From the AP
DEARBORN, Mich. - Ford Motor Co. lost $5.8 billion in the fourth quarter amid slumping sales and huge restructuring costs, pushing the fabled automaker's deficit for the year to $12.7 billion, the largest in its 103-year history.
The fourth-quarter loss was the worst final-quarter loss in Ford's history and its second-worst quarterly performance. Ford lost $6.7 billion in the first quarter of 1992, due mainly to accounting rule changes on health care liabilities.
It looks as if Bush's booming economy isn't so booming for the auto industry.
Somewhat along the same lines, The New York Times reports:
WASHINGTON, Jan. 23 — A federal jury in Denver agreed Tuesday with a former top auditor for the Interior Department that the Kerr-McGee Corporation had cheated the government out of millions of dollars in royalties on oil it produced in publicly owned coastal waters.
Under the False Claims Act, a law that was intended to encourage whistle-blowers, Kerr-McGee could be forced to pay more than $30 million — double or triple the original amount it owed, as well as penalties of up to $11,000 for each of 1,200 false statements that the company is accused of making in its royalty reports to the government. Article
Original Article
Bush Oil Reserve May Support Prices as Asia Also Buys
By Christian Schmollinger and Winnie Zhu
Bloomberg Wednesday 24 January 2007
George W. Bush's decision to double the emergency oil stockpile in the U.S. may help to stem a six- month slide in prices as China, India and South Korea also add to demand by bolstering their defenses against shortages.
Oil gained the most since September 2005 yesterday after the U.S. Energy Department said it will boost the Strategic Petroleum Reserve to 1.5 billion barrels over 20 years. China, where imports rose 15 percent last year, began to fill its reserve in October. India also plans to double its inventories.
The U.S. plan "helps puts a floor in the market," said Antoine Halff, head of energy research at Fimat USA Inc. in New York. "It creates competition for the same barrels. It tightens the market on top of the strategic reserve builds elsewhere such as China."
Oil consumers are increasing stockpiles on concern that political instability in the Middle East, terrorism and hurricanes may cause supply disruptions. Governments may buy during dips in prices, supplementing demand growth that's forecast to slow this year by the International Energy Agency.
The U.S. move "will also alert China to be more aggressive in building up their strategic petroleum reserve," Gordon Kwan, Hong Kong-based China oil and gas research director at CLSA Ltd., said in an e-mailed strategy update. "Oil prices will likely extend their rebound heading into the summer driving season. $50 oil appears to be a solid floor."
While more supply in the stockpile is a good thing, I have to wonder if Bush is doing this for the country or for the oil companies? He hasn't done much for the country so may bet is for the latter.
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