From the Energy Front 060109
Hey folks,
Obama is pushing for the Waxman-Markey Global Warming Tax Bill. Pushing for it BIG TIME. Some folks out there are buying right into it. You know your Energy cost are going to go up, even more than they are going up now? "Yeah but that's the price we have to pay to save the environment." Really? I have an interesting Video coming right up that tells you, if you accept the premise that there actually is a problem, I don't, just how much all this will actually "save the Environment."
But first I want to address a question I got Friday. No Thursday. I don't know. Last week. Here it is.
"What about the Gas Prices lately? How do you defend that? We know you have friends that you like to defend all the time in Big Oil, so tell us, there is no demand, how do you defend the Gas Prices? We await your answer. Ought to be good."
They provided this link - TIME.com - Oil Is Plentiful, Demand Weak. Why Are Gas Prices Going Up?
Storage tankers across the globe may be brimming with oil that no one is buying because of the global economic downturn, but the traditional laws of supply and demand don't always apply to oil prices. Drivers have faced rising prices at the gas pump in recent months, as investors and oil-producing countries hoard supplies in anticipation of a global economic recovery later this year.
The 12 member countries of the OPEC cartel voted in Vienna on Thursday to maintain output at current levels rather than increase supplies in order to bring some relief to consumers, particularly in the gas-guzzling West. {That would be us} The OPEC oil ministers, whose countries account for about 40% of the world's entire crude-oil supply, also renewed their commitment to stick to their agreed quotas, rather than ship extra oil, as they began doing last April when several members ignored their agreed output limits. OPEC leaders, many of whose economies are heavily dependent on oil exports, have struggled to stabilize prices at a level that suits their own economic needs amid falling demand and rising supplies. Prices had rocketed to a record level of $147 a barrel last July before plummeting to $30 just five months later and beginning a new climb.
Oil analysts believe OPEC's decisions on Thursday could help push oil prices even higher; oil futures on the New York Mercantile Exchange have risen 36% in just two months, to about $63.46 a barrel on Thursday. And that appears to be on track to achieve targets set by OPEC leaders. Saudi Oil Minister Ali al-Naimi - OPEC's key power player - said Wednesday that oil prices ought to rise to between $75 and $80 a barrel by the end of the year. "Demand is picking up, especially in Asia," he told reporters puffing alongside him as he jogged through the streets of Vienna. "The price rise is a function of optimism that better things are coming in the future."
Hey Obama just said we are back from the brink. The Media is talking up the Economy. The numbers do not say the same thing, but hey, Obama is the President and he can not be shown to be the Failure he is in dealing with this.
The economic recovery Naimi so optimistically predicts would certainly be vital to oil-producing countries, whose own economies would be imperiled by a drawn-out recession. Oil demand in rich countries has crashed since the onset of the economic crisis last year, and is now at its lowest level since about 1981, according to the Paris-based International Energy Agency. U.S. oil inventories - the stored surplus - this month reached their highest level since the 1980s. And about 2.6 billion barrels are currently stored in commercial tankers around the world. "There is some risk we will run out of storage space in the next four to six weeks," says Simon Wardell, director of global oil at IHS Global Insight, an energy-forecasting company in London. To oil-rich countries that possibility evokes grim memories of 1998, when the Asian economic crisis sent demand plummeting, driving world oil prices down to $10 a barrel. "If we run out of storage it could prompt a collapse in the price," says Wardell. Oil producers might then choose to dramatically cut output in order to run down the surplus.
Despite such dangers, investors and oil producers are betting that global demand will roar back, apparently hoping that the recession has already hit bottom. Over the past two months, investors have plowed billions of dollars into oil futures. If the U.S. and other major industrial economies rebound, oil supplies could be depleted because the recession has prompted producer nations to freeze hundreds of projects to open new oil wells or upgrade existing ones. In the oil-rich Niger Delta, a major Nigerian government offensive against rebels has seriously disrupted production for several weeks. Venezuela's Oil Minister Rafael Ramirez said in Vienna that his country could not afford to invest in major new oil exploration unless prices rise further. "We need a level of at least $70 [a barrel] to recuperate investment," he said on Thursday. Muhammad-Ali Zainy, senior energy analyst at the Center for Global Energy Studies in London, says oil demand could increase quickly once the recession ends, especially as China has begun to build up its strategic oil reserves. "We think the price is going to go up gradually," says Zainy.
For those feeling the pain at the gas pumps, however, there is one piece of good news. Oil is unlikely to hit $147 a barrel again - at least not during the coming decades. The U.S. Energy Information Administration said on Wednesday that oil prices would likely rise to $110 a barrel by 2015 and $130 a barrel by 2030. By that time the world oil markets might once again follow the normal rules of economics.
I know you are ticked off at this. So am I. I'm not about to defend OPEC. Why in the Blue Hell do you think that I have been advocating TRUE Energy Independence for YEARS now? Why do you think that I have been giving you the FACTS? "Green Energy" is a nice dream, but there is none. We DO have our own Oil and Natural Gas, all we have to do is go get it. We have companies ready to do just that. Why are we in the situation we are in? Dependence on Foreign Governments for our Energy.
One way we will NOT see a reduction in Gas Prices, Home Heating Prices, Food Prices, {They have to be delivered to the stores somehow} is NOT Waxman-Markey.
Check out this Video from Fox News. Heritage's energy and climate change expert David Kreutzer discusses how the Waxman Markey global warming tax will hurt both jobs and the economy. If you have to, watch it twice to get the REAL numbers.
Now our friends over at API just finished a paper talking about how the folks here in Florida will be hurt directly. Here it is.
The People Of Florida will be hurt by the Waxman-Markey Climate Bill.
The legislation is unbalanced. The goals are laudable, but the bill will hit consumers and producers of petroleum fuels especially hard and create an uneven playing field for U.S. refiners while protecting other U.S. industries. People who use automobiles, trucks, planes, trains, heating oil and other non-transportation petroleum products will shoulder the lion’s share of the burden, but the inequitable nature of the legislation could worsen the pain for everyone.
Higher prices: The bill will touch every family and every business that uses oil products. According to one independent analysis, the bill will raise gasoline prices by 74 percent. Today, that would mean gasoline prices above $4.00 a gallon, an increase nearly equivalent to a ten-fold rise in the federal gasoline tax.
Less disposable income: An average family could pay an additional $1,500 a year for energy. That’s 4.3 percent of Florida’s per capita disposable income. Fewer jobs and lower wages: One independent study projects up to 2.7 million net jobs lost annually, even with new green jobs created, and expects the wages of workers who remain employed to fall and for the loss to become greater over time. Another analysis shows that the inequitable approach of the bill by itself will produce additional unemployment, driving annual job destruction totals related to the legislation to more than 2.2 million jobs nationwide by 2011. For Florida this could mean a loss of 132 thousand jobs just a few years from now. If those jobs were lost today it would increase Florida’s unemployment rate from 9.7 percent to 11.1 percent.
Less wealth: One analysis projects the bill would reduce aggregate gross domestic product (GDP) by $9.6 trillion over the next 30 years. For Florida this could mean a reduction of as much as $511 billion in the state’s gross state product (GSP).
Hey folks,
Obama is pushing for the Waxman-Markey Global Warming Tax Bill. Pushing for it BIG TIME. Some folks out there are buying right into it. You know your Energy cost are going to go up, even more than they are going up now? "Yeah but that's the price we have to pay to save the environment." Really? I have an interesting Video coming right up that tells you, if you accept the premise that there actually is a problem, I don't, just how much all this will actually "save the Environment."But first I want to address a question I got Friday. No Thursday. I don't know. Last week. Here it is.
"What about the Gas Prices lately? How do you defend that? We know you have friends that you like to defend all the time in Big Oil, so tell us, there is no demand, how do you defend the Gas Prices? We await your answer. Ought to be good."
They provided this link - TIME.com - Oil Is Plentiful, Demand Weak. Why Are Gas Prices Going Up?
Storage tankers across the globe may be brimming with oil that no one is buying because of the global economic downturn, but the traditional laws of supply and demand don't always apply to oil prices. Drivers have faced rising prices at the gas pump in recent months, as investors and oil-producing countries hoard supplies in anticipation of a global economic recovery later this year.The 12 member countries of the OPEC cartel voted in Vienna on Thursday to maintain output at current levels rather than increase supplies in order to bring some relief to consumers, particularly in the gas-guzzling West. {That would be us} The OPEC oil ministers, whose countries account for about 40% of the world's entire crude-oil supply, also renewed their commitment to stick to their agreed quotas, rather than ship extra oil, as they began doing last April when several members ignored their agreed output limits. OPEC leaders, many of whose economies are heavily dependent on oil exports, have struggled to stabilize prices at a level that suits their own economic needs amid falling demand and rising supplies. Prices had rocketed to a record level of $147 a barrel last July before plummeting to $30 just five months later and beginning a new climb.
Oil analysts believe OPEC's decisions on Thursday could help push oil prices even higher; oil futures on the New York Mercantile Exchange have risen 36% in just two months, to about $63.46 a barrel on Thursday. And that appears to be on track to achieve targets set by OPEC leaders. Saudi Oil Minister Ali al-Naimi - OPEC's key power player - said Wednesday that oil prices ought to rise to between $75 and $80 a barrel by the end of the year. "Demand is picking up, especially in Asia," he told reporters puffing alongside him as he jogged through the streets of Vienna. "The price rise is a function of optimism that better things are coming in the future."
Hey Obama just said we are back from the brink. The Media is talking up the Economy. The numbers do not say the same thing, but hey, Obama is the President and he can not be shown to be the Failure he is in dealing with this.
The economic recovery Naimi so optimistically predicts would certainly be vital to oil-producing countries, whose own economies would be imperiled by a drawn-out recession. Oil demand in rich countries has crashed since the onset of the economic crisis last year, and is now at its lowest level since about 1981, according to the Paris-based International Energy Agency. U.S. oil inventories - the stored surplus - this month reached their highest level since the 1980s. And about 2.6 billion barrels are currently stored in commercial tankers around the world. "There is some risk we will run out of storage space in the next four to six weeks," says Simon Wardell, director of global oil at IHS Global Insight, an energy-forecasting company in London. To oil-rich countries that possibility evokes grim memories of 1998, when the Asian economic crisis sent demand plummeting, driving world oil prices down to $10 a barrel. "If we run out of storage it could prompt a collapse in the price," says Wardell. Oil producers might then choose to dramatically cut output in order to run down the surplus.
Despite such dangers, investors and oil producers are betting that global demand will roar back, apparently hoping that the recession has already hit bottom. Over the past two months, investors have plowed billions of dollars into oil futures. If the U.S. and other major industrial economies rebound, oil supplies could be depleted because the recession has prompted producer nations to freeze hundreds of projects to open new oil wells or upgrade existing ones. In the oil-rich Niger Delta, a major Nigerian government offensive against rebels has seriously disrupted production for several weeks. Venezuela's Oil Minister Rafael Ramirez said in Vienna that his country could not afford to invest in major new oil exploration unless prices rise further. "We need a level of at least $70 [a barrel] to recuperate investment," he said on Thursday. Muhammad-Ali Zainy, senior energy analyst at the Center for Global Energy Studies in London, says oil demand could increase quickly once the recession ends, especially as China has begun to build up its strategic oil reserves. "We think the price is going to go up gradually," says Zainy.
For those feeling the pain at the gas pumps, however, there is one piece of good news. Oil is unlikely to hit $147 a barrel again - at least not during the coming decades. The U.S. Energy Information Administration said on Wednesday that oil prices would likely rise to $110 a barrel by 2015 and $130 a barrel by 2030. By that time the world oil markets might once again follow the normal rules of economics.
I know you are ticked off at this. So am I. I'm not about to defend OPEC. Why in the Blue Hell do you think that I have been advocating TRUE Energy Independence for YEARS now? Why do you think that I have been giving you the FACTS? "Green Energy" is a nice dream, but there is none. We DO have our own Oil and Natural Gas, all we have to do is go get it. We have companies ready to do just that. Why are we in the situation we are in? Dependence on Foreign Governments for our Energy.
One way we will NOT see a reduction in Gas Prices, Home Heating Prices, Food Prices, {They have to be delivered to the stores somehow} is NOT Waxman-Markey.
Check out this Video from Fox News. Heritage's energy and climate change expert David Kreutzer discusses how the Waxman Markey global warming tax will hurt both jobs and the economy. If you have to, watch it twice to get the REAL numbers.Now our friends over at API just finished a paper talking about how the folks here in Florida will be hurt directly. Here it is.
The People Of Florida will be hurt by the Waxman-Markey Climate Bill.
The legislation is unbalanced. The goals are laudable, but the bill will hit consumers and producers of petroleum fuels especially hard and create an uneven playing field for U.S. refiners while protecting other U.S. industries. People who use automobiles, trucks, planes, trains, heating oil and other non-transportation petroleum products will shoulder the lion’s share of the burden, but the inequitable nature of the legislation could worsen the pain for everyone.
Higher prices: The bill will touch every family and every business that uses oil products. According to one independent analysis, the bill will raise gasoline prices by 74 percent. Today, that would mean gasoline prices above $4.00 a gallon, an increase nearly equivalent to a ten-fold rise in the federal gasoline tax.Less disposable income: An average family could pay an additional $1,500 a year for energy. That’s 4.3 percent of Florida’s per capita disposable income. Fewer jobs and lower wages: One independent study projects up to 2.7 million net jobs lost annually, even with new green jobs created, and expects the wages of workers who remain employed to fall and for the loss to become greater over time. Another analysis shows that the inequitable approach of the bill by itself will produce additional unemployment, driving annual job destruction totals related to the legislation to more than 2.2 million jobs nationwide by 2011. For Florida this could mean a loss of 132 thousand jobs just a few years from now. If those jobs were lost today it would increase Florida’s unemployment rate from 9.7 percent to 11.1 percent.
Less wealth: One analysis projects the bill would reduce aggregate gross domestic product (GDP) by $9.6 trillion over the next 30 years. For Florida this could mean a reduction of as much as $511 billion in the state’s gross state product (GSP).
Undermines energy security: U.S. refiners will have to buy allowances, increasing their costs and giving a competitive advantage to non-U.S. refiners. U.S. jobs will be lost and contrary to the bill’s intention, America will be less energy secure.
The requirements are not equitable and will hurt consumers and producers of motor fuels most. The bill would allocate only two percent of allowances to fuel producers, but make them responsible for 44 percent of emissions, including emissions from refineries and also consumer emissions from planes, trains, automobiles, heating oil, and other non-transportation petroleum use. In contrast, some other sectors receive free allowances that roughly match their obligation (utilities get more than 40 percent of all allowances, select “energy-intensive” industries get 15 percent of all allowances and local natural gas distributors receive nine percent). This inequitable system of allocations will have a disproportionate adverse impact on consumers and producers of gasoline, diesel fuel, heating oil, jet fuel, propane and crude oil.
The people of Florida who use automobiles, trucks, planes, trains, heating oil and other non-transportation petroleum products are treated unfairly by the Waxman-Markey Climate Bill.
The transition to new low-emission energy sources will take time. Unlike power generation, which has the ability of switching to a low-carbon fuel source, there is no commercial-scale low-carbon source to fuel the nation’s 250 million cars.
We need an equitable plan that will address global climate change and improve, not weaken, our nation’s energy and economic security. Decisions made today will have repercussions for decades to come. We need to take the time now to get this right.
Those states with the highest emissions per dollar of economic activity will face the greatest challenge to reduce them.
There are some great charts in this. Check them out. FLORIDA_WAXMAN_MARKEY.pdf
Folks, the bottom line is this. Like I pointed out before, the way the Energy industry sees this is this. It doesn't matter if "Man-made Climate Change" is real or not. It no longer matters that Global Warming is a Scam. We have a Congress and a President that "Believes" or wants you to believe that it is a real and pending crisis. The real question that the Energy Industry, and unfortunately all of us, have to deal with, is this. "What are they going to do about it?"
Like David Kreutzer said, it's easy to believe that Waxman-Markey is necessary to help fix Man-made Global Warming, when you are receiving BILLIONS of dollars for pet projects. The problem for you, the average American, is that those Billions of dollars are coming from YOU. Another problem is, even if this was true, just like the very REAL problems in the Financial institutions, Housing, Auto industries, all this money, will do NOTHING to fix it. But I guess as long as you are told that YOU are helping to Save the Planet, you will be fine with the $4.00 a gallon gas price.
Peter
Sources:
TIME.com - Oil Is Plentiful, Demand Weak. Why Are Gas Prices Going Up?
Fox News Video
API
The requirements are not equitable and will hurt consumers and producers of motor fuels most. The bill would allocate only two percent of allowances to fuel producers, but make them responsible for 44 percent of emissions, including emissions from refineries and also consumer emissions from planes, trains, automobiles, heating oil, and other non-transportation petroleum use. In contrast, some other sectors receive free allowances that roughly match their obligation (utilities get more than 40 percent of all allowances, select “energy-intensive” industries get 15 percent of all allowances and local natural gas distributors receive nine percent). This inequitable system of allocations will have a disproportionate adverse impact on consumers and producers of gasoline, diesel fuel, heating oil, jet fuel, propane and crude oil.
The people of Florida who use automobiles, trucks, planes, trains, heating oil and other non-transportation petroleum products are treated unfairly by the Waxman-Markey Climate Bill.
The transition to new low-emission energy sources will take time. Unlike power generation, which has the ability of switching to a low-carbon fuel source, there is no commercial-scale low-carbon source to fuel the nation’s 250 million cars.
We need an equitable plan that will address global climate change and improve, not weaken, our nation’s energy and economic security. Decisions made today will have repercussions for decades to come. We need to take the time now to get this right.
Those states with the highest emissions per dollar of economic activity will face the greatest challenge to reduce them.
There are some great charts in this. Check them out. FLORIDA_WAXMAN_MARKEY.pdf
Folks, the bottom line is this. Like I pointed out before, the way the Energy industry sees this is this. It doesn't matter if "Man-made Climate Change" is real or not. It no longer matters that Global Warming is a Scam. We have a Congress and a President that "Believes" or wants you to believe that it is a real and pending crisis. The real question that the Energy Industry, and unfortunately all of us, have to deal with, is this. "What are they going to do about it?"
Like David Kreutzer said, it's easy to believe that Waxman-Markey is necessary to help fix Man-made Global Warming, when you are receiving BILLIONS of dollars for pet projects. The problem for you, the average American, is that those Billions of dollars are coming from YOU. Another problem is, even if this was true, just like the very REAL problems in the Financial institutions, Housing, Auto industries, all this money, will do NOTHING to fix it. But I guess as long as you are told that YOU are helping to Save the Planet, you will be fine with the $4.00 a gallon gas price.
Peter
Sources:
TIME.com - Oil Is Plentiful, Demand Weak. Why Are Gas Prices Going Up?
Fox News Video
API
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