Brandon Barnes, Rhine District, Cincinnati Police Department discussed on Bloomberg Intelligence

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120 countries. This is Bloomberg radio. Now, a global news update the inflation reduction act is headed to the House after clearing the Senate, the bill was approved with vice president Harris casting the tie breaking vote following a marathon weekend session. The house is expected to take up the massive economic plan on Friday, majority leader Chuck Schumer hailed today's approval of the package as historic and long overdue. Police and Cincinnati are investigating a mass shooting that wounded 9 people at a bar early this morning, begun fire erupted in the city's over the Rhine district, about one 30 a.m., police say all of the victims were being treated for non life threatening injuries at a nearby hospital. A Cincinnati police department spokesman says one responding officer fired his weapon at the shooter, but it's unclear if the suspect was hit as he fled the scene. There were no reports of arrests. The governor of New Mexico says she's sending additional police to Albuquerque to investigate the fourth murder of a Muslim man for Muslims have been killed in separate shootings in Albuquerque since November and police believe the murders could be related. I'm Chris karashi. You're listening to Bloomberg intelligence with Alex Steele and Paul Sweeney on Bloomberg radio. All right, well, U.S. lawmakers $370 billion climate and energy reconciliation proposal includes three key takeaways that would be most impactful for the oil and gas sector. Let's drill down on that with Bloomberg intelligence analyst Brandon Barnes. All right Brandon, what are those key issues for the energy space? Hey, Paul, I like the use of drill down there. That's good. And let's start with drilling, right So EMPs are probably the most impacted in terms of cost being added to them from the proposed reconciliation bill. It is coming in two different ways. One is a methane fee, which is a very popular approach from Democrat and those opposed to fossil fuels these days is trying to tag a fee on for emissions of methane at various places. Well head, compressors, pipelines where have you? The other one is going to be they're going to raise royalty rates on federal lands to 4% raise. These are billions of dollars across the industry, but that's helpful when you actually have landed drill on from the federal government, which is what brings us to the second takeaway, which is there's a net positive for offshore. So offshore drilling in the U.S. as we all know, gulf Mexico is primary target for exploration and production. There has not been a viable acreage sale from the federal government since before the fall of 2021. And so that has and we weren't supposed to see one until at least fourth quarter of 23. So this bill addresses all of that and everything in between and even going back further by reinstating old sales that were invalidated by a court. Let me give you a couple of people who are important in that place. You've got Chevron, Oxy, BP Shell Exxon. All of them were the highest bidders from that sale that would be reinstated a $192 million in bids. That's just one sale. They're supposed to happen at least once a quarter. And we haven't had one. So this bill would put that back into place. Third thing, we wanted to talk about was actually outside of this. Whatever background dealings were going on between senator Schumer and Manchin was allegedly part of that was we're going to agree later on to change federal permitting altogether. Sometime in the fall, maybe end of September. Big changes to energy infrastructure permitting, which hits renewables and oil and gas infrastructure in the same way because no one's getting anything built based on permitting, challenges in the course, et cetera. Interestingly enough, there's a carve out for mountain valley pipeline equitrans midstream that is the big one we think intervention has been using to try and he wants to get that push through. That goes West Virginia to Virginia, big gas pipe and stuck for a long time. Brandon, just give us a sense here. I mean, we were just paying $5 a gallon for gasoline a few weeks ago. There's real energy shortage that's going to get very acute in Europe this winter. What's the feeling with any energy space within the regulatory aspect of the energy space about, okay, we need to move towards clean energy, but boy, we also need some of this fossil fuel stuff, the tide is over. There's a lot of energy insecurity out there. How do you think about that? Well, look, I think that's we talked about this before and with reference to midstream, especially LNG exporters, right? U.S. keeps getting hit in different ways, LNG Freeport went offline because they have fire. They're trying to get back up. It just recently come to agreement with Sims of the federal regulator there. You got to be in pass and schneer. They're trying to push back on an air rule. Like there's all this regulatory morass that is threatening transmission and export of energy that could really help Europe, especially on the natural gas side. So I think there are certainly positive signals coming out of the companies in the energy and gas oil and gas companies here that are saying we wouldn't mind having this bill out there because that would help with, especially federal acreage for offshore, but maybe we get some permitting deal that we really badly need. Yeah, because it's interesting. Again, I think most people generally support the move towards green energy, but boy, I just had WTI crude at a $120 a barrel, you know, a few months ago with since come down and but it just seems like and I keep asking people, well, we'll just go build a new refinery, you know? And they tell me, it's not so easy, number one, and number two, there's really no incentive to go do that because, again, they're getting a lot of pressure from a lot of areas to move towards green energy. It seems like it's a very difficult transition. Yeah, really mixed signals coming out of Washington D.C., right? They're being big oil companies being called greedy. They're saying that gas prices are here because you guys are trying to get bigger profits. But just the way energy works worldwide, it's all connected. That doesn't really ring true. And what's being offered from certain corners of policymakers is let's push hard for green shore. But there's no bridge. There's no bridge from where we are now the way we consume electricity the way we use it for transportation and where people want us to go. And that reality just hasn't been crossed. I think that's the mix we get between politics in D.C. and sort of the reality of electricity and energy consumption in the United States. Right. I mean, $370 billion, this climate energy reconciliation proposal seems like a big number to me. Is it give us a sense of how material it is? Will it move the needle? Probably, I mean, honestly, this is more of a political move than anything else. This is let's get a win. We need something. We couldn't get those back better. This is a very light version of build back better. The last bill they got through that infrastructure act was over a trillion. And so this is much smaller in terms of the bigger packages that they would try and get through. Overall, it's in the $700 million range, but there's some energy and climate portion of 370 billion. We're talking about hundreds of billions of dollars. Those are big numbers, but for government spending, it's not a ton and it's likely that what this is going to do for the most part is this is targeting the tax side, right? Let's get some incentives out there to continue building those renewable projects. Let's get some incentives out there on EVs. Let's try and push people to come back to the table and develop again. All right, great stuff there, Brandon really appreciate it. Our thanks to Bloomberg intelligence analyst Brandon Barnes. All right, while we're talking about bill's another major piece of legislation in the works is the $740 billion inflation reduction act. The renewable industry may benefit if it passes while others like big pharma might not be so lucky. For more, let's bring in Bloomberg intelligence and senior government analyst Duane Wright Dwayne, what's in this bill for the healthcare industry? There's a couple of pieces and we start with the pharmaceutical side of things. The bill includes the Democrats long-standing goal to bring in drug prices. There's a provision in the bill that would allow or require the secretary of HHS to negotiate prices on some high expenditure or D and part D drugs and those prices would be available in the Medicare marketplace. Now the bill is and what's been proposed is short of what Democrats had proposed in the past. But there are enough moderate Democrats in the House and in the Senate to scale back the proposal so that we're looking at each of the first couple of years, only a handful of products ten to 15 products that will be subject to negotiation and those prices would be passed on to Medicare, to savings are not as big as what Democrats had hoped they'd see in previous proposals, but they are significant. It will bring in about a $100 billion in savings

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