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OPEC May Offer Every Barrel of Oil Members Can Pump
Bloomberg
The Organization of Petroleum Exporting Countries may agree to offer customers every barrel of oil that members can produce, effectively suspending the group’s quota system that has regulated supply for about two decades.
OPEC has 2 million barrels of production capacity idle, Sheikh Ahmad Fahd al-Sabah, the OPEC president and Kuwaiti oil minister, said in an interview in Vienna, where OPEC meets tomorrow. One proposal is for members to offer that full amount to buyers, he said. The other is for an increase in the quota of 500,000 barrels a day, or 1.8 percent.
“We can offer the 2 million barrels of extra capacity to the market, available for whoever wants to have it,” Sheikh Ahmad said today. “Maybe this will be better” than the quota increase. Both ideas are under consideration, he said. …
(18 September 2005)
Iran announces gasoline ‘smart cards’ to moderate consumption
Petrol imports predicted to hit $20b in 4 years
IranMania
LONDON, September 18 (IranMania) – A senior parliamentarian said that the government will have to import $20 bln worth of gasoline over the next four years to meet ever-increasing demand, stressing that the lawmakers have rejected the proposal to ration fuel. Kamal Daneshyar, who heads the Majlis Energy Commission, told Mehr news agency that gasoline distribution mechanism will not change this year, adding that gasoline imports will reach $4-5 bln by March. …
It was announced earlier that smart gasoline cards will be distributed nationwide from February 2006 as part of efforts to control consumption.
Gasoline consumption grew by 10.5 percent last month. Consumption reached 70 million liters a day in August and is expected to hit 80 million liters as schools reopen later this month. Domestic refineries supply some 40 million liters of gasoline per day at present.
(18 September 2005)
We’d appreciate more information on what sort of smart-card scheme the Iranian government is planning.-LJ
Economists’ No. 1 fear: energy prices
High costs have replaced terrorism as top short-term threat to the U.S. economy, NABE survey says.
Reuters via CNN
WASHINGTON – Lofty energy prices have supplanted terrorism in the eyes of economists as the biggest short-term threat facing the U.S. economy, a survey released Friday showed. The National Association for Business Economics said a survey of 202 of its members found that 30 percent now view energy prices as the biggest risk to growth, up from 11 percent in its last survey in March.
In contrast, only 20 percent of the economists surveyed said terrorism was their biggest concern, down from 24 percent in the March survey and well below the 40 percent who cited terrorism as their top worry in August 2004. …
(16 September 2005)
Go ahead, make Putin’s day. Drive a giant SUV
Jim Hoagland, Houston Chronicle
WANT to make a former KGB colonel’s day? Simple. Climb into your SUV and cruise your city. Turn up your home or store air conditioner on a warmish day. Or choose another way to waste energy. You will bring a smile to Vladimir Putin’s face and a bulge to Russia’s national wallet.
Not directly, of course. But by continuing to live unmeasured lives when it comes to energy consumption, too many Americans could unconsciously help Putin achieve his strategic objective of making Russia a second Saudi Arabia. …
(17 September 2005)
Petrol to factor in ACTU wage claim
ABC (Aus)
The Australian Council of Trade Unions (ACTU) will include the rising cost of petrol in a wage claim for more than 1.5 million low-income earners. …
The ACTU says it will reveal the figure next week but it is believed the claim will be more than $20.
(19 September 2005)
As gas prices rise, so do number of scams
beware of fuel saving products and promos
Mella McEwen and Bob Manista, Midland Reporter Telegram (US)
The Environmental Protection Agency has evaluated or tested more than 100 alleged gas-saving devices and has not found any product that significantly improves gas mileage. …
Q: Do “gas-saving” products work?
Gas prices are reaching all time highs. So too is the volume of advertising for products designed to appeal to consumers looking for ways to improve fuel efficiency. Although there are practical steps car owners can take to increase gas mileage, the Better Business Bureau warns consumers to be wary of gas-saving claims for automotive devices or oil and gas additives. While some of the gas-saving products have been proven to work, the savings are small, at best. What’s more, you could end up with serious engine problems or a voided manufacturer warranty by adding after-market devices to your engine. …
(16 September 2005)
The great American airlines disaster
Tracey Boles, tHEbUSINESS
A total of 140 carriers have sought Chapter 11 bankruptcy in the US since 1978. Today, four of the Big Seven are still under the protection of the courts
HURRICANE Katrina may have blown itself out in the early days of September but it claimed two new casualties last week. The post-storm spike in the price of oil was the straw that broke the camel’s back for Delta Air Lines and rival Northwest, forcing both US airlines to file for bankruptcy protection on Wednesday night.
The airlines – long hobbled by high fuel costs, relentless competition and heavy debt which was causing them to burn millions of dollars each day – join the 140 US carriers which have sought Chapter 11 since 1978. …
(18 September 2005)
Airlines’ Bankruptcies May Impact Service
J.Freed and H.Weber, Associated Press via Yahoo
The fear that bankrupt Delta Air Lines Inc. and Northwest Airlines Corp. could slash the number of pilots along with their pay and pensions is leading some observers to wonder about the long-term impact on service. “If not controlled, it could mean delays and disgruntled passengers,” airline expert Terry Trippler said Friday. “It’s critical that this tension be stopped as quickly as possible.” …
In a follow-up letter to pilots Friday, Malone said Delta has warned that it will cease payment of non-qualified retirement benefits to retired pilots, and that it will not make future contributions to the pilot defined benefit plan as they become due.
“Our contract has been placed in jeopardy as a result of Delta’s petition for bankruptcy protection,” Malone wrote in Friday’s letter. “The fight that has just begun will be intense and difficult.” …
(17 September 2005)
Sometimes we re-headline articles so readers have a better idea what they’re about, but this headline is original and priceless: bankruptcy affecting service – gosh do you think so? -LJ
