Gail the Actuary over at The Oil Drum writes:
The oil and gas industry is already pulling back sharply. If one looks at drilling rig counts, the number of drilling rigs operating in the United States has dropped by close to 40% from peak levels in 2008. Now changes to the tax law which would make it more expensive for oil and gas companies to operate are being proposed by the Obama administration.
What is the likely outcome? I fear it is an even steeper drop in US produced oil and gas supplies than would otherwise be the case. This drop will come primarily because of the likely impact on small oil and gas companies that dominate the US production market, especially for natural gas.
I have read that Speaker Nancy Pelosi and Senate Majority Leader Harry Reid are asking that the Capitol Power Plant change from coal to natural gas for producing electricity. With the proposed tax policy, I am afraid that they will find themselves asking to switch back to coal within a few years, because sufficient natural gas will not be available. If the natural gas industry is to maintain or raise production levels, it will need assistance, not higher taxes. ...
According to recent testimony of Gary Luquette, President of Chevron North America Exploration and Production Company, the industry spent $152 billion on tax and royalty revenues paid to federal, state, and local governments. This averages about $25 billion a year. If the tax amounts to only $3.15 billion a year, this would amount to a 12% increase. Of course, it is not clear it will come to only $3.15 billion a year--it may be considerably more. ...
If the Obama Administration expects natural gas to replace some of the coal currently in use, it needs to be careful in crafting its tax legislation not to penalize the many small companies that today produce natural gas and oil. |
One aspect of Obama's plan would levy an excise tax on Gulf of Mexico oil and natural gas, which would raise $5.3 billion in revenue from 2011 to 2019. This new 13 percent tax on production in the Gulf would only affect companies not currently paying any royalties. A $4-an-acre annual fee on non-producing Gulf leases would generate $1.2 billion from 2010 to 2019.
• • • • • •
Bum fodder was much on the minds of a few Diarists this week. Specifically what the cost to the earth's forest cover is from the requirement some people have for fluffy rolls of paper in the bathroom. The Green Diary Rescue begins below and continues in the jump. Inclusion in the rescue does not necessarily indicate my agreement with a Diary.
Detroit Mark made a not-quite-poignant request in Please Don't Wipe Your Butt On My Forest ... Thank You: "Toilet paper doesn't come out the clouds and get rolled onto carboard tubes like paper cotton candy. To make rolls of tee pee fluffier, softer, you have to destroy millions of trees. And in the age of carbon footprints and out-of-control global warming, we can't afford a single avoidable molecule. Trees absorb carbon dioxide which can help to scrub the air of atmospheric 'toxins' on a massive level. Clearing out whole areas of trees for critical, honorable purposes is one thing. We have to build homes. And we can reforest. But this one is avoidable all together!"
Along the same lines there was BasharH’s Diary, Wipe Your Tush And Save Trees At The Same Time: "It's the simple choices that we make by instinct or habit that have the most subtle repercussions. How do you like your toilet paper (I refuse to call this stuff toilet tissue)? Extra soft? Right. Very fluffy? Of course. Made from recycled materials? Chances are that if you use Charmin or Quilted Northern or Cottonelle that you'd be forced to answer no."
LaFeminista also joined the chorus of bum talkers with Americans tender buttocks: "Luxury toilet paper just makes no sense and destroys large areas of virgin forest that help slow down climate change. Teaching Americans basic ecologically sound practices seems as hard as teaching them about evolution, it just does not seem to sink in."
You gotta love a guy who gets excited in his Diaries, and Mark H often does, as was the case Thursday in his Marine Life Series: The Coolest Fish on Earth: "The Pacific barreleye made my jaw drop. With large fins to help it maneuver in open water, Macropinna microstoma – it’s only about six inches long -–wouldn’t seem all that remarkable. Until you look at the transparent head. Yes, the head is completely see-through. When I first received the email notice from National Geographic last night, I thought this had to be a joke."
the Cunctator summarizes the Climaticide Throwdown: John Kerry Vs. George Will: "Sen. John F. Kerry (D-MA), chairman of the Senate Foreign Relations Committee, is the first member of Congress to weigh in on George F. Will's egregiously mendacious "global cooling" columns."
A heads-up came from Arkham42 inAll you Commuters out there? Stimulus money!!: "The Federal Economic Stimulus bill signed into law on February 17, 2009 has raised the monthly pre-tax spending limit for transit and vanpools from $120 to $230 per month."
Myrrander provided another heads-up for anybody in a window-buying mood with Tax Credit For "Energy Star" Windows Not All It Seems: "It seems that even though our window is designated by the federal government as ‘Energy Star’ rated, it will not be eligible for the tax credit. Our U-Factor (or how much UV radiation can travel through a window) is high by a factor of .01 – which means my window can block 69% of your UV radiation...but the government wants 70%. Because of this, even though our window will still be considered ‘Energy Star’ certified, it won't be eligible for the tax credit (it WAS eligible for the previous, $500 tax credit)."
greendem challenged a company’s policy in "We’re not allowed to touch this topic": "The topic is, ‘Exactly which chemicals are in the houshold cleaners you bring into your home? Are they safe or harmful to human health?’ Here's the full quote: Kate DiCarlo, a spokeswoman for Procter & Gamble, declined to comment on the suit or answer a question about how it could potentially alter the company’s ability to keep its formulations secret. ‘I’m sorry, we’re not allowed to touch this topic,’ Ms. DiCarlo said."
SeaChange declared We need a Department of the Environment now!: "Why don't we have a Department of the Environment? We have a defense department for fighting wars. We have a treasury department to handle our country's banking system and currency. And now we even have a department of homeland security to ‘protect us’ from terrorists. So why don't we have a department that protects us from what many scientists see as today's greatest threat to mankind?!?"
Jindal's little volcano problem irked thealater: "Benefits of volcano monitoring Volcanoes are destructive monsters who rend and tear the earth with fire and stone and water. And they kill wantonly with cool indifference. But they can also be planned for so that when they do erupt lives and property can be saved. Mitigation and response planning are very effective in reducing the cost of natural disasters. But we have to know about the danger. Monitoring saves lives ... period."
lawsyl wrote In defense of Maglev: "Now ‘Bobby’ Jindal is mocking ‘wasteful spending’ on volcano monitoring (please note there are 93 volcanos in Sarah Palin's home state of Alaska, one of which is fixing to blow any second and could potentially affect 34 villages, towns and cities, including Anchorage and Wasilla) and magnetic-levitation rail (or, Maglev) systems. Maglev rail is faster, quieter, smoother and more energy-efficient than conventional rail, and is already in use in Japan, China, Korea and Germany. Countries with proposed systems currently being studied include Great Britain (linking London with Glasgow), Japan (linking Tokyo with Osaka), Venezuela (linking Caracas with La Guarira), China (linking Shanghai with Hangazhou), India (linking Mumbai and Dehli), Pakistan (linking Lahore Central and Lahore Airport), Germany (linking Munich with its airport), and surprise, surprise, the United States where seven different systems are being studied, including an international line connecting my home town of Seattle with Vancouver, BC."
bigtimecynic had a different take on that subject in Actually, Beware of Maglev: "This may be an unpopular diary to those who do not read it carefully. But for those who take the time to understand my points, I think it will strike a chord of common sense. As many of you are aware, Bobby Jindal used part of his recently televised debacle to dismiss volcanic monitoring and maglev trains all in one breath. While he earned deserved derision for misunderstanding the importance of volcanic monitoring, he was actually quite correct that money spent on large maglev train projects is money not well spent."
dkistner asked us to look at our consumption habits in What are you going to buy and why? What are your criteria?: "The criteria I'm using for purchases are these: (1) Does the purchase contribute in some way to sustainability, flexibility, and resilience? (2) Does the purchase support a business I'd like to see remain viable, saving jobs? (3) Does the purchase do more to help the environment than it does to harm it? (4) Is the purchase a better investment than saving the money would be?"
Resident food-policy guru OrangeClouds115 had a sardonic laugh over the New USDA Mascot: Pinocchio: "This is so funny I couldn't even make it up if I tried. The USDA has found itself a new mascot. Pinocchio. The most famous liar ever. Now, don't get me wrong. I am on the whole very happy with the Obama administration, and I am even optimistic about the USDA. But the particular part of the USDA that Pinocchio is representing? Not so much."
raatz took A quick look at Kaua`i's sustainable-food movement: "The sad food news from the the Hawaiian Island of Kauai`i is that the world-renowned vegan restaurant Blossoming Lotus is out of business. The goods news is that the Garden Isle is home to a burgeoning sustainable-food movement, as reported in the current Maui Time Weekly."
The literal Enslavement of the American Farmer was Scaredhuman’s look at the National Animal Identification System, of which he is not, obviously, too keen.
Asinus Asinum Fricat whets our tastebuds in Cooking with AAF: Rosemary, the Mistress of Herbs: "Rosemary protects us: both in Spain and Italy, it has been considered a safeguard from witches and ‘evil influences’ generally. The Sicilians believed that young fairies, taking the form of snakes, hung around the branches, possibly to ward off unrequited love ... Native to the Mediterranean region (and Portugal), rosemary grows freely in much of southern Europe and is cultivated throughout the world, especially in the Mediterranean. It is a strongly aromatic evergreen shrub, growing to seven feet in height producing narrow, dark green, pine-like leaves and tiny, pinkish-purple, orchid-like flowers along its stems."
In a Front Page post, Contributing Editor mcjoan wrote about some mostly good news in Don't Drill, Baby. Don't Drill: "Interior Secretary Salazar has cancelled oil shale leases on a large swath of public lands in Colorado, Utah, and Wyoming. ...At the same time, Salazar launched a second round of leases that are limited to research."
tjlord also took on the oil-shale story in Oil shale and water in the west - a little detail: "First, where will the water come from. Coyote Gulch has a piece recently on Shell oil's filing for water rights on the Yampa River here. BTW, if you want to look at Colorado water issues, bookmark Coyote Gulch. Shell has filed for 375 cubic feet per second of water rights. Doesn't sound like a lot? Try it in a little different terms – how about 168,000 gallons per minute or 88.3 billion gallons per year. Still don't get it – that is a lake two square miles in surface 211 feet deep every year."
Homage to a hero: Climaticide JohnnyRook was A Siegel’s beautiful encomium to a Kossack: "The reality of the web: anyone with access to a computer and a web link can become a near universally available resource. ... For me, one of those clicks ended up with Johnny Rook's Climaticide. In a variety of blogging environments, JohnnyRook has become an increasingly powerful voice in the domain of global warming moving from science to policy to, well, impressive passion about the issues and challenges we face. What raises JohnnyRook to an even higher level, one that puts in a pantheon of heroes for me, is his personal circumstances. One might call his passion a death-bed conversion as he was already ill with terminal cancer when he begin his voyage of discovery and writing on climate-change issues."
Outer space fan Vladislaw got jazzed because of the Space Solar Power crowd betting on Obama!: "Advocates of using satellites to beam solar power from space to Earth hope U.S. President Barack Obama's campaign promise to develop alternative energy sources will help resurrect NASA's interest in the technology. NASA has been without an official space solar power program since 2002, although a coalition of government and private industry volunteers has kept alive visions of demonstrating how the United States might one day draw energy from the sun ..."
BOknows posed the question of Enviro compliance here or tax 'made/polluted there': "In threatening to oppose California's new fluorine laws by moving, the semiconductor industry becomes the latest culprit to highlight a lack of international coherence on environmental standards.’To the extent California makes it more costly, more cumbersome to operate here, you're not going to attract these facilities in the future,’ John Greenagel spokesman. You can't rob Peter Citizen to pay Paul Stockholder."
NoMoreLies gives himself a little backpat for Retooling GM's Janesville Plant for Rail...How the Blogosphere Scooped the Establishment: "Your humble diarist posted a diary on June 4, 2008, nearly 9 months ago. Did word get back to our illustrious governor? Seems like he might have picked up on my idea to retool the Janesville GM plant for rail."
harveywasserman complained about Obama's Excellent Atomic Omission: "Two lethal words went thankfully unspoken in President Obama's address to the nation this week---atomic energy. ... An increasingly desperate reactor industry just tried to sneak a $50 billion loan guarantee package into the stimulus bill. But for the third time since 2007, it got beat by a powerful national grassroots movement and key Congressional leaders. Nuke pushers now want reactors painted ‘green’ in a renewable standard Congress may soon set."
Ohio Pushes Dirty Coal as "Advanced Energy" was Ohiobama’s lament: "This story is about how Green initiatives of the Obama Administration get dirtied by big-D Development Democrats in states like Ohio and West Virginia. If bad news about Democratic politicians offends you, stop reading now."
danieljkessler took note of a Coalition Response to Pelosi-Reid Call for Switch to Natural Gas at Capitol Power Plant: "Today, Speaker of the House Nancy Pelosi and Senate Leader Harry Reid released a letter asking the Capitol Architect to switch the Capitol Power Plant from coal to 100 percent natural gas by the end of 2009. Pelosi and Reid’s call comes just three days before more than 2,500 people from across the country are coming to converge at the power plant for the biggest civil disobedience on climate issues in U.S. history. Prior to the announcement of the Capitol Climate Action, pro-coal legislators had been able to prevent the switch from coal to natural gas."
Bruce Nilles also wrote about how Coal Leaves the Capitol: "Just hours before 10,000 students are slated to descend on Washington urging Congress take strong and immediate action on global warming (Power Shift 2009), House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid have requested the Capitol Power Plant stop burning coal and instead switch to clean burning natural gas. ...As the coal burning facility remaining in Washington, D.C., the plant is a symbol of our country’s dependence on out-dated, dirty and dangerous energy sources. Sierra Club and our allies Friends of the Earth and Earthjustice, have been investigating this plant and on Wednesday had sent a letter to Congressional leaders requesting their support to end coal burning in the District. Thursday's action shows change is here in Washington. We have responsive leaders who are listening to Americans' desire for clean energy and green jobs."
people power granny challenged people to look how their behavior contributes to Raping our mountains and Ruining our fresh water!: "Everytime you plug in your computer or turn on a light switch, wash and dry your clothes or cook your food, you are contributing to our mountains being beheaded and our streams being poisoned. What, me? I'm doing no such thing! I'm just drying a load of underwear. What do you want me to do? Hang them outside?"