News from the WSJ. Proposed federal legislation aimed at curbing global warming would drastically reduce domestic fuel production, according to a new study commissioned by the oil industry as part of its campaign to oppose new restrictions.
The report's findings, which are expected to be released Monday, project that by 2030, U.S. refining production could drop 17% from today's levels if the climate bill is passed as currently proposed. The drop would have to be made up by foreign imports, the study says, meaning the U.S. could end up relying on other countries for 19.4% of its refined fuel -- nearly twice the amount it imports today.
The industry sees the climate-change bill sponsored by U.S. Reps. Henry Waxman (D., Calif.) and Ed Markey (D., Mass.) as the harbinger of a grimmer future. Proponents of the law say its costs would be minimal and that it would create millions of new jobs in renewable-energy industries and help steer the U.S. away from a dirty fuel source.
My point. Nobody knows for sure. If they knew all the legislation and regulations passed since day one would have created an ideal world for us. I do not see an ideal world. The opposite. A very unstable environment mired with uncertainties.
One more point. The government is deciding for us which industries will do well in the future. Governments have never had a good batting average in making these kind of decisions. Will they be right this time? What about natural gas?
To find out more about my in depth view of the markets and my strategy just visit our website https://www.peterdag.com/ where you can review The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific money management needs.
I will be happy to speak to your investment group on how the business cycle impacts investment strategies and the choice of asset classes.
George Dagnino, PhD
Editor, since 1977
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