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Magali Sanchez-Hall, a Wilmington resident for over two decades, has struggled with asthma her entire life. She says the health issue stems from her proximity to oil and gas drilling.
Emma Newburger | CNBC

LOS ANGELES, CALIF. — Stepping out of a coffee shop near Interstate 110 in the Wilmington neighborhood of Los Angeles, you’re immediately hit by a foul odor.

Magali Sanchez-Hall, 51, who’s lived here for more than two decades, is used to the smell of rotting eggs wafting from the hundreds of oil wells operating in the neighborhood. She’s used to her neighbors describing chronic coughs, skin rashes and cancer diagnoses, and to the asthma that affects her own family, who live only 1,500 feet from a refinery.

“When people are getting sick with cancer or having asthma, they might think it’s normal or blame genetics,” she said. “We don’t often look at the environment we’re in and think — the chemicals we’re breathing are the cause.”

Wilmington, a predominantly working-class and Latino immigrant community of more than 50,000 people, has some of the highest rates of asthma and cancer in the state, according to a report by the non-profit Communities for a Better Environment. It’s surrounded by six oil refineries and wedged in by several freeways and the ports of L.A. and Long Beach.

California, the seventh-largest oil-producing state in the U.S., has no rule or standard for the distance that active oil wells need to be from communities. For many Californians, especially Black and brown residents, acrid smells, noise and dirt from oil production is part of the neighborhood.

Walking around Wilmington, pumpjacks are visible in public parks, next to schoolyards where children play and outside of people’s windows at home. At night, the sky is lit orange from refinery flares.

The discovery of oil in the 1920s led to significant population growth in the area. People built and bought houses next to the oil fields and refineries, which employ thousands of residents in the area. In L.A. County, the industry employs about 37,000 people, according to a report by Capitol Matrix Consulting.

Oil tanks wedged between homes in the Wilmington neighborhood of Los Angeles.
Emma Newburger | CNBC

More than 2 million California residents live within 2,500 feet of an operational oil and gas well and another 5 million — 14% of the state’s population — are within 1 mile, according to an analysis by the non-profit FracTracker Alliance.

Residents are especially vulnerable in L.A. County, which is home to the Inglewood Oil Field. The 1,000-acre site is one of the largest urban oil fields in the country and is owned and operated by Sentinel Peak Resources. More than half a million people live within a quarter mile of active wells that release hazardous air pollutants like benzene, hydrogen sulfide, particulate matter and formaldehyde.

Sentinel Peak did not respond to requests for comment.

Sanchez-Hall didn’t understand the link between the nearby refineries and the health issues in her community until she left. She graduated college and pursued a masters degree at UCLA, where she took environmental law classes, and now advocates for clean air and energy in her neighborhood.

“Wilmington is ground zero for pollution,” Sanchez-Hall said. “Now I understood why people were dying of cancer around me. We’re not disposable people. There is a huge disadvantage because many of us don’t know what’s happening.”

No buffer zone between drilling and people

Research shows that people who live near oil and gas drilling sites are exposed to harmful pollution and are at greater risk of preterm births, asthma, respiratory disease and cancer.

Residing near oil wells is linked to reduced lung function and wheezing, and in some cases the respiratory damage rivals that of daily exposure to secondhand smoke or living beside a freeway, according to a recent study published in the journal Environmental Research.

Another study, published in the journal Environmental Health Perspectives, analyzed nearly 3 million births in California of women living within 6.2 miles of at least one oil or gas well. The authors concluded that living near those wells during pregnancy increased the risk of low-birthweight babies.

Environmental advocacy groups have urged California Gov. Gavin Newsom to instate a 2,500-foot buffer zone, or setback, between fossil fuel operations and homes and schools. This year, a bill to ban fracking and instate a buffer zone failed in a state committee vote.

Other oil-producing states including Colorado, Pennsylvania, and Texas have already implemented some form of buffer zone between properties and wells.

In 2019, Newsom ordered his regulators to study such a health-and-safety rule, but they didn’t meet the December 2020 deadline for action. State oil regulators also missed a more recent deadline in the spring to release new regulations that would help protect the health and safety of people living near drilling sites. The California Geologic Energy Management Division, which oversees the state’s fossil fuel industries, hasn’t yet set a new timeline for regulations.

Meanwhile, the governor since 2019 has approved roughly 9,014 oil and gas permits, according to an analysis of state data by Consumer Watchdog and FracTracker Alliance.

“Frontline communities have been waiting for very basic protections from dangerous oil and gas projects for too long,” said Hollin Kretzmann, an attorney for the Center for Biological Diversity, which recently sued the state for approving thousands of drilling and fracking projects without the required environmental review.

“A safety buffer is the bare minimum,” Kretzmann said. “The fact that our state continues to delay is frustrating and completely unacceptable.”

Josiah Edwards, 21, grew up near the largest oil refinery on the West Coast. “Oil drilling and refineries were always an ever present background in my life,” he said.
Emma Newburger | CNBC

The Western States Petroleum Association and the State Building and Construction Trades Council have opposed a statewide mandate to establish buffer zones, arguing that doing so would harm workers and increase fuel costs.

“A one-size-fits-all approach for an entire state for an issue like this is rarely good public policy,” said WSPA spokesman Kevin Slagle. “Setback distances not based data specific to a region could lead to significant impacts on communities, jobs and the affordability and reliability of energy in the state.”

Environmentalists have also called on Newsom to place an immediate moratorium on all new oil and gas permits in those zones.

Earlier this year, the governor directed state agencies to halt new fracking permits by 2024 and to consider phasing out oil production by 2045. The announced marked a shift in position by Newsom, who’s previously said he doesn’t have executive authority to ban fracking, which accounts for just 2% of oil extraction in California, according to the state’s Department of Conservation.

Newsom’s office did not respond to requests for comment.

Newsom’s predecessor, Jerry Brown, who held office between 2011 and 2018, approved 21,397 new oil wells. More than three-quarters of new wells under Brown’s administration are in low-income communities and communities of color, according to state data analyzed by the Center for Biological Diversity.

‘I could have had a better life’

Josiah Edwards, 21, grew up in Carson, a city located in the south bay region of Los Angeles and near the West Coast’s largest oil refinery, owned by Marathon Petroleum Corp. Edwards and his family members suffered from asthma and were constantly concerned about breathing in emissions of the nearby refineries.

“Oil drilling and refineries were always an ever present background in my life,” said Edwards, who now volunteers for the Sunrise Movement, an environmental advocacy group, in Los Angeles.

Edwards recalled getting bloody noses as a child and coming to connect them with the pollution from refineries. He dove into research on how exposure to pollution may contribute to the development of asthma in childhood and wondered if his life would have been different growing up elsewhere.

“It makes me angry and upset. There’s a situation where I could have had a better life with improved health outcomes,” Edwards said. “Even though it still makes me feel angry, I find a lot of hope in what could be. There’s a potential for change.”

Marathon spokesman Jamal Kheiry said the company’s refinery in Carson has invested in air emissions control equipment and cut its criteria pollutant emissions by 35% in the past decade. It’s also invested $25 million to install air monitoring systems along the perimeter of its facilities, and is providing those results to the public.

Wilmington Athletic Complex is located beside oil tanks.
Emma Newburger | CNBC

Phasing out oil and gas locally

Some parts of the state have taken matters into their own hands.

Culver City in L.A. County passed an ordinance to phase out oil and gas extraction in its portion of the Inglewood Oil Field within five years, in one of the most ambitious moves by an oil-producing jurisdiction. The ordinance also requires that all the wells be plugged and abandoned in that time period.

Ventura County, located northwest of L.A., has adopted a 2,500 buffer zone between oil wells and schools and 1,500 feet between wells and homes.

And L.A. County supervisors voted unanimously earlier this month to phase out oil and gas drilling and ban new drill sites in the unincorporated areas. The county is set to determine the quickest way to shut down wells legally before providing a timeline on the phase out.

Jacob Roper, a spokesperson for the Department of Conservation, of which CalGEM is a sub-agency, said the department is “hard at work developing a science-based health and safety regulation to protect communities and workers from the impacts of oil extraction activities.”

“This is a complex set of rules with subject matter outside of our previous regulatory experience,” Roper said. “It involves close collaboration with other state agencies and an independent public health expert panel in an effort to ensure a thorough analysis of relevant science and engineering practices.”

L.A. could become one of the first major cities in the U.S. to nearly phase out fossil fuels from power supply without disruption to the economy, according to a recent study commissioned by the city. Technologies like solar farms, wind turbines, batteries and electric vehicles would make the transition possible, while mitigating harmful air pollution in the most vulnerable communities.

“There are local officials who are taking this issue seriously,” Kretzmann said. “But the fires, ongoing drought and heatwaves in California are stark reminders that we need much bolder action on fossil fuels.”

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The aluminum sector isn’t moving to the U.S. despite tariffs — due to one key reason

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The aluminum sector isn't moving to the U.S. despite tariffs — due to one key reason

HAWESVILLE, KY – May 10

Plant workers drive along an aluminum potline at Century Aluminum Company’s Hawesville plant in Hawesville, Ky. on Wednesday, May 10, 2017. (Photo by Luke Sharrett /For The Washington Post via Getty Images)

Aluminum

The Washington Post | The Washington Post | Getty Images

Sweeping tariffs on imported aluminum imposed by U.S. President Donald Trump are succeeding in reshaping global trade flows and inflating costs for American consumers, but are falling short of their primary goal: to revive domestic aluminum production.

Instead, rising costs, particularly skyrocketing electricity prices in the U.S. relative to global competitors, are leading to smelter closures rather than restarts.

The impact of aluminum tariffs at 25% is starkly visible in the physical aluminum market. While benchmark aluminum prices on the London Metal Exchange provide a global reference, the actual cost of acquiring the metal involves regional delivery premiums.

This premium now largely reflects the tariff cost itself.

In stark contrast, European premiums were noted by JPMorgan analysts as being over 30% lower year-to-date, creating a significant divergence driven directly by U.S. trade policy.

This cost will ultimately be borne by downstream users, according to Trond Olaf Christophersen, the chief financial officer of Norway-based Hydro, one of the world’s largest aluminum producers. The company was formerly known as Norsk Hydro.

“It’s very likely that this will end up as higher prices for U.S. consumers,” Christophersen told CNBC, noting the tariff cost is a “pass-through.” Shares of Hydro have collapsed by around 17% since tariffs were imposed.

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The downstream impact of the tariffs is already being felt by Thule Group, a Hydro customer that makes cargo boxes fitted atop cars. The company said it’ll raise prices by about 10% even though it manufactures the majority of the goods sold in the U.S locally, as prices of raw materials, such as steel and aluminum, have shot up.

But while tariffs are effectively leading to prices rise in the U.S., they haven’t spurred a revival in domestic smelting, the energy-intensive process of producing primary aluminum.

The primary barrier remains the lack of access to competitively priced, long-term power, according to the industry.

“Energy costs are a significant factor in the overall production cost of a smelter,” said Ami Shivkar, principal analyst of aluminum markets at analytics firm Wood Mackenzie.  “High energy costs plague the US aluminium industry, forcing cutbacks and closures.”

“Canadian, Norwegian, and Middle Eastern aluminium smelters typically secure long-term energy contracts or operate captive power generation facilities. US smelter capacity, however, largely relies on short-term power contracts, placing it at a disadvantage,” Shivkar added, noting that energy costs for U.S. aluminum smelters were about $550 per tonne compared to $290 per tonne for Canadian smelters.

Recent events involving major U.S. producers underscore this power vulnerability.

In March 2023, Alcoa Corp announced the permanent closure of its 279,000 metric ton Intalco smelter, which had been idle since 2020. Alcoa said that the facility “cannot be competitive for the long-term,” partly because it “lacks access to competitively priced power.”

Similarly, in June 2022, Century Aluminum, the largest U.S. primary aluminum producer, was forced to temporarily idle its massive Hawesville, Kentucky smelter – North America’s largest producer of military-grade aluminum – citing a “direct result of skyrocketing energy costs.”

Century stated the power cost required to run the facility had “more than tripled the historical average in a very short period,” necessitating a curtailment expected to last nine to twelve months until prices normalized.

The industry has also not had a respite as demand for electricity from non-industrial sources has risen in recent years.

Hydro’s Christophersen pointed to the artificial intelligence boom and the proliferation of data centers as new competitors for power. He suggested that new energy production capacity in the U.S., from nuclear, wind or solar, is being rapidly consumed by the tech sector.

“The tech sector, they have a much higher ability to pay than the aluminium industry,” he said, noting the high double-digit margins of the tech sector compared to the often low single-digit margins at aluminum producers. Hydro reported an 8.3% profit margin in the first quarter of 2025, an increase from the 3.5% it reported for the previous quarter, according to Factset data.

“Our view, and for us to build a smelter [in the U.S.], we would need cheap power. We don’t see the possibility in the current market to get that,” the CFO added. “The lack of competitive power is the reason why we don’t think that would be interesting for us.”

How the massive power draw of generative AI is overtaxing our grid

While failing to ignite domestic primary production, the tariffs are undeniably causing what Christophersen termed a “reshuffling of trade flows.”

When U.S. market access becomes more costly or restricted, metal flows to other destinations.

Christophersen described a brief period when exceptionally high U.S. tariffs on Canadian aluminum — 25% additional tariffs on top of the aluminum-specific tariffs — made exporting to Europe temporarily more attractive for Canadian producers. Consequently, more European metals would have made their way into the U.S. market to make up for the demand gap vacated by Canadian aluminum.

The price impact has even extended to domestic scrap metal prices, which have adjusted upwards in line with the tariff-inflated Midwest premium.

Hydro, also the world’s largest aluminum extruder, utilizes both domestic scrap and imported Canadian primary metal in its U.S. operations. The company makes products such as window frames and facades in the country through extrusion, which is the process of pushing aluminum through a die to create a specific shape.

“We are buying U.S. scrap [aluminium]. A local raw material. But still, the scrap prices now include, indirectly, the tariff cost,” Christophersen explained. “We pay the tariff cost in reality, because the scrap price adjusts to the Midwest premium.”

“We are paying the tariff cost, but we quickly pass it on, so it’s exactly the same [for us],” he added.

RBC Capital Markets analysts confirmed this pass-through mechanism for Hydro’s extrusions business, saying “typically higher LME prices and premiums will be passed onto the customer.”

This pass-through has occurred amid broader market headwinds, particularly downstream among Hydro’s customers.

RBC highlighted the “weak spot remains the extrusion divisions” in Hydro’s recent results and noted a guidance downgrade, reflecting sluggish demand in sectors like building and construction.

— CNBC’s Greg Kennedy contributed reporting.

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One of the world’s largest wind farms just got axed – here’s why

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One of the world’s largest wind farms just got axed – here’s why

Danish energy giant Ørsted has canceled plans for the Hornsea 4 offshore wind farm, dealing a major blow to the UK’s renewable energy ambitions.

Hornsea 4, at a massive 2.4 gigawatts (GW), would have become one of the largest offshore wind farms in the world, generating enough clean electricity to power over 1 million UK homes. But Ørsted announced that it’s abandoning the project “in its current form.”

“The adverse macroeconomic developments, continued supply chain challenges, and increased execution, market, and operational risks have eroded the value creation,” said Rasmus Errboe, group president and CEO of Ørsted.

Reuters reported that Ørsted’s cancellation of Hornsea 4 would result in a projected loss of up to 5.5 billion Danish crowns ($837.85 million) in breakaway fees and asset write-downs. The company’s market value has declined by 80% since its peak in 2021.

The cancellation highlights significant challenges currently facing offshore wind development in Europe, particularly in the UK. The combination of higher material costs, inflation, and global financial instability has made large-scale renewable projects increasingly difficult to finance and complete.

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Ørsted’s decision is a significant setback to the UK’s energy transition goals. The UK currently has around 15 GW of offshore wind, and Hornsea 4’s size would have provided almost 7% of the additional capacity needed for the UK’s 50 GW by 2030 target, according to The Times. Losing this immense project off the Yorkshire coast could hamper the UK’s pace of reducing dependency on fossil fuels, especially amid volatile global energy markets.

The UK government reiterated its commitment to renewable energy, promising to work closely with industry leaders to overcome financial and logistical hurdles. Energy Secretary Ed Miliband told reporters in Norway that the UK is “still committed to working with Orsted to seek to make Hornsea 4 happen by 2030.”

Ørsted says it remains committed to its other UK-based projects, including the Hornsea 3 wind farm, which is expected to generate around 2.9 GW once completed at the end of 2027. Despite the challenges, the company emphasized its ongoing commitment to the British renewable market, pointing to the critical need for policy support and economic stability to ensure future developments.

Yet, the cancellation of Hornsea 4 demonstrates that even flagship renewable projects are vulnerable in the face of economic pressures and global uncertainties, which have been heightened under the Trump administration in the US.

Read more: The world’s single-largest wind farm gets the green light


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Is the Tesla Roadster ever going to be made?

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Is the Tesla Roadster ever going to be made?

The Tesla Roadster appears to be quietly disappearing after years of delay. is it ever going to be made?

I may have jinxed it with Betteridge’s Law of Headlines, which suggests any headline ending in a question mark can be answered with “no.”

The prototype for the next-generation Tesla Roadster was first unveiled in 2017, and it was supposed to come into production in 2020, but it has been delayed every year since then.

It was supposed to get 620 miles (1,000 km) of range and accelerate from 0 to 60 mph in 1.9 seconds.

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It has become a sort of running joke, and there are doubts that it will ever come to market despite Tesla’s promise of dozens of free new Roadsters to Tesla owners who participated in its referral program years ago.

Tesla uses the promise of free Roadsters to help generate billions of dollars worth of sales, which Tesla owners delivered, but the automaker never delivered on its part of the agreement.

Furthermore, many people placed deposits ranging from $50,000 to $250,000 to reserve the vehicle, which was supposed to hit the market 5 years ago.

The official timelines from Tesla are pretty useless at this point since they haven’t stuck to any of them, but the latest official one dates back to July 2024 when CEO Elon Musk said this:

“With respect to Roadster, we’ve completed most of the engineering. And I think there’s still some upgrades we want to make to it, but we expect to be in production with Roadster next year. It will be something special.”

He said that Tesla had completed “most of the engineering”, but he initially said the engineering would be done in 2021 and that was already 3 years after the prototype was unveiled and a year after it was supposed to be in production:

Musk commented on the Roadster again in October 2024, but he didn’t reiterate the 2025 timeline. Instead, he called the new Roadster “the cherry on the icing on the cake.”

Tesla’s leadership has been virtually silent about the new Roadster since. Two Tesla executives even had to be reminded about the Roadster by Jay Leno after they “forgot” about it when listing upcoming new Tesla vehicles with tri-motor powertrain.

There was one small update about the Roadster in Tesla’s financial results last month.

The automaker has a table of all its vehicle production, and the Roadster was updated from “in development” to “design development” in the table:

It’s not clear if that’s progress or Tesla is just rephrasing it. Either way, it is not “construction”, which makes it unlikely that the Roadster is going into production this year.

If ever…

Electrek’s Take

It looks like Tesla owes about 80 Tesla Roadsters for free to Tesla owners who referred purchases, and it owes significant discounts on hundreds of units.

It’s hard for me to believe that Tesla is not delivering the new Roadster because the vehicle program would start about $100 million in the red, but at this point, I have no idea. It very well might be the reason.

However, I think it’s more likely that Tesla is just terrible at bringing multiple vehicle programs to market simultaneously. Case in point: it launched a single new vehicle in the last five years.

At this point, I think it’s more likely that the Roadster will never happen. It will join other Tesla products like the Cybertruck Range Extender.

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