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Jane Richey / July 5, 2012

Do Jobs Programs for Disabled Work?

According to the Government Accountability Office (GAO), “little is known” about whether nearly three dozen federal jobs programs for the disabled are actually helping people find work, including programs designed to help disabled veterans.

“Little is known about the effectiveness of the programs we identified as supporting employment for people with disabilities because only about one-quarter reported having a performance review,” the GAO said in its June 29 report on the programs, which is entitled Employment for People With Disabilities: Little Is Known About the Effectiveness of Fragmented and Overlapping Programs.

The GAO surveyed 45 federal programs for fiscal year 2010 that aim to provide some form of employment support for people with disabilities, discovering that few of the programs actually track their results. The programs were administered by nine federal agencies and even more congressional committees, reported the GAO, and for that fiscal year they were obligated to pay out $4.1 billion in services.

Read more.

Jane Richey / July 3, 2012

Navy’s Going Green!

The Navy is steaming ahead with an initiative to power ships with biofuel, despite criticism the so-called “green fuel” costs nearly seven times more than conventional fuel.

This month marks the first time the Navy is using biofuel in an operational setting — sending five ships to a multi-nation exercise off the coast of Hawaii.

A Navy official told FoxNews.com on Monday that sailing the so-called “Great Green Fleet” this month on the 50-50 blend of alternative and conventional fuel is part of Navy Secretary Ray Mabus’ plan to have half the Navy fleet on alternative fuel by 2020.

The spokesman also confirmed the fuel — which does not require engine modifications — costs $26 a gallon compared to $3.60 a gallon for conventional fuel.

However, he pointed out the cost was for a one-day supply and that prices will drop when the Pentagon, among the country’s biggest fuel users, buys more.

Capitol Hill Republicans have been among the biggest critics of the plan — questioning the fuel’s cost and President Obama’s alternative-energy initiatives as either not ready or too expensive for the marketplace.

They point to the government-funded Solyndra solar panel company going bankrupt as a cautionary tale.

Read more.

Jane Richey / June 2, 2012

Falling Gas Prices are Silver Lining

From the Oil City Derrick:

Gasoline prices are silver lining as economy weakens

By SANDY SHORE
AP Business Writer
There’s some good news behind the discouraging headlines on the economy: Gas is getting cheaper. At least two states had stations selling gas for $2.99 on Friday and it could fall below $3 in more areas over the weekend.A plunge in oil prices has knocked more than 30 cents off the price of a gallon of gas in most parts of the U.S. since early April. The national average is now $3.61. Experts predict further declines in the next few weeks.If Americans spend less filling their tanks, they’ll have more money for discretionary purchases. The downside? Lower oil and gas prices are symptoms of weakening economic conditions in the U.S. and around the globe.

On Friday, oil plunged nearly 4 percent as a bleak report on U.S. job growth heightened worries about a slowing global economy and waning oil demand. The unemployment rate rose to 8.2 percent from 8.1 percent. Sobering economic news from China and Europe also contributed to the drop.

West Texas Intermediate, the benchmark for oil in the U.S, fell $3.30, or 3.7 percent, to $83.23 per barrel, the lowest price since early October. The drop adds to a 17 percent decline in May. Brent crude, which is used to price international oil, lost $3.44, or 3.4 percent, to $98.43 per barrel, its lowest price since January 2011.

U.S. drivers should feel some relief, even if they’re worried about jobs. Auto club AAA says pump prices fell nearly 5 percent in May, the largest monthly percentage drop since November. Some station owners in South Carolina on Friday even presented drivers with a gift at the start of summer driving season: $2.99 gas.

Dan Durbin, president of R.L. Jordan Oil Co., says low wholesale prices allowed at least seven of the company’s Hot Spot stations in Spartanburg, S.C., to lower the price to $2.99 per gallon. South Carolina also has the lowest gas tax in the nation.

Durbin predicted that more of his stations and some competitors will lower prices once they sell off higher-priced supplies currently in their tanks.

Gas also fell below $3 in Harrisonburg, Va. It could hit $2.99 or lower in Georgia, Missouri and Oklahoma perhaps as soon as this weekend, according to Tom Kloza, chief oil analyst at Oil Price Information Service.

Gas hasn’t been below $3 per gallon anywhere in at least two months.

Analyst Patrick DeHaan of the website GasBuddy.com expects prices to fall below $3 a gallon soon in Tennessee, Alabama, Mississippi, which benefit from proximity to refining hubs.

Kloza predicts that motorists will pay an average of about $3.50 per gallon or lower by Father’s Day. And drivers on the West Coast should see even bigger declines than other parts of the country. Their prices had been rising because of a gas shortage.

Gas prices should stabilize in July and August, Kloza says.

It’s still questionable how much lower gas prices will boost consumer confidence.

Phil Flynn, an analyst for The Price Futures Group, believes falling gas prices could give consumers a psychological boost. But that could evaporate if hiring doesn’t pick up and stock markets keep swooning.

“If you don’t have a job, it doesn’t matter if gasoline prices are $5 or $2 a gallon,” he said.

Those who can afford a new car payment will appreciate falling gas prices. Automakers reported selling 1.3 million cars and trucks in May. Auto sales remain a bright spot in the U.S. economy. Still, those sales won’t reverse a decline in gas demand in the U.S. because the new models are more fuel efficient than older ones heading to the scrap heap.

Energy futures fell across the board, as did global stock markets. Heating oil fell 7.53 cents to $2.628 per gallon, gasoline futures fell 6.59 cents to $2.657 per gallon and natural gas dropped 9.6 cents to $2.326 per 1,000 cubic feet. U.S. stock markets dropped more than 2 percent and are now lower for the year.

 

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