News You Can Use for Tuesday

Waiting for Gustav

Hurricane Gustav grew stronger as it moved on a path projected to take it over Haiti on Tuesday and just south of Cuba on Wednesday, according to the National Hurricane Center.
Forecasters say they believe Gustav will strengthen into a "major hurricane" and move into the central Gulf of Mexico by Sunday, but there is little certainty about where it might go from there.

CRUDE OIL

Oil Companies Win $1 Billion Reimbursement Over Drilling Leases
Devon Energy Corp. and Anadarko Petroleum Corp. were among a dozen oil companies that should be reimbursed more than $1 billion they paid the U.S. for leases to drill off the California coast, an appeals court ruled today.

XX Sean’s note – Anadarko was recommended in my Running on Fumes energy report and Devon was recommended in my Energy Panic of 2008 report. So, if you have those reports, this is a heads-up. Also, a heads-up on Petrobras.

OPEC likely to keep output steady in Sept.
OPEC is likely to keep oil output policy unchanged at its meeting in September as prices remain high despite a sharp fall from July's peak, an OPEC source said on Monday.
U.S. demand fell 800,000 barrels per day (bpd) on the year in the first half of 2008, the steepest fall in 26 years. But in the long-term, fundamentals looked tight, the OPEC source said.

Foreign oil producers have U.S. over barrel
AGRICULTURE

The Grain Markets Are Getting Ready to Rip
Corn just flat isn’t going to make it. “It’ll run headlong into problems with frost. In addition, though, it’s dry not only in the eastern Corn Belt, but the entire Corn Belt. As a result, corn prices will continue to go up. The harvest lows are already over—and we haven’t even gotten to harvest yet!” Woolverton says.

XX Sean’s note: And yet …

Wheat Futures Decline on Dollar Gain, Production Outlook; Soybeans Tumble Wheat declined for a third day as the dollar strengthened, making U.S. grain less attractive to buyers overseas, and on speculation favorable weather in major producing countries will help increase harvests. Soybeans dropped.

WIND POWER

US becomes top producer of wind power
The U.S. wind industry now tops Germany in terms of how much energy is being produced from wind, the American Wind Energy Association (AWEA) said.

Germany still has more installed capacity -- 22,000 megawatts vs. 17,000 in the United States at the end of 2007. But the average wind speed is stronger in the United States, which means more energy is being generated, the group said. This year, Germany will add only about 1,600 megawatts of wind energy, while the United States will add more than 6,000 megawatts, said Randy Swisher, executive director of the association.

Wind, solar projects race to finish before tax credit expires
A congressional stand-off that has blocked extension of federal tax credits for renewable energy projects is setting off a boom in the wind and solar industries. Developers and customers are racing to install systems by year's end to qualify for the credits, which can cut the cost of a large commercial system by 30%.

US DOLLAR

Dollar's `Unprecedented' Gain Has Further to Go, Lehman Says The dollar's rally over the past month is ``close to unprecedented'' in the 35 years since the currency was decoupled from gold and will have room to rise on bets the European Central Bank will begin cutting borrowing costs, according to Lehman Brothers Holdings Inc.

URANIUM

Paladin Energy Says That It Is Set to Expand Uranium Production in Africa Paladin Energy Ltd., the Australian producer of uranium in Africa, said an expansion of its mine in Namibia is due for completion at the end of the year, while a project in Malawi will start operating in January.

MINING

Rio Tinto Earnings Double as Iron-Ore Miner Fights $142 Billion BHP Offer Rio Tinto Group, fighting a $142 billion hostile offer from BHP Billiton Ltd., posted first-half profit that beat analyst estimates on increased aluminum sales and record iron ore prices.

GOLD

U.S. Mint resumes gold coin orders on limited basis
The Mint said that it will equally divide its Eagles inventory available for sale each week into two equal pools, with the first allocated equally among all authorized dealers, and the second pool distributed according to the dealers' past sales performance

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