What will happen next if cap-and-tax passes? Updated

By Michelle Malkin  •  June 26, 2009 12:20 PM

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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.

***

Heritage analysis of the economic impact of Waxman-Markey cap and trade: Read here.

Posted in: Enviro-nitwits

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  6. Who’s Read This?? Waxman Just Added 300 More Pages to H.R. 2454, Waxman-Markey Energy Tax Bill (video) « Frugal Café Blog Zone
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Comments


  1. #730289
    On June 26th, 2009 at 3:53 pm, jjmurphy said:

    This escalating energy tax will place the US economy into a permanent recession and that will result in a massive reduction in the quality of life for everyone in the US.

    …except for the rulers in D.C. and state capitals. That is THEIR version of the proper state of affairs.

  2. #730332
    On June 26th, 2009 at 4:18 pm, WarTip said:

    On June 26th, 2009 at 3:53 pm, jjmurphy said:

    This escalating energy tax will place the US economy into a permanent recession and that will result in a massive reduction in the quality of life for everyone in the US.

    …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.

  3. #730377
    On June 26th, 2009 at 4:41 pm, dadinseattle said:

    What will happen…we will sink!

  4. #730430
    On June 26th, 2009 at 4:59 pm, jjmurphy said:

    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.

    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.)

  5. #730470
    On June 26th, 2009 at 5:22 pm, lgm said:

    Salt said (#87):

    lgm vehemently defends climate change politicians as experts.

    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.

    Michelle didn’t quote Jim Mulva. She included the context from the Bloomberg article which quoted him.

    He’s the source of the “information” in her post. She posts the quote and agrees with it.

    To question Michelle as if she should not have posted the article because you disagree with the premise is not an issue with her journalistic integrity.

    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.

  6. #730514
    On June 26th, 2009 at 6:02 pm, Salt said:

    On June 26th, 2009 at 5:22 pm, lgm said:

    He’s the source of the “information” in her post. She posts the quote and agrees with it.

    So what?

    You’re the one that quibbled over facts versus opinion when no obfuscation on this was made by Michelle.

    To question Michelle as if she should not have posted the article because you disagree with the premise is not an issue with her journalistic integrity.

    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.

    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.

  7. #730988
    On June 26th, 2009 at 11:29 pm, GraniteMan said:

    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???

  8. #730992
    On June 26th, 2009 at 11:33 pm, GraniteMan said:

    He himself, as he will say, is not a technical expert.
    On June 26th, 2009 at 5:22 pm, lgm said:

    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.

  9. #731014
    On June 26th, 2009 at 11:54 pm, SpeakEasy said:

    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.

  10. #731210
    On June 27th, 2009 at 9:04 am, misterbee241 said:

    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.

  11. #732708
    On June 29th, 2009 at 2:56 pm, chaosrainz said:

    On June 26th, 2009 at 12:40 pm, DBNinKY said:
    Even some Democrats, however reluctantly, are beginning to realize the devastation that cap and trade would present to the coal fields of KY and WV.

    “Coal does much more than keep the lights on in the big cities across America,” he said.

    “In my district, it covers the mortgage, it puts food on the family dinner table and it keeps open the doors of small businesses.”

    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.

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