May 2, 2008

Brazilians are dancing in the streets. But will the hoopla last? The celebration comes amidst observations by key energy officials there that surveyors have discovered an area off-shore that may hold 33 billion barrels of oil. That would make it the largest such find in 30 years and the third biggest ever.

Brazil could potentially transform into an international powerhouse while the United States could win access to oil supplies from a friendly and democratic nation. Brazil, meantime, is warm to foreign investors, having already partially privatized its oil sector. A rich, new source of oil would invite a host of prospects. "We're already doing well, and if I look ahead, I think it will only get better," says Antonio Bonchristiano, who manages Latin America's largest private equity firm called GP Investments. In a speech, he also praised Brazil's well-developed infrastructure.

April 25, 2008

Economic policies may determine the presidential election. Utilities are particularly interested in preserving the current dividend tax rate -- something that they say encourages more investment in their enterprises.

A 15 percent tax on dividends is not just good for utilities but is also healthy for the economy. Proponents say the policy helps attract the capital needed to improve infrastructure while also contributing to full employment. Such incentives furthermore encourage savings and reduce the need to acquire excessive debt that could drag businesses down during economically distressing times.

April 23, 2008

It's part politics. It's part reality. But the sum total equates to a fundamental shift in national policy as it relates to global warming.

The Bush administration now says that the growth of greenhouse gas emissions must be halted by 2025. After years of opposing any such regulations, the White House is laying out what might become the general framework for new discussions. It's a necessary move, as political candidates and businesses alike realize that carbon constraints are becoming increasingly real. A recent U.S. Supreme Court ruling, meantime, requires the administration to take action if it deems the release of those emissions as harmful to human health and the environment.

April 9, 2008

A government watchdog agency is attacking federal energy regulators, saying that that they are not properly monitoring the convergence among electric and gas utilities -- something that the Federal Energy Regulatory Commission says is "inaccurate" and reflects a "misunderstanding" of the issues.

The debate centers on whether repeal of the Public Utility Holding Co. Act of 1935 (PUHCA) has worked. By rescinding the law in 2005, both Congress and the administration reasoned it would attract much-needed investment to the utility world by allowing companies to combine operations more easily. But others have feared it might make oversight of the united companies more problematic.

The board of directors of the Muskegon Area Chamber of Commerce Friday announced that it favored a Michigan energy policy that preserves electric competition, promotes renewable energy and energy efficiency, and also provides the opportunity for businesses to generate and sell energy into the grid.

In short, the chamber said, its members have benefited from the state Customer Choice and Electric Reliability Act of 2000. The chamber policy opposes current efforts to eliminate or restrict the current electric choice program which has benefited many of its members and has helped make Michigan more competitive with neighboring states.