Obama’s Energy Budget: More Taxes, Higher Prices

Here is the interesting policy of President Barack Obama on Energy Budget. The more complete article is as follows:

President Obama recently released his budget blueprint, “The New Era of Responsibility,” which outlines his spending plans for Fiscal Year 2010 and beyond.[1] Aside from providing general levels of federal spending, the blueprint foreshadows much of the President’s policy agenda. The budgets for the Department of Energy (DOE), the Department of the Interior (DOI), and the Environmental Protection Agency (EPA) reveal that the President has a costly and economically harmful vision for energy policy.

While the DOE and EPA both get budget increases, the DOI’s budget is reduced. The budget top-lines, however, are not the story: The real issue is how the money is spent and the policy implications thereof. Despite President Obama’s rhetoric about advancing the interests of America’s middle class, his policies will cost Americans more money, limit their access to America’s energy resources, and provide little, if any, environmental benefit.

The Environmental Protection Agency

The EPA’s budget has averaged $7.6 billion over the past three years, and it will increase slightly to $7.8 billion for 2009, but President Obama plans to increase it significantly to $10.5 billion in 2010.[2] The budget is being increased for policy goals that are disturbing, including a cap-and-trade program and an expansion of Superfund.

Sets the Stage for Cap-and-Trade. By far, the most onerous element of President Obama’s budget is that it would institute his CO2 cap-and-trade proposal to reduce carbon emissions 14 percent below 2005 levels by 2020 and approximately 83 percent below 2005 levels by 2050.[3] The program would auction 100 percent of available carbon emission credits and use the revenue to fund other aspects of his budget.

While the budget blueprint euphemistically refers to this money as “climate revenue,” in reality it is an energy tax that would force consumers to pay higher energy prices. In the blueprint, $646 billion of revenue would be generated through a cap-and-trade plan from 2012 through 2019, but many have suggested these auction permits would likely be much higher. The Heritage Foundation’s Center for Data Analysis’s estimate of climate revenue for 2012–2019, using less strict Lieberman-Warner caps, is between $1.6 trillion and $1.9 trillion, which results in even higher taxes on the consumer.

Of the $646 billion, $150 billion of this tax revenue would be allocated for clean energy investments a decade. This is old, tired thinking: The notion of government investing in clean energy technologies through tax breaks, incentives, and subsidies is tantamount to Washington picking winners and losers, which penalizes successful sources of energy that Americans use every day to subsidize unsuccessful ones. (More)

A Thousand Barrels a Second: The Coming Oil Break Point and the Challenges Facing an Energy Dependent World

Though written by an energy industry investment analyst and intended primarily for investors, this book makes a convincing, layreader-friendly case that the end of oil is nigh and it's time to get serious about energy alternatives now that the world is at "the dawn of a new energy age" that will pit the U.S. against China in the struggle for oil.

Tertzakian provides an excellent primer on oil's history, uses, supply chains and politics, including dozens of charts and graphs to illustrate the bleak outlook for oil's future. The future of energy, Tertzakian advises, is an amalgamation of increasing dependence on alternative fuels (biofuel, nuclear and green sources) and conservation. He admits conservation is a tough sell for big earners who will be able to afford the $4 per gallon gasoline will inevitably cost, but he notes in the same breath that low- and moderate-income earners and energy inefficient industries will suffer the most. His analyses of energy consumption cycles and their breakpoints and rebalancing periods (when a fossil fuel becomes too expensive or difficult to obtain and society must change sources to maintain its economy) lend factual heft to his outlook. Though the author neglects significant facts-such as the influence of the CIA in the fall of Mossadegh in Iran and the threat of global warming-the book should be required reading for policymakers.

Energy Markets: Price Risk Management and Trading (Wiley Finance) by Tom James

Description
Price Risk Management and Trading.

Energy risk management expert, Tom James, does it again. His latest book is a timely addition to the rapidly developing energy trading markets. This book should be on every energy trader, risk manager and corporate planer's desk. it is an easy read as Tom goes into great detail to explain the intricacies of this market and its various unique elements. - Peter C. Fusaro, Chairman, Global Change Associates Inc., Best-selling Author and Energy Expert

This sensible and practical guide is essential for those seeking an understanding of commerce in energy derivatives. beyond merely informative, this hand book for the practitioner details the finer points of the use of derivatives as tools for price-risk management. No energy trading desk should be without it. - Ethan L. Cohen, Senior Director, Utility and Energy Technology, UtiliPoint International Inc.

Energy markets are much more volatile than other commodity markets, so risk mitigation is more of a concern. Energy prices, for example, can be affected by weather, geopo9litical turmoil, changes in tax and legal systems, OPEC decisions, analysis' reports, transportation issues, and supply and demand - to name just a few factors. Tom James's book is a practical guide to assessing and managing these risks. It is a must-read for senior management as well as risk and financial professionals.- Don Stowers, Editor, Oil & Gas Financial Journal

This book is the most comprehensive on price risk management-centric efforts. It provides the reader with a tangible experience of derivatives in today's capital and energy markets. The breadth and scope of the passages are immense, in that both developed and developing countries' energy markets are considered and examples applied. Terrific read! - Rashpal Bhatti, Marketing Manager, Energy Trading Asia, Enron/BHP Billiton

Tom James has simplified the intricacies of a very complex market. In this new market of "hot" commodities, he has been able to give a fresh course to those who are new to the energy markets and a solid review for those that are well seasoned. he covers everything within the oil market from A to Z in this book and does it well. Coming from a financial background myself, it's good to finally find a book that can bring a better understanding to the field of energy commodities. - Carl Larry, Vice President Citi Energy Global Commodities

From the Inside Flap
Energy companies are increasingly exposed to price fluctuations in the volatile energy markets since the turn of the new century. Energy prices are affect by numerous factors such as geographical and political environments, developments in legal systems, OPEC decisions, speculative investment in the market as well as demand and supply.

Energy Markets: Price Risk Management and Trading is the practitioner's guide to trading the markets and optimizing company performance using the correct price risk strategies and tools. This book will also help you put in place the strategy, management controls and reporting structures necessary to ensure that trading or hedging progr5ams achieves its goals and does not add unexpected or unwanted risks to your firm.

As a direct trader in these markets or as an investor in hedge funds in the energy sector, this comprehensive book will give you an insight to the financial energy markets and their operation.

Inspired by the success of the courses run by Professor Tom James in global energy and commodities trading and price risk management, this book includes a wealth of practical knowledge applied to the market place. It is required reading for anyone involved in managing risk in the volatile yet opportunistic energy markets.

Mining News- Miniveyor In African Joint Venture

Rako Products Limited, manufacturers of the world’s favorite portable conveyor system the Miniveyor™ is expanding its distribution channels with the launch of Miniveyor Africa.
(1888PressRelease) October 29, 2007 - STONEHOUSE, UK — The Joint Venture company, based in the heart of the platinum mining area of Rustenburg is headed up by CEO Louis Labuschagne who brings with him a wealth of experience of mining operations and mineral extraction.

Darracq Shawe, Managing Director of Rako Products Ltd added “Miniveyor Africa builds on our experience gained in the Brazilian mining sector. The JV gives us a platform to promote our entire product range not only within the Republic but to the entire Sub-Sahara region. Although mining operations will be our main focus the construction market in the RSA is also booming with the hosting of the FIFA World Cup just around the corner”

NOTES TO EDITORS

Rako Products Ltd, whose manufacturing headquarters are based in Stonehouse U.K., specialize in equipment for confined space working and its Miniveyor conveyor system is used on thousands of applications worldwide for construction, tunneling and mining projects and for emergency disaster debris removal following natural disasters such as post-tsunami, hurricane and earthquake recovery and crime scene investigations.

For more information, contact:
Darracq Shawe
Rako Products Ltd
Tel: +44 1453 829900
Fax: +44 1453 829928
sales ( @ ) rako dot co dot uk
www.rako-products.com

Louis Labuschagne
Miniveyor Africa (Pty) Limited
Tel: +27 79 5280576
Fax: +27 86 6319458
info ( @ ) miniveyorafrica dot co dot za
www.miniveyor.co.za

Sponsored Links Mining News:Argentex Mining shares begin trading on the TSX Venture Exchange under the symbol “ATX”

Argentex Mining Corporation (TSX-V: ATX, OTCBB: AGXM) is pleased to announce that effective today, Monday, July 28, 2008, its common shares will begin trading on Canada’s TSX Venture Exchange (TSX-V) in addition to the company’s existing listings in the U.S. and Germany. The company’s shares will trade on the TSX-V under the symbol “ATX.”

In 2004 Argentex acquired a large package of prospective exploration properties in the Patagonia region of Argentina. The Pinguino property quickly became the focus of the company’s exploration efforts, which in early 2006 culminated in the discovery of a significant new polymetallic and precious metal occurrence. Since that initial discovery, numerous additional vein systems have been discovered, covering more than 60 kilometers (37 miles) in total strike length, using detailed geological mapping, soil geochemistry, magnetometry and IP geophysics. Diamond drill testing has been successfully carried out on more than eight major Pinguino veins identified to date, returning excellent intersections of mineralization.

“Argentex has made a significant new mineral discovery in the Patagonia region of Argentina. The impressive extent of mineralization at Pinguino together with the indium-enriched zinc-silver-lead chemistry make it a unique discovery in the region,” said Ken Hicks, President of Argentex. “Indium is a high-value strategic metal used in flat-panel LCD-plasma displays and leading-edge solar cell technology and markets for both applications continue to grow at impressive rates. Our discovery at Pinguino continues to attract the interest of numerous major mining and smelting companies. We intend to continue expanding our exploration activities and advancing our engineering studies at Pinguino, a flagship project where we see great future potential.”

Drilling at Pinguino has so far tested only a small portion of near-surface and deeper subsurface targets. Mineralization has been discovered in exposed surface trenches and drilled to a depth of 250 meters (820 feet) below surface. Results showed no change in the strength of sulphide composition with depth and the mineralizing system remains open at depth and along strike. Argentex has so far completed more than 20,000 meters (65,617 feet) of targeted diamond drilling during its 2007-2008 exploration season, for a total of more than 30,000 meters (98,425 feet) to date.

Pinguino displays two distinct styles of mineralization. The first is a northwest-trending structurally controlled epithermal precious metal vein system, with a low sulphide content and enriched in silver and gold. Pinguino also shows a second, distinct high-sulphide style, occasionally massive in sections and containing a suite of higher-temperature elements including tin and tungsten. Typically, massive sulphide mineralization is surrounded by a wide zone of disseminated sulphides. The host tuffs and continental sediments are some of the oldest and deepest rocks exposed in the Deseado Massif.

Within the last 12 months, Argentex has completed two rounds of financing to raise aggregate gross proceeds in excess of five million dollars. The company has used the net proceeds of these financings to advance exploration at Pinguino, to fund exploration of other Santa Cruz mineral properties and for general corporate purposes.

About Pinguino

Argentex’s Pinguino property is located in Argentina’s Patagonia region, within the Deseado Massif of Santa Cruz province. The zinc-silver-indium-lead-gold-copper discovery at Pinguino in 2006 marked a major exploration milestone for the company. This was the first discovery of its kind in the region, unique in that it contains both silver-gold and indium-enriched base-metal mineralization. Since 2006, exploration of base-metal-rich targets has expanded to encompass more than eight mineralized zones, including Marta Centro, Yvonne, Yvonne Sur, Yvonne Norte, Sonia, Kasia, Savary and Luna veins, within an area of approximately 8.0 square kilometers (3.0 square miles).

Indium, a significant component of Argentex’s polymetallic discovery at Pinguino, is a high-value metal used in flat-panel (LCD, plasma) displays and in leading-edge thin-film solar cell technology.

Pinguino is easily accessible, situated approximately 400 meters (1,312 feet) above sea level in low-relief topography. An existing system of all-weather roads provides year-round access to the property.

ABOUT ARGENTEX:

Argentex Mining Corporation is a junior mining exploration company with significant holdings in the Patagonia region of Argentina. It owns 100% of the mineral rights to the Pinguino property and 100% mineral rights to more than 30 other mineral properties with over 377,490 acres (152,766 hectares) in the Santa Cruz and Rio Negro provinces of Argentina. Shares of Argentex common stock trade under the symbol AGXM on the OTCBB and, beginning July 28, 2008, trade on the TSX Venture Exchange under the symbol ATX.

Exploration on the Pinguino property is conducted under the supervision of Mr. Kenneth Hicks, P.Geo., Argentex’s President, a “qualified person” as defined by Canada’s NI 43-101. Mr. Hicks has read and approved the contents of this release.

Source: Argentex Mining Corporation

Mining news-BP-Energy Consumption Rises as Supplies Lag But Free Energy Markets Do Work

Release date: 11 June 2008
“The defining feature of global energy markets remains high and volatile prices, reflecting a tight balance of supply and demand. This has put issues such as energy security and alternative energies at the forefront of the political agenda worldwide,” said Tony Hayward, BP’s chief executive at the launch of the 2008 BP Statistical Review of World Energy.
The Review shows that the world’s fossil fuel resource base remains sufficient to support growing levels of production but the continued weakness in oil supply and increasing demand outside the OECD also highlight the challenges that industry faces in maintaining secure energy supplies.

“Declining oil production in the OECD highlights the fact that, while resources are not a constraint globally, the resources within reach of private investment by companies like BP are limited. Political factors, barriers to entry, and high taxes all play a role here. In other words, when it comes to producing more oil, the problems are above ground, not below it. They are not geological, but political,” added Hayward.
“But despite high and volatile energy prices, the world’s energy markets continue to deliver reliable energy supplies,” said Hayward.
According to the Review, world economic growth was strong last year, despite financial market turmoil which began in August, and this continued to support global energy consumption. And although growth in primary energy consumption slowed in 2007 compared to 2006, at 2.4% it was still above the 10-year average for the fifth consecutive year.
The oil price has been on an upward path for more than six years, which according to BP’s data series going back to 1861, is the longest period of rising prices on record.
“This year’s Statistical Review shows very clearly that markets do work, and that consumers and producers respond to changes in energy prices when given the opportunity to do so. However, in many places, policies interfere with market mechanisms and access to economically rational upstream reserves is difficult. Further, in a number of countries consumers are shielded from price increases via subsidies,” commented Christof Rühl, BP’s chief economist at the Review’s launch.
Oil: Dated Brent crude oil averaged $72.39 per barrel in 2007, an increase of 11%. Prices rose steadily throughout the year, from a low of just over $50 in mid-January to above $96 by year-end. Temporary bottlenecks caused the USA benchmark WTI to trade at a discount to Brent for the first time since 1979. Discounts for heavy, sour crudes remained high reflecting constraints on upgrading capacity in refining.
Global oil consumption grew by 1.1% in 2007, or 1 million barrels per day (bpd), slightly below the 10-year average. Consumption in the oil exporting regions of the Middle East, South and Central America, and Africa accounted for two-thirds of the world’s growth. The Asia-Pacific region grew by 2.3%, even though growth in China and Japan was below average, with strong growth in a number of emerging economies. OECD consumption fell by 0.9%, or nearly 400,000 bpd.
Global oil production fell by 0.2%, or 130,000 bpd, the first decline since 2002. OPEC production dropped by 350,000 bpd due to the cumulative impact of production cuts implemented in November 2006 and February 2007. Increased output in Angola and Iraq, and growing supply of condensates/NGLs, partially offset larger cuts in other OPEC countries.
Oil production growth outside OPEC remained weak, rising by just over 200,000 bpd in 2007; OECD output fell for a fifth consecutive year. FSU output rose by nearly 500,000 bpd, with Azerbaijan and Russia each growing by more than 200,000 bpd.
Proved oil reserves were essentially flat in 2007-at 1.24 trillion barrels-and are sufficient to meet current production for more than 41 years. However, the 2006 world total was revised up by 31 billion barrels upon receipt of more complete information.
Gas: World natural gas consumption grew by an above-average 3.1% in 2007, although only North America, Asia-Pacific, and Africa recorded above average regional growth. The USA accounted for nearly half of the world’s gas consumption growth, driven by cold winter weather and strong demand for gas in power generation. Chinese consumption grew by 19.9% and accounted for the second-largest increment to global gas consumption. EU consumption declined by 1.6%-the second consecutive decline-in face of warm winter weather.
Gas production rose by 2.4% in 2007. The USA accounted for the largest increment to supply, growing by 4.3%, the strongest growth since 1984. EU production declined by 6.4%, with UK output falling by 9.5%, the world’s largest volumetric decline for a second consecutive year. A small decline in Russian production was more than offset by strong growth elsewhere in the FSU. China and Qatar recorded the second- and third-largest increments to production, increasing by 18.4% and 17.9% respectively.
LNG shipments rose by 7.3%, supported by continued growth in shipments from Qatar and Nigeria. USA LNG receipts rose by one-third as a large price premium to European spot markets resulted in the diversion of cargoes to the USA.
Coal: Coal was the fastest growing fuel in the world for the fourth consecutive year. Global consumption rose by 4.5%. Consumption growth was widespread, with growth in every region except the Middle East exceeding the 10-year average. Chinese coal consumption rose by 7.9%, the weakest growth since 2002, but more than two-thirds of global growth. Indian consumption rose by 6.6%, and OECD consumption rose by 1.3%, both above average figures.
Nuclear and hydroelectric: Nuclear power output fell by 2%, the steepest decline on record. However, more than 90% of this decline was accounted for by Germany and Japan-which saw the world’s largest nuclear power plant closed following an earthquake. Hydroelectric generation increased by 1.7%, slightly below the 10-year average. Increased capacity in China and Brazil was partially offset by drought-related declines in the USA and Southern Europe.
Renewables: Renewable energy remains a small share of total global energy use, but most renewable sources experienced rapid growth in 2007. Ethanol output rose by 27.8%. Global capacity for wind and solar electricity generation grew broadly in line with historical averages of 28.5% and 37%, respectively.
Note to editors:
The BP Statistical Review of World Energy is available online at www.bp.com/statisticalreview. The website contains all the tables and charts found in the printed edition plus some additional data, an energy charting tool and a conversion calculator.
Further information and media request for hard copies:
Office: BP press office
Phone:+44 (0)20 7496 4076

Farming Biodiesel Inc. Farm of the Future is Open Projected to Produce 15,000,000 Gallons of Biodiesel a Year by 2010

This news release is about farming Biodiesel Inc a 1500 Acre Self Sufficient Jatropha Farm in the Californian Desert now planting biodiesel fuel stock using various farming methods to produce biodiesel.

Desert Center, CA, July 20, 2008 –(PR.com)– Farming Biodiesel Inc. Opened on July 1st, this farm which is located in the desert of Southern California is a social farming organization using various farming methods to farm bio-fuel stocks to help eliminating Petro diesel. Utilizing green technologies such as solar, wind, with the integrating of Fish, vegetable crop and live stock the farm of the future is virtually self sufficient.
Farming Biodiesel Inc is now over 1500 acres and when fully planted will by over 30,000 acres…

Farming Director Michael Reardon Quote

“Here at Farming Biodiesel Inc we are committed to creating a renewable clean alternative to petro diesel. By reclaiming desert waste lands and turning them into profitable farms the effect is immediate on the local economy, by providing jobs, housing, and health insurance to over 1000 people per acre of farmland. Biodiesel can be mass produced and distributed at a cost of $3.75 per gallon. Farming Biodiesel Inc. is currently involved in 14 projects in 5 different countries, Farming Biodiesel Inc . . . . Encourages every American to research all alternative sources to petro fuels. The only way the United States will become free of petro use for fuel is by educating your self’s and taking action , even if you only write your congress man to support Farming for Biodiesel and alternative fuels.”

farmingbiodiesel.

Mining News-CONSOL Energy and Synthesis Energy Systems Announce Funding of Front-End Engineering Design Package for West Virginia Coal ....

Sponsored Links

Mining News-CONSOL Energy and Synthesis Energy Systems Announce Funding of Front-End Engineering Design Package for West Virginia Coal Gasification Project

CONSOL Energy Inc., the nation’s largest producer of bituminous coal, and Synthesis Energy Systems Inc., a global industrial gasification company, intend to develop through a joint venture their first U.S. coal gasification and liquefaction plant to be located in West Virginia. CONSOL (through its subsidiary Terra Firma Company) and SES have formed Northern Appalachia Fuel LLC (”NAF”), as the company through which the development will occur.

The Board of Directors of CONSOL and SES have authorized funds for development activities, including the front-end engineering design (”FEED”) package. Each member company will contribute equally to this phase of the project. NAF is finalizing agreements with Aker Solutions US Inc., a subsidiary of Aker Solutions ASA (OSL: AKSO), to perform the FEED. The FEED will include a carbon management strategy that will focus on carbon sequestration in a deep saline aquifer. At a later date, NAF will file for environmental and other permits necessary for the construction of the plant.

CONSOL and SES propose to site the plant near Benwood, West Virginia, south of Wheeling. It is expected that the plant will be a ‘mine mouth’ facility with feedstock supplied directly from CONSOL’s nearby Shoemaker complex. The feedstock will be a blend of run of mine coal and coal otherwise not recovered in the normal preparation process. Coal will be converted to syngas utilizing SES’s proprietary U-GAS® technology. It is expected that the syngas will be used to produce approximately 720,000 metric tons per year of methanol that can be used as a feedstock for the chemical industry. It is also expected that the project will be capable of converting methanol production to approximately 100 million gallons/year of 87 octane gasoline. NAF is currently negotiating with ExxonMobil Research and Engineering to license their proprietary methanol-to-gasoline technology. As envisioned, the project will include a river terminal facility, where products will be stored in tanks for off-loading into barges for ultimate delivery.

CONSOL and SES also have signed a memorandum of understanding (”MOU”) with the State of West Virginia and its partner, the Regional Economic Development Partnership (”RED”), a private West Virginia non-profit development corporation focused on generating business opportunities through job creation and economic stimulus in the Ohio, Marshall and Wetzel counties of West Virginia. Under the provisions of the MOU, the State and RED will provide financing and tax incentives to the project over a 10-year period.

“This project has the potential to transform West Virginia from a major coal producing state to a national energy center as well,” said J. Brett Harvey, CONSOL Energy President and Chief Executive Officer. “By converting some of our region’s abundant, high-Btu coal into gases and liquids, not only will we create economic value for the state, but we will help West Virginia become the linchpin of American energy security.”

Harvey thanked both the State of West Virginia and the RED for their assistance and support of the project. “In every conversation I have had with Governor Manchin in recent years, we have talked about ways to leverage West Virginia’s coal position into a national energy leadership position — a position in which jobs, economic growth, and the enhancement of American energy security flow from the harnessing of West Virginia’s resources and the ‘can-do’ attitude of its people,” Harvey said. “His vision is sound. With West Virginia’s help, our success with this plant will make the vision a reality.”

“We are proud of the progress we have made to-date toward the development of the first industrial size U-GAS® gasification plant in the United States and we appreciate the support that the State of West Virginia and the RED have demonstrated for this initiative,” said Tim Vail, President and Chief Executive Officer of SES. “Together with our partner, CONSOL Energy, SES will be taking a first step toward securing energy independence in the U.S. as we convert raw and residual coal from CONSOL’s Shoemaker mine and plant into gasoline in an environmentally responsible and cost efficient manner,” Vail added.

“It’s clearer than ever that one of the biggest issues our state and country faces is meeting our energy needs,” said West Virginia Gov. Joe Manchin. “Technological solutions like this plant at Benwood will lead to more environmentally friendly ways to use our coal and hold the key to America’s energy security. I am committed to making West Virginia the leader in clean coal technology and the construction of clean coal power and fuel liquefaction plants. We have the resources and expertise to realize our goal.”

Both of West Virginia’s United States Senators voiced their support as well. “America cannot meet its energy needs,” said Senator Robert C. Byrd. “West Virginia has the coal, the brains, and the determination to meet that challenge and demonstrate to the world that we intend to be part of the solution.”

Senator Jay Rockefeller also added his support. “We are in the midst of a serious energy crisis in America. Today, with this project and others in the works, West Virginia is announcing to the world that we’re not waiting around anymore,” Rockefeller said. “We’re getting started with a CTL plant that will create jobs, meet modern environmental standards, and develop our most abundant domestic resource — coal. This plant will help put our state on the path to energy security and greater economic growth.”