Energy Independence

refinery fire2

Cap and Trade legislation is slated for a vote. US refiners may be hard hit, so multinationals such as ExxonMobil, Valero and ConocoPhillips may end up shutting domestic refining and importing gasoline with tankers. It may be posturing, I don’t know the economics, but it would seem to discourage development of cleaner domestic refining.

Today’s WSJ reports that LNG imports are to increase, because the cost of production/shipping/regasification for LNG is about $2./MCF (for Exxon), much less than the current cost of natural gas at Henry Hub.

These developments put energy independence at risk, it would seem.

The C&T bill includes a provision prohibiting over the counter trading of emission credits. This would prohibit companies from entering into direct agreements with one another, and would require trading of credits only through a commodity exchange such as the CME.

Both sides agree that higher electric bills will result, disagreeing only on the rate of increase.


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