Congress. He pledged to work with the legislature to look at his options. 

His comments come after ExxonMobil, Chevron and Shell reported high third quarter earnings. The president name-checked both Exxon and Shell in his speech.

Legislation would face a tough path even in a Congress held by Democrats since at least 10 GOP votes would now be needed to break a GOP filibuster in the Senate.

Republicans are hoping the midterms will deliver GOP majorities in both chambers.

Gas prices soared earlier this year after Russia’s invasion of Ukraine and western and U.S. sanctions on Moscow, a major oil producer.

Biden and his allies have blamed Russian President Vladimir Putin for the high prices, and have also tried to pin the blame on the industry.

Analysts have attributed this year’s high gas prices not only to the war, but to a rebound in demand after the pandemic as well as refinery closures and outages. 

Gasoline prices averaged about $3.76 per gallon nationally on Monday, down a few cents from a week ago when they were at around $3.79 per gallon. 

While that price is still causing pain for numerous consumers, it’s also a significant drop from June highs of $5.02 per gallon. 

https://thehill.com/policy/energy-environment/3713013-biden-threatens-oil-companies-with-higher-tax-if-they-dont-increase-production/

Q3 2022 GDP Details on Residential and Commercial Real Estate

 The BEA released the underlying details for the Q3 advance GDP report on Friday.

The BEA reported that investment in non-residential structures increased at a 3.7% annual pace in Q3.  Investment in petroleum and natural gas structures increased in Q3 compared to Q2 and was up 22% year-over-year.   

Click on graph for larger image.

The first graph shows investment in offices, malls and lodging as a percent of GDP.

Investment in offices (blue) increased slightly in Q3 and was down 1.3% year-over-year.  And still declining as a percent of GDP.

Investment in multimerchandise shopping structures (malls) peaked in 2007 and was up about 16% year-over-year in Q3 - from a very low level.   The vacancy rate for malls is still very high, so investment will probably stay low for some time.

Lodging investment increased in Q3 compared to Q2, and lodging investment was up 6% year-over-year.

All three sectors - offices, malls, and hotels - were hurt significantly by the pandemic.

The second graph is for Residential investment components as a percent of GDP. According to the Bureau of Economic Analysis, RI includes new single-family structures, multifamily structures, home improvement, Brokers’ commissions and other ownership transfer costs, and a few minor categories (dormitories, manufactured homes).

Investment in single family structures was $438 billion (SAAR) (about 1.7% of GDP) and was unchanged year-over-year.

Investment in multi-family structures was up in Q3 from Q2.

Investment in home improvement was at a $335 billion Seasonally Adjusted Annual Rate (SAAR) in Q3 (about 1.3% of GDP).  Home improvement spending was strong during the pandemic but has declined as a percent of GDP recently.

Note that Brokers' commissions (black) increased sharply as existing home sales increased in the second half of 2020 but was down in Q3 2022.   Brokers' commissions were down 15% year-over-year in Q3 (and down sharply as a percent of GDP).

https://www.calculatedriskblog.com/2022/10/q3-2022-gdp-details-on-residential-and.html

Biden to Float Windfall Tax on Energy Producers

 President Joe Biden on Monday will raise the possibility of imposing a ‘windfall tax’ on energy companies, as his administration aims to combat high gas prices just days before the midterm elections.

The White House said Biden will deliver remarks to respond ”to reports over recent days of major oil companies making record-setting profits even as they refuse to help lower prices at the pump for the American people." A person familiar with the matter said Biden will float imposing a tax on the profits of energy companies, as he seeks to pressure them to lower prices for consumers. The person spoke on the condition of anonymity to preview Biden's remarks.

“Oil companies made billions in profits this quarter,” Biden tweeted on Saturday. “They’re using these record profits to pay out their wealthy shareholders instead of investing in production and lowering costs for Americans. It’s unacceptable. It’s time for these companies to bring down prices at the pump."

High prices at the pump have exacerbated inflation and have taken a toll on Biden and Democrats' standing among voters.

Congress would have to approve any additional taxes on the energy producers — which would be a tall order in the current Congress where Democrats have narrow control of the House and Senate, and even less likely should Republicans retake one or both chambers on Nov. 8.

Last week Exxon Mobil broke records with its profits in the third quarter, raking in $19.66 billion in net income, and Chevron had $11.23 billion in profits, almost reaching the record profits it attained in the prior quarter.

Americans have struggled with painfully high gasoline prices in recent months, paying more than $4.80 on average for a gallon of regular at the beginning of July, according to AAA. They've since fallen to $3.76 on average nationally, but the White House says they should be lower, given declines in global oil prices over the same period.

“Can’t believe I have to say this but giving profits to shareholders is not the same as bringing prices down for American families,” Biden tweeted on Friday.

Biden has been critical of energy companies profits since at least June, when he complained publicly that “Exxon made more money than God this year.”

https://www.usnews.com/news/business/articles/2022-10-31/ap-source-biden-to-float-windfall-tax-on-energy-producers

JPMorgan Chase wants to disrupt rent check with payments platform for landlords and tenants

 JPMorgan Chase  is betting that landlords and tenants are finally ready to ditch paper checks and embrace digital payments.

The bank is piloting a platform it created for property owners and managers that automates the invoicing and receipt of online rent payments, according to Sam Yen, chief innovation officer of JPMorgan’s commercial banking division.

While digital payments have steadily taken over more of the world’s transactions, boosted in recent years by the pandemic, there is one corner of commerce where paper still reigns supreme: the monthly rent check. That’s because the market is highly fragmented, with most of the country’s 12 million property owners running smaller portfolios of fewer than 100 units.

As a result, about 78% are still paid using old-school checks and money orders, according to JPMorgan. More than 100 million Americans pay a combined $500 billion annually in rent, the bank said.

“The vast majority of rent payments are still done through checks,” Yen said in a recent interview. “If you talk to residents to this day, they often say ‘The only reason I have a checkbook still is to pay my rent.’ So there are lots of opportunities to provide efficiencies there.”

JPMorgan has spent the past few years working on the software, called Story, which is meant to ultimately become an all-in-one property management solution.

They aimed at first improving the rent-collection process because it’s the “most time-intensive process that exists today for a real estate owner-operator,” according to Kurt Stuart, who runs JPMorgan’s commercial term lending for the Northeast region.

Besides having to manually collect paper checks and depositing them, landlords typically lean on decades-old software including Microsoft’s Excel and Intuit’s QuickBooks to run their businesses, said Yen. Newer options more tailored to the real estate industry have appeared in recent years with names like Buildium and TurboTenant. None are dominant yet, according to the executive.

Story will “give [property owners and managers] much more visibility across their entire portfolio to see exactly what’s been paid and what hasn’t been paid,” Yen said.

JPMorgan hopes to gain traction by offering users valuable insights through data and analytics, including how to set rent levels, where to make future investments and even assist in screening tenants, according to Yen.

While the bank says it is the country’s top lender to multifamily property owners with $95.2 billion in loans out at midyear, it is aiming beyond its 33,000 clients in the sector.

Landlords and renters don’t have to be JPMorgan customers to sign up for the platform when it is released more broadly next year, said Yen. The bank hasn’t yet finalized its fee structure for the product, he said.

Residents can automate monthly rent payments, receive notifications and view their payment history and lease agreement through an online dashboard. That provides ease of mind versus mailing out a paper check, Yen said.

It’s part of the bank’s larger push to create digital experiences, fend off fintech rivals and solidify client relationships. Under CEO Jamie Dimon, the bank has committed to spending more than $12 billion a year on technology, a staggering figure that has raised eyebrows among bank analysts who called for greater clarity into investments this year.

JPMorgan hopes to move beyond making loans to property owners to eventually capture “a significant portion” of the $500 billion in annual rent payments with its software, commercial banking CEO Doug Petno told analysts in May.

“We’ve been investing to build comprehensive payments and rent solutions capabilities specifically for our multifamily clients,” Petno said. “In doing this, we hope to create an entirely new and substantial revenue opportunity for our business.”

https://www.cnbc.com/2022/10/31/jpmorgan-chase-unveils-payments-platform-for-landlords-and-tenants.html

2020 Census Errors Affect Elections, Aid Blue States, Hurt Red States

 by Petr Svab via The Epoch Times (emphasis ours),

Republican-leaning states have been shortchanged at least three congressional seats and electoral college votes because their population was undercounted in the 2020 census. Democrat-leaning states received at least one extra seat and vote due to census overcounts and kept at least two they should have lost, according to an analysis of Census Bureau’s post-census survey.

The bureau acknowledged the errors but said there’s no way to correct them until the next census in 2030.

Several experts and at least one lawmaker have expressed concern over the errors.

“It’s consistently undercounting red states and consistently overcounting blue states,” commented Hans von Spakovsky, head of the Election Law Reform Initiative at the conservative Heritage Foundation.

He called it “a very odd coincidence,” noting that “so far, the Census Bureau hasn’t really explained how and why they made these mistakes.”

It appears the first to sound the alarm over the issue back in June was Fair Lines America (FLA), a conservative-leaning nonprofit focused on redistricting issues.

“It’s obviously concerning that there’s a pattern in the error of the census,” said Adam Kincaid, executive director of FLA and the National Republican Redistricting Trust.

The Census Bureau identified 14 states with statistically significant errors in the census count. Arkansas, Florida, Illinois, Mississippi, Tennessee, and Texas—all GOP-dominated, save for Illinois—were undercounted. Meanwhile, Delaware, Hawaii, Massachusetts, Minnesota, New York, Ohio, Rhode Island, and Utah—all Democrat-dominated save for Ohio and Utah—were overcounted.

For comparison, no state saw a significant error in the 2000 and 2010 censuses.

The 2020 error pattern still holds when including states where the miscount didn’t reach statistical significance. Among all the 50 states and the District of Columbia, only two Democrat-leaning states registered an undercount: Illinois and Maryland. On the other hand, 12 Democrat-leaning states saw overcounts of at least 1 percent, compared to five Republican-leaning states: Alaska, Ohio, Oklahoma, Utah, and West Virginia. States with no clear-cut leaning, such as Michigan, Pennsylvania, and Virginia, tended to have relatively accurate counts.

Unanswered Questions

The 2020 Census was unprecedented in several ways. Due to COVID-19 policies, census workers were initially blocked from knocking on the doors of people who didn’t respond to the census online or by mail. Furthermore, a large number of people temporarily moved during the lockdowns. Access was limited at facilities where the virus was spreading particularly fast, such as nursing homes as well as prisons to some extent. College students were largely sent home. The Census Bureau tried to fill gaps in coverage by guessing how many people lived where using administrative records, such as driver’s license data. All these factors presented additional challenges that could explain why this census was particularly inaccurate.

Such factors, however, don’t answer why the errors benefited Democrats so consistently, Kincaid and von Spakovsky said.

Some of the states with the most protracted lockdowns, such as Michigan, New Jersey, New Mexico, and Connecticut, where census workers would have been expected to have the greatest troubles overcoming COVID-related restrictions, had some of the most accurate counts.

Furthermore, the bureau has yet to fully explain what methods it used to navigate the challenges. How did it ensure, for example, that the administrative records it used in fact reflected reality?

“We don’t have good answers for those things,” Kincaid said.

His group tried to obtain further data and answers from the bureau through Freedom of Information Act requests, but most of the information was denied on confidentiality grounds, he said.

“What the pattern suggests is that there is some sort of issue with the methodology that seems to favor blue states over red states, and I continue to believe that it’s important for the Census Bureau to open up its books and be more transparent,” he said.

The lack of transparency is particularly pernicious when combined with the lockdown challenges that seem to have made the process more opaque.

“It opened the door for more bias whether intentional or unintentional,” Kincaid said.

Von Spakovsky urged Congress to launch investigations into the matter and get answers from the bureau “so we can decide whether this was intentional bias or whether it just was bad procedures and bad practices. It’s got to be one or the other.”

“You certainly can’t have this happen again and Congress needs to figure out whether there’s any way they can fix this,” he said.

So far, there appears to be only one lawmaker asking questions about the issue—Rep. Troy Nehls (R-Texas).

https://www.zerohedge.com/political/2020-census-errors-affect-elections-aid-blue-states-hurt-red-states

U.S. LNG Cannot Replace The Russian Natural Gas That Europe Has Lost

by Tsvetana Paraskova via OilPrice.com,

• Europe has relied on U.S. LNG imports to offset the loss of Russian gas, with nearly 70% of U.S. LNG exports heading to Europe in September.
• In the long term, Europe will have to find other sources of natural gas as its inventories are likely to drain over the upcoming winter.
• Ultimately, Europe will have to reduce demand for natural gas going forward as there is very little available supply left.

Europe cannot rely solely on imports of U.S. LNG to offset the pipeline gas supply it will have lost from Russia when it starts rebuilding inventories after the end of this winter, according to BloombergNEF.

So far this year, American LNG has been crucial in meeting demand in Europe, which is scrambling for gas supply and willing to pay up for spot deliveries, outbidding most of Asia.

The United States is shipping record volumes of LNG to Europe to help EU allies and nearly 70% of all American LNG exports were headed to Europe in September, according to Refinitiv Eikon data cited by Reuters.  

However, the significant drop in Russian gas supply this year occurred only in June, meaning that Europe could still stock up on some Russian gas earlier this year.

Ahead of the 2023/2024 winter, however, the gap in gas supply in Europe will be much wider without Russian gas. Europe will not be importing much Russian gas—or none at all if Russia cuts off deliveries via the one link left operational via Ukraine and via TurkStream—compared to relatively stable imports from Russia in the first half of this year, before Moscow started gradually cutting volumes via Nord Stream in June until shutting down the pipeline in early September.

“The year-on-year increase is not sufficient to offset a total cut in Russian piped supply with under half of these volumes met by LNG increases,” BNEF analyst Arun Toora said.

“The good news is that Russia looks close to having played its last card in terms of gas leverage over Europe. However Europe’s challenges will not disappear with the daffodils next spring,” London-based consultancy Timera Energy said in a winter gas market outlook at the beginning of October.

Without most of the Russian gas supply, Europe will likely need to offset around 40 bcm of additional lost Russian flows next year. LNG alone cannot meet this volume, considering a lack of new global liquefaction capacity in the short-term, including in the U.S., limited further demand elasticity in Asia, and European regasification capacity constraints. Therefore, European demand will need to fall, Timera Energy said.

https://www.zerohedge.com/political/us-lng-cannot-replace-russian-natural-gas-europe-has-lost

Fuel company diesel shortage warning: conditions 'rapidly devolving'

 A major fuel supply and logistics company is raising a red flag on upcoming diesel fuel shortages.

Mansfield Energy issued the alert Friday stating there was a developing diesel fuel shortage in the southeastern region of the United States. The company speculated that the shortage could be generated from "poor pipeline shipping economies" and a historically low supply of diesel reserves.

"Poor pipeline shipping economics and historically low diesel inventories are combining to cause shortages in various markets throughout the Southeast," the company said. "These have been occurring sporadically, with areas like Tennessee seeing particularly acute challenges."

States that are expected to experience serious effects of the shortage include Maryland, Virginia, Alabama, Georgia, Tennessee, North Carolina and South Carolina.

The Biden administration says it is keeping a close watch on diesel inventories and working to boost supplies, following news that reserves have been depleted and could run out in less than a month if not replenished, sparking fears of shortages and rising prices.

The Energy Information Administration (EIA) reported this week that, as of Oct. 14, the U.S. had only 25 days of reserve diesel supply, a low not seen since 2008. National Economic Council Director Brian Deese acknowledged to Bloomberg that the level is "unacceptably low" and that "all options are on the table" to address the situation.

"Because conditions are rapidly devolving and market economics are changing significantly each day, Mansfield is moving to Alert Level 4 to address market volatility," Mansfield's press statement said. 

The company continued, "Mansfield is also moving the Southeast to Code Red, requesting 72-hour notice for deliveries when possible to ensure fuel and freight can be secured at economical levels."

The Northeast Home Heating Oil Reserve (NEHHOR) holds roughly one million barrels of home heating oil. House Democrats from New England are asking President Biden to release some of those reserves to help reduce home heating prices in the region, leading into the winter months.

But experts say the developing home heating oil shortage is not going away anytime soon.

https://www.foxbusiness.com/politics/fuel-company-issues-diesel-shortage-warning-says-conditions-rapidly-devolving

Canada raises hurdles for overseas deals targeting critical minerals

 The Canadian government is making it harder for foreign state-owned companies to close deals targeting critical minerals in the resource-rich country.

“Significant transactions by foreign state-owned companies in Canada’s critical mineral sectors will only be approved in exceptional cases with a likely net benefit,” Canada’s federal government said in a statement on Friday. Such deals could also give the government “reasonable reason to believe that the investment could harm Canada’s national security,” it said.

Canada and its allies are increasingly concerned about securing critical minerals needed for a range of commodities from electric vehicles to smartphones while pushing back China’s industrial supremacy. US Treasury Secretary Janet Yellen, during a trip to Canada in June, advocated “friend-shoring” to reduce US dependence on China for key materials.

“Canada will act decisively when investments threaten our national security and our critical mineral supply chains,” Industry Minister Francois-Philippe Champagne and Natural Resources Minister Jonathan Wilkinson said in the joint statement.

Canada’s latest rules apply to investments regardless of value, direct or indirect, controlling or non-controlling, and across all stages of the value chain, under the updated policy.

Canada has identified 31 minerals considered critical to the success of Canada and its allies, including the US. Many of these minerals, including what are known as battery metals, are key ingredients in technologies needed for the global shift to electrification and the push away from fossil fuels.

Canada’s government has said the country’s wealth in critical minerals represents a “generational economic opportunity” that will help accelerate the transition to renewable energy.

https://canadatoday.news/ca/canada-raises-hurdles-for-overseas-deals-targeting-critical-minerals-126389/

NMHC: Survey shows "Apartment Market Softens" in October

 From the National Multifamily Housing Council (NMHC): Apartment Market Softens, Sales Put on Hold Amidst Rising Rates and Economic Uncertainty

Rising interest rates caused by the Federal Reserve’s ongoing efforts to combat inflation continue to impact the multifamily business. However, it is worth noting that the overall apartment market has begun to revert to pre-pandemic trends as rent growth is decreasing.

Apartment market conditions weakened in the National Multifamily Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions for October 2022, as the Market Tightness (20), Sales Volume (6), Equity Financing (13), and Debt Financing (5) indices all came in well below the breakeven level (50).

“The Fed’s continued interest rate hikes have resulted in higher costs of both debt and equity and a higher degree of economic uncertainty," noted NMHC’s Chief Economist Mark Obrinsky. “This has caused the market for apartment transactions to come to a virtual standstill, as buyers seek a higher rate of return that sellers are unwilling to accommodate via lower prices.”

“The physical apartment market is also starting to normalize after six consecutive quarters of tightening conditions, with a majority of survey respondents reporting higher vacancy and lower rent growth compared to the three months prior

.”
...
• Market Tightness Index came in at 20 this quarter — well below the breakeven level (50) — indicating looser market conditions for the first time in six quarters. The majority of respondents (66%) reported markets to be looser than three months ago, while only 5% thought markets have become tighter. The remaining 29% of respondents thought that market conditions were unchanged over the past three months, a considerable decline from the 56% of respondents who said the same in July.
...
It is important to remember that the index does not measure the magnitude of change but, rather, the degree to which respondents agree on the direction of change. For instance, an index value of 0 in market tightness would indicate that all respondents believe market conditions have become looser, but this does not tell us how much looser markets have become.

Click on graph for larger image.

This graph shows the quarterly Apartment Tightness Index. Any reading below 50 indicates looser conditions from the previous quarter. 

The quarterly index plunged to 20 in October, from 51 in July.

This index has been an excellent leading indicator for rents and vacancy rates, and this suggests higher vacancy rates and slower rent growth.  

https://www.calculatedriskblog.com/2022/10/nmhc-survey-shows-apartment-market.html

Money-Losing Airbnb Hosts Have Three Options

 Airbnb won’t report its third quarter results until Nov. 1, but some hosts have been noticing a sharp fall in bookings over the last few months. If short-term bookings dry up, it could mean trouble for anyone relying on Airbnb income to defray the costs of owning a second home.

It’s understandable if a sudden decrease in rentals has caught hosts by surprise. For the last few years, investing in vacation rentals seemed like excellent way to earn additional income. Yes, there are loan costs and maintenance costs, and your capital is tied up in property. But mortgage rates were low and property values seemed to keep going up.

Even so, there are at least four major risks any Airbnb host has to consider if they still expect to earn money from their property as the economy slows down.

First, there’s the risk of making overly optimistic financial assumptions. Turnover costs, unexpected cancellations, and dead times during seasons that aren’t popular would lower revenue forecasts. A host might only be able to rent a property out for, say, 100 days a year. Projected costs must also include hiring a professional property management costs fees of say 15% if you won’t manage the rental yourself and Airbnb’s fee of roughly 14%. It’s also easy to underestimate property maintenance costs. Being a top host means furnishing the space like a corporate hotel, with new linens, furniture, and fancy coffee makers. Short-term guests are hard on a property, generating higher-than-usual maintenance expenses.

The second risk is a sudden drop in demand. Tourism is particularly vulnerable to disaster events like hurricanes, wildfires and even algal blooms. Tourists have lots of choices; if a destination is suddenly less attractive, they can easily cancel their trip or shorten their stay.

This brings me to risk number three: political risk. As short-term rental platforms have experienced rapid growth, local governments have been pushed by hotels and housing advocates to impose limits. For example, New York has passed laws restricting short-term rentals, making it harder for hosts to rent out rooms in apartment buildings. Other cities have followed suit.

Finally, there’s oversupply. You might have a great place in an attractive location; but if the supply has outgrown demand, there could be a nosedive in rents or a lack of bookings. In large cities with high housing costs, lots of hotels, and lots of other Airbnb hosts, it is tougher to command a price premium.

Smaller cities may not necessarily be a better bet. In late January 2020, I remember visiting Sedona, Arizona, and chatting with a New Jersey couple who had also been enchanted by the red rock wonderland. They were sorely tempted to buy a house and rent it out on Airbnb for the weeks they wouldn’t be there. But Sedona is one of the worst places to be an Airbnb host, according to AirDNA, an analytics firm that ranks the best places to invest in short-term rentals. It rates Sedona poorly due to high housing prices, low demand and a large number of listings on the market already.

Hosts looking to get out of the business have three options: sell, rent to a long-term tenant, or move in.

Housing prices are falling, but supply is still tight, so depending on how much the property has appreciated, selling might not be a bad option. Leasing the property long-term might be the best choice in some markets, especially where rental prices are high. Moving in is a very personal choice with a lot of accompanying costs.

Of course, not every Airbnb host is renting out their vacation home. Some are renting out their only home and using the extra income to balance their budgets. I know an LA family — two adults and two teens — who move in with friends and rent out their home when they need back-to-school clothes or a car repair. A more predictable source of income might be a long-term roommate, but that comes with legal complications — long-term renters have more rights — as well as privacy considerations.

Even if Airbnb itself reports another quarter of impressive earnings, if the hosting math isn’t working for you, it may be time to cut your losses.

https://worldnewsera.com/news/entrepreneurs/analysis-money-losing-airbnb-hosts-have-three-options/

Top Dems Urge Biden To Nationalize Oil & Gas Industry

 by Michael Shellenberger via Substack,

Calls for Biden to socialize industry have moved quickly from fringe to mainstream...

The energy crisis is worsening. The U.S. has fewer than 30 days of diesel and other distillate fuels, the lowest level since 1945. Supplies are so low that there will be shortages and price spikes within six months unless the U.S. enters recession, experts warn. In response, the Biden administration is releasing more oil from the Strategic Petroleum Reserve. But the reserves are of crude oil, not refined oil products such as diesel. And the releases are stifling investment in future oil production. “People are depleting their emergency stocks,” warned Saudi Arabia’s energy minister earlier this week. “Losing emergency stocks may become painful in the months to come.”

In response, influential Democrats, including a leading U.S. Senate candidate, a former Department of Energy official, and an influential energy expert, are urging the U.S. government to socialize America’s oil and gas firms.

At a Houston conference last week, Jason Bordoff, Dean of Columbia University’s Climate School, called for the “nationalization” of oil and gas companies. “Government must take an active role in owning assets that will become stranded,” he said, “and plan to strand those assets.” By “strand” Bordoff meant “make financially worthless.” Bordoff made the point at least twice during the confrerence. Bordoff’s call shocked many in the audience. “Jason is smart, well-informed, and well-connected to the Biden Administration,” said someone who was at the conference, “so these comments are scary.”

Democratic U.S. Senate Candidate from Wisconsin Tom Nelson (left) and energy expert Jason Bordoff (right) are urging the Biden administration to nationalize U.S. oil and gas companies.

The calls come on the heels of two other Democrat-led efforts to expand U.S. government control over oil and gas production.

One is a piece of legislation called “NOPEC,” which passed the Senate Judiciary Committee in May.

The bill would change U.S. antitrust law to revoke a policy of sovereign immunity, which protects OPEC+ members from lawsuits. If NOPEC became law, the U.S. attorney general could sue Saudi Arabia and other OPEC members in court. The result could be a disruption of global supplies of oil and other commodities if nations retaliated against the U.S.

The other is an effort led by Treasury Secretary Janet Yellen to cap the price of Russian oil sold on global markets, which I and many other experts have warned since June is unworkable, because China and India have said they would circumvent it, and could backfire, resulting in far higher oil prices.

Last week, analysts with Rapidan Energy told the same Houston conference that the December 5 implementation of the Russian price cap could reduce global supplies of oil by 1.5 million barrels per day. Such an amount would create an oil price shock.

Earlier this month, Bordoff told the World Economic Forum, which has called for a “Great Reset” to quickly move from fossil fuels to renewables, that climate change required a “massive transition” that is “going to be messy, it’s going to be disruptive.”

Said Bordoff, “I think part of the broader macro environment that's happening now is one of more disruptive change because of climate impacts, but also more disruptive change because of geopolitics coming out of the pandemic, coming out of this conflict, completely rethinking what the World Economic Forum is all about.”

https://www.zerohedge.com/political/top-dems-urge-biden-nationalize-oil-gas-industry

Here's Every EV Charging Station Across The US

 As the electric vehicle market continues to expand, having enough EV charging stations is essential to enable longer driving ranges and lower wait times at chargers.

Currently, the U.S. has about 140,000 public EV chargers distributed across almost 53,000 charging stations, which are still far outnumbered by the 145,000 gas fueling stations in the country.

In the graphic below, Visual Capitalist's Niccolo Conte and Christina Kostandi map out EV charging stations across the U.S. using data from the National Renewable Energy Lab.

The map has interactive features when viewed on desktop, showing pricing structures and the connector types when hovering over a charging station, along with filtering options.

Which States Lead in EV Charging Infrastructure?

As seen in the map above, most electric vehicle charging stations in the U.S. are located on the west and east coasts of the nation, while the Midwest strip is fairly barren aside from the state of Colorado.

California has the highest number of EV charging stations at 15,182, making up an impressive 29% of all charging stations in America. In fact, the Golden State has nearly double the chargers of the following three states, New York (3,085), Florida (2,858), and Texas (2,419) combined.

 

It’s no surprise the four top states by GDP have the highest number of EV chargers, and California’s significant lead is also unsurprising considering its ambition to completely phase out the sale of new gas vehicles by 2035.

 

The Best States for EV Charging Speeds and Cost

While having many charging stations distributed across a state is important, two other factors determine charging convenience: cost and charger level availability.

EV charger pricing structures and charger level availability across the nation are a Wild West with no set rules and few clear expectations.

Finding Free Electric Vehicle Chargers Across States

Generous electric vehicle charging locations will offer unlimited free charging or a time cap between 30 minutes and 4 hours of free charging before payment is required. Some EV charging stations located in parking structures simply require a parking fee, while others might have a flat charging fee per session, charge by kWh consumed, or have an hourly rate.

While California leads in terms of the raw amount of free chargers available in the state, it’s actually the second-worst in the top 10 states when it comes to the share of chargers, at only 11% of them free for 30 minutes or more.

 

Meanwhile, Maryland leads with almost 30% of the chargers in the state that offer a minimum of 30 minutes of free charging. On the other hand, Massachusetts is the stingiest state of the top 10, with only 6% of charging stations (150 total) in the state offering free charging for electric vehicle drivers.

 

The States with the Best DC Fast Charger Availability

While free EV chargers are great, having access to fast chargers can matter just as much, depending on how much you value your time. Most EV drivers across the U.S. will have access to level 2 chargers, with more than 86% of charging stations in the country having level 2 chargers available.

Although level 2 charging (4-10 hours from empty to full charge) beats the snail’s pace of level 1 charging (40-50 hours from empty to full charge), between busy schedules and many charging stations that are only free for the first 30 minutes, DC fast charger availability is almost a necessity.

Direct current fast chargers can charge an electric vehicle from empty to 80% in 20-60 minutes but are only available at 12% of America’s EV charging stations today.

 

Just like free stations, Maryland leads the top 10 states in having the highest share of DC fast chargers at 16%. While Massachusetts was the worst state for DC charger availability at 6%, the state of New York was second worst at 8% despite its large number of chargers overall. All other states in the top 10 have DC chargers available in at least one in 10 charging stations.

 

As for the holy grail of charging stations, with free charging and DC fast charger availability, almost 1% of the country’s charging stations are there. So if you’re hoping for free and DC fast charging, the chances in most states are around one in 100.

The Future of America’s EV Charging Infrastructure

As America works towards Biden’s goal of having half of all new vehicles sold in 2030 be zero-emissions vehicles (battery electric, plug-in hybrid electric, or fuel cell electric), charging infrastructure across the nation is essential in improving accessibility and convenience for drivers.

The Biden administration has given early approval to 35 states’ EV infrastructure plans, granting them access to $900 million in funding as part of the $5 billion National Electric Vehicle Infrastructure (NEVI) Formula Program set to be distributed over the next five years.

Along with this program, a $2.5 billion Discretionary Grant Program aims to increase EV charging access in rural, undeserved, and overburdened communities, along with the Inflation Reduction Act’s $3 billion dedicated to supporting access to EV charging for economically disadvantaged communities.

With more than $10 billion being invested into EV charging infrastructure over the next five years and more than half the sum focused on communities with poor current access, charger availability across America is set to continue improving in the coming years.

https://www.zerohedge.com/technology/heres-every-ev-charging-station-across-us