Energy News from Fisher Investments

German austerity measures were approved by the cabinet Friday. Conspicuously absent from the approved measures was the proposed nuclear fuel rod tax. The government plans to consider this proposal as part of broader energy recommendations later this month.

An interesting look at the impact of the Macondo spill on Gulf drilling permits. Considering the regulatory environment, it's not surprising permit approvals have fallen. Perhaps more interestingly, permit applications have also fallen.

For the first time, German Chancellor Angela Merkel publicly stated a timeframe for a nuclear extension, suggesting 10 to 15 years was reasonable. The Environmental Minister, a member of her party, is aiming for 4 to 8 years to pressure utilities to develop new technologies. The debate will be an interesting story to follow as it unfolds.

Better technology is allowing for production in locations previously thought far out of reach.

The Obama administration surprised many by opposing an appeals court ruling permitting litigation against utilities (known to be huge energy consumers and carbon dioxide producers) for greenhouse gas emissions.

“Member countries from developing nations couldn’t continue to invest such large sums unless they were convinced that the demand would be there when the capacity came onstream.”

Pennsylvania Governor Ed Rendell proposes not only a new state tax on oil profits, but also a legislative bar preventing oil companies from passing on these increased costs to consumers. It’s unclear as to how he plans to accomplish the latter.

The government is both defending the ban publicly and in federal court, however energy companies and politicians from energy-producing states oppose the blanket ban. The case is currently under the review of US District Court Judge Martin Feldman (the same judge who ruled against the original moratorium). This interesting debate should continue to grab headlines as hearings and decisions occur.

The US Department of the Interior is publicly defending its moratorium (re-issued July 12th  after the initial ban was struck down in court) banning deepwater drilling in the Gulf.

Carbon capture projects are in vogue lately—but China, a huge carbon producer, is waiting for evidence of effectiveness before jumping into the fray.