Signs of the Times - April 2012 - (Page 14)

TECHNOLOGY UPDATE By Darek Johnson Darek Johnson is ST’s Senior Technology Editor/Analyst. Email him at darek.johnson@stmediagroup.com Ahmadinejad, Chavez, Keystone XL and Sign Costs Distant events affect your fuel and plastics costs – it could get worse. Asaa$10 decline in the price of a rule of thumb, economists say barrel of oil increases economic growth 0.2 to 0.3%, thereby helping many businesses dependent on oil – like airlines and makers of plastics and fertilizers – a March 1, New York Times article said. Does the Times formula work in reverse? Does a $10 per barrel increase create a 0.2 to 0.3% decrease in economic growth that, consequently, hurts businesses dependent on oil – like airlines and makers of plastics and fertilizers? Here’s a market update on plastic prices: January 1-- News release: “In addition to the previous $0.06/lb. price increase, ExxonMobil Chemical Co. is announcing the following polyethylene price increases effective with all shipments on or after March 1, 2012.” January 1 - News release: “[Dow] will increase the selling price of all polyethylene resins in the United States by US$0.07/lb. This increase is in addition to all previously announced price increases.” March 1 – News release: “Effective March 1, 2012, Chevron Phillips Chemical Co. LP will increase the price of all polyethylene products by seven ($ 0.07) cents per pound. This increase is in addition to all previously announced price increases.” The nuclear pricing factor Today, plastic and fuel prices revolve around Mahmoud Ahmadinejad, the current President of the Islamic Republic of Iran, and oil, because most plastic is oil based, and Ahmadinejad’s aggressive actions have affected world oil prices. Ongoing is the question whether concerned nations should negotiate with Ahmadinejad or wage war on Courtesy: Energy Information Administration This oil and gas line network shows existing U.S. routes. The present Keystone line intersects facilities in Canada, Nebraska, Illinois and Oklahoma. The new, southern – Cushing, OK to Nederland, TX – portion will also carry oil from Montana, North Dakota, Oklahoma and Texas. From Nederland’s marine terminal, the oil travels via existing pipelines to Port Arthur, TX refineries. The Valero Port Arthur Refinery specializes in handling heavy and sour crude. 14 SIGNS OF THE TIMES / APRIL 2012 / www.signweb.com Iran’s nuclear development sites and, by one choice, hopefully stop the possible propagation of nuclear weapons – or war – in the Middle East. However, you may have underestimated the importance of Ahmadinejad’s threat, should aggression occur, to close the Strait of Hormuz, that narrow sea passage and major oil shipping route which lies between Iran’s port city of Bandare-Abbas and Oman’s Musandam peninsula. Ahmadinejad’s choice is critical, because it could soon affect our lives and businesses by causing a new, Mideast war, which, of course, would disrupt world oil supplies and cause outrageous price increases. Nearly 68% of the world’s known oil and natural gas reserves reside in the Persian Gulf region, above the Strait of Hormuz, and, daily, approximately 25% of the world’s oil supply flows through this channel. The Strait – sometimes called “The Arabian Gauntlet” – marks the Gulf of Oman’s northern border, which separates the Persian Gulf from the Arabian Sea. Essentially, it‘s the world’s most important oil chokepoint and, interestingly, it’s a principal smuggling crossing for goods moving between Iran, Oman, Yemen, Somaliland and beyond. America’s military believes Iran, if attacked, would mine the strait, but that the U.S. Navy could clear the 34-mile-wide (at its narrowest span) channel in a short time. Conversely, the shallow-water strait offers only one, two-mile-wide, deep channel for inbound and outbound tanker traffic. Sinking a few ships in such a passage could cause serious navigation problems. Also, Iran’s Bandar-e-Abbas international airport (that can handle military aircraft) lies alongside the strait. http://www.signweb.com

Table of Contents for the Digital Edition of Signs of the Times - April 2012

Signs of the Times - April 2012
Contents
ST Update
Technology Update
Vinyl Apps
Strictly Electric
LED Update
Technology Review
Software Update
Sign Museum News
New Products
Times Square Update
That Sign is Fine (Art?)
Victory at Yorktown
Temporary, with Permanent Appeal
The Value of Signs
Anatomy of an M&A Failure
Industry News
Advertising Index
Editorially Speaking

Signs of the Times - April 2012