An item of interest today was revelations by top steel executives that corporate energy costs for production were in some cases 40% higher than last year, primarily electricity, whose price is tied to that of NG. With North America's NG production in decline and prices rising in response, energy costs for big steel will continue to escalate rapidly. These rising costs will further big steel's market share losses from price competition and the continual weakening of the dollar. Big steel is one of the few parts of the industrial base that haven't been completely outsourced offshore and represents a vital cog in what remains of the domestic manufacturing sector. The costs that will be passed along will have a telling ripple effect and further push the inflationary spiral caused by rising energy prices and interest rates.

More news of the Big Melt is in regarding the thawing permafrost in Siberia and Alaska whose methane emissions will provide an ample positive feedback to global warming, possibly rapidly. This is certainly not good. Sea level rise is already a bit over an inch/yr in the higher latitudes, which bodes ill for the Antarctic ice shelves and glaciers. It will be interesting to watch how its upcoming summer unfolds.

Gas price is 2.73 at Boston's, but more in SF according to the Chronicle.