Environmental News affecting Green Logistics
- 24 Jan 08, Oil price continues to hover around $100 per barrel, leaving no doubt that it will remain at these levels. Impact: Oil producing countries will have your money while your profit margin shrinks more and more.
- On 7 Jan 08, Investors Business Daily (page A18) reported that the growing demand of energy in China and India is driving high demand for energy equipment manufacturers. Customers in the electrical equipment group include utility companies, telecommunications, and tech companies. "Electricity demand is forecast to rise, necessitating more electrical equipment to transmit, distribute, and store electricity." Impact: BRICA (Brazil, Russia, India, China, Africa) will continue to outpace the developed world towards investing in electricity generation. The biggest consumer, the U.S., has not taken action to update old power grids. No incentive for large power companies to upgrade energy equipment will cause further energy problems.
- On 21 Dec 2007, Anadarko Petroleum Company reported a more environmentally friendly drilling capability for natural gas. In Utah, where Anadarko plans to drill, the company is planning to increase from 1,200 to 2,500. U.S. Energy Information Administration reported 31,587 natural gas wells were drilled for exploration and production in 2006 up from 16,728 from 2002. With soaring natural gas prices and continued annual increases in growth, natural gas demands in the populated northeastern U.S. will continue. Impact: Natural Gas pipelines from the Midwest to the northeast are limited and investment is too significant for new pipeline construction. A greater dependence upon rail transportation will ensue.
- Christmas 2007 will be remembered as the year Chinese made toys were tainted. China may be the toy shop of the world, but when it comes to buying Chinese made toys - even the affluent Chinese are skeptical. As Chinese become more affluent and educated, they are paying more attention to the quality of toys made in their own country. Foreign toys brought into China are considerably more expensive, but it appears Chinese middle class is willing to spend. Vermont wood toy makers have weathered the Christmas 2007 toy store very well and the appetite for quality toys made in America has swelled. Chinese Government propaganda initiatives to quell world-wide displeasure in quality will continue. The Beijing Olympics may even be impacted as the world watches the quality of services China will provide. Impact: Chinese products will continue to be under scrutiny and reverse logistics with mammoth toy recalls will continue into 2008.