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31 January, 2009

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Carbon regulations have been developing and changing on a global scale for years. On the other hand, Chevron CEO David O'Reilly is specifically concerned about the next five years.

Actually, O'Reilly ranks carbon regulation right up there with swinging oil prices among his list of major cause of worry for the oil sector. In fact, he said it's possible that carbon will have an even bigger impact on the industry than prices as it is a virtual unidentified.

Increasingly plenty countries are crafting policies that restricts on carbon dioxide output. Businesses - mainly auto makers, factories and other industries that do transaction with carbon emissions will require to assist the new regulations.

This could cost businesses a big chunk of change, and very few businesses have money to spare these days. Auto makers are already in dire straights and are discussions with the government over a bailout.

The United States Congress is hopeful that it will end a bill that regulates greenhouse gas emissions this year. House Speaker Nancy Pelosi reveals that they will have a bill ready by December. Negotiators plan to take part in global climate talks in Copenhagen, Denmark.

The bill they are planning to shape would be a cap-and-trade bill. Under that kind of legislation, there would be a limit on the amount of carbon and other greenhouse gases that businesses could produce. On the other hand, businesses could sell or trade their carbon credits among each other as long as the entire carbon emission continues to be the same.