Oil is a global commodity, so oil drilled in the US would not have to stay
here (Photo courtesy of the Minerals Management Service)
There’s been a lot of talk lately
about drilling for more oil off the American
coasts. Rebecca Williams reports that oil
is not required to go to the US markets:
Transcript
There’s been a lot of talk lately
about drilling for more oil off the American
coasts. Rebecca Williams reports that oil
is not required to go to the US markets:
Oil is a global commodity. Oil drilled in the US would not have to stay
here.
But most of it probably would.
Alan Good is with Morningstar. He analyzes the oil and gas industries.
“It would generally go straight to America because it would incur the lowest
transportation costs to get to the United States refineries.”
But Good says it would be at least a decade before that oil would come
online. And even then it’s not clear how much offshore drilling here would
reduce imports from the Middle East.
“It will help somewhat with imports but it’s not likely to make a huge dent.”
And he says it’ll probably have little effect on the price you pay at the pump
because world demand drives oil prices.
Since gas prices have dropped, some buyers are showing more interest in big vehicles. (Photo courtesy of the US Department of State)
When gas prices went up, car
companies cut their production plans for
making big vehicles, and made new plans
for more fuel efficient cars. The question
now is, with gas prices falling, will those
plans change again? As Dustin Dwyer
reports, the experts say probably not:
Transcript
When gas prices went up, car
companies cut their production plans for
making big vehicles, and made new plans
for more fuel efficient cars. The question
now is, with gas prices falling, will those
plans change again? As Dustin Dwyer
reports, the experts say probably not:
It’s not as easy to make money on a small car as it is on an SUV.
Small cars are cheaper, and they have lower profit margins. But as gas prices went up earlier this year, auto
executives insisted they’d find a way to make money on small vehicles.
Since gas prices have dropped though, some buyers are showing more interest in big vehicles.
Michael Robinet tracks the auto industry for the firm CSM Worldwide. He says the long term trend still
points to smaller vehicles.
“There may be a ratcheting down by some consumers in terms of the size of vehicles that they’re looking
for, irrespective of where fuel prices go in the future.”
Robinet says the bad economy is forcing many people to downsize. And the federal government has new
rules that mandate cleaner cars, so Robinet says getting smaller will be the big trend for years to come.
Author Elizabeth Royte encourages people to buy reusable water bottles instead of disposable. Just make sure your water bottle doesn't have BPA in it like this one! (Photo by Rebecca Williams)
We buy a lot of bottled water.
Globally, sales are more than 60-billion
dollars a year. Elizabeth Royte just wrote
a new book about the whole bottled water
phenomenon. It’s called ‘Bottlemania’.
The Environment Report’s Lester Graham
asked her how we got to where we’re carrying
a plastic bottle of water with us at all times:
Transcript
We buy a lot of bottled water.
Globally, sales are more than 60-billion
dollars a year. Elizabeth Royte just wrote
a new book about the whole bottled water
phenomenon. It’s called ‘Bottlemania’.
The Environment Report’s Lester Graham
asked her how we got to where we’re carrying
a plastic bottle of water with us at all times:
Elizabeth Royte: “Because of hundreds of millions of dollars spent on advertising telling us that
bottled water is pure and natural, will make us look better, and make us more attractive to the
opposite sex. If you’re smart, you’ll drink bottled water.”
Lester Graham: (laughs) “Okay, so at $1.39 a pint, it sounds like I’m paying for a lot of advertising
and not much water.”
Royte: (laughs) “Yeah. You’re paying for advertising, you’re paying for lawyers, you’re paying for
PR flacks, you’re paying for the right to extract water from communities where many people might
not. So there’s a lot of legal battles going on over it, so some of your money may be going toward
that. You’ll be doing your pocketbook and the environment a big favor by just getting a good
refillable, reusable, washable bottle and filling it up with good old tap water.”
Graham: “A lot of bottled water comes from public water supplies. Dasani and Aquafina, from
Coke and Pepsi, come from public water supplies, and, as you say in ‘Bottlemania’, ‘they filter the
bejesus out of it’. Other water comes from natural springs, or glaciers, or pure mountain rivers –
doesn’t that make it better?”
Royte: “Well, you’ve hit on it, because that’s what they’re trading on and sometimes they charge a
bit more from that. They do say it is a natural product – it’s coming from the Earth. Those other
brands, Aquafina and Dasani, do start from municipal water supplies, they’re very filtered. And if
you don’t want to have minerals in your water, then you should aim for one of those. Or, get a
reverse-osmosis filter and install it under your sink and you’ll get the same thing, more or less.”
Graham: “Okay, so I’ve been buying bottled water by the case, let’s say. You want me to stop
buying bottled water because there’s fuel used in it, there’s petroleum used in the plastic, I’m
paying more than I should have to for water. What should I do?”
Royte: “You shouldn’t buy bottled water for bad reasons. You should educate yourself. You
should find out what’s going on upstream, what’s going on in your watershed, what sort of industry,
agriculture, development. Read your consumer confidence report. Know the utility is found in the
water, then go a step further, and order up some of your own tests so you can find out what’s in the
pipes in your house. Because the utility is responsible for the quality of the water only until it gets
to your service lines.”
Graham: “But that’s a lot of work. It’s easier to buy a bottle of water.”
Royte: (laughs) “It’s easier in the short run, but it’s going to hurt you financially in the long run, and
its contributing to climate change. That’s the carbon footprint of the transportation, the making the
bottles, the landfills, the incinerator, the litter – it goes on and on and on. It is a little bit of money
up front. But it’s only up front. You’ll get that reusable bottle, you might have to get a filter, but
again, you’re going to save money buying this filter and maintaining it over relying only on bottled
water.”
Graham: “So, let’s say you go to lunch or go to meet someone for coffee and your friend comes in
with a plastic bottle of water they bought at a local store. Do you resist the urge to say, ‘hey, do
you know?’ or do you go ahead and let them have it. Let me hear your elevator speech to your
friend.”
Royte: (laughs) “I don’t have friends like that.” (laughs) “All my friends have refillable, reusable
bottles.” (laughs) “No, yeah, I sometimes do resist the urge. I do see people in their cars with
these bottles and I don’t say anything because I want to keep them as friends. But I try to model
good behavior, and they see me filling up my bottle, and I hope some of that rubs off on them.”
Elizabeth Royte is the
author of ‘Bottlemania: How Water Went On Sale
And Why We Bought It’. She spoke with Lester Graham.
Tire experts say that your tire pressure does, in fact, effect your gas mileage (Photo by Karen Kelly)
Earlier this year John McCain
and Barack Obama traded jabs over how
important tire pressure was in saving
gas. Lester Graham reports the experts
say it does make a difference:
Transcript
Earlier this year John McCain
and Barack Obama traded jabs over how
important tire pressure was in saving
gas. Lester Graham reports the experts
say it does make a difference:
Tim Bent is the Environmental Affairs Director at Firestone Tires. He says you ought to
check your tire pressure.
“Many people don’t maintain their tires well enough. They don’t check their tire
pressure frequently enough. And that does result, not only in lower gas mileage, but
premature tire wear which could be a safety issue as well.”
Bent says you should check tire pressure once a month. How much of a difference can
it make?
“A couple p.s.i could result in a few percentage points in fuel mileage.”
And at today’s prices, that can add up at the pump.
Fuel costs are skyrocketing. That means air carriers are cutting back on routes... and airports say they're losing revenue as a result. (Photo courtesy of Boeing)
The airport industry says high fuel prices are
threatening the stability of the entire system. Rebecca
Williams reports the industry wants its fuel needs to be
given top priority:
Transcript
The airport industry says high fuel prices are threatening the stability of the entire system. Rebecca Williams reports the industry wants its fuel needs to be given top priority:
Fuel is a big deal for the airline industry. The industry says for every dollar increase in the price of a barrel of oil – fuel costs go up 465 million dollars for the airlines.
So they’ve been cutting back… stopping service on more than 400 routes since March.
And for airports… that means losing their main source of revenue.
So they want the federal government to bail them out if fuel keeps going up.
Sean Broderick is with the American Association of Airport Executives.
“Petroleum based products are what make airplanes fly, period. And while industry and aircraft manufacturers are working on alternatives there is no equivalent to wind power.”
The group wants the government to allow airlines to borrow from the Strategic Petroleum Reserve… or be given subsidies for jet fuel.
Dan Macon, owner of Flying Mule Farm, and his mule, Frisbee (Photo by Tamara Keith)
With fuel prices through the roof,
many people are changing their routines to
save money. Tamara Keith brings
us this story of a farmer who’s abandoned
his tractor for something much more fuel
efficient:
Transcript
With fuel prices through the roof,
many people are changing their routines to
save money. Tamara Keith brings
us this story of a farmer who’s abandoned
his tractor for something much more fuel
efficient:
“Step up.” (kissing noises)
Meet Dan Macon and his mule Frisbee.
“Frisbee is a 7 year old mule and she was born here at our place. And she got
her name because I promised my oldest daughter, who was then 3, that if she got
up with me when the mule was born she could pick the name.”
“Step up. Good girl.”
On this day Macon and Frisbee are plowing to prepare a patch of land to plant
for the fall. Macon’s Flying Mule Farm is in the California foothill town of
Auburn. And he says it’s 100% animal powered.
“We have a sign now in our farmer’s market stall that says mule powered
vegetables. We use no pesticides, no synthetic fertilizers and no petroleum in
producing our vegetables. And we joke with them that we haven’t harmed any
tractors in producing their goodies.”
He sells his squash, kale, potatoes and other produce at two local farmer’s
markets. He also supplies restaurants in nearby resort towns.
At this point Macon is only farming a quarter of an acre, but hopes to expand
soon. He holds a pair of leather reins as he follows Frisbee in circles around
the small field. He directs her movements with vocal cues, kissing sounds and
pressure applied to the reins. And it seems to work, some of the time.
Tamara Keith: “Seems like it could be a matter of debate as to who’s in
charge.”
Dan Macon: (laughs) “Well as I tell people who have seen pictures of us
doing it, the mule’s the one with the long ears and the guy in the hat is the
jackass.”
Macon has been farming for 7 years and, until this year, he used a gas and
diesel powered tractors. He made the switch for philosophical reasons rather
than economic ones, but it’s penciling out financially too.
“And then diesel went to $5 a gallon and it seemed like a really good
decision.”
And Macon isn’t the only farmer doing this. Animal powered farming,
particularly with horses, is growing in popularity nationwide.
Lynn Miller is editor of the Small Farmer’s Journal. He says 400,000 people
are using animals to farm, and only half of them are Amish.
“I’m predicting within two to three years an additional quarter of a million
people will join the ranks of those who choose animal powered, not as a
throwback, not a return to a nostalgic past, but because it is a practical and
viable option for the future.”
Macon uses organic farming practices, but Frisbee kind of fertilizes the soil as
she goes – if you know what I mean. So, his produce can’t be certified
organic. Macon says he isn’t concerned about his lack of certification.
“I think knowing your farmer is far more important to food safety than any
regulatory program. And if you know your farmer, and your farmer stands
behind what he or she is producing for you, then you’re going to be insured of a
safe product, and that’s how our relationship works with our customers.”
There are other advantages to farming with a mule, says Macon. He’s not
much of a mechanic, so when his tractor broke down in the past he’d have to
call someone to repair it. Now if his source of traction has a problem, he can
just call his wife. She’s a large animal veterinarian.
An Amtrak train, Pere Maquette, in St. Joseph Michigan (Photo courtesy of Amtrak)
More people are riding the nation’s
passenger train service, Amtrak. It’s to the
point that Amtrak doesn’t have enough train
cars in some areas and the trains are sold out.
Lester Graham reports Amtrak has some other
issues to deal with before it can get on the
right track:
Transcript
More people are riding the nation’s
passenger train service, Amtrak. It’s to the
point that Amtrak doesn’t have enough train
cars in some areas and the trains are sold out.
Lester Graham reports Amtrak has some other
issues to deal with before it can get on the
right track:
Amtrak is seeing more passengers. Amtrak spokesman Marc Magliari says on some of
its busier routes, ridership is up double-digits.
“We’re seeing increases of 20% with no additional capacity. Those are just people who
are taking the train who hadn’t taken it before or who had changed their travel plans to on
a day when the train isn’t sold out, because we have a lot of days now where the train is
selling out.”
That’s because the train is handy – especially on those shorter trips, such as New York
to Washington, Los Angeles to San Diego, or Detroit to Chicago.
Last year Amtrak had more than 26-million passengers. This year it looks like it’ll get
about 27-million. Now, to put that into perspective, 761 million people flew on an
airplane in the U.S. last year.
But, Magliari says most of Amtrak’s competition isn’t the airlines.
“Most of our competition is the automobile and we believe the largest single reason for
some of the increases we’ve had this year is people trying to avoid the higher cost of
driving their own cars and trucks.”
And Amtrak would love to buy some more trains to serve those passengers. But the
railways are already crowded. The same reason Amtrak is getting more passengers –
higher fuel prices – is also the reason a lot of freight is being switched from trucks to
trains.
Jonathan Levine is an Urban and Regional Planning expert at the University of
Michigan. He says, for much of the nation, more freight train traffic is causing Amtrak
some problems.
“The scheduled service is really quite good if and when the trains follow the schedules.
But, those of us who’ve taken those trips know that the probability of having a delay is
rather significant. And it happens because of congestion on the rail lines.”
Amtrak is supposed to get top priority on the railroad. But the freight railroads own a lot
of the tracks. The dispatchers work them. They control the switches. And in this day
of just-in-time deliveries, it’s hard for those railroads to side-track a freight train for
Amtrak to speed by.
Mark Magliari with Amtrak says they’re working on that problem.
“About 70% of our operations—that’s about everything outside the East Coast—is on
somebody else’s railroad. And we’ve seen progress in a lot of these relationships with
the host railroads, making improvements in how they handle us.”
And judging from the increase in ridership, train passengers don’t see it as any different
than an airplane being delayed. And at least it’s a comfortable seat with plenty of room
to walk around, unlike a crowded plane sitting on the tarmac.
Mark Westerfield uses Amtrak. He also works for one of those freight train companies.
We caught up with him at Union Station in Chicago. He thinks the problems can be
worked out for Amtrak, they need to be worked out.
“It needs to be expanded. It needs to be increased. And, I think, I’m very optimistic
about the fate of Amtrak with the price of fuel, the price of gasoline, the congestion at
airports, the security at airports, the fact that a lot of the traveling public is getting older,
as I am, and less willing to be cramped into MD-80s and aging 737’s. I think it’s got a
great future. I really do. It’s gonna require a lot of capital investment.”
Getting that capital investment means getting more support from Congress and state
legislatures. Some members of Congress make a lot of noise about funding Amtrak.
They make is sound as though it’s the only government supported transportation
system out there. The fact is, airports get tons of money from the government. With
rising fuel prices and more ridership on Amtrak, government money for the train might
get a little better traction with Congress in the future.
For The Environment Report, this is Lester Graham.
The price of gasoline and diesel fuel from
foreign oil is making people think about other ways
to fill up. Lester Graham reports the coal industry
is pushing the idea of making diesel out of coal
from the US:
Transcript
The price of gasoline and diesel fuel from
foreign oil is making people think about other ways
to fill up. Lester Graham reports the coal industry
is pushing the idea of making diesel out of coal
from the US:
The technology to make diesel fuel out of coal has been around for a while. Germany
used it in World War II.
Recently, researchers at Rutgers and the University of North Carolina developed a
more efficient way to convert coal to diesel.
So, what’s stopping coal-to-diesel? Money and risk.
Coal to diesel is feasible – if the price of oil is above $50 a barrel. Oil is around $143 a
barrel right now. So, the money is good.
Phil Gonet is president of the Illinois Coal Association. He says now investors want
some government assistance.
“That guarantees that investors will at least get their money back if OPEC starts to play
around with the world price of oil.”
And make diesel from foreign oil cheaper than diesel from domestic coal.
For The Environment Report, this is Lester Graham.
High gas prices are cited as one cause for SUV and RV factories closing (Photo by Ben VanWagoner)
High gas prices are changing what people
buy in car showrooms. Gas guzzlers just aren’t
selling as well anymore and it’s affecting US
manufacturers. Mark Brush reports:
Transcript
High gas prices are changing what people
buy in car showrooms. Gas guzzlers just aren’t
selling as well anymore and it’s affecting US
manufacturers. Mark Brush reports:
GM announced it’s closing four of its truck and SUV plants. And Winnebago Industries
recently announced they’re closing their biggest RV manufacturing plant. High fuel
prices are helping to drive the closings.
For the last fifteen years, sales of SUVs and light trucks have beat the competition from
smaller cars. But that’s changed in the last couple of months. Now, smaller cars are
selling better.
Charles Territo is with the Alliance for Automobile Manufactures. He says the recent
hike in gas prices have hit a nerve.
“I think for years people have been trying figure out what that pressure point is. When
consumers will actually change their driving habits and change their behavior. I think
we’re finding now that we’ve probably reached that price.”
Federal researchers say that people are driving a lot less. The Federal Highway
Administration reports that the number of miles traveled for the month of March was one
the sharpest drops on record.
Congress is investigating whether investors are inflating the prices of food and gas for profit (Photo courtesy of the USDA)
The price of food is going up and some
members of Congress want to know why. The Senate
recently held hearings on whether investors in
the commodities market are artificially inflating
prices. Mark Brush has more:
Transcript
The price of food is going up and some
members of Congress want to know why. The Senate
recently held hearings on whether investors in
the commodities market are artificially inflating
prices. Mark Brush has more:
Big investors are moving money out of stocks and other investments and into
commodities.
In the last five years, the amount of money in commodities markets has
increased 20 fold. And there’s a theory that these investors are driving up food and gas
prices.
Timothy Wood says that’s not so. He’s the editor of ResourceInvestor.com.
Instead, he
says you’re paying more mostly because the dollar is worth a lot less these days. He also
says Congressional mandates to turn corn into fuel are driving up corn prices.
“When corn is so much a part of the American food chain, and the global food chain, it is
just a complete and utter farce that this has gone and been legislated.”
Wood says Congress should let the markets sort themselves out. But some members of
Congress wonder if big investors in commodities are getting rich at the expense of
families.
Oil is a global commodity, so oil drilled in the US would not have to stay here (Photo courtesy of the Minerals Management Service)
