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Climate Bill Called Threat To Refining

by Glenn Hess
August 31, 2009 | A version of this story appeared in Volume 87, Issue 35

U .S. fuel-refining operations would be forced to move overseas and the nation would become more dependent on imports of gasoline and other petroleum products if the House-passed climate-change legislation is enacted into law, the oil industry warned last week. The American Clean Energy & Security Act (H.R. 2454), which the House narrowly passed in June, would discourage investment in U.S. refining capacity because the cost of doing business would soar, says the American Petroleum Institute, the oil industry’s main trade group. An assessment of the bill conducted for API by consulting firm EnSys Energy says that production at U.S. refineries may drop by 4.4 million barrels a day, or 25%, while output at refineries in countries that do not limit greenhouse gas emissions would rise. The impact on global emissions would be minor, the study contends, as reductions in the U.S. would largely be offset by increases in emissions in other countries. “This study clearly shows the devastating impact this legislation could have on U.S. jobs and U.S. energy security,” API President and CEO Jack Gerard says. The Senate has yet to vote on the measure.


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