GOP moves closer to opening Arctic refuge to drilling - Axios
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GOP moves closer to opening Arctic refuge to drilling

Caribou graze on the coastal plain of the Arctic National Wildlife Refuge, with the Brooks Range as a backdrop. Photo: USFWS via Flickr

Today's narrow House approval of the Senate's fiscal year 2018 budget plan paves the way for subsequent legislation to allow oil drilling in Alaska's Arctic National Wildlife Refuge (ANWR) that's immune from Senate filibuster.

Why it matters: Republicans who have unified control of Washington are closer to allowing oil exploration on the coastal plain of the refuge — possibly holding very large oil reservoirs — than at any time since ANWR bills almost made it to George W. Bush's desk in the 2005-2006 Congress.

What's next: The budget measure contains a $1 billion "reconciliation" instruction to the Senate Energy and Natural Resources Committee. Alaska GOP Sen. Lisa Murkowski, who chairs the panel, is expected to meet the requirement with revenues that would come from opening the refuge to oil-and-gas leasing.

  • Here's what's key: Under the rules of the budget process, legislation to meet reconciliation instructions cannot be filibustered, which is important because there are not 60 votes for ANWR drilling in the closely divided Senate.

Yes, but: There's no guarantee that there will actually be oil production in the remote, environmentally sensitive region that green groups have spent decades fighting to keep off-limits to development. Here are some of the wild cards and known unknowns:

  • The clock: Congress moves slowly. So does the federal energy leasing and development process, although the Trump administration has vowed to speed things up. Arctic exploration is complex, and environmentalists would legally challenge lease sales and development approvals. A Democratic White House win in 2020 could bring efforts to thwart fledgling development.
  • The markets: There would very likely be some industry interest in ANWR drilling. But the extent of companies' appetite for controversial Arctic projects is not really clear. A lot has happened in the oil business over the last decade, notably the shale boom that has brought a wealth of opportunities in the lower 48 states that are cost-effective even at modest oil prices.
  • The politics: ANWR drilling has support from the vast majority of Republicans — only Sen. Susan Collins joined Democrats in a recent vote to scuttle drilling legislation, while conservative Democratic Sen. Joe Manchin voted with the GOP. So the odds look good in Congress if the budget passes. But we're in an unpredictable era where the president is openly feuding with some GOP senators, so probably best not to assume anything about ANWR bills.
Be smart: Veteran energy analyst Amy Myers Jaffe of UC-Davis provided Axios a few thoughts in an email exchange. She notes that the CEOs of the major integrated oil companies have recently signaled that they're not jazzed about investing in Arctic resources, either onshore or offshore.
  • "I would also assert that the major U.S. independents are focused on shale and are being pressed by Wall Street to concentrate on staying within cash flow," says Jaffe, adding that this emphasis on capital discipline would work against spending lots of money in Alaska.
  • However, she predicts there would be interest among private equity-backed firms that are already active elsewhere in Alaska.
Expert Voices Featured

Basting with the best: Thanksgiving tips from 5 top chefs

Illustration: Lazaro Gamio / Axios

It's our first Thanksgiving here at Axios, a fine occasion in its own right to raise a glass and polish off a few plates of food. The big meal seemed like a good time to invite helping hands into the kitchen, so we asked a group of chefs and food writers for their favorite holiday tips.

The culinary experts:

  • Alison Roman, food writer and recipe developer: A host's guide to staying sane
  • Molly Lopez, baker: Thanksgiving with a global twist
  • David Lebovitz, cook and pastry chef: A secret sauce in seconds
  • Bill Yosses, former White House pastry chef: A prep essential for every dish
  • Aaron Silverman, chef and restaurateur: How the French do mashed potatoes
Featured

Sessions orders review of firearm background check database

U.S. Attorney General Jeff Sessions. Photo: Carolyn Kaster / AP

Attorney General Jeff Sessions has ordered the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to review the U.S. database used for background checks on firearm buyers, according to Reuters.

Why it matters: Sessions used the Sutherland Springs shooting as evidence of a need to review the National Instant Criminal Background Check System (NICS), as the shooter was able to buy a gun despite having been convicted of domestic assault. The Air Force said it failed to enter his information into the federal database.

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Lyft is raising another $500 million

Josh Edelson / AP

Ride-hail company Lyft is raising up to $500 million in additional funding, according to a share authorization document filed yesterday in Delaware. This comes one month after Lyft announced a $1 billion infusion led by CapitalG, an investment arm of Google parent Alphabet. A company spokesman stresses that the $500 million is not yet closed, but adds: "Increasing the potential for this round will allow us to further accelerate our commitment to serving passengers and drivers."

Details: The new investment would be an extension of the CapitalG-led round, at the same share price of $39.75. That means the $10 billion pre-money valuation remains static, but the post-money could now value Lyft at $11.5 billion.

Below is the Delaware document, which was provided to Axios by Lagniappe Labs (creator of the Prime Unicorn Index)


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Two more women say Franken groped them

Sen. Al Franken. Photo: Dennis Van Tine/STAR MAX/IPx

Two women told the Huffington Post that Sen. Al Franken "touched their butts" in unrelated incidents. Four women have now accused Franken of unwanted contact.

Why it matters: Senate leadership have called for an Ethics Committee investigation into the Minnesota senator, which Franken himself has said he will cooperate with.

  • One woman said Franken groped her during a photo at an event hosted by the Minnesota Women's Political Caucus in 2007: "People are saying that this is a right-wing conspiracy...It's not. I'm a liberal person...I voted for him after this happened."
  • The second woman said Franken "cupped her butt" in 2008 at a Democratic fundraiser: "My immediate reaction was disgust...but my secondary reaction was disappointment. I was excited to be there and to meet him. And so to have this happen really deflated me."
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ICE is seeking a program to monitor the social media of visa-holders

ICE agents at a home in Atlanta, during a targeted enforcement operation. Photo: ICE via AP

Immigration and Customs Enforcement officials said at a tech industry conference last week they are seeking algorithms that can "conduct ongoing social media surveillance" of visa holders that are considered high risk, according to ProPublica.

Why it matters: The announcement of the program, later named "Visa Lifecycle Vetting," spurred backlash from civil liberty groups and immigrants. ProPublica notes that, taken in conjunction with Trump's calls for "extreme vetting" and his campaign proposal for a Muslim ban, there is concern it could be discriminatory toward Muslim visa holders. Acting deputy association director for information management at ICE Homeland Security Investigations, Alysa Erichs, said the goal is to have "automated notifications about any visa holders' social media activity that could 'ping us as a potential alert.'"

  • But, but, but: According to Alvaro Bedoya, the executive director of Georgetown Law's Center on Privacy and Technology, ICE is "building a dangerously broad tool that could be used to justify excluding, or deporting, almost anyone."
  • A group of engineers, computer scientists, and other academics wrote to acting DHS Secretary Elaine Duke of their "grave concerns" about the program, saying it would likely be "inaccurate and biased."
  • Carissa Cutrell, an ICE spokeswoman, told ProPublica the "request for information...was simply that - an opportunity to gather information...to determine the best way forward."
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Peter Thiel might try to buy Gawker.com

Kevin Moloney / Fortune Brainstorm Tech

Peter Thiel, the Silicon Valley billionaire investor who funded ex-wrestler Hulk Hogan's lawsuit against Gawker, is seeking to pause the sales process of the now-defunct website, arguing that he was unfairly excluded from making a bid, according to a bankruptcy court filing obtained by BuzzFeed.

Why it matters: The buyer of Gawker.com (the rest of Gawker Media's properties were acquired by Univision last year) will be able to do with its contents as they please, including deleting specific articles. There are still ongoing legal actions over a few articles in the archive. Though Thiel never admitted as much, it was long rumored that his decision to help Hogan was fueled by unflattering coverage of him and his business activities over the years, including a 2007 story about the fact that he is gay.

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The blowback from Uber's data breach

A man exits the Uber offices in Austin, Texas. Photo: Eric Gay / AP

Illinois, Massachusetts, New York, and Connecticut are planning investigations into Uber's recently announced 2016 breach that left 57 million customers' and drivers' data vulnerable to criminals, and the FTC might launch a probe as well, according to Recode.

Why it matters: Most states (48) have some form of a law requiring companies to reveal data breaches to consumers, but Uber did not immediately disclose the details to consumers and reportedly tried to cover up the hack.

The FTC may also launch a probe into Uber, Recode reports, citing two sources who say Uber has already briefed the agency. The FTC said it was looking into the matter.

  • The FTC just penalized Uber in August for other privacy and security practices and had asked Uber to maintain all records related to privacy and security for investigators. This apparent cover-up could throw a wrench in those conclusions issued in August.
  • Sen. Richard Blumenthal urged the FTC to take "swift enforcement action and impose significant penalties" on Uber, and Rep. Frank Pallone is calling for a Congressional hearing on the matter.

Global blowback: Authorities in Australia and the Philippines said they would also be investigating, and the UK's data protection regulator brought up potential penalties for Uber, per Reuters.

Bottom line: The news is not good for Uber on a global scale. It could face penalties and fines in addition to paying the steep legal price associated with suits after a year filled with other headaches related to security, privacy, and its culture.

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Men behaving badly

The bombshell report from The New York Times last month on decades of sexual harassment and assault by producer Harvey Weinstein started a domino effect as other women spoke out about mistreatment by men in positions of power.

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Trump Org. walking away from SoHo hotel

The Trump Soho hotel. Photo: Seth Wenig / AP

The Trump Organization has made a deal allowing it to walk away from the Trump SoHo hotel by the end of the month, according to the New York Times.

Why it matters: Per the Times, the hotel has "struggled to attract guests" and had to close its main restaurant in April due to what the restaurant's lawyer called a "decline in business since the election." The Trump Org. faced several lawsuits over building the hotel, per the Times, one of which alleged it "was backed by felons and financing from Russia." Russian-born businessman Felix Sater, who has been in the news following the election for having pushed for a Trump Tower in Moscow, was involved in the deal.

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Video released of North Korean defector crossing DMZ

Photo: United Nations Command via AP.

A video just released by the United Nations shows the North Korean soldier who defected to the South on November 13th making his getaway in a green jeep, running towards the border separating Panmunjom, North Korea from the South, and then collapsing on the South Korean side.

Why it matters: The event amounts to a violation of the armistice, since he was shot five times in his successful effort to defect from the North Korean regime, South Korea says. He was ultimately rescued by South Korean soldiers. Pyongyang has yet to say anything about the defection but the UN Command says it has requested a meeting to discuss the apparent armistice violations.

The scene, per the AP's Foster Klug: "It's 3:11 p.m. on a cold, gray day on the North Korean side of the most heavily armed border in the world, and a lone soldier is racing toward freedom."

  • "His dark olive-green jeep speeds down a straight, tree-lined road, past drab, barren fields and, headlights shining, across the replacement for the Bridge of No Return..."
  • "The shock of soldiers watching the jeep rush by is palpable from the video released Wednesday and no wonder: They're beginning to realize that one of their comrades is defecting to the South."
  • The defector crashes his jeep into a ditch.
  • The South says North Koreans fired about 40 rounds from AK-47s and rifles at the defector. No fire was exchanged between North and South Koreans.
  • The defector makes it over the border, and then turns around and runs back towards the North before collapsing by the wall. South Koreans crawl to pull him to safety.
  • "The entire sequence, from the first appearance of the jeep to the soldier's frenzied crossing, lasts four minutes."

A clue to life in North Korea: The defector had two surgeries to repair internal organ damage and is conscious. Surgeons "removed dozens of parasites from the soldier's ruptured small intestine, including presumed roundworms that were as long as 27 centimeters (10.6 inches), which may reflect poor nutrition and health in North Korea's military."

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