DrumBeat: November 17, 2007
Posted by Leanan on November 17, 2007 - 10:43am
Topic: Miscellaneous
The Cowardly Giants: Bottom line obsessed, Big Oil is forsaking the future.
Today, however, with prices approaching $100 a barrel, Big Oil has failed to ride to the rescue. The leading multinationals have grown too timid to spend aggressively on oil exploration — even at a time of record oil prices. Unless Washington adopts a new national energy strategy and finds way to pressure the majors into changing tactics, Big Oil — and the United States — could face serious trouble ahead....Some might argue that this is nobody's fault; there's just less new oil out there to be discovered these days. But in the same period, the next 20 largest U.S. firms — companies like Marathon and Devon — steadily increased their exploration spending, and now dish out as much as the majors despite having one third the operating cash. As a result, their production has climbed from 1.55 million barrels a day in 1996 to 2.13 million today. As this suggests, there's still more oil out there for those willing to look hard enough.
Can Saudi square the oil circle? - The world's largest oil producer could soon find itself over a barrel
Yet in the heart of the empty quarter to the south, Shell and other oil majors are searching in vain for new deposits. The Saudis opened up the region to overseas exploration in the 1990s when oil prices were barely in double figures. The empty quarter was hailed as one of the few big opportunities for the majors to get a foothold on the world's largest oil producer. Yet so far the appraisal wells have come up dry. No journalists were flown out to visit this particular area last week. 'Whether that's a sign the Saudis don't have as much oil as they say they do, we just don't know,' says Samuel Ciszuk of analyst Global Insight.
How should I prepare for life without oil?
We aren't very good at envisaging a post-fossil fuel lifestyle. Although we happily talk about the price of organic vegetables or even the true cost of fish, the soaring price of oil remains anathema in lifestyle circles. Odd because there's nothing that threatens our hydrocarbon-dependent lifestyles more.
Venezuela refinery outage hits local gas market
A problem at the key cat cracker unit of the 200,000 barrels per day Puerto la Cruz refinery has hurt gasoline supply to the Venezuelan market since Friday, the state oil company PDVSA said on Saturday.An unspecified "event" at what is a refinery's most important unit prevented PDVSA mixing gasoline at the refinery for 48 hours, the company said in a statement.
Thunder Horse platform payoff a long time coming for BP
After fiascos involving its stability and even its very name, BP finally has its eye on the silver lining — a huge deposit of oil and natural gas under the Gulf of Mexico that will boost the company's bottom line as well as the nation's declining production."When it's fully up to speed, it's 250,000 barrels a day. That's significant production at a time when we're trying to get as much energy security as we can," Bob Malone, chairman and president of BP America, said after his first visit to Thunder Horse last week.
It's been a long time coming, a decade since BP discovered the oil field with up to 1.5 billion barrels beneath 6,000 feet of water.
President Bush to Veto Anti-OPEC Legislation
U.S. President George Bush would still veto legislation allowing U.S. institutions to sue the Organization of Petroleum Exporting Countries for what some lawmakers claim are its actions in pushing up oil prices, the U.S. energy attache in Saudi Arabia said Friday."We don't think this legislation has a high likelihood of passage and President Bush has indicated that he will veto it if it is passed by Congress," Shannon Ross told OPEC delegates and officials at the Heads of State meeting here.
Brazil Eyes Nuclear Sub to Defend Oil
SAO PAULO, Brazil (AP) — This month's discovery of a monster offshore oil reserve justifies Brazil's plan to build a nuclear submarine because it would be used to protect the find, the defense minister said."When you have a large natural source of wealth discovered in the Atlantic, it's obvious you need the means to protect it," Nelson Jobim said Thursday at a defense conference in Rio de Janeiro.
US lawmakers alarmed by Chavez's plan for nuclear energy program in Venezuela
Two Florida congressmen said Friday that Washington should be alarmed by Venezuelan President Hugo Chavez's plans to develop a nuclear energy program while building close ties with Iran.
Oil price could hit $150 a barrel
Oil could reach $150 a barrel and needs a new system of pricing that would take the power out of the hands of financial speculators, Opec delegates at a special summit in Saudi Arabia were told today.While no one wanted to feed further fear into the market, industry players spoke behind the scenes about prices going up to $125 or even $150, said Kuwait-based consultant Usameh Jamali.
Asian leaders aim for green region, promote nuclear energy
Asian leaders from 16 countries will pledge to increase the region's forest cover by 2020 and promote the use of nuclear energy during their annual summit here next week.
Asia's potentially dangerous oil addiction
When leaders of the world's most powerful energy cartel meet in Saudi Arabia today, it will underline Asia's increasing reliance for vital oil supplies on the politically volatile Middle East. The summit, only the third in the 47-year history of the Organization of Petroleum Exporting Countries (OPEC), will seek long-term assurances of demand for OPEC oil. Only then will OPEC be prepared to invest in new production capacity.
Maine Governor moves to guard fuel supply
Record high oil prices and a desire to be prepared for potential fuel shortages this winter are prompting the state government to develop an energy emergency management plan.Gov. John Baldacci said Friday that he is setting up an energy task force to help coordinate state resources.
Fuel shortages or price spikes during the heating season could lead Baldacci to declare energy emergencies and take steps needed to protect public welfare, such as opening shelters and monitoring price gouging.
‘Help save us from global warming disaster’ Science fiction now science prediction?
London lies devastated. Many thousands are dead and millions are homeless after a freak storm floods the city. The Millenium Wheel no longer turns as it is half submerged under water. Big Ben can only peep its head above the deluge. Trafalgar Square, Whitehall, the Docklands. All have fallen victim to the biggest natural catastrophe the earth has ever seen.
In the hopes of arriving at a collective agreement, Petro-Canada today notified the Communications, Energy and Paperworkers Union (CEP Local 175) at the Montreal Refinery that management is assuming operations and unionized employees will be locked out.
High food prices could help the very poor
Most of the world’s poor live in the rural backwaters of Africa, Asia and Latin America. Most of them are small farmers or landless farm workers. The overwhelming majority of them are starting to benefit from the present rise in global food prices. They would benefit even more if governments would allow markets to do their job. China for example, long ago in Maoist times the friend of the peasant, controls food prices to keep its city people happy.
Global Refining Capacity Shortage: One Way Out
Global energy needs are likely to grow steadily for at least the next 25 years. The International Energy Agency (IEA) reports that if the world continues with the current energy-related policies, its energy needs would be more than 50 percent higher in 2030 than now. Over 60 percent of that increase would be in the form of oil and natural gas; much of this demand would be centered on gasoline and distillates.Despite this ever-rising demand, the global refining capacity has been steadily shrinking. The capacity has decreased to 103 percent of the total oil demand in 2004, down from 109 percent in 1990 and 107 percent in 2000. Prime reasons for this trend are traditionally low profit margins and stiff regulations.
Oil’s Next Big Move: The Unseen Reason Why $150 Oil May be Right around the Corner
There is at least one obvious reason why oil prices could soon hit $150 a barrel, namely: some sort of military confrontation between the United States and Iran. But there is another, unseen reason why prices could go that high in the coming months.
Oil’s Next Big Move: The Unseen Reason Why $50 Oil May be Right around the Corner
There is so much “dumb” money in the oil market right now that unsophisticated traders could suddenly “panic,” sending the price down to $50 a barrel or lower.That’s the expert opinion of Peter Fusaro, a noted observer of energy trading markets who publishes a directory of energy hedge funds.
Global zerophobia has made a monster of $100 a barrel oil
What a difference a single dollar makes. As a matter of fact, almost like a mind-altering-shock wave, a global hysteria, a cry of the consumer to be heard around the deepest corners of the globe, in addition to being 'breaking news' to the hearts content for the glitzy-TV-media-machine.
Bahrain says oil undervalued due to weak dollar
The price of oil is undervalued due to the dollar exchange rate, Bahrain's oil minister said on Saturday, in the latest expression of concern in Gulf Arab states over the sliding U.S. currency."If you look at the exchange rate, of course it (the price of oil) is undervalued," Abdul-Hussain bin Ali Mirza, head of Bahrain's National Oil and Gas Authority, told reporters. He declined to say what the fair price of oil would be.
Turkmenistan energy project challenged
U.K. environmental analysts are questioning the integrity of Turkmen hydrocarbon projects.Critics have said that deals to increase extraction of resources do not take into account environmental protection. According to the London-based Institute for War and Peace Reporting, environmentalists are calling for the authorities in Turkmenistan to conduct monitoring of the damage to the environment caused by extraction and processing. The country currently ranks fourth in the world for natural gas extraction.
Iraq says security boost helps oil flow
"The security situation in Iraq over the last year has not helped the oil industry in the country to produce as much as Iraq can produce and make available to the world market," Hussain al-Shahristani told reporters this week on the sidelines of an OPEC summit."However, in the last couple of months there has been very significant improvement in the security conditions in the country," he said. "We have been producing more oil. As a matter of fact our production has almost reached 2.5 million bpd, up from about 2 million a few months ago."
Alaska oil production has been in a long, slow decline for years, but employment in the oil fields is booming, a state labor economist said Wednesday.Oil and gas employment is expected to reach 11,400 people this year, up from 10,200 last year, said Neal Fried, of the state Department of Labor.
Argentina Oil, Fuel Export Tax Gives Government Short Term Gains
The Argentine government's decision this week to sharply hike oil and fuel export taxes will help fill state coffers in the near term, but is expected to further undermine much-needed investment as the nation coasts toward becoming a net oil importer.
Ecuador: Much to Gain from Rejoining OPEC
President Rafael Correa said Thursday that Ecuador stands to gain a great deal from rejoining the Organization of Oil Exporting Countries, such as access to loans from other OPEC members and to "privileged information on petroleum issues."
Pertamina looking to raise standing
Left behind by other national oil companies, Indonesia's state oil and gas company PT Pertamina is pursuing overseas expansion in Latin America, Africa and the Middle East to improve its output and global standing.
Citgo Scales Back in U.S. To Fund Chávez's Goals
In 1997, one of every 10 gallons of gasoline U.S. drivers bought came from a Venezuelan-owned refiner, Citgo Petroleum Corp. That year, a student at Oxford University wrote a thesis saying Citgo was cheating Venezuela's people by investing too much in the U.S., and should send more cash home.The student, Juan Carlos Boué, drew scant attention until four years ago, when Venezuela's populist president, Hugo Chávez, took control of the state oil apparatus. Today, Mr. Boué is an influential member of Citgo's board. And Citgo, which Venezuela bought two decades ago to market its hard-to-refine heavy oil, now has a different focus: feeding cash to Mr. Chávez's program to build socialism in Venezuela.
The Philippines: Beneco 'unprepared' for energy crisis
THE Benguet Electric Cooperative (Beneco) has admitted it does not have contingency measures to address the looming energy crisis, projected to take place in 2010.
US power company linked to Bush is named in database as a top polluter
An American power company with close financial links to President George Bush has been named as one of the world's top producers of global warming pollution.
Climatologist wants halt to coal plants
At 66, one of the nation's most prominent climate-change scientists says he's more interested in finding solutions than placing blame for a warming planet.One key solution, physicist James Hansen said Friday: No more coal-fired power plants like the one Duke Energy plans to expand 50 miles west of Charlotte.
Are Hedge Funds Summiting Peak Oil?
Oil’s recent flirtation with the $100 per barrel mark is a strong message that our country is completely reliant on “black gold” and the world’s supply is in precarious balance. Hedge fund speculators tend to aim at areas under surges in demand or shortages in supply. They don’t tend to run out and buy Florida real estate right after the bubble has been pricked. But, why oil? Why is the energy sector of hedge funds now larger than all other hedge fund-focused industry sectors combined? Is the answer Peak Oil?
Shell Restarting Ursa Oil Platform in US Gulf
Royal Dutch Shell plc (RDSB.LN) is restarting production at its Ursa platform in the Gulf of Mexico, spokeswoman Darci Sinclair said Thursday.The platform, which produces nearly 100,000 barrels a day, was shut around Nov. 3, and a short maintenance down time was prolonged by strong ocean currents that prevented divers from making unexpected repairs.
Nigeria: Mend Breaks Militants' Deal With Gov Uduaghan
Movement for the Emancipation of the Niger-Delta (MEND) has broken the unwritten pact, which the Delta State Governor, Dr. Emmanuel Uduaghan, had with militants in the state not to attack oil installations in the state following the unexpected bombing, Thursday, of the Shell Petroleum Development Company (SPDC) crude oil delivery pipeline to the Forcados Export Terminal in Delta State.
Iran Gas Plan Would Almost Double Output From Current Level
Iran plans to almost double its natural gas production to 200 billion cubic meters a year by 2012, an official at the country's national gas company said Friday."We are investing heavily in developing our gas sector, and increasing capacity, despite the hurdles that are facing us," Saeed Ghavampour, head of strategic studies at the National Iranian Gas Co., told Dow Jones Newswires in an interview.
Peak Oil: Global Supply Quickly Spiralling Downward
Two closely interrelated and potentially devastating crises will dominate economics, politics and daily life in the 21st century – global warming and peak oil.
While Saudi Arabia touts the oil reserves of its barren 'Empty Quarter', a B.C. inventor toils to turn the entire energy world on its head.
Garage scientist aims to thwart OPEC
Cold fusion would solve world's energy woes. Trouble is no one so far has made it work.
Saudi Arabia Not Alone in Defending Dollar in OPEC
Saudi Arabia's decision to exclude the falling dollar from discussions at this weekend's OPEC summit was supported by others within the producer group, Angola's Finance Minister Jose Pedro de Morais said.
OPEC summit final statement expected to include 36 articles covering axes
Final statement of the Third OPEC summit, to start here later this evening, is expected to include 36 articles covering the conference's three axes, Providing petroleum, Promoting Prosperity and Protecting the Planet.
Facing the 21st century in a mountain town
The geologists can argue until the cows come home about whether we’ve reached “peak oil,” but no one seriously argues that the stuff is going to get cheaper, aside from the usual market fluctuations, in coming years. And even if the U.S. once built a coal-powered national transportation network that used petroleum only for lubrication, the current system relies on gasoline, diesel fuel and jet fuel.So if you need tourists to support your local economy, you have to wonder how they’ll arrive.
Civil Rights and Suppression of Terrorism
We know that peak oil is upon us. Already oil prices are skyrocketing, food prices are behaving similarly. This causes a squeeze on disposable income which will result in a recession. We can fully expect to live the rest of our lives out during a state of economic decline.
Alaska Senate Committee Reverses Decision on Tax Hike
The Senate Finance Committee reversed its course Wednesday night and decided to back Gov. Sarah Palin's tax hike on oil companies' net profits.By agreeing to raise taxes from 22.5% to 25%, the committee essentially paved the way for the bill to pass in both houses before the session ends at midnight Friday.
Russia eyes 5.2% oil output jump
Russian oil output will jump 5.2% between now and 2010, according to the country's Energy Minister Viktor Khristenko....The jump in production owes itself to new projects in Eastern Siberia, offshore production at Sakhalin and the Arctic north, the paper said.
Saudi may revalue, won't drop dollar peg
Saudi Arabia could consider revaluing the riyal with other Gulf oil producers, but has no plans to drop its peg to the sliding dollar to track a currency basket, a source familiar with Saudi currency policy said.
Nigeria worried about impact of $100 oil on demand
The surge in oil to nearly 100 dollars a barrel has raised "significant" concerns that the high prices will hit demand in the longterm, Nigerian Oil Minister Odein Ajumogobia said Saturday.The minister, speaking on the sidelines of a summit of leaders here, said: "There must be concern that the high price will eventually surpress demand."
Oil prices lower than 'real' value: Ahmadinejad
Iran's president Mahmoud Ahmadinejad said on Saturday that crude prices, hovering close to 100 dollars a barrel, are still lower than the actual value, the state news agency IRNA reported."The pressure on the fossil energy (oil) market is not artificial and the price of this commodity is lower than its actual price," Ahmadinejad said before leaving Tehran for an OPEC summit in Saudi Arabia.
Chavez launches initiative to back OPEC, Iran
Venezuelan President Hugo Chavez pursued an ambitious diplomatic mission Saturday aimed at persuading OPEC nations to maintain oil prices at their current level, defending Iran's nuclear program, and stepping up efforts to get Colombian rebels to release hostages.
Peak Oil Passnotes: Neo-Liberalism's Ultimate Failure Part 2
We pointed out last week that this column does not put any faith in the current system of economics loosely known as neo-liberalism or “free markets”. We have noted that despite its ideologically rigid application around the world for the last 25 years, it has done nothing to create a supply cushion in oil markets. Instead what it has done is pass giant profits to the most powerful organisations within the industry, privatising the profits and socialising the costs.
Fire erupts at Iraqi oil reservoirs in Baghdad
A huge fire erupted at oil reservoirs in southern Baghdad on Friday.In a press statement, Iraqi security sources said the fire was caused by an exploding generator at the reservoirs' site in Al-Lateefiyah.
Peak Oil? Peak Gas May Not Be Far Behind
Is the global natural gas pipeline half full or half empty? In other words, is the world's natural gas production headed for a peak along the lines of that expected for oil? Whatever happens, and whenever it happens, industry executives, analysts and even a few ministers from gas-exporting nations are beginning to acknowledge that demand for natural gas cannot continue to increase at the accelerating rate of recent years, or that projected for the future. If gas supplies are limited in the future, whether by geology or geopolitics, consumers at all levels will effectively be challenged to find an "alternative alternative," since gas is already viewed as the preferred substitute for both oil and coal.
Kuwaiti oil official optimistic about results of Riyadh OPEC summit
Speaking to KUNA on sidelines of the summit conference, the Kuwaiti official said OPEC was capable of achieving aspired objectives, noting that the summit gained its significance as the world oil prices reached unprecedented levels.
Zambia to shut sole refinery over crude oil crunch
Zambia will shut down its sole oil refinery for 12 days due to shortages of crude oil feed stock, prompting oil marketing companies to start importing fuel from next week, a government minister said on Saturday.
Grim climate change report prompts UN call for 'breakthrough'
The world's top scientific authority on climate change published on Saturday its starkest warning yet, declaring that the impact of global warming could be "abrupt or irreversible" and no country would be spared.
Zambia is just one example of how the "rich" countries are able to outbid the "poor" countries for oil and petroleum products.
The list of countries that are now facing fuel, gasoline, diesel, oil, and other supply problems gets longer by the day. A few countries facing such issues include (in no particular order): Zimbabwe, Jamaica, China, Argentina, Ghana, Malaysia, Uganda, Trinadad & Tobago, Australia, Rwanda, Iraq, Kenya, Burma, India, Bangladesh, Niger, Nepal, Bolivia, and the Philippines. Some of these are simply have rising prices, or trouble getting diesel to needed locations. Others are being priced out of the market.
This makes me think that a hard crash is less likely, and that the world economy will probably behave similar to the way it did in the 70's. I guess we will see.
Michigan - New Culture - Value System - Local Future - Americanus
Value System: Gas Prices, Money, Peak Oil and The Future
Local Future Network
Yes. I think a lot of peak oilers underestimated how unequal the demand destruction would be.
Even within the US...there have been chronic shortages of fuel in the midwest since spring, but the rest of the country is more or less unaffected, and there doesn't seem to be any real urgency to fix the problem.
Demand destruction is already having an impact on the poor. What happens when these folks can't afford to drive to work? What happens when they stop buying at Wal*Mart and start going to thrift stores?
Again. The assumption is that we will get
a soft parachute glide to the surface.
The place we "floated" from is the problem we're
leaving behind.
Too late.
The Vortex has "sucked up", is catching, the various countries
mentioned above, being "outbid" for energy.
TPTB just injected $47 billion into the system
Thursday. Where did the Fed get $47 billion?
Meanwhile, the US OECD consumer is/has been shielded from
the $95 crude for as long as possible.
The reason the pundits, consumers have been able to
say that high energy prices haven't impacted
us OECD folks yet.
That will no longer be the case going forward.
Elaine Supkis/Reuters:
" The Fed injected $47.25 billion in temporary reserves, its biggest combined daily infusion since September 19, 2001, to calm a rise in overnight interbank lending rates."
For the Fed want to KEEP THIS GOING. They want to have us run more war costs, spend more on the military AND spend like crazy on consumer goods and real estate! This can't go on for the simple reason, wars always cause inflation since they are run by governments and there are only two ways a government can run a war: looting or taxes! We are trying the looting and it doesn't even begin to cover the costs! And we cut taxes at the beginning of these wars. So the entire model is set to failure. While trying to steal the Ring of Power from the Saddam dwarf, all we ended up doing was create this Dragon, Fafner of China. Now the dragon wants to fry us."
ADHD like Memmel 8D
I suspect we may see an effect on the dollar exchange rate following the OPEC meeting, I don't think they are very happy with the current value.
Xeroid.
interesting that you say this:
Right now Venezuela and Iran are trying to force
the meeting to issue a statement on the Dollar.
The KSA is blocking it.
" NEW YORK, Nov 15 (Reuters) - The Federal Reserve on Thursday pumped its biggest temporary daily infusion into the U.S. banking system since just after the Sept. 11, 2001 attacks as short-term lending rates rose on both sides of the Atlantic.
Even though some news about bank write-downs from riskier investments was not as dismal as some investors had feared, underlying strains pushed overnight lending rates up in both the United States and Europe.
"There was a bit more focus on the Fed operations today in context of the rise in Libor (London Interbank Offered Rates)," said Tony Crescenzi, chief bond market strategist at Miller, Tabak & Co. in New York."
Arkansaw of Samuel L Clemens
You can access all of the historical data about Federal Reserve daily Temporary Open Market Operations (TOMOs) online here. (Although one wag recently nicknamed them "POMOs" - Permanent Open Market Operations.) The historical data is accessible from that link. If you go back, roughly since the end of August this year, every single Thursday has been "injection day" for the Fed. Every Thursday has seen the creation of $20-$47 billion in new money, from thin air, thrown at Ben's bankster buddies to rescue their incompetent asses. If you go back further though you see how unusual this activity actually is. The further back you go, at least until around 2001, the weekly total of injections was tiny in comparison to what we see now. And worse, the daily injections for days other than Thursday are growing in size. From nearly nothing to a few billion to several billion to now, this autumn, many daily injections are more than $10 billion per day. Ben is printing money as fast as he dares in an effort to stem the deflationary tide that is running out on him. The question is whether he can continue to print at this rate (or even faster) as losses mount up and imaginary dollars leave the financial system or whether the world may just walk away from the dollar before he has a chance to hyperinflate it.
"The greatest shortcoming of the human race is our inability to understand the exponential function." -- Dr. Albert Bartlett
Into the Grey Zone
My understanding is that these injections are attempts to keep interest rates down now that the economy is no longer growing and we have peak oil induced inflation. ( stagflation ) No one is willing to take risks without high returns. What these injections indicate is that the Fed has lost control of interest rates because they are going against the needs of the market. The Feds can only control to some extent the magnitude of the economy and then in general only when its growing. They cannot change the direction of the economy and they are actually as its becoming more obvious unable to control interest rates. We pretty much have no choice but to undergo a period of high interest rates so investors can recover all the capitol they have lost over the year.
The Fed in trying to stop this could well destroy itself.
TOMO's and POMO's are two completely different things.
POMO's are permanent and don't expire short term.
The last POMO was on 05032007
http://www.newyorkfed.org/markets/pomo/display/index.cfm
And the numbers you mention are wrong, they fail to consider TOMO expirations.
I just posted a link in response to someone else.
People are looking at the wrong numbers while howling for a bail out. Low interest rates just devalue the U$S. If the people whining for adjustable rate relief had any idea as far as what they are doing they would be looking at LIBOR rates that are overwhelmingly used for rate resets. People need to learn to read the papers they sign.
So far LIBOR has been going up while US rates have been going down.
That's unfair. I think the dragon just wants to lick us slowly until it gets to the soft chewy center.
Rollovers accounted for $40.5 billion of the $47.25 billion injected into the banking system. The FED consistently rolls $40-$45 billion weekly.
Wrong, they added 6.75B on thursday and removed 14B on friday.
http://www.gmtfo.com/reporeader/OMOps.aspx
There is also a link to the NYFed website at the bottom.
Not to say that we aren't going down like Wiley Coyote, but lots of radical political activists use incorrect data because they want to shift burden.
Wrong, $40-$45 billion is "sloshing".
Sure, but the liquidity added or withdrawn on any given day is the net.
I think we're already finding out.
But it will look like a normal recession, and probably most won't connect it to peak oil. They'll try to grow their way out of it, as usual.
There are already signs that this isn't going to be a good holiday season. Food pantries are running out of food, but have more clients than ever. Discounters like TJ Maxx and Overstock.com are flying high, because rafts of unsold merchandise allow them to offer better stuff for lower prices. Even JC Penney, a bright spot in retailing, issued a warning last week. Mall traffic is way down, and even the best products won't sell if customers aren't in the store.
And then there's heat. Every day, I come across stories about how the poor are struggling to pay for winter heating. Towns, cities, counties, and states are trying to increase heating aid to the poor.
My girlfriend is on the board of a local food pantry. They essentially serve the working poor around here, and to get food people need a referral from somewhere.
What she is seeing is that demand is way up - that started months ago. We speculated that some of it might be the crash in the housing market. Less need for the folks in the building trades and all that. But this is only a guess. Most of the clients are Hispanic - that's just the demographic of the working poor in this area.
They recently had a food drive where the Boy Scouts did the legwork of collecting the food, and for some reason donations were way down. They are still trying to get their heads around why this happened. Part of it is that some of the donations got diverted to a church - perhaps they are going to set up their own food pantry, but that doesn't explain all of it. Perhaps people who would donate are getting squeezed, and cutting back there as well.
Poor and working class are a lot more generous with in kind donations to food pantrys. Boy Scouts are a white, middle and upper class phenomenon and might not be as attentive to that type of project too. What part of the country do you live?Bob Ebersole
Arlington Virginia. Just across the river from Washington DC.
The articles I've read have blamed several factors, including increasing reluctance by supermarkets and restaurants to donate food. (Fear of lawsuits, and more efficient inventory control.) There's less food from the US government, because there's less surplus this year. But probably the biggest factor is that people are being squeezed. They aren't donating as much to churches, the United Way, and other charities that often donate to food banks. People who can't get enough gas to get to work or can't pay their mortgages can't donate as much. In May, postal workers ask people to put nonperishable foods by their mailboxes for local food pantries. They collected about half what they usually do.
I read somewhere that the poorer you are, the greater percentage of your income you donate to charity. Not sure exactly why. Part of it might be that if you're poor, any donation is a greater percentage of your income than for a rich person. Part of it might be that the poor are more likely to be sympathetic to those in need. And it might be cause and effect: generous people are more likely to be poor, because they keep giving their money away.
Whatever the cause, I suspect donations will drop as the poor and middle class are increasingly squeezed...and it won't be made up by the well off, no matter how well they are doing.
RichW
I volunteer at the local food bank. We are seeing the same story. The local "*way" won't donate due to a law suit some where in the chain. Two other regional chains won't donate for the same reason. There is also a reglious organization that has set out to dominate the local food program. They say that there should be only one food distribution point. The result is some of the local donors won't give to anyone because they don't want to be dragged into the bickering.
The demand is up also because of the housing situation and an increase in unemployed illegals that want to stay here with their familys instead of going back to Mexico when the jobs run out. With donations down and demand up the food bank is forced to rely more on purchases and government grants. That still doesn't make up for the lost donations though.
In our town, the community garden program and the local food bank are linked. In addition to the plots that people like me rent, about half of the land is dedicated to growing vegies for food bank clients. Local college and HS students provide volunteer labor to raise the food. This is an excellent program, and needs to be duplicated everywhere.
Food banks in desperate need
One family profiled in the story makes $7,500 a month, has a cow and goat for milk and chickens and ducks for eggs...and still has trouble making ends meet. Even with six kids, that's kind of hard to believe.
They are on crack.
Queen Creek is about 15 miles from here and just a little more affluent.
I can live like a king with monthly expenses of about $600.00
When you have people making $7500.00 a month taking from the food banks, then there is no wonder the homeless have to go without.
Yes, they need to cut out the cable TV, get rid of the iPhones etc cut the fat out of the budget.
they may well be paying 1/3 of their income in taxes, so you need to take that into account. May have bought their house right at the RE peak in 06 too.
But they need to do what they can.
Paying $15 for food that a "store would charge $30 for" is a scam. They pick the foods and you pay X for a basket, that sux. You can go to wal-mart etc and shopping carefully, picking the right foods and brands, come out further ahead than that.
$7500 a month is huge money, it's very hard to make that in the SF Bay Area, "physicians assistant" may mean emptying bedpans, I always knew shoveling sh!t in one form or another is better than hi-tech.
No, a "physician's assistant" is someone licensed to practice medicine under the supervision of an MD. It doesn't mean emptying bedpans. It's like being a doctor without the huge cost of an MD degree. Originally, it was a way to get medical care to rural areas, because there weren't enough doctors.
Many HMOs, including mine, allow you to choose a physician's assistant instead of a doctor as your primary care provider. Many people prefer physician's assistants, because they supposedly spend more time with patients than doctors.
Similar story in my area:
"After sending her two teenage children off to school, Mullen, of Milton, headed to the Chittenden Emergency Food Shelf in Burlington, where she hoped her holiday bird would be waiting. When she reached the food shelf, she was told she'd have to come back today to pick up her turkey. The food shelf had run out. ... because donations to the nonprofit have dropped substantially this holiday season."
The strange thing is, the woman featured ended up driving far enough, twice, to pick up her "free" turkey, that she spent as much on gasoline as a turkey would have cost at the local supermarket. (Assuming she drove a typical low-budget car for that purpose only, which I don't know she did.)
I think that many people take the gasoline expenses as a given (only grumble about the price), and don't connect them to their everyday driving choices. Thus that $7500/mo family may have many expenses that are invisible to them, e.g. cable TV and multiple cell phones... and of course 2+ cars that drive out every hour or so. And an electricity bill of hundreds a month.
I think the very poor do take gasoline into account. They have to. There was an article in the McPaper three years ago about it. The working poor were forced to change their shopping patterns, due to gas prices. No more Wal-Mart, because the cost of gas to get there was more than any savings. And they always considered distance, not just cost, when choosing a restaurant. Some were moving closer to their jobs.
Three or four years ago, Fortune ran an article warning that Wal-Mart was a company built around cheap energy prices, and might suffer if that changed. I think that's 100% true. I've pointed that out more than once, leading some to believe I have an irrational hatred of Wal-Mart. Nope. Wal-Mart is now the first to admit that high gas prices are killing them - more so than other companies, because of their structure and their customer demographics.
I do have an intense dislike for WalMart and all it represents, if they fail due to peak oil or another major disturbance, the party is on me.
We shop at Wally's but don't buy anything from China. Gotta be product of USA or Europe, but basically USA is what we look for. Yes, we're the ones inspecting the cans of blackeyed peas to see where they're from. (All either don't say or say product of USA.)
The local Wally's employs a lot of nice people, will hire old people, offers cheap eye exams and other medical treatment, and in general allows poor people to get things they may not get at all otherwise. Like enough dry milk to last the month or a pair of glasses.
Try explaining to the same poor people that they're poor because of unbridled capitalism ..... I don't even want to try.
Collapse may finally bring to the USA the kind of system, Autarky, that we need.
the cure for antrax is death
the cure for igc is collapse
and that is why peak oil is a hard sell
(igc = infinite growth capitalism, or infinite growth canabalism)
With the creeping corporatism of the past decades, you can't even rely on "Made in" statements anymore. Standards have been modified to such a great extent, at the insistence of multinational food processors, that a product can be simply wrapped in Canada and bear the Made in Canada stamp when the points of origination and processing are all otherwise offshore.