New Mexico gas prices drop amid falling crude oil costs, economic uncertainty
AAA New Mexico Weekend Gas Watch reported Thursday the statewide average price for a gallon of unleaded fuel was $2.99. In Albuquerque, the state's largest city, gas is averaging $3.01, a decrease from $3.11 a week ago.
Santa Fe-area residents are paying the cheapest amount for gas, as a gallon of fuel is averaging $2.90, according to AAA, a 17-cent drop from the week prior. Farmington residents are paying the most; a gallon of gas in that area of the state is averaging $3.07. Las Crucens are paying $2.93.
AAA spokesperson Daniel Armbruster noted in a news release that the price of fuel is dropping during a time of year when it typically goes up. He said "supply and demand" is the main reason for the dip, adding that OPEC+ announced it's increasing oil production in May by more than 400,000 barrels a day.
"Crude oil prices have dipped below $60 per barrel for the first time since February 2021, putting downward pressure on retail gas prices," Armbruster said in a statement. "Because crude oil accounts for about half the cost of a gallon of gasoline, this decline is a key factor driving lower prices at the pump."
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Yahoo
3 hours ago
- Yahoo
Algeria Close to Signing Shale Gas Deals with Exxon and Chevron
Algeria nears the finalization of agreements with U.S. supermajors Exxon and Chevron to explore and invest in its shale gas resources as the North African country bets big on boosting its gas pipeline and LNG exports, the head of the Algerian energy regulator told Bloomberg. 'The technical aspects have more or less been agreed upon, but the commercial alignment is still under negotiation and will soon be finalized,' Samir Bekhti, chairman of energy regulator Alnaft, told the newswire in an interview published on Friday. Algeria would send 'a strong signal' for its resource potential by attracting the U.S. supermajors, the official said. Tapping shale gas would be a first for Algeria, the North African OPEC producer which is looking to raise its production and exports as it looks to remain a key provider of gas to Europe. Algeria holds huge conventional natural gas reserves, and it is also estimated to have the third–largest shale gas reserves in the world after China and Argentina. Chevron commented on a potential deal with a statement to Bloomberg, saying that 'we are excited by the prospective synergies and relationship we could create in Algeria,' considering the company's experience and capabilities. Most of Algeria's gas exports are heading to Europe, which is increasingly betting on Africa to import large volumes of pipeline gas and LNG to replace pipeline gas supply from Russia, which was Europe's top gas supplier before the Russian invasion of Ukraine. Italy's energy major, Eni, has been particularly active in securing more natural gas supply for Europe from Africa and has fast-tracked projects in Africa to meet Europe's gas demand in the absence of Russian pipeline deliveries. Moreover, the UK's Grain LNG, Europe's largest liquefied natural gas terminal, signed last year a ten-year agreement that will extend the long-term storage and redelivery capacity of Algerian energy firm Sonatrach at the Grain LNG terminal from January 2029. By Tsvetana Paraskova for More Top Reads From this article on Sign in to access your portfolio
CNBC
17 hours ago
- CNBC
Power cuts and blackouts: Why can't Iraq keep the lights on?
Iraq was plunged into a nationwide blackout earlier this week, as a temperature surge to 122 degrees Fahrenheit (50° Celcius) — and subsequent spiking demand for electricity — pushed the country's faltering power grid to the breaking point. For a country that has seen as much conflict and instability as Iraq, this could come as unsurprising – except for the fact that the nation is OPEC's second-largest oil producer and has the world's fifth-largest proven oil reserves. Scores of international energy companies have facilities in the Middle Eastern country, and billions of dollars have been invested in its power sector. Blackouts have nevertheless become a common occurrence in the country's scorching summers, and shorter power cuts take place almost daily, with many Iraqis depending on private generators for reliable power — while those without that access are left to suffer. So why is such an oil-rich country unable to keep the lights on? Iraq's power crisis has been years in the making. The Iraqi government has struggled to provide its citizens with reliable energy since the 2003 U.S.-led invasion of Iraq, after which the fall of Saddam Hussein's regime and the ensuing turmoil left the national grid unable to cope with demand due to chronic under-investment, mismanagement and corruption — like the embezzlement of public funds intended for electricity projects. This spilled into civil unrest in the summer of 2021, when hundreds of Iraqis took to the streets amid power and water outages gripped large parts of the country, And just in July, power cuts sparked fresh protests across the country against a backdrop of extreme heat. Iran reliance and gas flaring Iraq relies heavily on neighboring Iran for gas and power: in 2023, 47% of the gas Iraq consumed came from Iran and produced an estimated 29% of Iraqi power generation. But the Iranian gas supply is also unreliable — in part because Iran often has trouble keeping its own lights on, due to sanctions and mismanagement, and because Tehran at times withholds its exports to Iraq for political reasons. "Iraq has been suffering from inadequate electricity for decades. It's a supply and demand problem as a growing and richer population demands electricity the state cannot supply," James Jeffrey, a distinguished fellow at the Washington Institute who previously served as the U.S. ambassador to Iraq, told CNBC. The country of 46 million in fact has huge quantities of gas – but "Iraq never developed its natural gas sector. Quantities are huge but just flared off," Jeffrey said. He was referencing gas flaring, during which gas is burned off and lost during oil production, leading to huge financial and resource losses as well as significant damage to the environment. "The reasons for this failure range from bureaucratic problems, incapacity to do strategic planning, and pressure from Iran through proxy political parties," Jeffrey said. "Iran wants to keep selling billions in gas and electricity to Baghdad and also wants Iraq dependent on Tehran." Sanctions pressure In March, the Trump administration – as part of its maximum-pressure sanctions strategy against Iran – rescinded the waiver that Washington has historically granted Iraq to continue buying Iranian electricity without breaching U.S. sanctions. The move means Iraq can no longer import Iranian electricity – which comprises about 3% or Iraq's power supply, according to Platts reporting – but Baghdad can still import Iranian gas, which provides the much larger part of its power. The U.S. has long urged Iraq to diversify its energy sources to reduce its reliance on Iran. Sanctioning Baghdad's purchases of Iranian gas would deal a hammer blow to the country's ability to generate electricity, and likely trigger an economic crisis and political instability. But the specter of it – and continued U.S. pressure – is a good thing for Iraq, many analysts say, as it's pushed Iraq to invest more in its power generation capacity and enact reforms in the sector. "Iraq will gain energy independence, bolstering the authority of its central government — which Iran has exploited with its cheap energy for too long," Behnam Ben Taleblu, a senior fellow at the Foundation for Defense of Democracies in Washington D.C., wrote in a report published in March. "The hard part now is ensuring that Tehran cannot continue exploiting Baghdad's political environment and that the government finds reliable energy alternatives." Power projects underway A number of major projects are underway to improve Iraq's energy independence. TotalEnergies' $27 billion Gas Growth Integrated Project, signed in 2023, aims to capture some of Iraq's flared gas for use in power plants and build a 1-1.25 gigawatt solar park for the southern city of Basra. Siemens Energy this year announced a framework to develop up to 14 gigawatts of gas-fired power capacity using domestic gas, including captured flare gas. For reference, the current capacity of Iraq's national grid is less than 28 gigawatts, compared to a peak demand of 48 gigawatts, according to Jessica Obeid, head of Energy Transitions at SRMG Think. There is also more focus on renewable energy and cross-border interconnection, with a link to Jordan's power grid underway and another to Kuwait still in the works. Still, the transition is difficult and will both take time and likely face continued obstacles due to corruption, pressure from Iran-backed members of Iraq's government, and political unpredictability. Iraqi energy independence is "over time very realistic," Jeffrey said. "The U.S. [sanctions] move was smart but we need to give Iraq some time, as major infrastructure needed doesn't spring up overnight."
Chicago Tribune
18 hours ago
- Chicago Tribune
Jack in the Box returns to Chicago after 40 years with long lines, but no clown drive-thru
For fast-food fans of a certain age, a familiar name has begun popping up again in the Chicago suburbs this summer. Jack in the Box, which exited the Chicago market four decades ago, returned last month to open the first of eight company-owned restaurants, a converted Arby's in southwest suburban Plainfield that continues to draw long lines of diners on a gastronomical trip down memory lane. Nostalgic visitors will find that Jack in the Box's signature tacos are still on the menu, but its once ubiquitous clown mascot is mostly missing, relegated to the pantheon of bygone fast-food icons along with Burger Chef. That apparently hasn't dampened enthusiasm for the brand's Chicago-area revival. Since launching July 14 in Plainfield, the San Diego-based chain has opened restaurants in Countryside and Naperville to similarly large crowds, with Lake in the Hills welcoming customers beginning Monday. Jack in the Box is also planning to add locations in Tinley Park, New Lenox, Carol Stream and near Midway Airport in Chicago. 'We'll have all eight open before the last day of September,' said Van Ingram, vice president of franchise development for Jack in the Box. If all goes well, Jack in the Box could go from zero to 30-plus Chicago-area locations in short order, with plans for extensive franchising in the pipeline, Ingram said. The publicly traded restaurant chain, which has struggled recently with declining same-store sales and a falling stock price, may need more than nostalgia to win market share in the hometown of fast-food giant McDonald's, but early returns at the first three locations have been promising. 'Obviously, when a new restaurant opens, there's always pent-up demand,' Ingram said. 'People like to try the new place out, and so we experienced that clearly. But then the good thing is, we've sustained those sales beyond that initial honeymoon period.' Launched in 1951, Jack in the Box has nearly 2,200 restaurants in 22 states, of which only 142 are corporate owned. The restaurants are most plentiful in California with about 950 locations, followed by Texas and other states west of the Mississippi River. Returning to Chicago is part of an ambitious eastward expansion of the West Coast staple, which is looking to catalyze growth in the competitive fast-food arena on the eve of its 75th anniversary. The eight inaugural Chicago-area Jack in the Boxes are all corporate owned and occupy former Arby's restaurants acquired in one fell swoop from a large franchise operator to get the brand reestablished quickly in the market, Ingram said. Jack in the Box has invested more than $10 million to relaunch in Chicago, with the eight restaurants costing between $1 million and $2.5 million each to convert from an Arby's, he said. But with 94% of its stores nationwide operated by franchisees, that model will be key to long-term growth in the Chicago market, Ingram said. Jack in the Box has signed three franchisees committed to developing 25 more locations in the Chicago area over the next two to six years, Ingram said. That should enable the chain to reach enough critical mass for coordinated advertising to compete with more established fast-food restaurants for market share. Down the road, Jack in the Box is targeting another 80 to 90 potential franchise locations in the Chicago area to develop as the market matures, Ingram said. When Jack in the Box pulled up stakes and left the Chicago market more than 40 years ago, the quirky California-based fast-food chain was perhaps best known for its talking clown head taking orders at the drive-thru. Its return this summer may spark some nostalgic memories, but Jack in the Box long ago dispensed with the clown image, focusing instead on a diverse menu beyond the burgers that includes all-day breakfast, tacos and even egg rolls, among other items. Jack in the Box restaurants are also open later than many fast-food competitors to sate those after-hours cravings. Darren Tristano, CEO of FoodserviceResults, a Chicago-based research and consulting firm, said nostalgic older customers and curious newbies should give Jack in the Box an initial boost, but it remains a tall order to become a major fast-food player in Chicago. 'Many consumers are drawn to the shiny new operator but price, quality and service will be important to building return patronage and longer-term success,' Tristano said. 'It will be hard for Jack in the Box to build in a market McDonald's calls home and compete with Burger King and Wendy's.' Even nostalgia may have its pitfalls. For some older customers, the warm and fuzzy memories may be tainted by a 1993 food poisoning outbreak — a decade after Jack in the Box left Chicago — where hundreds of its customers on the West Coast were sickened and four children died from E. coli contamination traced to undercooked hamburger meat. Jack in the Box subsequently raised the hamburger cooking temperature to 155 degrees, which also became the new FDA standard for fast-food restaurants. Tristano said the 30-year-old incident and Jack in the Box's previous failure to conquer the Chicago market during its first go-round will likely be forgotten by most consumers in the 2025 reboot. 'Jack in the Box's return to the Illinois market is evidence that consumers have short memories and because of this, they will likely get a reset,' Tristano said. For Jack in the Box, there may be a lot riding on a successful reentry into Chicago. Jack in the Box ranked 23rd among U.S. fast-food restaurants for 2024 with just under $4.4 billion in total sales, a slight decline that dropped it one position in the annual Technomic Top 500 Chain Restaurant Report. Sales are projected to decline 3.5% this year, according to Technomic, a Chicago-based research firm. Same store sales were down 7.1% in the third quarter, according to the Jack in the Box earnings report filed last week. Meanwhile, the company's stock price is down nearly 60% in 2025. Lance Tucker, who was elevated from CFO to CEO in March, blamed the dismal third quarter sales on demographics during an earnings call. 'Jack in the Box significantly over-indexes with Hispanic guests, who, especially in our core markets, face uncertainty and have pulled back their spending,' Tucker said. 'This issue is having an outsized impact on our sales.' At the same time, Tucker expressed optimism about the 'very strong opening' with the first three stores in Chicago. 'We're excited about the early returns on Chicago,' Tucker said. Amplifying the buzz, Steve Dahl, former Chicago radio personality and current podcaster, went on a multiday social media-documented quest to battle the lines and procure a Jack in the Box taco, which has a cult-like following among some fast-foodies. A recent visit to the Plainfield store offered a glimpse into the enthusiastic response Jack in the Box has generated among new and old fans. A weekday lunchtime crowd descended on the restaurant by 11 a.m., forming a slow-moving drive-thru line stretching into the neighboring parking lot. Meanwhile, those who could find a parking space were queued up at the restaurant's entrance by a security guard, who carefully let customers filter inside to keep capacity within village codes. At one point, tempers flared in the drive-thru lane as a driver in a pickup truck gave up and somehow managed to pull off a U-turn, precipitating a hangry window-down exchange of epithets with the car behind him. None of that deterred Bill Fouts, 72, a retired manufacturer's supervisor from Minooka, who stopped into the Plainfield Jack in the Box looking to buy a gift card for his son-in-law and to check out the restaurant chain where he had worked as a teenager in Harvey. He returned to his car in the busy parking lot empty-handed, smiling nonetheless. It was his fourth attempt and his first success at getting inside, but Fouts said the Jack in the Box didn't have any gift cards. He plans to return soon with his wife to share the Jack in the Box tacos he loved growing up. 'I want to enjoy this with my wife,' Fouts said. 'We both enjoyed them, and actually, that's when we started going together. We've been married 53 years, and when I was 16 and working at the Jack in the Box, that's where we kind of met.' Susan Maluck, 66, of Florida, who grew up in Evergreen Park and regularly hung out at a local Jack in the Box on 95th Street while in high school, was in town visiting her brother, Tony Brazzale, 61, who now lives in Plainfield. They decided to take a trip down memory lane via Route 59 to try the fast food of their youth. After successfully navigating the gridlocked parking lot, the siblings were stopped for a brief crowd control wait in the entrance before making their way to the ordering lines. Maluck was there to try the 'cheap tacos' she scarfed down regularly as a teenager. 'I want to see if they're as greasy as they used to be,' she said. The tacos were a 'good greasy,' added her brother, who nonetheless planned to order a hamburger.
