Rising Fuel Costs, Causes Rising EVERYTHING Costs

Companies concerned

Hey folks,

As we keep talking about in the Tuesday "From the Energy Front" Segment, the rising Energy costs will cause EVERYTHING to go up. The Cost of EVERYTHING will increase to match, or offset if you will, the rising cost to:

Power the Plant
Run the Machines
Transport the Product
SELL the Product

So that $5.00 item becomes $7.00. The higher the cost of Energy, Gas, and Diesel, goes, so does the cost of that Item. $7.00 then $8.00, you get the point. Remember that piece about the bitter cold, and repeated heavy Snowstorms, the Obama caused Skyrocketing prices for Heating Oil, that are likely to be the highest on record? Who is the hardest hit? The Poor and the Elderly. Those on fixed incomes.

We are not the only ones concerned about this. According to the Financial Times - Companies concerned about rising fuel costs By Ed Crooks in New York Published: February 25 2011 19:24 Last updated: February 25 2011 19:24

Companies around the world have begun to warn about the impact of higher fuel costs on their businesses, raising fears about profits and inflation.

Companies in the most energy-intensive sectors, such as airlines, have been the first to raise the alarm, but analysts warned that a sustained period of high oil prices would have a widespread effect on earnings.

On Friday, Thai Airways, the state-controlled carrier, said that it would have to review its revenue targets to assess the impact of the rise in oil prices.

International Airlines Group, the owner of British Airways and Iberia, said it was “likely” that fares would rise again, following fuel surcharges already imposed, if the volatility in oil markets continued.

US airlines have already been raising fares. At the start of the year, analysts at Bank of America Merrill Lynch calculated that US airlines could still achieve the same operating margins this year as in 2010, even if oil prices averaged about $102 per barrel. US crude briefly exceeded that level on Thursday.

However, the Airlines are not the only ones worried.

FedEx, the transport and delivery company, said last week that its third-quarter earnings, to be reported on March 17, were likely to be lower than previously indicated because of higher fuel costs and bad weather.

The car industry is also likely to be feel the impact of higher oil prices, particularly in the US.

Now WHY is that? Because we are not Drilling. Everyone else is. Foreign Companies are buying up US Companies rights and assets. All for a Political Stunt by Obama.

General Motors and Ford, the US car manufacturers, reported fourth-quarter earnings hit by higher costs for materials, including metals and rubber, and now face a further blow.

The US companies remain heavily dependent on pick-up trucks and SUVs, by far their most profitable vehicles, leaving them exposed when fuel costs rise and consumers look for more economical vehicles.

Daniel Akerson, GM’s chief executive, said on Thursday: “Energy is going to be more expensive, so we’ve got to prepare for that and it’s come a little bit earlier maybe than the industry or the economy  . . . expected or wanted, so we’re going to have to react.”

And HERE it is folks. That unspoken business secret, actually SPOKEN. Get this.

Not every company is yet being squeezed by the higher oil price. Jürgen Hambrecht, chief executive of BASF, the world’s largest chemicals company by market capitalisation, said on Thursday the group had been able to pass on most of the price hikes to its customers in the past year, and it was expecting to do so again.

The Truth is folks, Businesses and Corporations do not pay tax. YOU do. You want their goods and services, YOU will pay. I'll give Jürgen Hambrecht an A for Honesty. "How do you feel about the rising Energy costs?" Hambrecht, "We don't care. We just pass on most of the price hikes to its Customers. So who cares?" However, there is a limit. Someone may pay $7.00 for something that was $5.00. However, they are NOT going to pay $10.00. There is a limit as to what a product or service is worth. THAT is what they are afraid of.

Dow Chemical of the US similarly talked about “pricing momentum”, and only a “slight, and temporary” squeeze on margins, when it reported full-year results earlier this month.

However, the damping effect of higher fuel prices on economic growth in oil-importing countries is likely to mean that the impact will in time be felt across most industries.

Martin Regalia, chief economist at the US Chamber of Commerce, the business lobby group, said high oil prices had a “double whammy” effect.

“They raise costs for all companies, particularly those that use a lot of oil to move stuff around in trucks or aircraft, and they slow down growth because they take spending power away from consumers. And both of those factors work together to reduce profitability.”

Additional reporting by Bernard Simon in Toronto, Daniel Schäfer in Frankfurt and Jeremy Lemer in New York

Folks, there is no reason for any of this. NONE. I just saw an article that, let me see if I can find it, yeah, here it is, it's from CNS NEWS - New Study Shows That Offshore Drilling Could Make Alaska the Eighth Largest Oil Producer in the World – Ahead of Libya and Nigeria

(CNSNews.com) – A new study says drilling on Alaska’s Outer Continental Shelf (OCS) could make Alaska the eighth largest oil resource province in the world -- ahead of Nigeria, Libya, Russia and Norway.

But we are not Drilling. Why? There can be only one real reason. Obama and Crew are preventing us from doing so, INTENTIONALY, bringing about what we have here today. It's being done ON PURPOSE. The answer is so simple folks. It really is.
Peter

Sources:
Financial Times - Companies concerned about rising fuel costs
CNS NEWS - New Study Shows That Offshore Drilling Could Make Alaska the Eighth Largest Oil Producer in the World – Ahead of Libya and Nigeria

Liberals Upset At Pace, But KNOW Obama Is Lying

What he did not say is he would lift the Moratorium.

Hey folks,

So Obama goes to the Camber of Commerce to attempt to make nice. Even with a joke or two about "Being a good Neighbor" and "Bringing a Fruit Cake." He thought he was saying all the right things. He even shocked and maddened some Liberals.

Now he said a lot of things that on the surface may SOUND good, but if you scratch the surface, you see more of the same old Obama. "Share the Wealth. "Spread the Wealth around." ETC. He wants to eliminate the Incentives to Borrow, in order to reduce taxes. ETC. Smoke and mirrors folks. If you had to pay cash for your house, would you? Business works in similar ways. They need to borrow and grow. But that's not what I want to talk about.

The one thing that he said that has send some Liberals into the stratosphere, with the Environmentalist in tow, he will not enforce the ridiculous Green House Gas Regulations. AKA, the Clean Air Act. He said that he understands how burdensome this can be to business. Now is not the time.

Well, well, well. THIS did not sit well with the Left at all. So there are many that are attempting to reassure them, that Obama cares. In the process, they are also admitting that he is LYING. Here is an example. According to Salon.com - Proof Obama is not caving on regulation: The EPA

Never mind healthcare or bank reform. The prospect that President Obama might gut environmental protection while eliminating unnecessary "burdensome" regulations is where some liberals get most nervous. The president put very little effort into getting any climate legislation passed, leading environmentalists to wonder: Does he actually care?

On the surface, the concern is justified. House Republicans have made the crusade to cripple the EPA's ability to enforce limits on greenhouse gas emissions a top priority. Last week, Rep. Fred Upton, R-Mich., the chairman of the House Energy and Commerce Committee, and Sen. James Inhofe, R-Okla., announced plans to introduce legislation that would explicitly prohibit the EPA from considering "greenhouse gases" a pollutant under the terms of the Clean Air Act. Sen. Jay Rockefeller, a West Virginian Democrat, recently reintroduced a bill that would delay any EPA greenhouse gas limit enforcement for two years.

In response, the White House has been quiet. The president did not mention the words "climate change" in either his State of the Union speech or his address to the Chamber of Commerce. Quite the opposite: His only reference to the EPA at the Chamber was to cite a decision by the agency to delay, for three years, the setting of any limits for greenhouse gases generated from the burning of biomass, as an example of how accommodating his administration was willing to be on the regulatory front.

But FRET not my Liberal Environmentalist. This is just the way the World Works. He HAS to say these things. He no longer controls the House, with controls the Purse Strings of all the things Obama wants to do. But FRET not my Tree Hugging Friends, HE IS LYING.

I'm guessing Obama included that line because he or his advisers thought it would go over well with Chamber conservatives. But by pointing out an instance of EPA inaction, the president carefully avoided dwelling on the fact that the agency has already taken the much more significant step of beginning the process of regulating greenhouse gas emissions at power plants, oil refineries, and other major sources of greenhouse gas emissions. As of Jan. 2, the EPA is requiring that the operators of new, or substantially modified, facilities must get permits that will limit their future greenhouse gas emissions and require upgraded technology.

In other words, it's already happening. The pace is excruciatingly slow, and there are legal challenges that must be parried every every step of the way, and both states and plant operators have a lot of leeway in how to deal with the proposed changes, but the machinery of greenhouse gas regulation is proceeding. And this is entirely due to the fact that the current occupant of the White House is a Democrat who appointed a strong director -- Lisa Jackson -- to run the EPA.

The rest blames Bush, Blah, blah, blah. But as we see all the time from Obama, what he says and what he does, not always the same. {Smile}

What he COULD do to jump start the Economy? END THIS POINTLESS and STRICTLY POLITICAL Drilling Moratorium. Create Tens of Thousands Jobs in the industry, MILLIONS of Jobs related to Oil. Drivers, Mini Marts, Factory Workers, {Make Up, ETC} ETC. BILLIONS in Revenue. As Jack Gerard, President of API recently pointed out..

Earnings are also good news for services provided by the government: oil and natural gas companies provide the U.S. Treasury, on average, with well over $95 million each day through taxes, royalties, rents and other fees that can then be used for such things as schools, roads and parks.

Can you name me another business that pays $95 million each day? Not to mention, yes, I know some hate this, but the WORLD RUNS ON OIL AND NATURAL GAS! So if Obama was serious about jump starting the Economy, and setting the minds at easy of Business, lifting the Moratorium, get out of the way, and LET Oil and Natural Gas do their thing. What he SHOULD do, is get out of the way of ALL business and let AMERICA bring AMERICA back. But I really just do not think he gets it.
Peter.

Sources:
Salon.com - Proof Obama is not caving on regulation: The EPA
Energy Tomorrow - The Economics of Oil Company Earnings

Obama TO Judges "Screw You"

You might say Obama to EVERYONE, "Screw You" 156,000 new unemployed?

Hey folks,

Told you these Idiot had the mentality of Three Year Olds. "Mommy Mommy, we want to do this." Mommy: No. "WAH!!! Daddy, Daddy, we want to do this." Daddy, No. "Wah Wah!!! Well, we are going to do it any way."

First, they said No Drilling. A Judge said, No. If they were about to put over 156,000 people out of work, "Skyrocket" energy costs for all, and make the country LESS Safe and more dependant on Foreign companies, they needed to PROVE that there was a real reason to do so. Basically, you do not ground all Planes, and ban all Airlines, just because ONE went down.

Obama said, "Screw you, we will appeal." New Judge said, No. If they were about to put over 156,000 people out of work, "Skyrocket" energy costs for all, and make the country LESS Safe and more dependant on Foreign companies, they needed to PROVE that there was a real reason to do so.

Obama said "Screw YOU TOO. We'll just do another one."

WASHINGTON -- Rebuffed twice by the courts, the Obama administration is taking another crack at a moratorium on deep-water drilling, stressing new evidence of safety concerns and no longer basing the moratorium on water depth. But those who challenge the latest ban question whether it complies with a judge's ruling tossing out the first one.

The new order does not appear to deviate much from the original moratorium, as it still targets deep-water drilling operators but defines them in a different way.

AND they want the other decision thrown out completely.

The Justice Department said Monday it will file a motion with the U.S. District Court seeking a dismissal of that case, because the old moratorium is no longer operative, making the challenge moot. The department also will ask the appeals court to set aside Feldman's order of last month.

Now why would they do that? What is the point? AH, because they do not want THIS.

Carl Rosenblum, a lawyer for the plaintiffs who sued to block the moratorium, said they are reviewing the new moratorium and "we have substantial concerns about its consistency with Judge Feldman's order." He wouldn't elaborate or say if they planned to challenge it in court.

They better. EVERYONE should Sue Obama over this. The Oil Companies. 156,000 people that loose their jobs. The STATES that collect royalties. YOU, who's energy costs WILL Skyrocket.

These Idiots are most definitely guilty of "Criminal Stupidity." That's being stupid in a Smart Zone. ONE accident of it's kind in 60 years. ONE. 3000 plus Rigs out there Drilling. 60 years. ONE Accident? Obama: "SHUT IT ALL DOWN!!!! We need to know the dangers of Off Shore Drilling!!!"

Some Rigs have already left. Others are about to. Why? They can not afford to sit idle. So why six months? Who will sit around doing nothing for six months? No one. They will all go somewhere else, and Drill FOR someone else. There will be no one left when Obama decides to lift the Ban and then he can say "Hey, it's not my fault. I lifted the Ban. Those big bad Oil companies have abandoned you. Uh, yeah. Blame them, not me. If that doesn't work for ya, uh, blame Bush."

Here is some TRUE information that you may not know. Jack Gerard, President of API {American Petroleum Institute} tells us this.

The 33 now idle deepwater drilling rigs in the Gulf have passed thorough government inspections and are ready to be put back to work. The industry has been working extremely hard on all fronts to enhance safety-and will continue to do so. And the government has already imposed significant, additional safety requirements that are supported by the industry. A resumption of drilling would proceed only under the most intense and vigilant oversight.

80 percent of the oil and 45 percent of the natural gas produced in the Gulf come from deepwater areas. The 20 most prolific producing blocks in the Gulf are located in deepwater. Deepwater is indispensable to a strong and secure energy future, and the moratorium makes that future uncertain.

It is that uncertainty that is making some leave. Again, they are not going to sit around at about a cost of a million dollars a day, doing NOTHING. They will go somewhere else. 33 Rigs have passed the Regime's inspection, yet they can STILL do nothing.

The one thing that there is NO uncertainty about is this. Everyone agrees. Even the Obama Regime. Billions will be lost in revenue. 150,000 plus Jobs will be lost. YOUR Energy costs, including Gas for your vehicles, and the price to heat your home, have electric, and the cost of EVERYTHING in the Stores, WILL skyrocket beyond somes ability to pay. There is no doubt about that. It WILL happen under this Regime's Leadership. Under Obama's Drilling Ban.

It's time to spank these Brats. YOU need to put them over your knee in November. Problem is though, unlike Obamacare, Cap and Tax, and other insane agenda items, this is not one that can be simply undone by reversal. Problem is, once these companies move on, it may take YEARS to bring them back, and get the prices back down. Once they are gone, they may be gone for good. Which seems to be Obama's goal to begin with. Someone needs to stop this, and stop it NOW.
Peter

Sources:
The Washington Post - Gov't hopes new drilling moratorium can survive
API - Jack Gerard, President, New Offshore Drilling Moratorium Issued