QUOTE OF THE DAY “We remain confident that PIN numbers are safe and secure.” Molly Snyder, Target Corp. spokesman Article, 1D Key well in Tuscaloosa shale is clogged
NEW ORLEANS - One of the largest leaseholders in the Tuscaloosa marine shale oil field that spans central Louisiana and southwest Mississippi said it has run into problems with a key well in the area.
Houston-based Goodrich Petroleum Corp. said in a statement that test results for a well in Amite County, Miss., near the Louisiana border will be delayed until early 2014 as the company works to unclog it.
The Times-Picayune reported the well, called Huff 18-7H-1, was near completion and had started to produce oil and gas when it became clogged with debris.
The news is a letdown for investors who hoped to see results of Goodrich’s activity before year’s end.
Goodrich is one of several companies trying to use new horizontal drilling and hydraulic fracturing techniques to tap into oil and gas trapped in the hard layer of rock that makes up the Tuscaloosa marine shale.
Experts estimate the deposit holds 2.7 billion barrels of oil, but companies have struggled to find the right formula to drill profitable wells.
Audi to invest heavily in premium lines
FRANKFURT, Germany - Volkswagen’s Audi division, the world’s second-biggest maker of luxury cars, plans to spend $30.3 billion through 2018, pushing models such as electric autos to gain the top spot in the premium segment.
About 70 percent of the total will be invested to develop new models and technology, the Ingolstadt, Germany-based carmaker said Friday in a statement. Audi targets selling 2 million cars and sport-utility vehicles annually after achieving a goal of delivering 1.5 million autos in 2013, two years ahead of its original plan.
“We are now decisively steering toward our next milestone,” Chief Executive Officer Rupert Stadler said in the statement.
“This is why we’re keeping our foot on the gas pedal regarding investments.”
BMW is seeking to fend off challenges by Audi and Mercedes-Benz with its own expansion. The Munich-based carmaker is introducing 25 models in 2013 and 2014, including 10 vehicles, such as the Rolls-Royce Wraith, that have no predecessor. BMW said in November that its spending will exceed targets this year and continue at a high rate in 2014.
French bulk-wine prices rise, lift whites
French bulk-wine prices rose last week, rebounding from a drop and driving white wines to the highest level in more than three years after two below-average harvests reduced supply.
Bulk white wine without a geographic indication rose to $111.80 for 26.4 gallons from $56.54 a week ago, data released by crop office France AgriMer showed. That’s the highest since February 2010, spokesman Virginie Nicolet said Friday. Prices were at $49.16 at the start of August.
France produced 1.12 billion gallons of wine this year, up 2.4 percent from 2012 and 6.8 percent below the five-year average, the Agriculture Ministry estimated. Rot caused “major” harvest losses of white-wine grapes in Burgundy and Beaujolais, while rain in Charentes resulted in rot on the white ugni blanc grape that’s usually not susceptible to gray mold, the ministry reported last month.
“There’s not that much wine, so prices are rising,” Philippe Janvier, in charge of wine statistics at the crop office, said by phone Friday. “The seasonal correction at the start of the season has been limited.” - Bloomberg News
U.K. shoppers brave storms for bargains
U.K. shoppers are braving storms and floods to spend record amounts in post-Christmas clearance events, providing some relief to retailers after a difficult lead-up to the holiday.
Most clothing retailers are offering discounts of at least 50 percent to shift surplus stock after Britons left their Christmas shopping late with the aim of getting a bargain. Some, including Marks & Spencer Group PLC, began cutting prices before Christmas in order to get shoppers into the stores.
Thursday’s increase in customer numbers was driven by “significant discounting many retailers applied to many already discounted lines,” Experian said in a statement.
Britons spent an estimated $3.8 billion on discounted clothes, electronics and accessories in stores Friday, making it a record day, said Joshua Bamfield, director at the Centre of Retail Research in Nottingham. An additional $659 million will be spent online, he said.
Bargain hunters started lining up before dawn Thursday outside department stores on London’s Oxford Street. As many as 3,500 people were waiting for Selfridges to open, according to Sky News. Consumers are feeling more secure in the outlook for the economy and employment and are being drawn in by deeper discounts than in previous years, according to Denison.
- Bloomberg News
GM to recall 1.5 million cars in China
BEIJING - General Motors Co. and its main Chinese partner will recall almost 1.5 million cars to replace a bracket that secures a fuel pump, China’s product quality agency said Friday.
The agency said the recall affects 1.2 million Buick Excelles made from 2006 through part of 2012, and 250,000 Chevrolet Sails produced between April 2009 and October 2011 and some made last year.
The bracket to be replaced might crack and in extreme cases cause a fuel leak, the Administration for Quality Supervision, Inspection and Quarantine said in a statement.
The recall is GM’s second this year in China. In May, the government announced a recall of 2,653 imported Cadillac SRX sport utility vehicles to adjust nuts on wheels that it said might loosen because of torque.
- The Associated Press
Cambodian workers block roads over pay
PHNOM PENH, Cambodia - Striking workers making shoes and clothes in Cambodia for Western brands blocked roads and briefly scuffled with police Friday.
The workers are demanding a two-fold increase in the minimum wage to $160 per month.
The protesters snarled traffic in and around the capital, Phnom Penh, and blocked the entrance to the Labor Ministry.
Human-rights activist Om Sam Ath said protesters blocking a highway leading to Sihanoukville threw stones at police, who fired into the air.
He said four workers were injured, but it was unclear how serious the injuries were.
Most of the country’s 500 factories have been closed since Thursday, when the manufacturers association urged its members to cease operations, citing the fear of violence.
The garment industry employs more than 500,000 people and is Cambodia’s biggest export earner.
Companies like the country because of its low wages, but there are frequent strikes over pay and conditions.
- The Associated Press
Business, Pages 32 on 12/28/2013