Washington wakes up to global warming

Maybe it's the weird winter weather, or the newly Democratic Congress. Maybe it's the news reports about starving polar bears, or the Oscar nomination for Al Gore's global warming cri de coeur, "An Inconvenient Truth." Whatever the reason, years of resistance to the reality of climate change are suddenly melting away like the soon-to-be-history snows of Kilimanjaro.

Now even George W. Bush says it's a problem. For years, the president and his supporters argued that not enough was known about global warming to do anything about it. But during last week's State of the Union address Bush finally referred to global warming as an established fact. "These technologies will help us be better stewards of the environment, and they will help us to confront the serious challenge of global climate change," Bush said in proposing a series of measures to reduce gasoline consumption by 20% in 10 years.

Environmentalists favor imposing a mandatory cap on greenhouse gas emissions tied to a market-based emissions trading system. Several of the global warming bills that have been introduced to the new Democrat-controlled Congress would do exactly that. House Speaker Nancy Pelosi has proposed creating a new global warming committee to consider the legislation. Many industry leaders have come to realize that such measures may be more an opportunity than a hindrance. The day before Bush's speech the chief executives of 10 corporations, including Alcoa Inc., BP America Inc., DuPont Co., Caterpillar Inc., General Electric Co. and Duke Energy Corp., called for mandatory limits on greenhouse gas emissions. "It must be mandatory, so there is no doubt about our actions," said Jim Rogers, chairman of Duke Energy. "The science of global warming is clear. We know enough to act now. We must act now."

Scientists have accumulated abundant evidence that global warming is upon us. They have documented a dramatic retreat of the Arctic sea in recent summers, accelerated melting on the Greenland and Antarctic ice caps and the virtual collapse in mountain glaciers around the globe. They have found plants and animals well poleward of their normal ranges. They have recorded temperature records in many locations and shifts in atmospheric and oceanic circulation. Globally, the planet is the warmest it has been in thousands of years, if not more.

Energy resources and our future

energybulletin.net :

Mr. BARTLETT of Maryland. Mr. Speaker, I thought that there was only one speech given in the last century that would become very famous in the few years just ahead of us, and that was the speech given on the 8th day of March in San Antonio, Texas, by M. King Hubbert in 1956, but I just discovered a few days ago a speech which I think may become just about as famous. This was a speech that was given by the father of the nuclear submarine, Hyman Rickover, and he gave this speech in May 1957. So soon we will reach the 50th anniversary of this very famous speech by the father of the nuclear submarine.

... he says early on in the speech that, "With high energy consumption goes a high standard of living. Thus the enormous fossil fuel energy which we in this country control feeds machines which make each of us master of an army of mechanical slaves ... machines therefore furnish every American industrial worker with energy equivalent to that of 244 men."

Then he goes on to say, "While at least 2,000 men push his automobile along the road," probably more than that for an SUV, "and his family is supplied with 33 faithful household helpers. Each locomotive engineer controls energy equivalent to that of 100,000 men; each jet pilot of 700,000 men. Truly," he says, "the humblest American enjoys the services of more slaves than were once owned by the richest nobles, and lives better than most ancient kings."

... let me give another little example to help you understand the incredible energy density in these fossil fuels and how much they have improved our life and how totally dependent we are on them. If a big man goes outside and is working really hard all day long doing physical work, I can get more work out of an electric motor for less than 25 cents' worth of electricity. That may be humbling to recognize that in terms of fossil fuel energy, our muscle power is worth less than 25 cents a day, but understanding that helps us to understand how totally dependent we have come to be on these fossil fuels.

Lockheed profit rises 28%

news.yahoo.com :

Lockheed Martin said fourth-quarter profit rose 28%, and raised its full-year profit forecast, as the world's No. 1 defense contractor posted strong sales of military gear and electronic systems. The company, which is taking advantage of record levels in U.S. defense spending, extra funding for operations in Iraq and more outsourcing of government technology projects, said profit increased to $729 million. Revenue rose 6% to $10.8 billion.

Shares of Lockheed, best known for its F-16 fighter jets and Patriot missiles, hit an all-time high earlier this week, and have risen 50% in the past 12 months. That makes it one of the leaders of the Standard & Poor's Aerospace and Defense index, which jumped 29% in that time. The S&P 500 Index is up about 14% over the past 12 months.

(2007-01-28 15:44:51 SGT) [Biz] Permalink

Ford posts record 2006 loss of $12.7 billion

news.yahoo.com :

Ford Motor Co posted a record loss of $12.7 billion for 2006, capping a troubled year that was the worst ever in its 103-year history. For the fourth quarter, the No. 2 U.S. automaker posted a loss of almost $5.8 billion on declining sales of its profitable trucks and charges for employee buyouts.

Ford is in the early stages of a turnaround plan that includes closing 16 plants and cutting up to 45,000 jobs in North America. Ford expects its U.S. market share will fall through the third quarter as it pulls back from sales to car rental companies and other fleet operators.

Ford cut North American production 22% in the fourth quarter and completed a buyout offer with unionized factory workers that cut 38,000 jobs. Its U.S. sales dropped 8% for the year.

Pfizer to cut 10000 jobs, close plants

news.yahoo.com :

Pfizer, struggling with fierce competition from makers of generic drugs, announced it will cut 10,000 jobs and close at least five facilities as part of an effort to slash its annual costs by up to $2 billion by the end of next year. The drastic measures by the world's largest drug maker highlight the challenges faced by many pharmaceutical companies recently. In addition to patent expirations, big drug companies are facing a business climate where insurers and other large purchasers of medicines are demanding lower prices and more evidence of products' worth.

It's the second time in two years the maker of Viagra and Lipitor has announced a major cost-reduction plan to combat the loss of about $14 billion in revenues from 2005 to 2007 due to expiring patents. The company is at risk of losing 41% of its sales to generic competition between 2010 and 2012, including the revenue from its top seller Lipitor, according to Prudential analyst Tim Anderson.

Pressure on Pfizer has intensified since safety issues forced it to halt development of the star drug in its pipeline, which was slated to replace Lipitor as it loses patent protection as early as 2010. Pfizer's own labs haven't been very productive and the company hasn't introduced a blockbuster since it discovered Viagra in 1998.

(2007-01-28 15:32:55 SGT) [Biz] Permalink

OPEC dumps $10.1 billion of treasuries as oil tumbles

bloomberg.com :

OPEC nations are unloading Treasuries at the fastest pace in more than three years as crude oil prices tumble, sending bond yields higher. Exporters including Indonesia, Saudi Arabia and Venezuela, sold 9.4%, or $10.1 billion, of their U.S. government debt securities in the three months ended in November. Oil producers have surpassed Asian central banks as the largest pool of global savings, accumulating an estimated $500 billion in 2006 alone, according to research by Pacific Investment Management Co.

OPEC members were selling Treasuries as crude prices declined 34% from a record high of $78.40 a barrel in July. They are reducing demand for U.S. government bonds at the same time as central banks from China to Romania say they want to cut holdings of dollar-denominated assets. For every $10 drop in the price of a barrel of oil, OPEC members adjust Treasury holdings by about $34 billion, according to estimates by Michael Pond, an interest-rate strategist in New York at Barclays Capital Inc.

Only Japan, China and the U.K. own more Treasuries than the 12-OPEC nations. China, the second-largest holder of U.S. debt, also is cutting back holdings. The central bank, which owned $346.5 billion of Treasuries as of November, trimmed purchases by 1.7% in the first 10 months of 2006, Treasury figures show. "The Chinese are slowing down their buying, so that leaves a big hole after the oil money," said Brenner at Hapoalim Securities.

(2007-01-28 15:27:46 SGT) [Biz] Permalink

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