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  • Published: Aug 31st, 2009
  • Category: USA
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Murphy Oil Chair Critical Of Bill To Limit Carbon Output

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The legislation is supposed to clean up our air, but oil giant Murphy Oil says it won’t make a dent.
Murphy Oil talked to Arkansans about why it is against the American Clean Energy and Security Act today.

Murphy Oil says the proposed law, based on the cap and trade concept, would cause higher energy prices. The company says that would result in an even a slower economy.

Commercials by the National Association of Manufacturers want you to beware of the cap and trade climate bill. Also, against it, is Murphy Oil Chairman and former CEO Claiborne Deming.

“The way the current bill is, we will disrupt our economy and put people out of work,” says Deming.

Proposed by President Obama, the cap and trade legislation forces companies to cap carbon dioxide emissions. Each company is granted a certain amount of emission credits. Companies that exceed their allowance can buy or “trade” credits from other companies.

Opponents say the cost of retrofitting these facilities, like with filters would be passed down to consumers.

“The average Arkansan will see gasoline prices go up and over time see the utility bills go up,”

The Congressional Budget Office estimates it will cost the average household $175 more a year. The bill aims at reducing CO2 emissions 83 percent by 2050, which according to Deming is not a huge impact in the whole scheme of things.

“Now, China emits more CO2 than America and it is going straight up and India same way,” says Deming.

Repower America State Director Brendan Beattie thinks the bill would actually create 18 thousand green jobs in the state.

“These are pipe fitters, steam fitters, most are in the energy-efficiency business. These are your regular contractor folks, your construction guys,” says Beattie.

The bill provides incentives to fund wind, solar, and biomass industries. Deming would rather see more emphasis on nuclear power. Beattie says large or small oil companies should be able to adapt to technologies.

“Americans are being called on by leaders in the world and it’s time to take that leadership role,” says Beattie.

Arkansas’ largest utility company, Entergy, supports this legislation.
Here is their statement:

Entergy supports a cap-and-trade approach with 100 percent auctioning of the allowances, and with a ceiling price for allowances set by Congress through 2020. A ceiling price provides some certainty about the impact on the economy. In addition to setting a national price cap, Entergy has taken the position that the government should auction the allowances credits and recycle the revenues back to the consumer. A cap-and-trade plan would provide both an impetus for utilities to seek cleaner generation technologies and a revenue stream for investment in clean generation research and development. Capping carbon dioxide and putting a price on it will create an incentive for entrepreneurs to develop new technologies and spur the innovation necessary to help the rest of the world reduce their emissions.

The cap and trade concept started in 1990 under the first President Bush to force power plants to reduce sulfur dioxide, which causes acid rain.

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