Crude Oil Prices Fell Wednesday

Crude Oil Prices fell Wednesday, pulled down by a retreat in gasoline futures prompted by the partial reopening of a Gulf Coast shipping channel closed last week after an oil spill.

Oil prices remain about 23 % higher than a year ago, propped up by strong global demand and geopolitical worries such as violence in Nigeria, the war in Iraq and Iran‘s diplomatic showdown with the West over its nuclear program.

Before Wednesday‘s decline, gasoline futures had risen by almost 20 cents a gallon over the past week following the closure of the Calcasieu Ship Channel, where a cleanup is underway following an oil spill at a Citgo Petroleum Corp. refinery in Lake Charles, La.

But on Wednesday the Coast Guard said the channel had been partly reoponed, raising hopes that normal traffic could resume as early as this weekend. Limited tug and barge traffic continues to move through an intercoastal waterway.

A Coast Guard spokesman said the ship channel could remain mostly closed through the end of the week, depending on how the cleanup proceeds.

Over the past four weeks, daily gasoline demand was up 0.9 percent at 9.4 million barrels a day.

However, with refineries boosting the amount of oil they produce, Evans said the market is well supplied.

Merrill Lynch expects "severe supply bottlenecks" to persist for another two years, though it said with crude oil inventories rising around the globe OPEC may need to cut production next year.

Iran is OPEC‘s No. 2 producer of oil, and traders are worried about the outlook for those supplies.

Ottawa Airport Expansion Set to Take Off

Less than three years after the new terminal at the Ottawa International Airport opened, construction will start this summer on Phase II.

The project, which will cost an estimated $95 million, will be completed in 2008. It will be paid for with $15 airport-improvement fees collected from passengers taking off from the airport.

The expansion is the result of consistent increased passenger volumes and higher revenue over the past three years. Total passenger volumes of 3,735,433 set a new record for the airport last year, an increase of more than 100,000 from 2004.

The Ottawa Macdonald-Cartier International Airport Authority (OMCIAA) generated revenue of $72.5 million in 2005, compared to $69.6 million in 2004 and $63.3 million in 2003.

Expected passenger numbers for 2006 have not yet been released, but OMCIAA board chair Jim Durrell says: "All signs point to continued growth in 2006 and beyond."

The current terminal cost $310 million to build and includes 18 gates and a 60,000- sq.-m building, as well as a four-storey, 1,700-car parking garage and a de-icing facility. The airport has three runways, which were revamped during the construction of the current terminal.

Phase I came in under budget and ahead of schedule, and Durrell says the airport authority will not be asking for any federal money for the latest stage.

"I cannot emphasize enough that no taxpayer dollars will be used to fund this expansion," he says. "It will be paid for entirely by the $15 airport-improvement fee that is collected from all enplaned passengers."

Phase II planning has been in the works for some time. When complete it will add a 7,000- sq.-m terminal to the airport, as well as another 12 gates.

"Given the increase in passenger volumes and the addition of several flights and charter airlines since the opening of the new terminal in 2003, we are now at a point where congestion during peak times could become an impediment to further growth," Durrell says.

The focus on staying ahead of increasing passenger loads appears to be warranted since both Air Canada and WestJet have had strong passenger load performances in recent months.

Air Canada filled 83.2 per cent of its available seats in May, up from about 80 per cent in May 2005. WestJet also had impressive passenger loads in May, with 76.9 per cent of its seats filled - its best May on record.

Charter airlines such as Air Transat have also have been having a good year. As well, Transat AT, Air Transat's parent, recently acquired Thomas Cook Travel Ltd., making it the largest retail distributor of holiday travel products in Canada.

Since the current terminal opened in 2003, charter airlines, such as Ottawa-based Zoom Airlines, also have started using the Ottawa airport. The OMCIAA is not commenting on whether more airlines will be coming to the city once Phase II is finished.

The latest expansion will have some challenges not seen in the previous phase.

The biggest will be the demolition of the old terminal, which Durrell refers to as a "third-world facility."

The old terminal, which once gave those flying into Ottawa a grim view of what to expect from the city, is being demolished at the same time as the Phase II construction is occurring.

Once the old terminal is gone, it will mean more room for planes to manoeuvre. Currently, two large planes can't pass side by side at the airport. With the old terminal gone, that will no longer be an issue.

"It will enable a lot better circulation of runways and on the aprons," says Dale Craig, president of JL Richards, the Ottawa company building the Phase II structure. "Both the airport operators and the carriers will be happy."

Building an airport in phases does cause some challenges, however.

"It adds some complexity making sure you hook into existing services," Craig says.

Some of the leftover material from the old terminal will be incorporated in the new building, including using some of the douglas fir wood from one of the old hangars.

"We're trying to incorporate some different, warmer materials," Craig says.

By growing slowly and monitoring demand, the airport has been able to control its budget and keep customers happy in the process, despite the large projects they've taken on, says Pierre Lanoix, vice-president of operations and construction. "If you take small pieces, you can eat an elephant," he says.

"I think it really represents the completion of a dream," Craig says.

A third expansion for the airport is planned, but will only be undertaken as passenger volumes warrant.

It is estimated that the airport contributes more than $1 billion annually to the local economy.

"It's been proven that when the airport does well, the local economy does well, and there are linkages between the growth of passenger volumes and direct and indirect employment in the surrounding communities," Durrell says.

An example is Dell Inc., which recently opened a major call centre in the west end of the city, creating about 1000 jobs.

Lanoix says one of Dell's stipulations for coming to Ottawa, was that it had to have an easily accessible, first-class airport.

BusinessEdge

Automakers Have not Adjusted Car Prices

Automakers have not adjusted car prices to reflect the strong Canadian dollar and the typical new vehicle now costs 17 % more in Canada than in the U.S.

This difference, averaging $5,842 in Canadian-dollar terms, reverses a Canadian advantage of $3,167 in 1999.

The survey released yesterday is based on listed manufacturers' suggested retail prices (MSRP - not actual transaction prices).

Analyst Dennis DesRosiers noted that the exchange rate -- with the Canadian dollar near 90 cents US, up from about 67 cents in 1999 -- has enabled automakers to be aggressive with Canadian incentives.

It appears that, to date, automakers have not adjusted their MSRPs to reflect our dollar's newfound strength, and Canadian vehicle buyers have not reaped the benefits resultant from a strong currency.

Gas Prices Flat as Market Looks for Direction

Gas prices were little changed Monday despite threats from Iran's oil minister that his country could disrupt the world's supply if it were punished amid an international standoff over its nuclear program.

The U.S. and its European allies say Iran has been enriching uranium in an attempt to produce nuclear weapons, but Tehran says the uranium will be used only for a peaceful nuclear energy program.

Washington has warned Iran that it could face political and economic sanctions before the U.N. Security Council if it doesn't stop its nuclear activities.

Hamaneh said that a supply disruption by Iran - the world's fourth-largest oil producer and exporter - would drive oil prices above US$100 a barrel.

Yet oil prices held steady following his comments, with light, sweet crude for August delivery falling 5 cents to US $70.82 a barrel in electronic trading by midday in Europe. Brent crude for August rose 5 cents to US $69.98 a barrel on London's ICE Futures exchange.

"There's a risk premium that has been built in the oil price," said Adrian Loh, a Singapore-based regional oil analyst for Merrill Lynch. "Without any resolution from Iran, prices will stay the same around US$70."

Crude futures have held above US $70 a barrel for the previous week, anchored by strong demand, refinery glitches and jitters about the unresolved tension between the West and Iran.

The United States and its European allies say Iran has been enriching uranium in an attempt to produce nuclear weapons, but Tehran says the uranium will be used only for a peaceful nuclear energy program.

Hamaneh's comments were the second time in a month that Iran has threatened to disrupt the world's oil supply if Tehran is punished over its nuclear program.

Elsewhere, two Filipino oil workers kidnapped in Nigeria's southern delta were released Sunday after five days in captivity, concluding the latest hostage crisis in a tumultuous region where such episodes have become almost commonplace.

Attacks on oil pipelines and kidnappings have cut Nigerian oil production by more than 20 % this year, adding to upward pressure on prices. The workers were employees of Petroleum Geo-Services, an Oslo, Norway-based oil-field services company.

In other Nymex trading, gasoline futures rose almost a cent to US $2.1375 a gallon. Heating oil futures were up more than half a cent to US$1.9685 a gallon, while natural gas futures fell 13 cents to US $6.090 per 1,000 cubic feet.

Refineries are trying to boost gasoline output in preparation for the U.S. July 4 holiday, when demand rises as Americans travel. But analysts have noted that plant capacity has been reduced due to the damage from last year's hurricanes to Gulf of Mexico coast refineries.

Canadian Students Create Vehicle that Travels from Vancouver to Halifax on a Gallon of Gas

A team of engineering Canadian students from The University of British Columbia (UBC) has built a vehicle so efficient that it could travel from Vancouver to Halifax on a gallon of gas.

The futuristic-looking, single-occupancy vehicle won top prize at a recent international competition, marking the UBC team’s fourth win in as many years.

The Society of Automotive Engineers (SAE) Supermileage Competition took place June 9 in Marshall, Michigan. Forty teams from Canada, the U.S. and India competed in designing and building the most fuel-efficient vehicle.

“We achieved this level of efficiency by optimizing many aspects of the vehicle design, including: aerodynamics, light-weight construction, a small displacement engine (54 cc), and conservative driving habits,” says Team Captain Kevin Li.

The UBC design, which required the driver to lie down while navigating it, achieved 3,145 miles per US gallon (0.074 litres/100 km) -- equivalent of Vancouver to Halifax on a gallon (3.79 litres) of gas -- costing less than $5 at the pump.

UBC’s student team has taken first place four out of the six years it has competed, with 2006 marking the fourth straight victory. Last year the UBC team beat out 27 teams by reaching 1,600 miles per gallon (mpg).

Université Laval (Que.) took second place this year with a score of 1,823 mpg. Other teams represented University of Windsor, University of California, Los Angeles, UC Berkeley, Pennsylvania State University, and the Delhi College of Engineering.

Supermileage (http://www.supermileage.org) is an annual student competition that challenges students to design, build, and drive a single person vehicle (powered solely by a gasoline engine) to achieve the best fuel mileage possible. The vehicle must be powered by only an internal combustion engine, with no assistance from electric motors or human propulsion.

The UBC project is funded with support from TD Friends of the Environment Foundation, AirCare, the Walter Gage Memorial Fund, and the UBC Dept. of Mechanical Engineering.

UBC

Tips To Help You Save Money On Gas

While we can't do anything about the actual price of gas, we can do something about how often we need to buy it. Here are some tips for saving money on gasoline:

Drive at Steady Speeds
Driving steadily at the speed limit can really help cut down on your vehicle's gas consumption. Stops and starts take more gas, so try to anticipate stops and traffic flow ahead of you as much as possible. Also, try to coast when possible, as revving and rapid acceleration use more gas. Driving your car too fast can really cost you, both with regard to gas and the speeding ticket you might receive! Experts say that each 5 mph you drive over 60 mph is like adding an additional ten to twenty cents to each gallon of gas you buy.

Keep Your Engine Tuned
Not only do regular tune-ups prevent unwanted breakdowns; they also help you save money on gas. Some mechanics estimate that a poorly tuned engine can use up to 50% more gas than one that is running well. This includes remembering to change your oil and air filters every 3,000 miles, or as often as recommended in your vehicle's owner's manual. The U.S. Department of Energy estimates that you can save up to 10% in gas mileage by replacing a faulty air filter.

Keep Your Tires Properly Inflated
The proper inflation for your tires should be specified in your owner's manual. If your tires are under-inflated, your vehicle will consume more gas when you drive. The U.S. Department of Energy says that drivers can save an average of 3.3 percent by keeping their tires properly inflated.

Try to Minimize Your Driving
Try to plan one long trip instead of several short trips (this includes combining errands when possible). If you can, try to carpool, use alternate forms of transportation (buses, trains, subways) or ride your bike or walk if your destination is nearby and you can spare the time. These are obvious ways to save gas, and they have the additional benefit of helping to spare the environment. You can also try to stagger your work hours so that you are not driving in prime traffic times.

Consider Buying a Smaller, More Fuel Efficient Car
Smaller cars are not only often less expensive to purchase and cheaper to insure, but they also use less gas (because they are lighter). Also, cars with automatic transmissions get an average of 5 miles per gallon less than manual transmissions, and six-cylinder engines get about 4-5 miles per gallon less than four-cylinder engines.

Cut Down on the A/C and Extra Baggage
While on the highway, closed windows decrease air resistance, but when you are driving on city streets and in stop-and-go traffic, it might be a good idea to open the windows rather than run the air conditioner (air conditioners run on gas). Also, cut down on the amount of junk you keep in your car (and in roof racks). Extra weight equals extra gas.

With these tips, you can save money on gasoline, and reduce your out of pocket expenses.

Super Ethanol Is On Its Way

Cellulosic ethanol, the biofuel that differs from corn-based ethanol in that it can be made from pretty much any organic matter, has made an impression among people who matter.

Alan Greenspan, the revered former chairman of the Federal Reserve with a big distaste for irrational exuberance, recently sang its praises before a Congressional hearing on energy security. Greenspan said cellulosic ethanol is the only alternative energy source that could be produced in enough volume to make a dent in gas usage.

"You'll get an awful lot of investments [into this technology] coming in, especially if the numbers make sense, which I think they do," he said.

And last month Goldman Sachs (Charts), the world's largest investment bank, poured $27 million into Iogen, a Canadian-based biotech specializing in ethanol made from cellulose.

It used to be thought that this fuel, which some argue has the potential to replace more than two thirds of all gasoline used in the U.S., was decades away from commercial viability.

But high gas prices, a touch of technical innovation, and a healthy dose of capital may move that date up.

"There are a lot of people who think the technology is there," and could be competitive even if oil prices return to $30 a barrel, said Greg Bohannon, a managing partner at Greenrock Capital, a California-based private equity fund that focuses on renewable energy. "Why would Goldman Sachs invest in a company that's not going to be commercially viable for 10 years?"

Chances are, they didn't.
Beyond corn

Most ethanol currently produced in the U.S. is made from corn kernels.

Its benefits have been well documented in the press, especially since gasoline prices reached a record average of $3.06 a gallon last September, and haven't fallen much since.

Ethanol is clean burning. It's renewable. And it costs about a dollar a gallon to produce. Existing cars can run on 10 percent ethanol with no modifications, and they'd need only about $100 worth of tinkering to be 85 percent ethanol powered. And, perhaps most importantly, it's domestically produced.

But there are a few major problems with corn-based ethanol.

First, it takes a lot of energy to make it. According to the Department of Energy, most studies put the ratio as low as 1:1.4 - meaning that for every one unit of energy spent, only 1.4 units of ethanol energy are created. Indeed, there are some camps who believe producing corn-based ethanol actually results in a net loss of energy.

Second, an expensive infrastructure would need to be built if people started using mostly ethanol in their vehicles, since ethanol is water soluble and the existing pipelines and filling station equipment for gasoline are not completely water tight.

Third, there's not enough corn available. John Ashworth, a biomass expert at the Department of Energy's National Renewable Energy Laboratory, said corn could only supply about 12 to 18 billion gallons of ethanol a year, or about 10 percent of the nation's 140 billion gallon-a-year gasoline habit.

After that, ethanol would start to run up the price of corn, raising the cost of everything from eggs to Coca Cola. Of course the same problem would emerge with ethanol made with sugarcane or soy or any other food crop.
Wood chips to the rescue

Cellulosic ethanol has all the advantages of corn-based ethanol - there is no difference in the ethanol, only in the way it's produced.

But unlike corn-based ethanol, cellulosic ethanol can be made from a variety of things that might otherwise be considered waste – sewage sludge, switchgrass, plant stalks, trees, even coal – virtually anything that contains carbon.

Ashworth said there are an estimated one billion tons of such material available in the U.S. every year, enough for 100 billion gallons of ethanol.

While it's not feasible to actually go out and collect every ounce of that one billion tons, he said it's not unreasonable to expect ethanol to replace 40 billion gallons of gasoline in the near future.

"There's a lot of venture capitol out there that's willing to invest in cellulosic ethanol," he said. "You're likely to see some plants built in the next 12 to 18 months."

Entrepreneurs are in fact pressing ahead with ambitious plans.

"We know the technology is proven," said Jim Stewart, a spokesman for Bioengineering Resources Inc., or BRI, an Arkansas-based biofuel outfit. "It's at the point of commercialization."

Stewart said BRI uses a patented bacterial culture to transform organic matter into ethanol, and can produce a gallon of it at a fourth the retail cost of a gallon of gas.

He said the company plans to have 4 plants operating commercially within the next 16 to 18 months, but some industry-watchers believe it will be at least several years before cellulosic ethanol production will become commerically viable.

Vancouver-based Syntec Biofuel uses a different process to make ethanol. It turns the organic matter into gas and then moves the gas over a metal catalyst, which then turns it into liquid fuel. But the end result is the same.

Syntec hopes to have a full-scale plant up and running in three years, then plans to make most of its money by selling the plant's design to outside producers.

Company spokesman Jeff Eltom touted the efficiency of Syntec's process, saying it plans to get 10 units of energy out of every one unit they put in.

"We're not going to totally replace gasoline," said Eltom. "But we can take a big chunk out of what we import and become more energy efficient."
Temperance

Eltom's comment reflects the conventional wisdom in the alternative energy field: As the shift is made from fossil fuels to other options, it won't be any one single thing that meets the world's energy needs, but rather a mix of sources that will do so.

Still, not everyone believes cellulose ethanol will be part of that mix in the near term.

When the U.S. Energy Information Administration released its long term world energy outlook earlier this week, it projected a surge in U.S. oil consumption over the next 25 years, mostly due to transportation needs.

The agency said it does take new technologies into account when making its predictions, but that it believes cellulose ethanol is still too expensive to compete in the market place with corn ethanol and gasoline.

"It would take a breakthrough in the costs," said Andy Kydes, a forecaster at EIA. "It could happen, and we have hopes for it, but right now it's not on our radar."

Kydes did, however, ask for the names and phone numbers of the companies mentioned in this story, saying the agency would "look into it."

CNN

PM to Ban Street Racing

The Conservative government will specifically outlaw street racing, with repeat offenders facing jail, Prime Minister Stephen Harper said yesterday.

The proposed legislation will create a new Criminal Code offence of street racing and those convicted will face driving bans and stiffer sentences than under existing crimes involving vehicles.

“We will have a series of escalating penalties that involve combinations of imprisonment and driving prohibition,” said Harper, adding he expects the detailed bill to be tabled in the Commons around mid-June.

The current Criminal Code section covering dangerous driving carries a maximum sentence of five years, 10 years if someone is injured and up to 14 years if someone is killed.

Harper made the announcement at the RCMP’s B.C. headquarters before a group of teens and standing beside blown up photos of wrecked cars, including the mangled RCMP cruiser of Const. Jimmy Ng, killed in 2002 by a street racer who was paroled last fall.

Harper also noted Vancouver residents’ outrage that the two drivers whose street race killed pedestrian Irene Thorpe in 2000 were sentenced to house arrest, and referred to outrage in Toronto when an alleged street racer killed cabbie Tahir Khan in a collision last January.

“We’re committed to a justice system that hands down serious time to those who commit serious crimes,” said Harper. “No more excuses, no more broken promises, no more favouring the rights of criminals of those of victims. We will crack down on crime. We will protect the Canadian way of life.”

Driving in Ottawa

Gas Prices - Public Service Announcement

Who Killed the Electric Car?

This week, we talk about his upcoming documentary "Who Killed the Electric Car?" The film looks at the hopeful birth and untimely death of the electric car, an environmentally-friendly, cost-saving salvation to some, but a profit barrier to others.

In a film that has all the elements of a murder mystery, Paine points the finger at car companies, the oil industry, bad ad campaigns, consumer wariness, and a lack of commitment from the US government.

The film is about why the only kind of cars that we can drive run on oil. And for a while there was a terrific alternative, a pure electric car.

In 1996, General Motors launched the first modern-day commercially available electric car, the EV1. The car required no fuel and could be plugged in for recharging at home and at a number of so-called battery parks.

Many of the people who leased the car, including a number of celebrities, said the car drove like a dream.

The EV1 was a high performer. It could do a U-turn on a dime; it was incredibly quiet and smooth. And it was fast. I could beat any Porsche off the line at a stoplight. I loved it.

After California regulators saw G.M.s electric car in the late 1980s, they launched a zero-emissions vehicle program in 1990 to clean up the state's smoggy skies.

Under the program, two percent of all new cars sold had to be electric by 1998 and 10 percent by 2003.

But it was not to be. A little over 1,000 EV1s were produced by G.M. before the company pulled the plug on the project in 2002 due to insufficient demand. Other major car makers also ceased production of their electric vehicles.

In the wake of a legal challenge from G.M. and DaimlerChrysler, California amended its regulations and abandoned its goals. Shortly thereafter, automakers began reclaiming and dismantling their electrics as they came off lease.

Some suggest that G.M. -- which says it invested some $1 billion in the EV1 -- never really wanted the cars to take off. They say G.M. intentionally sabotaged their own marketing efforts because they feared the car would cannibalize its existing business. G.M. disputes these claims.

Take a trip with us this week as we find out more about why the electric car slipped off the road.

"Who Killed the Electric Car" appears in theaters in New York and Los Angeles on June 28th and in other theaters throughout the country sometime this summer.

For more on the film, visit Who Killed the Electric Car?

Oil Prices Fall on Supply Future

Crude prices fell Friday after good news about supply from the United States and Russia and lack of negative news from global tension points brought prices down from brief highs over $70.

Prices were initially spurred higher by concern over oil-rich Iran . US and European officials in Vienna urged Tehran on Thursday to freeze uranium enrichment and stop withholding information about its nuclear program. The chief U.S. delegate to the International Atomic Energy Agency , Gregory L. Schulte, warned that if Iran remained defiant it could face "the weight of the Security Council."

Shell Canada Acquires BlackRock Oil Company

Shell Canada announced today thaton June 16, 2006, approximately 99,778,511 common shares of BlackRock Ventures Inc. have been validly deposited to the offer by BR Oil Sands Corporation, a wholly-owned subsidiary of Shell Canada, to acquire all of the common shares of BlackRock (including common shares issuable upon the exercise or
surrender of any options or conversion of any convertible debentures). BR Oil Sands Corporation has taken up all such shares, which represent approximately 92.8% of the common shares of BlackRock on a fully-diluted basis, and will pay for such shares on June 21, 2006.
As a result of today's announcement, Shell Canada, through its wholly-owned subsidiary BR Oil Sands Corporation, has now declared its offer to acquire the common shares of BlackRock to be wholly unconditional.
Upon completion of a compulsory acquisition or subsequent acquisition transaction, BR Oil Sands Corporation intends to de-list the BlackRock shares from the Toronto Stock Exchange and cause BlackRock to apply to securities regulatory authorities to cease to be a reporting issuer. Shareholders are encouraged to tender their remaining BlackRock common shares, including shares issuable on the conversion of the convertible debentures, to the offer as soon as possible, and in any event prior to
June 27, 2006, to receive prompt payment.

Toyota's Hybrid Prius Sales Top 500,000 Units

Toyota said on Wednesday cumulative sales of its Prius hybrid car hit 504,700 units worldwide at the end of April, passing the half-million milestone in 8.5 years.

Japan's top auto maker, which became the world's first to offer a gasoline-electric hybrid in 1997, has been leading the industry in promoting the fuel-sipping cars, aiming to sell 1 million units annually in the years shortly after 2010.

Demand has surged, especially after Toyota rolled out the remodelled Prius sedan in 2003 powered by a second-generation hybrid system, which improved fuel economy and performance.

Hybrid cars save fuel by capturing excess energy and feeding it to an electric motor under certain driving conditions.

The auto maker has said it wants to eventually offer the powertrain across its entire line-up. Sales of all of its hybrid vehicles, including on the Lexus badge, passed 600,000 units at the end of March.

Gas Prices Push Consumer Inflation Higher in Canada

Consumer inflation registered another sizable increase in May, pushed higher by soaring gasoline prices. Core inflation excluding food and energy was also worse than expected but analysts took comfort in the fact that the jump came from special factors.

The Consumer Price Index rose 0.4 % in May after an even bigger 0.6 % rise in April. Gasoline prices jumped by 4.9 % and have been soaring this year at an annual rate of 69.4 %, as motorists contend with pump prices above $0.9 per gallon in many parts of the country.

Excluding energy and food, core inflation rose by a larger-than-expected 0.3 %. That increase was certain to get attention at the Federal Reserve, where Chairman Ben Bernanke last week said a recent uptick in core inflation has Fed officials concerned.

Private economists said the advance made another rate hike at the Fed's June 28-29 meeting a virtual certainty.

Iraqi Oil Shipments to Turkey Stopped Today

Iraqi oil shipments to the Turkish port of Ceyhan have stopped today pending a report on the condition of the pipeline.

Exports from Kirkuk had restarted Saturday after months of no activity, and Iraq had managed to pump around 250,000 barrels a day of Kirkuk oil to the Turkish port. The shipments from Iraq's North Oil Company were the first in months due to militant attacks on oil facilities.

The North Oil Company started pumping oil to Ceyhan as a test to check the condition of the pipelines and they pumped all the crude oil stored for that reason late Tuesday. There was no problem at all and we are waiting for the reports.

The North Oil Co. did not say when oil pumping would resume.

Iraq currently produces around 250,000 barrels a day in the north.

Oil Prices Reversing 2-Day Decline

Gas and Oil prices rose Wednesday, reversing a two day decline as traders shrugged off recent concerns that rising inflation and interest rates could bring an economic slowdown that would depress energy demand.

The persistent worries about higher interest rates cutting into economic growth spurred Tuesday's selloffs in commodities, including crude, and stocks around the world.

Oil is less affected by inflation fears than other commodities. It faces its own supply and demand fundamentals.

The overall tightness in the energy complex provides a floor to how low oil prices can go.

Light, sweet crude for July delivery rose 31 cents to $68.87 a barrel in electronic trading on the New York Mercantile Exchange by afternoon in Europe. On Tuesday, the contract had fallen $1.80.

In London, July contracts for Brent crude rose 29 cents to $67.21 per barrel on the ICE Futures exchange.

A new report on US oil inventories, to be released later Wednesday, is expected to show gains, which could depress prices again.

Analysts surveyed by Dow Jones Newswires expect this week's data to show a build of 700,000 barrels in gasoline stocks and an increase of 1.6 million barrels in distillate stocks, which include heating oil and diesel fuel.

If the DOE shows additional builds in inventories and can give an increase in refinery utilization and gasoline production, there is a chance that we could see a major breakdown in prices.

In other trading Wednesday, gasoline futures rose a cent to $2.0650 a gallon, while heating oil prices were up nearly 2 cents to $1.9490 a gallon. Natural gas prices rose 5 cents to $6.213 per 1,000 cubic feet.

Oil prices had fallen earlier this week amid positive developments in Iran's face-off with the West over its nuclear program and news that worldwide energy demand is growing more slowly.

World crude demand in 2006 would be lower than previously expected at a time when inventories in the US and Asia are at a 20-year high.

Oil prices remain about 23 % higher than a year ago because the world's oil producers are pumping almost as much as they can in order to meet daily demand, leaving what is by historical standards a slimmer-than-usual cushion of surplus production capacity.

With daily oil demand expected to be about 85 million barrels per day in 2006, this cushion is estimated to be around 2 million barrels per day, most of it in Saudi Arabia.

Canadians Expect to Pay More for Gas This Summer

Drivers in Canada expect to pay more when they fill up at the gas pump this summer.

Almost 80 % of Canadians expect gasoline prices to rise by 10 to 20 cents per litre or more over the summer months. The price for a litre of regular gasoline averaged $1.08 across Canada.

37 % of Canadians said they've increased their consumption of the fuel over the past three years despite a more than 40 % rise in gasoline prices since 2004.

However, Canadians are beginning to contemplate changing their ways by considering the purchase of a more fuel-efficient vehicle (55 % ) or reducing their amount of driving (57 % ).

There is a way to go before gasoline hits the kind of price point that will cause consumers to fundamentally change their driving habits.

In Canada, that's probably somewhere around the $1.60 per litre level.

Canada supplies all its domestic needs for gasoline. In the survey, however, only 15 % of respondents believed that 70 % or more of gasoline was supplied domestically.

Meanwhile, consumption of gasoline for all types of motor vehicles slipped in 2005 for only the second time in a decade.

In 2005, Canadian drivers consumed an estimated 39.8 billion litres of gasoline, a 1.4 per cent decline from the 40.3 billion litres in 2004.

Consumption declined in all provinces expect for Prince Edward Island and Alberta.

Oil Prices Climbed Past $71

Oil prices climbed past $71 as violence continued unabated in Iraq, dashing some hopes that the death of a top al Qaeda leader would turn the tide for the country's struggling oil sector.

Light crude for July delivery rose 90 cents to $71.25 a barrel, trimming this week's losses of around 3 percent.

Prices fell sharply on Thursday after US aircraft killed al Qaeda's leader in Iraq, Abu Musab al-Zarqawi, raising some hope for an improvement in security.

Yesterday's move was totally overdone. We can't assume the destruction going on in Iraq is done by just one person.

Iraq's oil minister Hussain al-Shahristani told Reuters on Thursday that this would reduce violence and help improve Iraq's oil production.

Analysts warned however against reading too much into the killing of Zarqawi, who masterminded the deaths of hundreds in bombings, saying it would not end threats to an oil sector curtailed by decades of war and sanctions.

On the same day of Zarqawi's death, gunmen kidnapped a senior official of Iraq's oil ministry after he left work in Baghdad. Also, a string of bombs in Baghdad killed at least 31 people and wounded scores.

Prices also found support after tensions reignited between the West and Iran as Tehran launched a fresh round of uranium enrichment.

Iran launched a fresh round of uranium enrichment this week just as world powers offered it incentives to halt nuclear fuel work with the potential to produce atomic bombs.

The Metamaterial "Star" Solar Battery Unveiled

On May 25th, the world-renowned Russian Science Center celebrated its 50th year anniversary of the Joint Institute for Nuclear Research (JINR) by presenting a new "star battery" technology, which they describe as "revolutionary".

Invented by the scientists at the Scientific Center of Applied Research (SCAR) at JINR, the Star battery was produced on the basis of a new substance to be known as Geteroelectric matter ("heteroelectric" is probably a better translation, or "metamaterial"). It consists of a Geteroelectrical photoelement of high efficiency in the visible and infrared range. It has a Geteroelectrical capacitor with huge capacity while being very compact.

A geterogen substance consists of a carrier and an active element, a nanoparticle of matter which is different from the substance of the carrier. The distance between the nanoparticles is less than the wavelength of an incident electromagnetic wave.

The Geteroelectrics patent is of the 'umbrella' type used in the Russian Federation. Patent No. 2249277 covers 24 fields of scientific research, and "allows driving and transforming the electromagnetic fields, providing the production of devices with forecasting optical, electrical and magnetic properties."

The following patents on the methods and apparatuses using the Geteroelectrical peculiar properties are without parallel in the world:

• Nanoamplifier of electromagnetic radiation (№2266596),
• DC and AC capacitors and internally inherent elements of integral schemes (№2266585),
• mirror (№2265870),
• Method of generation of coherent electromagnetic radiation and dipole nanolaser on its base (№2249278),
• Optical glass (№2209785)
• Photocathode (№2216815)
• Geterogen photoelement (№2217845)
• Photoelement (№2222846)

The optical glass made with Geteroelectric is claimed to have ten times the index of refraction -- a record.

Presently, the weak application of solar energy is due to the following insufficiencies:

• Low efficiency of light conversion into the electrical current (not more 20%).
• No possibility to receive electric power at night, on cloudy days, or within a country with a dark season of short days with low-intensity sunlight (or none, as in the Arctic).
• Absence of high effectiveness, and an ecological safe source of energy accumulation (presently acid accumulators [battery] are used).

None of the above-mentioned insufficiencies is present in the STAR Battery.

The Geteroelectrical photoelement developed by S.C.A.R. at J.I.N.R. is the main component of the STAR BATTERY which possesses the following technical and commercial advantages:

• The efficiency of light transformation in visible range is 54% (A world record today).
• As for infra-red light, the efficiency of reformation, it is 31% higher than the efficiency of a modern solar battery in the visible domain.
• The photocurrent of Geteroelectrical photoelement (GEP) operates at a factor of 4x higher than the modern solar battery.
• The GEP provides a very high efficiency in the dark and during the cloudy periods of a day.
• It is practically on a factor of 4x higher than the modern solar battery in the visible range.
• In the infra-red domain, it is on a factor of 2x higher than the efficiency of the modern solar battery in the visible range.
• The mass of GEP semiconductor material needed to produce one Watt of energy is 1,000 times less than the mass needed in the existing solar photoelements.

The above information indicates that the manufacturing cost of the Geteroelectrical photoelement of the STAR BATTERY will be less than the manufacturing cost of the photoelement of a modern solar battery.

Many Companies Offering Hybrid Credits

Bank of America said it will reimburse $3000 to thousands of employees who buy a new hybrid vehicle, joining other companies offering similar deals.

The nation's No. 2 bank will make the rebates available to more than 21,000 employees who live within 90 miles of Boston, Charlotte, and Los Angeles. The bank's headquarters are in Charlotte.

The hybrid program expands our commitment to the environment and helps our associates to participate in making a difference while cutting down on their commuting costs.

The bank described the offer as a pilot program and said it will evaluate participation to assess how it could be rolled out to all employees.

The program is being offered to all full-time and part-time employees working at least 20 hours a week in the three metropolitan areas covered by the bank's pilot program.

Bank of America is not the only company offering incentives to employees buying hybrid vehicles.

Google and software developer Hyperion Solutions (California based) offer their employees $5000 if they buy a hybrid car with a gas mileage rating of at least 45 miles to the gallon.

And closely held Integrated Archive Systems, in Palo Alto, CA, offers a similar, but more lucrative rebate program to its workers, promising $10000 to those buying a hybrid.

Hybrid cars run on a gasoline engine and an electric motor, allowing for better fuel economy and lower emissions.

Many hybrid owners are also eligible for federal tax breaks, and some highways allow drivers to use high-occupancy vehicle lanes without carrying a passenger if they are driving a hybrid.

Oil Falls Below $70 On Death of al Qaeda's Zarqawi

Oil fell below $70 for the first time in 2 weeks on Thursday after the death of al Qaeda'a leader in Iraq, where crude exports have been curbed by frequent sabotage attacks and instability.

The plunge deepened losses from a day ago, when data showed rising crude and fuel inventories, easing concerns about summer supplies in the world's biggest consumer.

U.S. crude oil fell $1.21 to $69.71 a barrel after losing $1.68 or 2 percent on Wednesday.

Iraq's Prime Minister Nuri al-Maliki told a televised news conference on Thursday that Zarqawi had been "terminated."

Oil exports from Iraq have failed to return to pre-war levels due to frequent sabotage attacks on the country's northern pipeline and deteriorating security that has prevented significant investment in aging southern oilfields.

Those curbs - coupled with the ongoing loss of a quarter of Nigeria's output and growing anxiety over Iran's supplies - have helped fuel a near 15 %rise in oil prices since the start of the year, extending a rally that began after the U.S. invasion of Iraq more than three years ago.

Iraqi Deputy Prime Minister Barham Salih said separately on Thursday that Iraq would produce 4.3 million barrels per day of crude oil by 2010, more than double its current levels, but analysts say those targets may be optimistic.

Nissan Stops Sales of Some Cars With Excessive Oil Consumption

Nissan said on Friday it had asked its dealers to stop selling certain 2006 model-year Altimas and Nissan Sentra SE-Rs cars due to reports of excessive oil consumption that could damage the engine or cause a fire.

About 100,000 Altimas and Sentra SE-Rs built between January and May 2006 may have the problem.

There have been about 215 reports of excessive oil consumption, mostly from rental-car fleets, and 17 reports of engine fires, resulting in one minor injury.

Nissan had extended the engine portion of the vehicles' warranty on Altimas and Sentra SE-Rs built during January to May 2006 to 84 months or 100,000 miles.