Tuesday, September 16, 2008
|
|
New Taxes for Energy that Won’t Produce
|
|
Posted by:
John Campbell at
4:31 PM
|
|
I am sure many of you have been paying attention to the debate (or lack thereof) on energy in Congress. Well now the majority has decided to take up a bill after months of pleas from Republican members of the House. However, this bill is designed to fail, and worse yet it increases spending and taxes. Don’t believe it? Here are some of the details. Lack of Incentive: The bill allows offshore drilling, only for States that choose it, no closer than 50 miles from the coast, however it also prohibits revenue sharing of new oil and gas proceeds, thereby removing any incentive for States to “opt in” and allow drilling off their coasts. Nor does the bill offer any lawsuit protection, so companies that do search for oil will continue to be hampered with limitless litigation by environmental groups. This bill will raise taxes: This bill raises taxes on large oil and gas companies engaged in domestic energy production by nearly $13.9 billion over 10 years, all to provide tax breaks to favored energy projects and products. The bill also limits the use of foreign tax credits on the international operations of oil and gas companies, which pushes the overall tax hike in the bill up to $17.7 billion. Reduces revenue: The Congressional Budget Office [CBO] has estimated the government could initially receive $5 billion in additional revenue without raising taxes by opening the OCS and allowing drilling in the Arctic National Wildlife Refuge [ANWR]. Yet this bill continues to limit drilling in the OCS. According to CBO, it reduces revenue to the Treasury by $1 billion, New Fees for Energy Companies: The bill raises $5.8 billion by imposing new fees on certain leases that currently pay no royalties. It also imposes $1.8 billion of new fees on non-producing Gulf of Mexico leases, and requires retroactive lease payments back to 1 October 2007 on certain leases. Higher Spending, No Deficit Reduction: The bill increases the top line for appropriated spending by $6.6 billion, so that total 2009 nonemergency discretionary spending increases by 9.3 percent over 2008. All new revenue in the bill is set aside in a reserve fund to offset future appropriated spending increases. There is no guarantee this funding will be used to reduce U.S. dependence on foreign oil. More Earmarked Spending: The bill restructures the New York Liberty Zone Program, making it a $2-billion earmark that can be used for any transportation infrastructure project in New York City. The measure also earmarks $25 million to establish a so-called “National Energy Center of Excellence.” New Spending for Energy Block Grants: The bill also authorizes $2.5 billion in new spending for energy related block grants, and $3.4 billion to States for transportation grants. Exploiting the Fannie-Freddie Bailout: The bill seeks to make Fannie Mae and Freddie Mac green when the problem is they are insolvent. It directs the two financially ailing firms to develop loan products and flexible underwriting guidelines to facilitate a secondary market for energy- and location-efficient mortgages on low- and moderate-income housing. The bill also calls for Fannie and Freddie to facilitate second and junior mortgages for energy-efficiency and renewable energy improvements.
|
|
|
A greater awareness and concern for the world, and our neighbors is nothing to be discouraged, but the truth is often twisted in what the popular media tells listeners, and that creates a misplaced concern and harms real people. Luckily there is a emerging conservative voice. Check out http://noteviljustwrong.com/ “Not Evil Just Wrong” is a film that is going to be released this fall. The film is an advocate of people and truth and will cause greater awareness where it needs to be revealed. |
|
"It directs the two financially ailing firms to develop loan products and flexible underwriting guidelines to facilitate a secondary market for energy- and location-efficient mortgages on low- and moderate-income housing. The bill also calls for Fannie and Freddie to facilitate second and junior mortgages for energy-efficiency and renewable energy improvements."
This is very difficult to believe. But maybe not; it may be the model for the Obama administration. Can't you see the FM/FM model used for all sectors?
|
|
RED Nancy has a vested interest in keeping us from drilling our own oil, she's got money invested in T. Boone Pickens alternative wind
farms (which we will have to subsidize, plus right of ways will be taken via emminent domain), what else has she got a money interest in that's keeping her as well as the others who are blocking us from OUR oil..it' just irritates me no end when I read Congress should
ALLOW..who the heck are they to ALLOW Americans
to do anything..they need to be term limited out, via the voting booth since the judiciary
seems to rule in the politicians favor unless you are a small town politician, then you can be term limited. |
|
When I told my husband about this energy bill he busted out laughing.. Here we go again, Dems have stuck it to us.. You have to be 50 miles off shore or more to drill.Your kidding me. Everyone knows the oil there is the hardest to get to because the water there is so deep and will cost the most to bring in. The 18 billion barrels that are there now that can be gotten to easier will be off limites to drilling with this bill.....This bill is just nuts..
Wake up America you getting screwed yet again by the Dems !! |
|
The domestic oil & gas industry LOST 374,000 high paying American jobs when oil dropped in price dramatically in the early 1980s & also drilling BANS were put in place that BLOCKED domestic Oil & Gas exploration & development in:
1. 3/4 of ALL off shore lease blocks...
2. In ALL of the 19 million acres of ANWR, while only 2500-4500 acres would be impacted, some 0.02% of the acreage & 99.98% would be left UNTOUCHED...
3. 80%+ of the Green River Oil Shale formation in the ROCKIES of Utah, Colorado, & Wyoming, with the potential of some 800 BILLION to 1.2 TRILLION barrels of oil, equal to 3 or 4 times that of Saudi Arabia's current reserves, & equal to 120-200+ years of oil reserves all on its own...
IF WE GET SERIOUS ABOUT OUR ENERGY INDEPENDENCE and LIFT THESE INSANE DRILLING BANS, we will not only become ENERGY INDEPENDENT, but we will also create anywhere from 200,000 to 400,000+ HIGH PAYING AMERICAN DOMESTIC OIL & GAS EXPLORATION & PRODUCTION JOBS... |
|
President Bush has tried 3 times since 2001 to get Congress to lift bans on drilling in ANWR, OFFSHORE, and in the Rockies on federal lands in the Green River formation, only to be turned down 3 times.
If Congress would have acted then, that oil & gas would now be in the supply pipelines reducing the supply shortage & lowing prices.
Oil & Gas Shales, could be an answer for US energy woes. |
|
The following are oil/gas shale areas that have great potential & could HELP to eleviate future energy woes.
1. the Bakken Oil Shale of Dakotas & Montana estimated 80-400 Billion barrels of oil
2. Barnett & Woodford Shales of Texas & Oklahoma with 30-300 TRILLION cu ft of gas
3. Lewis & Mancos of New Mexico & Colorado estimated 90 TRILLION cu ft gas reserves 4. New Albany of the Illinois & Ohio basin estimated 80-160 TRILLION cu ft gas reservves
5. Antrim formation of northern Michigan estimated 35-75 TRILLION cu ft reserves
6. Devonian/Ohio of western Appliachian states is estimated 225-250 trillion cu ft gas
7. Other areas now starting to see new drilling and are of yet unknown but possibly even greater potentials are the Haynesville Shale formation of north west Louisiana & north east Texas.
8. Tuscaloosa Marine Shale of south Mississippi, & south east Louisiana which has been estimated to have 10-50 BILLION recoverable barrels potiential.
9. The biggest most prolific is the Green River Shale of Utah, Colorado & Wyoming which although is currently 80%+ restricted by government (Congress), from exploration may contain 800 BILLION-1.2 TRILLION recoverable barrels oil, 3-4 times Saudi Arabias reserves, equalling 120+ yrs of reserves by itself.
10.Currently 3/4 offshore areas BANNED by Congress from exploration with potentially 20-??? BILLION barrels oil.
11. Of 19 Million acres of ANWR, BANNED by Congress, only 2500-4500 acres are needed to drill which is 0.02% of land there leaving 99.98% UNTOUCHED. ANWR would be quickest easiest short term to produce geologically & economically. |
|
Food for thought here.
IF Congress will allow drilling in the state waters off our coast, it could provide the states with $hundreds of millions to $BILLIONS of dollars in state revenues annually just by lifting drilling bans & ALLOWING US TO DRILL.
EXAMPLE IN CASE:
The state of Alabama receives $500 million dollars each year in lease & royalty revenues from petroleum exploration/production activities annually.
With many states seeing tighter budgets, drilling could be a big part of the answer to helping them out with budgetary short falls.
Imagine just how much increase in state revenues, that the states COULD & SHOULD be getting, if the federal government (Congress) as well as state legislatures and governments would only adopt environmentally safe pro-drilling & exploration policies.
Alabama has a very small coast and is ranked only 9th in the nation when it comes to oil & gas exploration.
The state of Alabama through the excellent direction & oversight of the Alabama State Oil & Gas Board has probably the best governmental environmentally safe pro-drilling aproach & policies of any state or federal agency that I know of.
It should be a model of how government can be a positive factor in promoting and establishing environmentally safe pro-drilling/petroleum production policies & procedures in my 25 yrs experience & humble opinion as a petroleum exploration geologist.
(info from above can be found @ the Alabama State Oil & Gas Board web site & publications.)
http://www.ogb.state.al.us/gsa/petro_sys.html |
|
Food for thought here.
IF Congress will allow drilling in the state waters off our coast, it could provide the states with $hundreds of millions to $BILLIONS of dollars in state revenues annually just by lifting drilling bans & ALLOWING US TO DRILL.
EXAMPLE IN CASE:
The state of Alabama receives $500 million dollars each year in lease & royalty revenues from petroleum exploration/production activities annually.
With many states seeing tighter budgets, drilling could be a big part of the answer to helping them out with budgetary short falls.
Imagine just how much increase in state revenues, that the states COULD & SHOULD be getting, if the federal government (Congress) as well as state legislatures and governments would only adopt environmentally safe pro-drilling & exploration policies.
Alabama has a very small coast and is ranked only 9th in the nation when it comes to oil & gas exploration.
The state of Alabama through the excellent direction & oversight of the Alabama State Oil & Gas Board has probably the best governmental environmentally safe pro-drilling aproach & policies of any state or federal agency that I know of.
It should be a model of how government can be a positive factor in promoting and establishing environmentally safe pro-drilling/petroleum production policies & procedures in my 25 yrs experience & humble opinion as a petroleum exploration geologist.
(info from above can be found @ the Alabama State Oil & Gas Board web site & publications.)
http://www.ogb.state.al.us/gsa/petro_sys.html |
|
Could you please reach across the aisle and wake up Mr. Knollenberg and remind him he is a Republican? I saw today he voted for this incredibly bad bill. I let him know how I felt today too.
. |
|
Like this bill is going to do anything to ease the prices at the pump. Typical of our do nothing politcians. I say its time to march on Washington, gas cans in hand and demand a responsible bill to allow drilling anywhere we can. Congress fails as always. American ingenuity prevails everytime.
Move over Pelosi, we're tired of you and your obstructionism. |
|
There are allot more smarter people out there than I, but I cannot shake this nagging feeling of where did all those billions of dollars evaporate to, to cause this financial meltdown in the derivatives market?
Only 2 percent of mortgage holders are defaulting, but the other 98% of mortgage holders are dutifully paying off their mortgages.
Nancy Pelosi is asking for an investigation, yea right that is like asking the fox why chickens are disappearing from the hen house
|
|
Anytime you raise the cost of producing a product, the producers make less of it. Energy is no exception. This bill does nothing but raise the costs of energy by making it more difficult to produce more oil. The Green Movement must have a lot of money to keep the Dems in play. And as usual, RHINOS are coming to the Dems rescue.
Of course, the Dems will continue to blame the GOP. The voters are not stupid, and they can surely count the amount of money it takes to fill up. They also pay attention to who's running Congress. Obama laid out his energy plan last August and has made it known that his goal is to get us off fossil fuels within a decade. Again, the voters aren't stupid. Fossil fuels are the only game in town. Voters want solutions NOW to $4-5/ gallon gas.
Thus far McCain's mantra of "drill, drill, drill" is the only one that connects to voters who shell out $100/week in gas. |
|
I must share with you what will certainly be the death of the liberal movement. Finally!
It's a film from Europe, entitled "Coming Soon", that's floating around the Internet and beautifully illustrates the inherent dead-end facing liberal philosophy.
It's an ABSOLUTE MUST-SEE (quite entertaining as well) and as of this morning it was still available for free at http://www.comingsoon.cz.
Watch it and celebrate! And then spread the word! |
|
|
|
|
|
Peolsi says this bill will obtain energy independence in 10 years. What a joke. They won't be able to get windmills operating in 10 years.
If I were the Republicans, I would not even be present for the vote. Just let the Dems commit political suicide. |
|
This is a bad Energy Bill and everyone knows it. We, the Republicans, now must work to defeat this bad bill even though we have screamed the loudest for one. We are probably going to look bad and the Liberals will play it for all it's worth.
This is an election year and we are in the final stretch. The congressional Democratic majority is playing politics with this issue when our country desperately needs a comprehensive Energy Policy.
I hope this backfires on Nancy Pelosi and Harry Reed and the rest of the democratic congress members. Instead of doing what they were elected to do they are playing GAMES and the Folks out in the heartland will not forget or forgive.
It is imperative that we win this Election, White house & additional congressional seats as well. Our country can't afford to have the people that we elect to represent us playing games when there is so much at stake. |
|
Democrats clutter and force provisions that would render the objective unacceptable and then smile and claim they tried.
Bad faith play to the point of schadenfreude.
We need to win the White House and a majority in the Congress.
We need a Ronald Reagan victory.
|
|
|
|