For Immediate Release
Wednesday
October 28, 2009
Contact Information:
Steve Higley 202-552-8455
NPRA Chairman, Valero CEO Bill Klesse Testifies Before Senate Committee Against Cap-and-Trade
“This legislation attempts to raise oil product prices so that other less economic energy sources look better by comparison. Is this really fair to the American consumer or to our industry? As diesel fuel prices increase, what happens to the trucking and railroad industries and those jobs? In the end – what happens to our competitiveness for any goods we produce?”
WASHINGTON, D.C. – Bill Klesse, Chairman of NPRA, the National Petrochemical & Refiners Association, and CEO and Chairman of Valero Energy Corporation, today testified before the U.S. Senate Environment and Public Works Committee expressing the refining community’s concerns with S. 1733, the “Clean Energy Jobs and American Power Act.”
“The implications of this legislation are devastating for the American people and for the American refining and petrochemical industries,” Mr. Klesse told Committee members. “One of our chief concerns is that this legislation provides foreign refiners and petrochemical operations a competitive advantage to American businesses. You must remember that we are in a global business. India, China and other countries provide intense competition to American refiners. With the recession, increasing regulations, and now the potential costs associated with this legislation, results are devastating. Not only to our businesses, but to the millions of Americans who work in the industry. …
“As to the consumer, this legislation imposes large, new costs. Close to 3 billion tons of CO2 are emitted each year in transporting you and your constituents across our great nation. Even at a low carbon price of $20 per ton, the refining sector will have to purchase $63 billion in carbon credits every year. In addition to placing an unmanageable financial strain on American businesses, consumers will feel much of this burden in the form of higher fuel costs. We all deserve a broad menu of safe, reliable and low-cost fuels. Today’s vehicles operate primarily on traditional gasoline and diesel. Emerging technologies will be part of the fuel mix, but are still years, if not decades, away from commercial viability and affordability. This legislation attempts to raise oil product prices so that other less economic energy sources look better by comparison. Is this really fair to the American consumer or to our industry? As diesel fuel prices increase, what happens to the trucking and railroad industries and those jobs? In the end – what happens to our competitiveness for any goods we produce? …
“Plainly said, this legislation tosses away our nation’s competitive advantage, further damages our economy, destroys jobs and threatens our national security.”
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NPRA members include more than 450 companies, including virtually all American refiners and petrochemical manufacturers. Our members supply consumers with a wide variety of products and services used daily in their homes and businesses. These products include gasoline, diesel fuel, home heating oil, jet fuel, lubricants and the chemicals that serve as “building blocks” in making everything from plastics to clothing to medicine to computers.