Al Gore: we're at or near peak oil

energybulletin.net -> transcripts.cnn.com :

Larry King: Gas prices going to go down?

Al Gore: Well, I've seen a number of - over the last several decades I've seen this happen several times, where they spike and then they do come back down. But each time they go to a higher plateau. We almost certainly are at or near what they call peak oil, defined as having recovered a majority of the oil reserves at a certain price, affordability range. And so with the new pressure on the consumption side from China and India, if they come back down, they won't stay down long.

(2006-06-14 22:35:28 SGT) [Energy] Permalink

Malaysia PM : tussle for energy resources may spark global crisis

energybulletin.net -> thestar.com.my :

Malaysia's leader warned of a global crisis over the tussle for energy resources amid declining supply, and urged major oil producers and consumer nations to jointly develop new resources. Prime Minister Abdullah Ahmad Badawi said the period of cheap oil is "effectively over" as rising demand in Asia and the United States, bottlenecks in the supply chain, speculative trading and political uncertainties have raised prices and sparked concerns over energy security.

"The growing demand for depleting oil and gas resources is likely to trigger more intense competition to gain access and control over these resources," Abdullah said. "Following the current slim excess capacity situation faced by the industry, the tussle for energy resources could become more acute and may even develop into a global energy crisis."

With energy consumption in Asia projected to grow 3.5 percent a year through 2025, nearly three times higher than developed economies, Abdullah urged Asian consumer nations to invest in energy exploration and development in Asia to cut their dependence on Middle East oil. Asia holds huge potential for new discoveries as it is still vastly unexplored, he added.

(2006-06-14 22:32:39 SGT) [Energy] Permalink

Toyota to double hybrid output

iht.com :

Toyota Motor said that it would double the number of hybrid models it offers to 14 by the early years of the next decade as part of its effort to meet higher demand for fuel-efficient vehicles. The carmaker will also completely revamp its gasoline engine line-up by 2010 and introduce ethanol-fueled vehicles in Brazil by 2007.

Toyota's president, Katsuaki Watanabe, plans to eventually offer all the company's vehicles with hybrid gasoline-electric motors, as record fuel prices curb demand for conventional vehicles. General Motors and Ford Motor have suffered as consumers opt for hybrids and small cars over sport utility vehicles and pickup trucks.

With the introduction of the Prius in 1997, Toyota was the first automaker to release a hybrid. Japan's biggest carmaker is aiming to make as many as 400,000 gasoline-electric vehicles in 2006, 60 percent more than 2005's target. The company's hybrid models include Prius cars, Camry sedans, Highlander sport utility vehicles and Coaster buses.

(2006-06-14 22:28:20 SGT) [Tech] Permalink

The $2-trillion-dollar word

Here's the origin, perhaps, of the one word, "yet", that wiped out $2 trillion in the global stock markets over the past weeks.

federalreserve.gov :

The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 5 percent ... the Committee judges that some further policy firming may yet be needed to address inflation risks ...

So here it is/was. And here's a chart on investorsinsight.com, already getting outdated, of some of the aftermath on the global markets :

(2006-06-14 18:01:14 SGT) [Biz] Permalink

Global equity meltdown costs investors $2 trillion

news.yahoo.com :

The month-long slide in global stocks has wiped out at least $2 trillion in wealth, leaving investors few alternatives to preserve their holdings aside from bonds and money markets. Investors have been dumping stocks, commodities and emerging market assets on growing concerns that economic growth will suffer from higher inflation and interest rates. "It is essentially one consistent story worldwide, starting here in the U.S. There is a fear that the Fed's repeated commitment to limiting inflation demonstrates a willingness to risk economic activity," said Christopher Low, chief economist at FTN Financial in New York.

Stock markets have been punished since the U.S. Federal Reserve raised interest rates for 16th time in a row on May 10 and issued a hawkish statement saying it may need to do so again to fight inflation. Investors had expected some sign of an end to the tightening cycle. Global markets have suffered since, and strategists show little agreement about how deep and how long the sell-off will go.

The Dow Jones is off 8.2% since mid-May and has erased its gain for the year. The Nasdaq is off 12.75% from its high for the year on April 19 and the S&P500 Index has fallen by nearly 8% from its May peaks. On Tuesday, Tokyo's Nikkei booked its biggest one-day percentage fall in two years, tumbling 4.14%, wiping out more than 16.56 trillion yen ($145 billion) in market value. It was the biggest one-day point drop since immediately after the 9/11 attacks.

Given the drop-off markets, analysts said investors should now seek quality. Tom McManus, chief investment strategist with Banc of America Securities said investors should look at "steady companies with strong earnings and geographic diversification." These shares have been out of favor since about 1998, he added, and are the kind of companies Warren Buffett has been known to own - companies with top-quality balance sheets and diversified earnings streams.

The global sell-off, however, is not over and may only be just starting, according to JPMorgan Chase & Co.'s global equity strategist Abhijit Chakrabortti. "This is nothing compared with what we may see late in the summer and early October - once slower growth finally sinks in and expectations for higher benchmark rates, at 6% or even more, come out."

See also :

1. Global markets plunge on fed worries

(2006-06-14 08:06:17 SGT) [Biz] Permalink

Global markets plunge on fed worries

biz.yahoo.com :

Renewed worries about rising interest rates sent global markets tumbling, with the Japanese index plunging more than 4 percent in its biggest one-day loss in two years. European stocks followed, with mining and technology shares leading the declines. Concerns over increasing inflation, higher interest rates and slowing growth have been rattling world markets. Investors have been dumping stocks on worries that the U.S. Federal Reserve might raise interest rates again.

London's FTSE 100 index dropped 2.1 percent, the German DAX Xetra 30 index fell 1.8 percent and the French CAC-40 index slipped 2.2 percent. South Korean shares dropped 2.9 percent, while Hong Kong plunged 2.5 percent. In Bombay, Indian shares plummeted 4.5 percent to their lowest point this year.

In Tokyo, the Nikkei 225 index fell 614.41 points, or 4.14 percent, to finish at 14,218.60 points, the lowest close since Nov. 16, 2005. It was the biggest percentage loss in a day since May 10, 2004, and the biggest point drop since Sept. 12, 2001, after the terrorist attacks in the U.S.

(2006-06-14 00:38:39 SGT) [Biz] Permalink

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