What the Frack? A Bill To Make George Soros Richer

Posted on June 15, 2011 by


$pooky Dude to win big with Hr 1380

Rules: A bill encouraging the use of natural-gas-powered vehicles will give the EPA authority to regulate greenhouse gases while rewarding the Democratic left’s patron saint.

We like natural gas. It’s the cleanest-burning fossil fuel, the U.S. has lots of it and, thanks to technologies such as hydraulic fracturing (aka “fracking”), we can get even more of it from the vast shale formations that dot the country.

Others like it, too, which is why a bill floating through Congress, the New Alternative Transportation to Give Americans Solutions Act of 2011 (HR 1380), or Nat Gas Act, has seen a number of Republicans joining central-planning Democrats in supporting it.

But HR 1380, sponsored at last count by 105 Democrats and 83 Republicans, is another government intervention in the free market. Instead of getting government out of the way of innovators, it would give a tax credit for up to 80% of the purchase cost of a natural gas vehicle — with a cap dependent on the car’s weight, $8,000 for passenger cars and up to $64,000 for heavy trucks — to get more gas-powered vehicles on the road.

It so happens that a company called Westport Innovations is a leading provider of technology that allows engines to operate on clean-burning fuels such as compressed natural gas and would be expected to benefit from HR 1380’s huge allocation of taxpayer dollars.

According to the folks at gurufocus.com, which monitors the wheeling and dealing of major investors, George Soros, the Hungarian billionaire who has made a fortune manipulating currencies among other financial shenanigans, owned 5,547,604 shares of WPRT, valued at $122 million as of March 31. That represented 1.45% of his equity portfolio and his third-largest holding.

So Soros could once again profit handsomely from U.S. energy policy determined largely by a Democratic party whose causes he has supported over the years, just as he profited from his investment in Petrobras, the state-run Brazilian oil giant.

While the administration has imposed an almost total ban on U.S. offshore drilling, the U.S. Export-Import Bank has guaranteed billions in loans to Petrobras as President Obama has encouraged its offshore drilling efforts, promising to be Brazil’s best customer for oil found with the help of our money.

As of May 24, Soros’ fund owned 1.1 million shares of Petrobras. He sold out of Petrobras in mid-2010 only to return the fourth quarter of 2010 with the purchase of roughly 588,000 shares.

Read Page 2 @ http://www.investors.com

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