Informative column in Forbes by Paul Cicio, president of the Industrial Energy Consumers of America, explaining how Lieberman-Warner would dramatically increase demand for electricity produced by natural gas, pushing up the cost of natural gas and smacking the U.S. manufacturing sector. From “A Natural-Gas High“:
Most U.S. manufacturers compete on a global basis, and will thus be acutely affected by further increases in natural gas prices. Natural gas prices are about 50% higher than a year ago. These elevated prices have already contributed to the loss of 3.3 million manufacturing jobs; that’s 19.2% of all manufacturing jobs since 2000. . . .
In the end, the Warner-Lieberman bill could mark the final demise of the energy-intensive manufacturing industries that rely upon globally competitive energy to survive. . . .
Because the emission-reduction timetable of the bill does not coincide with alternative low-carbon options for the power sector, natural gas and electricity prices will rise substantially above government forecasts and emission-reduction targets may be achieved at the expense of manufacturers who will send their jobs offshore — along with their carbon emissions — to be another country’s problem.
And here’s a news release from the IECA, “EIA Cost Estimate of Senate Climate Bill Under-States Natural Gas Costs by Over $1.3 Trillion Dollars.”
(Hat tip: Chris Horner)
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