The Prize: Oil

The House and Senate voted today for a pause in deposits to the Strategic Petroleum Reserve in an effort to stem rising prices, the Los Angeles Times reports. The White House expressed skepticism about the measure, but the Senate backed it 97-1 and the House passed a similar bill 385-25. It is expected to be sent to Bush within days. 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 »

A majority of economists think the upswing in food and energy prices is due to fundamental issues of supply and demand—and not driven by speculation, a Wall Street Journal survey finds; 51% pegged demand from China and India as the chief cause of the oil boom. 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 »

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 »

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 »

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 is facing a shareholder revolt by most of John D. Rockefeller's 300 descendants, who are pushing for the mammoth company to go greener, reports the Wall Street Journal . The Rockefellers are campaigning for Exxon to develop new energy technology, cut greenhouse gas emissions and appoint a new independent chairman. The revolt is opposed by Exxon senior management. More »

US analysts estimate that record-breaking oil prices and a fall in insurgent attacks on pipelines will boost Iraq oil revenue this year to $70 billion—double earlier estimates, the Wall Street Journal reports. The latest figure has sparked a call among US lawmakers to demand that Iraq pay more of its reconstruction costs. But the White House has warned that slashing aid could prolong the war. More »

The president of the oil-producing cartel OPEC has warned that the price of the black gold could spike as high as $200 a barrel. As crude hovered just below the $120 barrier, Chakib Khelil told an Algerian newspaper that disruptions in production in Britain and Nigeria, coupled with a weak dollar and investor speculation, will keep prices rising. More »

Truckers led a convoy of vehicles around the National Mall today in Washington to protest high fuel prices, the AP reports. Drivers from the group Truckers and Citizens United converged on DC for an afternoon rally to try to influence Congress to end oil-company subsidies, supplement supply with oil from the strategic reserves, and end Alaskan petroleum exports. More »

Just about every week seems to bring another entry into the field of celebrity fragrances, but the news that architect Zaha Hadid has her own scent moved I.D. Magazine to ask industrial designers how they'd approach the process. Hold your nose for this sampling: France's Inga Sempé gets equine with an unnamed "blend of horse dung, gasoline, milled iron, and parma ham"—in a bottle strung with animal hair. More »

Oil and gas prices could double in the next four years, analysts say—with $7 per gallon possible by 2012. "It is increasingly clear that the outlook for oil supply signals a period of unprecedented scarcity," an analyst at investment bank CBIC tells MarketWatch. More »

As heating-fuel costs climb, millions of Americans are behind on electric and gas bills—and a record number will face a shutoff over the next 2 months, the New York Times reports. A federal grant program to help beleaguered consumers keep the heat on covers just 35% of a winter's fuel costs, and states must decide whether to spread meager aid among many or provide more help to a few. More »

The government is pumping 60,000 barrels of oil a day into a “rainy day” reserve, but with oil prices at a record high, many argue that it’s already raining. That includes the presidential candidates, all of whom want to at least stop adding to the Strategic Petroleum Reserve—and Hillary Clinton wants to release some of it. But President Bush maintains that the reserve is untouchable. More »

Wal-Mart nosed out Exxon Mobil for the second consecutive year to land atop the 2008 Fortune 500, with $37.7 billion in revenues, the magazine said today. In profits, the oil company far outstripped the megaretailer. Three of the top 5 on the list were oil companies, the AP reports. ChevronTexaco (No. 3) and GM (No. 4) swapped places, and ConocoPhillips again rounded out the top 5. More »

A barrel of crude could end up averaging more than $100 this year, federal handicappers are predicting, just weeks after the triple-digit mark seemed like a troublesome anomaly. OPEC’s parsimony with its reserves, spiking demand worldwide and a dwindling supply outside the Middle East are conspiring to squeeze rates—and last month’s record close of $110.33 might not be the worst of it. More »

Millions of land mines and unexploded artillery shells left over from World War II are hampering Egypt's efforts to get at a treasure trove of oil and gas beneath the desert, der Spiegel reports. The ordnance is an unwelcome reminder of the North African conflict between Brits and Erwin Rommel’s Nazi forces. More »