NYT Duped into Helping Push Massive New Energy Taxes

 A hat tip is in order for the Institute for Liberty, which has a response to a New York Times article calling for a massive new tax on the oil industry. The IfL has a rebuttal for each section of the article, which is being used to push for a reverse of cheap energy policies.

Take a look at the NYT article and the rebuttal in blue:

Other tax breaks were born of international politics. In an attempt to deter Soviet influence in the Middle East in the 1950s, the State Department backed a Saudi Arabian accounting maneuver that reclassified the royalties charged by foreign governments to American oil drillers. Saudi Arabia and others began to treat some of the royalties as taxes, which entitled the companies to subtract those payments from their American tax bills. Despite repeated attempts to forbid this accounting practice, companies continue to deduct the payments. The Treasury Department estimates that it will cost $8.2 billion over the next decade.

This may be the most disingenuous claim of all.  Under rules in place for over 25 years, again the most severe and substantial restrictions and limitations apply to the oil and gas industry in determining the US taxation of income earned outside the country.  As noted above, the US has a worldwide tax system and taxes the income earned outside its borders.  But under that system, it recognizes that it should not impose full taxation on such foreign income because that would amount to full double taxation.  Thus, the US permits an offset for the US taxes otherwise due--only on foreign income--for income taxes already paid on that income to foreign countries.  The tax rules only allow an offset for income taxes paid and, contrary to the assertion above, the tax rules forbid the claiming of an offset credit for a royalty.  Further, and most restrictive of all, the tax rules place the entire burden of proof on the taxpayer to show that no portion of what it claims as an income tax offset is in fact a royalty.

Take a look at the complete article for a better look at what the NYT and the left wing is up to.



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Chris Dodd Blames Bush for Gulf Spill

Can't say I'm too surprised, but of course the George W. Bush bogeyman is back and apparently worse than ever. Not content with trying to destroy the Gulf Coast while in office, Bush is back to kill off the environment and poison the sea!

...they come into office a year ago with all of this and so the last eight years of a regulatory environment of 'drill, drill, drill."

Chris Dodd, the corrupt quasi-kleptocrat, is lecturing anyone on anything? If you follow the link there's a nice video of the piece. Glad to see Dodd goin' out the door.


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Can you really afford cap and trade?

With cap and trade still an unresolved issue and the raging battle over the veracity of anthropogenic global warming I though it would be interesting to see what is at stake. If Liberals have their way and taxes are implemented on things like oil and coal our lives will change dramatically. I really don't think the general population has a clue how many items are made from oil or are tied to it in some substantive way.

I have included a list of things made from oil. This list does not include the things that are manufactured or transported by processes that utilize oil; just things actually made from oil. If draconian taxes are implemented on oil and energy production processes the price of every item listed below will skyrocket. As you read through the list think of how a dramatic jump in cost of each of these items will affect your daily life. Keep in mind this is not an exhaustive list, just the common things.

This list comes from the Illinois Oil and Gas Association along with this warning "Without the use of coal, oil & gas to provide electricity, and the use of petro-chemicals to build computer components you wouldn't be visiting this website today!":

CLOTHING/TEXTILES

Ballet tights, nylon cord, women's polyester blouses,beads, pajamas, women's polyester pants,bracelets, pantyhose, nylon zippers, plastic hangers, permanent press clothing, dresses, purses, thongs/flip flops, earrings, ribbons, fake fur, windbreakers, sandals, garment bags, shoe laces, rain coats, iron-on patches, sneakers, sweaters, men's nylon undershirts, sofa pillow material, men's polyester shirts, men's polyester slacks, tote bags, umbrellas.

OFFICE

Ball point pens, diskettes, thermometer, Ink, computers,typewriter, ribbon/cartridges, business card holders, copiers, waste baskets, calculators, printer ribbon cartridges, microfilm, carbon paper, protractor, name tags, correction fluid, ring binder, erasers, rulers, letter divider, scotch tape, magic markers, telephone.

SPORTS/HOBBIES/GAMES

Back packs, fishing lures, air mattresses, Polaroid camera, beach balls, fishing poles, hang gliders, vinyl cases, cameras, footballs, glue containers, puzzles,
darts, Frisbees, golf ball/bags, shotgun shell casing, ear plugs, knitting needles, waterproof jackets, stadium cushion, earphones, yarn, kites, tennis racket, fabric, dye, decoys, life-jacket, nylon strings, face protectors, volley balls, model cars, plastic water gun, fishing bobbers, soccer balls, oil paints, parachutes,fishing cylume,light stick, earphones, playing cards, photographs, mono-filament fishing lines, diving boards, poker chips, goggles, roller-skate wheels, whistles, guitar strings, picks, rafts, ice chests, tents, sleeping bags, pole vaulting poles, motorcycle helmets, skis, rubber cement, plastic flower pots, water skis, hot tub covers, sails, snorkels, monkey bars, photo albums, wet suits, flippers, tennis balls, boats, insulated boots,

INFANT/CHILDREN

Acrylic toys, baby oil, laundry basket, waterproof pants, baby aspirin, bath soap, mittens, pacifiers, baby blanket, bibs rattles, double-knit shirts, baby bottles, disposable diapers, baby shoes, teething ring, nipples, dolls, stuffed animals, baby lotion.


MEDICAL

Allergy medication, cotton-tipped swabs, inhalator liquid, Pepto-Bismol,
aspirin, first aid cream, lancet for blood testing, pill case, band aids, first aid kits, latex gloves, prescription bottle, burn lotion, glycerin, mosquito spray, rubbing alcohol, chap stick, heart valve replacement, nasal decongestant, surgical tape, syringes, Vaseline, antiseptics, hearing aids,
anesthetics, artificial limbs, eye glasses, antihistamines, cortisone, vaporizers, Bactine, oxygen masks, stethoscope, prescription glasses

HEALTH & BEAUTY

cologne, hair brushes, lipstick, permanent wave curlers, perfume, hair color, mascara, petroleum jelly, comb, foam rubber curlers, denture adhesives, shampoo,
contact lens/case, hair spray, hand lotion, shaving foam, cough syrup, hearing aids, hair dryers, shoe inserts, dentures, Keri body lotion, face masks, skin cleanser, deodorants, laxatives, moisturizing cream, soap holder, disposable razors, leather conditioner, mouth wash, sun glasses, facial toner, lens cleanser, nail polish, sunscreen, tooth brushes, toothpaste tubes, vitamins, synthetic wigs, bubble bath soap, capsules.

KITCHEN/HOUSEHOLD

vinegar bottles, egg carton, meat trays, trash bags, bread box, freezer containers, melamine dishware, tumblers, cake decorations, jars, microwave divided dishes, utensils, candles, freezer bags, milk jugs, vacuum bottles,
coasters, gelatin molds, nylon spatulas, wax paper, coffee pots, ice cream scoops, oven bags, mops, drinking cups, ice trays, plastic containers, fabric softener, detergent, liter bottles, plastic table service, drain stoppers,
dish drainer, lunch boxes, pudding molds, sponges, dish scrubber brush, baggies, drinking straws, Styrofoam, paper cup dispenser, measuring cups, Teflon coated pans, table cloths, refrigerator shelves.

FURNISHINGS

Carpet padding, naugahyde, Venetian blinds, TV cabinets, extension cords, picture frames, flocked wallpaper, shower doors, Formica refrigerator lining, vinyl-coated wallpaper, curtains, kitchen carpet, shag carpet, welcome mats, fan blades, lamps, shower curtain, patio furniture, swings, linoleum, upholstery material, rugs.

BUILDING/HOME MAINTENANCE

caulking material, light switch plates, plunger, faucet washer, clothesline, measuring tape, polyurethane stain, water pipe, electric saw, paint brush, propane bottles, wood floor cleaner/wax, vinyl electrical tape, plastic pipe, shingles (asphalt), light panels, garden hose, plastic wood, spackling paste, awnings, glazing compound, Plexiglas, spray paint, enamel epoxy paint, artificial turf, folding doors, floor wax, glue, house paint, paint rollers, toilet seats, water pipes, putty, solvents, roofing material, plywood adhesive, sockets, propane.

AUTOMOBILE

Anti-freeze, flat tire fix, street paving (asphalt,) car battery case,
coolant, motor oil, tires, loud speakers, bearing grease, sports car bodies, traffic cones, car enamel, brake fluid, dash boards, windshield wipers, visors,
car sound insulation, oil filters, car seats, convertible tops, fan belts, gasoline.

MISCELLANEOUS

Ash trays, dog food dishes, tool boxes, cd's, balloons, dog leash, tape recorders, synthetic rubber, bubble gum, dog toys, flashlights, nylon rope,
bungee strap, fertilizer, flight bags, disposable lighters, cassette player, flea collars, flutes, lighter fluid, cigarette case, electric blankets, tool racks, name tags, cigarette filters, ammonia, insecticides , newspaper tubes,
calibrated container, insect repellent, food preservatives, phonograph records,
crayons, ice buckets, dyes, pillows, credit cards, flashlights, fly swatter, plastic cup holder, dice, movie film, k-resin, plastic tie, polyethylene , polypropylene , rain bonnets, luggage, video cassettes, charcoal lighter, rayon, safety glasses, safety gloves, safety hats, shoe polish, signs,
cassette tapes, toys, watch bands , waterproof boots, shopping bags, bed spreads , traffic cones , check books covers, tobacco pouches, clothes hangers, flea collars, flavors, masking tape, safety flares, flags, signs,
butane.

Maybe our politicians should think twice about what they are planning to do.

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Interview: Terror Free Oil

TerrorFreeOil.com is a site dedicated to reducing the United States' dependence on foreign fuels, especially those that wind up supporting terrorists and dictators. We'd like to thank the site for taking part in this interview. Jumping in Pools continues with its eleventh in its interview series:

1. President Obama has invested much political capital into the idea of green energy. In your opinion, will his policies sharply reduce the US's dependence on foreign oil?

No. In the foreseeable future, green energy can cover only a small percentage of US energy needs. We need to be focusing on nuclear energy and more domestic exploration - ANWR, shelf, shale.

2. Which gas brands would TFO rate as the best and worst in terms of sending money to terrorists and dictators overseas?

Best: Cenex, Hess, Flying J, Sinclair, Sunoco - no Persian Gulf oil.Worst: Chevron (43% P.G. oil), ExxonMobil (41%), Tesoro, (38%), Valero (38%) http://www.eia.doe.gov/pub/oil_gas/petroleum/data_publications/company_level_imports/current/summary2008.html
3. What are some steps that average citizens could take today in order to help reduce petrodollars entering terrorists' hands?

Choosing the gas stations based on the link above. Conservation (less driving, installing fuel-saving gadgets, proper vehicle maintenance - tire pressure, clean air filters, etc.)

4. What is the largest impediment to reducing the US's dependence on fuel from the Middle East and Venezuela?

Laziness and stupidity of politicians + greed and stupidity of oil companies.

5. What is the most difficult part of trying to get TFO's message to the general public and what has been the overall public response to TFO?

Advertising requires funding; TFO is run by volunteers. [Public opinion has been] overwhelmingly positive. Negative responses are in single digits percentage-wise.


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How to Solve Our Dependence on Foreign Energy

Even with gas and oil prices dipping over the last six months, we have to keep in mind that unless we do something drastic this is only temporary. When the economy comes back online, expect the return of four dollar gas. Oil could again reach near $150 and a prolonged economic growth period could push gas near six dollars.

In order to attempt to reverse this potential future, the government and our business leaders need to make the decision that we should be less dependent on foreign energy. Everyone states how they'd like to do this, but it's imperative that we act boldly, especially while our enemies like Iran, Russia, and Venezuela have smarting economies.

So here's my plan. If you don't like it or feels that it doesn't go far enough, feel free to comment. If you think it's a good idea, email it to people you know to begin a chain that could end with Congressmen and Senators. It's time to act, and I think that it's about time.

What We Need to Do:

1. Relax restrictions on drilling for most domestic areas-- basically anywhere that won't really damage the environment. Make oil companies pay 25 cents on the dollar of profits from this new land opened in reinvestment, the "greening" of their facilities and automobiles, and the expansion of alternative energy.

2. Have the Congress invest $50 billion over the next 5-10 years in ethanol production in Brazil. Sugarcane in Brazil produces much more ethanol cheaper than corn, and avoids the fuel/food scenario. Have these fields owned by our government, with the ethanol being sent to the US tariff and tax free.

3. Create wind, solar, and geothermal energy on federal land, including solar panels on federal buildings. Phase out gasoline and diesel cars from federal and state vehicles, and phase in CNG, biodiesel, and ethanol cars.

4. Provide $50 billion over 10 years for the construction of ten synthetic coal-to-oil plants.

5. Eliminate most or all taxes on Compressed Natural Gas, and push for more drilling.

6. Mandate that all newly built homes and businesses be constructed with either solar panels or a small wind turbine OR have the owners pay a waiver to the federal government.

7. Allow the construction of more refineries and nuclear plants.

This plan is definitely expensive, but if carried out, could save us the amount it costs overall in just one year. This could be our ticket out of ALL energy entanglements with other countries (except Canada, Mexico, and Brazil.) Make this message count, send it to those who want to make a difference!

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Obama Setting Us Up For $5 Gas

Now with gas prices down near $2, the United States should be attempting to twist the knife on our enemies in Venezuela, Russia, and Iran. Instead, we are allowing the same old policies continue, i.e., the opposite of change. The government may overturn President Bush's allowance of oil drilling off the coasts of the United States.

While this drilling would not end our dependence on foreign oil, it would definitely take a big bite out of it. And to use this time, the time of a recession, to squash jobs-producing work which would stimulate the economy is the wrong sign.

We could continue the drilling, and give tax credits for the drilling of natural gas. We could fund coal-to-oil synthetic fuel plants and have the offshore rigs be powered by solar panels. But we have to do something. Sitting around blaming Bush for doing something good is not only stupid, but counterproductive.

The Bush proposal "opened the possibility of oil and gas leases along the entire Eastern seaboard, portions of offshore California and the far eastern Gulf of Mexico with almost no consultation from states, industry or community input," Salazar said at a news conference in Washington. "In my view it was a headlong rush of the worst kind."

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"Drill Like Brazil"

From the recent issue of IBD about how Brazil is investing billions into fuel production.... They produce ethanol and oil. Massive amounts, too. Maybe we should get on the bandwagon.

Such investments could have a similar beneficial impact on the American economy, and the irony is that the oil companies are willing to use their own money here if we let them. Yet, even more restrictions on U.S. domestic production are planned.

Thanks in part to a relentless pursuit of domestic energy resources to complement its ethanol production (an "all of the above" energy plan like that proposed by Republicans during the campaign), the Brazilian economy grew 5.8% in 2008 and is projected to expand 2.9% even in a tough 2009, according to the median estimate of 16 economists surveyed by Bloomberg.

...

A study by ICF International, commissioned by the American Petroleum Institute, finds that by 2030 the domestic energy resources that Congress has placed off-limits in ANWR, in Rocky Mountain shale and in the Outer Continental Shelf could increase U.S. crude-oil production by 36%, generate more than $1.7 trillion in government revenue and create 160,000 jobs.

Proof of Saddam's WMDs

This is a copy of something I wrote on the Investor's Iraq Forum. Enjoy.

Bush never stated that Iraq was a direct or imminent threat to us. In fact, he stated the opposite during one of his biggest speeches before the war. From the 2003 State of the Union:

Some have said we must not act until the threat is imminent. Since when have terrorists and tyrants announced their intentions, politely putting us on notice before they strike?

As for chemical weapons that were a threat to us, we're forgetting the potential of Saddam's WMD. Contrary to popular belief, most of his WMD capacity was NOT given or sold to him by the United States. In fact, the vast majority was provided by Russia (his number one arms partner), East Germany, and Poland. The United States, under President Reagan allowed biological weapons components to be sold to the Iraqi regime, but was not the primary seller.

Sarin nerve gas was produced in the tons by Saddam's government in the 1980s. One liquid drop of this could kill an adult male. The Iraqi regime created and stockpiled even more deadly nerve gases, like cyclosarin and VX. Even ten shells filled with these chemicals could kill hundreds, or thousands in an enclosed ventilation system. And Saddam admitted to having at least 30,000 in 1991. The Iraqis had a bad habit of not labeling their chemical weapons shells. Of all of the millions of shells safely detonated by ordinance personnel, hundreds or thousands could have been VX, Sarin, Tabun, or Cyclosarin.

Sarin and mustard gas are fairly easy to construct, and considering the Iraqis had the blueprints and experience, it was only a matter of time that the stockpiles were rebuilt. These were seen as vital as a bulwark against Iran and Israel.

And Saddam's WMD stockpile wouldn't be used against us directly. Duh. With various bases in the region, the Kurds, Israel, and Saudi Arabia nearby, there was no reason to risk transporting the materials 11,000 miles. He could easily hit Americans in his own back yard. Or more likely, complete the Anfal Campaign when we weren't looking.

Of course oil is a major factor in the war. You don't invade a country with either the 2nd or 3rd biggest oil reserves in the world and not factor that in. And considering the fact that almost all of Iraq's oil is either in the Kurdish region or close to the Kuwaiti border (in the desert where no one lives), if oil was the only or chief concern, it could be secured and held even without toppling Saddam. Besides, these wells haven't been given to American or British petroleum corporations, which could have easily paid for the war. You cannot leave a dictator who invaded three of his neighbors and shot ballistic missiles at two others in control of this vast oil wealth. And considering that he was funding Hamas, Hezbollah, and Ansar al-Islam (to name just a few), this money was directly funding the deaths of Israelis and Lebanese.

If Bush really lied (or even really exagerrated) claims about WMD, it would be in short order that American chemical weapons from the Cold War (which we're disposing of anyway) would be sent as stand-ins. Considering if Bush and his Administration would know ahead that they were lying, this would have been done before the troops entered Baghdad.

This isn't about Bush. If Clinton or Gore were President, toppling Saddam would have been the right thing. It just so happened that Bush was the person who did it. Considering the threat that Saddam held for the region, it was by far a great decision. To deny that would fly in the face of fact, not opinion.

Coffee Replacing Gasoline?

There's a neat little article up stating that coffee grounds could be processed into biodiesel. This invention could help reduce our dependence on fossil fuels, one cup at a time:

That's the idea behind a new study that turned used coffee grounds into biodiesel fuel. Coffee will probably never replace petroleum, but discarded cappuccino scraps might someday help reduce our impact on the environment, say the study's authors. They imagine a day when the byproducts of your latte end up in the gas tank of your car -- with hardly any waste left behind.

"It's a very simple two-step process," said Susanta Mohapatra, a chemical engineer at the University of Nevada, Reno. "We can definitely make a big impact on our environment with fuel made out of nature."

Cool.

Oil Demand to Drop?

According to the Financial Times, global demand for oil may plummet over the next year thanks to the recession. If true, it could minimize OPEC cuts and further deflate the price of oil:

“The increasing likelihood of a prolonged global economic downturn continues to dominate market perceptions, putting downward pressure on oil prices,” it said, forecasting that demand would drop 50,000 barrels a day this year and a hefty 450,000 b/d in 2009. US oil demand will drop next year to the lowest level in 11 years.

It's not all good though, as oil will have to rise sometime:

Oil would return to about $75 a barrel within the next three years, it said, while food would trade 60 per cent higher than in 2003, but about half below this year’s record.

Still, it would be good news to hear that oil prices may continue to slide and nations that are hostile to us will have less money to throw around for a while.

Time to Push Forward

Gas is down, oil is down, fuel as a whole is down. The oil semi-crisis of the last year or so seems to be in the offing. During the spike in oil and gas prices, the American public called for alternative fuels; now that prices have declined, it is not time to stop. We must push forward to the future.

Look back at the oil crisis of 1973. When OAPEC (OPEC plus Syria and Egypt) declared an oil embargo, oil prices skyrocketed, forcing the American public to call for new technology, better technology. For that short time, we pushed the limitation of technology, including renewable energies. But when prices came down, the public became quiet.

We must learn from the past to prevent anything like this from happening in the future. Oil prices will not stay this low forever. We are the American public, we are the greatest nation on Earth. We can do whatever we want if we put our minds to it.

Oil to $40 a Barrel

From the Financial Times: it appears that oil prices may not only dip below $50, but may fall to $40 a barrel.

A recent meeting of the national oil companies in Beijing had predicted oil prices would fall to about $40 a barrel, Fu Chengyu, chief executive of China National Offshore Oil Corporation, told a conference in Barcelona.

“The consensus at the time was that everybody realised the oil price would be even lower,” Mr Fu told the Global China Business meeting. “Nobody knew where it would be but most of them said around $40.”

I wrote that it's unlikely that oil will fall below $50 a barrel. The Saudis are unlikely to allow this. They're the only ones that can make a huge change in the price of oil unilaterally.

Even with a production cut from OPEC, decreasing demand is still cutting into the price of oil. It's even dropped below $2.00 in Palatine Bridge.

How Low Will Oil Prices Go?

The national average price of gasoline has fallen to $2.22 and the price of a barrel of oil has fallen to near $56.

Now, with the slowing global economy, will oil prices continue to fall? Some factors point to yes: 1. U.S. promises to drill more may flatten oil prices. 2. Increased ethanol production cuts down on gasoline demand. 3. If people don't have additional money because they're saving, the less they spend on gas. 4. If you're unemployed, you're not commuting to work every day.

But other factors point otherwise: 1. Obama wanting to restrict domestic oil drilling. 2. Cheaper gas prices may encourage people to travel just from the low prices. 3. Saudi Arabia has stated that it doesn't want oil to fall below $50. A drastic cut in oil production could spike prices. 4. A terrorist threat in the Middle East could cause a price spike.

So, where will oil be in six months? I'd guess around $75 with gas around $2.80.
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Obama: We Don't Need Oil

President-Elect Obama has already announced a major step back in his emerging Presidency. Obama stated that he will reverse President Bush's order to allow oil drilling on public lands.

Unfortunately, with our dependency on foreign oil actually increasing, we cannot afford to stop drilling. Perhaps McCain was right about expanded drilling.... And oil prices are actually falling. This is our chance to drive in the knife to OPEC and drive oil under $50.

With Iran's nuclear program proceeding and their belligerency scathing, why are we not drilling?