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Oil Prices Are Now Flying South to Mexico

  • Jul. 30th, 2008 at 4:11 AM
Foxkeh Baseball

It's amazing what collective action will do.  After the bizarre performance of oil prices last month, the American people decided it was time to take action and they did. 

They started to drive less and kept their bottoms aways from their cars.  That deteriorated gasoline and diesel demand to such a point, that the oil companies had no other choice but to drop their gasoline prices.  "We're seeing some worries about demand destruction in oil, so I think that's creating some fear among investors and leading them to sell," said Tom Pawlicki, commodities analyst with MF Global Research in Chicago.

The U.S. Transportation Department said Monday that U.S. drivers logged 9.6 billion fewer vehicle miles in May—or 3.7 percent—compared to the same period last year, the biggest drop ever for the historically busy summer driving month.  And demand for oil in the U.S.—the world's thirstiest consumer— continues to fall, dropping by 891,000 barrels per day in May compared the same month a year ago, the Energy Information Administration said Monday.

Oil prices tumbled more than $2 a barrel yesterday, finishing at their lowest level in seven weeks as a stronger dollar and beliefs that record prices are eroding the world's thirst for energy sparked another dramatic sell-off.  The drop—which surpassed $4 a barrel at one point during the day—was a throwback to oil's nosedive over the past two weeks and outweighed supply concerns touched off by a militant attack Monday on two Nigerian crude oil  pipelines. It was oil's seventh decline in the last 10 sessions.

Prices at the pump are poised to dip even further, and could cost as much as 25 cents less by Labor Day, AAA spokesman Geoff Sundstrom said.  "People say typically prices shoot up like a rocket, but fall like a feather. But this time ... it looks like it's different," Sundstrom said. "The retail sector is interested in bringing these prices down as fast as they can to stimulate business in their convenience stores."

In another sign that high prices are curbing Americans' consumption for fuel, retail gas prices fell further below the $4-a-gallon mark. The average price of a regular gas fell 1.7 cents to $3.941, according to auto club AAA, the Information Service and Wright Express.

The declines accelerated after oil briefly dipped below $122, a key resistance level that triggered technical selling by computers programmed to dump oil contracts once prices fall under a certain threshold. "Once we break through $120, we could easily slide through to $100," said Darin Newsom, senior analyst at DTN in Omaha.</p>In the trading pits, oil continued on a two-week sell-off. Light, sweet crude for September delivery fell $2.54 to settle at $122.19 a barrel in the New York Mercantile Exchange. It was the lowest settlement price for a front-month contract since June 10.   Oil has now fallen $25.25 from its trading high of $147.27, reached July 11.  According to Oil-Price.Net, the price for crude oil as of this morning,---Wednesday July 30, 2008 at 03:59 a.m.---was $122.02 per barrel.

Many oil analysts say the market's momentum points to further declines. Is the energy bubble over?  I don't think so.  Oil has bounced back from big drops more than once in the march to fresh records over the past year.  Is the $4 per gallon nightmare almost over?  Probably not, but we can hope while we keep our feet away from the gas pedal.  Good Day?

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Visualization of the various routes through a portion of the Internet.


After Fidel Castro stepped down as the active head of Cuba’s government, his less charismatic brother, Raúl Castro, is loosening up some control of the country.

Cubans are now allowed to buy cell phones and personal computers as well as other luxury products like toasters and perfumes. These “capitalist items” were prohibited during the tight control period of Fidel Castro’s administration.

Another indication that Raúl Castro is slowly improving communication conditions in Cuba, is the recent agreement between Cuba and Venezuela to lay a new undersea fiber-optic cable to help provide high-speed Internet access to Cuban citizens by 2010.

The United States economic embargo against the island nation has forced the communist country to rely on slow and expensive satellite links for Internet connectivity. Even though it would cost less and be more efficient to lay a new cable between Cuba and the U.S., which are only 120 kilometers apart, Cuba is working with Venezuela to lay a 1,500-kilometer cable to get high-speed Internet connectivity.

The proposed cable, which is being deployed by CVG Telecom (Corporacion Venezolana de Guyana) and ETC (Empresa de Telecomunicaciones de Cuba), will also provide high-speed Internet access to Jamaica, Haiti, and Trinidad.

Cuba has traditionally kept a tight lid on Internet access in the country. In 2003, the government cracked down on ordinary Cuban citizens, who were accessing the Internet over the government’s painfully slow phone network.

Even though Raúl Castro is not moving very fast to improve living conditions in the communist island, the fact of the matter is, that some progress is being made. It would be interesting to see how far Raúl is willing to go after his older brother dies and a new president is elected in the United States at the end of the year.

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An American Icon Flies Away From Home

  • Jul. 14th, 2008 at 5:34 PM
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Photograph depict several Clydesdale horses pulling a hitch of Budweiser products in St. Louis, Mo.

Another loved American icon leaves home. This time it’s Anheuser-Busch Inc., the proud maker of Budweiser and Bud Light beer. Anheuser-Busch reportedly has agreed to be acquired by Belgian brewer InBev for $52 billion.

The deal being reported by The Wall Street Journal would create the world’s largest brewer and put the iconic American beer maker in the hands of the Belgian-based company behind Stella Artois and Beck’s beers. This deal brings to an end one of the most iconic names in American business.

InBev said it plans to use St. Louis as its North American headquarters, and that it will keep open all 12 of Anheuser-Busch’s North American breweries.

Few products are associated with America as much as Budweiser. Its Clydesdale horses are fixtures of Super Bowl ads, and even the label is red, white and blue, with an eagle swooping through the “A.”

The merger will bring to an end a name synonymous with St. Louis. From college buildings, to theme parks, to offices, to the stadium where the Cardinals play baseball, the Busch name is virtually everywhere in the Gateway City.

Eberhard Anheuser acquired the Bavarian Brewery in 1860 and renamed it E. Anheuser & Co. His son-in-law, Adolphus Busch, joined the company in 1864 and it was eventually renamed Anheuser-Busch.

The company survived Prohibition or Dry Law by selling products ranging from ice cream to root beer.

Take a look at the new Anheuser-Busch InBev, the world’s largest brewer that is being formed by the merger:

  • Combining the two companies will create the world’s third-largest consumer products company with a market capitalization of 71.6 billion euros, or about $114.2 billion. That’s behind only Procter & Gamble Co. and Nestle SA, InBev says.

  • The new company will be the world’s largest brewery by far, producing an estimated 460 million hectoliters (12.2 billion U.S. gallons) of beer annually. Its expected annual revenue is of €26.6 billion, or about $42.4 billion, which would put it ahead of its closest competitor SABMiller.

  • InBev’s strategy is to increase sales of Budweiser and Bud Light in overseas markets where the beers are currently niche products. InBev CEO Carlos Brito, who will head the new company, says Budweiser will become a global product along the lines of Coca-Cola or Pepsi. While Anheuser-Busch spends hundreds of millions of dollars annually, the company has focused mostly on its United States customers.

  • Anheuser-Busch also owns a 50 percent share in Grupo Modelo, Mexico’s leading brewer, and a 27 percent share in China brewer Tsingtao.

If this merger goes though, many Americans will be nostalgic for another beloved icon who headed to greener pastures mesmerized by the rules of globalization.






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The Exxon Valdez Ecological Tragedy

  • Jul. 12th, 2008 at 5:41 PM
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The Exxon Valdez caused the greatest oil spill in U.S. history and one of the largest world ecological disasters.

On March 24, 1989, the oil tanker Exxon Valdez, en route from Valdez, Alaska to Los Angeles, California, ran aground on Bligh Reef in Prince William Sound, Alaska.

The vessel was traveling outside normal shipping lanes in an attempt to avoid ice. Within six hours of the accident, the Exxon Valdez spilled approximately 10.9 million gallons of its 53 million gallon cargo of Prudhoe Bay crude oil. Eight of the eleven tanks on board were damaged. The oil would eventually impact over 1,200 miles of non-continuous coastline in Alaska, making the Exxon Valdez the largest oil spill to date in U.S. waters.

For the record, the oil spill ruined 1,200 miles of Alaskan shoreline and killed hundreds and thousands of animals which were indigenous to the region. This oil spill reflected what many people felt was a severe environmental insult to a relatively pristine, ecologically important area that was home to many species of wildlife endangered elsewhere. Even today, scientists continue to study the affected shorelines to understand how an ecosystem like Prince William Sound responds to, and recovers from, an incident like the Exxon Valdez oil spill.

Who was responsible for this calamity? The National Transportation Safety Board investigated the accident and determined five probable causes of the grounding:

  1. The third mate failed to properly maneuver the vessel, possibly due to fatigue and excessive workload.
  2. The master failed to provide a proper navigation watch, possibly due to impairment from alcohol.
  3. Exxon Shipping Company failed to supervise the master and provide a rested and sufficient crew for the Exxon Valdez.
  4. The U.S. Coast Guard failed to provide an effective vessel traffic system.
  5. Effective pilot and escort services were lacking.

In 1994 a jury in Anchorage, Alaska awarded the victims of the incident $5 billion in punitive damages. In 2006, a federal appeals court cut that verdict in half. Following the court ruling, Exxon Mobil Corp. made a series of court appeals and the amount to be paid in damages has since been drastically cut.

On June 25, 2008 the U.S. Supreme Court decided to cut the punitive damages for the 1989 Exxon Valdez disaster to $507.5 million. That translates to an average of $15,000 per victim. There are more than 33,000 victims of the worst oil spill in U.S. history.

The Supreme Court’s decision to reduce an amount equivalent to about four days worth of Exxon Mobil’s last quarter profits was hailed by the business community and decried by environmentalists and Alaskans. First-quarter profits at Exxon Mobil were $10.9 billion. The company’s 2007 profit was $40.7 billion.

“This turns America’s resources to the oil industry and only the U.S. Congress can do something about it,” said Jim Ayers, vice president of the advocacy group Oceana. “If the Congress doesn’t act, this means that America’s resources, including our marine life, are now in serious jeopardy and can be bought and destroyed for a mere pittance.”

Exxon Mobil maintained that many studies found the area healthy and thriving, countering findings of continuing damage. The company, which posted a $40.7 billion profit last year, had said punitive damages would be excessive punishment on top of the $3.4 billion in cleanup costs, compensatory payments and fines it already has paid.

Now, it turns out that $2.5 billion is too much for a company which made a profit of $40.7 billion in 2007 alone! Is it really so “unconstitutional” to ask Exxon Mobile to pay punitive damages which equates to a measly 6.1 percent of their annual profit? Is it cruel and unusual punishment to ask them to pay adequate punitive damages for a major accident which was their own fault? (Please look back at the probable causes of the accident.)

It’s really sad to witness how powerful oil conglomerates destroy the environment in many parts of the world to satisfy their insatiable greed and get away with murder.





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Big Oil is Investing in Solar Power

  • Jul. 10th, 2008 at 4:29 PM
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solar energy gifts, solar energy gift, solar energy merchandise, gifts for solar energy, gift for solar energy


I always knew that developed countries and large corporations had long-term planning strategies. In Business Administration they call it “Proactive Administration”. Instead of reacting to short term problems, they plan ahead trying to foresee upcoming threats.

At least one huge oil company is planning ahead for a period in time when oil will no longer be a necessary energy resource. Such is the case of Shell Corporation. Showa Shell Sekiyu, an affiliate of Anglo-Dutch oil giant Shell, plans to build one of the world’s largest solar panel plants with an investment of at least 100 billion yens (948 million dollars), a spokesman said last week.

The new plant would have a cumulative annual capacity to produce one gigawatt of power, equivalent to that of a regular-sized nuclear power reactor. “We hope that the solar panel businesses will be the second pillar of our earnings,” as soaring oil prices encourage energy saving, the Shell spokeman’s said.

Construction will begin in 2011, according to the company spokesman, who declined to be named. The location has not yet been decided. Possible locations for the new plant include Europe and the Middle East. The company will choose the location based on factors such as local labour, procurement and demand conditions, the spokesman said.

“In terms of demand for panels, Japan can be a strong candidate as the government is now pushing the solar cells business,” he added.

Showa came into the solar-power business last year, with its first 20-megawatt-capacity photovoltaic plant in the southern city of Miyazaki. In August, it announced plans to build a second factory, with a capacity to produce 60 megawatts.

Japanese Prime Minister Yasuo Fukuda has set a target to raise the use of solar cells 10-fold from present levels by 2020, with the government considering subsidies and tax breaks for households turning to solar power. Japan, which has virtually no natural energy resources of its own, aims to take the lead in environmentally friendly energy.

Japanese electronics giant Sharp Corporation said last month that it was teaming up with regional utility Kansai Electric Power Co. to build one of the biggest solar power facilities in the world in western Japan.

Solar radiation along with secondary solar resources such as wind, wave power, hydroelectricity and biomass account for over 99.9 percent of the available flow of renewable energy on Earth. The flows and stores of solar energy in the environment are vast in comparison to current human energy needs.

Panama is already taking advantage of its rich water resources with several hydroelectric power plants. Now it’s time to start investing in wind, solar and wave energy. We have plenty of those renewable resources in this part of the world. The sooner we start working on these mega projects, the sooner we’ll relieve ourselves from overpriced foreign oil dependency.







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Oil Prices Soar Into New Territory

  • Jul. 5th, 2008 at 3:37 PM
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Oil prices continue their journey into new territory and people everywhere are feeling the pinch in their pockets. Soaring fuel costs are taking some of the celebration out of this holiday weekend in the United States and also in Panama.

Oil prices headed into the busy Fourth of July break by racing past $145 a barrel for the first time Thursday. The story was no different at the gas pump, where the U.S. national average soared to within a whisker of $4.10 a gallon.

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I wonder what happens to those people whose blood is blue instead of red like the rest of us mortals.  The British royals just can't seem to behave properly and the Queen of England is getting a gray hair too many enduring the scandals surrounding the royal family.

This time Princess Eugenie of York is in the spotlight for irresponsible behavior. It was reported last Saturday, that she had been reprimanded by her exclusive school Marlborough College west of London, after being caught running around naked on college grounds under the midnight moonlight.

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The 90th Birthday of Nelson Mandela

  • Jun. 24th, 2008 at 6:10 AM
Strings

After being in prison for 26 years, Nelson Mandela has become a respected world leader on human rights and social issues.

Following his release from prison on February 11, 1990, his switch to a policy of reconciliation and negotiation helped lead the transition to multi-racial democracy in South Africa. Since the end of apartheid, he has been widely praised, even by former opponents. Mandela has received more than 100 awards over four decades, most notably the Nobel Peace Prize in 1993.

Mandela has frequently credited Mahatma Gandhi for being a major source of inspiration in his life, both for the philosophy of non-violence and for facing adversity with dignity.

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Quick Stats on a Barrel of Crude Oil

  • Jun. 23rd, 2008 at 6:16 AM
Omar Upegui R.

Ever since the gallon of gasoline started its flight to outer space, I've become paranoid about crude oil and its by-products. Every morning after washing my teeth and taking a shower, I dash over to my computer to find out the latest price of a barrel of crude oil. If I see a future increase, I know I will soon be bitten in my pocket. Ouch!
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Photobucket Attacked by Turkish Hackers

  • Jun. 19th, 2008 at 8:36 PM
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Yesterday I penned a post about broken links in Photobucket. At that time I had no idea what was going on; therefore, I requested an explanation at their forum.

I was surprised nobody from Photobucket came up front explaining to its users, the technical difficulties they were experiencing. There was only one solitary post on their forum.

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