Cap & Trade = Us business decline

Climate Bill Could Cause Heavy Reliance On Foreign Oil

A climate proposal being discussed by members of Congress could reduce US oil production by 25 percent, resulting in increased reliance on foreign oil.

The H.R. 2454 bill, also known as the cap-and-trade bill, is proposed to cut greenhouse gas emissions by 17 percent from 2005 levels by 2020.

The bill could increase the US’ dependence on foreign oil by up to 19.4 percent by 2030, according to a study conducted by EnSys Energy and commissioned by the American Petroleum Institute (API).

The API, which is opposed to the climate bill, claims that US oil output could be slashed by up to 4.4 million barrels per day by 2030 to 12 million barrels per day.

Additionally, investments in US oil refineries could drop by 88 percent – or about $90 billion – by 2030.

“Production at U.S. refineries would drop while production at refineries in countries that do not limit their own greenhouse gas emissions would rise,” API said in a statement. “The impact on global refinery greenhouse gas emissions would be minor as reductions in U.S. emissions mostly would be offset by increases in emissions in other countries.”

Additionally, the API has cited a study by global consulting firm CRA International, which found that the American Clean Energy and Security Act could result in the loss of more than 2 million jobs nationwide and a 1.3 percent decline in the national gross domestic product (GDP).

The average U.S. household would see its purchasing power fall by $910 in 2015 and by $1,170 by 2030, according to the CRA International report, which was also commissioned by API.

“This study clearly shows the devastating impact this legislation could have on U.S. jobs and U.S. energy security,” said API President and CEO Jack Gerard. “Climate legislation should not come at the expense of U.S. economic and energy security… A deep decline in U.S. refining activity would have a ripple effect throughout the economy, affecting jobs in sectors beyond the oil and gas industry. Steelworkers, construction workers, even the shop keepers, school teachers and waitresses working in communities where refineries operate would feel the pinch.”