Disintegration of iconic Big Three US automakers accelerates

In a city struggling to deal with the slow disintegration of the iconic General Motors and Ford, Chrysler was the shining star whose bold designs could beat out the Asian competition. That star fell to earth last week with the announcement of major production cuts amid a sharp drop in demand for the trucks, minivans and sport utility vehicles that accounted for 71% of its unit sales. The consequences will be felt across the United States where an estimated 13.3 million jobs are dependent upon the automotive industry.

More than 60,000 high-paying union jobs at GM and Ford will be lost as the two giants undergo massive restructuring plans in the face of a steady loss of market share that accelerated as consumers shied away from the highly profitable but gasoline guzzling trucks and SUVs that the Big Three relied upon. Ford had its ratings cut deeper into junk status by both Moody's and S&P last week and is now considered to be equally or perhaps even more at risk than General Motors.

Clinton effort reaps pledges of $7.3 billion in global aid

nytimes.com :

A Sheraton hotel in Midtown Manhattan was the scene of feverish matchmaking over the past three days during Bill Clinton's second annual gathering on global problems. Only those who promised to do something concrete about poverty, disease, conflict or climate change were invited. The entry fee for aspiring philanthropists was $15,000. Hundreds lined up for the privilege.

Mr. Clinton triumphantly announced the results of this year's Clinton Global Initiative from a circular stage in a hushed ballroom filled with more than 1,000 people. "As of now, we have 215 commitments from two times that many people and the value, my staff swears, is $7.3 billion," he said. Sir Richard Branson, the British entrepreneur, had promised to invest an estimated $3 billion of his personal profits from airlines and a rail company over the next decade in renewable energy sources. Barbra Streisand, the liberal singer and actress, donated $1 million and Rupert Murdoch, the conservative media mogul, gave $500,000.

The speaker who brought down the house was Al Gore, who delivered an extemporaneous riff on global warming and the "planetary emergency." "I have been extremely impressed at the role played by visionary C.E.O.'s who have provided important leadership in helping to organize the response for the climate crisis," he said. "And I commend them. But I think it's time for all of us to recognize that it is government that sets the rules within which business competes. And the rules that are currently in play now send the wrong signals."

Costs may derail oil sands projects

peakoil.com -> globeinvestor.com :

High costs will likely derail some projects in the oil sands, according to Murray Edwards, the reclusive vice-chairman of Canadian Natural Resources, one of many firms working in the overheated Fort McMurray region of Alberta. It was the strongest public declaration yet from a senior industry executive that some projects may not go ahead as planned. For projects on the drawing board - which is a long list including major ones from Petro-Canada, Total and Exxon Mobil - the challenge is huge, Mr. Edwards said. "These projects, long term, need prices higher than $50 [U.S. a barrel]," Mr. Edwards told reporters.

While Mr. Edwards was skeptical that the industry could deliver on heady forecasts for production gains, he was bullish about the prices of crude oil and natural gas. He said supply-and-demand fundamentals for both commodities indicate oil could stay higher than $60 a barrel through the end of the decade and natural gas could average at least $8 for 1,000 cubic feet. The world is in an economic era "without precedent," Mr. Edwards said, pointing to high commodity prices, low interest rates and strong global growth.

Cost escalation in the oil sands has been and remains extreme. In just the past 5 years, Mr. Edwards said the price to build a project has doubled. The trend remains intact, given Shell Canada's declaration in July that a planned expansion of its existing oil sands project could cost $12.8-billion, up 50% from an estimate made just one year ago.