Jeff Kissel, who recently joined EPRINC as a Distinguished Fellow, provides a brief commentary on why low oil prices may reduce the economic pain from a (likely) forthcoming increase in interest rates from the Fed.
Federal Gasoline TaxesRead More
Nobody wants to see their gasoline taxes go up, but the federal excise tax on gasoline has remained at 18.4 cents a gallon since 1993. Could it play a role in helping to get tax reform approved and should it be adjusted at least for inflation? Lucian Pugliaresi, Larry Goldstein, and Will Pack take us through a short analysis on the gasoline tax, its upside as a revenue raiser and potential instrument for regulatory reform in the transportation fuels sector and its downside as a regressive tax. The paper can be found here.
UNDERSTANDING THE LANDMINES IN THE TAX REFORM INITIATIVERead More
Larry Goldstein and Lucian Pugliaresi comment on the proposed Border Adjustment Tax, the so-called BAT. Larry is a member of EPRINC’s board of trustees and its past president. Lucian Pugliaresi is President of EPRINC. Their commentary can be found here.
EPRINC and Macroeconomic Advisers Initiate Assessment of US Oil Price DeclineRead MoreEPRINC and Macroeconomic Advisers are undertaking an assessment of the broad consequences to U.S. investment and economic growth from the rapid decline in oil prices. The attached paper by Joel Prakken of Macroeconomic Advisers examines two important forces at work from the oil price decline — the expansion of the national economy and the concurrent reduction in investment in oil and gas extraction. The report concludes that the U.S. will likely see an expansion of economic growth, but it is attenuated by about one-third from lower investment in the U.S. petroleum industry.
RINs Around the Rosy App Available for iPhone and iPadRead More
EPRINC’s RFS compliance calculator has been released as a free download on Apple’s App Store. Now you can model various RFS and refined product market scenarios until your thumbs fall off. The app is optimized for iPhone 5/5s and compatible with iPad.
Comments Submitted to DOE Regarding NERA’s LNG Export StudyRead More
We welcome the opportunity to comment on the report prepared by National Economic Research Associates (NERA) for the U.S. DOE on the benefits of U.S. LNG exports. NERA concluded that for a wide range of scenarios,
…… the U.S. was projected to gain net economic benefits from allowing LNG exports. Moreover, for every one of the market scenarios examined, net economic benefits increased as the level of LNG exports increased. In particular, scenarios with unlimited exports always had higher net economic benefits than corresponding cases with limited exports.
The heart wants what the heart wants, but like the Shadow, the market knows what the market knows, and markets are impatient. The next formal OPEC meeting is in June and there are some who believe that OPEC will wait until then to deal with the imbalance in the market between supply and demand. OPEC may want to wait but it will be the price set in the market that will dictate this calendar.
Picture if you can a patient in a hospital who had been very ill but now is getting better. The hospital is reluctant to fully release the patient but knows they have to do something. Remember, the patient with the initial help of the hospital is well on his way to recovery.
The Oxford Institute for Energy Studies publishes Ivan Sandrea’s US Shale Gas and Tight Oil Industry Performance: Challenges and Opportunities on March 21, 2014. The report addresses the financial feasibility of the US Shale Revolution.