Where are you going?
For the first time since 9/11, Americans are sticking closer to home for Memorial Day. With the average cost for a gallon of gasoline at $3.83, up 20% over this time last year, who can blame them? Interestingly, those companies that refine oil, turning it into gas for your car, aren’t making quite as much money despite the record-high prices. Why? Because the cost of oil—hitting a record $135 per barrel—is pushing up their raw materials costs and cutting into profit. But those that find the oil and harvest it are rolling in cash. Congress grilled them about it this week, in fact. If you’re flying, good luck. Thanks to high oil prices, American Airlines announced this week they’re cutting flights, the number of planes, oh, and charging $15 for the first checked bag. At least United is only charging for the second ($25)! Can we say bike, anyone?
Oil and polar bears
Speaking of oil, one week after polar bears were placed on the endangered species list, Alaska announced plans to challenge the ruling. State Gov., Sarah Palin, and other elected officials believe the listing may impede oil exploration and drilling in areas where the bears live along the Alaskan coast. The challenge came anyway, despite an added provision in the act that offers oil and gas industries flexibility in the management of a threatened species. Polar bear numbers are currently considered healthy, but scientific evidence indicates that retreating sea ice, a vital element to polar bear's survival, will continue to rapidly decrease. Some studies indicate that the loss of the mammal's hunting grounds will contribute to extinction by 2050. See an interactive graph of retreating sea ice over the past four years.
As we head into the long holiday weekend that marks the beginning of summer, there is some hopeful news coming out of the Middle East (for once!). On Wednesday, the Israelis confirmed they have entered into indirect peace talks with neighbor and long-time enemy Syria. There is plenty of bad blood; they have fought each other in three wars and have not had real peace talks since 2000.
Syria is seeking the return of the Golan Heights, which Israel captured in their 1967 war, while Israel wants Syria to end its support for militant groups such as Hezbollah, and also to drag Syria away from its ties to Iran, whose leader has called for the destruction of Israel. A peace treaty would elevate Syria’s standing in the Western world, while providing Israel with much-needed regional security. The negotiations won’t be quick or easy, and the outcome is far from certain. The Israeli prime minister, dogged by a corruption scandal, is on shaky ground politically, while the U.S. is said to be cool to the talks, seeking to keep Syria isolated. Keep your eye on this one …
Have a great weekend!