Ship’s Pilot Is Charged in Oil Spill

From: http://www.nytimes.com/2007/11/15/us/15spill.html?fta=y
http://www.nytimes.com/2007/12/08/us/08spill.html

By: Carolyn Marshall

On November 14, the captain and the sailors of ship that caused the oil spill in California were refused to speak to federal investigators from National Transportation Safety Board. The spokesman, Peter Knudson said they already hired lawyers to speak and solve the problem for them. However, the pilot, John Cota told investigators that the radar and other electronic charting devices were not working shortly before the accident. But the transportation board said after it tested the radar and other electronic devices, it showed that all the equipment was working normally at that moment. The captain and crewmen did not test for drugs after the accident occurred.

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On December 7, the pilot has filed misconduct charges by an agency in California. The Board of Pilot Commissioners in California accused John J. Cota who piloted the ship at a dangerous speed even though the weather was bad. His careless action brought the disaster to the ocean. Approximately six hundreds birds are killed and thirty beaches are closed. The oil is continuing spread out through the area. Mr. Cota’s lawyer, John Meadows did not respond immediately after the charges announced. John Cota has fifteen days to respond and it is possible for him to lose his license.

Higher Oil Prices Widened U.S. Trade Deficit in October

From: http://www.nytimes.com/2007/12/13/business/13econ.html
By Reuters

The Commerce Department reported that United States trade deficit increased slightly in October, due to the higher price for imported oil.

The Labor Department reported that the increased oil costs also make the import prices 2.7% higher in November.

The monthly trade deficit grew 1.2% to $57.8 billion, since the average imported oil prices reached $72.49 per barrel.

During the first nine months of this year, the US overall trade deficit decreased more than 8% after approached $785.5 billion in 2006.

The stronger growth of exports helped the economy continued go up although other parts of the economy are dropped.

But still, even though the deficit is narrowed, but the bilateral trade gap with China is still growing up, reached the record $25.9 billion in October. China is definitely a big market and large demanding place for US to export different kinds of products.

No wonder oil is the one of the most important factors that affects economy condition, since most the countries do not produce as much oil as they use, they all depend on the imported oil. And country like Saudi Arab started decreased the number of exported oil, and the non stop war threats on Middle East region. I think, the oil prices will keep going up, and this the problem that not easy to deal with.

South Korea Cleans Up Big Oil Spill

South Korean volunteers work together to cleanup the oil spill.

From: http://www.nytimes.com/2007/12/10/world/asia/10skorea.html

By CHOE SANG-HUN

The oil spill happened on Friday morning when a collision occurred between a crane-carrying barge and the Hebei Spirit, a Hong Kong-registered supertanker. When they slammed, the vessel punched three holes into its hull; the tanker was at anchor and carrying 260,000 tons of crude oil. Although none of the ship was sinking, it spilled an estimated 10,500 tons of crude oil before the last of the three holes was plugged on Sunday.

It is an environmental disaster for local residents. Thousands of fishermen, soldiers, government personnel, local residents and volunteers were on Mallipo Beach to clean up the oil spill on Sunday. The Coast Guard vessels established oil fences into the ocean and use chemicals to break it up. The oil started to hit the beaches, including Mallipo where is near Taean County. Mallipo is home to rich wildlife, oysters, migrating birds and fish farm. Millions of tourists go there to enjoy the summer each year. Moon Hong-chol, a resident in Taean said, “Tourists are canceling resort reservations. I think we are finished.” He despaired for the area with such pollution. A lot of damage is occurring. When the oil sank to the sea bottom, it will cause serious harm to the organisms live there and the ecosystem will destroy. Even some of them might survive; they are not able to sell to the market for a long time.

The best thing is that there is no more spilling in the area. However, it will take at least two months for Korean people to complete the cleanup.

Oil-Rich Nations Use More Energy, Cutting Exports

A rapid rise in car ownership is a big factor that causes the oil consumption increase.

From:http://www.nytimes.com/2007/12/09/business/worldbusiness/09oil.html?th&emc=th By Clifford Krauss

Internal oil consumption by the oil-export countries grows sharply during these years. Many oil-rich countries are not only selling their oil, but also starting to develop their economics. They use the resources they have to build their nation. Many oil-exporting countries such as Mexico and Indonesia are growing fast that their need for energy within their nations increases. The exports of oil decline more than three percent in Saudi Arabia, Russia, Norway, Iran and the United Arab Emirates. They need the oil to power their new cars, houses, and businesses which will help the economics to grow. Some oil-exporting countries use price controls to provide cheap fuel for their people. Saudis and Iranians only pay thirty to fifty cents a gallon for gasoline. Some experts say, if it continues to happen, the world’s largest suppliers may provide less oil to other countries.

According to CIBC World Markets, the rising internal demand of oil in Russia, in Mexico, and in members of the Organization of the Petroleum Exporting Countries would reduce exports as much as 2.5 million barrels a day. This will lead to the raise in prices. It will hurt the oil market and the developing world.

OPEC Finds Price Range to Live With

Members of OPEC

From: http://www.nytimes.com/2007/12/06/business/worldbusiness/06opec.html?_r=1&oref=slogin By Jad Mouawad

When oil prices hit the milestone of $100 a barrel a few months ago, the Organization of the Petroleum Exporting Countries (OPEC) tried to expand the production and kept the prices down. While in January, barrels of oil were near $50 and falling, OPEC just cut supplies to increase the prices. OPEC realizes that oil-exporting countries play an important role on deciding how much oil to pump.

OPEC officials want to defend a price that will not hurt the world economy. Analysts say that the new target price is $70 to $80 a barrel. At Abu Dhabi, OPEC had a one-day meeting to discuss the problem they face. Many oil-producing countries want higher prices to develop their economies. They state that higher prices offer benefits to consumers such as energy efficiency. They wants to find a price low enough that will both benefit their nation’s economic and their own people. They reject to lift output of oil. When Saudi Arabia had a plan to output 500,000 barrels a day, members of OPEC just opposed it. Members of OPEC said that they would meet again in February to review the prices and supply levels.

An Airline Shrugs at Oil Prices

A Southwest Airline worker fueled the plane.

From: http://www.nytimes.com/2007/11/29/business/29hedge.html

By: Jeff Bailey

Southwest Airlines was losing its dominance in the domestic airline industry this early year. However, the situation is changing and it is becoming the winner of the competition.

Southwest Airlines is also hurt by the increasing fuel prices, but others hurt more severe than it. What helps it win? Will it be the quality of service or the efficiency of work? The main reason for Southwest’s increasing advantage over other competitors is that it loaded up years ago on hedges against higher fuel prices. While other big airlines are trading oil above $90 a barrel, Southwest is not. It owns a long-term contract that allows it to buy most of its fuel through 2009 by $51 a barrel.

Thomas W. Horton, a financial officer said, “At American Airlines, annual fuel costs rise eighty million for every dollar increase in a barrel of oil.” Some airline companies try to raise their fares since they do not want to bankruptcy. However, when fares are raised, fewer customers will come to buy their tickets. Southwest Airlines use the “EXTRA” money to upgrade their computer systems to improve productivity and airline reliability.