The only lower price than today’s closing price on a ton of carbon is ZERO
Perhaps reacting to the news yesterday about the IPCC getting taken to the woodshed, the growing number of stories in the MSM about the IPCC failure, and the recent layoffs at CCX, carbon trading has once again been devalued by the market. Amazingly, it lost 50% of it’s value for 2006, 2007, and 2008 “carbon instruments” today. Here’s the CCX front page graph at closing today:
The CCX end of day table really says it all, 50% off, from a dime to a nickel in a day:
It must have really killed the person to have to put in a nickel for the closing value today.
Charcoal briquettes and coal have more value than a ton of CCX carbon instruments these days.
Unless CCX starts making adjustments in single cents, the next downward adjustment is zero. The latest CCX advisory says they will be closed for labor day, and will reopen for trading September 7th. One wonders.
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Exactly what hot air is worth – virtually nothing!
Good grief! It’ll soon cost more in the electrons used for the trade than the credits will be worth.
The rats have left the building (at $7.00) leaving only the faint aroma of stinky cheese.
Well, doesn’t surprise me given that cap ‘n trade, or any other form of regulation is pretty much dead. Vive le market and all that!
Banks are exiting the carbon market like Deutsche bank:
http://www.reuters.com/assets/print?aid=USTRE67A3JK20100811
That and the current carbon prizes tells us that for the moment the climate fight is over:
http://www.washingtonexaminer.com/opinion/blogs/Examiner-Opinion-Zone/How-you-know-the-climate-fight-is-over-101807708.html
So why is it that I still have this gut feeling that our political establishment will give it an ultimate push to shove this cap & trade monster down our throats?
Blinded by absolute power these guys will push their limits to get this done, even if they go down trying.
This still isn’t over.
Now is your chance to get in at the bottom! LOL! The greasy slime balls made their money , now all there is left is the poor misguided tree hugging uber enviro nut cases who use one square of toilet paper to go to the bathroom with . Wake up guys it’s all a scam.
Your Friend
Brent In Calgary
There is Quebec, Ontario and British-Columbia that is entering to the Western Climate Initiative. At this price, they will buy some carbon credit for sell it at a higher price. Am I correct???
Maybe Al Gore will step in and do some bottom feeding.
This is a good sign.
But now watch for the bail-out/subsidies.
“The patient is dead, Jim.”
I wonder if Al is now shorts less…
I am so proud to have been instrumental in the demise of the worldwide carbon market. That was my current life goal.
The U.S. DOE (Department of Energy) has just spent $253 million to fund a CCS (carbon capture and sequestration) project for Air Products, an industrial gases supplier. The project (see link below) will capture CO2 from two existing process plants in an oil refinery in Port Arthur, Texas, then compress the CO2 into a pipeline for use in enhanced oil recovery. The two process plants are SMR – Steam Methane Reformers – that produce hydrogen from natural gas. The hydrogen is used in several refining processes.
The CCS systems will reportedly capture 1 million tons of CO2 per year. If merchant CO2 is sold for $30 per ton, as some sources report, then the Carbon Emissions Credit must be approximately $45 per ton to obtain a total revenue of $75 per ton, which then gives the project a 5 year simple payout or 20 percent (approximately) return on investment. Note that, if such increased production of CO2 becomes commonplace, the glut of CO2 in the market will depress CO2 prices. Thus, if merchant prices decrease to $20 per ton of CO2, then the Carbon Emissions Credit must increase to $55 per ton make up the difference. That’s a long way from 5 cents per tonne.
http://www.airproducts.com/PressRoom/CompanyNews/Archived/2010/16Jun2010.htm
wish some sceptics would picket the CCX!
anthony, u may be interested in this win for aussie farmer, Peter Spencer:
1 Sept: FarmOnline: Lucy Knight: Peter Spencer wins his day in High Court
PROPERTY rights crusader, Peter Spencer, who went on a hunger strike on his southern NSW farm earlier this year, has broken down outside the High Court in Canberra following an unanimous decision in his favour to finally have his case heard…
But the High Court today ruled that Mr Spencer has a case to be heard, and that there was essentially no case to stop it from being heard.
The High Court also ruled the Commonwealth pay full costs for Mr Spencer…
He hugged supporters outside the court and broke down when asked what the ruling meant to him and all Australian farmers.
Mr Spencer said the decision means “rural Australia will now have hope”…
“When I first spoke of carbon 13 years ago, people said ‘what are you talking about?’
“It has been the biggest lock-up, the biggest takings, in the free world out of war time.
“It represents 109 million hectares. 90 per cent of Australian land was stolen from the people and used to meet an international carbon treaty when it should have been taken from the coal-fired power stations.
“This was a cover-up of the worst proportions.”…
http://fw.farmonline.com.au/news/nationalrural/agribusiness-and-general/general/peter-spencer-wins-his-day-in-high-court/1929375.aspx
It is not actually the price for a tonne of carbon but the price for a tonne of CO2. Nevertheless, even though you get a substantial amount of oxygen thrown in with the carbon you buy with a tonne of CO2 for a nickel (or perhaps soon for nothing), it is still worth nothing.
If Al Gore’s put his money where his mouth is, a good portion of his $200 million in assets is tied up in CO2 credits. That would make the value of his assets fall faster than the temperatures in the Arctic possibly could.
I love how instead of using a header ID of year they use “vintage”, like the CC’s are a bottle of fine wine. So sticking with the wine theme what the Alarmists ended up with was Maddog 20/20 (click link for those that don’t know what MD 20/20 is: http://en.wikipedia.org/wiki/Low-end_fortified_wine ) instead of the Chateau Mouton-Rothschild Jeroboam they thought they had.
The article leaves the impression that the CCX is closed tomorrow (Sept. 1st) through the labor Day three-day weekend. That’s not the case. They will be open through Friday the 3rd.
http://www.chicagoclimatex.com/content.jsf?id=801
“Entities or individuals who trade on CCX for purposes other than complying with the emissions reduction requirements, such as market makers, CTA’s, proprietary trading groups, hedge funds and local traders may join the Exchange as Liquidity Providers.”
Te-he. I can think of better things to “provide liquidity” to than to these bozos.
It’s wildly overpriced at a nickel. As others have pointed out, what does one get for their purchase? Nothing. They’re selling…not even air. I could see if this were a futures market where they were taking bets that carbon would some day be rationed, but today it isn’t, so they’re selling…what?
R. de Haan says:
August 31, 2010 at 7:04 pm
Blinded by absolute power these guys will push their limits to get this done, even if they go down trying.
This still isn’t over.
=========================
I agree. We need to be vigilant. The battle is really only beginning.
Chris
Norfolk, VA, USA
Good times.
Okay, being the contrarian I am, that’s good enough for me! I’m IN!
I hereby bid ZERO for 1MILLION TONS of CARBON! I am gonna corner the market!!!
And I gots the money to back that bid up, too!!!!
I wanna buy 16 tons. Where can I send my 80 cents? The document would make a nice wallpaper or souvenir.
It is a great pleasure to see the attempt for the unproductive to create a product out of thin air falls to the ground.
Isn’t Al Gore heavily invested in that exchange?
Reminds me of the title of one of Seasick Steve’s albums “I Started out with Nothing, and I’ve Still got Most of it Left”
http://www.seasicksteve.com/