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Republicans on Capitol Hill rallying today against the energy bill unveiled by senate majority leader Harry Reid.
-- calling it anti business joining us now is John -- the CEO of acorn energy John thanks for joining us thank for having me.
Are both go over some of the -- to this bill is a lot going on and it.
Not as much as we originally thought of course but we that there is a lot wouldn't show -- ball screen right now.
-- small provisions for the Gulf of Mexico oil spill we're gonna do about that.
A boost in home energy efficiency.
Natural gas powered vehicles will be encouraged federal recreation program I have to tell -- when I first heard some of these things I was really confused.
You say the real problems taking off the cap on liability why is that with the downside of that should any industry take responsibility here.
Absolutely but afford to like a lot of laws they're going to congress today it's a bonanza for the lawyers and a catastrophe for business.
What do you mean by that well.
The we are we believed -- been drilling in the gulf for about thirty year successfully.
And small companies innovated with seismic technologies.
And found this bonanza -- it's been a huge boon to the gulf region.
So by putting an unlimited.
On these companies they won't be able to take the risk everything that small companies will be hit particularly hard because they would be least likely to be able to afford.
It messes like we just -- a golf right.
Well every well that they would drill would be basically a bet the company move.
Seismic technology has been the biggest economic boom to the United States economy -- because up -- 1980.
Seven holes out of ever ever ever out of every ten holes seven were -- so it was a tremendous cost us as consumers you guys have to do it then.
Yes actually the the the rate of of the dry holes has dropped to one point 121.
And it's because of this technology nice and I have to tell me what the technology it's a case of seismic technology -- what it is is it's the ability be able to.
Identified the oil underground.
So seismic technology used vibration techniques and it allows you to actually pinpoint the oil -- like measuring for an earthquake or something that is accurate -- technology.
All right so.
-- look I think at the end of the day everybody in this country expects the oil industry to step up here and say hey -- -- happy to pay our fair share to pay all the costs of any problems down the road why should -- industry paper -- shouldn't there.
-- look this is what it cost to do business.
Absolutely well the unintended consequences.
Of eight unlimited.
A cap and limited liability for companies means that small companies simply can't play.
And -- us jobs tremendous jobs every one drilling rig equals 1000 jobs while.
That's a lot that's a lot of people out there.
But you know.
I think to feel like the industry is dominated by these big players how small coming small companies are -- There -- to food chain there's there's actually 101000 oil and gas companies the United States -- attention is.
-- the innovation comes from a small companies -- get acquired by the big companies and and so we're gonna kill off.
The the golden -- our gold and energy gets obviously jobs and very much at stake here.
But what about the structure of the industry itself would it be a good thing for the industry to be completely dominated by.
Two or three players actually not anybody that has ever worked for big company knows that.
Big companies are not innovative the heart and soul of our country the source of of innovation the pioneer nation of our country comes from small company.
All right so that you're concerned about the small companies obviously out there and keeping in the nation going.
But what about this this conversation that's been going on about how we need to raise taxes on the industry.
To pay for this that's also part of the bill it's not been disclosed yet I don't believe exactly how much that's gonna be but there's going to be a sense on a barrel tax on oil companies.
To pay for this are you in -- Well they're they're going to be increasing the the current taxes by six times so it's it's quite a large increase.
It's bad for the economy because it's gonna increase cost to the -- consumers exactly and everybody vilified energy companies as we're gonna get up.
Well what we're gonna get -- us.
Because we're the ones ultimately pay for electricity when the winds of pay for oil and gas that that the company is the big energy companies are religious book keepers might well.
John thanks for your time today really interesting stuff we appreciate.
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