Summary
There is no question that the Waxman - Markey Energy Bill with a convoluted cap and trade legislation and with politically softened free carbon certificates for certain industries in certain politically attractive states will lead to higher gasoline prices for all other states. Energy and carbon should be treated even handed across the playing field.
Analysis
Cap and trade should economically - unless politically undone - lead the power companies to convert from coal to natural gas ("NG") fired power plants with over fifty percent reduction of carbon emission. Indeed unconventional NG is abundant and could meet NG demand together with LNG - short time period of about five years - to drastically reduce carbon emissions and reduce imports of foreign gasoline and crude. However, the "Waxman Gang" is planning to give free carbon emission allowances to the coal fired power generators, thus shutting down unconventional NG developments receiving no tax credits and or any other exploration support.
