Carbon Trading May Dwarf That of Crude Oil

CNBC.COM ^ | Sept.ember 29, 2009

[Wolfie]

Carbon Trading May Dwarf That of Crude Oil

If carbon cap-and-trade becomes a reality, get ready for a potential multi-trillion dollar commodities market that could sprout up quickly, but not without growing pains.

“I’m estimating carbon markets could be worth $2 trillion in transaction value – money changing hands – within five years of trading (starting),” says Bart Chilton, a Commodity Futures Trading Commission (CFTC) commissioner, who's also chairman of its energy and environmental markets advisory committee. “That would make it the largest physically traded commodity in the US, surpassing even oil.”

Chilton's estimate is based on futures activity in commodities. “It’s a fairly reasonable to estimate 10 times the expected cash market,” he says, pointing to a multimillion dollar voluntary carbon market in the US in 2008.

That could mean a carbon emissions market of 60 to 180 million contracts. By comparison, 135 million contracts of light sweet crude oil, 39 million contracts of natural gas and 53 million of all metals were traded on the Nymex in 2008.

“It’s very exciting, the opportunities are really unbounded,” he says. “We’re going to see innovation and really fast and furious growth. The potential for this market is truly impressive.”

US carbon markets are just getting started.

[Wolfie]

Man, are we screwed.

[DonaldC]

Fools and their money....

[steelyourfaith]

 

Beam me to Planet Gore !

[scottdeus12]

Holy crap.

An entire market based on a lie.

Astounding.

[Paladin2]

Uh, isn’t there a considerable amount of Carbon in crude oil?

[Wolfie]

Not all are fools. Look at the latest financial meltdown. The smart people walked away with millions in profit from financial instruments worth less than dirt. And the same players are already positioned in the carbon market.

[Parley Baer]

“money changing hands”

With no goods or services being exchanged. What a scam. Only thing being exhanged is BS.

[Wolfie]

“An entire market based on a lie” is SOP at this point.

[SueRae]

Funny how they seem to have all the mechanisms in place, such as trading platforms, valuations, size and scope...when NO LEGISLATION HAS EVEN BEEN PASSED!!!

Looks like a lot of crooks have been burning serious midnight oil to stand up the house of cards shamof a Ponzi scheme.

Ya hear me Al GOre, Jeff Immelt!!!

[kabar]

Tulips are next.

[Bitsy]

Gore is going to make a fortune (I guess he is crazy like a fox), Pelosi I am sure has hands in it some place. Yep, lots of money to be made on a new frontier - even if it is the biggest hoax ever perpetrated.

[ThePatriotsFlag]

Nah, set up a lemonade stand right beside them. Print up a bunch of shares for the Golden Gate bridge ... you'll make a killing. I'd rather have part of a bridge than a bucket of oil, so will the libs showing up to buy the “totally fake” carbon credit. At least you can show them a picture of the bridge. Sales will go through the roof with such a bunch of dummies showing up to buy carbon credits. /sarc (For Sun City Residents)

[goodnesswins]

Yeah...can you say PONZI?

[remaxagnt]

thats the reason goldman sachs was the number one lobbyist for cap trade on capital hill

[Kakaze]

Why do you think , Lugar farms, Senator Dick Lugar ( of Indiana ) planted 603 acres of Black Walnut trees , then registered them on the Chicago Climate exchange........he will vote his family a commodity and make a fortune!

[Tarpon]

Sun prime carbon scam

[rbg81]

Exactly. Even the fools trading tulips were (at least) trading something physical.

[a fool in paradise]

PONZI SCHEME.

[MainFrame65]

If it does, it will be a resurrection of the Dutch “tulip mania” of 1634-1637. It was a game of “musical money,” played with valueless tokens instead of chairs.

[WVKayaker]

Fools and their money....

Fools and OUR money....