This week, Sens. John Kerry and Barbara Boxer kicked off the climate debate in the U.S. Senate by unveiling legislation more aggressive than previous plans put forth by the House of Representatives and the White House.
The Kerry-Boxer bill contained the same “cap-and-trade” component put forth by the Administration and the House and sets stricter goals for reducing so-called greenhouse gas emissions. The current bill requires a 20 percent reduction over 2005 levels by 2020, instead of a 14 percent reduction the Obama Administration called for and a 17 percent number floated by the House.
The 801-page bill took little time to stir fierce opposition during a period of record-high unemployment, sagging energy prices and worldwide recession.
The American Petroleum Institute said the bill undermines the nation’s energy security by making consumers more reliant on foreign sources of refined products, perhaps doubling the United States’ dependence on imports of gasoline, driving up costs and killing American jobs.
“America needs all the jobs we can get and our economy will need energy from all sources to fuel a recovery and sustain economic growth,” said Jack Gerard, president of the American Petroleum Institute.
Oilfield executives across the Gulf Coast openly express concerns about the Obama Administration and the current Congress - worried higher taxes, repeals of tax incentives, and “cap-and-trade” initiatives will further drive energy companies to overseas markets where they can operate cheaper and with fewer regulations.
“The 9.2 million workers supported by the oil and natural gas industry have a hard time understanding how America’s economy will be better by threatening or eliminating their jobs and the jobs of those who depend on the energy they produce,” Gerard said.
With fossil fuels by far the top domestic energy source for the foreseeable future, consumers could soon wonder aloud why elected officials are supporting policies that will raise energy costs without delivering measurable benefits to the environment.
President Obama hailed the legislation and told the Associated Press it moves the U.S. “one step closer to putting America in control of our energy future and making America more energy independent.”
The President’s comment is 180 degrees from what industry leaders contend the results of the legislation would be. However, Republicans understand Democrats control everything right now and will push forward with some version of the legislation. The debate is just beginning and all associated with the energy sector should stay vigilant and keep in touch with lawmakers on the issue.