Natural gas looking for a boost from carbon tax

Credit: www.examiner.com

At the World Gas Conference in Paris earlier this year (1-5 June), six major oil & gas companies (BP, Shell, Total, BG Group, Eni S.p.A. & Statoil) called for a price on carbon emissions.

Why would oil & gas companies propose a tax which would increase the price of their product?

Gas releases less carbon dioxide (CO2) than coal for each unit of heat energy produced. A relatively low price for CO2 emissions would give gas a price advantage over coal.

http://www.nature.com/news/natural-gas-stands-to-get-a-boost-from-carbon-tax-1.17705

http://www.statoil.com/en/NewsAndMedia/News/2015/Pages/01Jun_carbon.aspx/ major European oil and gas companies BP Shell Total call price carbon emissions World Gas Conference Paris carbon tax limit global warming shift away from coal high-carbon fossil fuels renewable energy boost demand natural gas cleanest-burning fossil fuel carbon price positive development Mark Lewis energy analyst Paris-based investment firm Kepler Cheuvreux effect global greenhouse gas emissions gas price price shadow price emissions evaluate profitability proposed oil gas projects pay tax carbon dioxide CO2 emissions refining executive French oil giant Total price €35 US$39 per tonne worldwide levy attractive petroleum companies price primarily gas more competitive than coal power generation global temperatures 2 °C two degrees Celsius pre-industrial levels official goal United Nations climate negotiators carbon price high enough drive fossil-fuel emissions almost nothing second half 21st twenty-first century International Energy Agency IEA price on carbon ramp up quickly US$20 $20US $US20 tonne 2020 $100 tonne 2030 $140 2040 stimulate development carbon capture and storage CCS technology removes CO2 emissions factories power plants sequesters deep underground 2°C two degrees Celsius two Celsius degrees goal IEA director Nobuo Tanaka conference CCS capture all coal emissions half gas emissions produced power sector 2050 IEA CCS costs $50–80 per tonne CO2 carbon tax offset that cost unacceptable to petroleum companies lower carbon prices effect energy markets non-profit Union of Concerned Scientists United States moderate carbon price $12 per tonne CO2 rising 10% per year boost renewables push out coal costs renewable energy resources wind solar falling dramatically resources would also get a big boost modest price on carbon Rachel Cleetus senior economist Union of Concerned Scientists Cambridge Massachusetts carbon price natural-gas use policies mandate use renewable energy improve energy efficiency cuts in emissions petroleum industry gas renewable energy reduce carbon emissions natural-gas power plants turned on and off quickly coal plants gas could power disruptions solar wind cloudy calm days advent batteries Christopher Delbrück chief executive E.ON Global Commodities Düsseldorf Germany trading arm of power company E.ON. batteries using stored energy renewable electricity customers cloudless windless periods Tesla Motors Palo Alto California reduced-cost battery systems homes industry
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