The People of America's Oil and Natural Gas Indusry

Continued Warnings about Harmful Climate Legislation

Jane Van Ryan

Jane Van Ryan
Posted November 12, 2009

On Tuesday, yet another voice spoke out against the proposed climate legislation under consideration in Congress. This time it was Margo Thorning, senior vice president and chief economist at the American Council for Capital Formation (ACCF), speaking before the Senate Finance Committee.

In her testimony, Thorning referenced the findings of a recent ACCF/National Association of Manufacturers (NAM) study that found the House's version of the climate bill would:

  • Reduce total U.S. employment (net of new jobs created in green industries) by between 1,790,000 to 2,440,000 jobs in 2030. Manufacturing is hard hit, absorbing between 59 to 66 percent of job losses over the 2012-2030 period; and
  • Lower GDP by up to 2.4 percent relative to the baseline forecast in 2030.

Additionally, Thorning specifically mentioned the oil and natural gas industry and energy's vital role in our nation's economic recovery:

"Promoting U.S. energy supplies could lessen dependence on foreign sources while enhancing U.S. job growth. Further policymakers should avoid increasing taxes on the oil and gas industry to avoid raising the cost of capital for needed new investment. Improving the tax treatment for U.S. energy investments would also help pull through cleaner, less emitting technologies. An analysis prepared by Ernst&Young for the ACCF showed that U.S. firms face much higher taxes on new investment than do their competitors in other countries."

For more information, read Thorning's full testimony, watch the video above and read the ACCF/NAM study on the economic impact of the Waxman-Markey American Clean Energy and Security Act.

As always, we welcome your comments and perspective on this legislation below.