Beam me to Planet Gore !
Posted on 11/26/2009 5:53:55 AM PST by reaganaut1
William Klesse, chief executive of oil refiner Valero Energy, is riled up. "I think cap-and-trade is ludicrous," he says. "The whole bill is a hidden tax." The so-called climate bill wending its way through the Senate aims to create a cap-and-trade regime covering emissions of carbon dioxide and other greenhouse gases. If it passes in anything close to its current form, the bill would milk more carbon cash (payments to the government for the right to pollute) out of refiners than any other industry--somewhere between $30 billion and $110 billion a year. Valero, as America's biggest refiner (2.4 million barrels a day), would pay on the order of $7 billion a year.
The numbers are massive because the bill would hit refiners twice. First they would have to pay for allocations covering the carbon emissions from their factories (roughly 5% of total U.S. emissions). Then they would also be responsible for the tailpipe emissions from the combustion of all the automotive fuels they sell (roughly 40% of U.S. emissions). Klesse, 62, moans that politicians are "picking winners and losers" in figuring emissions allocations.
One problem with this analysis: It's motorists who will pay, as refiners simply tack carbon costs onto the price of gasoline. Valero Energy admits as much: Placards posted atop each pump at Valero's 5,800 branded gas stations feature the iconic illustration of a finger-pointing Uncle Sam and the words, "You will pay the price." The sign says that cap-and-trade "will cost you 77 cents or more a gallon."
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In five years the U.S. will have the plants to produce some 70 million more gallons of fuel a day than it needs, figures Deutsche Bank's Paul Sankey. Under cap-and-trade that extra fuel wouldn't be exported because it couldn't compete with new refineries, unburdened with carbon regulations
(Excerpt) Read more at forbes.com ...
GW is a scam, no doubt about it. We have spent ourselves into a hole, so the politicians need to get creative to raise more case. GW is a textbook example of this creativity. And, of course, there will be plenty to skim off the top for politicians, burearcrats, and corporations. So many people have bought into this that it will be impossible to stop, evidence be damned. While becoming energy efficient is a good thing, we surely can find a way to do that without this massive scam.
Barry said he would bankrupt American coal companies. Add American oil companies to the list.
Probably why Valero is shutting down its Delaware refinery and canning about 550 jobs. (Hear that PLUGS?) Sunoco also is closing a refinery outside Philadelphia.
I recomend everyone follow the link and read the whole story.
it spells out how cap & trade will destroy the US refining industry and the impact on fuel costs.
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