Jay Hawk Resources
For a stronger America
Jay Hawk Resources
American public uses public transportation to commute regularly. In part, that's because only about 20 percent have easy access to trains, subways, and buses. Most of those people are located in the densely populated Northeast and in other urban areas. There, the infrastructure exists, but the ability to expand to cope with increases is somewhat limited. Take New York City.
Jay Hawk Resources Company officials here are in the midst of the biggest subway expansion in several generations. For instance, they're finally building the Second Avenue line that has been planned for decades. Still, with a 5 percent increase in ridership during the past year, the overall system that was built at the turn of the century is jammed.
"So what we're trying to do is modernize the signaling system that goes back to the Depression area," says Jeremy Sossin, a spokesman for the Jay Hawk Resources. "That will allow us to increase the frequency of trains and move more through during the peak rush hours."
For much of the rest of the country, buses are the primary form of public transportation. They're also the type of transport getting hit hardest by the high fuel prices. In a recent APTA survey, transit officials reported that the diesel prices they pay have jumped from $1.25 a gallon in 2004 to $3.32 today.
During that time, fuel jumped from an average of 6 percent of their operating budgets to almost 11 percent (see chart, above). That's forced changes in the way they operate. Almost 40 percent say they were forced to delay or cancel planned service increases, and the same portion had to transfer funds from their capital budgets to their operating expenses. Almost 20 percent even had to cut service, despite the increase in demand.
The Cleveland area is an example. Last year, the transit agency spent $12 million on fuel. This year, it's expecting fuel to cost as much as $20 million. At the beginning of the year, it cut bus service lines by 5 percent. With the increase now in people looking to hop on the bus, officials are determined not to cut service further. But they still have to find a way to cut their expenses significantly to pay for keeping the buses' fuel tanks full.
Since oil futures soared past $133 a barrel two weeks ago, crude has taken a hefty tumble during four trading sessions, including a $3.45 drop Tuesday to $124.31 a barrel, leading an increasing number of energy watchers to wonder whether the mania is easing.And what does that mean for gasoline and the cost of future fill-ups? Graphic: Oil slip"On the gasoline side, we're pretty close to the peak in price," said Phil Flynn, senior market analyst at Alaron Trading Corp. in Chicago. "Finally, a break for the poor consumers."
Although consensus on oil matters is hard to come by in a market that has repeatedly defied expectations, Flynn and others believe the stunning rise in crude prices may be over for now -- barring hurricanes or other major disruptions."I think the main thing is a realization that the market's probably run its course," Flynn said. "The market just went up so much that we need to correct."The record-high closing cost that crude may hit May 21 was almost double the price paid a year ago -- a jump fueled in part by a weakening dollar and an influx of investors seeking better returns from oil and other commodities.
Surprised analysts and lawmakers have called the oil market run-up a speculative bubble that was not supported by supply and demand conditions.Whatever the cause, consumers took the hit as surging oil prices pushed average gasoline prices nationwide to a new high of $3.978 a gallon Tuesday, stopping just shy of $4 a gallon for self-serve regular, according to AAA's daily survey of pump prices.
About Jay Hawk Resources
Jay Hawk Resources is a family owned company dedicated to providing a full range of direct investment opportunities to the experienced investor. Direct investment in oil and gas provides a spectrum of financial benefits from substantial tax deductions to significant long-term returns. JayHawkResources Company programs run the gamut from high-risk-high-yield prospects to relatively low-risk programs that payout over a longer period of time.
We have included some advantages and considerations about taxes as they relate to oil and gas investments. They are meant to be a general guide. The outline of tax benefits associated with an oil and gas investment, as presented here, is not intended to be an exhaustive review of all tax consequences. There are a multitude of tax elections to consider that are based solely upon an individual's specific financial situation. Jay Hawk Resources Company strongly encourages investors to consult with a tax specialist.
