Real estate
New EPA rules will add to the cost of most commercial properties. Buyers will have to conduct significantly more rigorous studies of property they’re purchasing to avoid being held liable down the road for any hazardous waste on the site. The rules take effect by mid-2005.
Meeting the tougher regs may run 20% to 30% more on average than the $1,000 to $3,500 buyers shell out now for less-stringent reviews.
But the new standards promise to greatly reduce a buyer’s risk of getting stuck with paying for cleanups under federal or state laws.

Energy
A “perfect storm” is whipping up oil prices. Very low supplies, production concerns in Russia, Nigeria, and Iraq plus the threat of more hurricanes in the Gulf of Mexico will keep oil markets on edge.
Oil will hover around $50 a barrel for a couple of weeks until hurricanes die down and offshore production returns to normal.
Tapping the Strategic Petroleum Reserve won’t reverse prices. Bush’s move to open up the spigots a bit will help Gulf Coast refiners, but we don’t see it offsetting larger trends that underpin oil prices.
Costlier oil will have only a small impact on gasoline prices, largely because vacation season is over, dampening demand for motor fuel.

Reusing waste
Recycling appears to be making a comeback in many communities. New York City just signed a 20-year contract to deliver glass, metal, and plastic to scrap metal giant Hugo Neu Corp. The agreement has other municipalities taking another look at their own waste policies.
The reason: Higher prices for paper, plastic, and scrap metal, thanks to surging demand for them from China, India, and elsewhere. With prices likely to stay strong, cities can depend on sustained demand, making it easier for them to invest in equipment to handle recycling.
Stronger oil prices also help. Manufacturers of glass, aluminum, steel, and paper reap big energy savings by using reprocessed materials. That also increases demand and the prices communities can get for waste.

© 2004 The Kiplinger Washington Editors, Inc.