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I’ve lived in Wyoming in the past (one of the pretty parts), it’s different than most places. The key to understanding this bill is that Wyoming is subsidized

I’ve lived in Wyoming in the past (one of the pretty parts), it’s different than most places. The key to understanding this bill is that Wyoming is subsidized entirely by energy exploration. There is no corporate or individual income tax, low property and sales taxes and no will to raise them any time soon. With coal, natural gas, and oil prices permanantly sagging they’re thrashing around looking for ways to replace those royalties. This is one of the prongs in the state’s new approach, they are also drafting legislation attempting to capitalize on blockchain tech using thier biz-friendly culture and cheap energy. I hope they figure it out, people I care about have jobs tied to state funding.

adventured 9y ago
Oil prices permanently sagging? WTI futures are at $65 and heading north. Most oil production in the US is now solidly profitable at those levels. Some of that production is extremely profitable there, which is why US oil production has been soaring. The dollar, which heavily dictates the price of oil, is heading south with the vast endless sea of budget deficits inbound over the next ten years. Higher commodities prices due to a debased dollar, is an easy bet for the next decade. The trade wars will likely make the dollar damage worse.
- soundwave106 9y ago
  I think it's credible to be concerned about a government that is funded entirely based on fossil fuels, given the likelihood of electric vehicles and renewables / alternatives playing an increasing role in transportation and energy in the future. Medium term, this is probably not an issue, IMHO. But the outlook could be grim if "peak oil" actually happens due to lack of demand, and no reform has happened. The Economist pointed out (https://www.economist.com/news/special-report/21738583-traditional-oil-producers-suggest-clean-energy-not-threat-middle-east-and-russia https://www.economist.com/news/special-report/21738583-tradi...) that this already has happened in Venezuela (a very different situation than Wyoming in terms of government contract, of course, but one that shows the dangers of overreliance.)

adventured 9y ago

Oil prices permanently sagging? WTI futures are at $65 and heading north. Most oil production in the US is now solidly profitable at those levels. Some of that production is extremely profitable there, which is why US oil production has been soaring. The dollar, which heavily dictates the price of oil, is heading south with the vast endless sea of budget deficits inbound over the next ten years. Higher commodities prices due to a debased dollar, is an easy bet for the next decade. The trade wars will likely make the dollar damage worse.

soundwave106 9y ago
I think it's credible to be concerned about a government that is funded entirely based on fossil fuels, given the likelihood of electric vehicles and renewables / alternatives playing an increasing role in transportation and energy in the future. Medium term, this is probably not an issue, IMHO. But the outlook could be grim if "peak oil" actually happens due to lack of demand, and no reform has happened. The Economist pointed out (https://www.economist.com/news/special-report/21738583-traditional-oil-producers-suggest-clean-energy-not-threat-middle-east-and-russia https://www.economist.com/news/special-report/21738583-tradi...) that this already has happened in Venezuela (a very different situation than Wyoming in terms of government contract, of course, but one that shows the dangers of overreliance.)