As the Obama administration prepares its energy policy, worried U.S. producers are paying close attention to determine the effect new legislation will have on domestic operations.

In late June the American Petroleum Institute (API) issued a statement voicing concern about the Waxman-Markey climate bill passed by the U.S. House.

“We share President Obama’s well-intentioned goal of having a comprehensive energy policy that grows the economy, creates jobs, promotes energy security and addresses climate change,” said API president Jack Gerard. “But we must take issue with the president’s support for the House climate legislation authored by representatives Henry Waxman and Edward Markey.”

Gerard said that independent analysis indicates that the bill in its present form would burden American consumers and businesses with substantially higher energy costs.

“In fact, when faulty assumptions in the Congressional Budget Office’s (CBO) analysis of the Waxman-Markey bill are corrected, the annual cost to a household could be as much as $3,300 by 2020, not the $175 the CBO forecast. That is more than a few postage stamps. The House bill is a job killer,” he said.

Gerard quoted a recent study by CRA International for the National Black Chamber of Commerce, which estimates a net loss of more than 2 million jobs a year if the bill becomes law.

“While we support creating new jobs, the legislation offers an unnecessary and false choice of eliminating good jobs in the oil and natural gas industry to create green jobs,” he said.

Comments