Exxon-Mobil, Shell, Southern Company, AEP, & Duke Power Take Biggest Hits From Cap & Trade

carbon revenue flows image
Carbon allowances and cash flows in the oil sector Image credit:Point Carbon Research

The above diagram is reproduced directly from Monday's report from Point Carbon. They're estimating a rough average of a 5% increase in gasoline price at the pump (around 15 cents per gallon at today's prices) from Cap & Trade.

Read on for news about who will be the corporate revenue winners and which facilities will be the operating-cost losers, when and if a Cap & Trade bill, as in it's present configuration, would be enacted.

to the point analysis image
Executive summary of Carbon Exposure: Winners and Losers in a US Carbon Market Image credit:Point Carbon Research (pdf file)

What will investors say about this?
I doubt many investors get their research insights from cable TeeVee talk shows; so spin given the reported 5% gasoline price increase won't matter to the stock market. Also, the oil and utilities certainly have known about these or similar numbers for a while. Why do you think Exxon was so against C&T, and in favor of a carbon tax? And, why the coal companies were willing (allegedly) to hire PR flaks using forged letters to gin up opposition to C&T?

How financial papers of record follow these conclusions is what matters now. That shapes the overall business lobbying, and political response at the US Congress. Let's see how Rupert's new soapbox handles the complexities of allowance and offset cash flows (as above), for example.

Recent additional cap and trade posts.
60% of Americans Now Support Cap and Trade
Cap and Trade Explained in Under Four Minutes (Video)
Carbon Cap And Trade - A Looming Battle Among States