April 16, 2021
Texans are still paying for the blackouts caused by a winter storm in February that knocked out power for millions. Last week, electricity prices in the state spiked again as a cold front passed through while half of the state’s power plants remain offline for maintenance.
Throughout the crisis, energy economists have been clear: Upgrading the grid for extreme weather is technically easy. Winter storms don’t cause regular blackouts in colder states. But it requires regulators to make a tricky value judgement about how much capital spending to require of electric utilities (costs that will ultimately be passed to customers) in order to avert a disaster that may arrive only once a decade.
The Value-Added Tax: A Recipe For More Spending… And More Debt
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It is profoundly naive to think a VAT will lead to lower deficits and less debt.
It is profoundly naive to think politicians will use VAT revenues to lower other taxes.
Consider, for instance, Alan Viard of the American Enterprise.
He wrote a column last November arguing that we should let politicians in Washington have this new source of tax revenue, and I explained why his arguments were wrong.
But I’m obviously not very persuasive since he just reiterated his support for a VAT in an interview with the Dallas Federal Reserve Bank. Here are some of the highlights (lowlights might be a better term).
Oil prices hit post-pandemic highs in recent weeks, only to fall back amid concerns about the pace of vaccinations and renewed lockdowns in different parts of the world.
But oil prices are still at levels where U.S. companies can restart drilling, according to a variety of analysts. Drilling activity does appear to be increasing, but it remains to be seen if production will follow suit.
Rig count jumps
U.S. oil production remains stuck at about 11 million barrels per day (Mbd), roughly 2 Mbd below pre-pandemic levels.
Across the board, shale executives have promised to exercise “restraint,” reining in previously reckless drilling practices. At the same time, drilling activity has steadily increased for much of this year.
Official Statement:
Williamson County and Cities Health District (WCCHD) has learned that the first three cases of the B.1.1.7 (UK) variant of COVID-19 have been confirmed in Williamson County. The variant was discovered and confirmed through lab testing by the Texas Department of State Health Services (DSHS) in March.
The residents have no history of travel and were infected with COVID-19 in early February. COVID-19 variants have likely been in central Texas for weeks, after a Travis County resident with no history of travel was discovered to have a variant in the beginning of February. Texas continues to see an increase in B.1.1.7 cases around the state.