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Why Big Oil Supports a Carbon Tax, NYT Misleads Again

By David Addison | Seeking Alpha | October 14, 2015

… Internationally, many oil and gas majors which need higher energy prices have rallied around the implementation of a carbon tax. Recently, managements of Total, Shell, BP, BG Group, Repsol, Eni, and other state-run firms called for a carbon tax at a climate change conference in Paris.

While a New York Times editorial has suggested that these companies are finally experiencing the global awakening of the collective environmental consciousness, this move is patently self-serving to higher-cost producers who are struggling and will continue to struggle under a lower commodity price regime.

A tax on carbon emissions would incent utilities to shift from coal toward natural gas, thereby providing price uplift to these companies’ products. Also, such a tax would not likely cost the industry anything since regulatory costs would be passed to consumers. However, it would likely require hosts of compliance specialists, placing a disproportionate amount of stress on smaller, more thinly capitalized endeavors. Driving smaller players out of the business with increased regulation would serve two purposes: it allows the larger players to capture market share; and, it would put upward pressure on energy prices as supply would be driven out. … Full article

October 16, 2015 - Posted by | Deception, Economics, Mainstream Media, Warmongering, Malthusian Ideology, Phony Scarcity |

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