Posted on 01/07/2022 5:41:38 AM PST by Kaslin
Inflation continues to skyrocket nationwide, biting into the slight wage gains American workers have experienced so far this year. Prices for food, energy, and other essentials have all surged since the enactment of President Biden’s $1.9 trillion stimulus bill earlier this year. Unfortunately, it doesn’t look like these price increases are on pace to subside anytime soon. It’s possible inflation could even get worse, particularly as it relates to energy prices, if congressional Democrats get their way and enact their multi-trillion dollar reconciliation bill. Although the details of their bill change on a near daily basis, one thing remains constant: the plan would hurt American energy producers and raise prices on consumers.
Consumers in all parts of the country are familiar with the concerning state of American energy prices. Gas prices are at an average of $3.42 per gallon (more than 50 percent higher than a year ago), natural gas is up to $5.63 per MMBtu (more than double where prices were at the beginning of the year), and home heating prices climbed to $3.39 per gallon (also up by 50 percent from a year ago). For so many struggling families, higher prices can mean making tough choices when it comes to basic needs like paying utility bills or putting food on the table.
Unfortunately, resident Biden has largely ignored this issue and has implemented policies that have contributed to this backdoor tax on Americans. On his very first day in office, Biden terminated the Keystone XL pipeline, killing 11,000 middle class jobs. He also suspended oil and natural gas leases in Alaska. While Biden’s progressive base may like his apparent hostility toward the fossil fuel industry, he is turning a blind eye toward the costs to American consumers.
Democratic lawmakers seem to want to double down on resident Biden’s failed energy strategy. Their massive “Build Back Better” Act (BBB) would add additional burdens onto American energy producers through punitive regulations, fees, and unfavorable tax changes that will increase their cost of doing business. Higher taxes and fees and other government-imposed burdens will increase the cost all consumers pay.
Of the many dubious provisions, Democrats have proposed to increase the royalty fee on production from federally owned onshore lands from 12.5 to 18.75 percent on newly issued leases. They also have proposed higher inspection fees, a new “expression of interest fee,” a new “resource” fee, leasing fees, severance tax fee, and increased rent rates for producers that use federal land. On top of that, the House has included a “methane fee” that directly targets the natural gas industry.
Lawmakers are also considering measures that would repeal century-old provisions in the law that allow energy producers to fully recover the costs of their operations, just like companies in other sectors of the economy. This provision is not a loophole or subsidy, as some lawmakers claim, but instead ensures that the costs of doing business in the energy sector are accurately reflected and recovered on American companies’ tax bills.
The pile-on doesn’t end there: BBB includes other non-tax and fee provisions that would put upward pressure on energy costs. Some provisions would limit access for energy production in certain areas of the country, like in the Arctic National Wildlife Refuge and offshore. Whereas there are higher minimum bid requirements on federally owned land and significantly tighten the time of lease terms. The consequences of these policies would hurt jobs in local communities and artificially restrict supply.
Most of these changes are done under the guise of curbing carbon emissions in order to stem the impacts of climate change. But before Congress passes new punitive measures on American energy producers, lawmakers must consider the economic impacts of these provisions and how they would affect inflation, jobs, and the bottom line for American-based energy producers. We all want to do our part to reduce emissions - and the country has indeed done so - but Congress shouldn’t rush to action before we know all the implications of drastic policy changes, both intended and unintended. And right now as the country’s employers and consumers dig out from the pandemic, now isn’t the time to whack Americans with misguided tax, fee, and regulatory burdens. Let’s hope lawmakers heed these changes before their reconciliation bill reaches the president’s desk.
From a climate perspective, this is a great time to be alive. We should enjoy it for the remaining 200 or so years it lasts until we go into another cooling period (like the Little Ice Age or the Dark Age).
The bad news is the painful higher prices. The good news is by the Fall we can pin this wicked policy on the Rats. The only caveat is that the Republicants probably won’t pick up the ball and run with it.
WTI is sitting at just over 80 bucks as I type.
Nobody is more bullish on oil and gas than Joe Biden.
Yep, the Permian Basin is starting to hum again. Thanks Brandon!
Obsolete article
The author is wasting ink on a dead topic
Yep drilling is picking up and the Fracing is catching up.
This likelihood of rising energy costs was a big driver of why we added solar power onto our home.
1. It works REALLY WELL for us, covering the vast majority of our consumption.
2. If you don’t have it, and only want to rant against it, I am not going to listen to you. Of course it only generates power during sunshine, generates less in winter and on cloudy days. I never would have guessed. j/k
3. We have now placed our family in a position to generate ~75% of the power we need at a flat rate for the rest of our lives. If push came to shove, we could reduce our consumption substantially by changing our lifestyle, and probably cover 90% of our usage. We didn’t want to be 75 years old looking at a $600/mo electric bill.
4. We have a battery on the system so (a) it’ll work when the grid is down, and (b) glory be it runs our house at night, every night.
5. We got a great deal from the seller and also enjoyed the 26% ITC (aka Federal subsidy) so it saves us real dollars every year, from day one. Don’t b!tch about the subsidies if you claim exemptions on your 1040. It just so happens it amounted to a really big exemption for us (as a tax credit). The house is paid for, the kids are grown, so our Schedule A is pretty barren. This helped A LOT.
6. As I have written before, I enjoyed a career in or on the edges of cybersecurity, predominately with Fed Gov as my customer. From that experience AND following the articles and forums of Jonathan Hollerman (griddownconsulting.com)et alia I have little faith in the survive-ability of the US power grid from either cyber or kinetic attacks. So we took steps to ensure we have power, and it’s SILENT power. You can too, or you can b!tch from the sidelines about how solar power is a waste and stupid. When you put solar on your OWN HOME, you now OWN the power you produce and the ability to produce it. (we went the Generac route on the prior house and while 100% functional it turned out to be pricey [seldom used/ poor payback] and even though well-muffled, it was quite audible when running (no OPSEC). When your utility puts in solar fields, it only ‘helps’ them and benefits you nothing. So rightfully gripe about utility-scale solar, but I can tell you from personal experience that a well-designed, well-researched residential solar system works really well for the homeowner.
I welcome your reasoned replies, especially given the certain increases in energy costs we all face ... as we age.
Historically, energy prices in the US have increased 5% per year for the last 10 years, including the Trump years.
While your utility *may* brag about their cost per kWh, look CAREFULLY at your bill for other charges. Their costs of operation are never going down - Genco, Transco or Distco - it costs more and more every year to operate and maintain the generation, transmission and distribution of electricity.
AND ... the State wants you tethered to their electricity, or else.
Prediction: fossil fuels, including the wood for your fireplace/woodstove and the charcoal/propane for your smoker will be ruled illegal or rendered prohibitively expensive. So they’ll have their BBQs on Martha’s Vineyard and eat gas flame-grilled steaks in Georgetwon. But not us little people.
I have looked into this, but the only company working my area won’t give me a system installation price that is stand alone. They want to “install for free” and roll all the costs back into a loan paid out over 20 years at an unspecified interest rate. The power I generate would be “free” but I still have to pay back the loan, so really I don’t know what the true cost is. More competition in this business area might help, but it seems like so many other big business (airline routes, internet providers, power companies) there are local monopolies.
The Ice Age was supposed to have begun in the 1970s. 12-15 years of hype turned out to be-—nothing.
NOT ‘COULD”
WILL
Did they take away our tax cuts yet, as democrats promised to do?
I always thought the same thing when as the governor of NY State Cuomo banned FRACKING for Natural gas in NYS.
The Utilities that already owned natural gas had no incentive for their prices to go lower. There are capped gas wells all over SW NYS. I personally know two of my cousins who have capped wells on their dairy farms. The only gas coming out of those wells is the small amount that they use on their farm.
The main problem I have with the global warming hype is that we're supposed to ignore the historical facts of prior warming periods that are just like this one (and by contrast how much better life is during the warm periods than the historical cool periods).
Well if it is modern global warming you want look no farther than the Rachel Carson book THE SEA AROUND US and the 1953 movie by the same name. She also wrote SILENT SPRING witch destroyed the DDT industry.
A quote from the movie..
Commentator: “It has been established beyond all reasonable doubt that the great Arctic change of climates started somewhere about 1900 and has spread so rapidly that small glaciers have already disappeared, and the big ones are melting at a startling rate.”
They’re going to go higher regardless of whether they pass the bill or not
I have 5 acres of woods so I have plenty of fuel
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