California Gov. Jerry Brown eases regulations on refiners, permitting the sale of winter-grade gasoline to boost supplies and hopefully provide price relief from soaring pump prices that now average $4.655/gal. Also yesterday, Sen. Dianne Feinstein asks the Federal Trade Commission to investigate the causes of the spike. [View news story]
With the backwardation in the market, nobody is storing anything in California. If refiners were caught with unsaleable inventory they would slowly recharge it to the crude still.
California Gov. Jerry Brown eases regulations on refiners, permitting the sale of winter-grade gasoline to boost supplies and hopefully provide price relief from soaring pump prices that now average $4.655/gal. Also yesterday, Sen. Dianne Feinstein asks the Federal Trade Commission to investigate the causes of the spike. [View news story]
Price rose because there were (and probably still are) more buyers than sellers . . . particularly at the lower levels. Simple as that . . .
McDonald's (MCD -1.0%) CEO Jim Skinner just wrapped up his last interview as the company's CEO with a celebratory appearance on Squawk Box. The outgoing exec says the company will remain focused on same-store sales growth, while he ever-so-subtly seems to de-emphasize China and emerging markets. He also quite naturally opposes Mayor Bloomberg's campaign in NYC to reign in soda intake, with his support of free choice for consumers. [View news story]
With the right strategy, NYC restrictions could be a bennie. Suppose McDonald's sells just one size beverage . . . say 10 ounces . . . and offers free refills. But let's say a 10 oz soda costs you $2.50 or $3.00. Alternatively you can move the soda machine back behind the counter . . . again offer only 10 oz drinks . . . charge $1.75 and $0.75 for refills.
Put the law of unintended consequences back on our side for once.
McDonald's (MCD +0.4%) starts its biggest recruiting plan ever in China as it looks to hire 70K workers and open 220-225 new stores in the nation. While the company's food prices in China remain elevated, workers will earn in some cases less than 10 yuan ($1.58) an hour. [View news story]
Perhaps we should expect the administration to announce the airlift of 20,000 American teenagers to China as a "job training" program aimed at reducing unemployment.
The Sierra Club says it will block Dominion Resources' (D +0.6%) plan to export 1B cubic feet per day of Marcellus Shale liquefied natural gas through the company's Cove Point, Md. terminal. A previous legal settlement gives Sierra Club the ability to reject any significant changes to the purpose or footprint of the existing terminal. (earnings) [View news story]
As a Virginia resident and Dominion customer I would like to thank those at Dominion for not wasting my money (as a customer, shareholder and taxpayer) on wind power and thereby affording us the growing benefits of cheap natural gas generated electricity. I hope they've made similar decisions regarding solar.
As to the Sierra Club's actions on Cove Point, given the caveat they seem to have won in a previous settlement, it would be remiss of them not to use its existence to leverage something from their position. One can only hope that both they and Dominion find common ground quickly.
McDonald's (MCD) same store sales rise 7.5% in February. Breakdown by region: +11.1% in U.S., +4% in Europe, +2.4% in Asia/South Pacific, Middle East, Africa. The company mentions Japan and the timing of the Chinese New Year as influencing the apparently weak Asia number. Shares -2.9% premarket. (PR) [View news story]
Warren Buffett, Chris Christie, And The National Debt [View article]
How can one top or build on the eloquence of those who have commented already. Just about the only "nuggets" in here are citings of a Buffet interview (source?) that charitable giving is more efficient than government spending and that the entire Buffet fortune wouldn't make a dent in a deficit growing by the minute. (And shouldn't it be Bubble Headed Gibberish?)
Today's reported decline in crude oil stocks of 10.6M barrels is the largest weekly draw since February 2001, notes ZH (date here). Crude continues higher, but a bit off the spike following the news, with one barrel of WTI costing $98.78. USO +1.5%. Exxon (XOM +1.2%) is among the oil firms getting a boost. [View news story]
Uhhhhh . . . inventory draws for LIFO and ad valorem taxes in TX and LA. Probably nothing to get hot about.
Shares of Exxon Mobil (XOM -0.9%) are down after the oil giant boosted its cost estimate for its LNG project in Papau, New Guinea by 5% to $15.7B, after an adverse move in the Australian dollar bumped up costs. [View news story]
A classic example of Exxon management's fear of derivatives leading to a failure to hedge (lock in) a commodity risk (currency variation). Neanderthals.
While the focus on trucks and a gas corridor is noted, one would think that school bus fleets would be a natural (sorry) fit as well. Especially given the pressure school district budgets are under. Any fleet operating in a defined geographic area is a natural.
Abandon U.S. Ethanol in Favor of Natural Gas [View article]
Let's keep methanol out of the environment, okay? It's a contact poison, infinitely miscible in water, and burns with an invisible flame. Imagine a methanol containing fuel spill/tank leakage of some magnitude reaching either open water or ground water. Or a tanker fire or tank farm fire near a residential neighborhood. Nope. If you want to do something with methanol go the extra mile and synthesize it into a safer hydrocarbon. Mobil did that in New Zealand using zeolite catalysts (MTG - Methanol to Gasoline) in the 70's. Wasn't economic then . . . doubt it is now.
One effect of the Obama energy speech: Commitments to alt-fuel vehicles in the federal fleet and expanded oil exploration may be fueling gains in natgas stocks, including engine maker Westport Innovations (WPRT +13.1%), Clean Energy Fuels (CLNE +9.2%) and Fuel Systems Solutions (FSYS +7%). [View news story]
Well, the speech and the fact that the economics of fueling diesel fleets on nat gas instead of distillate have become overwhelming with the almost simultaneous rise in oil and decline in nat gas over the last 2 years. Given the budgetary issues facing most, if not all local government entities I can well imagine transportation managers having these guys on the speed dial.
The ratio of cash to total company assets is nearing historic highs, a pileup of cash on corporate America’s balance sheet that could end up hurting the recovery, some economists say. But they could be hurting themselves the most, sending a message to investors that they’re not interested in growth. (top 10 cash hoarders) [View news story]
There was a wonderful op-ed piece in the WSJ within the last two months that debunked the whole cash on the balance sheet issue by teaching anyone interested Accounting 101. Other commenters have touched on some of these points. I'd post the link if I could find it but the (expletive deleted) WSJ search engine stinks.
Transport Companies with massive Truck Fleets switching to Natural Gas [View instapost]
One would suspect that school busses would be another natural fit for CNG conversions, especially given the (now) compelling economics vs distillate and the squeeze on school budgets.
California Gov. Jerry Brown eases regulations on refiners, permitting the sale of winter-grade gasoline to boost supplies and hopefully provide price relief from soaring pump prices that now average $4.655/gal. Also yesterday, Sen. Dianne Feinstein asks the Federal Trade Commission to investigate the causes of the spike. [View news story]
California Gov. Jerry Brown eases regulations on refiners, permitting the sale of winter-grade gasoline to boost supplies and hopefully provide price relief from soaring pump prices that now average $4.655/gal. Also yesterday, Sen. Dianne Feinstein asks the Federal Trade Commission to investigate the causes of the spike. [View news story]
Supervalu: 8% Dividend Yield And Super Value For Investors [View article]
McDonald's (MCD -1.0%) CEO Jim Skinner just wrapped up his last interview as the company's CEO with a celebratory appearance on Squawk Box. The outgoing exec says the company will remain focused on same-store sales growth, while he ever-so-subtly seems to de-emphasize China and emerging markets. He also quite naturally opposes Mayor Bloomberg's campaign in NYC to reign in soda intake, with his support of free choice for consumers. [View news story]
Put the law of unintended consequences back on our side for once.
McDonald's (MCD +0.4%) starts its biggest recruiting plan ever in China as it looks to hire 70K workers and open 220-225 new stores in the nation. While the company's food prices in China remain elevated, workers will earn in some cases less than 10 yuan ($1.58) an hour. [View news story]
The Sierra Club says it will block Dominion Resources' (D +0.6%) plan to export 1B cubic feet per day of Marcellus Shale liquefied natural gas through the company's Cove Point, Md. terminal. A previous legal settlement gives Sierra Club the ability to reject any significant changes to the purpose or footprint of the existing terminal. (earnings) [View news story]
As to the Sierra Club's actions on Cove Point, given the caveat they seem to have won in a previous settlement, it would be remiss of them not to use its existence to leverage something from their position. One can only hope that both they and Dominion find common ground quickly.
McDonald's (MCD) same store sales rise 7.5% in February. Breakdown by region: +11.1% in U.S., +4% in Europe, +2.4% in Asia/South Pacific, Middle East, Africa. The company mentions Japan and the timing of the Chinese New Year as influencing the apparently weak Asia number. Shares -2.9% premarket. (PR) [View news story]
Warren Buffett, Chris Christie, And The National Debt [View article]
Today's reported decline in crude oil stocks of 10.6M barrels is the largest weekly draw since February 2001, notes ZH (date here). Crude continues higher, but a bit off the spike following the news, with one barrel of WTI costing $98.78. USO +1.5%. Exxon (XOM +1.2%) is among the oil firms getting a boost. [View news story]
Shares of Exxon Mobil (XOM -0.9%) are down after the oil giant boosted its cost estimate for its LNG project in Papau, New Guinea by 5% to $15.7B, after an adverse move in the Australian dollar bumped up costs. [View news story]
Clean Energy Fuels Posts Mixed Results, Shares Remain Bullish [View article]
Abandon U.S. Ethanol in Favor of Natural Gas [View article]
One effect of the Obama energy speech: Commitments to alt-fuel vehicles in the federal fleet and expanded oil exploration may be fueling gains in natgas stocks, including engine maker Westport Innovations (WPRT +13.1%), Clean Energy Fuels (CLNE +9.2%) and Fuel Systems Solutions (FSYS +7%). [View news story]
The ratio of cash to total company assets is nearing historic highs, a pileup of cash on corporate America’s balance sheet that could end up hurting the recovery, some economists say. But they could be hurting themselves the most, sending a message to investors that they’re not interested in growth. (top 10 cash hoarders) [View news story]
Transport Companies with massive Truck Fleets switching to Natural Gas [View instapost]