The Zapata Times 9/6/2014

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GULF OF MEXICO OIL SPILL

US ENERGY BOOM

$18B in fines

Shale oil threatens Saudi sales

Federal judge: BP acted in ‘gross negligence’ By MICHAEL KUNZELMAN AND JANET MCCONNAUGHEY ASSOCIATED PRESS

NEW ORLEANS — BP could be looking at close to $18 billion in additional fines over the nation’s worst offshore oil spill after a federal judge ruled Thursday that the company acted with “gross negli-

gence” in the 2010 Gulf of Mexico disaster. U.S. District Judge Carl Barbier concluded that the London-based oil giant showed a “conscious disregard of known risks” during the drilling operation and bears most of the responsibility for the blowout that killed 11 rig workers and spewed millions of

gallons of oil over three months. In the next stage of the case, set to begin in January, the judge will decide precisely how much BP must pay. Under the federal Clean Water Act, a polluter can be forced to pay a maximum of $1,100 in civil fines per barrel of spilled oil, or

up to $4,300 per barrel if the company is found grossly negligent. Barbier’s finding exposes BP to the much higher amount. Even as the oil giant vowed to appeal, BP stock fell $2.82, or nearly 6 percent, to $44.89, reducing

See OIL SPILL PAGE 10A

SAN ANTONIO

REBIRTH OF A CLASSIC

Photo by Kin Man Hui/San Antonio Express-News | AP

This Aug. 21 photo shows the Tobin Center for the Performing Arts in San Antonio. The Tobin Center is a stunning new player on the city’s performing arts scene.

Renovated auditorium ready for performances By STEVE BENNETT SAN ANTONIO EXPRESS-NEWS

SAN ANTONIO — After the Municipal Auditorium was built in the 1920s, it became San Antonio’s civic center, hosting everything from opera performances to boxing matches over its long, historic life. Aside from architect Atlee Ayres’ Spanish colonial revival stone facade, that flexibility is about the only thing left of the venerable old auditorium. “We can have three, four, five events going on in here at the same time — a concert, a play, a banquet, a club meeting,” Tobin Center President and CEO Michael

Fresher pointed out earlier this summer, when tours of the space required a hard hat. “We can even have weddings.” Hard hats no longer are required at the Tobin Center, a stunning new player on the city’s performing arts scene. Architects — led by LMN of Seattle, a leading international firm in performance hall design, with San Antonio’s Marmon Mok Architecture as the local partner — faced three major challenges from Tobin officials. “They wanted a worldclass performance hall as well as a smaller studio theater, and they wanted us to respect the history of Munici-

Photo by Kin Man Hui/San Antonio Express-News | AP

Seen is the interior of the Tobin Center for the Performing Arts inside the H-E-B Performance Hall in San Antonio. pal Auditorium,” said Stephen Souter, Marmon Mok’s managing partner. Well, make that four challenges. Planners also wanted to make the Tobin accessible

— and relevant — to the San Antonio River. “The old building turned its back on the river,” Souter

See AUDITORIUM

PAGE 10A

By DAN MURTAUGH AND LYNN DOAN BLOOMBERG NEWS

After years of keeping the price of crude sold to the U.S. low enough to maintain market share, Saudi Arabia is losing ground as the shale boom leaves U.S. refiners with ample supplies of inexpensive domestic oil. Arab Light crude for sale in the U.S. averaged 48 cents a barrel less than Light Louisiana Sweet, a Gulf Coast benchmark, in August, the narrowest discount in data compiled by Bloomberg back to 1991. The U.S. imported 878,000 barrels of Saudi crude a day in the first four weeks of August, the least since 2009. Shale drilling has boosted U.S. oil output to the highest level since 1986. As refineries turn to lower-priced domestic oil to make fuel at a record pace, the Saudis and other foreign suppliers are left with dwindling slices of the market. In June, imports from Saudi Arabia accounted for the smallest share of crude processed at U.S. refineries since February 2010. “The Saudis are not going to sell crude at a disadvantage to themselves — they’re not about buying market share anymore,” Mike Wittner, Societe Generale’s head of oil market research in New York, said by telephone Aug. 28. “Those days are long gone. They’ll price crude to be competitive with the competing sour grades in every market, and if that means their flows to the U.S. are down, so be it.” Saudi Oil Minister Ali al-Naimi told reporters in Vienna in December that he expected Saudi shipments to the U.S. to stabilize at an average of 1.4 million to 1.5 million barrels a day this year. Saudi Arabian officials didn’t return at least nine calls between Aug. 28 and yesterday seeking comment on the exports. Saudi Arabian Oil Co. shares ownership with

Royal Dutch Shell Plc of three refineries on the U.S. Gulf Coast, including a 600,000-barrel-a-day plant in Port Arthur, Texas, the largest in the U.S. The refineries, which have combined capacity of 1.07 million barrels a day, imported 331,000 barrels a day from Saudi Arabia in June. Until recent months, the kingdom maintained a steady flow to the U.S. around 1.3 million barrels a day even as total U.S. imports fell by 34 percent from a peak in June 2005. Other countries didn’t fare as well. Shipments are 59 percent below their peak from Mexico, 56 percent from Venezuela and 93 percent from Nigeria. Imports are being pushed out by domestic production that’s risen 65 percent in the past five years, spurred by horizontal drilling and hydraulic fracturing in underground layers of shale rock. Growing pipeline deliveries of heavy crude from Canada also displaced waterborne cargoes from abroad. The price of West Texas Intermediate crude averaged $96.08 a barrel in August, compared with $106.54 the same month the year before. It settled at $94.45 in New York today. “The Saudis might fully intend to stay in the U.S. market, they might fully intend to have a million-plus barrels, it’s just the market supply-and-demand levels probably won’t allow that,” said John Auers, executive vice president at energy consulting firm Turner Mason & Co. Saudi Aramco, as the state oil company is known, bases prices for the different destinations on regional indexes, adjusting premiums and discounts to be competitive against oil from other countries. In the U.S., Aramco’s adjustments kept the average price of Arab Light more than $2 a barrel below Light Loui-

See SHALE OIL PAGE 10A

NUEVO LAREDO, MEXICO

N.L’s annual fair runs through Sept. 21 By MELVA LAVÍN-CASTILLO THE ZAPATA TIMES

This year’s Border Fair and Exposition has begun in Nuevo Laredo, Mexico, and will run through through Sept. 21. Expomex, as it’s popularly known, is held at the fairgrounds in the Viveros neighborhood. Some of the attractions this year will include some 250 exhibitors, eagles and snakes from Guadalajara Habitat, fireworks and rides, among others. Opening ceremonies took place Friday night, which will included

the crowning of Karla Elizabeth I and her court, an Expomex tradition, at the Teatro del Pueblo. Expomex 2014 President Fernando Torres Villarreal said there will be activities for the family. “We’ll have activities in the arena, rodeos, horse racing and wrestling,” Torres Villarreal said. “These are in addition to the artists at the Teatro del Pueblo.” The lineup of performing artists include: today, Trio Los Panchos; Saturday, Mike Laure Jr.; Sunday, Jot Dog; Monday, Nuevo Laredo tenor Leonardo Gonzalez Garnica; Tuesday, Los Terricolas;

Wednesday, Homenaje of Nuevo Laredo; Thursday, comedian Teo Gonzalez; Friday, Sept. 12, Sonora Dinamita; Saturday, Sept. 13, Playa Limbo; Sunday, Sept. 14, Sonora Santanera; Monday, Sept. 15, Yohan and Ziri; Tuesday, Sept. 16, La Tropa Loca; Wednesday; Sept. 17, Grupo La Firma; Thursday, Sept.

18, Ema Huevo; Friday, Sept. 19, Mario Bezarez Show; Saturday, Sept. 20, Nene Malo; and Sunday, Sept. 21, Perez Prado Orchestra. In the Palenque, cockfights are scheduled Saturday, Sept. 13 and Sept. 20. On Sept. 13, singer Julion Alvarez is scheduled for the Palenque, and charreadas are scheduled Saturday, Sept. 13 and Sept. 20 at the Lienzo Charro arena. On Monday, professional wrestling is scheduled for the Casino at Expomex, beginning at 6 p.m. Entry to Expomex is 30 pesos (about $2.30) for adults. Entry is free for children younger than 10,

senior citizens and disabled children. In addition, the federal, state and local governments are in charge of a special security operation around the fair. “We will establish safe routes for people who are coming to the fair from different parts of the city, and Laredo (Texas) also has access to a safe route,” Mayor of Nuevo Laredo Carlos Villarreal Canturosas said. (Contact Melva Lavín-Castillo at (956) 728-2569 or mecastillo@lmtonline.com. Translated by Mark Webber of the Times staff.)


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