OIL & GAS STUDY SAYS CAP&TRADE WILL COST (THEM)

Study estimates Obama budget's cap-and-trade impacts on industry
Nick Snow, April 30, 2009 (Oil & Gas Journal)

"The administration of US President Barack Obama's cap-and-trade program in its fiscal 2010 budget proposal would have substantial impacts on the oil and gas industry, a new study by Charles River Associates said.

"The conclusion is part of a larger examination commissioned by the Coalition for Affordable Energy, a group of 180 trade associations and the US Chamber of Commerce…[I]t found that US energy cost increases resulting from the proposed program would cost 3 million jobs by 2030."

Those who do the harm must pay the price. (click to enlarge)

"…[E]nergy impacts would include a shift toward more natural gas to generate electricity. Gas demand would grow by an estimate 3 tcf, resulting in consumers paying an additional $7.20/MMBtu or 56% more by 2025…

"Increased gas imports, not domestic production, are expected to meet most of the gas demand growth because US producers' costs would climb…By 2025, gas imports could rise an estimated 2 tcf, or 160%, while US gas production would increase only 700 MMcf, or 5%…"

Cap and trade can be designed to be fair. (click to enlarge)

"Refined product demand would decrease, with US processors feeling the drop disproportionately, the study said…[T]he drop in US oil product demand over the 2020-30 period could be 604,000 to 2.151 million b/d annually…

"US Sen. James M. Inhofe (R-Okla.), the Environment and Natural Resources Committee's ranking minority member, said that the study shows that the administration's proposal for a carbon cap-and-trade program would destroy jobs, raise energy prices and harm consumers…"