Energy Bill and Tulsa

[cannon_fodder]

An Energy Bill was signed yesterday that will have some effects in Tulsa, trying to guess what they may be:

1) Mandate for 15B gallons of corn ethanol.

This will raise our cost of gasoline, as well as feed stock for cattle, poultry, and our food while consuming few resources really from Tulsa. Some manufacturing as the infrastructure for an ethanol plant is similar to that of a refinery (correct my ignorance if I'm wrong here).

2) 21B gallons of advance bio.

Tulsa based Syntroluem stands win on this one with their research lab working on just such systems.  As does Oklahoma grown switch grass.  Also is likely to utilize some of our manufacturing base.

3) Tax incentives stay

Tax incentives for domestic production were renewed.  Obviously good for Tulsa based producers as well as lease holders.  Oklahoma is the nations #2 producer of Natural gas and these incentives should see our gas production increase (rumor has it deep South East Oklahoma gas fields are going to start production in earnest).

4) Fuel Economy 35mpg by 2020

No significant effects on Oklahoma really.  We drive lots of trucks, but they are exempt if not "light trucks."  Wont effect production etc. in Oklahoma really - but significant enough to at least get a mention (Europe has been at 35+ for some time now).

5) Lapse of Wind Energy Incentives

essentially the Wind energy credits have been on  he books since 1996.  Renewed each year and growing in some instances.  It was renewed for 2 years in 2005 and led to a big BOOM in wind.  Criticized as inefficient (estimates are actual production is 10% of the state capacity) the incentives were allowed to lapse.  Causing outright panic in the industry.

HOWEVER, the farm bill included some incentives for Wind power (yeah, that makes sense...).  But the industry is still crying foul and preaching doom and gloom.  According to them, production was starting to ramp up with the guarantees and now it will cease.  The tax incentives are up again next year for discussion.

For TULSA... this means that the planned production facility might be in jeopardy and the proposed Cherokee Wind Farm in northern Osage could be on the ropes (have not seen a report on this, extrapolating).  

6) Similar tax incentives lost for solar

But no notable effects on Tulsa.
- - -

That's what I saw in my reading of the "executive summary."  Did I miss anything?  Comments?

[Chicken Little]

Got a link? Thanks.

[Conan71]

I saw "Energy Bill" and thought maybe Spoonbill's cousin had joined up. []

There's some good and bad in all this.  In some ways, I see the mandates on Bio-D and Ethanol as being an extension of the farm subsidy programs of years past.  Instead of CRP programs which paid farmers not to grow, now the government is upping grain prices and production via their edict.  20 or 30 years ago when there were fewer corporate farming giants, no big deal.  But the pool of independent farmers who benefit is growing smaller by the year.  It's more corporate welfare no matter how you slice it.

Apparently ethanol has lowered QT's pump prices between a nickel and a dime, I don't see the higher cost there.  It's also stopped a pinging I was starting to get in my truck with 140K miles on it.  It still has many flaws as a stand-alone motor fuel, but 10 or 15% less dependence on foreign oil is a good thing.

Bio-D is really the best thing going forward, lower benzene emissions, and cutting petroleum consumption from trains, trucks, and even jet aircraft is well worth it.

35 MPG by 2020 is a fart in the wind and will likely be repealed by the big three's lobbyists in the coming years.

[cannon_fodder]

Here is a link to the full text for the "Energy Independence and Security Act of 2007":


Library of Congress Page (most helpful, includes link to summary):
LOC

White house fact sheet:
http://www.whitehouse.gov/news/releases/2007/12/20071219-1.html

Speaker of the House fact sheet:
http://www.speaker.gov/legislation?id=0133

The wind industry expert was from an NPR interview aired yesterday.  I did not immediately find a link.

[edit]hotlinked Library of Congress REALLY long link[/edit]