Quantcast

Boon or Boondoggle? What say you?

Chico 2009/05/29 13:47:47
You!
Add Photos & Videos
Cap and Trade Legislation
What Carbon Regulation Means for Energy Investors
By Nick Hodge
Wednesday, February 25th, 2009

"It begins with energy."

That's how Obama introduced his budget last night in an address to a joint session of Congress. And where the Federal dollars go, so should your portfolio.

The hour-long address was rife with references to energy, each of which could have profitable investment implications.

As he trumpeted during the campaign, renewable energy seems to be a large part of his plan. "We know the country that harnesses the power of clean, renewable energy will lead the 21st century," he said.

In fact, the only two times he mentioned oil was to tell us our future as a nation depends on using less of it:

We have known for decades that our survival depends on finding new sources of energy. Yet we import more oil today than ever before.

The only way this century will be another American century is if we confront at last the price of our dependence on oil. . .

That confrontation could prove very profitable for energy investors.

But it's not just his planned battle against oil dependence that will spur profits, he's also declared war on rising carbon emissions. And we all know that wars are profitable.

Calling for Carbon Caps

Other than mandating its use, capping carbon emissions is the next best thing to spur wide scale adoption of renewable energy. A cap-and-trade program instantly makes carbon a liability, thereby driving up the cost of burning fossil fuels to generate electricity or using carbon-intensive boilers to power energy-hungry industrial processes.

What that means is renewable energy instantly become more competitive, if not advantageous.

A utility is much more likely to build a wind or solar farm than construct a new coal plant if they know the coal plant comes with exorbitant lifetime carbon costs.

Remember this Obama quote from January a year ago? "So, if somebody wants to build a coal plant, they can - it's just that it will bankrupt them, because they are going to be charged a huge sum for all that greenhouse gas that's being emitted."

The industrial sector, too, would be more apt to cover their roofs with solar rather than use soon-to-be costly boilers and generators.

The idea here is to make renewables cost-competitive with traditional resources in an attempt to spur demand for clean energy and set us on a sustainable trajectory both economically and ecologically.

For investors, it means having to switch investment strategies to adapt to the changing dynamic of the energy market as we know it. It's a transition that, if understood and acted on, can make smart investors a lot of money.

Here's what the president asked for last night:

But to truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy. So I ask this Congress to send me legislation that places a market- based cap on carbon pollution and drives the production of more renewable energy in America. And to support that innovation, we will invest fifteen billion dollars a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America.

He's telling you the industries that are about to receive direct federal investment, and a de facto competitive advantage. Long-term winners are being created, all you have to do is place your bet and wait. Recently sagging stock prices should present the perfect opportunity to do that.
Add a comment above

Top Opinion

  • oldschoollenny "traditional... 2009/05/29 14:05:04
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    oldschoollenny "traditional values"American Patriot
    +8
    dont have enough space here to show my opinion or how I feel about this admin attempt to destroy this country if not the world

Sort By
  • Most Raves
  • Least Raves
  • Oldest
  • Newest
Opinions

  • Alleycat 2009/06/03 01:50:52
    Boondoggle! This legislation will double energy prices and all prices!
    Alleycat
    A tax increase shrouded in the cloak of global warming...

    What a scam...
  • madjack 2009/05/30 02:56:09
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    madjack
    +1
    Wait 'til the cost of turbine upkeep gets known.Yeah wind power,what a bargain.
  • Chico madjack 2009/05/30 03:22:14
    Chico
    +1
    Jack buddy -- you just have too much sense

    If I didn't know better I'd say you been around the block, ese! LOL!

    I helped run a wind energy co. for awhile until I realized what a sham it was (constructing phony turbines for Annual Report pics in certain areas as backdrop to begging Govt for more tax subsidies as the power was undependable and "bumping the grid" was just not that effective at the times when needed) and I helped them go "junk bond" (Drexel Burnham for $60 mil - big money back then) and then got out.

    When I saw what the "big guys" were taking out over the years of that tax sham to their accounts I got out! Poste Haste!

    Before he died my Daddy told me (and for all his faults he was a smart man) "son, when they start having you sign the Docs, its time to head for the Docks.....get out!"

    They did. And I did!

    T Boone Pickens aside, wind is mostly a sham. It may end being part of the solution, but a small part. The biggest part the "green weanies" have cut out of the picture (viz Cap & Trade)..And that is O&G-->OCS, ANWR, CONUS, etc. Also Bakken etc.....

    and Nuclear........... the Libs will just talk about that.....but they still listen to Michael Douglas about it (China Syndrome)....... We are dealing with complete idiots Jack.....the Libs are so damn stupid they thin CH4 is a non-fossil fuel (Nan Pelosi on MTP)
  • madjack Chico 2009/05/30 03:49:25
    madjack
    +1
    Your Dad had sound advise Chico.It did seem do-able at the time.though I just read about all the gas in the Chukchi Sea.1.6 trillion cu.ft. along with all the activity in Wyo.now,add Bakken and we don't have a problem at all.I knew an old engineer who had worked with Rickover on atomic power.He advocated smaller plants vs.the big ones we have today.He explained in event of an emergency,a local fire dept.could handle it with little extra equipment.Better for security as well with them dispersed.During the Clinton Admin.Argonne National Lab,not far from here,found a way to neutralize spent fuel rods.When asked how they could be handled safely,the engineers said,you could wear gloves if you want.Funding for the project was terminated.I think there's a skunk in the wood pile.
  • Mrs. V 2009/05/30 02:47:37
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    Mrs. V
    +2
    Being in the Oil Business, I can say it'll be worse than the Windfall Profits Tax of the late 70's early 80's.
  • Chico Mrs. V 2009/05/30 03:24:54
    Chico
    +1
    Mrs V -- you got it -- far far worse!

    WPT was an exploration killer, as you know

    But trying to explain that to a lib? I might as well go out and talk to my wpt exploration killer explain lib talk
  • Mrs. V Chico 2009/05/30 03:36:13
    Mrs. V
    They look pretty reasonable to me. They probably listen better. I don't think the Libs are serious about energy independence at all. In the State of New York, multiple Oil companies are wanting to tap into the Marcellus Shale which is a huge horizontal gas field under NY, Penns and all that area. But hell no, we don't want to dirty our state with that oil stuff. Lawyers have talked landowners into forming consortiums which will benefit, you guess it, the lawyers. It is ridiculous.
  • driley 2009/05/29 19:03:04
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    driley
    +1
    What is it going to take for the president and congress to square their thinking with reality?!

    Something less then the total collapse of life as we know it -I hope. Let's say their little experiment is worth trying. (Try and imagine for a minute.) Still not a good idea at a time like this for pete sake! Let the ecomomy recover first then maybe we can absorb the shock a little better.
  • kitkat 2009/05/29 17:14:50
    Boondoggle! This legislation will double energy prices and all prices!
    kitkat
    Another way to punish American tax payers. Bottom line, it will cost us all BIG time if it goes through. Obama is all about sending the middle class to poverty level.
  • Mrs. V kitkat 2009/05/30 03:37:09
    Mrs. V
    +1
    That is his goal. What he is after is domination, not recovery.
  • kitkat Mrs. V 2009/05/30 04:26:55
    kitkat
    You are right
  • brianm_33 2009/05/29 16:13:56
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    brianm_33
    The truth behing cap and trade. boondoggle squared economy killer truth behing cap trade
  • Mrs. V brianm_33 2009/05/30 03:37:39
    Mrs. V
    The name ALGORE comes to mind.
  • bonehead15329 2009/05/29 15:39:18
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    bonehead15329
    +1
    Let me get this straight. Green energy is too expensive -- so let's jack up the price of ALL energy so green energy can be more "competitive?" How idiotic.

    In my opinion the supposed link between carbon emissions and global warming is a big hoax. Still, it's important to become less dependent on foreign oil, and "green" energy sources have a potential to help clean up the environment. That's all cool.

    So how about if the government would offer some kind of incentive -- tax breaks, rebates, etc. -- to encourage companies and individuals to convert to green energy sources? How about if the government would offer incentives or rewards for technological advances, WITHOUT penalizing everyone, so that we could become a cleaner, greener society over the next 10 years or so? How about if they let us drill our own oil and gas in the meantime? How about investing in nuclear power plants? These ideas make a lot more sense to me.

    If you think solar and wind can replace oil, coal, and gas, you must have your head in the clouds. Using less oil etc. would be really nice. So let's work toward that goal without making stupid moves that will bring our country to a standstill.

    If you drive up the cost of energy, you will drastically drive up the cost of EVERYTHING. It will end up being to...'''

    '
    Let me get this straight. Green energy is too expensive -- so let's jack up the price of ALL energy so green energy can be more "competitive?" How idiotic.

    In my opinion the supposed link between carbon emissions and global warming is a big hoax. Still, it's important to become less dependent on foreign oil, and "green" energy sources have a potential to help clean up the environment. That's all cool.

    So how about if the government would offer some kind of incentive -- tax breaks, rebates, etc. -- to encourage companies and individuals to convert to green energy sources? How about if the government would offer incentives or rewards for technological advances, WITHOUT penalizing everyone, so that we could become a cleaner, greener society over the next 10 years or so? How about if they let us drill our own oil and gas in the meantime? How about investing in nuclear power plants? These ideas make a lot more sense to me.

    If you think solar and wind can replace oil, coal, and gas, you must have your head in the clouds. Using less oil etc. would be really nice. So let's work toward that goal without making stupid moves that will bring our country to a standstill.

    If you drive up the cost of energy, you will drastically drive up the cost of EVERYTHING. It will end up being too expensive to do business in the USA. Less business means less jobs. No job, and you can't afford $5 -$10 per gallon gas to drive to the grocery store. But it won't make much difference anyway if there are no trucks delivering the food to the stores. Obama's plan is a recipe for another Great Depression.

    I'm planting a bigger garden this year, and thinking about buying a bicylce while I can still afford one...
    (more)
  • cindyp 2009/05/29 14:56:59
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    cindyp
    +3
    Sorry but this is one of the biggest Obama lies out there....Coming at the worst time possible...Do you people know how much taxpayers will pay for this?
    This is not a libs verse convs.problem this will effect every last one of us forever.
    Just part of the bigger take over plan...WAKE UP!
  • TisMe 2009/05/29 14:45:02 (edited)
    Boondoggle! This legislation will double energy prices and all prices!
    TisMe
    +4
    Only thing 'green' about it is the money going in Gore's & the likes' pockets!

    ********************
    IN THE NEWS: "Charges Against 'New Black Panthers' Dropped by Obama Justice Dept. Three men were accused of trying to threaten voters and block poll and campaign workers by the threat of force -- one even brandishing what prosecutors call a deadly weapon."

    Members of the New Black Panthers attend a rally outside the Lamar County Courthouse in Paris, Texas November 17, 2008. SEE STORY HERE @ http://www.foxnews.com/politi...

    courthouse paris texas november 17 2008 story httpwww foxnews compoliti
    (I warned you guys.)
  • Chico TisMe 2009/05/29 14:57:36 (edited)
    Chico
    +4
    But Tis, won't this "hep" the downtrodden? Black man for one?

    You can't mean {gasp} that there might just be an anti-capitalism, control-oriented ring to all this can you? Possibly?

    Come on now girl.......... We SHOULD pay higher prices for our energy. Its only right!

    We will consume less...........too much "consumin" goin' on doncha see? Doncha?

    All that carnsarn Consumin' goin' ohhnn......... prices energy consume consumin goin doncha doncha consumin goin ohhnn
  • TisMe Chico 2009/05/29 16:30:18 (edited)
    TisMe
    +2
    HAAHAHAHAHAHA ... Chico, it's getting ugly out here with these secret cults. If it weren't for sources of news, I swear, we'd never find out anything. I'm trying to reach as many people as I can (and it ain't easy with some thinking 'What a weirdo!")
    chico secret cults sources news swear reach people thinking weirdo
  • Chico TisMe 2009/05/29 15:02:44
    Chico
    +2
    BTW -- good morning to you Ms Tis -- btw ms tis
  • TisMe Chico 2009/05/29 16:30:53
  • J 2009/05/29 14:33:32
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    J
    +4
    Aren't our elected officials supposed to be smart. We have been putting in more and more idiots in the past 50 years than I thought the US even had. And when you do have a Congressman or Senator who does think, they are so beaten up by the media it's unreal.

    But, we all know that the best way for the government to control the people is to make them dependent on the government. When they take our means of making a living and being able to support ourselves, they have us. That's where they are going.
  • gr8punkin 2009/05/29 14:32:23
    Boondoggle! This legislation will double energy prices and all prices!
    gr8punkin
    +4
    The stupidest part of this whole thing is, if he were serious about clean usefull energy he would talk about the only source of clean abundant energy that we have available to us. Nuclear, wind is a great novelety, Solar may someday make sense instead of cents. But the fact remains that nuclear is the only source known to man to have all the requirements he wants, without killing our enconomy.

    But then again Obie cares more about Pundits than citizens.
  • bonehea... gr8punkin 2009/05/29 15:42:45
    bonehead15329
    +2
    Right on about nuclear. Just gave you a rave, wish I could give you 10.
  • Red Lizzard 2009/05/29 14:31:39
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    Red Lizzard
    +4
    Tis all a pile of poo.
    Clean coal is a pile of poo.
    Tis all a scam to raise taxes pile of poo.

    I am being nice and keeping my answer to a minimal, but I think you see where my opinion lies.
  • Mike 2009/05/29 14:28:30
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    Mike
    +7
    I don't suport cap-and-trade bill......this will be another expense for businesses and further slow the economy

    Another obama liberal program that will hurt this country....that is his plan.......this will not help so called global warming,it is just a revenue generator for big government. liberal program hurt country plan global warmingit revenue generator government
  • hook 2009/05/29 14:16:09
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    hook
    +5
    this carbon tax shit is just a big scam to line there pockets,i dont know if i want to have a kaniptien or hissy fit , i watched my wife and i think there both the same???
  • oldschoollenny "traditional... 2009/05/29 14:05:04
    Boondoggle Squared! This will be an economy killer! At the worst possible time!
    oldschoollenny "traditional values"American Patriot
    +8
    dont have enough space here to show my opinion or how I feel about this admin attempt to destroy this country if not the world
  • corrinne 2009/05/29 13:54:44
    Undecided
    corrinne
    +1
    I'm not quite sure, but removing our dependence on foreign oil as well as curbing carbon emissions sounds like a pretty good idea...will have to look into this some more. :/
  • Chico 2009/05/29 13:50:22
    Boondoggle! This legislation will double energy prices and all prices!
    Chico
    +7
    Congressional Democrats have launched a campaign to pass climate-change legislation in Washington on Earth Day, but some Democrats are unconvinced and the draft bill faces strong opposition from Republicans.
    This week, the House Energy and Commerce Committee is holding three days of hearings where they will hear testimony from fifty-four witnesses on the cap-and-trade draft bill introduced by committee Chairman Henry Waxman and Energy Subcommittee Chairman Ed Markey (D-Mass.).

    The principle behind a cap-and-trade system is that it would limit carbon and global warming emissions for companies and utilities. Companies that bring their emissions below the established limit would be able to sell or trade carbon allowances to other companies so that those companies could produce more carbon than the legally established limit.

    Democrats argue that implementing a cap-and-trade system would cut the 2005 levels of carbon dioxide emissions, which are suspected to cause global warming, by 20% by the year 2020, and would use money raised from auctioned carbon allowances to support other government programs.

    “Left unabated, global warming and our dependence on oil will jeopardize America’s national security and will increase our economic risk,” said Rep. Markey. “We cannot wish away the...

    "

    "'"""







    Congressional Democrats have launched a campaign to pass climate-change legislation in Washington on Earth Day, but some Democrats are unconvinced and the draft bill faces strong opposition from Republicans.
    This week, the House Energy and Commerce Committee is holding three days of hearings where they will hear testimony from fifty-four witnesses on the cap-and-trade draft bill introduced by committee Chairman Henry Waxman and Energy Subcommittee Chairman Ed Markey (D-Mass.).

    The principle behind a cap-and-trade system is that it would limit carbon and global warming emissions for companies and utilities. Companies that bring their emissions below the established limit would be able to sell or trade carbon allowances to other companies so that those companies could produce more carbon than the legally established limit.

    Democrats argue that implementing a cap-and-trade system would cut the 2005 levels of carbon dioxide emissions, which are suspected to cause global warming, by 20% by the year 2020, and would use money raised from auctioned carbon allowances to support other government programs.

    “Left unabated, global warming and our dependence on oil will jeopardize America’s national security and will increase our economic risk,” said Rep. Markey. “We cannot wish away these problems.”

    Some Republicans argue that implementing such a system will slow the economy further and will lead to higher energy prices. Senator John McCain (R-Ariz.) said he supports cap-and-trade but disagrees with the Democratic-sponsored legislation, calling it "irresponsible, ill-conceived and distorted.”

    "The president's proposal of auctioning 100 percent of the carbon credits is bad economic policy that would cost businesses billions of dollars and allow for little-to-no transition into a low carbon system," McCain said, Tuesday. "I am a supporter of a strong cap-and-trade system, but I will not and cannot align myself with a giant government slush fund that will further burden our businesses and consumer."

    Democrats argue auctioning carbon credits would create funds that could be used to provide rebates for industries that are vulnerable to international competition and have suggested the funds could also be used to provide more middle class tax cuts.

    McCain believes a more gradual approach should be taken that would “accommodate the transition costs and allow businesses to stay open and prevent drastic increases in utility rates for customers.”

    Additionally, many Democrats would like to see key alterations made to the bill. For instance, John Dingell (D-Mich.), would like to see a provision increasing loans to auto makers to develop more efficient vehicles.

    All 23 of the Republicans on the House Energy and Commerce Committee have requested additional hearings for the bill, arguing that the legislation lacks detail and that the cost to consumers and businesses is uncertain. Democrats have denied the Republicans’ appeal.
    (more)

See Votes by State

The map above displays the winning answer by region.

News & Politics

2014/07/29 16:55:57

Hot Questions on SodaHead
More Hot Questions

More Community More Originals