ERMU Misc. 10-11-2005 - Laserfiche WebLink

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II ENERGY New liquefied natural gas import terminals will get a green light. SUPPLIES Why? Worries about energy in general , and natural gas in particular will trump concerns MORE OVERSEAS ENERGY411/1 about safety and potential environmental impact. Long-delayed plants planned for Hackberry s 30 U.S.Natural ••' II and Port Pelican La. , and for Freeport, Texas, of Gas Consumption ••• f Feet/Day •• will start construction in a year or two. 25 ••' They'll all come on line between 2010 and 2012, 1 �••• Imports /� as will plants coming in Baja California, Mexico, II and in Canada. Both are meant to serve the U.S. 20 Another Mexican plant will make its debut sooner, ......U, Natural ••••.. in 2007, shipping gas to California via pipeline. Gas Production II 15 Imports will nab 40% of the market 2000 2005 2010 2015 2020 2025 Energy Dopt Kip Inge by 2025. About half will be LNG. . .only 4.5% now. Coal-fired power plants will get a break from Uncle Sam: I New pollution rules that set per-hour maximums rather than a yearly cap on emissions. As a result, older plants that modernize would be able IIto operate for more hours. Thus, they'd be able to increase annual output without hitting emissions caps that would require antipollution devices. Environmental advocates will cry foul, claiming the proposed regs violate the Clean Air Act. They're sure to mount a court challenge. IIThat will probably delay the effective date until 2007. AIRLINE Air carriers aren't likely to get what they're asking for. . . IIINDUSTRY a one-year suspension of the 4.3c-per-gallon tax on jet fuel. It would save them a cool $600 million, but that's only a small slice of the $10 billion in total losses the industry will rack up this year. Congress is reluctant to waive the fuel tax for the airlines, fearing that it would open the door for other industries seeking relief. 41111 Moreover, before Hurricane Katrina and the latest spike in fuel prices, most lawmakers were inclined to steer clear of any industry bailout. IIThey preferred to let the market sort out sticky questions of survival. It's only a matter of time before Independence Air stumbles, following US Airways, United, Delta and Northwest into bankruptcy court. I Recent declarations put carriers with nearly half of industry capacity under court protection. They'll emerge as leaner, meaner competitors. Meanwhile, airlines are jettisoning any extra weight they can, II trying to squeeze more from their fuel dollars. Magazines, blankets and pillows are being tossed from cabins. Ditto, extra catering supplies and metal cutlery. . .even first class will have to make do with plastic. I At least one carrier is trying to tighten luggage weight limits as well. Slightly slower cruising speeds will add a few minutes to flights. Need more evidence that Southwest Airlines is a winner? I The company locked in fuel prices long before this year's spike. About 85% of its fuel for this year was covered by hedges at $26 a barrel, less than half what the 2005 average price is likely to turn out to be. IIIt has hedges in place for 25% to 65% of annual fuel use through 2009, with guaranteed prices ranging from $31 a barrel to $35 a barrel. SCHOOLS Another victim of fuel price hikes: Local school districts. IIII Additional costs to operate school buses will bust their budgets, 11 not to mention the impact of increased school heating bills this winter. * Remember,your subscription includes The Kiplinger Letter online 1 I