More people taking the train due to high gas prices; Amtrak likely to break record

(Photo of Amtrak coach cars from Flickr and photographer J.H. Gray)

News Update 3: Amtrak is on track to carry a record 28 million passengers this fiscal year, compared with 25.8 million last year. July service was up nearly 14% from last July. As high gas prices drive more people to trains, they have become overcrowded and are showing their age. Congress recently OK’d a 33% increase in Amtrak’s budget, starting in October, and will provide grants to states to expand rail service. (Source: Greenwire)

'Gang of 10' Senate proposal gets Obama backing

(Photo of offshore drilling from Flickr and photographer absolutwade/Beau Wade)

Washington Report 1: The Senate “Gang of 10” drew support from Barack Obama Friday for a bipartisan compromise energy package that would relax restrictions on some offshore drilling, while repealing some tax breaks on the oil industry and funding renewable energy and conservation. Obama had previously opposed more offshore drilling but said he favored some of the other provisions in the bill and compromise was needed to get anything passed. The proposal, led by Sen. Kent Conrad (D-N.D.) and Sen. Saxby Chambliss (R-Ga.) was the result of many meetings to craft a bill that would satisfy voters upset over high gas prices and reduce dependence of foreign oil. It will likely come to the floor after the August break. It would:
• Reduce the no-drilling area in the eastern Gulf of Mexico to 50 miles off the Florida coast from 150 miles offshore (both Florida senators strongly objected).
• Allow drilling offshore from four Southeastern states -- Virginia, Georgia, North and South Carolina -- if the states agree, and share some revenue with the states.
• Repeal tax breaks worth $30 billion for oil companies, which made record profits this quarter (see below).
• Extend renewable energy tax credits, due to expire this year, until 2012, to encourage development of wind, solar and other renewable sources.
• Give incentives to coal-to-liquid plants that can capture and store carbon.
• Fund R&D on advanced batteries and help automakers retool.
• Develop and demonstrate next-generation biofuels.
• Give tax credits for highly efficient cars and those that use non-petroleum fuels. Senate Majority Leader Harry Reid (D-Nev.) gave the proposal luke-warm praise as a starting point for some agreement on energy. The American Petroleum Institute opposed the repeal of some oil tax credits (calling it "tax increases), saying it would discourage domestic drilling. (Source: Greenwire)

Oil companies earn record quarterly profits

(Photo of pump prices in May from Flickr and and futureatlas.com)

Washington Report 2: While drivers were paying high prices at the gas pump over the past few months, oil companies were raking in profits. The major oil companies all announced record 2nd-quarter profits in the past week:
• Exxon Mobil: $11,680,000,000
• Shell: $11,600,000,000
• BP: $9,460,000,000
• Chevron: $5,980,000,000
• ConocoPhillips: $5,439,000,000
And that’s just for 3 months. All those zeros kind of take you aback, don’t they? (Source: Greenwire)

Two polls: High gas prices spark shift in opinions on more domestic oil exploration

(Photo of offshore drilling in Galveston from Flickr and photographer absolutwade/Beau Wade)
News Update 1: Two new polls are discouraging. They show growing numbers of voters favoring oil exploration in the U.S. and offshore. In Florida, specifically, a Rasmussen polls shows 59% of voters favoring offshore drilling. Breaking it out by party, 83% of Republicans, 38% of Dems and 54% of Independent are OK with offshore drilling in Florida, a substantial change since 2004. The same poll showed John McCain, who favors offshore drilling, leading Barack Obama, who doesn’t, 48-41. In a Pew Research national poll, 47% of the population wants to expand domestic drilling and open new power plants, compared with just 35% 5 months ago. There was a 10-point drop in those seeing conservation as the most important step on energy. Liberals’ favorables for oil exploration doubled from 22% to 45%. Half the people survey agreed with drilling in ANWR. The price at the pump trumps all. (Source: Greenwire)

High gas prices driving Americans to more fuel-efficient smaller cars, and to trains

(Photo of the cost of filling up a F-150 pickup, with graffiti, from Flickr and photographer ugas1/Christy C)

Weekly Angst: With the price of gasoline climbing ever higher, Americans are seeing green. Whether it’s all economics or in part concern about global warming, train ridership is up and sales of motor vehicles are shifting from trucks and SUVs to compact cars, all to the benefit of the environment. The trend is hard to miss. Here are some news items from the past two weeks:

Train ridership up; Amtrak funding bill faces Bush veto
Amtrak ticket sales rose 15.6% in May, over a year ago, and officials say ridership is up about 11% for the year. They attribute half the increase to high gas prices. Train advocates are asking more federal money to help trains compete with airplanes here. About 1% of passenger miles are by train in the U.S., while France, Britain and Germany see 6-8% and Japan 18%. Amtrak is slow and inefficient while France, Germany and Japan have high-speed trains on dedicated tracks with special signals, allowing them to go 150-185 mph. A House-approved Amtrak bill faces a veto from the White House because it doesn’t contain reforms. Dem presidential candidate Barack Obama said he’d fight for funding with reforms. GOP candidate John McCain has in the past voted against subsidies for Amtrak. (Sources: Reuters/New York Times)

Train industry asks incentives to expand nation’s rail system
The railroad industry defended recent profits before a Senate panel last week and asked for incentives to expand rail nationwide. Saying rail profits are lower than most industries, the Association of American Railroads pointed to the environmental benefits of trains, noting that they are 3 times more fuel-efficient than trucks. An industry ad campaign says freight trains can carry a ton of freight 436 miles on a gallon of diesel. (Source: E&E Daily)

GM to close 4 truck plants, re-evaluate its Hummer
General Motors announced it will close 4 North American plants that make pickup trucks and SUVs and will add a shift to 2 plants that make smaller cars. GM reaffirmed its commitment to its plug-in hybrid, the Chevy Volt, and said it would re-evaluate the Hummer.

Ford Motor Co. says it will cut back on trucks and SUVs too
Ford also is following demand and cutting production of trucks and sport utility vehicles and focusing more on smaller cars like the Focus and Edge. The F-150 pickup, which has long driven profits for the company, is in less demand. Further cuts may be required, officials said.

GM to help set up filling station for hydrogen fuel-cell cars
General Motors is partnering with Clean Energy Fuels Corp. on a hydrogen fuel-cell refueling station near Los Angeles International Airport, as the first step toward a network of such stations in California. For now, it will be used by test drivers for the fuel-cell Chevy Equinox, expected to be for sale by 2014 at the latest. Fuel-cell cars emit only water vapor. (Sources: Greenwire and Reuters/New York Times)

Toyota plugs its electric/gas plug-in hybrid, expected in 2010
Toyota said it will introduce a plug-in hybrid with a next-generation lithium-ion battery in Japan, the U.S. and Europe in 2010. Sales of smaller Toyota cars rose sharply last month, the company said, with the Corolla up 17%. Hybrid sales are flat – for the simple reason that they are in very short supply, due to a backlog in getting parts. Toyota plans to open plants for hybrids in Thailand and Australia, to sell cars to the developing world. (Sources: Greenwire, Bloomberg)

Industry leaders ask for federal help in jump-starting plug-ins
Top auto officials told a forum in Washington, D.C., this week that U.S. companies need government support for R&D to compete with Asia, which dominates in development of batteries for electric plug-ins. There’s also a need for consumer tax breaks to encourage early adopters to buy this type of car and break down resistance to something new. (Bills stalled in the Senate call for such consumer incentives.) With that help, plugs-in, which are technically feasible, can become a booming market, said GM President for North America Tom Clarke. In the same week, the Bush administration announced a $30 million R&D program for plug-ins. (Source: Greenwire)

Chicago considers switching all taxis to hybrid by 2014
Following the lead of New York City, key Chicago Ald. Ed Burke (14th ) and Transportation Committee Chair Tom Allen (38th) want all taxi cabs in the city to be hybrids by Jan. 1, 2014. Cabs are replaced every 4 years. The two said they want, starting next year, to mandate that all replacement cabs be either hybrid or run on alternative fuels, such as compressed natural gas, biodiesel or hydrogen. At this point there are 50 hybrid taxis on the street. I rode in one last week and the driver was please it cost him about a third as much for gas. (Chicago Sun-Times)

This is the kind of movement we need, away from gas guzzlers. Let’s hope it continues, even if high prices are a pain in the pocketbook. (Easy enough for me to say. I have a Prius.) Europe’s petrol prices are much higher than ours and they have long had smaller cars and better trains.

Gas tax holiday? It’s politics versus curbing global warming and guess who will win?

(Gas pump photo from Flickr and photographer Frank Shapiro)

Washington Report 1: High gasoline prices are good for the environment, right? People drive less and buy more fuel-efficient cars. Hybrid purchases were up 38% last year while overall new auto sales slumped 3%. So high gas prices do have some impact on curbing carbon omissions. Then why are so many of those who champion cutting greenhouse gases favoring a price cut, not a tax hike, on gasoline? Ask John McCain, GOP presumptive nominee for president, who has offered a bill creating a gas-tax holiday – removal of the 18.4% federal tax during the summer. And who’s co-sponsoring his idea? None other than Sen. Joe Lieberman (I-Conn.), who follows McCain around like a puppy, and his partner on the global warming bill in the Senate, Sen. John Warner (R-Va.). This is a case where short-term political gain clearly outweighs long-term planetary goals. Some of the key environment-championing Dems are getting in on the act too – like Senate Environment Chair Barbara Boxer (Caif.) and Rep. Ed Markey (Mass.), who also want to bring down gas prices. The Dem proposals are different, though. House Speaker Nancy Pelosi (D-Calif.) would like to resurrect legislation passed by the House but not the Senate, to penalize gasoline price-gouging and repeal oil subsidies. Some other Dem ideas floating around are temporarily stopping oil transfers to the Strategic Petroleum Reserves (Boxer and Markey), and blocking arms sales to OPEC countries until they increase the oil supply. These measures aim to calm the speculation frenzy in the oil market and thus reduce prices. Different approaches but with the same goal: to cut prices so Americans can be free to use more gas. When will we learn? (Source: E&E News PM)