Climate Change Will Increase Dependence on Foreign Oil

According to the American Petroleum Institute (API), the United States will be more dependent on foreign oil if climate change legislation, narrowly passed by the U.S. House of Representatives in June, becomes law.

A recent study by the global consulting firm EnSys Energy, on behalf of API, indicates that the legislation would reduce domestic refining capacity by up to 25 percent, causing investment in U.S. refining capacity to plummet because the cost of doing business could soar. Production at refineries in countries that do not limit their own greenhouse gas emissions would rise.

"This study clearly shows the devastating impact this legislation could have on U.S. jobs and U.S. energy security," said API President and CEO Jack Gerard in a press release.

Increased costs on American refiners by the "American Clean Energy and Security Act" would reduce production rates to as low as 63 percent of capacity, compared with a current rate of 83 percent, said the study. The legislation could also cause investment in refining to fall by $90 billion and output to fall by 4.4 billion barrels per day. The study also states that decreases in greenhouse gas emissions in the U.S. would be offset by increases in emissions by other countries as they increase their oil production.

"A deep decline in U.S. refining activity would have a ripple effect throughout the economy, affecting jobs in sectors beyond the oil and gas industry," said Gerard. "Climate legislation should not come at the expense of U.S. economic and energy security."

Senate leaders have said they will pass a climate change bill this fall, but there has been no timetable set.