What will happen next if cap-and-tax passes? Updated
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Welcome to the opposite of stimulus. Via Bloomberg:
America’s biggest oil companies will probably cope with U.S. carbon legislation by closing fuel plants, cutting capital spending and increasing imports.
Under the Waxman-Markey climate bill that may be voted on today by the U.S. House, refiners would have to buy allowances for carbon dioxide spewed from their plants and from vehicles when motorists burn their fuel. Imports would need permits only for the latter, which ConocoPhillips Chief Executive Officer Jim Mulva said would create a competitive imbalance.
“It will lead to the opportunity for foreign sources to bring in transportation fuels at a lower cost, which will have an adverse impact to our industry, potential shutdown of refineries and investment and, ultimately, employment,” Mulva said in a June 16 interview in Detroit. Houston-based ConocoPhillips has the second-largest U.S. refining capacity.
The same amount of gasoline that would have $1 in carbon costs imposed if it were domestic would have 10 cents less added if it were imported, according to energy consulting firm Wood Mackenzie in Houston. Contrary to President Barack Obama’s goal of reducing dependence on overseas energy suppliers, the bill would incent U.S. refiners to import more fuel, said Clayton Mahaffey, an analyst at RedChip Cos. in Maitland, Florida.
“They’ll be searching the globe for refined products that don’t carry the same level of carbon costs,” said Mahaffey, a former Exxon Corp. refinery manager.
Prices Seen Rising
One in six U.S. refineries probably would close by 2020 as the cost of carbon allowances erases profits, according to the American Petroleum Institute, a Washington trade group known as API. Carbon permits would add 77 cents a gallon to the price of gasoline, said Russell Jones, the API’s senior economic adviser.
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Heritage analysis of the economic impact of Waxman-Markey cap and trade: Read here.
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Trackbacks
- Gazzer’s Gabfest » Cap and trade/bait and switch…what’s the diff?
- The Oncoming Disaster that is Cap-And-Trade « NEOAVATARA
- how do you feel about the Waxman-Markeys cap-and-trade provisions? - FlyerTalk Forums
- PunditKix
- Pelosi Pounding Drum Louder for Cap-and-Trade Vote, WSJ Exposes What Americans Will Pay for Waxman-Markey Energy Bill « Frugal Café Blog Zone
- Who’s Read This?? Waxman Just Added 300 More Pages to H.R. 2454, Waxman-Markey Energy Tax Bill (video) « Frugal Café Blog Zone
- Ed Driscoll » 2009: A Smoot-Hawley Odyssey
- A look into the future if Crap and Tax passes HR 2454 | Fire Andrea Mitchell!
- Just How Bad Is the HR 2454 Energy Tax Bill? Greenpeace Won’t Back It « Frugal Café Blog Zone
- FACTS: WHY VOTE AGAINST CAP & TRADE (HR2454) « FactReal
- Michelle Malkin » What will happen next if cap-and-tax passes?
- Cap-and-Trade Passes in House: And Exactly Why Do These Eight Reps Call Themselves Republicans? « Quick Daily Hits — Politics and Such
- Cap and Trade Passes Despite Climate Changing on Climate Change | The Great Illuminator
- Will that be cash, credit or fossil fuel? « Finding Ponies…
- Cap-and-Trade’s Narrow Passage and Faltering Evidence for Climate Change Have Supporters Ratcheting Up Attacks « Quick Daily Hits — Politics and Such
- Vote Against Cap-and-Trade ‘Betraying the Planet’, says NY Times — The Truth Is, Vote For Cap-and-Trade Is Betraying Your Kids and Grandkids « Quick Daily Hits — Politics and Such
- “Sea of Propaganda” - Smart Girl Nation
- “Sea of Propaganda” | nFiniteEcho.com
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…except for the rulers in D.C. and state capitals. That is THEIR version of the proper state of affairs.
Just an interesting thought … albeit somewhat morbid. What would happen to all of those big fancy homes in the cities when the store shelves were empty and there was no work, no food and only a bunch of rich people had anything at all? Somehow I doubt the criminal element in DC is bothered by any gun-ban, constitutional or not.
What will happen…we will sink!
LOL! It might almost be worth it to see the “elite” in D.C and elsewhere being visited by their beloved followers. (Of course I am kidding, sort of.)
Salt said (#87):
I have never done this. I defend, for example, Al Gore as someone who has figured out who the experts are and what they’re saying. He himself, as he will say, is not a technical expert.
He’s the source of the “information” in her post. She posts the quote and agrees with it.
Agreed. It’s taking issue with her journalistic competence. A lobbyist is not a reliable source of statements that are likely to be factually accurate.
So what?
You’re the one that quibbled over facts versus opinion when no obfuscation on this was made by Michelle.
A CEO of a large energy company would be in an expert position to offer his opinion on competitive balance. Take his opinion or leave it.
We can all read the article that Michelle linked and draw our own opinions. You disagree with him (but yet imply that his statement is likely to be factually accurate?). That’s fine. If you’re going to reduce him to a lobbyist because of his interest in the outcome, you might wish to consider the same set of interests on the other side.
Comments knocking Michelle’s journalistic competence (or integrity) just seem churlish. What’s the point in doing it? We all get that you don’t care for her.
Well, Obama told Joe the Plumber he wanted to redistribute the wealth. All of us dummies thought he meant distribute our wealth to our poor. No Sir! He is sending all our jobs AND all our wealth south of the equator to third world countries! Read “Obama the Colonial” on American Thinker. What is the matter with our Congress? Are they all traitors???
He is not an expert but he does have a HUGE conflict of interest by being in a position to make immense profits from a strong Cap and Trade legislation being passed.
Just like a junkie, the liberals have to bottom out before they will see what is being done. Last time it took a depression. Ask a former Politburo member what it felt like when the wall finally came down. As long as we are armed, we can never lose our freedoms.
My wife and I have often talked that we may not be able to retire in the county where are living because of high cost of living. Looks like under Obama we wont even be able to retire in the US.
Yet, I called Yarmuth and he voted Yes anyway. And just Friday a friend who works closely with the mining industry was telling me that there are NO permits being issued for coal mining right now.
Francene on 84WHAS is supposed to have Yarmuth on the show Thursday if you’re interested in his excuse. 840 am.