Why natural gas is cheap and gasoline isn't

The price of gas has risen rapidly this year. The price of gas has fallen to the lowest level in a decade. Both of those statements are true. The first refers to gasoline, the second to natural gas.

Never in the two decades that natural gas and oil futures have traded have their prices diverged as much as they have now. On an energy equivalent basis, oil costs more than eight times as much as natural gas.

This week, the price of 1 million Btu of natural gas fell below $2.20 for the first time since 2002, while oil prices slipped a little but remained above $100 a barrel. The last time natural gas was this inexpensive, oil cost about $20 a barrel.

The diverging prices reflect the fact that while oil and natural gas can substitute for each other in some uses, the markets for the two products are very different.

Crude oil is a relatively efficient international market, in which the product moves around the globe in tankers that can be diverted from one destination to another almost instantaneously in response to shifts in demand. A sharp change in demand or supply in any region of the globe is likely to show up in prices everywhere.

Oil prices can also be affected by geopolitical concerns well before actual events take place. These days, it appears that oil prices have been pushed up by worries that Israel might attack Iran, leading to a drastic reduction in Iranian oil exports.

The natural gas market, on the other hand, is not a global one. There is a limited trade in liquefied natural gas, which can be transported in tankers, but mostly natural gas must move in pipelines over land. Natural gas prices have been rising in Britain this year even as they have been falling in the United States.

Supply has soared in the United States because of increased production from hydraulic fracturing, but demand cannot change rapidly. Power plants that can burn natural gas or oil were shifted to gas long ago. Add in a relatively mild winter in the United States, which reduced demand, and there appears to have been a glut.

There are efforts being made to use more natural gas. Some fleet vehicles, like buses, already use natural gas, but that market is limited to vehicles that can return to their headquarters for refilling. Chrysler has announced a pickup truck that will run on both gasoline and natural gas, but plans to offer it only to such fleets.

Alaska is also seeking a pipeline that would take natural gas from the North Slope to an Alaskan port, where it could be liquefied and shipped to Asia. The state announced an agreement with Exxon Mobil, BP andConocoPhillips relating to that project Friday, but many details remain to be worked out.

When the United States entered recession, at the end of 2007, reduced economic activity led to reductions in the prices of both products. But the trends began to diverge in 2009. Now, gasoline costs about 30 percent more than it did in 2007, while natural gas costs around 70 percent less.

For what it is worth, which may not be very much, futures traders think that the gap in prices will diminish but remain large. A year from now, oil prices are expected to be almost exactly where they are now, while natural gas prices are forecast to have risen more than 50 percent. If that happens, on an energy equivalent basis, crude oil will still be more than five times as expensive as natural gas.

Source - http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/why-natural-gas-is-cheap-and-gasoline-isnt/articleshow/12478673.cms

Unitech moves court to stop Telenor from forming JV

NEW DELHI: Real estate developer Unitech Ltd has moved court to restrict Norway's Telenor from creating a new telecom joint venture in India. Unitech has also sought to prevent Telenor from transferring assets of their existing joint venture, Uninor, to the new entity, the company said in a statement issued on Wednesday.

The Indian company's petition, filed in the Gurgaon district court under the Arbitration and Conciliation Act, invokes a non-compete clause in the shareholder agreement to restrain Telenor from directly competing with Uninor.

"We confirm that Unitech Ltd has moved an arbitration application under Section 9 in court restraining Telenor from participating in any manner or being financially interested in any other project that competes with the business of Uninor," Unitech's statement said, adding, "Unitech has further sought injunction against the transfer of business (of Uninor) by Telenor to a new entity. This is a step taken to protect Unitech's investment in telecom business."

The court is yet to set a date for hearing the matter.

The two firms got into a dispute after the Supreme Court cancelled 122 mobile permits in the 2G spectrum case. Following the verdict, Telenor sought compensation from the Indian firm for damages caused to its mobile venture and said it would look for a new partner in India. It plans to migrate its existing business, including customers and staff, to this entity.

Telenor, which holds 67.25% in Uninor, said it was willing to meet its estranged partner in court and would continue to pursue its plans to secure its investments.

"We have stated earlier that we intend to establish a new entity with which we will approach the auctions and secure the long-term future of Uninor's employees, customers and partners. We remain committed to this plan," Telenor's spokesman said in an emailed response. "We have been made aware of yet another attempt by Unitech to stall this process and we will meet them in court, as we have done successfully earlier," the spokesman added.

In 2009, Telenor bought stake in Unitech's venture, Unitech Wireless, for 6,100 crore and subsequently invested another 8,000 crore in the business. Unitech Wireless was renamed Uninor, which has more than 40 million users at present.

Unitech's petition comes even as both companies are engaged in a legal battle at the Company Law Board(CLB). Unitech moved CLB a fortnight ago seeking approval to settle the ownership dispute through arbitration after Telenor reportedly rejected Unitech's demand that it be paid about $150 million to exit the JV and sell its 32.7% stake in Unitech Wireless to the Norwegian company. The Board, which reserved its judgement on the case on Friday, is likely to announce its verdict next week.

Earlier this week, Telenor invoked the bilateral pact - India-Singapore Comprehensive Economic Cooperation Agreement - to protect its investments here and sought 'compensation for all investments, guarantees and damages' if the Indian government failed to sort out cancellation issues within six months. Telenor and Unitech have also been involved in a legal battle over the funding of their joint venture, which culminated in arbitration in Singapore.

Source - http://economictimes.indiatimes.com/news/news-by-industry/telecom/unitech-moves-court-to-stop-telenor-from-forming-jv/articleshow/12475614.cms

2G Scam: Essar & Loop promoters appear before court, move bail pleas

NEW DELHI: Promoters of Essar Group and Loop Telecom, named as accused in a case flowing out of the 2G scam, today appeared before a Delhi court.

Essar group promoters Ravi and Anshuman Ruia andLoop Telecom promoters I P Khaitan and Kiran Khaitan moved their bail pleas after they appeared before Special CBI Judge O P Saini.

The court listed the matter for arguments on bail pleas for April 21 after the CBI said that they needed time to file reply on the bail applications.

"Put up for reply and arguments, if any, on April 21," the judge said.

Ruias and Khaitans were summoned by the court on December 22, last year after being charge sheeted in the case by CBI.

After failing to appear in person thrice, they were on previous hearing directed by the court to appear in person before it with a warning that they would suffer if they do not do so.

Source - http://economictimes.indiatimes.com/news/news-by-industry/telecom/2g-scam-essar-loop-promoters-appear-before-court-move-bail-pleas/articleshow/12478610.cms

Tamilnad Mercantile Bank ranked best among old private sector banks

MADURAI: Tamilnad Mercantile Bank (TMB) has been ranked as the best among old private sector banks. 

A press release from S Selvan Rajadurai, General Manager, Business Development, TMB Head Office (Tuticorin) said Ernst and Young was the knowledge partner to Financial Express in the survey to select India's best banks in 2011. 

Ranks were individually given for each category of banks such as nationalised ones, old private sector banks, new private sector banks and foreign banks, he said. 

Parameters of profitability, efficiency, credit quality, strength, and growth were taken into account for the Selection,says a release here today.




http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/tamilnad-mercantile-bank-ranked-best-among-old-private-sector-banks/articleshow/12466632.cms

Goa cap on iron ore extraction a must for sustainable mining: Official

PANAJI: Capping of iron ore extraction in Goa is a must for sustainable mining and reigning in illegal mining, an official said Friday.

Goa Chamber of Commerce and Industry chairman Manguirish Pai Raikar told reporters here that the apex trade association would back the Goa government, if it tried to cap iron ore extraction from Goa's 100 odd open cast iron ore mines.

"We are fully backing capping of core extraction. It is necessary if mining is to be made a sustainable business," Raikar said.

Raikar further said that for more than 50 years, even before the liberation of Goa in 1961, and that according to estimates the state had ore reserves that could last for the next thirty years approximately.

"The Chamber is going to fully back any move by the government to cap ore extraction. We need mining to last for the period. The mad rush to extract ore by any means has to stop," Raikar said.

Illegal extraction and export of iron ore has been one of the most contentious issues in Goa for the last few years.

The previous Congress-led coalition government had been accused of sheltering a mega illegal mining mafia, which the chief opposition at the time, the Bharatiya Janata Party (BJP) had said was responsible for a Rs.25,000 crore illegal mining scam.

During his inspection of mining records, the Justice M. B. Shah commission which had been appointed to probe illegal mining in Goa and the rest of the country had said that most of the mines in the state had overshot the extraction limits, prescribed at the time of granting environmental clearances.

Chief minister Manohar Parrikar has already assured a "zero tolerance" policy vis-a-vis illegal mining and would follow the dictum of sustainable mining.

"We cannot allow extraction of 55 million tons like it has happened earlier. Something like 30 to 35 million tons can be alright," Parrikar said, adding that a consensus could be worked out for defining sustainable mining limits.

Goa exported over 55 million tons of iron extracted from over 100 odd operational mining leases, as well as illegal sources across the state.


http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals-mining/goa-cap-on-iron-ore-extraction-a-must-for-sustainable-mining-official/articleshow/12466661.cms

All three armed forces chiefs enjoy government's confidence: A K Antony

NEW DELHI: Defence Minister A.K. Antony said on Thursday the chiefs of the three armed forces "enjoyed the confidence" of the government and that there was no embarrassment for him over the recent controversies relating to army chief General V.K. Singh. 

"All the three defence chief enjoy the government's confidence. All the three defence chiefs are working today," Antony said at a press conference at the venue of the DefExpo defence exposition here. 

He was asked if army chief Gen. V.K. Singh still enjoyed the trust of the government considering that there were a series of controversies relating to him that had caused much embarrassment. 

"I am comfortable, and I am not in an embarrassing situation," he said, when asked if the army chief's recent actions had impinged on his authority. 

Antony said that he will not talk of his "personal feelings" on the rows, beginning with date of birth of Gen. Singh to leakage of his letter or him forwarding a letter from a Trinamool Congress MP alleging corruption in defence deals under Dimapur-based 3 corps commander Lt. Gen. Dalbir Singh Suhag to the Central Bureau of Investigation (CBI). 


Source  -  http://economictimes.indiatimes.com/news/politics/nation/all-three-armed-forces-chiefs-enjoy-governments-confidence-a-k-antony/articleshow/12455416.cms

Apple's Siri program sued again for overselling ability in advertising, commercials

WASHINGTON: Siri, the voice-activated personal assistant program built into the Apple iPhone 4S, has been sued again for allegedly overselling its abilities in advertising and TV commercials.

The latest lawsuit was filed by David Jones in the Los Angeles District Court on March 27.

"Through its nationwide multimedia marketing campaign, Apple disseminates false and deceptive representations regarding the functionality of the Siri feature," the Los Angeles Times quoted a suit, as saying.

"For example, in many of Apple's television commercials, consumers are shown using Siri to make appointments, find restaurants, and even to learn the guitar chords to classic rock songs. In its advertisements, Apple depicts these tasks as easily accomplished "just by asking" Siri," the suit added.

Source  -  http://economictimes.indiatimes.com/tech/software/apples-siri-program-sued-again-for-overselling-ability-in-advertising-commercials/articleshow/12454966.cms

The suit also states that Jones has not found using Siri that easy.

"Apple's deceptive commercials diverge greatly from the actual functionality and operation of the Siri feature as experienced by Plaintiff and fellow consumers," the complaint states.

The lawsuit seeks financial "relief and damages" for not only Jones, who purchased an iPhone 4S in December 2011, but also for other iPhone 4S owners.

Apple officials were unavailable for comment on the issue.

Afridi roughs up fan at airport, claims daughter was pushed

It was a not a very happy homecoming for Shahid Afridi after Pakistan's Asia Cup triumph as he got into a scuffle with a fan at the airport, claiming that he reacted angrily only when his three-year-old daughter was pushed to the ground by eager admirers.
"I know what I did was wrong.

I should have controlled myself. But I couldn't take it when my daughter was pushed to the ground," Afridi told 'Dawn News'.
Afridi, who was adjudged Man of the Match in the Asia Cup final against Bangladesh that Pakistan won by just two runs, insisted that he had lot of love and respect for his fans and always tried to be pleasant with them.

"But when my daughter who was waiting for me near my car got pushed by fans trying to get near me I lost my temper," he said.

Afridi's brother Mushtaq insisted that the man involved in the incident was not a fan.

"I wouldn't describe him as a fan Shahid can never think of hurting a fan," he said.

The popular allrounder was caught on camera attacking a fan by pushing and slapping him at the Karachi airport soon after his arrival from Dhaka after winning the Asia Cup title.

Minutes after he had spoken to the media waiting for him at the airport, where a large number of fans had gathered to welcome their heroes, Geo News and other channels flashed footage of a visibly angry Afridi attacking a fan dressed in a blue T-shirt and pushing him to the ground.

According to the channels, the fan, who was badly roughed up, had pestered Afridi for an autograph.

But another channel said the Pakistani all-rounder lost his temper as his little daughter who was with him was pushed around by the fans clamouring for an autograph from Afridi.

"Whatever the reason for him losing his temper but Afridi's actions cannot be justified at all," one channel said.

Afridi appeared very angry and upset and as he was getting into his car, he turned around and attacked the fan first pushing him to the ground and than trying to kick him before his brother Mushtaq got in the way and prevented the situation from getting out of hand.

Afridi was also seen scolding another fan and threatening to slap him before he got into the waiting car.

The incident which was repeatedly flashed by channels is likely to come as a shock to his countless fans who have always backed him in all situations.

"We don't know what happened but certainly Afridi should not have lost his temper in this way," a board official said.