Money Matters - Simplified

warning: Creating default object from empty value in /home/themoney/public_html/modules/taxonomy/taxonomy.pages.inc on line 33.

Energy

U.S. oil draws back from record $99 highs

New York -- U.S. oil prices drew back from record highs of more than $99 a barrel Wednesday amid fears fuel supplies would tighten during the U.S. Northeast winter.

The U.S. dollar fell to a record low of $1.4855 against the euro on the foreign-exchange market before gaining strength. The weaker dollar increased oil's attractiveness to international buyers. Oil is a dollar-denominated commodity.

Light, sweet crude for January delivery rose 33 cents, or 0.34 percent, to $98.36 a barrel in midmorning trading on the New York Mercantile Exchange. It had been as high as $99.29 a barrel in electronic trading overnight, breaking the $98.62 intraday record set last week.

Natural gas gained 4 cents, or 0.53 percent, to $7.52 per 1,000 cubic feet.
Heating oil added 0.34 cents, or 1.3 percent, to $2.6935 a gallon.

Thanksgiving gasoline to cost $1.8B

Washington -- U.S. consumers will spend $1.8 billion on gasoline this year's U.S. Thanksgiving holiday, an economic consulting firm said Tuesday.

The figure is 39 percent, or nearly $520 million, more than during Thanksgiving 2006, due to gasoline price increases, Legg LLC said.

"High oil and gasoline prices will cost Americans more than half a billion dollars in travel this Thanksgiving holiday," director John Urbanchuk said.

"That is money that won't be spent at Wal-Mart or online as the holiday shopping season begins in earnest."

The average traveling family will spend $16.80 more on gasoline to travel to a family Thanksgiving dinner this year than last, Legg said.

U.S. consumers will also get pinched at the dinner table, with turkey retail prices up an average 12 percent from last year, "a reflection of the impact soaring oil and fuel costs are having on food items across the board," Legg said.

China's great dam in midst of eco-debate

Beijing -- The year-old Three Gorges Dam along the Yangtze River has spawned environmental problems such as water pollution and landslides, Chinese officials admitted.

The dam is the world's largest man-made producer of electricity from renewable energy, The New York Times reported Monday. Hydropower is central to one of China's green initiatives, a plan to expand renewable energy by 2020.

The Three Gorges Dam is at the center of an energy challenge. China's economy relies on electricity producers, such as coal-fired plants, that pollute the air. But dams, which are cleaner electricity producers, displaced millions of people and triggered environmental issues, the Times reported.

"It's really kind of a no-win situation," said Jonathan Sinton, China program manager at the International Energy Agency. "There are no ideal choices."

A Stunted Solar Stock

In a previous stage of solarmania, the shares of companies up and down the value chain seemed to press upward in unison. Now this borderline-bubbly market has seen a bit of bifurcation. While the clearest leaders bound higher, the wheels have begun to come off some of the shakier outfits.

Cap-and-trade policies could hurt Utah

SALT LAKE CITY -- Utah consumers could face billions in losses from a state or regional cap-and-trade policy approach to climate change, a survey said.

The Utah Farm Bureau reported if the state adopted greenhouse gas emission regulations similar to the stringent ones in California, it would cost the state billions of dollars in household incomes, eliminate thousands of jobs and restrict Utah's competitiveness with other states, the Western Business Roundtable said Monday in a news release.

Because Utah enjoys access to low-cost, coal-fired electric generation, cap-and-trade policies would affect the state more harshly than states such as California that don't have access to affordable coal supplies and may prosper under cap-and-trade policies, the study said.

Oil prices drop to less than $94 a barrel

New York -- Crude oil futures fell 32 cents to $93.77 a barrel in early electronic trading Thursday on the New York Mercantile Exchange.

Prices had rebounded nearly $3 to more than $94 a barrel Wednesday after the Organization of Petroleum Exporting Countries secretary-general said the cartel saw no need to increase oil production.
Most energy futures were down Thursday. Heating oil dropped 0.62 cents to $2.5672 a gallon. Reformulated gas was down 1.39 cents to $2.3565 a gallon. And, natural gas slipped 0.2 cents to $7.82 per million British thermal units.

AAA said the average U.S. retail price for regular unleaded gasoline at the pump was $3.112, up a fraction from Wednesday's $3.111.

Copyright 2007 by Un

Turkey seen as vital energy gateway

Istanbul, Turkey -- U.S. Energy Secretary Samuel Bodman Friday hailed Turkey as "an important energy gateway between the East and the West."

"It is undeniable that Turkey is evolving into a vital energy transit hub," he told the Turkish-U.S. Business Council in Istanbul.

Bodman spoke mostly about energy-related matters, the need for access, international cooperation, security, accelerated output and a need "to promote energy efficiency around the world. I, for one, remain convinced that an open and competitive market is the most efficient way to address questions of supply, demand and price," the energy secretary said.

He said nations need to "embark on a new era of global cooperation that drives a global diversification of energy supplies and energy suppliers. We need to accelerate the development of advanced technologies that will power our future."

China marks $774M for energy conservation

BEIJING -- The Chinese government Monday announced plans to spend $774 million on energy conservation projects to be launched this year, China Daily reported.

"The special funds will support 10 major energy-saving projects, such as reducing the use of petroleum and developing petroleum substitutes and green-lighting technology," Xie Zhenhua, vice-minister of National Development and Reform Commission, told the China Energy Saving and Emission Reduction Forum 2007, the report said.

"Incentives have been devised to encourage enterprises to save energy. Enterprises will receive financial aid according to the energy they can save while reducing emissions," he said.

The minister said the government has also set aside about $260 million more to compensate local governments and enterprises for eliminating excess production capacity.

OPEC conference convenes in Riyadh

RIYADH, Saudi Arabia -- Oil prices rose to $95 a barrel as OPEC oil producing nations convened a summit in Riyadh, Saudi Arabia, amid calls for greater production.

U.S. President George Bush called on leaders of OPEC's 13-member states to increase production as a way to stabilize prices and prevent further price hikes, KUNA, the Kuwait News Agency reported.

OPEC has been reluctant to increase production above its current 30.1 million barrels a day, KUNA said, attributing the current price of oil to the low value of the U.S. dollar against the euro and forecasts of cold weather in the United States.

"I don't think the market needs more oil," said Algerian Oil Minister Chakib Khalil, noting he expects oil prices to remain near present levels until next Spring.

Leaders Differ on Politicizing OPEC

At the OPEC leader’s third private meeting in Riyadh, Venezuelan President Hugo Chavez wanted the oil exporter group to become an active political agent. Venezuela's oil minister Venezuela Rafael Ramirez and his Iranian counterpart Gholamhossein Nozari, wanted OPEC to formally express its concern about the weakness of the dollar. However, Saudis, the de facto head of OPEC, vetoed the proposal.