Exxon-Mobil posts record profit again, despite slipping oil prices

Economy a shambles? World in a recession? Even oil prices dropping like a stone?

Didn't matter. ExxonMobil, the world’s largest publicly traded oil company, still managed to set a record as the most profitable American corporation ever last year, the New York Times reports. The total for 2008: $45.2 billion, up from $40.6 billion the previous year.

"The profit for the full year came even as Exxon said Friday that its fourth-quarter income fell 33 percent as oil prices declined," the Times reported.

Here's the company's own announcement: Download ExxonMobilRecordProfits.pdf

[Associated Press photo]

Craig Pittman, Times Staff Writer

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Melting Arctic needs troops to police oil drilling scramble, says NATO chief

The head of NATO is calling for a military presence in the Arctic as global warming melts frozen sea routes and major powers scramble for previously untapped energy reserves, according to the Associated Press.

"The opening up of Arctic sea routes once navigable only by icebreakers threatens to complicate delicate relations between countries with competing claims to Arctic territory — particularly as exploration for oil and natural gas becomes possible in once inaccessible areas," the AP noted.

CNN cites a U.S. Geological Survey estimate that 90 billion barrels of oil, 44 billion barrels of natural gas liquids and 1,670 trillion cubic feet of natural gas are recoverable north of the Arctic Circle -- at a time when the icy region is warming so quickly that it could be ice-free by 2013.

"I would be the last one to expect military conflict — but there will be a military presence," NATO Secretary-General Jaap de Hoop Scheffer told reporters at a conference in Iceland today. "It should be a military presence that is not overdone, and there is a need for political cooperation and economic cooperation."

--Craig Pittman

OPEC prepared to make further cuts to oil production

The Organization of Petroleum Exporting Countries (OPEC) is reportedly ready to make more petroleum production cuts if prices don't rise soon.
OPEC secretary-general Abdalla Salem El-Badri told the World Economic Forum in Davos Thursday "OPEC will not hesitate to take some quantity out of the market," if prices don't move upwards.
Late last year OPEC members agreed to a 4.2 million barrel production cut, but the economic meltdown continues to shrink demand faster that supply. Venezuelan President Hugo Chavez said OPEC could reduce production by up to 4 million bpd in addition to the 4.2 million bpd it cut since September.
Oil prices have even out lately in the $35-$45 range, but oil producers would like to see it move up to $50-60 to maintain investment in future production.

- David Adams, Times staff writer

House economic stimulus bill gets high marks from Florida environmentalists

Florida environmental groups are excited about the likely passage this evening of the US House of Representatives economic recovery package, with at least $77 billion funding for clean energy and green transportation projects.
"With this economic recovery package, Congress can take the first step today down the road to a new clean energy economy for America," said Environment Florida Advocate Adam Rivera. "This bill will deliver more secure energy in the long term; less global warming pollution; fewer asthma attacks from air pollution; more clean lakes and rivers for drinking water, swimming and fishing, and more good jobs right here at home."
The 'American Recovery and Reinvestment Act' includes at least $37.9 billion for energy efficiency, $27.8 billion for renewable energy and $14.6 billion for public transit and clean transportation, the group says.
Overall, president Obama is getting high marks for his early efforts to tackle energy efficiency and the so-called greenhouse gas emissions which scientists say cause global warming. "I couldn't have scripted this guy better myself," said Susan Glickman, southern regional director for The Climate Group. "He's astounding."

- David Adams, Times staff writer

Al Gore to Congress: Fix the economy & global warming too

Former Vice President Al Gore went back to Capitol Hill today to tell lawmakers that they should pass the Obama Administration's economic stimulus package as a first step in curbing global warming.

Gore told the Senate Foreign Relations Committee that the stimulus money would provide “unprecedented and critical investments” in energy efficiency, renewable energy, an improved electricity grid and cleaner cars, according to the New York Times.

Then the Oscar- and Nobel-winning activist pressed for "decisive action" on a bill to cap heat-trapping gases, saying that it is needed for the U.S. to take a leading role in negotiations on a new international climate treaty later this year, the Associated Press reports. Here's his testimony:

--Craig Pittman

Biomass project under scrutiny by grand jury

The company building the controversial Biomass Gasification & Electric Co. energy plant in Tallahassee pulled the plug last week -- and now a grand jury is going to investigate the whole project, according to today's Tallahassee Democrat.

The NAACP complained about the plant's proposed location on the south side of town and its environmental impact on the city's poorer residents, the Democrat reported.

The grand jury is also likely to look into the involvement of former state Department of Environmental Protection Secretary Virginia "Ginger" Wetherell, who owns an interest in the company, and her husband, Florida State University President T.K. Wetherell, the paper noted.

The plant would have been built on FSU land. Wetherell told the paper he would be happy to share information with prosecutors.

"There's nothing there, but anyone who wants to look at it, they're more than welcome," he said.

--Craig Pittman

FPL Group reports record earnings

FPL Group, parent of Florida's largest utility, reported record quarterly earnings Tuesday morning.

Earnings on a GAAP basis reached $408-million, or $1.01 a share, for the fourth quarter of 2008, compared to $284-million, or 56 cents a share for the year-ago quarter.

"We're pleased to report that 2008 was our best year ever, which is something we doubt very many companies can say," said Lew Hay, FPL Group chairman and chief executive.

Unfortunately for Florida, the company's banner year had little to do with its Florida utility, which saw a decrease in both customers and retail electricity sales. FPL Group's success stemmed largely from its investment in NextEra Energy Resources, a merchant power  subsidiary, which saw its quarterly earnings more than tripled $265-million, or 66 cents a share. The company's new wind and nuclear assets drove its success. In 2008, NextEra added 1,800 megawatts of wind capacity in North America.

The downturn in Florida weighed on earnings of Florida Power & Light, the Juno Beach utility that serves about 4.5-million customers. The company's fourth quarter earnings dropped to $151-million, or 38 cents a share, from $173-million, or $1.96 a share, in the year-ago quarter. Customer accounts decreased by 8,000, or .2 percent, during the fourth quarter of 2008. For the full year, accounts are down .3 percent. Retail electric sales dropped 8.4 percent in the fourth quarter, and 2.4 percent for the year.

The Florida numbers portend poorly for Progress Energy Florida and Tampa Electric. Both Tampa Bay utilities have seen growth stall this year. The two companies will report fourth quarter results next week.

-Asjylyn Loder, Times staff writer

FPL Group could get new wind from Obama's stimulus.

Renewable energy may not make much power yet, but it is driving growth at one Florida utility, Forbes reports today.
Utility giant FPL Group, which owns Florida Power and Light, (Florida's biggest utility covering mostly southern and central Florida), will report its earnings today. They will likely be strong, in large part because of FPL's large investment in wind energy. FPL owns NextEra Energy, the country's largest operator of wind and solar farms. It had some major projects come online in the last quarter, helping boost earnings for the group.

Renewables will continue to drive FPL's earnings growth into 2009, Forbes says, especially if Congress earmarks some $54 billion for new renewables projects as part of a proposed $850 billion economic stimulus plan.
FPL has wind farms all over the country, but none in Florida. That's a shame as the state seeks to meet a target of 20% electricity from renewables by 2023. Florida currently generates only 3.6% of its power from renewables. As we have reported, FPL is undertaking a couple of small solar energy projects in Florida.

- David Adams, Times staff writer

Progress Energy union workers approve contract

Union workers for Progress Energy Florida agreed to a new, three-year contract Monday night after more than four months of negotiations, the St. Petersburg utility said Tuesday.

The union had rejected a contract proposal earlier this month. The International Brotherhood of Electrical Workers represents about 2,100 employees, including dispatchers, meter readers, linemen and power plant workers, Progress Energy said. The union agreed to a 3 percent raise, retroactive to early December, to be followed by 3 percent raises for the next two years.

“We are pleased that our bargaining unit employees have ratified the new contract,” said Jeff Lyash, Progress Energy Florida president and chief executive. “This new agreement will enable us to meet and exceed our customers’ expectations for reliability and service quality. The contract continues to provide an excellent wage and benefits program; one that is very competitive in the Southeast.”

-Asjylyn Loder, Times staff writer

Obama outlines energy policy in first White House press conference

President Obama has ordered a review of whether states can set car emission standards, potentially reversing a Bush administration decision that favored a national standard for vehicle pollution.

Obama made the announcement in his first White House press conference, which focused on outlining his administration's energy policy, including a call for U.S. energy independence. (watch press conference here)

The country would not be held "hostage to dwindling resources, hostile regimes, and a warming planet," he said. "We will commit ourselves to steady, focused, pragmatic pursuit of an America that is freed from our energy dependence, and empowered by a new energy economy that puts millions of our citizens to work."

The White House blog announced the presidential memos under the title: "From peril to progress."

Obama ordered the Environmental Protection Agency (EPA) to review its refusal of a waiver which had previously allowed California to set its own -- stricter -- vehicle emission and fuel efficiency standards. He also told the Department of Transportation to come uip wiht an improved federal fuel economy standard.

Obama said California had taken bold moves in implementing the standards. "The days of Washington dragging its heels are over," he said. "My administration will not deny facts. We will be guided by them."

The California law, which Florida Gov. Charlie Crist wants to copy, requires automakers to cut emissions by nearly a third by 2016, four years ahead of the federal timetable. Automakers had lobbied hard against the California standard.

David Adams, Times Staff Writer