 US officials are said to be considering a federal climate change bill, though energy industry leaders have pointed out that the biggest obstacle to that would be the vast amount that would be needed to be invested to lower the nation's carbon dioxide and other greenhouse gas (GHG) emissions.
According to these industry leaders who oppose previously proposed climate change bills, Congress and the public do not fully comprehend the financial and technical challenges of reducing carbon emissions.
Tom Kuhn, CEO of Edison Electric Institute that represents investor-owned utilities, is of the opinion that there should be votes in both houses that will set benchmarks going forward even if election year politics will preclude a bill from reaching President Bush's desk. He advocated legislation that allows for reasonable, economy-wide cost for carbon dioxide emissions, either through a direct tax or cap-and-trade programs.
Kuhn said any bill will have to give the industry enough time to incorporate technological advances to meet the requirements and developing nations should be included in its forecast.
A cap-and-trade program allows a company with reduced emissions to sell a credit to another business that needs to exceed the emissions limit to operate.
"Planning and investment cannot be turned on and off like a spigot, without entailing huge, potentially non-recoverable costs and delaying urgently needed projects," Red Cavaney, president of the American Petroleum Institute, said.
Cavaney pointed out that multiple factors have contributed to the recent rise in crude oil prices, including strong global oil demand, tight spare production capacity, geopolitical tensions, falling U.S. crude oil inventories and a weak U.S. dollar.
David Parker, CEO of the American Gas Association, said he believes a climate-change bill is a "very real possibility" this year partly because it could be deemed a "legacy" for the Bush administration.
Parker also thinks that the fact that most analysts expect more Democrats, who tend to be less energy business friendly, in the Senate next year could push retiring Sen. John W. Warner, R-Va., the co-author of one climate bill, to work with industry to get something done before he leaves.
Cavaney was of the opinion that a piecemeal approach on climate change, similar to what has happened in recent years with energy legislation, could do more harm than good.
Parker agreed and said a quick fix bill would undoubtedly mean increasing the nation's use of natural gas as a source for electricity, which would push prices above the $7-$8 per 1,000 cubic feet range that consumers expect. THE END. |
