Eighteen oil and natural gas companies had reported their third quarter 2009 earnings as of yesterday afternoon, and the results have been a mixed bag. Companies that focus on oil and natural gas production--also called the upstream sector of the business--experienced a better financial quarter than large integrated companies that have both upstream and downstream operations--refining and marketing. The companies that fared worst are in the downstream portion of the business, and some of them actually lost money.

The chart below puts the companies' earnings in perspective.

At this writing, the oil and natural gas industry in the third quarter of 2009 is averaging earnings of 5.8 cents per dollar of sales. That's far below the Dow Jones Industrial companies, which are averaging 9.7 cents o... more »

The Senate Environment and Public Works Committee today voted to send the Kerry-Boxer climate bill to the Senate floor without amendments. Only Democrats were in attendance for the vote, and Sen. Max Baucus (D-Mt.) voted against the bill, saying he would withhold his support contingent on the adoption of some pro-agriculture amendments.

The Republican members of the committee have been boycotting the committee's hearings on the Kerry-Boxer bill, saying they wanted a full Environmental Protection Agency (EPA) analysis of the legislation rather than the regurgitated analysis of the Waxman-Markey bill that was provided to the committee. Today, committee chairwoman Sen. Barbara Boxer (D-Calif.)rebuffed their request, saying it would be duplicative and a "waste of taxpayer money" to prepare a n... more »

A recent poll shows that the more Americans learn about climate legislation, the less they like it. Especially when they realize that it will take money out of their pockets.

How much money? About $2,300 per year per average U.S. household, according to the American Farm Bureau. That's nearly $200 a month.

The Farm Bureau calculated this figure by adding the Energy Information Administration's (EIA) estimate of higher energy costs ($1,870 per year) under the Waxman-Markey bill with its own estimate of the legislation's impact on food prices. The total cost: up to $200 billion per year for U.S. consumers, which equates to a 15 percent hike in personal income taxes.

"Can you [imagine] how consumers in this country would scream if they knew they would be hit with a 15 percent hike in their pe... more »

Did you know that the United States has largest energy resources on Earth? You might be surprised to learn that a recent Congressional Research Service (CRS) report found just that.

The United States with its 1,321 billion barrels of oil equivalent (BOE) tops number 2 Russia with 1,248 billion BOE, and number 3 Saudi Arabia with 543 billion BOE.

The report also found that the United States has tapped into only 13 percent of these energy resources, with the other 87 percent still untouched. Sen. James Inhofe (R.-Ok.), along with Sen. Lisa Murkowski (R.-Alaska), who released the report last week said:

"Our overwhelming coal, natural gas, and oil resources represent tens of trillions of dollars in wealth and millions of American jobs. Government policies that unnecessarily restrict or preven... more »

In this episode, I interview Alan Gelder of Wood Mackenzie, who recently conducted a study on the potential impact of climate change legislation on refiners.

Use the audio player below to listen to the conversation and follow along with the show notes. I hope you find the podcast informative.

Show Notes:

00:17 Much of the political discussion in Washington these days involves the climate bills being considered in Congress. Multiple studies suggest that the cost of the bills could be enormous, especially for the refining industry. A recent study was conducted on the potential impact of climate change legislation on refiners.

00:54 The independent study is part of Wood Mackenzie's ongoing research analysis of the energy sector and was not commissioned by any part... more »