State standards could be supplanted

(Source: Freep.com, Detriot Free Press)

(Source:  The Brookings Institution)

(Source: USA Today)

But the oil industry is quietly sowing the seeds for a sharp run-up in gas prices once demand recovers.

Oil companies are slashing new investment and production far more sharply than analysts projected just a couple of months ago, a strategy analysts say could lead to shortages and higher gas prices when consumption rebounds. And, analysts say, a standoff between the oil giants and their suppliers over the cost of rigs, labor and other expenses could prolong the investment slowdown.

“The turnaround will probably come faster than people expect, and the supply won’t be there,” says Joseph Stanislaw, an adviser to Deloitte’s energy practice.

Oil companies are shaving exploration and production spending 18% this year, including a 40% drop in the U.S., according to new estimates by analyst James Crandall of Barclays Capital. In December, the firm said budgets would fall 12%, 26% in the U.S. Drilling in the U.S. is down 39% from its September peak.

(Source: TreeHugger)

(Source:  Wall Street Journal)

President Obama and Vice President Biden spoke with Transportation Secretary Ray LaHood Tuesday at Transportation Department headquarters, where they announced the first batch of stimulus funds getting distributed. In an interview with The Wall Street Journal, Mr. LaHood talked about spending stimulus money wisely, his opposition to an increase in the gasoline tax, new fuel emission standards and more. Below are edited excerpts from the interview.

* * *

The Wall Street Journal: What’s being done to ensure that the $48 billion going to transportation projects in the stimulus bill is spent wisely?

Mr. LaHood: Our people are in touch daily with these DOT secretaries. We generally, having worked with them for years and years and years, know what is fundable. It really falls under two categories. Projects that were started and then stopped because they ran out of money, and something that’s been sitting on a shelf in a DOT office because they didn’t have the money to fund it. Some of these, like the one we announced today (a road repaving project in suburban Maryland), have been in process…These are projects that these folks have known about and have been talking about for some time. This isn’t something brand new that’s been sprung up on them…I don’t think you’re going to see something weird pop up…It’s pretty traditional stuff. It really is.

WSJ: Are you concerned when you hear squabbles between mayors and governors over how to spend the stimulus money?

Mr. LaHood: [Cities] are concerned that 70% of the money is going to the states and they’re only going to get 30%…These disputes, look it, they’re going to take place….In the end, I’m not going to be able to change the idea that 70% of this is going to the states and 30% are going to them. I tried to make a case for them. But the way it’s designed here…it is what it is.

(Source: Washington Post)

In the viability plans General Motors and Chrysler submitted to support their federal aid requests, the companies pledged to try to meet new fuel economy standards. 

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(Source:  New York Times)

Kansas will widen U.S. Route 69 to remove a bottleneck outside Kansas City, along with three other expensive projects. Maryland will spend its money in smaller pieces, resurfacing dozens of rutted roads and highways. Colorado will build an interchange on Elk Creek Road in Jefferson County, complete with an underpass for the elk.

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(Source:  Whitehouse.gov via Planetizen)

Just two weeks after signing that legislation, we’re about to start the biggest investment on our nation’s road, bridges, highways and tunnels since we built the Interstate Highway System over 50 years ago.  It’s a big deal.  The work is beginning now, with hundreds more projects getting underway in the next few months.  Some project will start this month, some won’t get going until the summer.  We’re going to do everything we can to get them moving as quickly as possible.  But Americans didn’t get in this mess overnight.  And unfortunately, unfortunately, it’s going to take some time for us to get out of this.

     Mr. President, you also made it clear that we have an obligation to the taxpayers of this nation to make sure their money is being used wisely, to make it accountable and transparent.  Folks, we’re going to ask of you a sense of diligence and transparency and responsibility as has not been asked before, because we’ve never made this kind of investment before.  This is a big deal.  Never before in the history of this country have the people been more able to see with such complete transparency how we’re going to put their money to work, not just in this agency but particularly here. 

Excerpts from President Obama’s address:

     Of the 3.5 million jobs that will be created and saved over the next two years as a result of this recovery plan, 400,000 will be jobs rebuilding our crumbling roads, bridges, and schools, repairing our faulty levees and dams, connecting nearly every American to broadband, and upgrading the buses and trains that commuters take every day.  Many of these projects will be coordinated by Secretary LaHood and all of you at the Department of Transportation.  And I want you to know that the American public is grateful to public servants like you — men and women whose work isn’t always recognized, but whose jobs are critical to our nation’s safety, security, and prosperity.  You have never been more important than you are right now, and for that we are all grateful.  (Applause.) 

     Now, in the coming days and weeks, my administration will be announcing more details about the kinds of transportation projects that will be launched as part of the recovery plan.  But today, I want to speak about an investment we are making in one part of our infrastructure.  Through the Recovery Act, we will be investing $28 billion in our highways, money that every one of our 50 states can start using immediately to put people back to work.  It’s an investment being made at an unprecedented pace, thanks in large part to Joe Biden, who’s leading the effort to get the money out the door quickly.  Because of Joe, and because of all the governors and mayors, county and city officials who are helping implement this plan, I can say that 14 days after I signed our Recovery Act into law, we are seeing shovels hit the ground.

 

The U.S. Department of Transportation today awarded the United We Ride/Mobility for All Americans joint demonstration grants to the following recipients:

1.  Lower Savannah Council of Governments – $680,000 grant to provide enhanced, cost-effective transportation choices for older adults, people with disabilities and low-income populations in Aiken, SC.   The Lower Savannah Council of Governments is using the funding for planning and designing an expanded human service transportation network to include more human service transportation providers and vehicle tracking abilities such as global positioning systems (GPS) and to enable customers to receive information and manage their own trips through a toll-free number and web-based applications.

2.  Camden County Workforce Investment Board – $700,000 grant to provide enhanced, cost-effective transportation choices for older adults, people with disabilities and low-income populations in Camden County, NJ.   The Camden County Workforce Investment Board is using the funding for planning and designing a transportation brokerage system supported by a comprehensive set of transportation modes, and for promoting fixed-route public transportation usage for human service clients through accessibility improvement.

3.  Paducah Area Transit System – $1.4 million grant to provide enhanced, cost-effective transportation choices for older adults, people with disabilities and low-income populations in Paducah, KY.   The Paducah Area Transit System is using the funding for the expansion of an existing call center to cover a larger geographic area and provide around-the-clock access to traveler support.  The strengthened call center will add customer-oriented features, such as automated telephone and Internet-based trip reservations and management.

The United We Ride/Mobility for All Americans joint demonstration adopts a two-phased approach.  Eight sites were selected to in 2007 participate in Phase 1, which is system planning and design.  These three Phase 1 sites are selected to move forward to system deployment, the second phase of the program. 

Funding for the demonstration is provided by the Intelligent Transportation System Joint Program Office of the Research and Innovative Technology Administration in Partnership with the Federal Transit Administration

(Source: Forbes)

Automaker’s finance unit is believed to have requested $2 billion loan from Japanese state-backed bank.

Finding it difficult to raise money in the U.S., Toyota Motor is reportedly seeking emergency funding of about 200 billion yen ($2 billion) in dollars from a governmental institution in Japan to support its U.S. auto-financing operations.

Commercial banks have been cautious to grant loans amid the credit crunch, particularly to the slumping auto industry, and Toyota (nyse: TM – news –people ) and several of its financing affiliates have had their credit ratings reduced, hurting their ability to raise money on the capital markets. As a result, Toyota Financial Services, an auto-financing unit of Toyota Motor, is turning to the Japan Bank for International Cooperation as a last resort for low-interest dollar loans, various Japanese media reported Wednesday.

In response to the global financial turmoil, the government funded an emergency JBIC program late last year to provide loans and debt guarantees to help Japanese firms finance operations overseas.

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