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Sunday, December 17, 2023

US Frackers Return to Haunt OPEC’s Pricing Strategy

 

  • US crude juggernaut adds equivalent of new Venezuela to supply
  • OPEC, allies have restricted supply in response to price drop

OPEC’s one-time nemesis — US shale — is rearing its head just months after the sector was all but written off as a threat to the cartel’s sway over worldwide oil markets.

Drillers from the Permian Basin in West Texas to the Bakken Shale of North Dakota have ramped up oil production well beyond what analysts foresaw, pushing output to a record just as OPEC and its allies put the brakes on supplies in a bid to arrest price declines.

https://www.bloomberg.com/news/articles/2023-12-17/shale-oil-s-unexpected-surge-poses-threat-to-opec-s-bid-to-prop-up-crude-prices

"A No Brainer": Musk's Starlink Breaks Through Bureaucracy And Corruption In Africa

 by Darren Taylor via The Epoch Times (emphasis ours),

Elon Musk’s revolutionary satellite internet service, Starlink, is spreading across Africa, flying in the face of repressive and corrupt regimes that are trying to block it.

In some cases, African companies are "illegally" importing and selling the equipment to allow users to bypass expensive and often state-controlled internet service providers (ISPs), and to use the cheaper and faster connectivity provided by the world’s richest man.

Many Africans living in countries where authorities haven't yet granted regulatory licenses to Starlink, which is a division of SpaceX, are also accessing its services using signal-boosting equipment.

The signal boosters enable users to link to a SpaceX "ground station" in Nigeria, which in January became the first African country to grant regulatory approval to Starlink services.

"The tech revolution is happening at a pace that most African governments just cannot keep up with," said Arthur Goldstuck, founder and CEO of World Wide Worx, one of Africa’s leading tech firms.

"The genie is out the bottle. The sooner they realize that they can’t control the uncontrollable, the better for them and the better for their people," he said.

Mr. Goldstuck said Africa is the world’s fastest-growing, but most "technologically-starved," continent.

"Data is expensive in Africa, and you can’t progress in the modern world when data is expensive. So demand for well-priced and speedy connectivity has exploded. Musk is feeding this demand," he told The Epoch Times.

"Some governments don’t like this, because they want to control everything, and mostly they want to control money and information flows."

Starlink, operated by Mr. Musk’s SpaceX spacecraft manufacturer and satellite operator, has a constellation of thousands of satellites in low orbit, delivering the world’s "most advanced broadband internet system" to 60 countries, according to its website.

Mr. Goldstuck said "progressive" African governments that encourage private enterprise and respect its ability to help develop their countries have "no problem" with Starlink and recognize its value.

"It offers high-speed streaming, video calls, and remote working, all of which contribute a lot to economic efficiency," he said.

Officially, Starlink is available in only seven of Africa’s 54 countries: Benin, Kenya, Malawi, Mozambique, Nigeria, Rwanda, and Zambia. Another 25 are scheduled to go online in 2024.

Young Somali women look at a smartphone at Dadaab refugee complex, in the northeast of Kenya, on April 16, 2018. (Yasuyoshi Chiba/AFP via Getty Images)

"Look at where [the] powers-that-be are trying to prevent the entrance of Starlink: It’s war-torn countries like Sudan, Libya, and Somalia. It’s repressive regimes like Congo and Equatorial Guinea, that restrict access to information," Mr. Goldstuck said.

"And it’s governments that have vested interests in keeping data expensive, and that have unreasonable rules designed to benefit political elites, like South Africa."

Some African governments slap heavy taxes on private telecom services and infrastructure.

For decades, the data needed to access the internet in Africa has been controlled by just a few multinational mobile telecommunications corporations, including South Africa’s MTN Group and Vodacom, and Kenya’s Safaricom.

Their data packages are prohibitively expensive.

In July 2022, research by British technology company Cable, published in Mobile Magazine, showed that six of the 10 countries with the most expensive data are in sub-Saharan Africa.

In the tiny, mineral-rich kleptocracy of Equatorial Guinea in Central Africa, one gigabyte (GB) costs almost $50, the highest price for data in the world. In Chad, 1 GB costs $24.

Until Starlink’s recent arrival, 1 GB was priced at $26 in Malawi.

An August 2022 report by global statistics service Statista calculated the average cost of 1 GB of mobile data in sub-Saharan Africa at $4.47.

A one-time hardware and installation cost of Starlink kits, which contain a motorized satellite dish, assorted cables, a metal tripod stand, a power adapter, and a Wi-Fi router, is about the same everywhere: $550.

But basic monthly subscription prices in the developed world, compared with those in Africa, are very different.

In the United States, for example, Starlink’s monthly service fee is $110. In the African countries that officially have Starlink, the average price is about $45.

This $45 package allows users to download 1,000 GB of data, meaning 1GB costs Africans less than $0.50—nine times cheaper than the average in sub-Saharan Africa.

"This is a no-brainer," said Nigeria-born Makinde Adeagbo, a freelance software engineer who has worked at Facebook, Microsoft, and Pinterest, and is currently based in Silicon Valley.

"It’s no wonder African companies are coming up with all kinds of schemes to get access to Starlink," Mr. Adeagbo said.

"Because of the equipment cost, it’s too expensive at the moment for the vast majority of Africans to afford. But businesses, government departments, schools, shopping centers ... They sure can afford it."

Schoolchildren from Avrankou-Houeze school attend a class at City Hall in Avrankou, Benin, on Jan. 18, 2019. (Yanick Folly/AFP via Getty Images)

Breaking Through in South Africa

South Africa, the nation in which Mr. Musk was born, is potentially the continent’s most lucrative telecom market. It's also one of those trying to obstruct Starlink.

South Africa's ruling African National Congress has enacted the Electronic Communications Act, which requires all telecom firms operating in South Africa to be 30 percent owned by "groups and/or individuals historically disadvantaged" by apartheid.

In May, at a tech carnival in Johannesburg, Starlink Director of Sales Phillip van Essen was diplomatic when he addressed the question of why Starlink isn’t officially present in Africa’s most technologically advanced economy.

"We prioritize the countries that make it easy for us to do business there, open entities, and get regulatory approvals," he told reporters.

"We respect that every country has their own process. ... and we have a dedicated team that is focused on regulatory efforts globally, including South Africa. We're hopeful that we can resolve the issues and start service here soon."

Since then, however, the government—via its Independent Communications Authority of South Africa— (ICASA), has clamped down on companies offering Starlink packages in the country.

In June, IT-Lec, a firm selling internet access in South Africa’s remote Northern Cape province, imported more than 4,000 Starlink start-up kits.

"Because of its portability and ease-of-use—not to mention low cost and high speed—we saw the Starlink kit as ideal for our customers," Mauritz Coetzee, IT-Lec's managing director, told The Epoch Times.

"They stay in the most isolated, rural areas of South Africa, where they’re not able to get broadband connectivity because the established ISPs don’t operate where they live."

Mr. Coetzee said he didn’t "just blindly buy" thousands of Starlink kits.

"My legal advice was that I was completely within my rights to use Starlink’s international roaming service," he said.

IT-Lec was able to provide Starlink services for South Africans by purchasing a Starlink International roaming subscription in neighboring Mozambique, where Starlink is authorized to operate, and then selling the required equipment to clients.

https://www.zerohedge.com/markets/no-brainer-musks-starlink-breaks-through-bureaucracy-and-corruption-africa

Ugly Truth Behind Buy Now, Pay Later Plans

 

  • Buy now, pay later services typically let you split a purchase into four payments.
  • Even when a BNPL plan doesn't charge interest or fees, you'll pay in other ways.
  • BNPL won't help you build credit.
If you're short on cash this holiday season, you may be tempted to use a buy now, pay later plan. These plans let you split a purchase up into four interest-free installment payments that you typically make biweekly. Most buy now, pay later plans don't require a credit check.

But here's the dark side of buy now, pay later (BNPL) plans: Retailers love these plans because they know you're likely to spend more.


When you use a buy now, pay later service like Klarna or Afterpay, you're technically getting an installment loan. But instead of making money off the interest you pay -- which is what happens with a traditional loan -- BNPL lenders earn the bulk of their payments from merchant fees. Shopify reports that these fees typically range from 2% to 8% of overall transaction costs.

Retailers are happy to foot the bill because they know that customers spend more when they use BNPL. One study found that 70% of customers admitted to spending more when they paid with buy now, pay later. Research also shows that BNPL makes you more likely to make a purchase you're on the fence about. When you do make a purchase, the amount you spend is often higher.

In a paper called "Buy Now, Pay (Pain) Later," researchers from the University of Washington, University of California-Irvine, and Singapore Management University, offer several explanations for why overspending is so prevalent with buy now, pay later plans:

  • Easy access to credit is generally associated with people spending more.
  • BNPL lenders are more willing to extend credit to risky borrowers because they earn commissions from retailers.
  • Since BNPL services rarely report to credit bureaus, customers can often borrow more than they can afford.

The same research found that customer usage of BNPL services is associated with an increase in overdraft fees, credit card interest rates, and late fees.

That finding is especially alarming because customers with shaky finances are more likely to use BNPL. The New York Survey of Consumer Expectations Credit Access Survey found that 43% of BNPL customers have credit scores of 620 or lower, while 37% reported being at least 30 days delinquent on a bill at some point in the last year.

Using buy now, pay later can be especially appealing to customers with bad credit because you can typically get approved without a hard inquiry to your credit report. But keep in mind that these plans won't help you build credit. Whether you're building credit from scratch or trying to improve a bad score, you'll need a credit card or loan that reports your payments to the credit bureaus. 

While BNPL providers won't report your on-time payments to the bureaus, some do report missed payments. This means that BNPL is unlikely to help your credit score, but it could hurt your credit score.

Buy now, pay later comes with real risks, but it's possible to use these plans without getting buried in debt or hit with fees. If you're going to use a BNPL service, follow these tips to avoid risking your personal finances:

  • Only use BNPL for purchases you already planned to make.
  • Make sure you understand when each payment is due and that you'll have sufficient cash in your bank account to cover the payment.
  • Read the details of the payment plan so you're clear on whether you'll be charged interest, what happens if you're late on a payment, and whether the service reports to the credit bureaus.

Finally, consider the alternatives. If you're eligible for a 0% APR credit card, this is often a better option than BNPL. You'll get the zero-interest perk that many BNPLs offer, plus you'll face fewer headaches if you need to make a return or dispute a charge.

https://www.fool.com/the-ascent/personal-finance/articles/this-is-the-ugly-truth-behind-buy-now-pay-later-plans/

Quaker’s Chewy granola bars recalled for salmonella risk

 The Quaker Oats Company is recalling some granola bars and granola-based cereals due to the risk of salmonella.

The company announced it was recalling the products Friday. It said it has “received no confirmed reports of illness related to the products covered by this recall.”

Quaker reassured consumers in its announcement that it had informed the U.S. Food and Drug Administration (FDA) of the actions it took related to the recall.

The recall was also posted on the FDA’s website, an action the FDA takes “whenever a company announces a recall, market withdrawal, or safety alert,” as “a public service” to consumers.

“Healthy persons infected with Salmonella often experience fever, diarrhea (which may be bloody), nausea, vomiting and abdominal pain,” the Quaker announcement reads. “In rare circumstances, infection with Salmonella can result in the organism getting into the bloodstream and producing more severe illnesses such as arterial infections (i.e., infected aneurysms), endocarditis and arthritis.”

Recalled Quaker products include the Quaker Big Chewy Bars Variety Pack and the Quaker Chewy Bars and Dipps Variety Pack, according to the Quaker announcement.

The announcement comes slightly more than a month after some pet foods were recalled following salmonella infections found in infants who ingested the products.

“The U.S. Food and Drug Administration, in collaboration with the U.S. Centers for Disease Control (CDC) and state partners, is investigating seven human cases of Salmonella Kiambu infection potentially associated with pet food made by Mid America Pet Food,” the Food and Drug Administration (FDA) said at the time.

The Centers for Disease Control and Prevention (CDC) says symptoms of salmonella infection “usually begin six hours to six days after infection and last four to seven days.”“However, some people do not develop symptoms for several weeks after infection and others experience symptoms for several weeks,” the CDC says on an informational page about salmonella.

https://thehill.com/business/4363808-quaker-recall-salmonella-risk/

California to vote on allowing ‘toilet-to-tap’ projects

 Some Californians could find themselves flushing a future drinking water source down their commodes in just a few years’ time — pending the approval of long-awaited, but misnamed, “toilet-to-tap” rules next week. 

The California State Water Resources Control Board will consider a landmark proposal Tuesday to streamline “direct potable reuse” (DPR) — a process by which purified wastewater is discharged right into a public water system or just upstream from a treatment plant. 

“It’s a real important step for just adding to the portfolio that we can use here in the West,” Darrin Polhemus, deputy director of the board’s division of drinking water, told The Hill.

Such capabilities, he explained, could strengthen California’s water resilience, while providing numerous environmental benefits and reducing the need for long-distance water transport.

“We’re not using it one time and dumping it in the ocean,” Polhemus said.  

While these regulations would constitute a giant leap forward in statewide water recycling, California utilities are by no means new to repurposing sewage.

They have for years engaged in “indirect potable reuse,” the injection of treated wastewater into environmental buffers — such as groundwater aquifers, lakes or rivers — before its ultimate release into a municipal system.

Orange County, which has treated sewage in some capacity since the 1970s, now boasts the world’s biggest water purification system for indirect potable reuse. Today, the county claims to be reclaiming 100 percent of its wastewater.

Unlike indirect potable reuse, however, DPR occurs without the use of an underground aquifer or any environmental storage barrier.

Even if the board does approve the rules Tuesday, DPR systems won’t be popping up overnight — and when they do, the wastewater won’t really be flowing right from a toilet to a tap.

The regulations first would have to be accepted by the state’s Office of Administrative Law — which Polhemus said would likely occur by summer or fall of next year. Only after that could utilities begin to build these large and complex projects, most of which would take about six or seven years to complete, he said.

“So no one will be drinking direct potable reuse in the immediate future,” Polhemus added. 

Tapping into an existing system, over and over again

While California is often a national trailblazer when it comes to environmental regulation and legislation, the Golden State would not be the first to adopt rules regarding DPR.

Colorado adopted DPR regulations after updating its drinking water standards in January, though no utilities are making use of these rules thus far. Texas published regulatory guidance for DPR on a case-by-case basis, while Florida and Arizona are now working on related rules.

The California regulations, however, are expected not only to be the most rigorous, but would be serving several commercial-scale projects that are already in planning phases.

The proposed regulations stem from the 2017 A.B. 574 bill, which tasked the water resources board with adopting “uniform water recycling criteria for direct potable reuse” on or before Dec. 31, 2023.

Within the regulations are mandates that all source water for DPR projects come from municipal sewage and a ban on building bypasses to circumvent mandatory treatment processes.

The 69-page proposal also provides guidelines for controlling and monitoring chemicals and pathogens, as well as extensive instructions for plant operations, maintenance and compliance. 

Among the expected benefits of the proposed regulations are the provision of a safe, reliable and drought-proof drinking water supply, as well as a streamlined permitting procedure for DPR facilities, according to a statement of reasons issued by the board in July.

As far as the economics are concerned, Polhemus noted that DPR would enable utilities to reduce some of the expensive and disruptive pipeline and infrastructure construction that comes with other types of water recycling efforts.

“DPR does provide this opportunity to tap into the potable water distribution system that exists already,” he said.

Polhemus acknowledged that DPR is expensive but stressed it is far cheaper than desalination. Even when cities develop new natural water sources — which are largely unavailable in California — they confront “phenomenally high” costs for dams and aqueducts, he added.

Getting the public on board

Despite the many potential benefits associated with directly recycling wastewater, California regulators have faced an uphill battle in making this practice a reality.

For example, San Diego launched a campaign to implement DPR in the 1990s, but the plans stalled when a “toilet to tap” misnomer caught on and began to sway public opinion, KPBS reported.

Public opinion on DPR has evolved since the days of the San Diego debacle — both as the science has become clearer and California’s water needs have become more dire.

Jennifer West, managing director at the NGO WateReuse California, said she believes DPR has become more palatable to Californians as they have begun to understand the value of water amid multiple decades of drought.

“Using water one time and discharging it — we can do better than that,” she told The Hill.

West said she has seen a shift in “the collective consciousness” of Californians, noting that residents now complain when their cities aren’t reclaiming enough wastewater.

Polhemus likewise attributed the increasing public acceptance to the fact that water recycling — at least in indirect form — has now been occurring for a long time.

“For decades, we’ve learned from all of the activities we’ve done for recycling — from irrigation to indirect potable reuse,” he added, describing DPR as “the final step.”

If the regulations are approved, they would also require engagement with members of the public prior to the establishment of any DPR facility, according to Polhemus.

“We want the public to be brought along, to be explained what’s going on and be part of that decision-making process,” he said.

Emphasizing that “we’re not imposing this on anybody,” Polhemus reiterated that the board is simply providing utilities with a framework if they so choose to build a facility.

One long-standing issue that he and others identified as a barrier toward getting the public on board has been a discomfort linked to the potential presence of both chemicals and infectious diseases in wastewater.

Polhemus stressed, however, that the proposed regulations included “triple redundancy” to ensure the elimination of biological contaminants.

To identify an acceptable pathogen threshold and treatment protocol, researchers relied upon both the Giardia and Cryptosporidium parasites and on norovirus, the most common cause of acute gastroenteritis, according to the July statement of reasons.

They determined that regulating bacteria levels was unnecessary, as the treatment for handling “the hardier pathogen types” could “easily deal with the bacteria threat,” the document stated.

“The regulations are extremely protective of public health, and it’s going to be the cleanest water around,” West added.

On the chemical side, Polhemus touted an effective combination of reverse osmosis, advanced oxidation and granulated activated carbon.

That redundancy, he contended, gives regulators “the confidence that we’ll be able to treat for things we don’t even know are there.”

‘A community’s always going to produce wastewater’

If the DPR regulations receive an official stamp of approval, there are several Southern California projects prepared to embark on a multi-year planning and construction journey.

Among these projects is Pure Water San Diego, a multi-phased program to provide nearly half of San Diego’s water from local sources by the end of 2035. 

Although the first phase of Pure Water San Diego will use a reservoir for indirect potable reuse, the city is considering incorporating DPR into the next phase, according to the plans.

The Metropolitan Water District of Southern California, meanwhile, is partnering with Los Angeles County Sanitation Districts on a two-phased initiative, Pure Water Southern California, which plans to include DPR from the get-go.

The first phase is expected to involve a mix of indirect potable use and a type of DPR called “raw water augmentation,” in which treated wastewater would be blended with imported Colorado River water and state resources.

This process still qualifies as DPR because the mix would go directly into a drinking water treatment plant and on to customers, rather than first spending time in an environmental buffer.

“Our plan is to have Pure Water Southern California online and using DPR by 2032,” Rebecca Kimitch, press office manager for Metropolitan Water District, told The Hill.

As far as the second phase is concerned, project officials said they have yet to decide whether the DPR technology will again involve raw water augmentation or another approach.

“DPR is a vital component of our Pure Water Southern California program as well as to California’s water management strategy as a whole,” Kimitch said.

“But DPR will allow us to take this stream of purified water and incorporate it into our system right away, regardless of what the conditions in nature are,” she added.

Because Southern California lacks the natural resources to quench the thirst of its residents, the region has been relying on bringing in water from the Colorado River and from the northern parts of the state, Kimitch noted.

“We want to just use it as much as we can,” she continued. “Using it once and then sending it to the ocean — that’s not being as efficient and as sustainable as we can be.”

Polhemus echoed many of these sentiments, noting that as utilities consider how to bolster its resilience amid drought, adding DPR to their portfolios simply “makes a lot of sense.”

“A community’s always going to produce wastewater,” he said.

https://thehill.com/policy/energy-environment/4362918-california-toilet-to-tap-water-direct-potable-reuse-proposal-what-to-know/

Long-Term Use Of Statins Linked To Heart Disease: Studies

 by Vance Voetberg via The Epoch Times (emphasis ours),

For decades, statins have been heralded as the reliable heroes in the battle against heart disease, the leading cause of death in the United States and globally. However, this seemingly flawless reputation has been called into question.

A new expert review suggests that long-term use of statins may be inadvertently aiding the enemy by accelerating coronary artery calcification instead of providing protection.

Statins Deplete Heart-Protecting Nutrients 

The review, published in Clinical Pharmacology, suggests statins may act as “mitochondrial toxins,” impairing muscle function in the heart and blood vessels by depleting coenzyme Q10 (CoQ10), an antioxidant cells use for growth and maintenance. Multiple studies show statins inhibit CoQ10 synthesis, leading many patients to supplement.

CoQ10 is vital for producing ATP, the cell’s fundamental energy carrier. Insufficient CoQ10 inhibits ATP production, resulting in an energy deficit that the review authors say “could be a major cause for heart muscle and coronary artery damage.

We believe that many years of statin drug therapy result in the gradual accumulation of mitochondrial DNA damage,” according to the authors.

A 2022 study published in Biophysical Journal linked reduced ATP to heart failure.

A 2008 study published in BioFactors reaffirms the statin–CoQ10 link. Researchers evaluated 50 statin patients for side effects like fatigue and muscle pain. All then stopped statins and supplemented CoQ10 for 22 months on average.

Heart function improved or held steady for the majority of patients. The researchers conclude statin side effects, including statin cardiomyopathy, “are far more common than previously published and are reversible with the combination of statin discontinuation and supplemental CoQ10.”

Statins Deplete Vitamin K, Raising Heart Calcification Risk

Statins impair the production of vitamin K, an essential vitamin in managing calcification, according to the review. Optimal vitamin K2 intake helps avoid plaque buildup of atherosclerosis—thickening or hardening of the arteries—and keeps calcification risk low.

Coronary calcification happens when calcium accumulates in the walls of the coronary arteries that provide oxygen to the heart. This plaque buildup is a sign of early coronary artery disease, which can block blood flow and trigger a heart attack.

2021 study published in the Kaohsiung Journal of Medical Sciences found a connection between statin use, coronary artery calcification, and vitamin K2 deficiency. The results shed light on how statins may spur arterial calcium accumulation by inhibiting vitamin K. The study’s findings were “in agreement with the existing evidence about positive association between statins and vascular calcification,” the authors added.

Statins also damage selenoproteins, carriers of the mineral selenium essential for heart health.

Statins were also linked to increased calcification in a 2022 study published in Arteriosclerosis, Thrombosis, and Vascular Biology. However, the authors proposed that statins may encourage calcification by heightening inflammation rather than nutrient deficiency.

Physicians Overlook Statins as Driver of Heart Failure: Experts

Based on emerging evidence on statins’ potential cardiac downsides, the authors of the new review warn that “physicians in general are not aware that statins can cause heart failure and are clearly not recognizing it.” Though doctors readily diagnose heart failure in statin users, they usually attribute it to factors like age, high blood pressure, or artery disease.

Doctors prescribing cholesterol drugs “cannot ignore the moral responsibility of ‘informed consent,’” the researchers wrote, noting that patients deserve full disclosure of side effects like cardiovascular disease or heart failure.

With over a million annual heart failure hospitalizations in the United States, the condition is often referred to as an epidemic—and it may be that “statin drug therapy is a major contributing factor,” according to the review.

https://www.zerohedge.com/medical/long-term-use-statins-linked-heart-disease-studies

Nissan to export China-developed EVs to global markets

 Nissan Motor said on Sunday it would sell China-developed electric vehicles (EVs) globally as it struck a deal with the country's top university to leverage local resources to accelerate research and development on electrification.

The Japanese automaker is considering exporting the line-up of existing internal combustion engine vehicles and upcoming pure electric and plug-in hybrid cars manufactured and developed in China to overseas markets, Masashi Matsuyama, vice president of Nissan Motor and president of Nissan China, told reporters in Beijing.

Nissan is considering aiming at the same markets as Chinese rivals such as BYD, he said.

The company is joining foreign brands including Tesla, BMW and Ford that are expanding their exports of China-made cars to exploit the country's lower manufacturing costs and increase the capacity utilisation of their factories.

China accounted for just over a fifth of Nissan's worldwide sales of about 2.8 million vehicles over the first 10 months of the year, down from over a third for the same period last year.

Japanese automakers have faced a severe sales challenge this year in China, the world's biggest auto market, due to the popularity of domestic brands and heavy price competition amid a rapid shift to EVs.

Nissan announced it would establish a joint research centre with China's leading Tsinghua University next year, focussing on research and development of EVs, including charging infrastructure and battery recycling.

"We hope that this collaboration will help us gain a deeper understanding of the Chinese market and develop strategies that better meet the needs of customers in China," Nissan President and Chief Executive Makoto Uchida said in a statement.

The launch of the research centre is an extension of joint research efforts the company has had with Tsinghua since in 2016 that focussed on intelligent mobility and autonomous driving technology

https://finance.yahoo.com/news/nissan-set-joint-ev-research-020841425.html