Good morning! One more Neil Young thing this week: On this date in 2010 he released the album Le Noise. Here is one of the fuzzy album's tracks.
I also buried a song title from another album in today's newsletter. Onward...
The bare-bones GOP tax proposal unveiled yesterday has plenty to make oil-and-gas executives smile even though it proposes to jettison a lucrative deduction that the industry has successfully fought to preserve for years.
What they like: The lower corporate rate of 20% of course, but also the quick write-off of capital investments.
Barry Russell, head of a trade group called the Independent Petroleum Association of America, issued a statement that called immediate expensing "critical to the continued American energy dominance" and boosting jobs.
For companies with overseas operations, Argus Media points out that the industry stands to benefit from the changes to treatment of foreign profits.
What they'll probably swallow: Two industry sources tell Axios that they're ok with the proposal to end the Section 199 deduction on domestic manufacturing income that's worth billions of dollars to the industry.
The Obama administration and Capitol Hill Democrats spent years proposing to end the industry's ability to use the deduction, drawing GOP pushback and fierce industry opposition. But things have changed.
Yes, but: The sprawling oil-and-gas industry has lots at stake in other aspects of the tax code, so there's plenty to haggle about as the GOP tax overhaul push proceeds.
The proposal would limit — how much is TBD — deductions for net interest expenses, which Argus notes that "pipeline owners and other debt-reliant energy companies use to raise capital."
Overall, the plan vaguely proposes to "modernize" the bevy of tax code provisions that govern specific industries. So, stay tuned.
Renewables: The plan is silent on whether Republicans will seek to revisit a late 2015 deal that extended key tax credits for development of wind and solar projects by five years.
Jeff Navin, a senior Energy Department official under former President Obama, tells Axios that he does not expect a major tax package to succeed in Congress. "But if it does move, the wind and solar industries are going to have to fight like hell to protect what they have," said Navin, a partner at the green energy-focused advisory firm Boundary Stone Partners.
A new International Monetary Fund blog post looks in-depth at a very tough problem — some of the worst effects of climate change will hit people who can least afford it.
Where climate change hits hardest:
What to do: The IMF says its analysis suggests that nations with "policy buffers" like lower public debt and flexible exchange rates have "somewhat smaller output losses from temperature shocks in the short run."
Go deeper: The post is drawn from the newly published climate change chapter of the IMF's next World Economic Outlook.
Record exports: New EIA data shows almost 1.5 million barrels per day of U.S. crude oil exports for the week that ended Sept. 22, a new record.
Taking the pulse: The Federal Reserve Bank of Dallas is out with its latest survey of oil-and-gas companies in its region on where executives think U.S. oil production will be by the end of 2018.
A plurality agree with the Energy Information Administration forecast of record-breaking output of slightly over 10 million barrels per day. A couple other takeaways...
Walk like a giant: Let's check in on the latest moves by ExxonMobil, the largest U.S.-based multinational oil company. Domestically, Exxon announced Wednesday that it has acquired another 22,000 acres in the Permian Basin shale region in recent months. The Houston Chronicle has a little more.
My Axios colleague Amy Harder sends along this analysis…
In Washington, deeming an energy resource "clean" depends on who you ask, but ultimately all resources have environmental impacts.
Driving the news: The question is on my mind as we're nearing the end of what numerous trade groups are dubbing "National Clean Energy Week." The trade associations behind the push represent nearly all resources except for traditional coal, drawing criticism from a collection of environmental groups that argue fossil fuels and nuclear power shouldn't be included.
Here's a quick primer to cut through the "clean" noise:
Fossil fuels: Coal is the dirtiest, oil is in the middle, and natural gas is the cleanest among traditional fossil fuels. Gas burns 50% less carbon than coal, though environmentalists have raised concerns about inadvertent emissions of methane, a potent greenhouse gas that's the primary component of natural gas.
Fossil fuels + emissions-capturing tech: This technology, technically viable but not widely commercially available, can capture up to 90% of a fossil fuels' emissions, upping the potential for fossil fuels to be a lot cleaner than they are today.
Nuclear power: Nuclear plants provide 60% of America's carbon-free electricity, but other environmental worries persist over long-term storage of radioactive waste, potential meltdowns or attacks, and mining of uranium, which is used as fuel.
Wind, solar and hydropower: These resources don't emit pollution or greenhouse gases, but environmentalists and others have voiced concerns about other issues like: wildlife impacts, potential water restrictions with hydroelectricity, and the sheer land space they occupy.
Ethanol: Corn-based ethanol is controversial for its environmental impact. Biofuels from non-corn sources don't have the same concerns, but they're also not nearly as commercially available.
Nuclear: An interesting scoop from Reuters last night...
China market for electric cars: CNBC looks at a new analyst's prediction that the Chinese market could eventually be Tesla's biggest source of revenue.
Toyota's new JV: Toyota announced it will partner with Mazda and Denso to form a joint venture called EV Common Architecture Spirit to develop electric vehicles, according to Automotive News.
Efficiency: Later this morning the American Council for an Energy-Efficient Economy will release its annual, in-depth report that provides a state-by-state ranking of energy efficiency policies and takes stock of the latest developments.
Congress: Rep. Lamar Smith, the GOP chairman of the House Science, Space and Technology Committee, is pressing the heads of major tech and social media companies for info on purchases of anti-fracking ads and promotions by Russian interests.
His letters to the heads of Facebook, Twitter, and Google are here. Smith's letters say he's trying to gauge the scope of Russian efforts to spread sentiment against fracking — the technique that has enabled the U.S. oil and natural gas surge — as a way to protect its energy market influence.