Gas Gets Pumped Up

With gas at nearly $4 a gallon, thousands of American gas station owners foresee trouble—because their old-time pumps can't price gas at higher than $3.99. "In small towns, where you don't have the volume, there's no way you can afford to pay for the replacements for these old pumps," one owner told the AP. "It's just not economically feasible." More »

Sure, gas prices are unreasonable and the economy is hurting, but, the Los Angeles Times reports, at least now the infamous traffic isn't so bad. Hard data shows that traffic may be thinning out along LA’s freeways; accidents and commute times are also falling. Talking with local drivers, the Times got plenty of anecdotal evidence to support the theory. More »

The soaring price of gas is driving people across America out of their cars and onto mass transit, the New York Times reports. Buses and trains are up 5% or more in cities like Boston and New York, where mass transit is already a popular alternative, but the biggest leap in rider numbers—10-15%— has been in cities in the South and West where car culture is strongest. More »

As crude hit $125 a barrel today, one OPEC member said the cartel may boost oil production to relieve prices, the New York Times reports. The move would conflict with OPEC's public stand that speculators, not oil supplies, have been keeping prices high. “We would consider among other options the possibility of increasing output as a way to ensure market stability,” Libya's top oil official said. More »

As gas prices skyrocket—and oil company profits soar along with them—the chief US oil lobby has launched a massive campaign to improve its public image, the Washington Post reports. The American Petroleum Institute is spending millions on newspaper ads, a traveling museum, and tours for bloggers, to counter rising hostility among consumers and moves in Congress to punish the industry. More »

Oil climbed over $125 a barrel today, just ahead of the US driving season and propelled by investors jumping at a weaker dollar, the AP reports. Light, sweet crude for June rose to $125.98 on the New York Mercantile Exchange today, later dropping to $124.86 in Europe. More »

It’s common knowledge that driving a little slower makes more efficient use of gas. And with fuel prices sky-high, some drivers are actually throttling back in hopes of feeling less pain at the pump, the AP reports. Vacation drivers and truckers alike are heeding experts’ advice that cars are most efficient between 30 and 60 mph, and become increasingly inefficient over 65 mph. More »

Stocks zoomed downward today as oil topped $123 a barrel, hastening a sell-off by anxious investors. "You can still get a lot of nervousness when they see these daily moves in crude, along with follow-through in the stock market," an analyst tells the Wall Street Journal . The Dow ended down 206.48 to 12,814.35, the Nasdaq 44.82 to 2,438.49, and the S&P 25.69 to 1,392.57. More »

A "democratic recession" is threatening to roll back freedom around the globe, Thomas Friedman writes today in the New York Times. The high price of oil—which facilitates authoritarian rule—combined with the loss of US ability to effectively promote democracy means dictators have freer reign and freedom suffers, Friedman writes. More »

A “super-spike” could push oil beyond $150 a barrel by October, the highest it been in more than 135 years, experts say. That would drive the price at the pump past $4.50 a gallon and trim US economic output 3.3% in the 2 years following, reports the Wall Street Journal. Crude sold for a record $121.84 yesterday, up 96% from a year ago. More »

Stocks fell today as Yahoo shares plummeted 16% and crude prices jumped past $120 a barrel. "People have gotten in, but they don't want to be in a big way," a investment officer told the Wall Street Journal . The Dow fell 88.66 at 12,969.54, the Nasdaq 12.87 to 2,464.12, and the S&P 500 6.41 at 1,407.49. More »

As airlines feel the pain of higher energy prices, planes are slowing down to save fuel, the AP reports. Southwest, for instance, will save $42 million by adding a few minutes to each flight this year, and passengers are unlikely to notice. But it’s no cure-all: Labor costs go up with flight time, and going too slowly actually increases fuel costs. More »

The gas tax holiday backed by Hillary Clinton and John McCain will be DOA in the House, lawmakers have warned, reports the Hill . The measure has been left off House energy proposals that could be tacked onto the Iraq spending bill because "there’s no reason to believe that any moratorium on the gas tax would be passed on to the consumer," said House Speaker Nancy Pelosi. More »

John McCain pushed back today against a New York Times op-ed that deemed a gas-tax holiday “shameful pandering,” painting Thomas Friedman as elitist: “I understand in New York City that you don't really drive a long way," he said. "And then maybe you're chauffeured.” His CNN interlocutor even broke in to change the topic, to “interrupt this tirade against Tom Friedman,” Politico reports. More »

Economists and a leading House Democrat are blasting the gas-tax cut proposed by both John McCain and Hillary Clinton, the Washington Post reports. Economists say most of the savings would flow right to the oil companies' bottom line, rather than into voters’ pockets. That's because the tax vacation would raise demand at a time that demand is already high—which would lead directly to even higher prices.  More »

Exxon Mobil’s profits jumped 17% in the first quarter, but still fell short of expectations, Bloomberg reports. Exxon’s number, which was held back by drops in productions and refinery profit margins, looks shabby compared to the world’s other two largest oil companies, which posted 25% and 63% gains respectively. “Exxon is having trouble raising production, and that's not a good sign,” said one money manager. More »

The “McCain-Clinton” gas-tax vacation is an abomination of energy policy, Thomas Friedman declares in the New York Times . “This is money laundering: We borrow money from China and ship it to Saudi Arabia and take a little cut for ourselves as it goes through our gas tanks.” Worse than just despicable pandering, it would encourage gas consumption and drive the renewables market overseas. More »

When Congress passed its latest energy bill four months ago, the provision to boost ethanol requirements was exceedingly popular. But now, critics are lambasting that measure, and the ethanol movement in general, for linking skyrocketing food and oil prices. “We used to have a grain economy and a fuel economy,” one analyst tells the Washington Post . “Now they're beginning to fuse.” More »

President Bush conceded that “it’s a very slow economy” one day ahead of possibly ugly GDP numbers, the New York Times reports, and said Congress is dragging its feet on gas prices, the mortgage crisis, farm subsidies and student loans. The Democratic-controlled legislature should be “sending me sensible and effective bills,” he said, not ones "that simply look like political statements.” More »

Hillary Clinton has joined John McCain's call for a summer holiday from the federal gasoline tax, but Barack Obama says the move will hurt more than it helps, the New York Times reports. Clinton says she’d pay for it with a windfall-profits tax on the oil companies. “Middle-class families are paying too much and oil companies aren’t paying their fair share,” Clinton said. More »