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President Donald Trump named Bill Pulte acting director of national intelligence today.
 
Pulte is a real estate scion and MAGA fundraiser turned mortgage regulator. Marketplace fans might remember him as the guy who pitched Trump on a 50-year mortgage — we detailed the reasons why that’s a bad idea. Pulte has also used the home finance data at his disposal to go after Trump’s perceived enemies. What qualifies him to oversee the nation’s intelligence apparatus? Your guess is as good as ours.

Also in today’s newsletter: Job openings are up, but hiring and incomes are down. We’ll tell you what all that means for you, give you the latest on gas prices, and answer a listener question about motor oil.

And speaking of oil, my colleague Caleigh Wells climbed through vines looking for one of West Virginia’s few hundred thousand abandoned oil wells. The state needs to plug them to keep people and land safe, but funds are short.  —Tony Wagner and Carrie Barber newsletter editors
A rusty pipe with fittings sticks up from the ground amid a tangle of green vines.
This orphaned oil well from 1939 is one of thousands recorded in West Virginia. (Caleigh Wells/Marketplace)
Abandoned oil wells are polluting West Virginia. Plugging them won't be easy.
Each well costs up to $125,000 to plug, but no one knows how many there are.
On a suburban side road about 15 minutes from the center of Charleston, West Virginia, there’s a quiet hissing sound, almost completely masked by traffic noise coming from Interstate 64.

The orphaned oil well is hard to find. But David McMahon has heard old oil wells make this sound before.

“It's the sound of the gas escaping,” he said.

McMahon, a lawyer and co-founder of the West Virginia Surface Owners’ Rights Organization, waded through a mess of wild grape vines and Virginia creeper, wishing he’d brought a machete to cut through it. With him was Ted Boettner, a senior researcher at the Ohio River Valley Institute.

 As they got closer, the odor hit.

“I smelled it just now. Smells like sulfur, rotten eggs,” Boettner said. He’d just written a report on orphaned oil wells.

They pulled back vines to reveal an old, unassuming, 4-foot-tall metal structure. It looked like a scuba tank, topped with some metal connector pieces. It was an oil well from 1939. It likely stopped being useful decades ago, but was never plugged.

 It’s “orphaned” because the company in charge of it is long gone. Now it’s the state’s problem.

By law, operators are required to plug old wells, but enforcement was lax for decades. Today, the state has one inspector for every 6,700 wells.

The Ohio River Valley Institute just put out a report that estimates there are a couple hundred thousand old oil wells in the state that need plugging. And most of them haven’t even been recorded.

When wells like this one sit unplugged, hissing and smelling, they cause a whole host of problems.

“Methane leaks out of them into the atmosphere, but also oil and water can leak out of them onto a farmer's land,” McMahon said.

Methane is a potent planet-warming gas, and a major player in climate change. Leaks on farm land poison soil and water, harming crops and livestock.

They can also penetrate coal seams, creating a danger; if a coal miner runs into an oil well, it can explode or leak and poison miners.

“The methane can go down into people's groundwater. I've seen people light their faucet in their sinks,” McMahon said.
READ MORE


 
News you should know
Let’s do the numbers
  • AI stocks surged, nudging major indexes to all-time highs today. The S&P 500 closed up 0.1%, the Dow rose 0.4%, and the Nasdaq added less than 0.1%.

  • Another earnings season has come and gone, and companies did quite well: S&P 500 earnings grew 28.6% annually. What about consumers though?

  • The U.S. had 7.62 million open jobs in April, a two-year high. But the labor market appears to be softening, just look at wages.

  • Manufacturing is growing. At last check orders, production, imports and exports were all up. So why has the sector lost 66,000 jobs in the past year? 
 
More on energy
  • Brent crude rose to $96 a barrel today, while a gallon of gas averaged $4.29.

  • AI’s power needs are reviving the uranium mining industry. We traveled to the center of it, in Wyoming.

The Trump administration
  • The Federal Reserve’s usual preferred inflation gauge came in hot last week, but new Fed Chair Kevin Warsh said he looks at a different number. Here’s what you need to know.
  • Former Federal Reserve Chair Jerome Powell warned repeated attacks on the central bank’s independence, some of which were spurred by Bill Pulte, put the Fed’s credibility at risk.

  • The $1.8 billion slush fund meant to settle the president’s lawsuit against his own IRS isn’t happening, but the other part of the settlement shielding Trump and his family from audits still is.

  • Trump signed an executive order calling on AI companies to hand over advanced models to the government for a voluntary national security review.

Work
  • The New York Fed found remote work is hurting new college grads job prospects. Employers are less willing to hire younger workers who need on-the-job training.

  • Food delivery robots are working side gigs on college campuses, training students pursuing careers in robotics.


QUOTE OF THE DAY
“Latino entrepreneurs … have created more net new firms and more jobs than any other ethnic or racial group.”
— Chris Farrell, Marketplace senior economics contributor
Latino-owned businesses are growing faster and creating more jobs than their white-owned counterparts, but getting just a sliver of the venture capital pie, a recent Stanford study found. Latinos also have a harder time getting big loans and winning federal contracts. And that’s all before federal immigration enforcement gets in the way of day-to-day business.
HEAR MORE
A gloved hand pours motor oil from a plastic bottle into a car engine.
vm/iStock/Getty Images Plus
Final note
Please, don’t hoard the motor oil
Motor oil costs about the same as it did before the Iran war began, even as the price of gas has soared nearly 50%. Turns out, motor oil price has more to do with the refining process than the ingredients — until one of those ingredients, group III base oil, is choked off by the war. You might start paying more for an oil change midsummer, but an expert told us to remain calm and keep your normal maintenance schedule. This isn’t toilet paper during the pandemic.
READ MORE
 
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