Energy Literacy Advocates Newsroom
Energy Literacy Advocates (ELA) is a non-partisan, non-profit, public education and advocacy group dedicated to improving the energy literacy of all sectors of our democracy in order to empower a comprehensive national energy policy that is responsible and sustainable. Stay tuned for updated energy news!
Monday, October 19, 2009
A New Lowest Price Set for Oil?
Industry and economic analysts predict that $70 a barrel is the new "bargain price" on oil. Lower than that, and oil producers can't fund exploration and development. Oil companies slash dividends. Taxes from governments and exploration constrictions raise new project costs. Oil wells are capped. Economically, the $20 a barrel price of oil, which reigned in the 1990s, is a thing of the past.
Adding to the new floor is the need to replace declining production in established oil fields. 3.5 million barrels a day of new production is needed annually to offset the loss in production from old fields.
For more on this story in The New York Times, click here.
Labels: oil companies, oil price, oil supply, oil supply/demand, peak oil
posted by Amanda Voss at 4:38 PM
0 comments
Monday, October 12, 2009
Let the diesel invasion begin!
Labels: automakers, efficiency, oil price
posted by Amanda Voss at 5:59 PM
0 comments
Tuesday, September 29, 2009
Saudi Minister Touts $75 As Optimal Price for Oil
Labels: energy sources, oil price, oil supply, oil supply/demand, peak oil, renewables
posted by Amanda Voss at 12:11 PM
0 comments
Monday, September 21, 2009
Federal Reserve Meeting Alters Oil Prices
Labels: economy, oil price, oil supply/demand
posted by Amanda Voss at 12:47 PM
0 comments
Thursday, September 10, 2009
Oil Production to Remain Steady; Global Demand May Raise
Labels: economy, oil companies, oil price, oil supply, oil supply/demand
posted by Amanda Voss at 12:09 PM
1 comments
Friday, September 4, 2009
Oil Prices Drop due to OPEC, Economy
Labels: economy, oil companies, oil price, oil supply, oil supply/demand
posted by Amanda Voss at 12:02 PM
0 comments
Monday, August 17, 2009
Oil Prices Remain Steady Despite Storm
Supplies of oil remain high, while demand is low, which has kept prices down. US inventory is 20 percent above levels last year.
For more data, click here.
Labels: oil companies, oil price, oil supply, oil supply/demand
posted by Amanda Voss at 7:01 PM
0 comments
Thursday, August 13, 2009
US Demand for Gasoline is Down
The price of oil, which has stabilized around $70 per barrel, fell slightly after government reports showing continued loss of jobs and lower than expected retail sales. However, many analysts forecast that oil will be a prime commodity as the economy revives, and its price could jump quickly.
For more analysis, click here.
Labels: economy, oil price, oil supply/demand
posted by Amanda Voss at 12:45 PM
0 comments
Monday, July 13, 2009
Prices Drop, Stockpiles Up for Oil
Near future prices will hinge primarily on economic reports, including inflation and consumer confidence indexes.
A further factor in the price of oil are attacks on Nigerian production areas by domestic opposition forces.
For a more full economic synopsis, click here.
Labels: economy, oil price, oil prices, oil supply/demand
posted by Amanda Voss at 11:55 AM
0 comments
Wednesday, July 1, 2009
Oil Prices Reveal Mixed Data
Labels: oil companies, oil price, oil supply/demand
posted by Amanda Voss at 9:09 AM
0 comments
Thursday, June 25, 2009
Oil Price Bubble Could Strike Again
Labels: economy, oil price, oil supply, oil supply/demand
posted by Amanda Voss at 9:26 AM
0 comments
Thursday, May 28, 2009
OPEC Confident of Demand Recovery
Saudi Arabian Oil Minister Ali al-Naimi stated that“prices are good, the market is in good shape,” and that this fact lead the group not to alter its target outputs.
Mike Wittner, head of oil market research at Societe Generale SA in London, felt the most significant development of the conference was the forecast of demand recovery, occuring currently, in the Middle East, Asia and Latin America.
The OPEC decision precedes the U.S. Energy Department's release on oil data today. General trends point towards declining oil stockpiles, which indicate growing demand.
To read the full article, click here.
Labels: economy, oil price, oil supply, oil supply/demand
posted by Amanda Voss at 11:12 AM
0 comments
Tuesday, May 12, 2009
Amidst Rocky Market, EIA Releases Oil Forecast
While numbers might be falling, China appears on the EIA's radar with growing demand forecasted, even for the economic downturn of 2009. Based upon China's recent purchases, oil rose above $60 a barrel - a six month high - in the markets on Tuesday.
To read a full analysis in The Wall Street Journal, click here.
Labels: economy, energy, oil price, oil supply, oil supply/demand
posted by Amanda Voss at 10:46 AM
0 comments
Friday, May 8, 2009
Price of Oil Rises to 6-Month High
Also bolstering oil prices is speculation over what actions OPEC will take May 28 in Vienna. OPEC may agree to cut oil output at its May 28 meeting, but analysts doubt such a move will be made, given the recent strength in oil prices and the still-fragile global economy. A huge glut in inventory - especially in the U.S., where crude stockpiles are at a 19-year high - might argue for such a move, but the near 80% jump in prices from the year's low in January argues against it.
The rise in price parallels historical annual trends, where gasoline prices usually peak during the months of May and June.
To read the full article, click here.
Labels: economy, oil price, oil supply/demand
posted by Amanda Voss at 1:28 PM
0 comments
Friday, May 1, 2009
Price of Oil Posts Gains to Five Week High
Additional promising numbers, including a brighter outlook for manufacturing and growth in China's economy, further bolstered the price of oil. The rise in oil is positive news for OPEC, which meets to review output numbers on May 28 in Vienna.
Keeping a lid on oil price, however, is the news that U.S. supplies rose to the highest level since 1990, while consumer fuel demand dropped.
To access the full article, click here.
Labels: oil companies, oil price, oil supply/demand
posted by Amanda Voss at 4:46 PM
0 comments
Tuesday, April 21, 2009
Asia Ministers, OPEC Discuss Energy Spending
This meeting comes on the heels of the latest IEA report, issued April 10, citing that global oil supplies will be "severely constrained by today’s lower prices and lower investment."
While OPEC wants Asia, which the IEA estimates will account for more than half the increase in world energy demand between 2006 and 2030, to commit to using oil in the years ahead, Asian delegates warn that their countries may move to cheaper alternatives, especially nuclear power, if OPEC won’t contain future prices.
To read the full article in Bloomberg, click here.
Labels: oil companies, oil price, oil supply/demand
posted by Amanda Voss at 8:52 AM
0 comments
Tuesday, April 14, 2009
A New Oil Peak: The Peak of Consumption?
According to the Wall Street Journal, among those forecasting that U.S. consumption of gasoline has peaked are executives at the world's biggest publicly traded oil company, Exxon Mobil Corporation, as well as many private analysts and government energy forecasters.
This forecast, if correct, signals a profound transformation from America's gas-guzzling history. Results could be dramatic; not only for the companies that refine gasoline from crude oil but also for state and federal budgets and for consumers. Much of contemporary America, from the design of its cities to its tax code and its foreign policy, is predicated on a growing thirst for gasoline.
Reasons fueling the drop in consumption include the economic downturn, changes in the way Americans live and the transportation they choose, and a growing emphasis on alternative fuels.
To read the full article in the Wall Street Journal, click here.
Labels: economy, oil companies, oil price, oil supply/demand, peak oil
posted by Amanda Voss at 9:27 AM
0 comments
Monday, April 13, 2009
IEA Releases New Demand Forecast
The IEA is an energy policy adviser comprised of 28 countries. The organization said Friday that demand this year will likely fall by 2.4 million barrels a day to 83.4 million barrels, or 2.8 percent lower than last year.
"In other words, the IEA lowered its estimate the equivalent of the daily output of Iraq," analyst and trader Stephen Schork said in his daily Schork Report. While the percentage seems minor, markets reacted to the new forecast, sending the price of oil down.
To read the full Associated Press report, click here.
Labels: economy, oil price, oil supply/demand
posted by Amanda Voss at 10:29 AM
0 comments
Thursday, March 26, 2009
Some Investors Predict Oncoming Energy Price Surge
While demand is down, many oil analysts predict that the oil price has bottomed out.
The data "suggest the market balance between supply and demand is tighter than it was a year ago when we were trading $110 a barrel," Citigroup energy analyst Tim Evans said. "Over the longer cycle, I don't like to bet against OPEC."
To read the full article, click here.
Labels: oil price, oil prices, oil supply, oil supply/demand
posted by Amanda Voss at 4:33 PM
0 comments
Friday, March 20, 2009
Oil Prices Surge, Fall As Week Ends
Increasing U.S. stockpiles of oil also drove oil prices down.
Oil continues to reflect the volatility of the market, and the economic downturn. Market speculations on oil prices are currently being gauged against predicted timeframes for national and worldwide economic recovery, contents of national oil stockpiles, and consumer and industrial demand.
To read today's market analysis for oil commodities in Bloomberg, click here.
Labels: economy, oil price, oil supply/demand
posted by Amanda Voss at 7:11 AM
0 comments
Wednesday, March 18, 2009
Fight Over U.S. Offshore Drilling Renews
As the Obama administration outlines its energy plans, it is caught between oil companies, who are reminding the president of his campaign pledge to allow some drilling offshore, and environmental groups, who are demanding a reinstatement of the drilling ban that Congress lifted in September.
Obama's administration has demonstrated both stances towards the issue. Since taking office, it has scrapped Bush administration rulings that would have opened up vast new areas for offshore drilling well into the next decade. Conversely, the administration allowed the Interior Department today to move forward with a long-planned auction of leases in the Gulf of Mexico that includes 4.2 million acres that had been off limits since 1988.
With America importing 60% of its daily needs, the discussion will ultimately center around the role of domestic supplies in the energy economy.
To read the full article in The New York Times, click here.
Labels: oil price, oil supply, u.s. energy policy
posted by Amanda Voss at 7:50 AM
0 comments
Monday, March 16, 2009
Saudi Oil Minister Advocates the Critical State of Fossil Fuels
These comments came after the latest OPEC meeting, where members agreed to hold production steady, given the tenuous state of the world economy.
In extolling the continued need for, and reliance upon, fossil fuels, Naimi additionally accentuated the issue of lagging technology in alternative fuels. "... there is no excuse to pin our hopes only on alternatives which today are just supplemental energies," he said. "Our immediate focus, then, must be to make fossil fuels cleaner and more efficient."
To read the full article in Reuters, click here.
Labels: energy, oil price, oil supply/demand, renewables
posted by Amanda Voss at 8:31 AM
0 comments
Friday, March 13, 2009
IEA Lowers Forecast Again
"The International Energy Agency on Friday lowered its estimate for global oil demand in 2009 as the crisis curbs demand in the United States, Russia and China.
The agency said demand would drop for a second consecutive year for the first time since 1982-1983.
In its closely watched monthly survey, the IEA cut its forecast for demand this year by 270,000 barrels a day to 84.4 million barrels a day — 1.5 percent lower than a year earlier.
The Paris-based agency said demand for oil last year was estimated to have slid 0.4 percent to 85.7 million barrels a day.
The IEA said that "the eventual resumption of global demand growth will largely depend upon much stronger economic performance than is currently the case" among the world's biggest energy consumers, and that the latest indicators are "not encouraging."
Members of OPEC have responded to lower demand by cutting output.
The IEA estimates that global oil supply fell in February to 83.9 million barrels a day, down 1 million barrels a day from January and down 3.4 million barrels a day from a year earlier."
To access the link to this article, click here.
Labels: energy, oil price, oil supply/demand
posted by Amanda Voss at 10:53 AM
0 comments
Tuesday, February 3, 2009
Markets Eye Weight of OPEC Cuts
Trading today hovers at $40 per barrel. According to the Associated Press, a report Tuesday by the American Petroleum Institute, the industry's trade association, is expected to show that oil stocks rose to 2.9 million barrels last week, according to the average of estimates in a survey of analysts by Platts, the energy information arm of McGraw-Hill Cos. The U.S. Energy Department's Energy Information Administration reports its inventory data on Wednesday. The data is expected to show that US crude inventories rose by 2.5 million barrels in the week ending January 30, according to a Thomson Reuters poll of analysts.
Oil stocks have grown more than 20 million barrels in the last four weeks, evidence the nation's worst recession in more than 25 years may be deepening. Refiners are buying much less crude with demand for their products like gasoline falling. That has led to rising gas prices even with the price of oil near five-year lows.
To read the full Associated Press article, click here.
Labels: economy, oil companies, oil price, oil supply/demand
posted by Amanda Voss at 10:16 AM
0 comments
Wednesday, January 28, 2009
Oil Prices Rise on Stimulus News
Traders on the New York Mercantile Exchange instead looked to Washington, where the House was expected to approve an $816 billion economic stimulus plan that could help jump-start the ailing economy.
Supporters of the massive stimulus bill say it would create up to 4 million jobs. The bill, which includes roughly $550 billion in spending and $275 billion in tax cuts, could be signed by President Barack Obama by mid-February. If so, it would lead to more energy spending by manufacturers as they ramp up production, and perhaps millions of Americans who have lost jobs since last year.
To read the full AP News Release, click here.
Labels: economy, oil price, oil supply/demand
posted by Amanda Voss at 3:36 PM
0 comments
Monday, January 19, 2009
Sign of the Times: UAE Takes a Green Stance
According to the Associate Press, the United Arab Emirates are making strong pledges toward renewable energy use. The head of a green-energy project in Abu Dhabi says the oil-rich emirate plans to generate 7 percent of its energy needs from renewable sources by 2020.
Sultan al-Jaber says the initiative will create a renewable energy market worth $6 billion to $8 billion in Abu Dhabi.
Most, if not all, of the energy will come from solar power, another official involved with the project says.
To read the Associated Press release, click here.
Labels: oil companies, oil price, oil supply/demand, renewables
posted by Amanda Voss at 9:23 AM
0 comments
Thursday, January 15, 2009
Predicting Oil Futures
According to the Times, "The problem for the companies is not just that prices are lower, but that they have become volatile — historically, a sign of an unstable market whose direction is uncertain. Between Christmas and a week ago oil prices soared 40 percent, only to reverse course almost as sharply in recent days. Just last week, the price of a barrel of crude oil dropped by nearly 12 percent in one day alone."
New trends - unimaginable from the first half of 2008, when suppliers were trying to keep up with demand - include a boom in land and sea storage for excess oil. Investment in new drilling and oil exploration has halted.
To read more about predicitions for oil in 2009, and to access the full Times story, click here.
Labels: economy, oil price, oil supply/demand
posted by Amanda Voss at 8:48 AM
0 comments
Thursday, January 8, 2009
Venezuela Signals Compliance with OPEC Regulations
Venezuela, the biggest oil exporter in the Americas, is making the reductions as part of an agreement to cut 189,000 barrels under the OPEC deal reached Dec. 17 in Algeria to arrest a slide in prices.
To read the full article in Bloomberg, click here.
Labels: oil price, oil supply/demand, u.s. energy policy
posted by Amanda Voss at 8:45 AM
0 comments
Tuesday, January 6, 2009
The Lost Generation: Are the Big Three Automakers Failing to Capture New Audience Share?
Attributing the bulk of that lost confidence to the failure of "The Big Three" to innovate and deliver alternative fuel and high efficiency products, the authors postulate that "To secure Millenials’ support, however, the domestic automobile industry needs to be seen as a contributor in ending America’s dependence on foreign oil and improving our environment. Not only would such an approach assure the industry’s future profitability, it would also remake its image in a way that will appeal to both their future customers and the politicians they support."
To access the article, click here.
Labels: automakers, economy, efficiency, oil price, renewables
posted by Amanda Voss at 10:10 AM
0 comments
Monday, January 5, 2009
China, U.S. Racing to Stockpile Oil
According to the Wall Street Journal, the Chinese are not far behind. China recently completed a four-base strategic reserve complex, and plans to add 102 million barrels of oil during its first acquisition phase. When nonstate oil distributors and refiners are added into the picture, China may boast a total of a billion gallons of idle storage capacity.
While U.S. acquisitions are not expected to have a drastic impact on oil prices, industry experts are watching Chinese purchases carefully.
To read the full article in the Wall Street Journal, click here.
Labels: oil price, oil supply, oil supply/demand
posted by Amanda Voss at 7:48 AM
0 comments
Tuesday, December 30, 2008
A View from the Other Side: Energy in the Tehran Times
In response to the negative effects of low oil prices, the article reported, "Moreover, lower oil prices are likely to impede the massive investment needed to meet rising demand by 2030, delay introduction of energy-saving technologies, and make alternative fuels less competitive. The tight credit environment will also make it more difficult for energy firms to obtain the necessary funding for financing the capital-intensive growth in production capacity, especially necessary for expensive and difficult offshore production, exploration and development, and heavy oil, oil sands, or oil shale production."
The article also discusses the growing threat of energy nationalism, the future supply crunch, and the sleeping giants of China and India.
To read the full article, click here.
Labels: energy policy, energy sources, oil price, oil supply/demand, peak oil
posted by Amanda Voss at 8:48 AM
0 comments
Thursday, December 18, 2008
OPEC Confirms Predicted Cuts; Oil Production Slashed by 2.2 Million
When questioned about the cuts, OPEC cited the need to preserve oil prices so as to maintain medium- and long-term energy supply goals and investments.
The 2.2 million barrel per day production cut represents the largest cut in OPEC history. OPEC controls roughly 40 percent of the world's oil.
To read the full synopsis from the Wall Street Journal, click here.
Labels: oil price, oil supply, oil supply/demand
posted by Amanda Voss at 8:24 AM
0 comments
Monday, December 15, 2008
Price of Oil Rises as OPEC Confirms "Sizable Cuts"
OPEC pumps 42 percent of the world’s oil, and is projected to lower output targets by at least 2 million barrels a day, or 7.3 percent at the meeting Dec. 17 in Oran. Analysts expect Russia to be asked to cut production by 200,000 to 300,000 barrels per day.
Reflecting the uncertainty of the markets, oil, which lost 70% of its value from July, has gained 13 percent in the previous week, its biggest five-day gain in four years, on speculation production cuts will revive prices.
To access the full article in Bloomberg, click here.
Labels: oil price, oil supply/demand
posted by Amanda Voss at 9:23 AM
0 comments
Friday, December 12, 2008
Thwarting the U.S. Oil Addiction: Falling Gas Prices & Consumer Behavior
This is positive news in the face of dire reports fearing low gas prices would bring about America's return to inefficient SUVs and high gasoline consumption.
Falling gas prices still concern industry experts, who fear a 1970's repeat, wherein alternative fuels and technologies were abandoned after the drop in price at the pump. President-elect Barack Obama emphasized these concerns in his November 60 Minutes interview, stating that despite the drop in price, the urgency to diversify energy sources and provide a more stable supply remains.
Labels: biofuels, gas prices, oil price, u.s. energy policy
posted by Amanda Voss at 9:58 AM
0 comments
Thursday, December 11, 2008
International Energy Agency Predicts Continued Demand Drop for Oil
Other indicators bolster the IEA's forecast: spare production capacity among OPEC is currently at a six-year high, and the world's leading oil consumer - the US - is posting record demand declines only predicted to continue in 2009.
To access the full Wall Street Journal article, click here.
Labels: economy, oil price, oil supply/demand
posted by Amanda Voss at 9:02 AM
0 comments
Friday, December 5, 2008
Oil & the Economy: Prices Continue to Fall
As the economic woes dragging oil prices down are not likely to rebound quickly, OPEC is indicating that they will cut production levels at the scheduled December 17 meeting.
To read more about falling oil prices, and to track 2008 NYMEX valuations of crude oil, click here.
Labels: economy, oil price, oil supply/demand
posted by Amanda Voss at 10:39 AM
0 comments
Thursday, December 4, 2008
China Eyes Fuel Price Reform, Gasoline Tax
Ten years ago, China first proposed a fuel tax to raise revenue for road and infrastructure maintenance. Officials cite the new fuel tax as a measure to encourage resource conservation.
The Chinese government hopes a reduction in fuel prices will stimulate economic activity.
To read the full story, click here.
Labels: energy policy, oil price, oil supply/demand
posted by Amanda Voss at 1:16 PM
0 comments
Thursday, November 13, 2008
International Energy Agency Releases World Energy Report
The International Energy Agency (IEA) released its 2008 World Energy Report. The Report stressed that world energy systems face a crossroads, and must combat patently unsustainable behaviors. Despite the recent economic downturns which have lessened demand on oil, the Report states that "Oil is the world’s vital source of energy and will remain so for many years to come, even under the most optimistic of assumptions about the pace of development
and deployment of alternative technology."
Given the world's reliance on oil, the IEA calls for radical and coordinated policy action from national and international authorities in order to both decarbonize energy sources while speeding up the transition to alternative energy forms. The IEA promoted increasing financial incentives and regulatory frameworks, and removing existing conventional energy subsidies, as viable policy paths. The Report stresses that any policy choice must support both energy-security andclimate-policy goals in an integrated way.
While the IEA holds that world oil has yet to reach a peak, the fact that oil field declines are accelerating should prompt government actors, despite the fall in oil prices, to continue aggressively investing in alternative energy paths.
To read the IEA World Energy Report, and access other IEA materials, click here.
Labels: energy policy, environment, oil price, oil supply
posted by Amanda Voss at 8:48 AM
0 comments
Wednesday, August 13, 2008
Americans Ditching the Car
Americans ditching the car
By Kenneth Musante and Aaron Smith, CNNMoney.com staff writers
NEW YORK (CNNMoney.com) -- Americans drove 9.6 billion fewer miles in May compared with a year earlier, according to a report Monday from the Federal Highway Administration.
"We have seen the longest decline in vehicular miles traveled since we started collecting this data," said U.S. Transportation Secretary Mary E. Peters in a conference call with reporters.
Peters said that in the first four months of this year, Americans traveled 40.5 billion miles less compared with the same period in 2007. She said the decline in usage means less tax revenue for highway system.
Many of these commuters are flocking to trains, buses and bikes, or telecommuting from home.
Rising gas prices are to blame for the driving decline, and the use of public transportation is soaring, said Virginia Miller, spokeswoman for the American Public Transit Association, a private trade group.
"It does seem that we are on track to beat last year's record [public transportation] ridership," she said, noting that the 2007 tally of 10.3 billion public transit trips was a 50-year high.
"That can really only be explained by the large increase in gas prices," said Miller.
Gasoline prices soared in May, rising for 24 consecutive days in the month, and breaking the psychologically significant $4-a-gallon barrier in many states, according to data from motorist group AAA.
The FHA said that driving in May experienced the third-largest monthly drop since the agency, a division of the U.S. Department of Transportation that manages the nation's highways and bridges, began collecting data 66 years ago. It was the largest drop for any May, a month that usually sees driving increase due to the Memorial Day holiday, the agency said. Three of those largest monthly declines have occurred since December, as unusually high fuel prices take a toll on drivers.
Trains, buses, bikes, telecommuting
Many of these drivers switched to public transportation. Usage jumped in the first three months of the year by 88 million trips from a year ago, for a total of 2.6 billion, according to the most recent figures available from the APTA.
Some of the most dramatic increases occurred in the light rail systems in Baltimore, Minneapolis and St. Louis, the commuter rails of Seattle and Harrisburg, Penn., the buses of San Antonio and Denver, and the subways and elevated rails of and Boston.
The Boston Globe reported Monday that the Massachusetts Bay Transportation Authority broke a ridership record of 375 million passengers in fiscal year 2008, which is 21 million more than the prior year.
Other commuters, like Eric Creese, a senior database administrator in Eagan, Minn., switched to muscle power for commuting. Creese, a former triathloner, said that high gas prices inspired him to "get back" into biking.
"I asked myself, 'Why drive 150 miles a week when I can save my car, my money and do something good for my body and environment,?'" said Creese, who said he has biked 1,000 miles to work since May and saved about $250 in gas.
Now Creese runs a Web site - GasFreeCommute.com - for bike commuters, with calculators to estimate calories burned and gasoline saved. His co-workers have logged their miles on his site, totaling 5,400 so far.
And if commuters really want to save money, they'll stay at home, said Chuck Wilsker, president and co-founder of The Telework Coalition. Wilsker estimates the nationwide tally of telecommuters to increase by 4 or 5 million workers this year, from an estimated 28 million at the start of 2008.
"If you want to quickly reduce your commuting costs by 20%, leave your car at home one day a week; if you want to reduce your costs by 40%, leave your car at home two days," said Wilsker, who telecommutes from his suburban Maryland home to Washington, D.C.
Not only does Wilsker save on gas, but he said he saves on automotive wear and tear, lunch and dry cleaning.
"You know what I'm wearing?" said Wilsker. "I'm wearing shorts, sandals and a tank top. I'm sitting here working from home. My dry cleaning bill is none."
Feds get squeezed on taxes
As high fuel costs led many to rely on other forms of transportation, such as mass transit, and to cut back their miles on the road this year, the reduced driving also sliced tax revenue that would normally go toward highway maintenance, the FHA said.
The federal tax on gas generates 18.4 cents per gallon of regular gas sold and 24.4 cents per gallon for diesel fuel, which gets pumped in to the federal Highway Trust Fund. Some states also add a tax of their own to fund various projects.
The FHA budget totaled $42.18 billion in fiscal year 2008. The Bush Administration has requested $40.14 billion for fiscal year 2009.
As Americans drive less, new ways are needed to fund the national road system, the highway agency said. Even though fewer drivers are using the highways, funding is still critical, party because of a backlog in highway projects.
Peters said she would unveil a new plan on Tuesday to "fundamentally reform our nation's transportation." She said much of the plan will focus on calculating a better cost-benefit analysis for maintaining the national highway system, as well as "weaning ourselves from the gas tax over time."
First Published: July 28, 2008: 9:45 AM EDT
Find this article at: http://money.cnn.com/2008/07/28/news/economy/driving/index.htm?cnn=yes
Labels: economy, oil price, oil supply/demand
posted by Jamie Lang at 12:01 PM
0 comments
Friday, May 30, 2008
Tipping Point for Consciousness is Economic
Columnist Jeffrey Ball attributes Europe's energy consumption patterns - where the average resident consumes less than half as much oil each year as the average American - to high energy taxes, rather than environmental awareness. These economic penalties make conservation rational and not just virtuous.
For the full text of this article, click here.
Labels: economy, energy sources, environment, oil price, oil supply/demand
posted by Amanda Voss at 8:51 AM
0 comments
Tuesday, May 20, 2008
Goldman Sachs Forecasts Continued Rise in Oil Prices
Amidst these concerns, Goldman Sachs issued a forecast that crude will reach $135 a barrel in the third quarter of 2008 and rise to $145 in the fourth quarter. While Saudi Arabia announced that they would increase production by 300,000 barrels a day (b/d) to 9.45 million b/d during June in order meet demand from US customers and President Bush, under pressure from a vote in Congress, halted additions to the US Strategic Petroleum Reserve, these measures are widely dismissed as too little to affect prices.
For the full article, click here.
Labels: economy, oil price, oil supply/demand
posted by Amanda Voss at 1:19 PM
0 comments
Monday, May 19, 2008
Michael Klare's New Energy Order
So begins Michael Klare's article chronicling the end of the energy world as we know it. Klare identifies intense competition over energy sources among economic powers, insufficiency of existing energy supplies, the delay in developing alternative energy sources, migration of wealth and power to energy-rich nations and a growing risk of conflict as factors shaping our new energy reality.
For the full text of this article, click here.
Labels: energy, energy policy, energy sources, oil price
posted by Amanda Voss at 4:10 PM
0 comments
Thursday, April 10, 2008
Oil Prices Hit Historic High
Additionally, the larger than anticipated fall in U.S. crude and gasoline inventories coupled with the declining value of the dollar spurred oil trading on to a record high.
For more, click here.
Labels: oil price, oil supply
posted by Amanda Voss at 8:49 AM
0 comments
Wednesday, March 26, 2008
Mileage at top of car buying list
Read the article.
posted by Jamie Lang at 2:54 PM
0 comments
Friday, March 7, 2008
Americans Start to Curb Their Thirst for Gasoline
Read the article.
posted by Jamie Lang at 12:00 PM
0 comments
Tuesday, February 12, 2008
Why Oil Price Increases Have Hurt Less
Read the blog entry here.
Labels: oil price
posted by Jamie Lang at 1:44 PM
0 comments
Thursday, January 31, 2008
Poll: Big Expectations for New President
Read the article here.
Labels: energy policy, oil price
posted by Jamie Lang at 5:55 AM
0 comments
Monday, January 7, 2008
Oil at $100 a Barrel? No Sweat
Read the article...
posted by Jamie Lang at 10:29 AM
0 comments
Wednesday, January 2, 2008
Oil kicks off year by hitting $100
Oil kicks off year by hitting $100
By Steve Hargreaves, CNNMoney.com staff writer
January 2 2008: 4:23 PM EST
NEW YORK (CNNMoney.com) -- Oil prices kicked off 2008 by hitting $100 a barrel for the first time Wednesday, with violence in oil-rich Nigeria, the prospect of more interest rate cuts, a halt in Mexican imports and talk of yet another drop in U.S. crude supplies contributing to the milestone.
U.S. crude for February delivery hit $100 a barrel on the New York Mercantile Exchange just after noon ET. It slipped to settle up $3.64 at $99.62, a new end-of-day record. The previous trading record was $99.29, set Nov. 20, while the previous settlement record was $98.18, set Nov. 23.
Oil prices ended 2007 by gaining nearly 60 percent for the year, the largest jump this decade.
"This market is really gonna fly," Ira Eckstein, president of Area International Trading Corp, said from the NYMEX floor.
The White House ruled out opening the Strategic Petroleum Reserve to temporarily relieve prices, and instead called for more domestic production.
In Nigeria, bands of armed men on Tuesday invaded Port Harcourt, the center of the oil industry, attacking two police stations and raiding the lobby of a major hotel, The Associated Press reported. Four policemen, three civilians and six attackers were killed. The Niger Delta Vigilante Movement claimed responsibility for the attack.
At 2.1 million barrels per day, Nigeria was the world's eighth-largest oil exporter in 2006, according to the U.S. Energy Information Agency.
A surprise fall in manufacturing activity sparked fears of yet another interest rate cut from the Federal Reserve. Interest rate cuts generally cause the dollar to fall - and oil prices to rise - as investors bail out of U.S. stocks and bonds and into commodities.
"The perception is that as the U.S. economy continues to weaken, the Fed will cut interest rates one more time," said Nauman Barakat, an energy trader at Macquarie Futures, the trading arm of Macquarie investment bank.
The Associated Press reported that several Mexican ports were closed due to rough weather.
PEMEX, the Mexican state oil company, could not be immediately reached for comment, but reports indicated the ports should be open by Thursday with minimal disruption to crude shipments.
At 1.7 million barrels per day, Mexico is the world's 10th largest exporter of crude and the second largest exporter to the United States behind Canada.
Analysts are expecting the latest government inventory report - set for release Thursday, to show a 1.8 million barrel decline in crude supplies, according to a Dow Jones poll. It would mark the seventh straight week U.S. crude stocks have dropped.
Oil has been on a tear over the last few months - rising from under $70 in August - as OPEC cuts from earlier this year began to eat into inventories in developed counties.
A falling dollar and reports pointing to tightening supplies as strong demand from developing countries swallows up new production gains have also pushed prices higher, as well as attracted a slew of investment money.
Crude has risen over five-fold since the start of 2002, largely for the same reasons.
Adjusted for inflation, oil is at or near the prices of the early 1980s. At that time, following the Iranian revolution and the outbreak of the Iran-Iraq war, oil traded in the high $30-a-barrel range, the equivalent of between $92 and around $103 a barrel in current prices, depending on the contract cited and the inflation calculation used.
Retail gasoline prices have not risen as fast as oil prices over the last few months, largely due to weak demand.
But with oil prices so high, gasoline is beginning to catch up. The national average price for a gallon of regular Wednesday was about $3.05 a gallon, a penny less than last month but about 30 percent higher than the same time last year, according to the motorist organization AAA.
"Unfortunately, we also continue to believe that new record high prices will be paid by consumers for gasoline in the year ahead," AAA spokesman Geoff Sundstrom said in a statement.
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