Investments

Bank Of America Investment After three years of false starts, Congress could soon pass a sweeping energy bill packed with tax breaks and other benefits for oil, natural gas, coal and power companies - a package that could cost taxpayers nearly $53 billion over the next 10 years.

Energy industry regulator Ofgem has proposed a billion investment in the UK's energy network in order to replace old infrastructure.

Investment Opportunity Recently, bitter disagreements on issues such as power grid rules and ethanol have bogged down the bill, possibly delaying a vote by House and Senate negotiators until January. But some analysts say the Aug. 14 blackout and soaring gasoline prices will generate the support needed to pass a bill this year or early in the new year.

Your Guide to Energy Efficient Windows Replacement windows can reduce your energy bills from 15%-30% each month, so going green with energy efficient windows is a smart investment. To maximize your savings, you should understand how your home windows affect your energy bill and how new windows can lower those costs. An Energy Efficient Home Must Include Energy Efficient Windows Your house may be well insulated, but windows are thin and glass cannot block significant heat flow. Windows are often the primary source of heat loss, especially bay windows or similar home windows with extra surface area.

Banc Of America Investment "If you look at the fundamentals, who benefits from the bill and all the different reasons why members of Congress are likely to vote for it in the end, we're looking at excellent chances of getting the bill done this year," said Prudential Securities Washington analyst James Lucier.

Even without the Arctic drilling provisions, the bill would have been a wildly generous gift for the energy industry. The very modest clean energy provisions in the bill do not outweigh the outrageous taxpayer subsidies for the fossil fuel and nuclear industry. What's worse, the bill would repeal key consumer protections against an industry making headlines for corporate abuses.

Banking Investment The bill is good news for a broad range of energy companies - from oil producer ConocoPhillips COP.N and power company Exelon Corp. EXC.N to drillers like Nabors Industries NBR.A .

Site Map Home Join Our Network Contact Us Your Guide to Energy Efficient Windows Replacement windows can reduce your energy bills from 15%-30% each month, so going green with energy efficient windows is a smart investment. To maximize your savings, you should understand how your home windows affect your energy bill and how new windows can lower those costs.

Investment Solution Strategic It has tax credits to promote drilling unconventional sources of gas, changes the tax code to encourage pipeline and power grid investments and takes steps to open more federal lands to drilling.

Learn about the gas and electricity industry, compare suppliers and save money on your energy bills with uSwitch.com.

Investment Banking Services According to Joint Committee on Taxation estimates, the bill's provisions would reduce net tax payments by $16 billion to $19 billion over the next 10 years.

Bank Investment "Longer term, there's a lot of stuff in the bill that could move these stocks," said Friedman Billings Ramsey analyst Jacques Rousseau.

Alternative Investment For utilities, the bill is even more beneficial. There are financial incentives earmarked for nuclear power, cleaner coal-based power and coal-based synthetic fuels. Lawmakers also hope to restructure power transmission and repeal Depression-era rules to encourage consolidation and investment from outside the energy industry.

Online Investment Services Critics complain the bill enriches companies that shaped the Bush-Cheney energy policy behind closed doors in 2001. The legislation, they say, does not do enough to reduce energy consumption, curb pollution or develop renewable resources.

Accompany Essential Investment "The industry is reaping huge profits from tax credits, yet there are no benefits to the public," said Navin Nayak, an analyst at consumer advocates U.S. Public Interest Research Group. "It's a waste of money."

Investment Company Final figures are likely to change, but legislation passed earlier this year indicates the bill will carry a hefty price tag.

Investment Management Solution The Congressional Budget Office estimates the bill's total cost to taxpayers, including lost revenue, would reach $40.3 billion through 2008 and $52.6 billion over the next decade.

Investment Management Services Energy Secretary Spencer Abraham, in a Sept 10 memo, told lawmakers the tax impact should not exceed $8 billion.

Guide Investment Stock Still, sponsors say the bill is needed to boost U.S. security and reduce dependence on foreign oil.

Investment Manual Solution For example, there are more than $2.5 billion of "Section 29" credits to encourage production of gas from coal-bed methane, deepwater wells and landfills. Analysts say these credits help coal-bed wells, which take years to reach peak production, compete with conventional gas.

Investment Stock "I don't think there's any doubt, depending on the exact terms of the tax credit, that you would see shifting in capital toward unconventional projects," Devon Energy DVN.A Vice President Don DeCarlo said at a conference earlier this year.

Essential Investment Solution Beyond tax breaks, the bill expands access to domestic resources, most notably opening the Arctic National Wildlife Refuge to drillers. Producers also seek permission to drill in federal lands in the Rocky Mountains.

Citicorp Investment Services The bill may also finally launch construction of a 3,600-mile pipeline to Alaska's North Slope by Exxon Mobil XOM.N , BP BP.L and ConocoPhillips. BP and Conoco seek credits that would kick in if gas prices fall below $3.50 before committing to the $20 billion project.

Fool Guide Investment Motley Ultimately, some analysts say, the most powerful benefit to the industry comes from new tax rules such as a 30 percent depreciation bonus, on top of normal first-year depreciation. This could yield huge savings for an industry that makes big pipeline, power line and other infrastructure investments.

Fidelity Investment Services "The tax cuts pack a wallop for all asset classes, but the energy industry should benefit the most," Prudential Securities' Lucier said.

Investment Management By Joseph A. Giannone
Reuters - 10/13/2003

Topic: Energy

[ Comment, Edit or Article Submission ]