Impending Ethanol Shortage?

Just imagine, an energy company announcing that profit has risen 29% on strong demand and there is no outrage from Congress? Well this is the good fortune of Archer Daniels Midland.

Profit in the corn processing division, which includes the manufacturing of ethanol, increased $41 million to $219 million for the quarter. The company also cited improved selling prices for corn starch and sweetener. ADM is among the biggest processors of soybeans, corn, wheat and cocoa and produces soy meal and oil, biodiesel, ethanol, corn sweeteners and flour, with more than 250 processing plants.

Not bad. I’ll have to take a closer look into this company’s stock (ADM). What is not mentioned above is that they also managed to increase the quarter’s operating profit by 46%! (PDF release) The Wall Street Journal also mentions the following concerning ADM and Ethanol.

It expects ethanol prices to rise in the next two quarters, company executives said during a conference call with analysts Tuesday. The company plans this week to ask its board of directors to take a look at building a second U.S. ethanol plant, to produce fuel from corn. The company said it expects that industrywide, U.S. ethanol capacity will increase from 4.5 billion gallons this year to 6.5 billion gallons over the next 12 to 18 months. - WSJ

4.5 billion gallons of ethanol sounds like lots, at first. It is the same amount as 107 million barrels of ethanol produced in the US this year. That equates to almost 294 thousand barrels of ethanol produced each day in the US.

According to this Fortune Article, US gasoline consumption is about 9 million barrels per day. To blend all gasoline used in the US to contain 10% ethanol would require 900,000 barrels of ethanol each day. This means that current US production can only cover about 4 months ethanol demand assuming that 100% of domestic ethanol production is used for blended gasoline with 10% ethanol. Four months would cover the summer months so theoretically the numbers fit, except that it takes a full year to manufacture the ethanol needed for blended gas. This leaves nothing for other uses such as E-85 that we are seeing adds for. (Live Green Go Yellow) E-85 is fuel which is 85% ethanol and 15% gasoline.

The US would need over 279 million barrels of ethanol a year to replace just 10% of current gasoline consumption with E-85. This does not take into account that E-85 gets less mileage than gas, requiring more E-85 to go the same distance with a gallon of gas, nor does this estimate account for any other needs, such as for blended gasoline, as well as other demands for ethanol. From the following chart, you can see that there are other demands for ethanol.

Take this from the Ethanol Facts website:

About 30 percent of the nation’s gasoline contains ethanol—and most of that is in the form of E-10 Unleaded. In some areas of the nation, ethanol is blended at rate less than 10 percent due to state-specific regulations. (On the other hand, some states are considering increasing the standard blend to 20 percent ethanol.) - Ethanol Facts E-10

These numbers mean that current domestic Ethanol production can barely meet domestic demand, explaining why ADM is interested in building a new ethanol plant. There is currently a need to import ethanol. Unfortunately, there is a 54 cent per gallon tax on imported ethanol. This equates to 5 cents per gallon of gas that includes imported ethanol.

Imported ethanol is most likely to be used near large ports, such as NY where there is high demand and shipping in imported ethanol is cheaper/simpler than moving domestic ethanol from the heartland to the coasts since it is not possible to move ethanol through existing pipelines. These areas also tend to have higher gasoline prices than other parts of the nation. Since we need to import ethanol, you would think that congress would be eager to repeal the import tax in order to provide relief to consumers. Think again:

"It's a step in the wrong direction," Sen. Charles Grassley, R-Iowa, said Friday. He is chairman of the Finance Committee, which would consider any change in the tariff. "It would send a signal that we're backing away from our own efforts to seek energy independence."

The panel's top Democrat, Sen. Max Baucus, D-Mont., also said that a change in the tax would be a mistake. House Speaker Dennis Hastert, R-Ill., whose state has the biggest ethanol producer, Archer Daniels Midland, also opposes a tax change.

If the administration tries to move on its own, says Sen. Byron Dorgan, D-N.D., whose state is another center of ethanol production, "they would run into a big fight in Congress." - Chron.com

Not only is our congress going after the oil companies, but at the same time they are going to sell out the whole country for some votes back in their home states. The silly thing is that there no need for protectionism. Just where is all of this foreign ethanol going to come from?

Take Brazil’s ethanol revolution which has been all over the news. Certainly they must be a threat to our domestic ethanol industry. Think again. Brazil produces about the same amount of ethanol as the US (5 billion gallons/year.)

Just where does Congress think we are going to import all this Ethanol from?

Currently, about 13% of all corn grown in the US goes to ethanol production. The Department of energy things that the ability to produce more ethanol from corn is limited. There is plans to produce ethanol from other materials but that is still a couple of years off. The problem is Congress set the wheels in motion for increasing ethanol demand. The questions are, can increased production meet demand and will Congress sit on the sidelines while American users are gouged by the producers of ethanol?

P.S.

I thought that the purpose of putting ethanol in gasoline was to help reduce our dependence on foreign oil. However, as Oxblog points out, Senator Durbin sees that including Ethanol in gasoline as a way of revitalizing the small-town America.

SEN. DURBIN: At this point in time, I tell you there is a boom now and opportunities for these ethanol production facilities. I want to see that happen. You know why? Because in downstate, small town America, that I represent as well, these are the best job opportunities they can find. These are business opportunities in communities that have otherwise almost given up. They have a chance now. And if you’re going to allow us to become, allow this import of fuel from Brazil we may find ourselves as dependent on foreign ethanol as we are today on foreign oil.

So we can partly thank Senator Durbin for the high price of gasoline as he sees ethanol in gasoline as a good way to subsidize small-town America. Not that farmers already get tons of subsidies as well as price protection. (i.e. sugar.) The joke is, farmers are always claiming that Government actions make their products too expensive to market. They receive Government money which results in overproduction. They then look to export their overproduction. The Government says "That's great, but you must use US-Flag ships to export the grain with." They then complain to their congressmen that the Government is driving them out of business. My question is, at what point did their business become uneconomical? How about at the point they asked for aid. Of course the requirement to use US ships is a way to subsidize US shipping. Funny how the farmers see it differently.

Note: This is part 1 of 3 concerning Gasoline, Congress and ExxonMobil. Keep in mind that I am currently an owner of a small portion of exxonMobil and BP.

Archer Daniels Midland Profit Rises 29% on Strong Demand - WSJ
Archer Daniels Midland - Homepage
Mixing Gasoline and Moonshine – Cato Institute
$3-a-gallon gas: Blame Washington, not Big Oil - Fortune
Congress Opposes Ethanol Tax Change - Chron.com
BIO ETHANOL AS A TRANSPORT FUEL (PDF) - Fonterra (source of Charts above)
National Corn Growers Association
Ethanol Facts
E-10 Unleaded

Maritime Monday 8

Welcome to this week's Maritime Monday.

This Weeks Photos:

Here are two photos I have taken of the ferry FINNJET. This was a couple of years back in the winter on the Helsinki-Tallinn route. The vessel is currently on charter as a college dorm for LSU at Baton Rouge. The school needed housing for students as a result of hurricane Katrina. You can read more about the ship here and here. If you are really interested in the vessel, you can purchase it as it is for sale.

(FINNJET)

This weeks items:

The Florida Sun-Sentinel has the story of Carnival Cruise Lines settling a lawsuit concerning unpaid overtime for a little over 6 million.

Findlaw has news that the Captain of the ZIM MEXICO III, Wolfgang Schroder, is being sued by the family of the victim in the crane collapse in Mobile, Alabama. The crane collapsed as a result of the ship striking it. The Captain has been arrested. (USCG photo of the accident scene)

Austin Bay summarizes the Iranian threat to shipping going through the Strait of Hormuz.

Consul-At-Arms has the story of a 20 foot boat found off Barbados by fishermen with 11 bodies in it. The theory is that the boat originated somewhere in Africa and drifted across the Atlantic.

The Marex Newsletter has an update on the ARAL WIND that was kicked out of port. It has now received permission to return, as it has corrected the safety issues.

The Monitor has news of the sinking of the ALEXANDROS T, a bulk carrier, off South Africa. The following link opens a PDF summary graphic page on the issue of "Improving the Safety of Bulk Carriers."

Cargolaw has more on this sinking and notes:

They were so close to safety -- all stepping onto life rafts -- 27 crew were taken away by this vessel. The end came in just one moment. There is no way to explain risks which the public can't understand. The movement of your baby carriages, stereo receivers, automobiles & frying pans -- is a very dangerous business. - Cargolaw

EagleSpeak has news of a fire onboard the Cruise ship CALYPSO in the English Channel.

Lloydslist has news of the flash fire on the VLCC SUVA that killed four workers. The fire was in an empty cargo tank (which apparently was not gas-free prior to doing welding.)

OCRA Worldwide has news of China Ocean Shipping's (COSCO) plans to become the World's largest Shipping Company.

Impact of Technology on Working Environment has the story of a new floating port, the M/V GOAN PRIDE. "Floating ports are ships specially designed to load and unload cargoes."

The Heritage Foundation explains why 100% container cargo scanning is 'wasteful' and "would cost billions of dollars and drown authorities in useless information."

Sorry, no Navy or Coast Guard items this week. Doesn't mean that there was nothing noteworthy, just that I did not hear about it.

Perhaps someone can point me in the direction of an explanation about what happened to SEABED Mining? Years back this was on the cover of Popular Mechanics/Science and unlike stuff like flying cars, this seemed like a no-brainer. So why aren't we mining the seabed?

Other Items:

Everyone knows about containers and containerships. But what about LASH vessels?

Weekly Maritime Reference:
The subject of this week is Load Lines. In short:

A mark on a vessel’s side indicating the maximum depth to which it may be safely immersed when loaded with cargo. This depth is variable and depends on the waters of operation, time of year, and type of cargo; e.g. winter, North Atlantic, timber will have a special depth. Laws regulate the amount of cargo a vessel can carry and still maintain enough reserve buoyancy and a low enough center of gravity to ensure its safety in adverse weather and dangerous seas. - AMUSF

The circle is also known as the Plimsoll Mark.
Historical background leading to the adoption of the Load Lines convention - IMO

Previous Editions:
Maritime Monday #7 - 01 May 2006
Maritime Monday #6 - 24 April 2006
Maritime Monday #5 - 17 April 2006
Maritime Monday #4 - 10 April 2006
Maritime Monday #3 - 02 April 2006
Maritime Monday #2 - 27 March 2006
Maritime Monday Carnival #1 - 20 March 2006

Submission Guidelines:
Look here for more details: Submission Guidelines

You do not have to be the author to submit a blog post or news story. Feel free to suggest something that you think is worth sharing.

Sponsors:
No sponsors for this week. You can sponsor this week's post retroactively. Then again, if you are interested in doing that, then you might consider sponsoring an upcoming post. Check the submission guidelines for more details.

Feedback Welcomed!

Home

Alaska Screws over Rural Residents in Quest for Pork

Everyone is familiar with the ‘Bridge to Nowhere’ that Alaska’s Senators Don ‘King of Pork’ Young and Ted ‘Bringing home the bacon’ Stevens managed to get funding from Congress totaling $223 million to build. For those who are not aware, there are only 50 people living on the island that is the foundation for the other end of this bridge with one of the owners of property on the island is the Governor.

Congress removed the earmark from the money so that the state could do what it wanted with the funds. According to the Governor (and the Washington Post) he will use the money to build the bridge. Shame, it would be easier to give the 50 people living on the island a million or two million each, leaving $100+ million for other worthwhile causes, and there are worthwhile causes in Alaska.

Just because Alaska is rich with oil and crab money doesn’t mean that there are no people in need there. Take the plight of those who live in the rural areas of Alaska:

NPR - Residents in 5,000 homes in rural Alaska live without running water and sewage systems. Their bathrooms are often buckets that must be hauled to landfills or a sewage lagoon. For drinking water, people go to ponds to chip ice in the winter and collect rainwater in the summer. The Bush administration's budget proposes reduced funding for the state's Village Safe Water program by 75 percent. Ashley Gross of the Alaska Public Radio Network reports. (Listen to the report.)

I love this quote in the report “Many Alaskans are questioning the Bush Administration’s plan to cut Federal funding of that program by 75%.” How about questioning your Senators why they didn’t earmark a couple million for this problem. How about questioning your Governor why he is spending over $200 million in free Federal money on an unnecessary bridge to a sparsely populated island that already has ferry service instead of spending it on people in his own state who have no running water and use buckets for toilets? How about questioning why your state has no income tax. Why not allocate some of the Alaska Permanent Fund oil dividend for these projects in your state instead of asking the rest of the country to pay for what you need and want? (Isn’t it enough to not have to pay state income taxes?)

It is classic that they interviewed Alaskan Senator Lisa Murkowski (Daughter of Governor Frank Murkowski) in the report. She has the gall to comment “would this be acceptable anywhere else?” Try to keep in mind that Alaska Residents do not pay any state income tax. As a bonus for living up there, they also receive an annual allowance from the State. ($845.76 in 2005.)

“She (Senator Murkowski) is outraged by the President’s proposal to cut $45 million out of the Alaska village State Water Program” and that Alaska is getting a “raw deal.” - NPR

A Raw Deal. How is that for gratitude!

In the report, Senator Murkowski estimates that the unmet needs for rural Alaska totals about $600 Million. At least I know where to find a third of that amount, just cancel the bridge.

The bridges to nowhere (There is a second Alaska bridge. The bridge pork totals $452 million) are nothing compared to the Great Mississippi Pork Grab going on for the ‘Highway to nowhere.’ Senators Thad Cochran and Trent ‘Jimmy Dean’ Lott have put in an earmark for $700 million to move a CSX rail line that the Government just spent over $200 million to fix. That’s close to $1 Billion tax dollars, or almost FOUR BRIDGES TO NOWHERE.

It make absolutely no sense to spend money to rebuild a railroad and them spend more to tear it up. If there are claims that there have been plans for years to move the railroad tracks, why would they not act immediately, when there was the opportunity. There are only two reason I can think of to first rebuild the tracks and then call to tear them up;

1. To first collect some kickbacks from the reconstruction process
2. Incompetence.

There are calls coming from the Senators and the state that we are all misunderstanding the issue. Fine, but I think it is their responsibility to make the case for it, not us. There has also been claims that part of the reason to move the tracks is to make space for routing I-90 away from the shoreline for a safer escape route. So I ask, how much safer is this route along the track line when the last hurricane destroyed the tracks where they now propose to put the road?

The detractors call this out as a major case of pork to benefit the casinos. Why not use casino money to move the railroad? Look at Las Vegas. You don’t see the State of Nevada pleading for Federal Funds to bankroll the states gambling operations. Should these things be sources of revenue for the state? Where does Mississippi gambling money go to anyway? News reports put the revenue at $500,000 per day, just for the casinos that were affected, with gambling earning the State over $300 million a year. Surely these funds can be used to fund this project. Or are the funds being used for some greater good?

By the way, at least Senator Lott has commented about the drive to rid pork from Government:

"I'll just say this about the so-called porkbusters. I'm getting damn tired of hearing from them. They have been nothing but trouble ever since Katrina. We in Mississippi have not asked for more than we deserve. We've been very reasonable." - Porkbusters

This is notable as it shows the effectiveness of the web. It didn't change the Senator's ways, but at least he now knows that people are watching. This reminds me of Congressman Delay's idiotic statement concerning pork:

"Yes, after 11 years of Republican majority we've pared it down pretty good." - FFI

Good job Congressman! Good job.

Update: 7 May 2006

The Heritage Foundation has this summary of the railroad pork project and even suggests that moving the rail tracks will expose the area to greater risk of damage during a future storm as some believe that the elevated trackbed held back storm surge.

Update: 8 May 2006
Instapundit has this summary of the current status of the Iraq spending bill where the railroad pork project money is stuffed into. He is calling for the President to make good on his promise to veto the stuffed spending bill and for his own good, and for the good of all Republicans (other than those in the Senate spending like drunk sailors) he should.

Funds at Risk for Rural Alaskan Services – NPR

The Permanent Fund Dividend – for the State of Alaska
Railroad to Nowhere challenged – Porkbusters
Mississippi Senators' Rail Plan Challenged – Washington Post
There is simply no fat left to cut in the federal budget - DeLay - FFI


Senator Trent Lott – US Senate
Senator Ted Stevens – US Senate
Senator Thad Cochran – US Senate
Senator Lisa Murkowski – US Senate

SENATOR MURKOWSKI CHALLENGES EPA OVER PROPOSED BUDGET CUTS TO ALASKA VILLAGE SAFE WATER

Stevens Vehemently Opposes Coburn Amendment to Eliminate Alaska Bridges

HOME

Questions for 2008 Presidential Candidates - v.1

We are still a long way from the next Presidential election, yet the posturing has already begun. This got me thinking, what questions would I like to see the candidates answer? Here is draft 1. Surely current events, political antics, and 'Bush Derangement Syndrome' will bring about more questions?

Elections and Election Reform:
Did President Bush steal the 2000 election? (Florida)

Did President Bush steal the 2004 election? (Ohio)

Do you believe that the CBS 60 Minutes Bush Reserve documents are real?

Do you think that there is voter fraud?

- If so, which party benefits more from voter fraud and how?

Do you believe that Voter ID rules are equivalent to poll taxes?

- If so, how would you institute voter ID that would not disenfranchise poor voters?

Do you support a national ID?

Global War on Terrorism:
Do you believe that the Government knew of the 9/11 attacks and did nothing to stop it?

- If so, did the Clinton Administration know about the 9/11 attacks?

- If so, how did none of the Clinton Administration employees that was still serving under Bush not know about this?

Do you believe that Saddam Hussein had WMD?

- If so, do you think that they might now be buried in Syria?

Do you believe that Bush lied about the reasons to go to War against Iraq?

Do you believe that Iraq had no connections to Al-queda?

Do you believe that it is ok for the NSA to listen into international communications into - out of the US without a FISA Warrant?

- If not, how should the NSA be able to obtain these warrants in a timely fashion taking into account that there are over 200,000 suspected terrorists that the NSA wants to listen to and also taking into account that only 8,000 warrants have been issued in the last couple of years?

- If not, do you think that Customs needs a warrent to search people's belongings as they reenter the country?

Do you plan to quickly pull American Troops out of Iraq?

Do you plan to quickly pull American Troops out of Afghanistan?

Do you consider Hamas a terrorist organization?

War on Drugs:
Do you believe that Marijuana should remain illegal?

Do you believe that most drug users are only harming themselves?

Environment:
Do you think that the Kyoto Convention will retard global warming?

Domestic Issues:
Will you push to secure the borders from illegal aliens?

Do you approve of granting illegal aliens in the US a pathway to citizenship?

Do you consider a pathway to citizenship for Illegal aliens a form of amnesty?

Will you raise taxes for the rich?

At what point do you consider a person/family rich?

Do you support a flat tax?

Do you think that the ACLU is acting in the best interests of America?

Are you for opening some of the many closed areas of the US to oil drilling?

Have you ever been to the Arctic National Wildlife Reserve? (ANWR)

Do you think that it is possible to drill for oil in ANWR willout ruining the environment there?

- If not, should we stop drilling in other sensative parts of the US?

Politics:
Do you believe that Cindy Shehan is abusing the memory of her son?

Do you believe that the Mainstream Media is biased against President Bush?

Do you believe that the Mainstream Media is ignoring good news:

- In Iraq?
- In the War on Terror?
- In the economy?
- In general?

Do you think Michael Moore's movie "Fahrenheit 9/11" is more fact or fiction?

If your name is John F. Kerry, also answer this:
Will you release your full military record this time?

If your name is Joseph Biden, also answer this:
Do you think that the State of Delaware is gouging driving through high tolls?

Do you think the State of Delaware should lower tolls to provide relief to drivers from high gasoline prices?

Please feel free to add your own questions in the comments!

Decision '08 - 'Because its Never Too Early'

More Fred Fry 2008 Musings:
Feingold 2008: RIP - 17 March 2006
Kerry 2008 - 29 January 2006
Gore 2008 - Not Happening - 12 October 2005
Biden 2008? - Last Exit Before Toll - 9 October 2005
Obama 2008? Mr. Electability? - 25 July 2005

Maritime Monday # 7

Welcome to Maritime Monday. a weekly roundup of the professional Maritime and offshore oil industry with a little Navy and Coast Guard thrown in to keep things interesting.

This Weeks Photos:

Below is news about the SS UNITED STATES. So here are pictures from my visit to take a look at the vessel. We actually drove through Philly just to see this ship.

(SS UNITED STATES - 1998)

This weeks items:

The Monitor has posted excerpts from the Egyptian ferry AL SALAM BOCCACCIO 98's 'black box'. As it pointed out, the passengers were never given word to go to abandon ship stations.

The Panama Canal Authority has announced expansion (PDF here) plans that include the addition of a new set of locks. These new locks will use holding ponds to conserve the amount of water used for each vessel going through the locks. See a video of a vessel going through the new type of locks.

Sailors, Mariners & Warriors League has follow-up information on the American found floating on a couple oil drums between Denmark and Norway.

EagleSpeak has the story of a gasoline tanker kicked out of Port Canaveral, Florida. Normally, when the Coast Guard finds problems on a vessel it gets arrested and cannot sail until the problems are fixed. So to get kicked out of port is a real feat. Reading this brings back 'fond' memories of my time aboard a Mobil Oil gasoline tanker going between Texas and Florida. (At least we were safe!)

EagleSpeak also has news of the upcoming goodwill tour of the hospital ship USNS MERCY. The MERCY is one of two supertankers the Navy converted into hospital ships. Each ship has twelve operating rooms. Each operating room can handle two (separate) operations on the same patient as war wounded often suffer from multiple wounds. I was lucky enough to get a tour of this fine ship in 1995. (MERCY site here. Sister ship USNS COMFORT site here.)

Kinshasa on the Potomic has clear evidence (not that any is needed) that the Congressional outrage over the Dubai Port deal was nothing more than political pandering as another corporate purchase by a Dubai company is being ignored or explained away by the very same congressmen who were so concerned a couple of months back. While Congress has forgotten, the after effects are still rippling around the world.

The AFL-CIO weblog is expressing concerns that the background checks of those working in and needing access to ports will be unfairly targeted. The initial checks will not include a criminal background check. That will come later. The Government has yet to figure out how bad a criminal record you can have and still gain access to port facilities. Well the union has a suggestion in that area:

“We would like to have the checks limited to crimes that might have something to do with the possibility of you committing terrorism, not just any felony,” he says. Again, that’s why there needs to be an appeals process, Stallone says. “You shouldn’t lose your job for a youthful indiscretion.” He also warns that racism could enter the background-check process, since people of color are disproportionately convicted of felonies. - AFL-CIO

It will be fun to watch how this unfolds, as we are all about to learn just how many murders, robbers and other career criminals work in our ports.

Islam Online has the story of Amjad Hussain, who has been appointed Rear Admiral in the UK Navy. This is newsworthy because he is the first muslim to hold the position in the UK Navy. (Admiral Hussain is proof that it is possible to live and succeed in the UK as a muslim and be part of society. There are also numerous examples in the US too.)

The US NAVY has news that the decommissioned aircraft carrier ex-ORISKANY (CV/CVA 34) will become the largest ship intentionally sunk as an artificial reef in mid-May. It's destination is the bottom of the Gulf of Mexico.

The Law Firm of HOLLAND & KNIGHT LLP: Haight's Maritime Items:

UK – MAIB Safety Bulletin: The UK Marine Accident Investigation Branch (MAIB) issued a safety bulletin in connection with its investigation of the recent fire on the cruise ship STAR PRINCESS. The fire was on an external balcony and resulted in the death of one passenger due to smoke inhalation. Another 13 passengers were treated for the effects of smoke. The investigation continues, but areas for Improvement of the protection of external balconies have been identified. Among other things, operators of cruise ships are advised to: (1) provide increased vigilance to external balconies; (2) review crew training and response procedures; and (3) review advice provided to passengers and crew. These issues will be referred to the IMO on an expedited basis. Safety Bulletin 1/2006 (PDF) The US Coast Guard issued a Press Release stating its strong endorsement of the action taken by the MAIB and the cruise industry in this regard. (4/27/06).

The safety bulletin and the USCG statement point out the seriousness in the fire hazard that the external balconies present. I am surprised that it went undetected for so long. I know that there has been a long-time concern about the potential threat open internal spaces (the 'Main Street') in permitting fires to spread quickly inside cruise vessels, allowing fires to spread to multiple fire zones.

The following photos in the bulletin are a clear reminder of how serious this fire was:

Finally, Spank That Donkey has an accurate guess of how today's media would have covered the Doolittle Raid on Tokyo during WWII. (Not exactly something they should be proud of!) The question I have is, how would the blogs have covered it?

Other Items:

Hollywood is doing a remake of the Poseidon Adventure.

Surely, this is the last thing that the cruise industry needs at the moment.

Also, an upcoming documentary will focus on the history of the SS UNITED STATES.

The website is here, and you can view a trailer on this page. They hope to have the film ready by December. I look forward to watching it.

Yo can also checkout the SS UNITED STATES Foundation and this Site.

Perhaps I should have included this vessel in last weeks great ship projects that have yet to see water. After all, there have been a couple of attempts to bring this ship back into service. My understanding is that it is currently owned by Norwegian Cruise Lines with the idea of renovating the vessel. I am not holding my breath.

Weekly Maritime Reference:
This week I would like to point out the historical website "American Merchant Marine at War"

Dedicated to the Mariners who died in service of their country during all Wars, including Revolutionary War, World War II, Korea, Vietnam; and their U.S. Naval Armed Guard shipmates

This site is a treasure-trove of information about the Merchant Marine's contribution during wartime. To get an idea of the danger of serving in the Merchant Marine during WWII, read the story of the tanker T. C. McCOBB and of the crews attempts to get back home once they were rescued.

The Sinking of the Esso Tanker T. C. McCobb

There is much more on ther site.

Previous Editions:
Maritime Monday #6 - 24 April 2006
Maritime Monday #5 - 17 April 2006
Maritime Monday #4 - 10 April 2006
Maritime Monday #3 - 02 April 2006
Maritime Monday #2 - 27 March 2006
Maritime Monday Carnival #1 - 20 March 2006

Submission Guidelines:
Look here for more details: Submission Guidelines

You do not have to be the author to submit a blog post or news story. Feel free to suggest something that you think is worth sharing.

Sponsors:
No sponsors for this week. You can sponsor this week's post retroactively. Then again, if you are interested in doing that, then you might consider sponsoring an upcoming post. Check the submission guidelines for more details.

Feedback Welcomed!

Home

Fighting Illegal Immigration is Easy: Update III

The general consensus of the decision makers in the Government, including the President, is that we are stuck with those illegal immigrants that are already here, so we should concentrate on finding a path to legalize their presence here, up to and including granting them citizenship. What a load of bull. If any Government action will make the illegal immigration problem bigger, it is to provide a way to legalize the presence of those who are here illegally.

The long-standing position of Fred Fry International is that it is easier to fight illegal immigration than the Government is willing to admit. Lately, they are proclaiming that it is impossible to deport those who are already here illegally, so we should not even attempt to do so. Recently the Government provided us with an example proving that it is easy to fight illegal immigration by making raids on just one firm.

WASHINGTON - Federal immigration agents, carrying out the largest workplace bust in U.S. history, arrested 1,187 illegal immigrants employed by a nationwide pallet services company and filed criminal conspiracy charges against seven current and former managers, Homeland Security Secretary Michael Chertoff announced Thursday.

The 26-state roundup, conducted Wednesday by U.S. Immigration and Customs Enforcement (ICE - Press Release) agents, targeted Houston-based IFCO Systems North America Inc. and capped a 14-month investigation that involved a former illegal immigrant working as an undercover operative for ICE.

IFCO managers actively recruited illegal immigrants and provided housing, transportation and bogus work documents, officials said. Approximately 53.4 percent of the Social Security numbers for 5,800 IFCO workers during 2005 were either invalid, belonged to children or dead people, or did not match the names registered with the Social Security Administration, according to investigators. - State, SC

Do you think one of these 12 million illegal aliens is using your Social Security number? Good luck as the Government is doing nothing about Social Security fraud!

Many blogs correctly called this out as a political stunt, especially considering that many of the illegal aliens rounded up in the sting were released within a day of being detained. My initial reaction was "so what." A number of company officers were arrested and they are not going to get off so easy. In addition, all of those illegal aliens lost their jobs. Not just the 1,000 but the estimated 2,500 employees that had bogus documents.

The effects of the raid were not limited just to those illegal aliens working for that one company. Word is now making the news that all sorts of rumors are making the rounds in the illegal alien community.

MIAMI (AP) - Thousands of illegal immigrants stayed home this week amid rumors of immigration roundups that federal officials say were unfounded, leaving some industries scrambling for workers.

Len Mills, executive vice president of Associated General Contractors of South Florida, estimated at least 50 percent of workers on construction jobs in the region had not shown up for work.

"This is costing millions of dollars a day, and I don't know who is going to pay for it," he said. (Note: Perhaps those millions are what you had saved by hiring illegal labor in the first place!)

Rumors of random sweeps were rampant from coast to coast Friday, prompting many immigrants to stay home from work, take their children out of school and avoid church. Their absences added to immigrants' fears, as some thought their friends and co-workers had been arrested.

So you see, the raid did have some relevant ripple effects. You can bet that many of those here illegally, especially those who are recent arrivals, are thinking constantly about the possibility of being caught and deported. After all, many have broken a number of laws, including identity theft.

"Everybody's edgy," said Chris Ruske, owner of a southern New Jersey nursery. "There's an awful lot of rhetoric, and you wonder what's true. You wonder if the immigration Gestapo are coming to get you."

See here. Now the Government is as bad as the nazi's because they are trying to enforce the law. I say it's great that they are edgy. Mr. Ruske should be edgy too if he is employing illegal aliens. ICE doesn't need a good reputation. They should be feared and illegal aliens should believe that Immigration is coming after them. This will make others think before they even attempt to enter the US illegally.

I bet that some illegal aliens did lose their jobs as some employers received the Government's message loud and clear. In addition, the US MARSHALS SERVICE is busy targeting illegal aliens who are wanted criminals (criminal aliens.) In their latest operation, over 9,000 wanted criminals were, some who were illegal aliens. These captures are probably very impressive shows of force, so news of these captures does spread.

This coupled with actual ICE raids will help these rumors spread. Here are just a couple of other recent immigration raids:

CHARLOTTE, NC -- A total of five violent criminal aliens were arrested here in the past two weeks by U.S. Immigration and Customs Enforcement (ICE) special agents acting on information received from local law enforcement agencies and citizens in the community. - 28 April

MIAMI- Fugitives and immigration violators were among 183 arrested by U.S. Immigration and Customs Enforcement (ICE) detention and removal officers and special agents during a weeklong statewide operation that culminated Friday. - 24 April

NEW YORK, NY -- Fifty-two child predators were arrested today in the five boroughs by U.S. Immigration and Customs Enforcement (ICE) agents and officers of the New York City Department of Probation. All of the individuals arrested have been previously convicted of sex offenses including rape, sodomy, sexual abuse, attempted sexual abuse, endangering the welfare of a child, criminal sex act, course of sexual conduct against a child and sexual misconduct. The youngest of the victims was two years old. The oldest was 16. Those arrested are from the following countries: China, Cuba, Dominican Republic, Ecuador, Guatemala, Guyana, Haiti, Honduras, Italy, Jamaica, Liberia, Mexico, Norway and Trinidad. - 20 April

NEW ORLEANS, La. - Thirty-five illegal aliens, including an MS-13 gang member, were arrested here April 6 during a joint law enforcement operation between U.S. Immigration and Customs Enforcement (ICE) and the New Orleans Police Department (NOPD). The public safety operation targeted violent criminal aliens living in New Orleans neighborhoods. These arrests are part of ICE's ongoing enforcement initiative to remove those who have no legal right to remain in the country and who pose a threat to our community. Among those arrested was Jose Guadalupe Rubi-Carrizoza, 32, a Honduran national deported from the U.S. twice. Rubi-Carrizoza now faces criminal charges for illegally re-entering the country after being lawfully deported.Also arrested was 26-year-old Fredy Turcios-Rodriguez, a Honduran national convicted for carrying a concealed weapon and possession of burglary tools. Turcios-Rodriguez was previously deported from the U.S. on 5 previous occasions and he too may face criminal prosecution for illegal re-entering the country. - 14 April

WASHINGTON, D.C. – Two temporary employment agencies and nine individuals affiliated with the agencies have been charged in a $5.3 million scheme involving the employment of illegal aliens, harboring of illegal aliens, mail fraud, wire fraud, and money laundering, according to a federal indictment unsealed today in the Northern District of Ohio. According to the indictment, the defendants conspired to employ illegal aliens, as well as legal aliens who had no authorization to work in the United States. They also conspired to provide transportation and housing for these aliens, as well as help them obtain fraudulent documents. The indictment also alleges that they profited from this illegal employment scheme and laundered millions in proceeds. At the heart of the scheme were HV Connect, Inc., a temporary employment agency that operated in Philadelphia, PA, and Canton, Ohio, and TN Job Service, Inc., a temporary employment agency that operated in Philadelphia, PA, Pennsauken, NJ, Canton, Ohio, and New Philadelphia, Ohio. - 11 April

MIAMI - Drug traffickers and murderers were among the 37 criminals arrested here last week by U.S. Immigration and Customs Enforcement (ICE) special agents.
The public safety operation dubbed “Safe Streets” culminated Monday following a weeklong effort targeting violent criminal aliens living in South Florida neighborhoods. These arrests are part of ICE's ongoing enforcement initiative to remove those who have no legal right to remain in the country and who pose a threat to our community. - 5 April

NEW ORLEANS, La. -- Sixty-eight illegal aliens and two U.S. citizens were arrested here this weekend during a joint law enforcement operation between U.S. Immigration and Customs Enforcement (ICE) and the Gretna Police Department (GPD). The public safety operation targeted violent criminal aliens living in New Orleans neighborhoods. These arrests are part of ICE's ongoing enforcement initiative to remove those who have no legal right to remain in the country and who pose a threat to our community. Of the 68 individuals arrested, 12 were criminal aliens, nine had illegally re-entered the United States after having been deported, and three had outstanding warrants of removal. Some of the individuals arrested have been convicted of violent crimes including domestic violence, theft and drug possession. - 5 April

BUFFALO, N.Y - U.S. Immigration and Customs Enforcement (ICE) today announced that 1,368 people have been removed from New York in the first six months of fiscal 2006. More than 1,000 of the individuals removed had criminal convictions and many came into ICE custody directly from New York State prisons as part of ICE's Criminal Alien Program (CAP). Others were arrested as part of the ICE Fugitive Operations Program. - 4 April

That's lots of activity, and this is just in April. Notice how many of these people have already been caught and deported at least once already. This is yet another reason to strengthen our borders, if for no other reason than to keep those who have been caught and deported from entering again.

One wonders if ICE will make an appearance at the May Day protests:

The National Immigration Law Center called on organizations nationwide to sign a petition urging ICE to assure the public it won't make any immigration arrests during the protests. The agency said its policy is not to discuss potential operations. "ICE will continue to operate as it does every day of the year," Boyd said.

The rumors affected a wide variety of businesses. In New Jersey and New York, day-laborer gathering sites drew only a trickle of workers. "It is the ugliest of rumors because it has intimidated people who are already afraid. They are living in the shadows of society, wondering who is going to knock on the door," said the Rev. Allan Ramirez, pastor of the Brookville Dutch Reform Church in Long Island, N.Y.

It just might be that ICE does show up on May first. It might not be at the protests either. Perhaps they will show up at more workplaces. I don't share the sympathy of Reverend Ramirez. This is not a problem that we created and nobody seems interested in attacking the cause of why all these people are coming here illegally. The fault for that lies with the governments of our southern neighbors.

Lets see just what type of impact there is on Monday when Illegal Immigrants plan to show us how much work is done in this country by them. If they really want to get the message out, then they should boycott working for us ungrateful Americans for a full week, not just for a day. Lets really see exactly how big a problem we really have. All I think a one-day boycott is going to prove is that much of the work being done by illegals is non-critical and the mass protests will show us how many there are, bring about more pressure for the Government to go after them, not accept them. Once this issue is dealt with, we can get to the serious issue of automation in places where cheap labor has delayed the installation of machinery.


Nearly 1,200 arrested in crackdown on illegal workers - The State, SC
Raid Rumors Fuel Fear Among Immigrants - WTOP Radio DC

Make Your Own Taco Day - Jawa Report

Bush Privately Favors Citizenship for Illegals - Blogs For Bush

Fred Fry on Immigration:
Fighting Illegal Immigration: Part II - 1 April 2006
Fighting Illegal Immigration is easier than anyone is willing to admit - 18 June 2005
Senator Kennedy to illegals: "You are the Future of America" - 11 April 2006

Fred Fry on Emigration:
Before you move to Canada - 19 December 2004
Before you move to Canada: Update - 4 August 2005
Before you move to Canada: Update II - 23 January 2006

Offshore America Off-Limits to Oil Drilling

Most of America's offshore area is currently off limits to offshore oil drilling. It is simply not on the market. Everyone knows about ANWAR and that critics of ANWAR claim that drilling there will not make any difference. Well sure, not by itself, but there are many other areas that are currently off-limits to drilling. Now ANWAR is not offshore but on land in Northern Alaska which almost none of us will ever visit.

Take a look at this map. Currently, the US Government permits offshore oil exploration in the red areas:

I thought the Government wanted to reduce foreign oil reliance? They sure have a funny way of going about it.

UPDATE:

We have the following updates about politics and gas prices:

First, there is the Prince of Qatar:

Qatari Energy Minister Abdullah Bin Hamad Al Attiyah said the price of oil would drop by $15 should politicians end their expressions of concern over a halt in supplies.

Al Attiyah said the record oil prices of more than $75 per barrel was the result of fears and speculation within the market.

In other words, shut up.

Then there is the Washington Post which has a great articles about the cars taht our Congressmen and women drive:

"Since George Bush and Dick Cheney took over as president and vice president, gas prices have doubled!" charged Sen. Barbara Boxer (D-Calif.), standing at an Exxon station on Capitol Hill where regular unleaded hit $3.10. "They are too cozy with the oil industry."

She then hopped in a waiting Chrysler LHS (18 mpg) -- even though her Senate office was only a block away.

America may be addicted to oil, as President Bush puts it. But America is in the denial phase of this addiction -- as evidenced by the behavior of its lawmakers. They have proposed all kinds of solutions to high gas prices: taxes on oil companies, domestic oil drilling and releasing petroleum reserves. But they ignore the obvious: that Americans drive too much in too-big cars. - Washington Post

There is much more. Read about who is driving what in the rest of the story.

Update: 28 April 06

Rightwing Nuthouse has a dead-on parody of this whole idiotic situation.

Meantime, the Demons had a better idea (politically speaking, that is). If the Pibble party could pander to the people then the Demons could up the ante. “Let’s tax the excess profits on turnip juice,” they cried triumphantly. This had the advantage of playing to the ignorance of the people of Unis about how turnips are grown and refined while making them sound like they’re “doing something about the problem.”

Of course, all the scheming and planning by the Pibbles and the Demons did not produce one additional drop of turnip juice. So the price remained high. And the people? - RWNH

Read the whole thing. It's great!

RICKY’S FABLES (the Story of turnip juice) - rightwing Nuthouse

Going a Short Way to Make a Point - Washington Post
Qatar: Price of oil would drop $15 if politicians shut up - World Tribune

Price Gouging in Delaware - 23 April 2006
Are Record Oil Company Profits all that Bad? - 14 September 2005
How Much Gasoline do 12 Million Illegal Aliens Consume? - 26 April 2006

HOME

How Much Gasoline do 12 Million Illegal Aliens Consume?

Is it possible that the high price of gas is partly due to the demand of illegal aliens? There are those who are (foolishly) calling for a boycott of ExxonMobil and others calling for a boycott of Shell with the idea of starting a price war. As has been documented on other sites, a boycott will have no effect as the other companies will experience increased demand. The only way to lower prices this way is to reduce overall demand.

Ways to decrease overall demand include:

• Conservation
• Reducing the miles you drive
• Driving a more fuel efficient car (leaving the SUV at home)
• Using public transportation
• Carpooling, and so on.

Rationing gasoline is yet another way to control demand, basically allotting a maximum quantity to each licensed driver or car. The problem with that is that a black market is sure to pop up immediately with prices far above the current prices.

Another way to reduce the price of gasoline is to reduce the number of drivers consuming gasoline. This makes me wonder, how much gasoline do illegal aliens consume?

According to Howstuffworks.com, each household uses an average of 4 gallons of gasoline per day. According to the US Census Bureau, the average household size in the US (in 2004) is 2.6 persons. The average household size for “Hispanic or Latino (of any race)” families is 4 persons. Just to be extremely conservative, let’s say that the average household size for an illegal alien family is ten, taking into account that not all illegal alien families have a car. Let’s also say that each household has 1 car. Finally, let’s estimate a total of ten million illegal aliens.

That means there are (at least) one millions cars being operated by illegal aliens consuming at least four million gallons of gas each day.

A gasoline tanker truck can carry up to 10,000 gallons of gasoline. So the usage by illegal aliens represents 400 loaded tanker trucks of gasoline, each day.

The above is merely an example and the actual usage can vary wildly form these estimates. I have tried to estimate conservatively and believe that the actual daily usage is much higher.

Links:

Where Does My Gasoline Come From ? – US Government
How much gasoline does the United States consume in one year? – How Stuff Works
Census - Factsheets
Energy Information – US Government

HOME

Maritime Monday #6

Kind of light this week with submissions, but that just means that this week's Maritime Monday is more about what I found interesting. Thanks to those who did submit items.

This Weeks Photo:

In the spirit of Maritime Monday being about all things Maritime, I figured that this week's photo should be a Mobile Offshore Drilling Unit, or MODU for short. This is a picture of a MODU I visited in Scotland. See that crane on deck. That's how you get onboard.

(SOVEREIGN EXPLORER December, 2001. Photo by Fred)

This weeks items:

The International Organization of Masters, Mates & Pilots union has news that President Bush will be the first President to be a Graduation Speaker at the US Merchant Marine Academy. Graduation is in late June.

The Washington Post has the story of George Williams, an American found drifting on a raft of oil drums in the Skagerak Sea between Norway and Denmark. He claims to have been thrown off his ship, but will not give the name of the ship. Pretty strange. (Although strange things do happen on Merchant ships!)

DieselDuck at The Monitor has news about the BOW MARINER disaster/sinking off Virginia on 28 February 2004 with the Coast Guard placing a majority of the blame on the Captain.

The Monitor also has a photo collage of the CARNIVAL ECSTASY riding out Hurricane Rita. Be sure to click the photo to expand it!

EagleSpeak has a follow-up to the Egyptian Ferry disaster. Apparently the owner and 'corrupt' Government officials are to blame. Notice how quickly this story dropped from the headlines...

CSO Online has the Story about the Government's research into cargo tracking through the Operation Safe Commerce project. I would love to link to the report findings which were due a year ago, but as the story points out, no report has yet been released.

BBC News has coverage of the upcoming maiden voyage of Royal Caribbean's FREEDOM OF THE SEAS. This will be the world's largest passenger vessel. Cruise Reviews has the press release from Atlantis Charters announcing the first charter cruise for the vessel in January, 07. An all-gay (and lesbian) cruise.

Asian Maritime News has the story of seven Indian Seafarers currently facing murder charges in the UAE. Apparently the victim, another Indian seafarer, was beaten to death while the ship was at sea. The ship is Norwegian (International) Flag (NIS.)

Colton Company has news that the Panama Canal Authority is taking advantage of a backlog of ships looking to transit the Canal by auctioning a few transit slots each day. As their post suggests, read the Authority's terms for the auction.

Splendid Pictures Around the net has photos of the RMS QUEEN MARY 2 inside and out.

The Travel Bloggers has an update on Princess Cruise Line's attempts to avoid another balcony fire like the one that caused extensive damage to the STAR PRINCESS. I look forward to reading the accident report, especially the part that covers the ship's ability to fight a fire on the balconies. Was it that balcony fires had to be fought by dragging hoses through cabins? (I have to say, they have done a good job preventing photos of the damage getting out.)

AllAfrica.com news has the story of the USS CARR visiting (and patrolling) the Territorial waters of Liberia in West Africa. This was done with the consent of the new Liberian Government. The US Department of Defense has a press release covering the new Liberian President's trip out to the USS MOUNT WHITNEY in January to thank them for their presence in the region.

WattHead has coverage (Note: November 2005) about 'Offshore Wind Platforms' based on offshore oil platforms. Now why hasn't anyone thought about this before. (US DOE illustrated feasibility study PDF)

There is no shortage of posts about Japan's plans to legalize whaling.

My problem with the Japanese whaling issue has more to do with the fact that the Japanese Government has been illegally whaling for years, calling it 'research.' I hate liars and for their actions, the Japanese should be ashamed of their lying. If, the existing whale stocks can sustain whaling, and there seems to be evidence that this is true for Minkie whales, then one could argue that international agreements call for fishing/catching/whaling the maximum sustainable catch, even if they happen to be whales.

The Sea Shepherd Conservation Society has been maintaining an anti-whaling program. They have a video clip of their harassment of a Japanese 'research' vessel. Herald Premium Content suggests that anti-whaling nations review the aid that they are giving to the countries that Japan has bought spots onto the International Whaling Commission for, in essence buying their support. Ultima Thule says Goodbye to Moby Dick. Secular Blasphemy comments (scroll down) on the biased reporting in the UK's Independent about the matter.

Most of the whale-Blogging is the result of news coverage in the Independent Online with the stories "The great betrayal: Pro-hunting Japanese seize control of whaling commission" and "So why, exactly, is Tokyo so keen on whale hunting?". Not to pick on Japan too much, Norway and Iceland would also like to see the ban on whaling dropped. These countries should be careful for what they ask for. It might be that many others might be interested in catching whale if it becomes legalized. Don't think that you'll be able to take home the entire catch. As for me, 'Whale Sushi', yum!

The Robert Bond Papers (Canada) has "Offshore oil rigs and the terror threat".

From Haight's Maritime Items:

On April 16, 1947, one of the worst harbor disasters in the United States commenced when the French freighter GRANDCAMP, loaded with a cargo of ammonium nitrate fertilizer, caught fire and exploded. The next day, the nearby ship HIGHFLYER exploded. In the then small town of Texas City (pop. approx. 15,000) over 500 people died, about 200 were never located, and many became homeless due to the fires. Most members of the local volunteer fire department were killed while responding to the fires and explosions. The reports of the US Coast Guard Marine Board, the local chapter of the International Association of Fire Fighters, and the National Board of Fire Underwriters are linked.

The Australian / FT Business has a story out of Hong Kong about the views of Hong Kong-based Hutchison Port Holdings on how the US (overboard port security) hardline is killing co-operation needed for port security. As it turns out, they scan every container that is shipped out of their terminal but nobody was looking at the data that they were gathering.

Finally, The Secret Life of Gary has the story about Pirates and Rochester, NY.

Other Items:

Here are some very expensive vessel ideas that may or may never see open water:

Fastship has been planning a fast container service between the US East Coast and Europe with door-to-door service in six to seven days. Service this fast would provide a much cheaper alternative to shipping cargo via air. According to the website, service will begin in 2008. This is if they can obtain the funding to build the terminals, and the ships. Not only will the vessels be fast, but loading and unloading will be done by putting the cargo on rails and just rolling the cargo on and off. I have my doubts, as do many others. Then again, there is no shortage of investor cash out there. Apparently this project has been an ongoing victim of a lack of funding.

Then there is the FREEDOM SHIP. If ever built, it would be by far the largest floating cruise vessel in the world, unable to enter most (if any) ports. Large enough to include a landing stip on it's main deck capable of handling corporate jets. Apparently this project has been an ongoing victim of a lack of funding.

What is probably the longest-running-yet-to-be-built supership project, the America World City / American Flagship Project has been around for over a decade, with no sign of when construction will ever start. Once again, if built, would be the largest passenger vessel, a complete floating city, somewhat more appealing than the much larger Freedom Ship. The ship would be built in the US, crewed by Americans and cruising between US ports. Goals called for a total of three vessels. Apparently this project is an ongoing victim of a lack of funding.

Weekly Maritime Reference:
The subject of this week is Free Surface Effect. Whether vessels stay upright or capsize is due to whether they are stable or not. One issue that effects stability is Free surface effect.

When a vessel with partially filled spaces heels over, the contents of the spaces will shift. The centre of gravity moves over to the side, making the vessel less stable. - Transport Canada

Take a look at this page at Transport Canada for diagrams and explanations how free surface effect effects the stability of vessels.

Here is another page with animation of free surface effect in action. (Free-marine.com)

Free Surface effect is not limited to liquids in tanks. Take the sad ending of the SS NORMANDIE:

On 9 February 1942, sparks from a welding torch ignited a stack of thousands of lifevests filled with kapok, a highly flammable material, that had been stored in the first class dining room. The woodwork had not yet been removed, and the fire spread rapidly. The ship had a very efficient fire protection system, but it had been disconnected during the conversion. All on board fled the ship.

As firefighters on shore and in fireboats poured water on the blaze, the ship developed a dangerous list to port. About 2:45 a.m. on 10 February, the Normandie capsized, crushing a fireboat. - Wikipedia

It was the weight of the water being thrown onto the decks of the vessel that caused the vessel to list and settle at the bottom of the berth on it's side.

More recently is the AL-SALAM BOCCACCIO '98 ferry disaster. Two of the more famous ferry disasters involving free surface effect are the M/S HERALD OF FREE ENTERPRISE and the M/S ESTONIA. Ferries are especially vulnerable to loss of stability due to free surface because of the wide open car decks. Sadly this is still a problem.

Previous Editions:
Maritime Monday #5 - 17 April 2006
Maritime Monday #4 - 10 April 2006
Maritime Monday #3 - 02 April 2006
Maritime Monday #2 - 27 March 2006
Maritime Monday Carnival #1 - 20 March 2006

Submission Guidelines:
Look here for more details: Submission Guidelines

You do not have to be the author to submit a blog post or news story. Feel free to suggest something that you think is worth sharing.

Sponsors:
No sponsors for this week. You can sponsor this week's post retroactively. Then again, if you are interested in doing that, then you might consider sponsoring an upcoming post. Check the submission guidelines for more details.

Feedback Welcomed!

Home

Price Gouging in Delaware

Once again the price of gas is on the rise and politicians are out for blood claiming that price gouging will not be tolerated and will be prosecuted. Well I have found a price gouger, but don't expect anyone to make them account for their actions as

the Price gouger is the State of Delaware.

The State of Delaware is not gouging you at the pump. No, they got you right on the highway, charging tolls going north and south on the Interstate I-95 corridor. Of that route, only 16 miles are in Delaware, but it is an expensive 16 miles.

Take the following table:

That's $9 to make a round trip through Delaware, just in tolls. To drive through NJ, it's another $9.90, but that covers 200 miles of the trip.

Per Mile we have the following:

That's 28 cents per mile in tolls for Delaware. If New Jersey charged the same rate that Delaware does, it would cost $56 to make a round trip through NJ instead of the $9.90 it currently does.

So how does this compare to the cost of gas?

Take a look at the following table showing the gasoline cost per mile:

For a car getting a lousy gas mileage of 20 miles to the gallon (highway), it would cost 15 cents a mile for gas with gas costing $3 a gallon. For cars traveling through the State of Delaware up and down I-95, the tolls are at least twice as big an expense as gas, for that portion of the trip.

There is one important difference between the two expenses. The state cannot control the price of gas. It can however control the price of the tolls. As in many states, tolls are partly used for items completely unrelated to the road and bridges that the toll-payers are riding over, in many cases going to subsidize public transportation. (It costs $1 for me to ride the bus to work in VA.)

Congressman J. Randy Forbes of Virginia has a gas price primer on his Congressional website which includes the following graphic explaining the factors determining the price of gas:

So over half of the cost of gas is related to the price of crude oil, which has been shooting through the roof. The last time I checked, the price of crude oil was controlled more by OPEC than ExxonMobil. Since Crude oil is a record prices, doesn't it make sense that gasoline would be expensive?

Blaming gas companies is just a lame, especially ExxonMobil which is trying to get as much oil onto the market as possible. Some people are even claiming that they have to go to the pawnshop to get extra money for gas. We have all seen these people interviewed on the news claiming that the price of gas is killing them, as they stand next to their NEW SUV. Exactly WHO created the financial difficulties in these households?

Just imagine what the price of gas would be if it was the Government that provided gasoline to America? As far as providing relief, how about reducing the property tax on cars? How about lowering tolls? How about lowering the tax on gasoline? How about allowing oil companies build new refineries? How about not treating oil companies like criminals in California with so many rules and prohibitions that it is nearly impossible to move oil into the state for consumers? How about making better use of oil and reducing demand by better using coal and nuclear?

Take this from Senator Biden:

WASHINGTON (AP)- Senator Joe Biden is urging President Bush to back a Senate bill designed to eliminate gasoline price-gouging.

Biden and 15 fellow Democrats, including Senate Minority Leader Harry Reid, have sent a letter to the President calling on him to support the bill. It would give states new powers to prosecute anyone who takes advantage of short supplies of gas to overcharge for it. - WBOC

The Senator is not bothering to point out that in the last price run-up after hurricane Katrina there were very few gougers in the market. This is essentially a non-issue. This is a classic case of pandering to voters. Fine, the Senator is planning to run for President so this is to be expected. So he should have some idea about what to do about the high price of oil. Why wait until he becomes President to implement it. Why not let everyone in on the secret and ride the credit right into the White House. I suspect that he has nothing. One thing I can guess, he has not problem gouging drivers that have little choice but to drive through his little state and every time we do, we are all reminded of what the whole country could be like if Biden wins the Presidency.

Congress Blowing Hot Air at Energy Crunch - California Conservative
Trivia Tidbit Of The Day: Part 318 -- Black Gold, Texas Tea. - Willisms
Stupidity of the Day - File it Under

Tolls on I-95 - I-95 Exit Information Guide
Turnpike Toll Calculator - NJ Turnpike

More Fred Fry:

Biden 2008? - Last Exit Before Toll - 09 October 2005
Are Record Oil Company Profits all that Bad? - 14 September 2005
Being Less Poor - 27 October 2005