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A different kind of excise tax
In a recent AP article, a senior executive for a national energy industry organization was quoted saying about the state of Wyoming, “it is very disturbing to hear that one of the great states for resources wants to tax the industry and discourage the development of jobs in their state.” We hear a lot about excise tax issues as they relate to natural gas production, most recently in the ongoing discussion in Pennsylvania.
But that quote does not come from a natural gas production group. It comes from Denise Bode, the CEO of the American Wind Energy Association. But to be frank, we are not surprised that Ms. Bode is taking on this issue as she is a long history of supporting the oil and natural gas industry.
As it turns out, Wyoming, a state with impressive wind energy potential, is considering taxing wind generation. The proposal would place a three dollar excise tax on each MWh of commercial wind power generated in the state. Granted, comparing fossil fuel excise taxes and the Wyoming wind proposal is not straightforward given significant differences in each industry, but in the abstract these taxes are similar in that they both require a producer of an energy resource to pay a tax that reflects the impact the legislature believes the production has on the community (whether that impact be environmental, associated with water resources or other land use, aesthetics, etc.).
Wyoming is a major fossil fuel producer (and the second largest producer of natural gas, after Texas, by gross withdrawals in the onshore lower 48 in 2007), so you could certainly debate the motives behind the proposal. Nonetheless, it will be interesting to see if the continued growth in wind generation nationally leads to similar calls for excise taxes in other states, and, if it does, how those taxes will affect the economics of wind generation.
Natural Gas Market Indicators
Record amounts of snow in the mid-Atlantic and periodic cold temperatures in many regions of the country have not been able to shake-off the relative strength of U.S. natural gas supply this winter heating season. Henry Hub cash and futures prices remain stable in a $5.30-6.00 per MMBtu range and seem to be rational in a market still sporting high levels of working gas in underground storage, firm daily production and demonstrated flexibility from Canadian and LNG sources.
To some waiting for a domestic production fall, it remains remarkable that rig operations in the United States are on the increase again and that the majority are clearly targeted to sustain and grow more natural gas production capability in the country.
Visit this link to download the full Natural Gas Market Indicator. Topics covered include: Reported Prices, Weather, Working Gas in Underground Storage, Natural Gas Production, Rig Counts, Pipeline Imports and Exports, and LNG Markets.
Hackers Steal Millions in Carbon Credits
There’s a lot of debate about cap and trade here in the States. The debate makes for interesting reading. There are a number of different scenarios and ideas surrounding the whole cap and trade concept. One concept I hadn’t considered, and maybe I should, is theft. Not sure what I mean?
Give this article at Wired a quick read. Basically a group of hackers launched a phishing campaign against employees of some companies in Europe, New Zealand and Japan. Phishing is when a hacker sends an email to someone directing them to a fake Web site trying to get the person to enter in sensitive information like their password. The site captures the information and the hacker can use it later to access the account.
In this case, the emails appeared to come from the German Emissions Trading Authority that records carbon credits and transactions. The employees were told that their companies needed to re-register their accounts with the Authority and were directed to a fake Web site to enter the information.
According to an estimate from the BBC, the hackers stole 250,000 carbon credit permits from six companies worth more than $4 million. At least seven out of 2,000 German firms that were targeted in the phishing attack fell for it, including one firm that lost $2.1 million in credits in the fraud.
The buyers of the credits have not been named and the German Emissions Trading Authority has suspended access to its databases while an investigation is underway.
Has anyone else heard any stories like these?
True Blue Natural Gas Blog from the American Gas Association (AGA)- Sen. Murkowski, Energy Leaders Point to Natural Gas as Large Piece of the Climate Change Puzzle
- Diversification of natural gas supply is an essential consumer protection
- From Austin to Boston in a natural gas vehicle
- Natural gas, how about zero carbon emissions
- The real natural gas message in a climate crunch
- Let’s work together to protect our seniors
- Natural Gas Market Indicators
- Coming Down To Earth on a ‘Clean Energy’ Standard?
- The convenience of the natural gas fireplace
- Coming Down To Earth, A Winning Strategy For Renewables
