President George W Bush has lifted an executive ban on drilling for oil in most US coastal waters, and has urged lawmakers to follow suit.

He wants Congress to end its separate ban on drilling, in order to reduce US dependence on oil imports.

"Now the ball is squarely in Congress' court," he said, adding that it was "time for action".

Mr Bush's move comes as high oil prices have pushed US petrol prices to more than $4 (£2) per gallon.

Mr Bush added: "The American people are watching the numbers climb higher and higher at the pump and they're waiting to see what the Congress will do."

His move will have no effect unless Congress acts as well.

On Friday oil prices - which have been rising steeply during 2008 - touched new highs, peaking above $147 a barrel.

Coastal concern

US energy needs are set to be a key issue in November's presidential election.

Republican John McCain is in favour of offshore oil drilling, whereas his Democratic rival, Barack Obama, opposes it.

Environmentalists have reacted with alarm to Mr Bush's call, saying offshore drilling would take at least a decade to have any effect on oil supply and would exacerbate climate change.

And congressional Democratic leaders oppose ending the drilling ban.

They point out that oil companies already have 68 million acres under government leases they can drill.

"This proposal is something you'd expect from an oil company CEO, not the president of the United States," said Senator Barbara Boxer, a Democrat and chairwoman of the Senate Environment Committee.

"The president is taking special-interest government to a new level and threatening our thriving coastal economy."

Since 1981, a congressional moratorium has prohibited oil and gas drilling along the east and west coasts and in the eastern Gulf of Mexico, an area accounting for some 80% of the US's outer continental shelf.

The executive drilling ban was issued in 1990 by the current president's father, President George H W Bush, and then extended by President Bill Clinton.

Since then offshore drilling and exploration have only been allowed in the western and central regions of the Gulf of Mexico plus parts of Alaska.

The federal bans were enacted in part to protect tourism and lessen the chance of oil spills washing on to beaches.

Presidential election

Mr Bush wants Congress to pass legislation to allow "responsible offshore exploration" and give states a say about whether drilling should be allowed.

But Mr Obama's campaign condemned the move, saying: "It would merely prolong the failed energy policies we have seen from Washington for 30 years."

It would be unlikely if Democrats in Congress backed a policy that contradicted their presidential candidate ahead of the November election.

Peak industry body, the Australian Trucking Association, says it does not support a nationwide truckies strike, planned for later this month.

Queensland truck drivers are upset about new logbook regulations, while others are complaining about issues ranging from fuel prices to carbon trading.

Organisers say 80 per cent of Australia's truck drivers will go on strike from July the 28th, until a long list of demands are met.

But the Australian Trucking Association's Bill McKinlay says that would be a waste of time and money.

"It will be business as usual for the vast bulk of Australia's trucking industry," he says.

"I'm sure there will be a few individual operators who will think about going on strike.

"I would urge them not to, but we do not believe the strikes will lead to significant disruption."

Millions of truck drivers in India called off a nationwide strike Friday after the government agreed to their demands.

Government officials announced they would lower the taxes truckers pay, roll back a recent increase in toll road fees, and remove a requirement for speed limiters. The government will also make available so-called “unbranded” diesel, which sells for less than regular diesel.

The strike lasted only two days, but according to Indian news sources, it crippled the movement of goods in many parts of the country.

Officials with Australian toll road operator Transurban have admitted to making $172,000 in illegal contributions to 90 political campaigns in the state of Virginia.

Michael Kulper, executive vice president for the company’s North American operations based in New York, sent a letter to elected officials and political action committees to apologize and admit to what he called an honest mistake. Since the contributions originated outside the U.S., they should not have been allowed.

“Transurban is aware of nothing to suggest that any candidate or committee knew there was anything improper about the donations,” Kulper wrote in the letter, adding that Transurban’s status as a U.S. company “did not alone make us eligible to contribute to Virginia campaigns.”

Kulper’s apology included a request that the donations be returned. Transurban would, in turn, make a donation to the Court Appointed Special Advocates program to help abused and neglected children.

Charlie Kelly, director of Gov. Tim Kaine’s political action committee Moving Virginia Forward, said there was no way of knowing Transurban’s contributions were illegal until company officials came forward.

“It was our belief that Transurban USA’s contributions were made in compliance with state and federal law at the time they were made,” Kelly said in a statement to Land Line.

“We received contributions from a U.S. company through U.S. representatives. As such, we had no reason to question the contributions.”

Kelly said any out-of-compliance contributions accepted by Kaine for Governor, Kaine Inaugural 2006, or Moving Virginia Forward, will be returned in full.

Transurban’s chief toll road operations are based in Melbourne, Australia. In 2006, the company won a 99-year lease of the 8.8-mile Pocahontas Parkway in Richmond, VA.

A year later, Transurban began working with the federal government and state of Virginia to expand the Capital Beltway from eight lanes to 12 lanes through the implementation of high-occupancy toll lanes.

Transurban and partner Fluor Corporation of Texas partnered to build HOT lanes on the Beltway using $589 million in private activity bonds issued by the federal government, another $589 million in federal grants, $409 million from the state of Virginia, and $350 million in privately raised capital.

The toll operator will build and manage the lanes in exchange for 75 years of toll revenue.

A third tolling proposal involving Transurban has not yet come to fruition. It involves the expansion of Interstate 95 and Interstate 395, also in Virginia.

Despite an emerging global consensus that oil prices are dangerously high, there seems little chance of the cost of oil falling significantly in the near future.

Analysts say measures agreed at Sunday's crisis summit in Jeddah are unlikely to have a dramatic impact on market trends.

But what is keeping prices close to record levels of almost $140 a barrel?

• The sharp jump in prices since 2005 has coincided with the plunge in the value of the dollar against other leading currencies
• Dollar weakness encourages financial investors to look for other more lucrative investment opportunities, with oil top of their list
• As oil is traded in dollars, it also makes it cheaper to buy
• Signs the US economy may be on the brink of recession have undermined the dollar, boosting prices. Prices rose $11 on a single day last month when the unemployment rate rose

• Analysts say growth in global supplies is worryingly failing to keep pace with growth in demand
• Supplies from countries such as Russia are thought to have peaked and finding new sources of oil is difficult and expensive
• Increasing reliance on members of the Middle-East dominated oil producers group Opec, many of which are already pumping as much oil as they can
• Saudi Arabia is one of few countries with spare capacity but it has been reluctant to boost output substantially

• Global thirst for oil is intense. Demand has risen by about 3 million barrels a day since 2005 and is expected to rise by 32 million barrels a day in the next two decades
• The US remains the world's largest oil consumer and high individual fuel usage continues to put pressure on crude stockpiles
• Fast-growing China and India are forecast to account for 40% of the growth in oil demand by 2030, as industry grows and demand for travel increases

• Much of the world's oil is concentrated in volatile regions, leading to fears of frequent and unpredictable disruptions to supplies
• Despite oil output being at a six-year high, Iraq is still beset by violence while militant groups in Nigeria's main oil-producing region have recently impeded about a quarter of its output
• 
  
Tensions over Iran's nuclear programme. There are fears that an Israeli attack on Iran's nuclear installations could trigger a wider conflict and threaten traffic through the strategically vital Strait of Hormuz, used to ship 40% of the world's oil.

• Oil exporters say the price surge cannot be explained by the fundamental ratio of supply to demand and point their fingers at market speculators
• It is claimed that some traders are making huge amounts of money betting on the direction of prices, in turn forcing prices higher
• Others maintain that traders are simply hedging their investments against future market developments to reduce risk
• US regulators are looking for evidence of market manipulation while the IMF is examining the role of traders in the price spike

The situation is all-too familiar: Truckers are feeling the pain caused by stagnant freight rates, increasing fuel prices and a reluctance by customers to add fuel surcharges to the cost of deliveries.

It’s not just a North American problem. The situation in Australia has reached dire straits according to trucking officials there.

Executive Director Steve Shearer of the South Australian Road Transport Association told the news agency Web site, www.adelaidenow.com.au, on Wednesday, July 9, that the industry could see a “calamitous collapse” in four to six months as more haulers go broke.

Diesel prices have increased by 100 percent since 2005 but customers still refuse to pay a higher rate, Shearer said.

Trucking groups have asked the government and businesses to work together to increase freight rates by 20 percent and implement a fair fuel-surcharge system or there won’t be anyone left to haul the freight.

In Australia, two-thirds of the industry consists of operators with four or fewer trucks. Owner-operators continue to be the most vulnerable, Shearer said. Trucks haul 85 percent of the freight in Australia.

Another component driving the issue of cost is a pending federal report on climate change that could cause the Australian government to impose more tax on fossil fuels starting in 2010.

The Australian Trucking Association announced July 4 that all truckers should be taking steps to pass cost increases and fuel surcharges to their customers.

“Many trucking companies are already struggling to cope with the rapidly rising price of diesel, which has gone up by 50 cents per liter since last October,” Australian Trucking Association Chairman Trevor Martyn stated in a press release.

Emissions trading – a form of tax on pollutants including fuel – could increase the price of diesel by another ten cents per liter, Martyn said.

“It is essential that every trucking company puts a system in place now to pass on increases in the cost of fuel,” he added.

Martyn says truckers should to do several things. First and foremost, they need to know their cost of operations. He said truckers should negotiate with customers for a freight increase, add fuel surcharges and refuse jobs that do not pay enough.

Heavy truck engine-maker Cummins took a big hit from flooding at its Columbus, IN, plant.

The Indianapolis Star reported that the plant suffered at least $100 million worth of damage as muddy flood waters flowed into basements and ground floors at the complex.

The engine plant, a technical center and an occupational health center were all damaged.

A company spokesman says insurance will cover most of the cost.

Icelandic police say they have shot and killed a polar bear discovered earlier this week on the island, which is hundreds of kilometres from the threatened species' natural habitat.

"It was shot last night [Tuesday]," a police spokesman in the northern town of Saudarkrokkur said.

Polar bears are rare sightings on Iceland, since they have to swim hundreds of kilometres through icy waters to reach the island from their natural Arctic habitats, but the bear discovered Monday was the second spotted and killed on the island in the past two weeks.

Icelandic authorities had been harshly criticised for killing the first bear and had indicated they would try to capture the second animal, which was discovered by a 12-year-old girl as she was out walking her dog.

The chief veterinarian from the Copenhagen zoo had been flown in late Tuesday to help.

The police "tried to get close to [the bear] with our vet, but they did not get close enough to shoot it with the anaesthetiser," zoo spokesman Bengt Holst said.

"Then the bear started running, so the police were frightened they would lose control. The bear could run very close to the populated area, so they decided to shoot it."

Mr Holst said he believed Icelandic authorities had made the right decision.

"It was a security problem," he said.

That two polar bears that have made their way to Iceland in recent weeks could lend credence to warnings from experts that climate change is creating a more perilous environment for the majestic Arctic animals.

A warming climate means the ice - where the bears usually hunt their favourite prey, the seals - is receding and literally melting under their paws, forcing them to swim ever greater distances.

Environmental and animal conservation groups have long warned the polar bear was in danger, and recent studies indicated melting Arctic sea ice could cut their population by two-thirds over the next 50 years.

The United States last month listed the polar bear as a "threatened species," meaning it is at risk of becoming "endangered" within the near future.

Animals are listed as endangered when they face imminent extinction.