Posts Tagged ‘exports’

From The Gulf Of Mexico To The Arctic Ocean: Offshore Oil Drilling Continues

Friday, February 18th, 2011

oil-rig.jpg
(photo credit: Stig Nygaard)

Russia needs more oil, and BP (remember them?) wants to help them get it… in the middle of the Arctic Ocean.

  • Despite growing recognition that oil isn’t a long-term energy solution, worldwide demand for petroleum has been rising. At the same time, the world’s largest oil producer is running out of that black gold. On land, anyway.
  • Drilling for oil in the Arctic carries significant dangers, both to the environment and to workers. The waters are freezing, there is little sunlight, and rescue missions will be difficult or impossible in the thick ice.
  • The U.S. and Canada also have access to the oil-rich Arctic, but they both have regulations in place that limit exploration and drilling. Still, many Western oil companies like BP are eagerly piling on to the Russian project because of the opportunity for profit.

Facts & Figures

  • The Arctic probably contains a fifth of the world’s natural gas and oil
  • By 2035, the Siberian oil fields will produce 1 million fewer barrels of oil per day
  • Drilling will begin in the Kara Sea – a former dumping ground for nuclear waste

Best Quote

“One beaten man is worth two unbeaten men.” – Russian Prime Minister Vladimir Putin, on why working with BP is a good idea even after the disastrous Deepwater Horizon oil spill

What do you think?

What should Russia do now that its biggest national export is running out? Does it make more sense to spend money on a short-term solution or a long-term one?

Strong Quarter, Weak Economy?

Friday, July 16th, 2010

Although second quarter reports look strong, the economy may start to level out.

  • Fear of an economic slowdown caused the stock markets to dip.
  • Airlines are expected to make their first annual profit since 2007  due to fuller planes and higher fares.
  • Stronger Asian economies are increasing exports, which helps struggling U.S. shipping companies.
  • Despite all this, there has been poor job growth in the U.S in the past few months.

Facts and Figures

  • New home sales fell 33%, and existing home sales fell 2.2%.
  • Air shipments (mostly Asian exports) increased 30% from last year.

Best Quote

“Bottom line is earnings may hold up, but sales growth is slow and companies aren’t going to invest their record cash holdings until it improves.” – Howard Silverblatt, Senior Index Analyst of Standard & Poor

New GDP Figures Turn Decline Upside-Down

Friday, October 30th, 2009

Could the Great Recession be over because the GDP did not shrink for one quarter?

  • The gross domestic product of the United States grew at a rate of +3.5% in the third quarter of 2009, which is the same amount as the average growth rate of the last 80 years.
  • Although jobs are still sparse and the housing market is still in bad shape, government programs helped encourage consumer spending on all sorts of goods.
  • There is still a risk of slowed growth or a dip in GDP because the third quarter’s growth can be attributed in part to strong stimulus packages, which will expire in coming months.

Facts & Figures

  • The stimulus packages that encouraged growth in GDP include the $787 billion package approved in the winter of 2008-2009 and the Cash for Clunkers program.
  • Jobless rate reached 9.8% in September 2009, despite GDP growth.
  • American exports (goods being sold outside the country) grew at an annual rate of 14.7% and imports (goods coming in from abroad) grew at a 16.4% annual rate.

Best Quote

“The big-picture perspective is that things have improved. The question is, how sustainable is this growth going forward?” – Jan Hatzius, Chief U.S. Economist at Goldman Sachs

A Duty is…

Tuesday, August 18th, 2009

A duty is a tax levied on products that are imported or exported from a different country. If a manufacturer wants to ship his product to another country and sell it there, he may have to pay a duty for sending it out of the first country and another duty for sending it into the second, depending on the tax laws in place in each country.