A look back through pictures from the Telegraph from one year ago regarding the Deep Horizon accident.
While the above link isn't really a "Finance Friday" topic by itself, the industry, the fall out, the continued lack of drilling permits as a result of the ever moving "rule" target by the Interior Department, has certainly been one cause for oil to head back above $100 a barrel. Not the sole reason, but one of the reasons and certainly one that can find blame with the Obama appointee Ken Salazar.
Have the processes and safety protocols really improved? It is hard to say. I plead ignorance as to the current impact upon the Gulf of Mexico and its ecosystem because both the enviro-wackos and the right have their respective spins on the issue. The one thing I do know is that we are witnessing government central planning stall the plans of private business to the point that it has wreaked havoc upon the market. While the cash that finances the industry is fungible to where geo-political and environmental concerns aren't as big of a concern, US based companies continue to loose the capital necessary to explore, extract, and mitigate the environmental costs associated with oil production. Not to mention the roughnecks who are unemployed or forced to travel to foreign lands to make an honest living, or the rig builders who have now lost productivity to await the new regulations.
As usual, what the government doesn't know, it attempts to regulate and thus, snuffs it out of existence.
Showing posts with label Oil. Show all posts
Showing posts with label Oil. Show all posts
15 April 2011
11 March 2011
Spain's Speed Limits 'Bore' F-1 Champ
It isn't often that you see a Formula 1 champ talk politics (regardless of how political the F1 series actually is considering the FIA is like the UN of auto racing) but that is exactly what Fernado Alonso is doing.
On the final Friday in February, the Spanish Government slashed the speed limit from 74.5 mph (considering they use kph over there) to 68 mph, in an effort to extract higher fuel efficiency. The champ of the most prestigious racing league in the world basically said "I'll be bored." I guess anyone addicted to speed, or used to driving in excess of 200 mph for work, would be bored at pedestrian speeds.
Considering the measure is reactionary to the conflicts ongoing in the MENA (Middle East / North Africa) and rising oil prices, Spanish officials said they would reduce commuter rail fare to entice lower automobile use. Though, just like any good government intervention, the law of unintended consequences rears its ugly head. With these new measures in place the government stood a chance to loose out on more than $680 million in tax revenue from fuel use and associated economic activity. Taking into account Spain's debt problem, and the fact that their bonds have been going Tango Uniform, something tells me that the "conserve until we die from higher interest rates" will only last so long (as politicians can deal without revenue like a vampire deals without the dark).
After all, it seems that the only thing conservation ever actually conserves is a lack of lower tax rates (or soverign debt crises).
On the final Friday in February, the Spanish Government slashed the speed limit from 74.5 mph (considering they use kph over there) to 68 mph, in an effort to extract higher fuel efficiency. The champ of the most prestigious racing league in the world basically said "I'll be bored." I guess anyone addicted to speed, or used to driving in excess of 200 mph for work, would be bored at pedestrian speeds.
Considering the measure is reactionary to the conflicts ongoing in the MENA (Middle East / North Africa) and rising oil prices, Spanish officials said they would reduce commuter rail fare to entice lower automobile use. Though, just like any good government intervention, the law of unintended consequences rears its ugly head. With these new measures in place the government stood a chance to loose out on more than $680 million in tax revenue from fuel use and associated economic activity. Taking into account Spain's debt problem, and the fact that their bonds have been going Tango Uniform, something tells me that the "conserve until we die from higher interest rates" will only last so long (as politicians can deal without revenue like a vampire deals without the dark).
After all, it seems that the only thing conservation ever actually conserves is a lack of lower tax rates (or soverign debt crises).
23 July 2010
Florida Gov Seeks Constitutional Referendum on Oil Drilling
While I have a personal disdain for Charlie Christ and his flip flopping ways, I do agree with him for attempting to let the people of Florida make the choice regarding their own economy.
The irony in the situation however is, despite Florida's sixty-one billion dollar a year tourist industry, and no off shore oil exploration policy, they are now at risk to losing the tourist industry through no fault of their own. Had the state allowed oil drilling, it would have had it's tourist industry and an oil industry in place to fall back on. Instead, the state of Florida is now scrambling to put a ballot Constitutional referendum to see if the people want to continue the ban on offshore oil exploration, or increase their economic capacity and allow for drilling.
Unfortunately, accidents happen and we have a long way to go to be able to ascertain the impact of the BP disaster. It will be interesting to see what the people of Florida choose for themselves in the coming weeks.
The irony in the situation however is, despite Florida's sixty-one billion dollar a year tourist industry, and no off shore oil exploration policy, they are now at risk to losing the tourist industry through no fault of their own. Had the state allowed oil drilling, it would have had it's tourist industry and an oil industry in place to fall back on. Instead, the state of Florida is now scrambling to put a ballot Constitutional referendum to see if the people want to continue the ban on offshore oil exploration, or increase their economic capacity and allow for drilling.
Unfortunately, accidents happen and we have a long way to go to be able to ascertain the impact of the BP disaster. It will be interesting to see what the people of Florida choose for themselves in the coming weeks.
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