How the Dodd-Frank Act Harms the U.S. Energy Industry - News and Current Events | futures io social day trading
futures io futures trading


How the Dodd-Frank Act Harms the U.S. Energy Industry
Updated: Views / Replies:630 / 1
Created: by kbit Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 90,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Reply
 
Thread Tools Search this Thread
 

How the Dodd-Frank Act Harms the U.S. Energy Industry

  #1 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

How the Dodd-Frank Act Harms the U.S. Energy Industry

Though many in Washington would deny it, taxing, spending, and borrowing are not the only ways federal policies can impact taxpayers and our economy. Regulating has become an expensive enterprise on its own. The Competitive Enterprise Institute's latest Ten Thousand Commandments Report has compiled research estimating the total annual cost of federal regulations to taxpayers and the private sector exceeds $1.8 trillion.

How has this burden grown so large? One way is by hiding regulations affecting many industries in legislation that would appear to apply to just one sector of the economy. A case in point is the 2010 Wall Street Reform and Consumer Protection Act, also called the Dodd-Frank law.

The organization I serve, National Taxpayers Union, or NTU, raised many objections about the Dodd-Frank legislation, ranging from harsh interchange fee rules on debit card issuers to the impact the law (and other federal edicts) can have on start-up companies.

But one seemingly obscure part of Dodd-Frank is aimed not at banks or financial institutions; rather it is aimed at American energy. Section 1504 of the law would force oil and mining companies listed on the U.S. Securities and Exchange Commission to expand disclosure of payments to foreign governments while excusing foreign competitors.

What's wrong with disclosure? Nothing, as long as everyone abides by the same set of standards. And here is the painful rub with Section 1504: In essence, the rule would give foreign competitors--largely state-owned oil and gas firms--access to information about what American companies are paying to governments overseas, enabling them to outbid and outmaneuver in the global race for energy resources.

This rule would also come with a hefty price tag, according to some industry compliance observers. American companies would be forced to report all payments to foreign governments--from large contracts to small projects.

Combined with proposals to strip our oil and gas industry of tax-saving provisions, many of which are available to a variety of businesses, the new disclosure law would put America's international oil companies (IOCs) at a sharp disadvantage against foreign rivals who won't have to face similar barriers-to-entry.

Section 1504 was included in the final Dodd-Frank bill at the well-intentioned behest of Sens. Ben Cardin and Richard Lugar, who hoped that a new regime for oil and mining transparency here would help to ease the very real problem of corruption in the business dealings of governments abroad.

But here again, the results may not be as satisfactory as supporters would hope--it is plausible to argue that some governments would decide to fully circumvent partnerships with U.S. companies in favor of deals with non-SEC-listed firms that would offer fewer "strings attached."

According to the Council on Foreign Relations, one reason China has been so successful in securing oil resources in Africa is that it has adopted a policy of "noninterference" and, reportedly, a penchant for paying bribes. If Section 1504 rules prove to further incentivize such behavior, then the well-being of economic liberty at home and in the rest of the world could actually be harmed rather than helped.

Still, the disclosure rules continue to have ample support from several organizations who dispute the "anti-competitive" argument, citing that most of the world's IOCs and eight of the 10 largest mining companies are registered with the SEC.

Yet, firms like ExxonMobil don't even rank in the top thirteen largest global energy companies (as measured by reserves), which are all state-owned. In fact, over 75 percent of global oil resources are controlled by government-owned National Oil Companies, or NOCs, including Gazprom (Russia), China National Petroleum Corp., and Petroleos de Venezuela, who won't have to comply with the rules.

American firms competing for scarce natural resources are already at a disadvantage, and this trend is projected to worsen. A recent Economist special report on "state capitalism" (an oxymoronic term if there ever was one) describes how the top-ranked NOCs are using their leverage and special treatment at home to expand their global reach. By contrast, American firms must deal with onerous and increasingly arbitrary U.S. tax policies, which make it more difficult for them compete on a global scale.

The United States has the second highest effective corporate tax rate of all Organisation for Economic Co-operation and Development countries, and proposals to repeal dual capacity (an essential tax credit that protects national oil and natural gas firms from being taxed twice on income earned and taxed abroad) would further undermine U.S. competitiveness in the energy space.

As with so many other federal regulations, the potentially adverse consequences of this SEC regulation deserve close scrutiny. At a very minimum, we must ensure that that new transparency and tax rules don't undermine those SEC-listed companies who already comply with all of the U.S. legal requirements. Overall, a systemic revision of the whole tax code--and an equally systemic revision of regulatory policy, which the House of Representatives has initiated--would benefit our entire economy.


How the Dodd-Frank Act Harms the U.S. Energy Industry - Yahoo! Finance

Reply With Quote
 
  #2 (permalink)
Elite Member
Aurora, Il USA
 
Futures Experience: Advanced
Platform: TradeStation
Favorite Futures: futures
 
kbit's Avatar
 
Posts: 5,872 since Nov 2010
Thanks: 3,301 given, 3,332 received

Yet another example of (un?)intended consequences......

It's amazing that ANYONE could think that Frank and Dodd could come up with intelligent legislation in the first place is beyond me.....

Reply With Quote

Reply



futures io > > > > How the Dodd-Frank Act Harms the U.S. Energy Industry

Thread Tools Search this Thread
Search this Thread:

Advanced Search



Upcoming Webinars and Events (4:30PM ET unless noted)

Jigsaw Trading: TBA

Elite only

FuturesTrader71: TBA

Elite only

NinjaTrader: TBA

Jan 18

RandBots: TBA

Jan 23

GFF Brokers & CME Group: Futures & Bitcoin

Elite only

Adam Grimes: TBA

Elite only

Ran Aroussi: TBA

Elite only
     

Similar Threads
Thread Thread Starter Forum Replies Last Post
Treasury Hits Back at Critics Of Dodd-Frank Rules kbit News and Current Events 0 January 12th, 2012 04:21 PM
A Not-So-Happy Birthday for Dodd-Frank kbit News and Current Events 0 July 5th, 2011 11:10 AM
Dodd-Frank Act OTC Gold Prohibited jpygbp Currency Futures 7 June 26th, 2011 10:35 PM
Bernanke: Dodd-Frank Implementation: Monitoring Systemic Risk and Promoting Financial kbit News and Current Events 0 May 12th, 2011 10:44 PM
Frank Caliendo redratsal Jokes 8 May 9th, 2011 11:09 AM


All times are GMT -4. The time now is 09:53 PM.

Copyright © 2017 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432, info@futures.io
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts
Page generated 2017-12-15 in 0.10 seconds with 19 queries on phoenix via your IP 54.91.171.137