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About East Oregonian : E.O. (Pendleton, OR) 1888-current | View Entire Issue (Jan. 13, 2016)
Page 10A OFF PAGE ONE East Oregonian Wednesday, January 13, 2016 As oil plunges, energy companies cut jobs other businesses that rely heavily on fuel, some 95,000 jobs were lost in the energy LONDON — The world’s sector by U.S.-based compa- biggest oil companies are nies in 2015, according to the slashing jobs and backing FRQVXOWLQJ ¿UP &KDOOHQJHU off major investments as the Gray & Christmas. That price of crude falls to new was up from 14,000 the year lows — and there may be before. Energy companies more pain to come. Companies like BP, which expanded as oil topped $100 said Tuesday it is cutting a barrel in 2008 and stayed 4,000 jobs, are slimming there during the early part of down to cope with the slump this decade, but prices have in oil, whose price has plum- plunged over the past two meted to its lowest level in years because of high supply 12 years and is not expected and weakening demand The start of a new year WR UHFRYHU VLJQL¿FDQWO\ IRU months, possibly years. hasn’t helped matters, with California-based Chevron Brent crude, the benchmark said last fall that it would for internationally produced eliminate 7,000 jobs, while oil, slipping below $31 a rival Shell announced 6,500 barrel on Tuesday, a drop of about 20 percent drop since layoffs. And it’s not even the big Jan. 1 and the lowest since producers that will be affected 2004. With some analysts most, but the numerous companies that do business forecasting a drop near $10 a with them, such as drilling barrel, companies are bracing contractors and equipment for more trouble. “Calling the bottom in a suppliers. While plummeting oil market is always a dangerous prices have been great news practice, akin to catching a for motorists, airlines and falling knife,” said Michael By DANICA KIRKA Associated Press Hewson, chief market analyst at CMC Markets. “But when the clamor for lower prices becomes a stampede, warning signs and alarm bells tend to start going off, which suggests that a more prudent approach might be advisable.” The uncertainty is making companies think twice before sinking money into new oil projects. That’s a problem, since even the most modest project requires vast commitments of resources over a number of years. If the industry doesn’t invest in production, that could create supply problems down the line. On the North Sea, “there is a standstill in the new project launches which may create a hole in the pipeline of proj- ects next year,” said Florent Maisonneuve, managing director and co-head of Oil & Gas at AlixPartners in Paris. Weakening demand in China, the world’s second- largest energy consumer, has helped drive the price down. So has a stronger U.S. dollar, which makes oil more expensive for buyers outside the United States. Members of OPEC, meanwhile, are refusing to cut back on production for fear of losing their share of the market to non-members like the U.S. and Russia. And OPEC states Iran and Iraq, whose industries have been off line for years because of FRQÀLFW DQG VDQFWLRQV DUH looking to start pumping more. All this means prices are unlikely to bounce back soon. “The companies are doing the best they can to survive as long as they can,” said Spencer Welch, an oil expert at analysis group IHS. “We don’t see a quick out.” In the United States, the Energy Department said Tuesday that it expects U.S. crude to average $38.54 a barrel in 2016. Fadel Gheit, an analyst at Oppenheimer & Co., said as many as half of the independent drilling companies working in U.S. VKDOH¿HOGVFRXOGJREDQNUXSW before prices stabilize. CTE: Will upgrade facilities in Heppner, Boardman and Irrigon Continued from 1A hands-on experience in two priority areas: industrial and engineering systems and hospitality/tourism manage- ment,” an IMESD press release states. “Preliminary plans include converting the gym into a professional quality kitchen with a desig- nated dining area to host local business meetings and other catered events, and the remodeling of several class- rooms to be used as lab space for the engineering, robotics and SUAS (small unmanned aircraft systems) classes.” Pendleton CTE Coordi- nator Curt Thompson said the district was planning on expanding the program regardless of whether they received the grant or not, but the grant will make it much easier to obtain needed equip- ment for the center before it opens in January 2017. The grant funding will help purchase new kitchen equipment for the culinary program, a new 3-D printer and milling machine to make prototypes for the robotics program, as well as platforms and other support equipment for the UAS program. The CTE grant will also pay for a contract employee who will help students get the opportunity to shadow people DOUHDG\ ZRUNLQJ WKH ¿HOG DV well as land internships and mentorships, and bring profes- sionals to Pendleton schools to share their expertise. With those duties expected to get easier once they’re LEHNERT: Hermiston police detective Robert Guerrero has agreed to work as undersheriff water police in 2005 until leaving as a sergeant in services, such as mental 2014 for Hermiston. health, substance abuse and “I think his personality veteran’s programs. and mine mesh well “Those can be better together, and we have redirected to assist persons common goals,” Lehnert we frequently see or deal said. with,” Lehnert said. Voters only elect Lehnert also asserted as a sheriff, but picking sheriff he would be more Guerrero could help draw available to the public and support from both Pend- other law enforcement and leton and Hermiston. VDLG WKH VKHULII¶V RI¿FH Lehnert’s latest assign- needs to be more trans- ment is policing Pilot Rock. parent in its operations. The small town struck a The agency provides civil, deal last year to pay nearby dispatch and jail services Pendleton to provide 40 that other public safety rely hours of services a week on, he said, so input from while it tries to hire another those other agencies is RI¿FHU DQG D FKLHI 3LORW “critical.” Rock residents have praised Hermiston police Lehnert’s capabilities, and detective Robert Guerrero Pendleton police Chief has agreed to work as Stuart Roberts told the Pilot Lehnert’s undersheriff, Rock City Council that should Lehnert win. The /HKQHUW KDV WKH TXDOL¿FD- two have known each other tions to be a police chief. professionally for a number If he were closer to of years, Lehnert said, and retirement, Lehnert said, Guerrero has experience as he might have applied for a criminal investigator and the Pilot Rock job. He police administrator. said even as a deputy he Guerrero started in eyed police command, so 1999 as a reserve with the working as sheriff would be Milton-Freewater Police a natural progression. Department and worked in Election Day is May 17. the Umatilla County Jail, If multiple candidates run according to Hermiston for the position, one would police. The Umatilla Tribal have to get 50 percent of Police Department hired the vote in order to win him in 2001. He then outright. If not, there would worked for Milton-Free- be a runoff in November. Continued from 1A Mexico investigating Guzman meeting, not actors involved Staff photo by E.J. Harris Senior Russell Pryor watches from a control room while operating a plasma cutter Monday in the metal shop at Pendleton High School. established, Thompson said the district is only budgeting the position for one year and will reevaluate after that. Although no new build- ings are planned, the Morrow County School District plans to upgrade its existing facilities at its high schools in Heppner, Boardman and Irrigon. The press release states the grant will be focused on upgrading infrastructure and equipment for its welding and manufacturing labs, two ¿HOGV WKDW DUH LQ GHPDQG DW the Port of Morrow, Morrow County Superintendent Dirk Dirksen said. Dirksen said the grant award was the result of a successful collaboration between the school district, the IMESD, Port of Morrow and Blue Mountain Commu- nity College, which plans to build a workforce training center in Boardman. Almost all the CTE programs in Umatilla and Morrow County are coordi- nated through the InterMoun- tain CTE Consortium, an arm of the IMESD. IMESD CTE Cooradinator Jennifer Pambrun said funding for local CTE programs has atrophied in recent years. The roughly $300,000 the IMESD receives annually from the federal government pays for programs at BMCC and the 12 school districts that comprise the consortium. ——— Contact Antonio Sierra at asierra@eastoregonian.com or 541-966-0836. MEXICO CITY (AP) ² 0H[LFDQ RI¿FLDOV DUH investigating the meeting that then-fugitive drug lord Joaquin “El Chapo” Guzman held with actor Sean Penn and actress Kate del Castillo in October to see if any crimes were committed. But government spokesman Eduardo Sanchez said late Tuesday that it is the possibility of illegal acts, UDWKHU WKDQ VSHFL¿F SHRSOH that authorities in Mexico are looking into. “We investigate actions, we don’t investigate people,” he said. “The $WWRUQH\*HQHUDO¶V2I¿FHLV investigating this event and others involving contacts that Joaquin Guzman had while he was on the run.” Carlos Barragan y Salvat- ierra, a professor of law at Mexico’s National Univer- sity, said there would be little ground to prosecute Penn or Del Castillo, unless money or gifts changed hands. Asked about scrutiny of his controversial meeting with the fugitive drug lord at a hideout in rural Mexico, Penn on Monday would only say: “I’ve got nothin’ to hide.” COLLEGE FUNDING 101 REFUGE: Group tore down stretch of fence Monday Continued from 1A The Hammonds’ case set off the occupation, but they have distanced themselves from the activists. Federal, state and local law enforcement are monitoring the occupation but have not WDNHQ DFWLRQ 2I¿FLDOV ZLWK the Harney County Joint Information Center declined to comment because of the ongoing investigation. The group tore down a stretch of govern- ment-erected fence near the refuge Monday to give a local rancher access to the range. The armed men also have accessed government ¿OHVDQGHTXLSPHQW At a community meeting that hundreds attended that night, Harney County residents repeatedly asked the group to leave. They included a Burns High School freshman, who got a standing ovation from the crowd. “And I just want them to go home so I can feel safe and I can feel like it is home again,” 15-year-old Ashlie Presley said with tears in her eyes, referring to the armed men. “I shouldn’t have to be scared in my own home- town.” But some residents also said they share the activists’ frustration with the federal government — though they don’t agree with their tactics. That same frustration was also at the heart of a message about the refuge occupation ATTEND A FREE SEMINAR TO LEARN HOW TO PAY FOR COLLEGE AP Photo/Rick Bowmer Members of the FBI stand guard at the Burns Municipal Airport, Sunday in Burns. delivered by Republican Oregon Congressman Greg Walden on the U.S. House ÀRRU ODVW ZHHN 7KH VSHHFK by Walden, whose district includes Harney County, has gone viral online. Walden told the AP on Monday that while he does not condone the occupa- tion, the armed men “have elevated the knowledge of frustration people feel in this high desert county.” Walden said that frus- tration stems from constant pressure by environmental groups who want to leave public land untouched and from the arrogance exhibited by some federal government bureaucrats who don’t follow the law and disregard the opinions of residents in the rural region. “Western culture, it’s being threatened,” Walden said. 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