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Doug Grandt
Forum Posts: 26
Member Since:
March 27, 2014
I see statements and debates here and there on facebook (my social media of
choice given the options available) around conflicting outcomes of the "revenue-
neutrality" and "price signal" features or intentions of the Energy Innovation and
Carbon Dividend Act.
It seems that a lack of explanation might be responsible for our members
conjuring their own interpretations, some of which defy logic and misrepresent our
intentions.
As I understand it, this is the fundamental premise of the bill:
1. Fee at production site, refinery or port of entry is passed on to consumers
2. Wholesale and retail prices for all fuels and goods & services increase
3. Consumers choose whether to pay more for carbon-intense products
4. 100% of fee revenues are returned per capita to compensate households
Yet, some of our members have stated publicly that they want to make it so
expensive for oil companies to make a profit they will go out of business.
This contradicts the "price signal" premise that oil producing and refining
companies pass the fee on to the consumers of gasoline, diesel, propane, fuel
oil, kerosene and other liquid combustibles, as well as natural gas, whether
individuals or businesses.
A fee passed-on will not increase expenses or bankrupt oil companies.
One way to bankrupt an oil company would be to disallow passing it on.
Consider our favorite oil company ExxonMobil who produces and refines right at 5
million barrels of petroleum per day. That is equivalent to about 2.5 million tons of