Daily Archives: June 12, 2008

Ethanol cuts gas prices, has little impact on food

June 12, 20085:04 p.m.

The average American family has saved more than $500 at the gas pump in the last year because of the impact of ethanol on fuel prices, according to new research from Merrill Lynch.

Commodity strategist Francisco Blanch reported that retail gasoline prices would be $21 a barrel higher without ethanol, an average savings of $526 a year.

At the same time, ethanol has boosted corn prices just 21 percent since 2004, an increase that accounts for about $15 a year in food expense.

The real culprits in escalating food prices are rapidly increasing oil prices, increased global demand for meat and grains, commodity speculation, the declining value of the dollar, droughts and bad weather.

There are, however, some folks — some big oil companies among them — that really don’t want that message to reach the public; hence an ongoing public relations campaign to blame ethanol for all the woes in the grocery aisle.

It’s not so folks. Only a tiny portion of the food dollar pays for raw materials. The rest of your money pays for processing, packaging and transportation, all energy-intensive segments.

By PJ Griekspoor | Filed under Agriculture, Energy | Comments (45) | Share this post

Flying the unfriendly skies

June 12, 20084:25 p.m.

My job requires that I sit at a desk most of the time, and I rarely (if ever) travel by plane for work. I’ve often lamented that the farthest place I get to visit seems to be Haysville (no offense to the folks there, of course, but New York and LA seem to have a bit more to do).

But I flew a couple times recently for vacation, and I must say this travel business seems to be getting harder by the day.

On the first leg of my trip, United Airlines rerouted me on American Airlines due to weather holdups. I was told I would have to pay to check my second bag, but in the end I didn’t have to because I’d booked my ticket before the new policy was set. Sweet.

But on the way back, United didn’t have such a lenient policy. Ticked, of course, I refused to pay, took my luggage and rolled away. What I didn’t think about was that second suitcase is where my toiletries were, so as I went through airport security, I was stopped for having liquids, gels and lotions.

So I lost my shampoo. Then my conditioner. Then my Keri — oh so very — lotion. I quickly started tabulating just how much this would cost. More than checking my luggage? When the nice guy from TSA (”Ma’am, please do not touch the luggage.”) eyed my Clinque eye makeup remover ($17.50!), I knew I’d have to face the walk of shame back to the check-in counter with my luggage. Thankfully, the Clinque made it through.

I lost five items in all, two of which I keep forgetting to rebuy, so each morning as I’m getting ready, I silently curse United.

Still, if the paper suddenly needs me to cover some business news in, say, London, hey, I’ll be happy to pay to check that second bag. Heck, I’ll even spring for the first.

By Carrie Rengers | Filed under Uncategorized | Comments (2) | Share this post

Interesting tanker update

June 12, 20082:35 p.m.

Reuters moved an interesting tanker story today, saying the Air Force has conceded that Boeing’s KC-767 would be cheaper to operate over the life cycle of the plane. The Air Force had initially said that the KC-30, the winning tanker bid put forth by Northrop Grumman and the parent company of Airbus, would be cheaper.

Northrop officials still maintain that their tanker is better, and that cost is only one of several criteria. That may be true, but you know the Boeing folks are looking for anything to show that the Air Force did a poor job in evaluating the competing bids.

All this comes about a week before the GAO’s deadline to rule on Boeing’s protest over the contract. The next few days will be very interesting.

By Tom Shine | Filed under Aviation | Comments Off | Share this post

Coffee Break: On tankers, gas and gifts for dad

June 12, 200810:30 a.m.

Now United is going to start charging for a first checked bag. I wonder when the airlines are going to start charging per item of clothing you’re wearing.

  • In a Seattle Times story, Boeing boss Jim McNerney says his most important decision of the year will be whether to elevate the fight or back off if the GAO’s tanker review goes against Boeing. The decision, by the way, is due between now and a week from today.
  • The Stockton (Calif.) Record has a suggestion for its readers who are tired of dealing with the highest gas prices in the nation: move to Wichita. Gasbuddy.com says our gas is still the cheapest in the nation.
  • The New York Times has a story on the steps — big and small — that airlines are taking to conserve fuel.
  • Looking for that perfect Father’s Day gift? Kiplinger has five stocks your dad will love.
  • It looks like the stimulus checks had an impact on retail sales in May. CNNMoney.com reports that sales rose 1 percent, which is more than the Commerce Department expected.
By Dan Loving | Filed under Uncategorized | Comments Off | Share this post