Thank You Very Little part Ad Nauseum
Posted by The Asian Badger on June 29, 2009
Thanks to the passage of the Cap and Tax Bill by the traitors in The House, it looks like the price to the economy, and therefore the cost to consumers will be even higher than anticipated. Why? Well, for openers, the refiners and U.S. oil companies will NOT use energy when they have alternatives.
June 26 (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.” [...]
The final paragraph sums it all up.
““If you can import fuels without the same carbon costs as domestic refiners, you will have an advantage,” Durbin said. “Does that open the door for offshore refiners? I think it does.”
Wait until those credits start “trading”. As I’ve said before, it will make the mortgage crisis look like a walk in the park.
You should also read this post by Denninger who shows why calling Krugman an economist is simply a joke. Especially when it comes to cap and tax.
Of course the Demtards and 8 RINOs who voted for this piece of crap aren’t the only morons around…they were elected to office.
virgil xenophon said
There is one saving grace in all this (or would be were it not for little things like nat. security concerns and loss of expertise as skilled personnel age and are not replaced and loss of industrial capacity to support large-scale energy production) and that is that if by some miracle we are not held up for ransom and the market is left free, we will drain the rest of the world first, leaving huge energy assets remaining untouched until when we REALLY need them.