Windfall Profits Taxes on Oil Companies

As promised, but first a note of explanation about the post below.

I had to get the probe thing out of my system. It seems a lot of politicians want probes, are asking for probes or in the case of Senator Clinton, demanding a probe. I don't know if it's the pols or the J. schools but I wish they'd chill on the probes (see: "Informant's Tip led to ICE Probe").

I have a few things to note on Senator Casey's WPT bill.

Only one of the freshmen Senators (Webb D-VA) that stood with Casey at the press conference have signed on as co-sponsors. In the case of Senator Klobuchar (D-MN), she should probably resist the temptation.

The wording of Casey's bill is almost exactly the same as Senator Dorgan's 2005 WPT bill. Ditto for Senator Durbin's WPT bill. Neither of those old timers have signed on to this latest iteration of their joie de coeur.

If I had to bet, and you gave me 8-5 or better, I'd say they won't be co-sponsors.
Why? He asked rhetorically. One word, agriculture. Take a look at this corn futures chart (ya'll come back now, ya hear). Here's BusinessWeek's top ethanol producing states slideshow.

How awkward would it be to be chatting about windfall profits on one of the Sunday morning talk-shows and get hit by an ag. question?

From Senator Dorgan's website:

"Since 1996, he has served in the Democratic Leadership as an Assistant Democratic Floor Leader, and since 1998, also as Chairman of the Senate Democratic Policy committee. He is the first North Dakotan to serve in the Senate Leadership.

In addition, Senator Dorgan serves on four other Senate Committees. He is Chairman of the Indian Affairs Committee, Chairman of the Energy & Water Appropriations Subcommittee within the Appropriations Committee. Also, he is Chairman of the Energy Subcommittee within the Energy & Natural Resources Committee, and he is a senior member of the Commerce, Science and Transportation Committee where he chairs the Interstate Commerce, Trade and Tourism Subcommittee.

Throughout his career in both the House and Senate, Senator Dorgan has worked to advance the interests of rural America."

Senator Durbin's Illinois is the number two corn producer and the number three ethanol producer.

The freshman Senator from Minnesota (#4 corn; #4 ethanol) may want to leave the co-sponsoring on the windfall profits tax bill to Sen's. Sanders (I-VT) or Whitehouse (D-RI).

I'm curious how the media is going to play gasoline prices this year.

Good Morning America is already hinting at conspiracy and price gouging. We may have to dust off the profit margin comparisons between XOM, BP, CVX and COP vs. DIS, GE, DJ andVIA.

We'll leave NYT out. Good paper; really, really lousy business.

Senate Probe

Probes as promised, windfall taxes next.

Union to shun senator's steroid probe Senator calls for probe into local contamination

Senate resumes debate on controversial probe report

Michael Moore blasts President Bush over federal probe

Nothing to do with probe

Dems Press for Answers in Attorney Probe
Senators: Staffing probe will continue
Stock probe clears Frist
Senate Should Probe INEC - Adudu
Democrats call probe one-sided
Sen. Salazar to sit out ethics probe
Delgado probe watch
MiraCosta billed $195,000 so far for palm tree probe
Domenici subject of Senate probe
Miller to probe 401(k) consultant
O's stay mum on probe
Acquittal of ex-Serono officials won't stop probe
Ethics probe clears Corzine
Informant's tip prompted ICE probe

It must be tough to be a headline writer, I'm sticking with commentary.
Coming up, more on (moron?) windfall profit taxes for big oil.

Schumer goes after oil industry...

Senator calls for refinery probe...

Homer: [gulps]  I suppose you want to probe me.
Well, might as well get it over with.


US senator Clinton targets 'Big Oil'
Democratic presidential hopeful Hillary
Clinton Wednesday demanded a probe...

Edwards finds friendly reception...

...he disagreed with a questioner who proposed a "patriot tax" on gasoline, saying that he'd instead push for a windfall profits tax on oil companies."

"To me, any Democrat would be better than what we have currently — Elmer Fudd seems like a brighter person than our current president," said Sasha Kaplan, a Portland-area parent."

To view this blog as translated by Elmer Fudd, click on the Dialectyzer.

I'll have more on the various taxes and probes in a bit.

Eight Democratic senators propose oil windfall tax

That's the Houston Chronicle headline from April 27.
Senator Amy Klobuchar (D-MN) said: "Oil companies have been ripping us off over and over and over again, and this is going to stop."

The legislation, proposed by Sen. Robert Casey, D-Pa., would impose a 50 percent tax on profits after oil prices rise above $50 a barrel. Here's some of the text:

"...(1) the amount equal to 50 percent of the windfall profit from all barrels of taxable crude oil removed from the property during each taxable year"; "(c) Adjusted Base Price Defined-

`(1) IN GENERAL- For purposes of this chapter, the term `adjusted base price' means $50 for each barrel of taxable crude oil plus an amount equal to--

`(A) such base price, multiplied by

`(B) the inflation adjustment for the calendar year in which the taxable crude oil is removed from the property.

The amount determined under the preceding sentence shall be rounded to the nearest cent...."

I'll have more in the next post.

Venezuela Nationalizes Foreign Oil Rigs

"These companies demand millions for the use of these machines. Faced with this situation, we have decided to nationalize this equipment..."

Your goals are not what you say, your goals are what you do. If you ask yourself the question "Is this use of my limited time on earth furthering my goals?" you tend to auto-correct if you get off track.

For Hugo Chavez, he answers the question, the mask drops and he says to the world "I am a thief."
When dealing with thieves Grandma counseled "All thieves are liars, all liars are thieves"

From: EnergyDaily

The Simpsons on Biofuels, Politics and P.R. Spin

Grandpa Simpson on CAFE Standards:

Marge: Now, I know you haven't liked some of my past suggestions, like switching to the metric system --
Abe: [stammers a little] The metric system is the tool of the devil!
My car gets forty rods to the hogshead and that's the way I likes it.

[hogshead: n 1: a British unit of capacity for alcoholic beverages]

Kang on politics:

Kang: Abortions for all.
[crowd boos]
Very well, no abortions for anyone.
[crowd boos]
Hmm... Abortions for some, miniature American flags for others.
[crowd cheers and waves miniature flags]

Kodos on P.R. spin:

One night, Springfield holds a Dole-Clinton debate. Clinton is giving
the opening speech:

My fellow Americans. As a young boy, I dreamed of being a baseball, but tonight I say,
we must move forward, not backward, upward not forward,
and always twirling, twirling, twirling towards freedom.


The first quote is from episode 2F31 "A Star is Burns"
The latter two are from episode 4F02 "Treehouse of Horrors VII"

In a post a year ago this Thursday, Professor Whitehead at Environmental Economics makes this point regarding Grandpa's fuel economy:
"...which is about 0.00198413 miles per gallon, or about 10.48
feet per gallon (118 547.97 l/100 km, or about 119 m³/100 km)"

Inside the Silicon Valley cleantech investor brain

inside greentech (what's with the e.e. cummings no caps thing? It's as silly as the period rather than the hyphen/dash in phone numbers ca. 1999) had a piece last week giving some insight into current investment thinking on Clean-tech, Greentech and alt-energy.

Don't get me wrong, i.g. is a great source, but for people who have to wade through a lot of print, it's a pain when the design folks burst the shackles imposed by the man, or whatever.

Some cherrypicks:

By contrast, Carol Sands of the Angels' Forum, an affiliation of individual angel investors that also represents an associated "Halo Fund" of others' money, said she's currently staying away from solar companies.
"I'm so tired of solar!..."

Justin Label of Bessemer Venture Partners said his investment criteria specified deals with a low capital-intensive business plan, a low science risk, a proven business model and a team he could believe in.


"Saving the world is not a substitute for being financially successful," said JP Morgan's Dorsey, to an audience that batted few eyes at the comment."

Uranium Futures

Not with a bang but a whimper.

Current open interest, 16. Here's the Nymex contract current session. Friday's settlement was $138.00

Kevin Chan had a post Friday at SeekingAlpha that gathered some of the price predictions for uranium, I edited out about half, so you can get to the important stuff at the bottom of this post:

April 17, 2007 CIBC WORLD MARKETS $140 in 2007, $160 2008
Apr 10 NEAL FRONEMAN, CEO SXR URANIUM ONE $150 end of 2007
Apr 10 LAURENCE ALEXANDER, JEFFREY & CO. $115avg 2007
March 29 ABN AMRO, GLOBAL BANK $140 2007-2010
Feb 27 ABN AMRO, GLOBAL BANK $95 2007
Feb 26 PATRICIA MOHR, SCOTIABANK at least $90, appear headed to $100 end 2007
Jan 29 BRENDAN KYNE, LEEWARD HEDGE FUNDS $100 in 2007, $125 in 2008
Jan 8 RESOURCE CAPITAL RESEARCH $90 mid 2007, $115 late 2008
Jan 7 PATRICIA MOHR, SCOTIABANK $90 by end 2007
Jan 7 ADAM SCHATZKER, RBC CAPITAL MARKETS $100 in 2007
Jan 5 PETER GRANDICH, THE GRANDICH LETTER $100 ?timeline
Dec 21 BART JAWORSKI, RAYMOND JAMES $90 in 2007
Dec 11 ANITA SONI, MERRILL LYNCH $75 in 2007
Nov 6 JEAN-FRANCOIS TARDIF, SPROTT ASSET MANAGEMENT $70 by January 2007
Nov 6 BOB MITCHELL, ADIT CAPITAL MANAGEMENT LP $80-100 ?timeline
Oct 18 DOUG CASEY, CASEY RESEARCH $100-150 ?timeline
Oct 18 GARY STOKER, NUFCOR INTERNATIONAL >$60 in 2007
Sep 12 DEUTSCHE BANK AVERAGE URANIUM PRICE $59 in 2007
Sep 12, 2006 CIBC BANK $70 by end of 2007

Among the bigger houses Deutsche Bank and Mother Merrill seem a bit light.

Speaking of "houses of brokerage", here's News Radio's epiosode #57 "Super Karate Monkey Death Car":

Mr. James: "The original title of this book was 'Jimmy James, Capitalist Lion Tamer' but I see now that it's... 'Jimmy James, Macho Business Donkey Wrestler'... you know what it is... I had the book translated in to Japanese then back in again into English. Macho Business Donkey Wrestler... well there you go... it's got kind of a ring to it don't it?

Anyway, I wanted to read from chapter three... which is the story of my first rise to financial prominence... I had a small house of brokerage on Wall Street... many days no business come to my hut... my hut... but Jimmy has fear? A thousand times no. I never doubted myself for a minute for I knew that my monkey strong bowels were girded with strength like the loins of a dragon ribboned with fat and the opulence of buffalo... dung. ...Glorious sunset of my heart was fading. Soon the super karate monkey death car would park in my space. But Jimmy has fancy plans... and pants to match. The monkey clown horrible karate round and yummy like cute small baby chick would beat the donkey."

By way of EvilZero.com

Great Men

Hi mom. Happy Mother's Day.
This year none of your boys are serving in harms way, but a lot of other mom's kids are. I hope they have good luck and good commanders. Here's a story about two good commanders.

On June 20th, 1944, Vice Admiral Marc Mitscher was commanding Task Force 58: 7 fleet carriers, 8 light fleet carriers, 7 battleships, 8 heavy cruisers, 12 light cruisers, 67 destroyers. An awesome fleet, an awesome responsibility. 98,000 lives in his hands.

One of the fleet's Task Groups had to send out 216 aircrew very late in the afternoon. They knew the planes would be coming back to the carriers in the dark, at the very end of their fuel supplies. Here's how Time Magazine tells the story of the Admiral's beacon for his boys to come home to:

"...Within hours, many of these same aviators owed their lives to the high humanity of their chief, "Pete" Mitscher. On June 20, having dispatched a late afternoon raid of his own on the still-stubborn Ozawa, Mitscher knew his planes would not make it back till after the quick tropical twilight. It was a pitch-black 8:45 p.m. before the first returning planes began circling the decks of TF 58. "Pete" Mitscher then made a decision that endeared him to carrier pilots forever. Heedless of enemy planes and submarines, he ordered the lights turned on. For two hours, in a crazy quilt of light that reminded one homing flyer of "a Hollywood premiere, Chinese New Year's and Fourth of July rolled into one," the planes landed. Eighty pilots, weary and out of gas, splashed into the sea, but relatively few lives were lost." Time June 29, 1953.

Another account of the Admiral's agonizing decision (the Japanese submariners were skillful, brave and deadly) quotes one of the pilots "scared, low on fuel and a little bit lost" when he saw starshells from those 67 destroyers on submarine picket and every searchlight in the fleet criss-crossing the night sky. Talk about leaving the porchlight on!

Why is this story in a blog about climate and investments?

Because another commander who cared deeply about his troops (and his country) had this to say:
(first, the part you know) "...In the councils of government, we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist. "

And the part you may not know:
"...Akin to, and largely responsible for the sweeping changes in our industrial-military posture, has been the technological revolution during recent decades.
In this revolution, research has become central, it also becomes more formalized, complex, and costly. A steadily increasing share is conducted for, by, or at the direction of, the Federal government.
Today, the solitary inventor, tinkering in his shop, has been overshadowed by task forces of scientists in laboratories and testing fields. In the same fashion, the free university, historically the fountainhead of free ideas and scientific discovery, has experienced a revolution in the conduct of research. Partly because of the huge costs involved, a government contract becomes virtually a substitute for intellectual curiosity. For every old blackboard there are now hundreds of new electronic computers.

The prospect of domination of the nation's scholars by Federal employment, project allocations, and the power of money is ever present – and is gravely to be regarded.

Yet, in holding scientific research and discovery in respect, as we should, we must also be alert to the equal and opposite danger that public policy could itself become the captive of a scientific-technological elite."

Eisenhower's Farewell Address to the Nation
January 17, 1961

Power plan dooms world's poor

This is something we will have to be very aware of as we negotiate our way forward.

Some of my friends on the right use the soundbite "wealth makes health".

A look at the history of the last couple hundred years shows a correlation between income and wealth on the one hand and longevity and quality of life on the other.

As always correlation does not always imply causation but in this case it seems the way to bet.

From Wikipedia--"Correlation does not imply causation is a phrase used in the sciences and statistics to emphasize that correlation between two variables does not imply there is a cause-and-effect relationship between the two. Its converse, correlation implies causation, is a logical fallacy by which two events that occur together are prematurely claimed to have a cause-and-effect relationship. It is also known as cum hoc ergo propter hoc (Latin for "with this, therefore because of this") and false cause.

HT: Damon Runyon for one of the clearest eyed statements ever on the human condition:

"The race is not always to the swft nor the battle to the strong but that's the way to bet"

Runyon was one of my heros growing up, even today his grasp of the psychology and zeitgeist give the clearest window into a part of New York society (note small "s")in the 20's and 30's.
Not bad for a "writer and newspaperman"

I apologize for the meandering, back to the story.

Two people who would never be thought of as right-wing, Tim Flannery, Australian "Man of the Year" and James Lovelock ("The revenge of Gaia") are referenced:

"In his bestseller The Weather Makers, scientist/conservationist Tim Flannery discusses in a chapter titled "2084: The Carbon Dictatorship?" the possibility of an Earth Commission for Thermostatic Control (ECTC) one day zeroing in on the major cause of man-made global warming -- "the total number of people on the planet."

James Lovelock, a founder of the global green movement, criticizes selfish, ill-informed, affluent environmental radicals in his book, The Revenge of Gaia, for condemning millions of people living in the developing world to death from malaria because of their overly hysterical campaign against the pesticide DDT.

From the Edmonton Sun

Assessment of U.S. Cap-and-Trade Proposals

Weekend reading from MIT.

From the abstract:

"Initial period prices for the first group of proposals, in carbon dioxide equivalents, are estimated between $30 and $50 per ton CO2-e depending on where each falls in the 50% to 80% range, with these prices rising by a factor of four by 2050."

HT: DeSmogblog (I think. You decide: "And finally, and not surpirsingly (sic), Sen. James Inhofe (R-OK), waved about a report claiming that curbing greenhouse gas would cost the United States $366 billion a year by 2015".)
This was not a well written post. At first I couldn't discern whether the writer disliked the senator or the report. What report was "waved about" by the senator?

I believe this is the paper in question.

Alternate weekend reading list:

"The Associated Press Stylebook"

"Sister Bernadette's Barking Dog: The Quirky History and Lost Art of Diagramming Sentences"

'The Wall Street Journal Guide to Business Style and Usage"

"Strunk & White"

Pity Planktos' P.R. People

A little alliteration to start the day.

I have a confession to make. I have a morbid fascination with this kind of deal.

A company incorporated in Nevada (the laws are a bit different from Delaware [as the good people at _____ are wellaware])

A stock trading on the OTC bulletin board.

A garbage barge worth of stock lurking offshore. I haven't checked the Panama address but I wouldn't be surprised to find a Panamanian lawyer acting as a nominee.

Private placements done at discounts to market price.

A slick website but meaningles revenues.

This is what the P.R. guy has to work with.
Despite the red flags they brazen on.
In a massive stroke of good fortune they get major ink in the New York Times.

And then The IPCC comes out and says:

17. Geo-engineering options, such as ocean fertilization to remove CO2 directly from the atmosphere, or blocking sunlight by bringing material into the upper atmosphere, remain largely speculative and unproven, and with the risk of unknown side-effects. Reliable cost estimates for these options have not been published.

That's gotta hurt. So knowing this is coming from the IPCC you put out press releases with headlines like "Planktos/KlimaFa Offer Market-Heartening News at Cologne."

PhysOrg says: "Ocean's twilight zone may be a key to understanding climate change."
etcGroup says: Geoengineers to Foul Galapagos Seas-Defying Climate Panel Warning
ecotalityblog says: "IPCC slams "GeoEngineering"
RealClimate has some very smart reader comments on their post titled "Thin Soup and a Thin Story"

I say: Neither long nor short am I.
The stock promoters say: Ours is not to reason why, ours is just to buy and buy.

So pity Planktos' P.R. people. On the big coverage by the NYT, the stock didn't budge.

How to Stay Current in a Fast Changing World

Information Arbitrage has five bullet points that anyone in any business can use to either stay current in their field and/or avoid getting swamped by the flood of information.

Apres le Deluge, blog!

U.N.: Biofuels Could Devastate Environment

CBS has a Dervish of a headline (spin, spin, spin; they're spinning so fast I can't seem to link it).
Here's the story from the Environmental News Network: U.N. Raises Possible Biofuel Problems.

Rupert Murdoch launches effort to green News Corp...

"... but also a vow to weave climate messaging into the content and programming of News Corp.'s many holdings."

Grist has an 800 word piece, some of it exclusive.
After I picked myself up off the floor, I thought of this song:
"Tradition has it that when Cornwallis surrendered at Yorktown (1781) the British played this tune. There is some debate as to whether that is myth or fact."

The World Turned Upside Down

Intelligent Cars As Fuel-Efficient As Hybrids

This is as much about infrastructure as vehicles but this quote caught my eye:

"If simple and effective sensor networks can be installed in cities and cars, people who are interested in fuel-savings benefits will question the value of purchasing hybrids, given their hefty price tag, the paper suggests."

From SpaceMart

Ethanol sector slapped on bad VeraSun earnings

From Inside Greentech:

"Partly blaming high corn prices, prominent American ethanol maker VeraSun Energy (NYSE: VSE) dramatically missed analyst estimates in earnings this morning."

"VeraSun paid $4.05 per bushel of corn in the recent quarter, on average, compared with $1.87 a bushel in last year's first quarter."

The Brainstorm From Hell

That's how Grist is headlining "The U.N. Framework Convention on Climate Change bonanza"

With quotes like this the head seems pretty apt: " "What you traditionally find in the run-up to an important negotiating moment," says top U.N. climate official Yvo de Boer, "is that not everybody is willing to put their cards on the table."

Mann these folks fly around a lot. Bonn in the Northern Hemisphere spring, Bali in December. Brutal.

TransUranic Express

I thought I'd have a Googlewhack with that one. Nope, 50,000 hits. Throw a quote mark in and I get down to one hit but that's cheating.

There are a few nuggets from the U308,235, 238: Np239, Pu239 world today. First, an ad from ebay:

U 235
Looking for U 235?
Find exactly what you want today.
www.eBay.com

StockInterview.com has this story "U.S. Government May Sell ‘Very Small’ Amount of Uranium in 2007" which goes in depth on supply issues and concerns. A must read if you want exposure to the new Uranium futures.

David Urban has a couple Uranium stock touts at SeekingAlpha: The Uranium Bull Market Is Far From Over - Two Stocks To Watch

Finally, BajaeEnergyBlog reposts Why You're Better Off Without Uranium Energy Corp. which I believe I first saw at Citron Research who now post "Citron Calls for a Regulatory Investigation of Uranium Energy (URME)."

I can't believe I just used the phrase "Uranium stock touts"

Wayback Machine, take me to Moab, Utah: July 6, 1952!

American Heritage Magazine, "THE TIME OF THE GREAT FEVER";
Time Magazine April 5, 1954 "Pennies for Uranium";
Wikipedia, Charlie Steen.

Farm subsidies, EXPOSED!

Okay, I'll stop doing that.
I was at the Brooklyn Daily Eagle Online searchable database last night and absorbed some 1800's newspaper style/pacing. We'll switch to Readers Digest (modern).

"What do Ken Lay, Ted Turner, Sam Donaldson and David Rockefeller all have in common?"

"From 1995 to 2005, Lay, the now-deceased Enron CEO, got $23,326 for conservation land in Missouri; business mogul Turner raked in $590,823 for farms in Nebraska, South Dakota, Montana and Florida; Donaldson supplemented his earnings as a broadcast journalist with $88,308 for a livestock ranch in New Mexico; and Rockefeller, a financier and philanthropist, got $553,782 for two farms in New York."

The article mentions the 90210 zip code but that was so last century. I track the farmers in 10022 (66 of 'em, yup); 06831 (39) and 60045 (187).

All this was really just an excuse to share a couple of my favorite bookmarks:

The Brooklyn Public Library's Daily Eagle, Online database.
The Environmental Working Group's "Farm Subsidy Database"

Both of them do good work if you're looking for a place to send a few bucks.

The RD story is here. (They've got a daytime job, they're doin' alright) Wallace Foundation 2005 grants: $56,665,282.

Darkest secrets, EXPOSED!

“Do you have a moment for the environment, sir?”
“No,” I barked as I evaded her, “I don’t!”

...is it possible that all this marketing is cheapening the cause?
Yuban “sustainable development” coffee.(?)

Mr. Climateer, please answer the committee.
Do you now, or have you ever,
read the Times Fashion & Style section?

Edit 6:37 I changed the head. Remember this story from CFO.com?

North Korea endorses IPCC, goes Solar

They didn't really endorse the IPCC; That has a hint of Onion in it.

So did this issue of The Economist from Feb. 13, 2003
Projecting greenhouse-gas emissions which had a letter to the editor pointing out that the IPCC economic models using Official Exchange Rates "...leading to such conclusions as the average citizen in North Korea will be richer than the average citizen in United States in 2100"

North Korea signed the Kyoto Protocol April 27, 2005.
Here's the story North Korea to import solar power to give soldiers TVs

Friends of the Earth, the IPCC and Nuclear Energy

"... Friends of the Earth found some proposals disappointing. Particularly troubling was a recommendation to expand the use of nuclear power."
From FOE

And what the SPM said:

"Given costs relative to other supply options, nuclear power, which accounted for 16% of the electricity supply in 2005, can have an 18% share of the total electricity supply in 2030 at carbon prices up to 50 US$/tCO2-eq, but safety, weapons proliferation and waste remain as constraints."

Greenpeace’s “GO GREEN” Song Actually Doesn’t Suck

From Ecorazzi, now that's a headline!
(Scroll down)

Environmental Groups Condemn IPCC Call For Large Scale Biofuels

as a Climate Disaster In The Making "

Climate Science is linking to this release from CommonDreams.org

Here's what the SPM had to say:

Biofuels might play an important role in addressing GHG emissions in the transport sector, depending on their production pathway. Biofuels used as gasoline and diesel fuel additives/substitutes are projected to grow to 3% of total transport energy demand in the baseline in 2030. This could increase to about 5-10%, depending on future oil and carbon prices, improvements in vehicle efficiency and the success of technologies to utilise cellulose biomass.

And here's the rub:

Climate change and other sustainable development policies are often but not always synergistic. There is growing evidence that decisions about macroeconomic policy, agricultural policy, multilateral development bank lending, insurance practices, electricity market reform, energy security and forest conservation, for example, which are often treated as being apart from climate policy, can significantly reduce emissions. On the other hand, decisions about improving rural access to modern energy sources for example may not have much influence on global GHG emissions

The WSJ's MarketBeat has this post: Cornhusker No Fan of Ethanol
HT WSJ EnergyRoundup

IPCC 3 global warming recommendations will cost YOU at least $6,504

That's the title of a post at Environmental Economics. It's lower than the results I was about to post, but hey these guys are Econ. professors.

Also, they seem to assume that the 3% reduction will be allocated per capita worldwide. Ain't gonna happen. Already the Chinese are arguing that the West should bear a larger part of the burden since "You are responsible for 95% of all the greenhouse gases to date."

Most importantly, I am looking at cash costs. Subsidies and tax breaks for biofuels, carbon taxes or limits priced at steadily increasing levels, the costs of mandates (if it were cheaper to do it the IPCC way, we'd be doing it now, low cost is my favorite competitive advantage). the inflationary effects on foodstocks, additional layers of bureaucracy for compliance and enforcement and a half-dozen other costs I'm not seeing anyone quantifying.

This focus on the reduction of total world revenue seems misguided (misdirected) right now. To reverse the arguments about the Stern review on social discount rates, what will implementation of the IPCC's recommendations cost the current generation.
It seems downright silly to have the discussion without being honest enough to face up to the numbers.

Global Warming Investment Themes from the IPCC

Speaking of themes, mine this week will be on where the IPCC is leading us.

The first one that jumped out from the report, under the heading "Key mitigation technologies and practices currently commercially available" was buildings:

Efficient lighting and daylighting; more efficient electrical appliances and heating and cooling devices; improved cook stoves, improved insulation ; passive and active solar design for heating and cooling; alternative refrigeration fluids, recovery and recycle of fluorinated gases.

This ties in to the post at EnergySpin from last thursday. (HT WSJ EnergyRoundup)

On page 19 of the SPM we read "Energy efficiency options for new and existing buildings could considerably reduce CO2 emissions with net economic benefit. Many barriers exist against tapping this potential, but there are also large co-benefits (high agreement, much evidence). By 2030, about 30% of the projected GHG emissions in the building sector can be avoided with net economic benefit.
Energy efficient buildings, while limiting the growth of COB2B emissions, can also
improve indoor and outdoor air quality, improve social welfare and enhance energy security.

• Opportunities for realising GHG reductions in the building sector exist worldwide.
However, multiple barriers make it difficult to realise this potential. These barriers include availability of technology, financing, poverty, higher costs of reliable information, limitations inherent in building designs and an appropriate portfolio of policies and programs.
• The magnitude of the above barriers is higher in the developing countries and this
makes it more difficult for them to achieve the GHG reduction potential of the building sector.

I've always thought a pretty simple way to sequester carbon was to turn trees into 2x4's, but maybe not:

15. Forest-related mitigation activities can considerably reduce emissions from sources
and increase CO2 removals by sinks at low costs, and can be designed to create synergies with adaptation and sustainable development (high agreement, much evidence)

About 65% of the total mitigation potential (up to 100 US$/tCOB2B-eq) is located in
the tropics and about 50% of the total could be achieved by reducing emissions from
deforestation.
• Climate change can affect the mitigation potential of the forest sector (i.e., native
and planted forests) and is expected to be different for different regions and sub10
regions, both in magnitude and direction.
• Forest-related mitigation options can be designed and implemented to be compatible
with adaptation, and can have substantial co-benefits in terms of employment,
income generation, biodiversity and watershed conservation, renewable energy
supply and poverty alleviation.
Footnote-Tuvalu noted difficulties with the reference to “low costs” as Chapter 9, page 15 of the WG III report states that: “the cost of forest mitigation projects rise significantly when opportunity costs of land are taken into account”.

The policy prescriptions? (p.31)

Appliance standards and labelling-- Periodic revision of standards needed.

Building codes and certification Attractive for new buildings. Enforcement can be difficult.

Demand-side management programmes-- Need for regulations so that utilities may profit.

Public sector leadership programmes, including procurement--Government purchasing can
expand demand for energyefficient products.

Incentives for energy service companies (ESCOs)--Success factor: Access to third party financing.

Don't get me going on bureaucratese, sheesh.

COMBAT CLIMATE CHANGE WITH FEWER BABIES – OPT REPORT

Bad news kids..." A radical form of “offsetting” carbon dioxide emissions to prevent climate change is proposed today – having fewer children." From the Optimum Population Trust

Here's the CIA World Fact Book list of Fertility Rates. It appears that, to paraphrase Kanye West, "the OPT don't like black people."

The Innumerate Leading the Illiterate

That's a line from "The Computer Contradictionary" by Stan. Kelly-Bootle

I was reminded of it when I saw this from DeSmogblog-cross posted at Daily Kos
Climate plan costs $10 per head

Now before my gauche friends take offense, I'm not saying they can't read, far from it. I once saw a comment from one of the KosKidz that dropped the F-bomb as a noun, verb (both transitive and reflexive!), gerund and adverb and although Professor Jim McCawley (one of the pioneers of pornolinguistics, U of Chi.) says the F2 variant can't be used as an adverb, I know what I saw and it was an F'in-heimer Tour de Force. So no, I'm not saying DeSmogblog's readers couldn't read the WG III SPM. Just that they didn't.

This "low cost" has become a meme with reports like this:
"Massive climate change is avoidable at low cost"

"IPCC climate report proves government must act""....According to the IPCC report, stabalising emissions between 450 and 550 ppm (parts per million) would cost from 0.2 per cent to less than 3 per cent of GDP in 2030, or less than 0.1 per cent per year." Greenpeace NZ

"Cost of stabilizing climate 0.1% per year" mongabay.com

"So let's say you make $50,000. The cost, on that scale, would be $60. Cheaper than a cup of coffee a week. HuffingtonPost

What the IPCC actually said, on page 26 of the SPM:

Reduction of average annual GDP growth rates (percentage points) < .12

But that's not the cost, it's the effect!
The Stern Review, which I know DeSmogblog read (a search "Stern" of the blog shows they mentioned it in at least ten posts), says the cost will be 1% of WGP or $466 to $650 billion this year ( and 1% is probably too low, there's a whole literature on that "The cost of electricity from coal is expected to double by 2030 to US$40–55 (per mega-watt hour, MWh). The additional cost of using carbon capture and storage for coal may raise the price to US$60–90 per MWh" (IEA 2005, 2006 / IPCC 2005)). This morning Senator Chris Dodd said his call for a carbon tax would cost $50 to $100 billion per year in the U.S. alone.

So why are people repeating this? I hope it comes from what Harry Nillson had the Rock Man say to Oblio in his work of genius, "The Point": ""You sees what you want to see, and you hears what you want to hear".

Because otherwise Desmogblog doesn't really believe their motto: "We're here to clear the PR pollution that clouds the science on climate change." and I don't want to believe that. I visit every day.

Why France Can Afford To Be So Smug About Global Warming-

"The world has many lessons to offer the United States, some good and some bad. We can learn from Zimbabwe that property rights are kind of a big deal." From WILLisms

Here's one of my favorite quick fact links, they're pretty accurate, the one mistake I found was corrected within an hour of my email. EU members CO2 vs. the Kyoto agreements they solomnly entered into. From Energy.eu.

Here's some headlines on the election:
Croatia: Future of EU Depends on the New French President
Switzerland: Sarkozy slams Royal over "riot" warning
Voice of America: Polls Predict Big Sarkozy Win in French Presidential Runoff
Afganistan: Taliban extend hostage deadline till French elections

Those wacky Taliban political pundits.

More on the IPCC tomorrow.

IPCC WG III: Part the Fifth

On page 26 we find the kind of lingo I live for.

"Integrated assessment of the economic costs and benefits of different mitigation pathways shows that the economically optimal timing and level of mitigation depends upon the uncertain shape and character of the assumed climate change damage cost curve. To illustrate this dependency:

If the climate change damage cost curve grows slowly and regularly, and there is good foresight (which increases the potential for timely adaptation), later and less stringent mitigation is economically justified;
Alternatively if the damage cost curve increases steeply, or contains non-linearities (e.g. vulnerability thresholds or even small probabilities of catastrophic events), earlier and more stringent mitigation is economically justified [3.6]."

• Climate sensitivity is a key uncertainty for mitigation scenarios that aim to meet a specific temperature level. Studies show that if climate sensitivity is high then the timing and level of mitigation is earlier and more stringent than when it is low [3.5, 3.6].
• Delayed emission reductions lead to investments that lock in more emission-intensive infrastructure and development pathways. This significantly constrains the opportunities to achieve lower stabilization levels (as shown in Table SPM.6) and increases the risk of more severe climate change impacts [3.4, 3.1, 3.5, 3.6]

Translation: "We gotta do it, gotta do it now, don't lock in the infrastructure, a small risk of catastrophe can be avoided, go go, now now, Go, go,
Go Johnny go, go,
Go Johnny, go go
Go Johnny go, go,
Go Johnny go, go
Johnny B. Good"
Okay that last bit wasn't the IPCC.

p28 The cost:
"Policies that provide a real or implicit price of carbon could create incentives for producers and consumers to significantly invest in low-GHG products, technologies and processes. Such policies could include economic instruments, government funding and regulation (high agreement, much evidence).
• An effective carbon-price signal could realize significant mitigation potential in all sectors [11.3, 13.2].
• Modelling studies (see Box SPM.3) show carbon prices rising to 20 to 80 US$/tCO2-eq by 2030 and 30 to 155 US$/tCO2-eq by 2050 are consistent with stabilization at around 550 ppm CO2-eq by 2100. For the same stabilization level, studies since TAR that take into account induced technological change lower these price ranges to 5 to 65 US$/tCO2eq in 2030 and 15 to 130 US$/tCO2-eq in 2050 [3.3, 11.4, 11.5].
• Most top-down, as well as some 2050 bottom-up assessments, suggest that real or implicit carbon prices of 20 to 50 US$/tCO2-eq, sustained or increased over decades, could lead to a power generation sector with low-GHG emissions by 2050 and make many mitigation options in the end-use sectors economically attractive. [4.4,11.6]" emphasis mine.

IPCC WG III continued

"First, the bad news: more than 6,000 people should have died in a 17-day heatwave that gripped France last July. The good news: only 2,000 actually succumbed."
"... measures to help elderly and other vulnerable people cope with extreme heat had helped save many lives."

Adaptation.
The SPM has this to say "Irrespective of the scale of mitigation measures, adaptation measures are necessary." One line. Page 33 (of 35).

Fareed Zakaria said in February, "Global Warming: Get Used to It" and goes on to explain that regardless of causation we had better adapt, which fortunately is something humans are pretty good at.

Mr. Zakaria is a pretty wired fellow, editor of NewsWeek International, member of the Council on Foreign Relations and I'd guess some very private phone numbers in his Blackberry. So why the disconnect between his article and the SPM?

In another article April 16 headlined "The Case for a Global Carbon Tax" He is again at odds with the SPM WG III which has this to say regarding taxes: "Taxes or carbon charges on fossil fuels--Resistance by vested interests may make them difficult to implement"
The IPCC really leans toward cap-and-trade: "Tradable permits--Predictable allocation mechanisms and stable price signals important for investments" both quotes Table 7 on page 30.

Sometimes I think reading these SPM's is like trying to read tea leaves. Without getting to drink the tea. Which sounds good right now. I'll be back in a bit with more WG III.

Pet Peeves, the IPCC and Internal Monologue

I just received an email asking "What's the big deal with the storylines?"

I have two problems with them. One; the IPCC used them in the WG I report "The Scientific Basis" which seems not to be science and two; storylines strike me as bureaucratic CYA, just jibber-jabber. That kind of phony diplo-speak distorts one's perceptions and by taking the passive voice has real-world effects e.g. one million human beings hacked to death in Rwanda.

Here's Lt. Gen. Romeo Dallaire on the infamous cable Kofi Annan sent him (Mr. Annan was Under-Secretary General for Peacekeeping Operations).

"I woke up and this cable came in, signed by Kofi Annan in his normal staff responsibilities that essentially said cease and desist. Conduct no such operations. It's out of your mandate. On top of that, in the proper process of a Chapter VI, you will inform the ex-belligerent of the shortcomings that we notice and make it quite clear that he's got to rectify these shortcomings within a very short time frame, or else we will be in a position to have to review the mission, and ultimately their commitment to the peace agreement."

I have a problem with bureaucratese. Say what you mean. If you don't like the reality disclosed by being forthright, change the reality, or live with the frisson.

On the other hand I like this video "Al Gore sings Grease"
I'll get back to WG III in a bit.

More IPCC SPM commentary

I like the chart on page seven. First some IPCC 101: Intro to UN speak.

Unlike the Scientific Method I learned in 9th grade biology whose first three steps are Observation, Description, Prediction; the IPCC discards prediction and uses Storylines. The six Storylines are described on page eight of the SPM.

As an aside, I rather like predictions and not just in the markets. Mendeleev with his eka-aluminum, eka-boron and eka-silicon: predicting the physical properties of elements not yet discovered, and leaving room for them in his table, so they'd have a place to reside when they were found, just bowls me over. Other folks have been impressed too:

When I first saw the Periodic Table, it hit me with the force of revelation-it embodied, I was convinced, eternal truths...I thought of Mendeleev as a sort of Moses, bearing the tablets of the God-given Periodic Law.

Oliver Sacks, neurologist and writer in The New Yorker, December 20, 1999. Enough with genius, back to the IPCC. The A2 storyline is described: "The underlying theme is self reliance and preservation of local identities." The B1 storyline: "The emphasis is on global solutions to economic, social and environmental sustainability, including improved equity, but without additional climate initiatives." The A2 and B1 are shown in the graph as the worst and best options in the year 2100 with B2 and A1B in the middle, reminiscent of Sears Kenmore "Good, Better, Best". Sears knew marketing: "If you don't find it in the index, look very carefully through the entire catalogue." -- Sears, Roebuck, and Co. Consumer's Guide, 1897 The U.N. prefers the B1 storyline but it would be a tough sell. "Perhaps madame would consider B2 or A1B?"

IPCC WG III Summary For Policymakers (SPM)

As was the case with the SPM from WG II, I get frustrated by references to a report that won't be out for months.
I've given the SPM a quick skim. Some of the nuggets that I glean:

p3 "The effect on global emissions of the decrease in global energy intensity (-33%) during 1970 to 2004 has been smaller than the combined effect of global income growth (77 %) and global population growth (69%)" inserted, I believe to pre-empt the energy intensity arguments that some Kyoto signatories are already making.

"The emissions of ozone depleting substances (ODS) controlled under the Montreal Protocol7, which are also GHGs, have declined significantly since the 1990s. By 2004 the emissions of these gases were about 20% of their 1990 level [1.3]." referencing a political success, although not necessarily a scientific one. The 2006 ozone hole is the largest ever measured "NASA and NOAA Announce Ozone Hole is a Double Record Breaker"

I have five pages of notes I'll post today. Right now I'm going to read Der Spiegel: "Is the IPCC Doing Harm to Science?"

P.S. They pulled the positive reference to genetically modified crops, flat or short on MON?

Why losing money may be more painful than you think

"The reward and defensive systems relating to financial loss were very similar to motivational systems previously identified in rats"

"About 4% of Wall Street Bonuses Will Go to Charity" Chronicle of Philanthropy

"This ability is guided by a 'prediction error', whereby the brain learns to make predictions based on previous mistakes."

"UBS is closing its fund, Dillon Read Capital Management"
New York Mag.

From the Wellcome Trust

China, India, Brazil Hold Up Climate Change Talks

Power politics (sorry).
"Brazil, India and China are trying to put on the shoulders of industrialised nations the historic responsibility for greenhouse gas emissions, in order to clear their own emissions (of blame) and to protect themselves in any discussion." From TerraDaily

Investments in the BRIC nations are all over the map (sorry again, must seek help for Pun Syndrome), Brazil is the only one not in the nuclear club.

Global warming blamed for Swedish beetle-infestation

"We've set these beetles a giant smorgasbord, so it's not strange they're coming,"

This could be a very big problem and not just for Sweden: "...in 2005 timber and paper products accounted for 12 percent of the country's total exports, for a value of 114 billion kronor, or $17 billion."
From the IHT

Cleantech Venture Capital

Alt Energy Stocks has an interview with Scott MacDonald of Emerald Technology Ventures.
Toward the end of the interview there's a lightning round:

We have done a lot of writing at Cleantech Blog on topics including ethanol, solar – so I’d like to get your 1 sentence rapid fire take on a couple of always topical cleantech investment debates:

Thin film vs. Conventional PV
Thin film if you have deep pockets and patience

Solar concentrators vs. Flat Panel
No comment, yet.

Cellulosic vs. Corn Ethanol
Science project vs. commodity. I’m a VC…science project always wins.

Cleantech vs. Greentech
Make great products, build great businesses and provide great returns to investors (and hopefully help out our world along the way) and no one will care what you call it.

Mr. MacDonald's comments on fuel cells also caught my attention:

You’ve had a couple of recent exits in fuel cells – what fund were they from, and has that changed your appetite for similar technology areas in the future?

We have had recent exits in this area: Pemeas which we sold to BASF and Cellex which we sold to Plug. We still have an number of other FC investments in our portfolio that we are bullish on – Angstrom Power and PolyFuel. I would say we have learned a lot about the general FC market and understand many of the technology challenges and market adoption risks much better. We are still interested in the FC space – I would just say we are a more sophisticated FC investor now.

East Africa Greens Up from Heavy Rains

Sometimes the news is such a downbeat drumbeat (see below) and it seems you have to search out good news. Here's a post at Climateer Economics last month.

"I'm not sure how this relates to the IPCC WGII Summary but I hope it's good news for our friends, the Masai."

Edit 10:14-It was just pointed out to me that the story of the Masai and 911 is behind the NYT reg. req. wall. If you aren't registered here are a few versions of the story:

How to Thank Kenya for 9/11 Cows
Kenyan Maasai cattle forge 9/11 bond with US
Kenya's Maasai Commemorate 9/11 Victims

Climate Change and...

The Wall Street Journal is reporting "There's growing scientific evidence that global climate change is linked to the dramatic rise in allergies and asthma in the Western world."
(HT: WSJ EnergyRoundup).

I'm afraid we will be hearing much more on this and other effects and causes of Global Warming e.g.:

Cooties getting under your skin? Blame global warming!
Did Caffeine cause Global Warning
Older people most to blame on climate
CLIMATE CHANGE: Islands Could Fall Off the Map
Researchers link human skull size and climate Hot head v cool head v Mr Potato Head

Climate change is responsible for 2.4 per cent of all cases of diarrhoea
Global warming threatens Kentucky whiskey?
Another global warming gift: itchier poison ivy
Sex lives of grey seals boosted by warming climate
UFO science key to halting climate change: former Canadian defense minister

Warming reverses sex of lizards
Darfur crisis linked to climate change
"Human extinction within 100 years warns scientist"
Arctic spiders may reveal effects of global warming
Global Warming: now it hits brothels

Carbondale Signs US Mayors Climate Protection Agreement
Shifts in caterpillar biomass phenology due to climate change and its impact on the breeding biology of an insectivorous bird.
Scientists warn of climate change risk to marine turtles
Climate Change Drives Disease To New Territory Viruses Moving North

In maple sugar country, creeping fears about climate change
Rising ocean temperatures, pollution have oysters in hot water
Premiums up? Blame global warming
Global Warming and the Growing Intellectual Bankruptcy of Libertarianism
Global warming caused by lack of pirates

Heat-Related Death and Mental Illness During the 1999 Cincinnati Heat Wave.
Scientists discover global warming linked to increase in tropopause height over past two decades
Foreign fungi are invading nation
West Coast climate change could threaten wine production, study suggests
Winemaker welcomes news of warming

Freak weather fells Italian mountains
Hornets hit France and could reach Britain
Climate change has surprising effect on endangered naked carp
Study: Polar Bears May Turn to Cannibalism
Warming world 'means longer days'

Tory MP links action on climate change to suicide
Climate change may threaten more than one million species with extinction
Global warming threatens crocodile populations with extermination
Global warming forces Swiss ski resort to wrap glacier
Squirrels show genetic response to warming

Global warming may kill off oak and bluebell
Kitten boom litters shelters
"We Have to Take Away People's Fear of Climate Change

And:

"Climate change is allowing plants that thrive in warm climates to creep northward in the U.S., the New York Times reports"

We had a similar story last month at ClimateerEconomics:
Redwood speaks of global warming 'benefits' Spruce forests invade Arctic tundra

Double Hat Tip: WSJ EnergyRoundup

Active Spot Uranium Demand Dropped by 65 Percent in April

Julie Ickes writing at StockInterview.com says uranium trading has slowed to a crawl in the spot market.
Regarding uranium equities an analyst said " “The Australian Index seems to be forming a base, and at this point one cannot determine whether it will move down or is getting ready to move higher.”

Okay, it may not be fair to cherrypick a quote that was probably cherrypicked from the interview; it is however, fun.

edit 8:28: I have a friend who carries around an old Cycle-chart book hoping to meet technical analysts. When he does he rips a page out, challenges them to tell him where the stock went and since they're professing expertise, give him 7 to 5. He's ahead of the game. Another friend spent hours agonizing over index charts in 1994. He finally said "I got nothing, maybe I should go work construction". Instead he flipped a coin, went long and had fun for the next five years. There are many ways to make money from technical analysis.

Everything you ever wanted to know about Carbon Offsets

Here it is folks, the mother of all linkfests for carbon offsets. Wind credits, tree planting credits, solar credits.
But that's not all, for just one mouse click you get 7,000 more green links! Cleantech, recycled, organic, eco everything, clean, green, vegetarian; this is my gift to you.

Monster HT: Free Carbon Offsets

Free Carbon Offsets

Although this site is righty/skeptic in tone, their price point is about right. Plus links to both Sheryl Crow and Rush Limbaugh!

The EU December 2007 is trading around 1/3 euro, down from 30. Can you imagine the poor chump CEO who had to buy 500,000 of these things to stay in business. Ouch. Explain that one to the board.

A Carbon Tax to Combat Climate Change

by Congressman Pete Stark, Mon Apr 30, 2007 at 10:50:22 AM EST

"Longtime legislator, first time blogger..."

Now here's a politician who doesn't need a speechwriter. From MyDD.com

Planktos

I compare the (market enforced) humility of the emailer in the post below, even though he bastardized the Patton quote, "For over a thousand years Roman conquerors returning from the wars enjoyed the honor of triumph, a tumultuous parade. In the procession came trumpeteers, musicians and strange animals from conquered territories, together with carts laden with treasure and captured armaments. The conquerors rode in a triumphal chariot, the dazed prisoners walking in chains before him. Sometimes his children robed in white stood with him in the chariot or rode the trace horses. A slave stood behind the conqueror holding a golden crown and whispering in his ear a warning: that all glory is fleeting."
- Gen. George C. Patton

to this from David Kubiak, a business associate of the CEO of Planktos:

1) Are you still in touch with Russ George, who presented seminars at U.S. Secretary of the Navy, NASA Space Power Division, Los Alamos National Laboratory, The Naval Research Laboratory, Lockheed Martin Corporation and other military organizations?

Answer) I am not only still in touch with him, I am working with him to make two projects happen that would help end global warming and terminate the rule of energy corporations and dependence on fossil fuel. All this activity is documented in some detail at http://planktosinc.com and http://d2fusion.com.

Russ's unpaid lectures to the above organizations were about his cold fusion work and essentially warned them that this new phenomenon would not only change the world of physics, it would unrecognizably alter their political, economic and security environments as well. He was rarely if ever invited back.

Interogatee Editorial Observation (IEO): You are a twit.

and:

3) Can you explain in one sentence, why this "cold fusion" research is from any pratical use and how can you assure an independent research, not abused by any military influence?

A) By 2010 cold fusion reactors the size of dishwasher will offer every household in the industrial world a clean, cheap and totally decentralized source of heating and electrical power. Source: David Kubiak Responds to Nico Haupt David Kubiak, executive director of 911Truth.org

A little history. "COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS"

On August 10, 2005, Solar Energy Limited (“Company”) entered into and completed a Stock Purchase Agreement with Planktos, Inc. (“Planktos”) and Russ George, the sole shareholder of Planktos, in connection with the Company’s acquisition of 100% of the issued and outstanding stock of Planktos.

The Company acquired Planktos as a wholly owned subsidiary for a purchase price of one million five hundred thousand dollars ($1,500,000) in the form of a convertible debenture. The convertible debenture had a 5 year term, bore interest at 5% and was convertible into Company’s shares at 10% below market at any time after twelve (12) months and prior to the expiration of the debenture. The acquisition also committed the Company to assist Planktos in the process of becoming a public company either by reverse acquisition into an existing public entity or through offering assistance with an initial public offering of the common stock Planktos and to advance up to $1,500,000 in the form of loans over twelve months. On November 17, 2005, the Company and Mr. George agreed to amend the terms of the convertible debenture in order to permit Mr. George to convert the $1,500,000 purchase price into shares of Company common stock at any time prior to the expiration of the term of the debenture. Mr. George elected to convert the debenture into shares of the Company’s common stock at $1.00 a share on November 21, 2005.

On August 18, 2005, the Company entered into and completed a Stock Purchase Agreement with D2Fusion Inc. (“D2Fusion”) and Russ George, the sole shareholder of D2Fusion, in connection with the Company’s acquisition of 100% of D2Fusion’s issued and outstanding stock.

And something you'd rather not see from a portfolio name:

Non-Reliance on Previously Issued Financial Statements or Related Audit Report or Completed Interim Review.

(a)

(1) On August 17, 2006, Solar Energy Limited (“Company”) determined that the financial statements filed on Form 10-KSB for the period ended December 31, 2005 and on Form 10-QSB for the period ended March 31, 2006 should no longer be relied upon and require restatement.

Why I like email

I received this from the only guy I know who's had two deals go 100 times on the money in the public markets.

"I may need a chariot rider to whisper "glory is only fleeting" as Enpath (Medamicus) was bought out at $14.375.

Not exactly Daig / St. Jude but I'll take it.

At the Lifecell message board this morning a poster said the "stock is dropping faster than a prom dress".

Also I see someone is trying to buy Dow Jones for $5 bil.."

Just thought I'd share

A corporate carbon tax

And cap-and-trade. Senator Dodd wants both: "...That's why, in addition to whatever else we do, America must enact a corporate carbon tax. Used in conjunction with cap and trade systems that allow clean corporations to sell pollution credits to dirtier companies..."

What he needs is a new speechwriter: "Parents are alarmed by asthma rates that have increased four fold since 1980 and coastal communities like New Orleans savaged by increasingly extreme weather."

"With the right leadership, the United States will emerge as that leader."

Environmental law enters the era of global warming

Climate change offers business opportunities as a new law practice area

YUP. That's what the California Bar Journal used as their sub-head for this article.

Científicos de la UGR y del CSIC relacionan la extinción de los Neandertales en la Península Ibérica con variaciones climáticas

From our friends in Granada.

Translation: Climate killed the Neanderthals.

In other news from Europe: Video Killed the Radio Star.

Fire threat to solar tile homes

"Residents of a low-carbon housing development endorsed by the Prince of Wales have been warned not to activate solar tiles on their roofs as they may catch fire."

Burning down the house would tend to increase one's carbon footprint. From the Telegraph

Oddball schemes to fix global warming get thumb's down

Following up on the NYT story "Recruiting Plankton to fight Global Warming" I forgot this link regarding carbon sequestration via plankton in the first post this morning.

The IPCC report to be released Friday "... pours scorn on geo-engineering as a means of tackling the problem, branding its approaches as hypothetical, tarred with risk and carrying unknown economic costs. "

"Geo-engineering options... remain largely speculative and with the risk of unknown side effects," it says witheringly. "Reliable cost estimates for these options have not been published."

The story from PhysOrg goes on to say: "Also unclear are the side effects."

"Edouard Bard, a professor at the College de France in Paris, says there could be mechanisms by which the CO2, instead of being durably locked on the ocean floor, could be released back into the ocean, encouraging acidity and oxygen starvation.

Nitrate-loving bacteria thrive in such conditions, releasing nitrous oxide -- an even more powerful greenhouse gas than CO2."

PhysOrg, for the geek in you.

Plankton, Carbon and Human Nature

The previous post ended with some comments on the science of fertilizing the ocean to encourage the growth of plankton. One of the comments is from Russ Seitz who could be the poster boy definition of the word iconoclast. I like his blog. Here he rips on Nature for the paywall on the plankton story.

My interest is in the concept as an investment. A 30 second Google search on Russ George, featured so prominently in the Times story turns up his promotion of "Cold Fusion". Not the first thing I hope to find in a due diligence package.

A look at Planktos' SEC filings, starting with the 4/18/07 10K throws up at minimum some pink flags.
The share ownership.

Common

Gabriela Sameniego Ave Ricardo J. Alfaro, Sun Tower Mall 59 Panama City, Panama

34,500,000

41.6

The accounting firm: ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

On January 31, 2007, the Company received notice of Chisholm Bierwolf & Nilson, LLC’s (“Chisholm”) decision to resign as our independent registered public accounting firm.

The reports of Chisholm on the consolidated financial statements of the Company as of and for the years ended December 31, 2005 and 2004 did not contain an adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles.

During the years ended December 31, 2005 and 2004, and through January 31, 2007, there were no disagreements with Chisholm on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of Chisholm, would have caused Chisholm to make reference to the subject matter of the disagreement in its reports on the Company’s consolidated financial statements for such periods.

The reverse merger/private placement/Vancouver style capitalization:

NOTE 8 — SUBSEQUENT EVENTS

In January 2007, the Company completed a private placement for 2,885,000 units at $0.40 per unit for cash proceeds of $1,154,000. Each unit consists of one common share and one share purchase warrant exercisable into one common share at $0.40 for a period of two years.

In January 2007, the Company purchased the research vessel “Weatherbird II” for $800,000 to further the development of its ocean plankton restoration technology.

In January 2007, the Company repaid $102,000 of a related party loan payable outstanding at year end 2006.

On January 12, 2007, the Company entered into a securities exchange agreement and plan of exchange with Solar Energy, Ltd. to acquire 100% ownership of Planktos, Inc. (a subsidiary of Solar) in exchange for an aggregate of 45,000,000 shares of common stock of Planktos Corp., and the fulfillment of certain conditions on or before closing. The conditions include: (a) making available working capital of no less than $1,000,000 to Planktos on or before the acquisition is completed, (b) cancellation of 45,000,000 shares of issued and outstanding common share capital on or before the acquisition is completed, and (c) obtaining shareholder approval of the transaction. The transaction has not yet obtained shareholder approval.

In February 2007, the Company completed a private placement for 838,333 units at $0.60 per unit for cash proceeds of $503,000. Each unit consists of one common share and one share purchase warrant exercisable into one common share at $0.75 for a period of two years.

On March 8, 2007, the Company effected a 1:1.5 forward split of its common stock and amended its articles of incorporation to reflect a name change from “Diatom Corporation” to “Planktos Corp.” in anticipation of closing on the terms of the Securities Exchange Agreement and Plan of Exchange.

Not what I'd look for in an investment.

EasyJet slams 'snake oil sellers' in offset market and goes it alone

"EasyJet has warned that the carbon offsetting market is riddled with "snake oil salesmen" determined to make excessive profits from green-minded air passengers."

That's not the least of it. The New York Times this morning devoted over 1500 words to a story about seeding the oceans with iron to grow plankton. While the story raised some of the objections:

"Mr. Buesseler has organized a conference for the fall to bring together the experts in ocean fertilization to assess the years of research in the field and see what might be done to further it. He also wants to explore the policy issues; one unresolved question is whether regulatory bodies will even endorse iron fertilization as a valid means of carbon sequestration that would be allowed under any so-called cap-and-trade system to limit global warming gases." it was definitely lacking in basic research.

I saw no mention of this headline from the Journal Nature: " Only mother nature knows how to fertilize the ocean" which came out last week. The story is now behind a paywall but here are a few comments on Nature's blog.