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Former oil exec Hofmeister: Gas rationing needed
David M. Dickson, Washington Times
John Hofmeister, the former president of Shell Oil Co. and one of the most influential voices in the oil industry, called for short-term gasoline rationing by introducing odd-even purchases based on an automobile’s license plate and by limiting the amount of gasoline drivers can purchase.
The United States will be in “a world of hurt” for the next four to six weeks as the oil industry recovers from the damage from Hurricanes Gustav and Ike, said Mr. Hofmeister…
“America is suffering a lot more than is being reported,” said Mr. Hofmeister, who is also chairman of the National Urban League. The economic slowdown may not be affecting the well-to-do, but it is “really nailing middle- and low-income people.”
(15 September 2008)
Increasing Fuel Supply in the Aftermath of Hurricanes Gustav and Ike
White House
Today, President Bush discussed Federal actions his Administration is taking to increase fuel supply in the aftermath of Hurricanes Gustav and Ike.
These storms have disrupted our energy sources, and the Federal government is leading the effort to minimize the impact on American families. This recovery effort will take time, but the Administration is acting quickly to help the millions of residents in Texas and Louisiana who have been affected by Hurricane Ike. We are coordinating with State and local governments to help restore power, remove debris, and get water and sewage plants back up and running. Tomorrow, President Bush will visit Texas to support the rebuilding and recovery efforts following the storms.
President Bush Has Directed His Administration To Take The Necessary Steps To Ensure An Adequate Supply Of Energy
The Energy Department stands ready to release crude oil from the Strategic Petroleum Reserve (SPR) when and where it is necessary to ensure refineries are capable of maintaining operations. In the wake of Hurricane Gustav, Secretary Bodman released crude oil from the SPR. This oil was released at the request of two companies – Marathon Petroleum Company (500,000 barrels total; two deliveries of 250,000 each) and Placid Oil (130,000 barrels total). To date, these three deliveries of emergency exchange SPR oil are complete. Yesterday, the Energy Department approved the release of an additional 309,000 barrels of crude oil to two companies – ConocoPhillips (200,000 barrels total) and Placid Oil (109,000 barrels).
(15 September 2008)
American Petroleum Institute criticizes energy proposals in both House, Senate
Katie Teller, SNL Financial
American Petroleum Institute President Red Cavaney on Sept. 12 criticized recent efforts in both the U.S. Senate and House that could open up more areas of the Outer Continental Shelf to drilling, but would also increase taxes on the oil and natural gas industry.
House Democrats are planning on introducing a bill this week that would allow leasing between 50 and 100 miles offshore if a state opts to allow it. The OCS beyond 100 miles would be open to drilling.
“By prohibiting oil and natural gas development within 50 miles offshore, even from those states which favor drilling off their coastlines, the leadership’s bill denies Americans access to some of our nation’s most promising energy resources,” Cavaney said in a letter to House Speaker Nancy Pelosi, D-Calif. He also criticized the House bill’s inclusion of new taxes on the industry.
“Additional taxes and fees on the U.S. oil and natural gas industry would undermine our nation’s energy security by amplifying the already rising costs to explore for oil and natural gas, as well as discourage new domestic production and new investments to expand refinery capacity,” Cavaney said.
He criticized the House bill’s “use it or lose it” provision, which would strengthen requirements for companies to drill on already-leased lands. Cavaney said this creates a “false impression that oil and natural gas companies are purposely failing to produce resources on lands currently under lease.”
He noted that some leased lands do not contain enough oil or natural gas to produce, and that the process of exploration and finding resources on land takes time.
(15 September 2008)
Outspoken scientist delivers shots with book
Margaret Munro, Canwest News Service via Star Phoenix
When Environment Canada scientists were ordered to refer all media calls to Ottawa earlier this year, climatologist Andrew Weaver denounced the Harper government for “muzzling” federal researchers.
After the Conservatives announced “aspirational” targets for reducing Canada’s greenhouse-gas emissions, the University of Victoria researcher said he could see no scientific rationale for the numbers. “Maybe they have a Ouija board or something,” he suggested.
Now the colourful and outspoken academic has a new book, Keeping Our Cool, Canada in a Warming World …
(15 September 2008)
A Chicken in Every Garage
Eduardo Porter, New York Times
From afar, the rise and fall of the sport utility vehicle might look like the clear-cut story of two gas prices. …
But the Ford F-Series pickup did not rule the roost as the nation’s best-selling vehicle, on an annual basis, from 1981 to last year just because gas was cheap. Its ascent required a helping hand from Uncle Sam. As Washington scrambles for a policy to achieve the incompatible goals of making fuel cheaper and making Americans use less of it, it might consider the twisted tale of how four-wheel-drive gas hogs became Detroit’s best sellers.
It started in 1961 with chicken. Trying to stop a surge of chicken imports into Germany, the European Common Market bowed to the European poultry lobby and almost tripled the tariff on frozen chicken from the United States. Washington, of course, struck back. In 1963, it raised tariffs on a range of European products: brandy to hit the French; dextrine, a food and glue component, to hit the Dutch.
To target Germany, the Johnson administration imposed a 25 percent tariff on light-truck imports, a barrier that fell on Volkswagen, which exported vans to the United States. “Why should we be the scapegoats in the chicken war?” lamented Heinz Nordoff, Volkswagen’s chief executive at the time.
The chicken war ended, but the tariff survived. It explains a lot about why Detroit chose to stake its future on S.U.V.’s.
(12 September 2008)
