Tag Archives: california

Business/Economics, International, U.S.

What Economic Recovery? New York Times sells off 16 regional newspapers to sinister foreign company, hundreds of layoffs planned

“The sale of our Regional Media Group will enable The New York Times Company to continue our transformation to a multi-platform media company and further sharpen our focus on the development of our brands nationally, globally and in the northeastern U.S.”-New York Times, memo to employees

The New York Times has been in business since 1851, it even survived the Great Depression, now it has sold off its Regional Media Group to raise much needed cash!  But was it for economic reasons?

Late December 27, the New York Times announced it made a deal to sell Regional Media Group to Halifax Media Holdings (aka Halifax Media Group), for $143 million in cash.

Regional Media Group consists of 16 regional newspapers and other related businesses.  Those newspapers and other publishing businesses are spread from the southeastern U.S. to California.

Halifax Media Holdings is reportedly a foreign company, but is listed as based in Florida. The State of Florida’s Division of Corporations says Halifax Media Holdings didn’t register with them until October 2009.  Since the news of the deal was first leaked last week, Halifax Media Holdings removed their website from the internet (website was listed as Halifax Media Group)!

Even though the State of Florida shows Halifax Media registering in October 2009, the Daytona Beach News Journal (owned by Halifax Media) claims the corporation was founded in 2010: “Founded in 2010, Halifax Media is headquartered in Daytona Beach, Florida. The company’s investment group includes Stephens Capital Partners LLC, Jaarsss Media, and Redding Investments. Halifax’s strategy is to invest long-term capital in quality companies positioned in strong markets that are closely connected to the community.”  

The various forms of company names using ‘Halifax Media’ in the title adds to the sinisterness.  There is also a Halifax Media Co-op in Nova Scotia, Canada, which began in February 2009.  It claims to be part of a grassroots socialist media movement started by The Dominion News Cooperative in 2003.

The Dominion News Cooperative does not have any corporate headquarters, they are decentralized and operate ‘guerrilla’ style.  They claim to be anti-corporation which would make them unlikely to be part of the Halifax Media Group.  However their stated purpose of conducting media operations at grass roots level is similar to the Halifax Media Group’s desire to take over media operations “…that are closely connected to the community.”

Whether or not Halifax Media Holdings (aka Halifax Media Group, aka Halifax Media Acquisition) is connected to Halifax Media Co-op, it’s interesting that since 2009 (when Halfax Media Co-op started in Canada) this secretive, possibly foreign controlled corporation, has been quietly buying up U.S. newspaper publishers.

Halifax Media has also given warning to the hundreds of employees of Regional Media Group.  The Atlantic published an article with the full New York Times memo to its employees, which include statements like:“…you will be notified within the next 48 hours whether the buyer will be offering you employment. The New York Times Company has not been involved in that decision.”

Also, in the official New York Times memo, company officials stated they did not put Regional Media Group up for sale, it was Halifax Media that came to them demanding to buy it: “While it [the sale of Regional Media Group] was not planned, we were approached by Halifax Media Holdings LLC.”

Mmmm

 

International, U.S.

NAZI-land & Military crimes: 8 U.S. soldiers murdered a fellow soldier in Afghanistan, tried to make it look like suicide, second case of ethnic cleansing within the U.S. military in Afghanistan

Danny Chen, a 19 year old infantryman assigned to Company C, 3rd Battalion of 25th Infantry Division, in Afghanistan, died on October 3, 2011.  Initial reports said he shot himself in the head.

Now the U.S. Army has charged eight U.S. soldiers in connection with Chen’s death: 1st Lt Daniel J. Schwartz, Staff Sgt Blaine G. Dugas, Staff Sgt Andrew J. Van Bockel, Sgt Adam M. Holcomb, Sgt Jeffrey T. Hurst, Sgt Travis F. Carden, Spc Thomas P. Curtis and Spc Ryan J. Offutt.

They are charged with dereliction of duty, maltreatment, involuntary manslaughter, assault consummated by battery, and reckless endangerment.

But get this, the U.S. Army would never had investigated if it wasn’t for Chen’s hometown of Chinatown, in New York City! The Asian community demanded the Army investigate.

The U.S. Army investigators discovered that Chen was subjected to physical abuse and ethnic slurs, because he’s ethnically Chinese.

This is the second such case. The first involved the death of Harry Lew, a U.S. Marine from California.  Lew was subjected to brutal hazing in Afghanistan.  The USMC quietly court martialed Lew’s attackers in October of this year.    

Business/Economics, International, U.S.

OWS: An Open Letter from America’s Port Truck Drivers on the Occupy the Ports

We are the front-line workers who haul container rigs full of imported and exported goods to and from the docks and warehouses every day.

We have been elected by committees of our co-workers at the Ports of Los Angeles, Long Beach, Oakland, Seattle, Tacoma, New York and New Jersey to tell our collective story. We have accepted the honor to speak up for our brothers and sisters about our working conditions despite the risk of retaliation we face. One of us is a mother, the rest of us fathers. Between the five of us we have 11children and one more baby on the way. We have a combined 46 years of experience driving cargo from our shores for America’s stores.

We are inspired that a non-violent democratic movement that insists on basic economic fairness is capturing the hearts and minds of so many working people. Thank you “99 Percenters” for hearing our call for justice. We are humbled and overwhelmed by recent attention. Normally we are invisible.

Today’s demonstrations will impact us. While we cannot officially speak for every worker who shares our occupation, we can use this opportunity to reveal what it’s like to walk a day in our shoes for the 110,000 of us in America whose job it is to be a port truck driver. It may be tempting for media to ask questions about whether we support a shutdown, but there are no easy answers. Instead, we ask you, are you willing to listen and learn why a one-word response is impossible?

We love being behind the wheel. We are proud of the work we do to keep America’s economy moving. But we feel humiliated when we receive paychecks that suggest we work part time at a fast-food counter. Especially when we work an average of 60 or more hours a week, away from our families.

There is so much at stake in our industry. It is one of the nation’s most dangerous occupations. We don’t think truck driving should be a dead-end road in America. It should be a good job with a middle-class paycheck like it used to be decades ago.

We desperately want to drive clean and safe vehicles. Rigs that do not fill our lungs with deadly toxins, or dirty the air in the communities we haul in.

Poverty and pollution are like a plague at the ports. Our economic conditions are what led to the environmental crisis.

You, the public, have paid a severe price along with us.

Why? Just like Wall Street doesn’t have to abide by rules, our industry isn’t bound to regulation. So the market is run by con artists. The companies we work for call us independent contractors, as if we were our own bosses, but they boss us around. We receive Third World wages and drive sweatshops on wheels. We cannot negotiate our rates. (Usually we are not allowed to even see them.) We are paid by the load, not by the hour. So when we sit in those long lines at the terminals, or if we are stuck in traffic, we become volunteers who basically donate our time to the trucking and shipping companies. That’s the nice way to put it. We have all heard the words “modern-day slaves” at the lunch stops.

There are no restrooms for drivers. We keep empty bottles in our cabs. Plastic bags too. We feel like dogs. An Oakland driver was recently banned from the terminal because he was spied relieving himself behind a container. Neither the port, nor the terminal operators or anyone in the industry thinks it is their responsibility to provide humane and hygienic facilities for us. It is absolutely horrible for drivers who are women, who risk infection when they try to hold it until they can find a place to go.

The companies demand we cut corners to compete. It makes our roads less safe. When we try to blow the whistle about skipped inspections, faulty equipment, or falsified logs, then we are “starved out.” That means we are either fired outright, or more likely, we never get dispatched to haul a load again.

It may be difficult to comprehend the complex issues and nature of our employment. For us too. When businesses disguise workers like us as contractors, the Department of Labor calls it misclassification. We call it illegal. Those who profit from global trade and goods movement are getting away with it because everyone is doing it. One journalist took the time to talk to us this week and she explains it very well to outsiders. We hope you will read the enclosed article “How Goldman Sachs and Other Companies Exploit Port Truck Drivers.”

But the short answer to the question: Why are companies like SSA Marine, the Seattle-based global terminal operator that runs one of the West Coast’s major trucking carriers, Shippers’ Transport Express, doing this? Why would mega-rich Maersk, a huge Danish shipping and trucking conglomerate that wants to drill for more oil with Exxon Mobil in the Gulf Coast conduct business this way too?

To cheat on taxes, drive down business costs, and deny us the right to belong to a union, that’s why.

The typical arrangement works like this: Everything comes out of our pockets or is deducted from our paychecks. The truck or lease, fuel, insurance, registration, you name it. Our employers do not have to pay the costs of meeting emissions-compliant regulations; that is our financial burden to bear. Clean trucks cost about four to five times more than what we take home in a year. A few of us haul our company’s trucks for a tiny fraction of what the shippers pay per load instead of an hourly wage. They still call us independent owner-operators and give us a 1099 rather than a W-2.

We have never recovered from losing our basic rights as employees in America. Every year it literally goes from bad to worse to the unimaginable. We were ground zero for the government’s first major experiment into letting big business call the shots. Since it worked so well for the CEOs in transportation, why not the mortgage and banking industry too?

Even the few of us who are hired as legitimate employees are routinely denied our legal rights under this system. Just ask our co-workers who haul clothing brands like Guess?, Under Armour, and Ralph Lauren’s Polo. The carrier they work for in Los Angeles is called Toll Group and is headquartered in Australia. At the busiest time of the holiday shopping season, 26 drivers were axed after wearing Teamster T-shirts to work. They were protesting the lack of access to clean, indoor restrooms with running water. The company hired an anti-union consultant to intimidate the drivers. Down Under, the same company bargains with 12,000 of our counterparts in good faith.

Despite our great hardships, many of us cannot — or refuse to, as some of the most well-intentioned suggest — “just quit.” First, we want to work and do not have a safety net. Many of us are tied to one-sided leases. But more importantly, why should we have to leave? Truck driving is what we do, and we do it well.

We are the skilled, specially-licensed professionals who guarantee that Target, Best Buy, and Wal-Mart are all stocked with just-in-time delivery for consumers. Take a look at all the stuff in your house. The things you see advertised on TV. Chances are a port truck driver brought that special holiday gift to the store you bought it.

We would rather stick together and transform our industry from within. We deserve to be fairly rewarded and valued. That is why we have united to stage convoys, park our trucks, marched on the boss, and even shut down these ports.

It’s like our hero Dutch Prior, a Shipper’s/SSA Marine driver, told CBS Early Morning this month: “If you don’t stand for something, you’ll fall for anything.”

The more underwater we are, the more our restlessness grows. We are being thoughtful about how best to organize ourselves and do what is needed to win dignity, respect, and justice.

Nowadays greedy corporations are treated as “people” while the politicians they bankroll cast union members who try to improve their workplaces as “thugs.”

But we believe in the power and potential behind a truly united 99%. We admire the strength and perseverance of the longshoremen. We are fighting like mad to overcome our exploitation, so please, stick by us long after December 12. Our friends in the Coalition for Clean & Safe Ports created a pledge you can sign to support us here.

We drivers have a saying, “We may not have a union yet, but no one can stop us from acting like one.”

The brothers and sisters of the Teamsters have our backs. They help us make our voices heard. But we need your help too so we can achieve the day where we raise our fists and together declare: “No one could stop us from forming a union.”

Thank you.

In solidarity,

Leonardo Mejia
SSA Marine/Shippers Transport Express
Port of Long Beach
10-year driver

Yemane Berhane
Ports of Seattle & Tacoma
6-year port driver

Xiomara Perez
Toll Group
Port of Los Angeles
8-year driver

Abdul Khan
Port of Oakland
7-year port driver

Ramiro Gotay
Ports of New York & New Jersey
15-year port driver

Business/Economics, International, U.S.

OWS, What Economic Recovery? As promised, Occupiers shutting down busy U.S. West Coast shipping ports. Watch out, media reporting there are undercover cops amongst your ranks!

A video stream from the Port of Long Beach, in California, shows that it’s raining, and you can also hear what Occupiers say are police helicopters circling low.

California media reporting that Occupiers have moved onto several important shipping port; Los Angeles, Long Beach, Oakland, Portland in Oregon and Seattle in Washington.

Occupiers were hoping the port labor unions would join in, but one union official said there was not enough support from union members.

Bloomberg media says Goldman Sachs is the main target of the Occupiers.  Goldman Sachs owns the country’s largest port cargo operator: SSA Marine.

Reuters has confirmed that Los Angeles police sent in undercover officers prior to mass arrests last month.  The LA police said they used the info they got from spying on the occupiers to make the arrests.

 

Fukushima, International

Japan Modern Day Atlantis round 4: Minamisanriku, hometown of Heroine Miki Endo is becoming the Atlantis I predicted

Video

On March 11, a massive tsunami hit Minamisanriku.  If it wasn’t for a young woman, Miki Endo, as well as her boss ordering the residents to escape, many thousands more would have been killed.

Endo and her boss did not survive. They stayed at their posts on the second floor of the town hall building.  The water reached the top of the third floor of the building.  Endo’s last words over the city’s loudspeaker system were: “Take care mom!”

On November 7, Independent Television News updated the situation of Minamisanriku, and it looks like my past posts, comparing it to a modern day Atlantis, might apply.  A city official says no rebuilding can take place, because the land is slowing sinking into the ocean: “…our plan is to move the entire town to higher ground, because the ground level here has dropped by 70 cm [27.5 inches]. When we get higher tides, they come in and this entire area is underwater.”-Jin Sato, Mayor

Who said southern California can’t drop off into the ocean?

ATLANTIS SYNDROME: OFFICIALS CONFIRM LAND SUNK AFTER 9.0 QUAKE

JAPAN MODERN DAY ATLANTIS ROUND 3: QUAKE UPGRADED 10,000+ DEAD

Business/Economics, U.S.

Occupy Los Angeles! OWS plans on shutting down biggest port in U.S., will rain on Rose Parade, homeless taking back their homes! Where’s the mainstream media coverage?

According to the Occupy LA website, on December 12, they will attempt to shut down the busiest port in the United States; the Port of Los Angeles, along with the Port of Long Beach.

The Port of Los Angeles is also known as America’s Port.

The OWSers will specifically target a shipping operation owned by Goldman Sachs; SSA Marine.

The attempted shut down is in conjunction with other OWS groups across the west coast, such as San Diego, Oakland, Portland and Anchorage.

In a report from the Los Angeles Times, OWSers will Occupy Pasadena’s 2012 Rose Parade.  Occupy Rose Parade organizers say they do not want to cause problems: “We want to make sure this is completely non-disruptive to the main parade.”– Peter Thottam, Occupy Rose Parade

On December 6, thousands of protestors from several different groups across the country, helped families who lost their homes take them back.  Occupy our Homes took place in Los Angeles, Riverside, South Gate, San Francisco, New York and other cities.

Big banks Wells Fargo and JP Morgan Chase were not happy.  One family said JP Morgan Chase had put their home up for auction without telling them, while they were still living in the home: “People started calling the house saying the house was going on auction, so I called the bank.”-Arturo de los Santos

De los Santos says he tried to work a loan modification deal, but JP Morgan Chase refused.  De los Santos says neighbors were told of Occupy our Homes, and support it: “On Sunday we went around the neighborhood and told neighbors we were doing this and they’re backing us up. All of them either know someone who’s going through a bad loan modification or know someone who’s out of their home because of a bad loan modification.”

According to the Washington Post, the Occupy Our Homes, or Occupied Real Estate (each movement had a different slogan), was huge.  They have lots of pics.  Where was the mainstream TV media coverage?

 

 

Business/Economics, Opinion, U.S.

OWS, What Economic Recovery? U.S. houses burning down, and people dying, direct result of local government budget cuts and insurance policies! More reason to get rid of government and the insurance industry!

“To me, it’s not an issue. To me it’s like car insurance. If you have a car, you pay insurance. If you want protection, you pay the price.”-Benny McGuire, Obion County Mayor

If you listen to Mayor McGuire’s statement it sure sounds like extortion.

For the second time this year, Tennessee firefighters stood by and watched a families home burn to the ground. The latest fire burned down a home on December 5.  When Obion County firefighters arrived they were ordered not to put out the fire, because the family had not paid a $75 firefighting fee!

Homeowner, Vicky Bell, told KFVS TV that she and most of her neighbors have not paid the fee because they were told they are ineligible for firefighting service anyway, because they don’t have home insurance!

Back on October 4, another Tennessee home burned to the ground for the same reason.  But this time the home owner offered to pay right then and there. The fire didn’t even start in the home!  The firefighters refused, and the home burned down killing three dogs and a cat!

“They coulda’ been saved if they put water on it. But they didn’t do it!”-Gene Cranick, watched pets burned alive

Some Tea Party ass holes think this is they way things should be done. Bull Shit!  I’ve been in Third World Countries and that’s the way it’s done there.  So you Tea Party ass holes want the United States to revert to Third World status?  Don’t worry, I think you’ll get your wish for freakin’ Xmas!

As previously stated, even if the home owners could afford the extortion fee of $75 , if they did not have insurance, which most home owners don’t have once they reach a certain point on making their mortgage payments (or they’ve paid off their home) because they can’t afford the insurance, they do not qualify to pay the extortion fee!!!

By the way, this is why you should not call a firefighter, EMT or cop, a hero.  Hero’s don’t require payment!!!

Oh, now I’ll get to the guy who died why public servants literally stood by and wrung their hands.

“I thought it was kind of weird that they weren’t going out to bring the guy in, you know, he was out there, his head was above water, he was looking at everybody, there was plenty of time for them to react.”-Perry Smith, witness

On May 30, a distraught man drowned after treading water for more than an hour.  It happened in daylight, on Alameda Beach in California, in front of dozens of people, including emergency personnel.  The beach goers all thought the paid emergency personnel were going to take care of it, they were wrong, and many are shocked: “It’s horrible. How can we let that happen? How can our emergency personnel allow that to happen? I don’t get it, I don’t understand it.”-Gary Barlow, witness

The Coast Guard said they didn’t have a boat that could reach him where he was, and their helicopters were busy!  Police said it’s not their job: “We’re not trained to go into the water, obviously the type of gear that we have on, we don’t have the type of equipment that you would use to go into the water.”-Joe McNiff, Alameda Police Department

What about firefighters?  “…I would have to stay within our policies and procedures because that’s what’s required by our department to do.”– Ricci Zombeck, Alameda Fire Division Chief

Those policies don’t allow firefighters to go into the water.  In fact, it was a woman, a civilian, a true hero, who went in, albeit too late (the man died), and recovered the body.  The taxpayer paid emergency personnel were not even going to recover the body!

The ‘hero’ division fire chief admitted they should have done something, and “…that we’re going to evaluate our response protocols.”

The next day it was revealed that the city had quietly stopped funding their water rescue program, back in 2009, in an attempt to save the city some money.  On top of that the city’s firefighters were ordered to stay out of the water.

To prove the point that paid emergency personnel are not heros, here’s what the interim fire chief of Alameda had to say: “I know that yesterday, those crews, it was killing them to stand on those shores and not be able to do anything. But under the circumstance and because of the policy, they really didn’t have a choice.”-Michael D’Orazi, Interim Fire Chief

Notice; “…because of the policy…”.  The ultimate concern of emergency personnel is not violating their policies (for cops it’s a different story, so many of them violate their own policies all the time, but in a bad way)!

I had a lot of bad experiences with emergency personnel, and cops, and this was decades back when the economy was good!  So pardon me if I seem upset!

For you Tea Party ass holes who’d like to see the U.S. turn into a Third World Country, there’s a saying that should be applied to you: “Git a rope.”

However, if people can’t work together and overthrow their oppressive governments and corporations, and create a better system, then let Anarchy reign!!!


Business/Economics, Idaho, U.S.

What Economic Recovery? Corporate layoffs & stock market games, part of Corporate America’s stock buy back scheme. Hewlett-Packard case in point

“We’re relatively pessimistic about the economic outlook in two of our three major regions. 2012 just looks tough to me.”-Meg Whitman, new CEO of Hewlett-Packard

“It’s an extraordinarily unimaginative way to use money.”-Robert Reich, former U.S. Secretary of Labor

What’s the former U.S. Secretary of Labor talking about? Why Corporate America buying back its own stocks.  Companies are able to do this because they are not spending money on research and development, and, according to a New York Times article, it’s the real reason companies are still laying off employees. They’re using the money they would have paid for the labor to buy back company stocks.

In November employees at the Boise, Idaho, Hewlett-Packard (HP) factory reported that layoffs were in the works.  In July HP bought back U.S.$10 billion of their own stocks, then laid off 500 employees in September.  HP officials avoided directly answering questions about layoffs in Idaho by saying they were working on a “press release”.  It’s been a couple of weeks now and no press release.

A lot of problems are being created by the way Corporate America is buying back their stocks.  For one it artificially increases the value of their stocks:  “Unless earnings per share are adjusted to reflect the buyback, then to base a bonus on raw earnings per share is problematic. It doesn’t purely reflect performance.”-John L. Weinberg, University of Delaware

Number two, it’ll delay any economic recovery: “It’s a symptom of a deeper problem, which is a lack of investment in the long term. If we’re not investing in research, innovation and entrepreneurship, we’re going to be a slow growth country for a decade.”-William W. George, Harvard Business School

And thirdly, it’s increasing unemployment, which is only adding to the downward spiral of the economy.

On November 22, Meg Witman, former eBay CEO, former California Gubernatorial candidate, and new CEO of Hewlett-Packard, was questioned about HP’s huge cuts in R&D.  Here’s her response: “It’s not (return on investment) in year one or two. I think the investments we make in 2012 you’ll start to see in 2014 and 2015. I wish I could tell you differently but it’s not true. And you’re right. We cut out a lot of muscle in R&D at this company and we have to invest back in it. It’s a long term play. I will tell you, this management team, we are now building HP, we’re building it to last. We’re not building it for next month or next quarter. We are building this company to be great over the next decade. And you’ll see improvements every single year. You’ll be able to measure us on how we’re doing. But we’re making some long term bets here because we can’t continue to run this company for the short term.”

Knowing that the latest trend in Corporate America is buying back their own stock, at the expense of R&D and employment, is that what Whitman means when she says “…we’re making some long term bets…”?

Whitman’s answer is confusing.  Traditional economics tells you that investing in R&D is a long term “bet”.  Yet Whitman calls it “short term”. 

So is that what Whitman means when she says we should see returns on investment in 2014/2015?  The investment meaning buying back their own stocks?

Anyone who’s taken economics, or business courses should know that traditional investment into your own company means R&D; to come up with more efficient ways to produce products, or coming up with new products/services, better marketing, etc.  But it does not mean buying back your own stocks.

Perhaps stock buybacks are the real reason there are layoffs coming for HP’s Boise operation, and officials are still trying to come up with a good sounding reason for their forthcoming “press release”?

Hopefully, since Whitman just started her job as HP CEO, she’s talking about a return to traditional economics. Hopefully it’ll mean an end to HP’s stock buy backs and a return to putting money into R&D and employment, she did say: “We cut out a lot of muscle in R&D at this company and we have to invest back in it.” Oh well, wishful thinking.

 

Business/Economics, U.S.

Republican & Media Incompetence: California Republican Darrell Issa, and some mainstream media sources, say the Postal Service gets money from tax payers. Idiots!!!

“The Postal Service still seems to hold the misguided belief that accounting gimmicks and an increased reliance on taxpayer support will give it flexibility to push back insolvency for a few more years.”-Darrel Issa, Republican Representative from California

California Republican Darrel Issa has just revealed himself to be a liar or an idiot!

First off: Postal officials have been straight forward with their financial mess.  And most of that mess has been caused by Congress!!!  Read my September posting of the PBS interview with the Postmaster General, and the president of the National Association of Letter Carriers union.

Secondly: The United States Postal Service does not make money off taxpayers, they are solely funded by the postage they charge (prices are controlled by U.S. Congress, not the USPS), and other products they sell.  The cuts being made to the USPS will have no affect on U.S. government debt!!!

Darrel Issa is a California Republican, yet he doesn’t know that two other California Republicans pushed for the USPS to become self supporting?  Yeah, those guys were Richard Nixon and Ronald Reagan!!!

In 1970, under Nixon the Postal Reorganization Act was passed and signed into law.  This act ceased tax payer funding for the USPS (prior to the Reorganization Act it was known as the Postal Department), and forced it to become self supporting (although it does not have to make a profit).

In 1982, under Reagan, another act was passed and signed that added U.S. postage stamps to the “postal products” that the USPS could support itself with (until then the Government took all the money from sales of stamps).

Perhaps Darrel Issa is talking about the “Postal Service Fund”?  This is a fund set up by Congress, paid for with taxes, to cover the postage free mailing for all legally blind persons, and for mail in election ballots sent from U.S. citizens living overseas, and, for providing address information to state and local child support enforcement agencies.  It does not cover any other operations of the USPS!

Perhaps Darrel Issa wants to end the free mailings for blind people, for absentee election ballots, and for providing addresses to state and local child support agencies?

Whatever the reason, this is a clear case of politicians, and the media, of being incompetent, or intentionally misleading the general public.

 

Business/Economics, Idaho, U.S.

Occupy America! Diesel disparity in Idaho. Gas prices way down, Diesel way up. Blame increase in U.S. exports! Blame pricing games! Warning for California. Fracking really for fuel production. Grow your own!

In eastern  Idaho, the difference between the price of one gallon of regular gasoline, versus diesel, is now a full one dollar.

Phillips 66, next to the Bannock County court house, Pocatello, Idaho

On November 19, the average price, in the Pocatello/Chubbuck area, hit $3.18 per gallon for regular gasoline, and $4.18 for diesel.

The U.S. Energy Information Administration (USEIA) says gas prices are falling, in general, due to the usual seasonal drop in usage.  I’ve never seen it drop by this much, here in eastern Idaho.  Back in May, the average price was $3.65 per gallon, and it stayed that way through most of the summer.  In the past two or three months the price has dropped almost 60 cents.

The USEIA also says regional fuel refining has a lot to do with prices, but back in September I discovered that PADD 4 gasoline production was being kept below demand. The latest data on PADD 4 gas production shows that, after months of keeping it around 290 thousand barrels per day, regional refineries are now pushing out more than 324 thousand barrels per day.  This is why gas prices, in the Rocky Mountain area (PADD 4) are, or should be, dropping.

In California it’s a different story.  The latest gasoline price survey shows the average price around $3.54 per gallon, with many areas paying $3.79.  California taxes are one reason for the higher prices, but the other reason is that California refines its own fuel, and the refineries are in trouble.

According to the USEIA, despite having the third largest refinery industry in the country California’s refineries are maxed out, there’s just too many people driving too many vehicles.  The USEIA is warning of a fuel price catastrophe in California: “California refineries need to be running near full capacity to meet the State’s gasoline demand. If more than one of its refineries experiences operating problems at the same time, California’s gasoline supply may become very tight and prices can soar. Even when supplies can be obtained from some Gulf Coast and foreign refineries, they can take a relatively long time to arrive due to California’s substantial distance from those sources. The farther away the necessary relief supplies are, the higher and longer the price spike will be.”

Regarding the rising cost of diesel fuel, it looks like some of what I warned about back on November 5 is coming true.  Bottom line; around the world diesel production is down, while international demand is going up and up.

The latest reports on diesel commodity prices show a slight decrease.  The decrease is so small that the global increase in demand for diesel will still cause pump prices to go up.

And how does the global demand affect us here in the U.S.?  According to the American Petroleum Institute (API), most diesel fuel produced in the Untied States is actually being exported to other countries (a 37.6% increase, in both diesel and gasoline exports, in the past year).  That means less diesel for the domestic market.

Diesel fuel is part of the “distillates” family of fuels.  In the U.S. ultra low sulfur diesel is referred to as “Distillate Fuel Oil 15 ppm (parts per million) and under of Sulfur”.  According to USEIA records, ultra low sulfur production, in the United States, varies between 3.2 million and 3.6 million barrels per day.  Now realize that international demand has gone up, and that U.S. refineries are exporting much of their diesel.  Since overall production is remaining in the 3 million to 4 million barrels per day rang, that doesn’t leave much for us.  The result is diesel prices will continue to go up, until U.S. distillate refiners greatly increase production.

For those of us in the Rocky Mountain (PADD 4) area, the USEIA shows an up and down pattern for “Distillate Fuel Oil 15 ppm (parts per million) and under of Sulfur”.  From March through May, diesel production was stuck at about 160 thousand barrels per day.  By the end of July it increased to 195 thousand barrels per day.  Since the end of August it’s dropped, to 185 thousand.  That explains why diesel pump prices in the Rocky Mountain area are going up.

But here’s one more reason, and one that many diesel fuel users have speculated on; the high pump prices of diesel is an attempt by producers to make a bigger profit, since they’ve actually been keeping gasoline pump prices artificially low.  A Reuters article states just that: “This in turn crimps diesel output until the cost of the fuel gets high enough to offset losses from additional gasoline sales.”

The Reuters article explains, not very well, that ultra low sulfur refining requires hydrocracking, a process involving hydrogen.  It’s also used for gasoline.  The problem is that many refineries in the U.S. can not produce both diesel and gasoline.  This might explain the swings in production; one month gasoline production up, and diesel down, the next month it’s reversed.

The push for fracking natural gas, is actually for the fuel refining industry, because it turns out that using the hydrogen in natural gas is a good cheap way to conduct hydrocracking in fuel refining.

Eventually more diesel will be produced, because of the global demand.  Several companies in the Gulf Coast area have invested billions of dollars to build new refineries to extract the hydrogen from natural gas to hydrocrack new diesel fuel.

Diesel fuel users should really look into making their own biodiesel, even though you could get into trouble with the Federal and State tax collectors, as well as the EPA.  Here’s some links:  Backwoods Home Official BioDiesel Home BioDiesel Diesel Master JR Whipple (good for moonshine too, remember diesel is a distillate) There plenty more sites on the internet about making your own diesel, do the research.