Gas Prices Unlikely to Hit $5 a Gallon in 2012

COMMENTARY | Every year at this time, the media dutifully starts to speculate whether gasoline prices will hit record highs in the summer. Last year, it was about Libya and the Arab Spring. The year before that was about possible inflation caused by the Federal Reserve's quantitative easing.

Fortunately, average gas prices never spiked to the $5 a gallon mark that some had feared. Are we facing a similar situation this year?

One of the reasons gas prices in the previous three years failed to match the media's lofty predictions was because the economy was still in a malaise state. Demand was so weak in 2009, 2010 and 2011 that even very high oil prices due to speculation and Middle East turmoil could not muster a bigger jump in gas prices. If gas prices are to hit an all-time high in 2012, there would have to be a dramatic increase in demand.

While recent economic data have been positive, they are coming off a very low base. Take the Fed's growth forecast for 2012. The economy is expected to grow 2.2 percent to 2.7 percent. These numbers are decent compared to those of Europe, but they are not robust enough to result in significantly higher energy demand.

Moreover, the Fed is also forecasting the unemployment rate will stay above 8 percent through this year. This means Americans are unlikely to consume more gasoline.

The main driver behind speculations of record-high gas prices has been the increased tensions between Iran and the West. Iran, one of the world's biggest oil producers, recently announced it was halting some oil exports to Europe.

Although concerns over the nuclear standoff are valid, the predicted impact on gas prices is probably overstated. There is no perfect correlation between oil prices and gas prices. Even if oil prices were to hit record highs, it does not mean average gas prices in the U.S. will reach the historic milestone of $5 a gallon.

There is also a political angle. In this election year, the prospect of record gas prices is Washington's worst nightmare. Consequently, it is conceivable President Barack Obama would open the U.S. Strategic Petroleum Reserve to help ease gas prices. It is also conceivable Congress would pass legislation such as a gas tax holiday to lower prices.

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Gas Prices and the Keystone Pipeline - Today's Qs for O's WH - 2/21/2012

TAPPER: I was wondering if you have any reaction - Republicans are - I know you haven't said that you'll be tapping the Strategic Petroleum Reserve, but you have said it's on the table. The president did it last summer. Republicans have legislation that would tie the president's hands - would make him have to OK the Keystone pipeline in order for him to be able to tap the Strategic Petroleum Reserve. And I'm wondering if you have a reaction to that.

CARNEY: Well, I'll make a couple of points on that. In terms of Keystone, as you all know, the history here is pretty clear. And the fact is, is that because Republicans decided to play politics with Keystone, their action essentially forced the administration to deny the permit process because they insisted on a timeframe within which it was impossible to appropriately approve the pipeline.

There wasn't even an alternate route proposed yet through Nebraska, an alternate that was deemed necessary based on the request of many in Nebraska, including the Republican governor. So the fact that the process, you know, had ended the way it did in terms of that permit request is wholly the responsibility of the Republicans who insisted on playing politics with the payroll tax cut extension back at the end of last year.

You know, on - going forward, let's just talk a little bit about oil prices. There are no magic solutions to rising oil prices and the - and the pain that Americans feel at the pump. This is a - there - the fact is, is that the president is very aware that - of the impact that the global price of oil has on families, and this is not something that this administration discovered or rediscovers every spring as some politicians do.

As you're aware, Jake, oil production in the United States has increased every year that this president has been in office, and right now -

TAPPER: That's not at all because of his actions, right? Isn't some of that because of previous administrations?

CARNEY: Well, it is - it is now a combination of both. And the fact is, is that American oil production is at its highest now than it has been in eight years. Moreover - and this goes to our actions - over the past three years, we've opened millions of new acres for oil and gas exploration. As part of our focus on continuing to expand possible responsible domestic production, last month the president directed his administration to open more than 75 percent of our potential offshore oil and gas reserves - resources, including a 38-million-acre lease sale on the Gulf of Mexico scheduled for this summer, which could produce up to 1 billion barrels of oil and 4 trillion cubic feet of natural gas.

And then, also - let's step back - when you look at this as a long-term issue and not magic solutions that politicians propose in the spring and forget about come the summer and fall, this president put into place historic fuel efficiency standards that will more than - nearly double the efficiency of the vehicles we drive over the next decade. And that alone will save American families $1.7 trillion at the pump and cut oil consumption by 12 million barrels.

The president is also committed to - I mean, he takes an all or - all-of-the-above approach.

We've approved new nuclear reactor development, first time, I believe, in 30 years, we are focused on increasing domestic oil and gas production, but we're also focused on developing alternative sources of fuel. Whether they're biofuels or wind and solar, alternative energy is another means by which we can reduce our reliance on foreign oil, reduce our vulnerability because of global oil - changes in the global price of oil. That's the kind of approach we have to take to ensure our economic future.

TAPPER: Do you have a reaction that Republicans are tying - trying to tie -

CARNEY: I don't have reaction to a specific proposed piece of legislation or even any legislation that's been submitted now. I would simply point you to the actions that this president is taking to increase domestic oil production, increase domestic gas production, reduce our reliance on foreign sources of energy, and suggest to you that that's the right approach and that this record - the record the president has here is - - speaks for itself.

TAPPER: How can you say you have an all-of-the-above approach if the president turned down the Keystone pipeline? And you blame the Republicans for making a political -

CARNEY: But the president didn't turn down the Keystone pipeline. There was a process in place, with long precedent, run out of the State Department because of the issue of a pipeline crossing an international boundary, that required an amount of time for proper review after an alternate route was deemed necessary through Nebraska at the request of the Republican governor of Nebraska and other stakeholders in Nebraska and the region that needed to take it's - that needed to play out, to be done appropriately. You can't review and approve a pipeline the route for which doesn't even exist.

The Republicans were the ones, unfortunately, who decided - because they were looking for scalps, I guess, or looking for wins in a situation where somehow they found themselves on the wrong side of cutting taxes for 160 million Americans last December - they decided to play politics with this decision and attach it to the payroll tax cut extension.

That essentially - even though it had been made clear by the State Department that doing so would make it impossible for them to conduct the review responsibly, they did it anyway, knowing what the result would be.

TAPPER: I don't want to relitigate the whole thing, but Republicans say that the president was playing politics first by delaying a decision until after the election.

CARNEY: Well, I appreciate that, and we have been through this. But I would note that the delay was the result of a decision made to honor the concerns of those in Nebraska, including the Republican governor, who felt that the proposed pipeline associated with the permit request ran through a portion of Nebraska that would threaten the aquifer, threaten the water supply in Nebraska. The decision was then made to delay approval - delay the process to allow for examination of alternate routes. That's the process should work. It is unfortunate that the process was artificially halted because of the decision to play politics with the payroll tax cut extension.

-Jake Tapper

Also Read

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Rising Gas Prices as a Political Football

In 2012, Yahoo! News will tell the nation’s story through the experiences and views of real Americans like you. Watch the first Remake America video »

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Carney Says No 'Magic Solutions' on Oil Prices, Amused at Gingrich Attack -- VIDEO

In 2012, Yahoo! News will tell the nation’s story through the experiences and views of real Americans like you. Watch the first Remake America video »

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White House seeks to deflect blame over rising gas prices

WASHINGTON (Reuters) - Under fire from Republicans over rising gasoline prices, the White House on Tuesday highlighted factors beyond its control for gains in global oil markets, as it sought to deflect blame over a potentially damaging election-year issue.

Gas prices, which rose 7 cents a gallon last week, could unsettle economic confidence at a time when the U.S. recovery appears to be gathering pace, hurting President Barack Obama as voters review his track record ahead of the November 6 ballot.

Obama, a Democrat, acknowledged the risk posed by higher gas prices as he welcomed congressional approval of a payroll tax cut extension. The White House later argued that it was unfair to single out the administration over prices at the pump.

"There are no magic solutions to rising oil prices," said White House press secretary Jay Carney. "The rising gas prices clearly the effect of a variety of factors on the global price of oil," he told reporters, citing geopolitical unrest and rapid growth in India and China.

Oil prices touched a nine-month high on Tuesday, partly because Asian consumers moved to cut oil imports from Iran following Western sanctions, and this has already had an impact on forecasts across America.

Gasoline prices advanced last week to $3.59 a gallon from around $3.32 at the start of the year, a rise that helped push up U.S. consumer inflation in January, denting household spending power.

Republicans see gas prices as a way to attack Obama's energy policies as they campaign to deny him a second White House term.

They argue the president sees rising prices as a way to alter U.S. energy consumption, while taking aim at his decision last month to reject TranCanada Corp's proposed Keystone XL crude oil pipeline.

"The current unrest in the Middle East reminds us how dependent we are on resources from a volatile region - and how misguided the president's decision to block the Keystone pipeline from Canada really was," said Brendan Buck, spokesman for House of Representatives Speaker John Boehner, the top Republican in Congress.

Pushing back, the White House noted that U.S. domestic energy production was at an eight-year high and said the president's energy policies were helping to reduce the country's dependence on imported foreign oil.

But Obama himself drew attention to the gas price issue. Welcoming congressional approval of an extension of the payroll tax cut, he said earlier on Tuesday the $40 per paycheck that this break was worth would help offset "the rising cost of gas - which is on a lot of people's minds right now."

"The president is very aware of the impact that the global price of oil has on families," Carney told reporters. "The fact that this is happening only underscores the need ... to have a comprehensive energy policy," Carney said.

(Reporting By Laura Macinnis and Alister Bull; Editing by Sandra Maler and Eric Walsh)

View the original article here

Gas Prices and the Keystone Pipeline - Today's Qs for O's WH - 2/21/2012

TAPPER: I was wondering if you have any reaction - Republicans are - I know you haven't said that you'll be tapping the Strategic Petroleum Reserve, but you have said it's on the table. The president did it last summer. Republicans have legislation that would tie the president's hands - would make him have to OK the Keystone pipeline in order for him to be able to tap the Strategic Petroleum Reserve. And I'm wondering if you have a reaction to that.

CARNEY: Well, I'll make a couple of points on that. In terms of Keystone, as you all know, the history here is pretty clear. And the fact is, is that because Republicans decided to play politics with Keystone, their action essentially forced the administration to deny the permit process because they insisted on a timeframe within which it was impossible to appropriately approve the pipeline.

There wasn't even an alternate route proposed yet through Nebraska, an alternate that was deemed necessary based on the request of many in Nebraska, including the Republican governor. So the fact that the process, you know, had ended the way it did in terms of that permit request is wholly the responsibility of the Republicans who insisted on playing politics with the payroll tax cut extension back at the end of last year.

You know, on - going forward, let's just talk a little bit about oil prices. There are no magic solutions to rising oil prices and the - and the pain that Americans feel at the pump. This is a - there - the fact is, is that the president is very aware that - of the impact that the global price of oil has on families, and this is not something that this administration discovered or rediscovers every spring as some politicians do.

As you're aware, Jake, oil production in the United States has increased every year that this president has been in office, and right now -

TAPPER: That's not at all because of his actions, right? Isn't some of that because of previous administrations?

CARNEY: Well, it is - it is now a combination of both. And the fact is, is that American oil production is at its highest now than it has been in eight years. Moreover - and this goes to our actions - over the past three years, we've opened millions of new acres for oil and gas exploration. As part of our focus on continuing to expand possible responsible domestic production, last month the president directed his administration to open more than 75 percent of our potential offshore oil and gas reserves - resources, including a 38-million-acre lease sale on the Gulf of Mexico scheduled for this summer, which could produce up to 1 billion barrels of oil and 4 trillion cubic feet of natural gas.

And then, also - let's step back - when you look at this as a long-term issue and not magic solutions that politicians propose in the spring and forget about come the summer and fall, this president put into place historic fuel efficiency standards that will more than - nearly double the efficiency of the vehicles we drive over the next decade. And that alone will save American families $1.7 trillion at the pump and cut oil consumption by 12 million barrels.

The president is also committed to - I mean, he takes an all or - all-of-the-above approach.

We've approved new nuclear reactor development, first time, I believe, in 30 years, we are focused on increasing domestic oil and gas production, but we're also focused on developing alternative sources of fuel. Whether they're biofuels or wind and solar, alternative energy is another means by which we can reduce our reliance on foreign oil, reduce our vulnerability because of global oil - changes in the global price of oil. That's the kind of approach we have to take to ensure our economic future.

TAPPER: Do you have a reaction that Republicans are tying - trying to tie -

CARNEY: I don't have reaction to a specific proposed piece of legislation or even any legislation that's been submitted now. I would simply point you to the actions that this president is taking to increase domestic oil production, increase domestic gas production, reduce our reliance on foreign sources of energy, and suggest to you that that's the right approach and that this record - the record the president has here is - - speaks for itself.

TAPPER: How can you say you have an all-of-the-above approach if the president turned down the Keystone pipeline? And you blame the Republicans for making a political -

CARNEY: But the president didn't turn down the Keystone pipeline. There was a process in place, with long precedent, run out of the State Department because of the issue of a pipeline crossing an international boundary, that required an amount of time for proper review after an alternate route was deemed necessary through Nebraska at the request of the Republican governor of Nebraska and other stakeholders in Nebraska and the region that needed to take it's - that needed to play out, to be done appropriately. You can't review and approve a pipeline the route for which doesn't even exist.

The Republicans were the ones, unfortunately, who decided - because they were looking for scalps, I guess, or looking for wins in a situation where somehow they found themselves on the wrong side of cutting taxes for 160 million Americans last December - they decided to play politics with this decision and attach it to the payroll tax cut extension.

That essentially - even though it had been made clear by the State Department that doing so would make it impossible for them to conduct the review responsibly, they did it anyway, knowing what the result would be.

TAPPER: I don't want to relitigate the whole thing, but Republicans say that the president was playing politics first by delaying a decision until after the election.

CARNEY: Well, I appreciate that, and we have been through this. But I would note that the delay was the result of a decision made to honor the concerns of those in Nebraska, including the Republican governor, who felt that the proposed pipeline associated with the permit request ran through a portion of Nebraska that would threaten the aquifer, threaten the water supply in Nebraska. The decision was then made to delay approval - delay the process to allow for examination of alternate routes. That's the process should work. It is unfortunate that the process was artificially halted because of the decision to play politics with the payroll tax cut extension.

-Jake Tapper

Also Read

View the original article here

A Rapid Hike in Gas Prices Is Coming to a Pump Near You

Patrick DeHaan is a senior analyst at gasbuddy.com.

The largest refinery in Washington state caught fire late last week, a stark reminder of the possibilities that can play out as maintenance season approaches, and the shockwaves that such events can have on gasoline prices.

The fire broke out after trading had largely concluded for the day--meaning the immediate response was not initially felt at the pump, although prices around the West Coast had already risen significantly in the course of the last week.

When markets opened Tuesday, the response to the newly idled refinery were swift--spot prices climbed 10 cents in just a few moments time. By the time the day was over, spot prices on the West Coast had tacked on nearly 30 cents per gallon in most areas. The massive premium that came as a result of the fire is something motorists should prepare for--especially on the East Coast--as a significant chunk of refining capacity in the area is up for sale, and some of it already idled.

[See a collection of political cartoons on gas prices.]

Motorists are sure to notice the huge spike on the West Coast rather quickly--many already know prices rise much quicker than they fall. Gasoline prices across California could add 3-6 cents a day for the next several days. Prices in Washington state could also spike a similar amount.

With spring well on its way and the shift towards summer gasoline already in motion in some areas of California, motorists shouldn't be surprised in how quickly gasoline prices will rise. Many will call on refineries to increase production--or even to build new facilities, something oil companies find next to impossible. One thing is for sure--however quickly prices rise this spring, politicians will surely make gasoline prices a political hot topic, and Americans may listen, even though refinery accidents and summer gasoline can't be stopped by such people in office.

Be ready, motorists--a rapid rise in gasoline prices is coming soon to a pump near you.

--Gregg Laskoski: East Coast Refineries Key to Managing Rising Gas Prices

--See a collection of political cartoons on energy policy.

--Follow the U.S. News On Energy blog on Twitter.

View the original article here

Obama to Promote Energy Policy as Gas Prices Rise

In 2012, Yahoo! News will tell the nation’s story through the experiences and views of real Americans like you. Watch the first Remake America video »

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Refinery fire could boost gas prices in Washington

SEATTLE (AP) — The longer the BP Cherry Point refinery at Blaine is out of service because of fire damage, the higher gasoline prices will go for drivers in Washington, said Tim Hamilton, executive director of the Automotive United Trades Organization, an association of independent dealers.

Wholesale prices to dealers went up about 20 cents a gallon Tuesday, Hamilton said. That will push prices in Washington close to $4 a gallon, Hamilton said Wednesday.

"This tells us the oil companies are not all that confident they'll be able to get Cherry Point up that fast," Hamilton said. "We don't know for certain."

The average price for a gallon of gas Wednesday in the state was $3.68 a gallon, according to the AAA auto club. That's already up 14 cents in a week and 21 cents in a month.

"Shutdowns can push prices up," said AAA spokeswoman Jennifer Cook in Bellevue. "That was already going on. This fire is going to add to it."

Four other refineries in Washington could increase production to offset the BP outage, but Hamilton says crude oil stocks would likely run out in eight or nine days. If the outage from Friday's refinery fire lasts a month, Hamilton predicts prices would continue rising higher — to the point motorists are forced to cut their driving and demand meets supply.

"They will raise it to whatever it takes to force people to stop driving and slow consumption down," Hamilton said.

There's no estimate when operations will resume at Cherry Point and the investigation into the cause of Friday's fire continues, said BP spokesman Scott Dean in Chicago.

He cautions against directly relating gas prices to the operations of a single refinery.

"You really can't pin a gas price on any single factor," he said Wednesday. "You have to look at all the factors in totality. There are a lot of thing going on globally affecting crude oil prices and that translates into prices at the pump."

It's a good sign the BP refinery has remained on standby, said Hamilton an oil industry analyst and consultant for 30 years.

"They've kept it hot," he said.

A shutdown would require a longer startup period and once the refinery is shut down BP might also use that time for the switch from winter to summer-formulated fuels or additional maintenance.

"If we're down for any amount of time we're going to quickly run out of reserves in storage," he said. And it would take more than a month to direct a special oil tanker to Puget Sound, Hamilton said.

The BP refinery is the largest of five in Washington with the capacity to turn 230,000 barrels of crude oil a day into gasoline, diesel and jet fuel. It's the third-largest refinery on the West Coast. It produces 20 percent of Washington's gasoline needs and it supplies the majority of jet fuel for Sea-Tac, Portland and Vancouver, British Columbia, airports.

The other refineries in the state are the U.S. Oil facility at Tacoma, ConocoPhillips at Ferndale, and Tesoro and Shell at Anacortes.

View the original article here

Refinery fire could boost gas prices in Washington

SEATTLE (AP) — The longer the BP Cherry Point refinery at Blaine is out of service because of fire damage, the higher gasoline prices will go for drivers in Washington, said Tim Hamilton, executive director of the Automotive United Trades Organization, an association of independent dealers.

Wholesale prices to dealers went up about 20 cents a gallon Tuesday, Hamilton said. That will push prices in Washington close to $4 a gallon, Hamilton said Wednesday.

"This tells us the oil companies are not all that confident they'll be able to get Cherry Point up that fast," Hamilton said. "We don't know for certain."

The average price for a gallon of gas Wednesday in the state was $3.68 a gallon, according to the AAA auto club. That's already up 14 cents in a week and 21 cents in a month.

"Shutdowns can push prices up," said AAA spokeswoman Jennifer Cook in Bellevue. "That was already going on. This fire is going to add to it."

Four other refineries in Washington could increase production to offset the BP outage, but Hamilton says crude oil stocks would likely run out in eight or nine days. If the outage from Friday's refinery fire lasts a month, Hamilton predicts prices would continue rising higher — to the point motorists are forced to cut their driving and demand meets supply.

"They will raise it to whatever it takes to force people to stop driving and slow consumption down," Hamilton said.

There's no estimate when operations will resume at Cherry Point and the investigation into the cause of Friday's fire continues, said BP spokesman Scott Dean in Chicago.

He cautions against directly relating gas prices to the operations of a single refinery.

"You really can't pin a gas price on any single factor," he said Wednesday. "You have to look at all the factors in totality. There are a lot of thing going on globally affecting crude oil prices and that translates into prices at the pump."

It's a good sign the BP refinery has remained on standby, said Hamilton an oil industry analyst and consultant for 30 years.

"They've kept it hot," he said.

A shutdown would require a longer startup period and once the refinery is shut down BP might also use that time for the switch from winter to summer-formulated fuels or additional maintenance.

"If we're down for any amount of time we're going to quickly run out of reserves in storage," he said. And it would take more than a month to direct a special oil tanker to Puget Sound, Hamilton said.

The BP refinery is the largest of five in Washington with the capacity to turn 230,000 barrels of crude oil a day into gasoline, diesel and jet fuel. It's the third-largest refinery on the West Coast. It produces 20 percent of Washington's gasoline needs and it supplies the majority of jet fuel for Sea-Tac, Portland and Vancouver, British Columbia, airports.

The other refineries in the state are the U.S. Oil facility at Tacoma, ConocoPhillips at Ferndale, and Tesoro and Shell at Anacortes.

View the original article here

Nabors posts 4Q loss as natural gas prices decline

The drilling contractor Nabors Industries Ltd. posted a $105 million loss in the most recent quarter, down from a $50 million profit in the same quarter the year before.

The net loss totaled $105.9 million, or 36 cents per share. That's compared with a profit of $50.5 million, or 17 cents per share, in the October-December quarter in 2010.

Stripping out what the company said were losses from discontinued operations and a charge related to its former CEO, adjusted net income came to 52 cents per share. That's slightly above the 50 cents per share analysts had expected, according to data provider FactSet.

Nabors said the losses from discontinued operations charges were mainly a result of the falling price of natural gas and other U.S. and Canadian assets up for sale. The company said Tuesday that it will look at the "strategic fit" of every one of its business units.

The company also took a $100 million fourth-quarter charge for a payment to Eugene Isenberg for stepping down as CEO, even though Nabors said earlier this month that Isenberg would decline to take the payment. The company instead indicated that it may make charitable contributions with the money.

Nabors said Tuesday that fourth-quarter revenue rose 32 percent to $1.74 billion from $1.32 billion. Analysts expected $1.72 billion.

The company was the subject of a story in The Wall Street Journal last year that looked at the possible use of Nabors' jets for personal travel. The paper said that Nabors' jets made frequent stops in places where Chairman Eugene Isenberg has homes, but Nabors reported no personal use of company aircraft by Isenberg in the previous two years.

The company named its current CEO, Anthony Petrello, in October.

In November, the oil-drilling contractor revealed that it was the subject of an informal inquiry by the Securities and Exchange Commission into the perks given executives.

Nabors Industries Ltd. is registered in Bermuda but has its headquarters in Houston. Its shares dipped 9 cents in after-hours trading after closing down 44 cents, or 2.1 percent, to $20.36 during the regular trading day.

View the original article here

White House seeks to deflect blame over rising gas prices

WASHINGTON (Reuters) - Under fire from Republicans over rising gasoline prices, the White House on Tuesday highlighted factors beyond its control for gains in global oil markets, as it sought to deflect blame over a potentially damaging election-year issue.

Gas prices, which rose 7 cents a gallon last week, could unsettle economic confidence at a time when the U.S. recovery appears to be gathering pace, hurting President Barack Obama as voters review his track record ahead of the November 6 ballot.

Obama, a Democrat, acknowledged the risk posed by higher gas prices as he welcomed congressional approval of a payroll tax cut extension. The White House later argued that it was unfair to single out the administration over prices at the pump.

"There are no magic solutions to rising oil prices," said White House press secretary Jay Carney. "The rising gas prices clearly the effect of a variety of factors on the global price of oil," he told reporters, citing geopolitical unrest and rapid growth in India and China.

Oil prices touched a nine-month high on Tuesday, partly because Asian consumers moved to cut oil imports from Iran following Western sanctions, and this has already had an impact on forecasts across America.

Gasoline prices advanced last week to $3.59 a gallon from around $3.32 at the start of the year, a rise that helped push up U.S. consumer inflation in January, denting household spending power.

Republicans see gas prices as a way to attack Obama's energy policies as they campaign to deny him a second White House term.

They argue the president sees rising prices as a way to alter U.S. energy consumption, while taking aim at his decision last month to reject TranCanada Corp's proposed Keystone XL crude oil pipeline.

"The current unrest in the Middle East reminds us how dependent we are on resources from a volatile region - and how misguided the president's decision to block the Keystone pipeline from Canada really was," said Brendan Buck, spokesman for House of Representatives Speaker John Boehner, the top Republican in Congress.

Pushing back, the White House noted that U.S. domestic energy production was at an eight-year high and said the president's energy policies were helping to reduce the country's dependence on imported foreign oil.

But Obama himself drew attention to the gas price issue. Welcoming congressional approval of an extension of the payroll tax cut, he said earlier on Tuesday the $40 per paycheck that this break was worth would help offset "the rising cost of gas - which is on a lot of people's minds right now."

"The president is very aware of the impact that the global price of oil has on families," Carney told reporters. "The fact that this is happening only underscores the need ... to have a comprehensive energy policy," Carney said.

(Reporting By Laura Macinnis and Alister Bull; Editing by Sandra Maler and Eric Walsh)

View the original article here

New report from NRG Expert reveals that gas prices are set to rise as natural gas becomes the number two energy source after oil

NRG Expert’s Global Natural Gas Report states that natural gas is set to become the number two fuel in the global energy mix after oil. The EU predicts that demand for natural gas will more than double from 1990 demand levels by 2030, while the International Energy Agency estimates that natural gas will make up 25% of primary energy consumption by 2035.

London, UK (PRWEB UK) 22 February 2012

Despite short-term dips, natural gas prices have been increasing since 1999 and are expected to continue to rise. While North American gas prices are expected to remain stable until 2018, “the only way is up” for gas prices for other regions. In its World Energy Outlook 2011, the International Energy Agency projects that natural gas prices will increase further unless USD 9.5 trillion is invested over the next 25 years.

The United States and Russia are the largest producers of natural gas in the world, reaching 37% of total production in 2010. They are also the largest consumers in the world, causing the United States to become a net importer to meet domestic demand. Other high growth markets for consumption up until 2050 are projected to be South and Central America (4.2%) followed by Africa (2.8%) and the Asia Pacific region (2.7%). Surplus gas reserves – and therefore exports – are expected in the Middle East, the CIS region, North America and Africa.

“The growth in demand for natural gas is not a recent phenomenon”, according to Max Krangle, Managing Director of NRG Expert. “Natural gas consumption has been growing for over 90 years, first due to the switch from coal and, more recently, due to gas’s lower CO2 emissions compared to oil and coal and its reliability as back-up for intermittent renewable energy sources, such as wind and hydroelectric power.”

NRG Expert is a London and Toronto based energy intelligence and market research publisher. NRG Expert provides up to date information and analysis of worldwide energy markets, including electricity, natural gas, coal, nuclear, renewable energy, water and waste, and all elements of energy infrastructure. To find out more about NRG Expert reports and databases please visit http://www.NRGExpert.com.

###

Edgar van der Meer
NRG Expert
+1 (416) 840-5847
Email Information

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Love Energy Savings who compare energy prices are pleased to announce today the 22nd February 2012 the promotion of Anna-Maria to Account Executive

As part of the recent expansion and recruitment drive Love Energy Savings has promoted Anna-Maria to Account Executive. Love Energy Savings offers businesses the opportunity to compare energy prices online. The recent success in energy comparison has meant that recently Lover Energy Savings recruited over 50 staff.

Phil Foster MD of Love Energy Savings stated "We have been undergoing substantial growth in what are for many companies’ difficult times. It’s a very exciting time for us, however, we still look within the company for talent and opportunities to promote. Anna-Maria is an example of an employee who has started in the call centre and has progressed within the business, this makes me particularly proud to announce her promotion today."

Manchester, UK (PRWEB) February 22, 2012

As part of the recent expansion and recruitment drive Love Energy Savings has promoted Anna-Maria to Account Executive. Love Energy Savings offers businesses the opportunity to compare energy prices online. The recent success in energy comparison has meant that recently Lover Energy Savings recruited over 50 staff.

Phil Foster MD of Love Energy Savings stated "We have been undergoing substantial growth in what are for many companies’ difficult times. It’s a very exciting time for us, however, we still look within the company for talent and opportunities to promote. Anna-Maria is an example of an employee who has started in the call centre and has progressed within the business, this makes me particularly proud to announce her promotion today."

Love Energy Savings is one of the UKs largest utility providers offering businesses the opportunity to compare electricity prices and compare gas prices online. Love Energy Savings is a true Lancashire hero. The company offers a warm welcome and ensures its clients’ money is well taken care of with good old-fashioned common sense.

Love Energy Savings help their clients’ save on business gas, electricity, phone and insurance. They have been doing that for countless customers nationwide, since 2007. They are experts in the field of saving their clients’ money on business energy and run through the process from end to end with their clients meaning that the transition is seamless and allow their clients to sit back, relax and let the professionals take care of their business energy switch.

From Land's End to John O'Groats, Love Energy Savings know the lay of the land when it comes to utility suppliers. They know who's where, what's what, and when to make the best move to get their clients the biggest and best savings.

Love Energy Savings, the B2B price comparison service based on Springfield Court, off Summerfield Road, Bolton, Lancashire, is to take on 40 apprentices in 2012.

Love Energy Savings clients trust them for fast, free and impartial advice on the best possible energy savings.

For more information Contact

Anna-Maria Palmas

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Spiking Gas Prices Could Cost Obama Re-Election

ALEXANDRIA, Virginia (Reuters) - A U.S. judge on Wednesday ordered a Moroccan man to be held on charges that he planned a suicide bombing attack against Congress, believing he was working with al Qaeda militants when in fact his contacts were undercover agents. Amine El Khalifi, 29 and an illegal immigrant, was arrested …

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Carney Says No 'Magic Solutions' on Oil Prices, Amused at Gingrich Attack -- VIDEO

In 2012, Yahoo! News will tell the nation’s story through the experiences and views of real Americans like you. Watch the first Remake America video »

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Nabors posts 4Q loss as natural gas prices decline

The drilling contractor Nabors Industries Ltd. posted a $105 million loss in the most recent quarter, down from a $50 million profit in the same quarter the year before.

The net loss totaled $105.9 million, or 36 cents per share. That's compared with a profit of $50.5 million, or 17 cents per share, in the October-December quarter in 2010.

Stripping out what the company said were losses from discontinued operations and a charge related to its former CEO, adjusted net income came to 52 cents per share. That's slightly above the 50 cents per share analysts had expected, according to data provider FactSet.

Nabors said the losses from discontinued operations charges were mainly a result of the falling price of natural gas and other U.S. and Canadian assets up for sale. The company said Tuesday that it will look at the "strategic fit" of every one of its business units.

The company also took a $100 million fourth-quarter charge for a payment to Eugene Isenberg for stepping down as CEO, even though Nabors said earlier this month that Isenberg would decline to take the payment. The company instead indicated that it may make charitable contributions with the money.

Nabors said Tuesday that fourth-quarter revenue rose 32 percent to $1.74 billion from $1.32 billion. Analysts expected $1.72 billion.

The company was the subject of a story in The Wall Street Journal last year that looked at the possible use of Nabors' jets for personal travel. The paper said that Nabors' jets made frequent stops in places where Chairman Eugene Isenberg has homes, but Nabors reported no personal use of company aircraft by Isenberg in the previous two years.

The company named its current CEO, Anthony Petrello, in October.

In November, the oil-drilling contractor revealed that it was the subject of an informal inquiry by the Securities and Exchange Commission into the perks given executives.

Nabors Industries Ltd. is registered in Bermuda but has its headquarters in Houston. Its shares dipped 9 cents in after-hours trading after closing down 44 cents, or 2.1 percent, to $20.36 during the regular trading day.

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High gas prices: How big a problem for Obama?

When it comes to gas prices, President Obama is probably watching them rise with just as much consternation as people who are tanking up every day.

The reason: The higher the price, the more unpopular a president, studies have found.

In fact, the last five times gas prices have spiked, the incumbent party has lost the presidential election.

RECOMMENDED: Keystone XL pipeline – 6 questions answered

“If the rising price of gasoline persists, as some analysts think it will, it is bound to affect [Mr. Obama’s] popularity,” says Larry Sabato, a political scientist at the University of Virginia in Charlottesville.

The five elections where gas prices may have had an impact were in 1976, when Gerald Ford lost to Jimmy Carter; in 1980, when Mr. Carter lost to Ronald Reagan; in 1992, when George H.W. Bush lost to Bill Clinton; in 2000, when Al Gore lost to George W. Bush; and in 2008, when John McCain lost to Obama.

On Tuesday, the national average price of gasoline was $3.57 a gallon, according to AAA’s Daily Fuel Gauge Report. That’s up 6 cents from a week ago and 19 cents from a month ago. Also on Tuesday, the price of oil in the United States rose by about $2.50 a barrel, to some $106 a barrel. Oil markets have become increasingly nervous about the possibility of an Israeli attack on Iran’s nuclear facilities.

For every sustained rise of $1 in the price of a barrel of crude oil, the price of gas rises 2.4 cents a gallon at the pump.

For Obama, the risk of rising gasoline prices is even more immediate than Election Day. If the costs continue to rise, they could adversely affect the economy.

“The way it works is when we hit $4 a gallon, it starts to have an impact on consumer behavior. It’s like a psychological trigger, an inflection point,” says Dennis Jacobe, chief economist at Gallup in Washington. “If the price goes past $4 a gallon, that will slow the economy.”

A slowing economy could be a big detriment for Obama, Mr. Sabato says. “The economic recovery is fragile enough,” he says. “There has been nothing but bad times in his administration. A slowdown reduces the incentive to reelect him.”

The actual impact, Mr. Jacobe says, will depend in part on the direction and speed of gas prices, since consumers “react to what they expect the changes to be.”

As higher prices sink in for consumers, they start to cut back on discretionary spending. This ripples through the economy, with retailers cutting their orders and businesses becoming more conservative in their spending.

Still, the public does not necessarily blame the president for rising prices. Last May, a poll conducted by the Pew Research Center found that 31 percent blamed greed, oil companies, and speculators for the rising prices. Another 19 percent blamed wars and unrest in the Middle East. Only 14 percent blamed politics or policy.

But no matter what, Obama is likely to hear criticism from Republicans and the oil industry.

In a statement Tuesday, House Speaker John Boehner (R) of Ohio blamed Obama for rising gasoline prices. “President Obama has thwarted more American energy production at every turn – from his refusal to back bipartisan, House-passed energy bills to his rejection of the Keystone XL pipeline – and now Americans are paying the price every time they fill up,” said Speaker Boehner.

His position is not that different from the oil industry’s.

“By any measure, the current policies governing America’s energy development have failed,” said Thomas Pyle, president of the Institute for Energy Research, a pro-oil industry policy group, in a statement on Feb. 16. “The past three years have been marked by cancelled lease sales for the Outer Continental Shelf, [a] moratorium on offshore drilling, the closing of millions of acres [of] public lands for energy development, and the rise of [a] regulatory regime that openly favors expensive, intermittent energy sources over proven, affordable ones – all with taxpayer dollars.”

Under Republican administrations, crude oil prices are lower by $6 per barrel, which translates to 13 cents a gallon at the pump, according to a 2009 paper by Valerie Frey, an academic researcher at Yale University. The oil industry’s refining margins were also better under Republicans, even if consumers paid less, the study said.

Ms. Frey also found that retail gas prices did not decrease immediately before national elections.

A key factor, says Sabato, will be the price of gasoline in seven swing states: Colorado, Florida, Iowa, Nevada, New Hampshire, Ohio, and Virginia. He doesn’t rule out a move on the price front right before Nov. 6. “I wonder if Obama would release oil from the Strategic Petroleum Reserve [SPR] so it was timed just right to draw prices down before the election,” he says.

Last year, Obama released oil from the SPR when prices started to go up because of the unrest in Libya. That had a very short effect on energy prices.

RECOMMENDED: Keystone XL pipeline – 6 questions answered

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Santorum Surge Brings Focus on Faith, Dow Perspective, Gas Prices Concern, Hillary Clinton Feeling Green (PM Note)

The Dow Briefly Broke 13k - http://abcn.ws/zivOiH

Or, as @stewsays sees it - "Dow Jones back to pre-Obama administration levels?"

Fact Check: 8 Months pre-Obama administration.

God, Christianity and Satan in 2012 - With the Santorum Surge, Talk of Religion Keeps Cropping Up -

Rick Santorum's 2008 Warning on Satan… http://abcn.ws/zFzRCZ

Franklin Graham More Confident in Santorum's Christianity than Obama's… http://abcn.ws/AEIcVb

Romney Defends Says Obama Has 'Secular Agenda' - Mitt Romney shifts from his usual focus on the economy and tackles social and religious issues while campaigning in his native Michigan. More from Emily Friedman - http://abcn.ws/ynHfSr

Even the Losers - We (the media) were kidding all those other times this year when we said we were on the cusp of a turning point. Iowa was supposed to be key. Then South Carolina. Then Florida. Then Santorum's hat trick was a turning point even though it wasn't supposed to be. It's clear that winning no one state will put away the nomination. But if Romney loses next Tuesday in his birthplace… Matt Jaffe sees something larger in the game of musical yard signs they played this morning in Shelby, Michigan… http://abcn.ws/y2E9IV

Feeling Green: Hillary Sticks Out at G20 Summit - Hillary Clinton must have missed the memo when she appeared for the "class photo" at the G20 Summit in Mexico. While the other foreign ministers opted for white shirts, the Secretary of State wore a lime green blouse and stuck out like the proverbial sore green thumb. http://abcn.ws/xGmHk1

Oddities of the Day -

Inside Outsider - Santorum says he wasn't an Insider when he was inside Washington -

Jay Carney, Under Questioning from Tapper, Accuses Republicans of Holding up Keystone Pipeline -

"In terms of Keystone, as you all know, the history here is pretty clear. And the fact is, is that because Republicans decided to play politics with Keystone, their action essentially forced the administration to deny the permit process because they insisted on a timeframe within which it was impossible to appropriately approve the pipeline." http://abcn.ws/x3XNxp

So Go Gas Prices… Jake Tapper on why they're sweating at the White House despite all that good economic news  - http://abcn.ws/ymAHEa

Romney and Santorum as Deficit Slayers? Obama Camp Says 'No' - In yet another sign of Rick Santorum's growing status as GOP frontrunner, President Obama's re-election campaign released a memo on Tuesday targeting the former senator's economic policies. More from Devin Dwyer - http://abcn.ws/vZ6xkn

 Supreme Court Takes Up Affirmative Action Case - The Supreme Court will add another controversial issue to its already fiery docket - the issue of race in university admissions. Ariane de Vogue reports on the Court's decision to hear a case on affirmative action in higher education. http://abcn.ws/Aul8vy

Lying About a Medal of Honor - Illegal or Just Dumb? - http://abcn.ws/zhsUjq

Obama Touts Payroll-Tax Cut Compromise - Relishing his political victory, President Obama said Tuesday that Congress "did the right thing" and urged lawmakers to "keep going" to help the middle class. http://abcn.ws/xlQQJO

Also Read

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Gas Prices Unlikely to Hit $5 a Gallon in 2012

ALEXANDRIA, Virginia (Reuters) - A U.S. judge on Wednesday ordered a Moroccan man to be held on charges that he planned a suicide bombing attack against Congress, believing he was working with al Qaeda militants when in fact his contacts were undercover agents. Amine El Khalifi, 29 and an illegal immigrant, was arrested …

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