New Tax on Oil Companies

Navtej Kohli very surprised after major fall in the Oil prices and want to recover the market as soon as possible . Navtej Kohli just noticed a new tax on oil companies and want to discuss it.

Now in the market having buzz to take Gov. Brian Schweitzer bill which want increase taxes on Oil Companies when the Oil market now facing low oil prices. So what be reason behind while if we go sometime back , government had given many assumption and tax benefits to oil industry and the price of Oil in world market going higher and higher .But the debate now start that what be impact of tax increment . Proposed taxes plan is $1 for every barrel of oil drilling in Montana and 8 cents for every 1000 cubic feet of natural gas product .The income of these taxes will be spend on teaches salaries. Many News paper remarked this as “Energy for Education” or “E-Squared,” and it is sponsored by by Rep. Kendall Van Dyk, D-Billings, and got a primetime endorsement from Schweitzer during his State of the State address earlier this year.

While addressing Schweitzer told that its not a tax hike but a partial repeal of tax holidays of oil producers which are running since 1999 and it will helpful to increasing the salary of teachers of Montana.

>There was storm of questionnaires had started after this speech moreover republicans leader also blaming that such move can drove away oil and gas companies form Montana. Senate President Bob Story, R-Park City, argued and suggest that better option for increasing teachers salary to increase oil drilling not tax. Also many businesses personalities comes up with many ideas to replace such tax hike.

Patrick Montalban of the Northern Montana Oil and Gas Association. Told to media
“We do need to pay our teachers more, but you don’t put it all on one industry. That’s bad tax policy,”. Also he quoted that such tax might be higher then all taxes since before which may turns into job cutting into oil industries and many people will became joblessJohnny Brumley of Texas oil company Encore said the bill would send the wrong message to oil producers.

“Producers will be afraid to invest in your state because you’ll be seen as changing the rules,” he said.

But proponents of the bill said oil companies are not as sensitive to taxes as the opponents suggested.

“When you hear in a few minutes that oil and gas taxation is a significant factor in the development of oil and gas resources or the sustaining of the oil and gas industry, I urge you to think critically about that statement,” said Robert Decker of the Policy Institute. “If you question that, you’ll find that there’s lots of evidence it is not true.”

One such study comes from Bozeman’s Headwaters Economics. A study it released in October 2008 suggests that oil and gas companies are far more influenced by factors like access to oil reserves and market price than by tax rates.

Oil Prices Reached at lowest Rate

Navtej Kohli  had shows his views to take higher oil prices and global economy , now the crash in the world economy where not only US , UK such like big counties had shaken but also Asian market showed negative results and faces economy melt down . Although many countries government had tried to fueled the market to increase the liquidity but the situation is same

Now the oil industry also comes under the threat of Global economy meltdown and the results can easily be seen by lowest crude oil price which had reached $67 per barrel on 22-oct-2008. There are also tow main reason behind that which are most affected that are first is that the demand of the crude oil is reducing that why OPEC had decided to cut the production and second one dollar’s rally cut the appeal of commodities. While the consumption of US gasoline had declined for the past three months and China economy also goes down and financial crises is now story of stock exchanges across the world. China market is also facing slowdown and fall in the financial crises . Near about 40% of OPEC supplier had decided lower output 1 million barrel a day . Now the dollar had reached to highest point in comparison to Euro after 2006.

Demand for oil is the focus of people’s minds at present and it doesn’t get better,” said Robert Laughlin, senior broker at MF Global Ltd. in London. “A lot of eyes remain focused on China, which is currently experiencing a very public economic slowdown.”
Crude oil for December delivery slid as much as $3.70, or 5.1 percent, to $68.48 a barrel on the New York Mercantile Exchange. It was at $68.96 as of 9:04 a.m. local time.

The November contract expired yesterday, after declining $3.36 to settle at $70.89 a barrel. Oil futures, which have tumbled 53 percent from July’s record of $147.27, are down 21 percent from a year ago.
U.S. gasoline demand dropped 6.4 percent last week from a year earlier, the 26th consecutive weekly decline, a MasterCard Inc. report showed yesterday.
Negative Data’ We have a lot of negative economic data, especially in the U.S. and also in Europe,” said Andy Sommeran analyst with HSH Nordbank in Hamburg. “These are the negatives that are playing on the market.”
Dollar rose that’s why US had reached at maximum rate $1.28 per euro which be maximum rate since November 2006.
On the other hand The Organization of Petroleum Exporting Countries may disregard pleas from oil-consuming nations on the brink of recession and cut output this week.

Now it will be decided in the Vienna meeting that that OPEC will decide more lower production 1miilion barrel a day. That’s more oil than Australia consumes. OPEC also may signal plans for an additional reduction of at least 500,000 barrels a day by early 2009. Iran OPEC which is the second largest producer are considering to cut production by 2 million to 2.5 million a day also Ministers from Algeria, Libya, and Qatar have said OPEC, which provides 40 percent of the world’s oil, will need to trim supplies. OPEC giant and also leader Saudi Arabia which is also largest producer not commentated yet over that matter. But OPEC also expressed his vision that excess of supply at the end of the  of the year and start of 2009, the group’s Secretary General Navtej Kohli unable to say little a bit over that matter , because this having both good and bad effect . It might be possible that Oil industry will be affected but on the other hand its be good news for the consumer might be they will get fuel for vehicle on cheap rate .

Drill More Oil relief from US Government

Navtej Kohli want more relaxation should be given to all power sector company such they can able to supply power according to needs .Sometimes company have suffer because of Government policies which badly affect the company consumption and power supply . On the other hand government concerns are environment, health and public safety and other business and other commercial issue then came after that . But each and every government are under pressure to take hike in fuel prices and increasing oil demands. Yet there are many counties like India which are providing oil companies to many subsidies, but still the cost of Oil and petrol are out of control.
   Like that while US government polices for oil drilling is concerns there are many flaws which affect oil companies smooth run. While Republicans political attack over the high gasoline prices for near about one month makes House Democrats to prepare legislation to relax a decades-old ban on oil drilling along much of the nation’s coastline.
   While, its legislation was planned to be assembled on Wednesday and vote for this scheduled on Thursday, because this is the idea to make utility companies to generate more power from the renewable sources . There are also many plans for providing more assumption and other tax benefits for alternatives energy likes wind power and institute new conservation programs.
The measure, which would retain current restrictions on drilling off the Gulf Coast of Florida, would repeal some federal subsidies for oil companies and seek to improve the collection of royalty payments.
While Speaker  Nancy Pelosi  had told “Our energy legislation will bring down gas prices, protect taxpayers, invest in clean renewable energy and provide an American-owned energy policy that the Bush-McCain Republicans have failed to deliver for the past eight years,”
Senate develops a plan as a proposal, which likes be stark reversal for Ms. Pelosi, Demarcate of California,  who was opposed a vote on an expansion  of offshore drilling after being part of the coalition that has kept the coastal ban in place since the 1980s.
 But on the other hand Republicans takes advantages over that issue by accusing Democrats for opposing the domestic production which can lower gas prices and dependency upon foreign dependency for oil. Democrats claims its be golden opportunity for Republicans to consider again his negative mind and work for  prosperity and progress and also reducing the oil prices to relief for high prices and lack of supply .
While on the other hand Republicans says in reply that they had forced the Democratic for drilling but current proposal might be not be able to full fill the requirement.
Another Republican leader, who is Representative of Ohio and names is John A. Boehner had pointed out that  “They are trying to pull a hoax on the American people, something that looks like an energy plan but does nothing about more oil and gas and more American-made energy,” and also says that  “That’s because their caucus for 30 years has blocked every attempt to open up   more drilling for oil and gas in America.”
Because of Democratic federal government could lease drilling rights 50 to 100 miles off a state’s coastline as long as a state affirmatively “opts in” by passing a state law and waters beyond 100 miles would be open to federal leasing. On the other hand National marine monuments and sanctuaries had withdrawn from leasing program. There is also being offer from the Republicans which allow drilling as close as within 12 miles of the coastlines. Democrats also claiming that proposal are attracting board support lawmakers, appeasing conservatives and democrats also want more drilling and also long support for those who are protesting to protect the coastlines of states likes California. There are some many claiming comes from the party officials such that  Democrats  must be stayed in the party and support  more aggressive Republicans alternatives.
     During 1982 , Congress extending the annual ban on oil leasing off the Atlantic and Pacific coast because of  risk from oil spills and oil industry allies often sought to overturn it, but have regularly fallen short. But while the current situation is concern ban on the drilling is not beneficiary according to Democratic leader.
Representative of Illinois and also chairman of the House Democratic Caucus. Democrats Rahm Emanuel giving their view “ however, that the Republican approach is too reliant on new oil production” and  he also pointed “That leaves you addicted to oil,” “Our strategy is tap domestic production but fund the new technologies in the wind, solar and other areas, that will lead towards American’s energy independence.”
   That be true for that giving the oil company to drilling more area for oil is good for nation but government have to prepare for environments community strong oppose and NGO protest. Besides that many experts says that Government have to see more alternatives option for future .
   Navtej Kohli many times elaborates that government have to check oil production and consumption balance on regular basis. Each and every county facing the same problem. The proposal of giving the oil companies to drill more oil is be good and every party has to realize its needs.

Oil prices rose modestly after BTC pipeline blast

Navtej Kohli’s blog brings update on unsteady oil prices.

World oil prices rebounded modestly from recent falls since a pipeline carrying crude from Central Asia to the West exploded locking up the oil supply for about 15 days tentatively.

New York’s main contract, light sweet crude for September delivery rose 1.44 dollars to close at 120.02 dollars a barrel.

In London, Brent North Sea crude for September edged up 0.86 cents to settle at 117.86 dollars per barrel.

A fire that started on Tuesday was likely to continue burning for another two days until the oil remaining in the pipeline runs out, after which repairs would begin.

Despite modest price gains on Thursday, the oil market has dived lower this week on mounting concern that slower economic growth in the United States, the world’s thirstiest energy guzzler, would translate into a decline in global energy demand.

The US government reported Monday that consumer spending, which fuels two-thirds of US output, had cooled in June and inflationary pressures accelerated.

Prices extended their slide on Tuesday as signs of a slowing global economy raised further doubts about demand.

Crude futures also lost ground on Wednesday after news of a surprise jump in US oil reserves, traders said.

The US Department of Energy announced in its weekly report that American crude reserves had increased by 1.7 million barrels in the week ended August 1.

The reading caught the market off guard because expectations had been for a 200,000-barrel decline.

Traders are closely tracking the level of US gasoline stockpiles amid the ongoing peak-demand summer driving season, when many Americans normally take to the roads for their summer holidays.

Oil futures have shed about 20 percent in value since hitting record highs above 147 dollars per barrel on July 11.

“Overall, the market remains at a crossroad. Market participants are torn between persistent fears over slowing energy demand and potentials for further supply disruptions,” said Sucden analyst Andrey Kryuchenkov.

Finding Alternates? Navtej Kohli

Navtej Kohli Blog brings another topic worth mulling over!

One of the biggest challenges the human race faces today is finding and using alternative energy sources. The push for means of generating electricity has been around for over 100 years, but when oil and coal-fired generators produced power inexpensively, the world put the search for alternative energy sources on the back burner for a number of years.

Finding and using alternative energy sources is one of the biggest challenges for us today. As, our coal and oil reservoirs are depleting, it time to pull our socks and get going in search of some alternate energy source.

I have repeated this thing over and over again in my blog. We cannot procrastinate any longer now!

Since years we have been hearing claims of converting wind, water and sun into renewable energy sources that will replace oil or natural gas. Nothing really promising, however, can be seen till date. Researchers have also seen potential in geothermal energy, but nothing concrete has come up as yet.

For many people the switch to alternative energy sources is a matter of finding the type of alternative power that works the best in their particular geographical location. Persons who live in areas that have limited exposure to the sun for example, may not be too excited about using solar panels to supply power. When the sun goes down for an extended number of days, the town can go dark.

In some of those areas, wind is not a problem as it seems to blow nearly every day. Using wind power to turn turbines to generate electricity can work there, but may not work in other areas that experience less windy conditions. Another of the alternative energy sources, hydropower uses the power of rivers to turn generators, but the cost of the infrastructure to get power to the people from the generator may still be high for long range use.

With the three major alternative energy sources continuing to be researched and advanced, the need for an answer to out problem becomes more evident every time a person receives their electric bill, or fills their car with gas.

The resources that we have left on the planet are running out. Do your part to keep educated on the latest changes in technology and any up to date with the issues at hand to learn what you can do to help solve the energy crisis.

Climate Changes Risks Jobs – Navtej Kohli

MORE than three million Australian jobs are under threat from efforts to tackle climate change ( CSIRO findings). Navtej Kohli Blog brings an broader insight:

CSIRO says that workers will find new “green-collar” jobs as net employment surges in the long-term.
The report’s findings show that despite the introduction of an emissions trading scheme in 2010, employment will grow by between 2.6 and 3.3 million jobs by 2025.
“Jobs continue to grow strongly,” the report found.
Employment is tipped to drop in some sectors after the introduction of the trading scheme, but is forecast to recover from 2017, and to increase in the long-term to higher levels than the present.
Net job growth was predicted in mining, energy, industry and farming.
New green-collar jobs will be created in renewable energy, constructing green buildings and appliances, and developing alternative transport.
The report urges governments and training providers to develop strategies for skilling green-collar workers.
Australian Greens leader Bob Brown said the report showed millions of green jobs could be created – and they would be good jobs too.
Workers would feel good about their new green jobs and about helping to save the planet.

The green jobs would be better for workers’ health, their incomes, and their “spirit”.
However, federal and state governments would have to develop strategies to help create green jobs.

Navtej Kohli on Living Well With Global Warming

Welcome to Navtej Kohli Blog. The onus of our today’s post is how to live well with looming global Warming threat. Navtej Kohli gives some tips:

As glaciers and polar ice are melting, problems like rising ocean levels, too hot/dry weather, huge forest fires, water restrictions, crop failure are becoming more apparent.

Almost all of us have encountered one or the other of these problems every so often. Global warming and climate change are reality now. We are living with it every moment of our life.

It is as huge problem. Now how do you expect to cure a problem, which has gone beyond your control?

It is foolish on you part if you’re expecting some miraculous scientific break-through so they ever-responsible ‘They’ will fix the Earth. Don’t dwell into delusions.

It’s a wake up call; get up before it’s too late.
Our planet is at stake, so are we!
It’s a serious matter, really really serious.

So, is our dream of a healthy planet fading?

Ummm…Maybe, maybe not.

Our planet is changing rapidly. We have great challenges ahead, as now it is too late to stop global warming. Earth has undergone an irreversible change and unfortunately for the worse.

But, there is something that can still be done. We can change the world, united or divided howsoever. Confused? Let me explain…
Remember Darwin’s “Survival of the Fittest” Theory
I think you do
Get Real guys! There is just one way to get out of this mess i.e. Alternative Energy

Yes, you heard it right! We desperately do need to switch to renewable energy sources.

It’s simple and it’s hard work. No way out of that.

Hate it or love it, there is no middle ground.

So better start learning now:

Engage with others to build positive relationship, where you live, work and play

Pay attention to other’s needs and that of the environment

Take responsibility for the situation you’re in

Care for others and the environment competently

Be assertive and use your humour and creativity

Use the ‘regular’ renewable alternate energy sources, and recycle too.

Nothing is under our control, true. But remember, efforts never know waste. At least try before you surrender the fort.

Oil prices on the rise again – Navtej Kohli

If you want to know the latest news in oil sector and also wish to keep track of the wavering oil prices, Navtej Kohli wordpress blog is your one stop destination.

After two days of decline, prices jump $6 in early trading. Refiners have resisted buying more oil during the latest price run-up, leading to an unexpectedly large drop in U.S. supplies.

Oil prices jumped more than $6 in early trading today after the government reported an unexpectedly large drop in crude stocks over the last week.

Traders reacted quickly, sending the cost of light, sweet crude for July delivery as high as $138.30 a barrel, reversing course in dramatic fashion after two days of retreat. The oil contract backed off to settle at $136.42, up $5.11 on the New York Mercantile Exchange, short of Friday’s record close of $138.54.

That means more pain for drivers, who have been hit with a steady string of fresh price records for gasoline and diesel at the pump.

The average cost of self-serve regular gasoline rose today to $4.052 a gallon nationwide and $4.496 in California, according to AAA’s daily price survey. The average cost of diesel increased to $4.792 a gallon nationwide, and to $5.128 a gallon in California.

Navtej Kohli looks into Water Fuel Technology

Now, when Oil is at record prices, its time to scout some alternate sources. Water Fuel Technology looks promising. Navtej Kohli looks into all the practicalities of this new concept.

The interest in harvesting fuel from water has increased of late with oil and gasoline prices reaching record levels. Water fuel technology is not a new concept. Evidences of running internal combustion engine from hydrogen can be traced back from early 19th century.

Runnig your car on water is a safe and economic alternative to using expensive gasoline. You won’t be able to run your car on water alone. However, by installing a simple do it yourself conversion kit to your car you will be able to use water as a catalyst, or booster to the gasoline you burn.
Sounds impossible? Well it’s true…

The conversion kit you will install takes a small amount of electricity from your car battery and a small amount of water. When mixed in adequate proportions they form a gas call HHO – two parts hydrogen and one part oxygen. This HHO, also called Brown’s gas, when introduced into your car’s engine will help split the gasoline/air mixture droplets into a finer mist. This will cause it to burn more efficiently and more completely.

The water is being split into hydrogen and oxygen with the simple homemade device you install yourself. It is fed into the unconverted engine…same gasoline system, same computer, etc., etc. You are not running your car on hydrogen. You will not actually run your car on water. Your car will still run on gasoline. You are simply using the HHO as a booster.

Another of the important facts about water fuel technology is that the cost for converting your car to run on water is reasonable. You will absolutely need guidance, or plans and blueprints. They will cost you anywhere from around $50 to upwards of $200. Pick a plan that offers good technical support and you can expect to pay somewhere in the middle of that price range. Parts for the actual kit will run between $20 and $60. They will be available at any hardware or auto parts store.

You can feel safe adding one of these conversion kits to your car. They will not void your warranty. The IRS even offers some tax incentives to you for using green technology.

The above-mentioned facts should help you make a decision about whether or not you agree that it is time to run your on water. Knowing that these systems will increase fuel mileage by up to 50% makes it almost necessary to learn how to use water as fuel.

Crude oil prices drop – Navtej Kohli

Navtej Kohli is constantly worried about the searing oil prices. Oil prices, if continue to rise, will soon bring the entire world to a standstill. “Despite of such massive scale explorations, we are still in dearth of oil”  says Navtej Kohli.

However, Wednesday brought a respite with crude oil prices dropping more than $160 per barrel.

Crude oil prices dropped more than $160 per barrel on the New York Mercantile Exchange on Wednesday.

The U.S. Energy Information Administration said crude oil and gasoline inventories dropped on the week, but oil prices lowered, an indication that domestic oil demand is waning.

On the exchange, crude oil prices fell $1.61 Wednesday to $122.21 per barrel. Heating oil prices rose 0.0055 cents in late trading to $3.5513 per gallon. Reformulated blendstock gasoline prices fell 0.0076 cents to $3.1875 per gallon. Natural gas prices rose 0.207 cents to $12.428 per million British thermal units.

At the pump, the national average price for a gallon of unleaded gasoline reached $3.983, up from Tuesday’s price of $3.978.

Source: UPI