NPRA '08: US climate bills would impact globe

29 March 2008 20:00  [Source: ICIS news]

By Barbara Ortner

SAN ANTONIO, Texas (ICIS news)--Passage of US climate change legislation would have a worldwide effect, according to the president of the National Petrochemical and Refiners’ Association (NPRA).

“Whatever the US does on climate change will have a global impact, involving the Middle East, Europe and Asia - we can’t do it alone,” said Charles Drevna, as delegates converged on San Antonio for the start of NPRA’s International Petrochemical Conference (IPC).  The meeting runs from Sunday through Tuesday.

“Domestically, we are looking at a tightening of natural gas supply due to potential legislation,” Drevna said.

Chemical companies worry that a federal mandate to force emissions reductions will among other things cause a stampede of power companies away from coal to natural gas as a fuel, putting major additional demand and pricing pressure on that principal feedstock for the US petrochemicals industry.

“Current proposals are all cost and no benefit,” Drevna said.

“On the surface, it appears that the petrochemical business will not be very negatively impacted, but if you look past the surface, it is clear that the cost of natural gas will go way up because utilities will be forced to use natural gas, so there will be less available for petrochemicals.”

“US policy makers don’t want to develop domestic coal reserves, but they want to lock up domestic natural gas reserves,” Drevna said. “These policies can’t continue - we need a real energy policy, not a social bill.”

“Even so, the rest of the world wants our coal - exports are dramatically up, and the price of US coal has rocketed. Domestic producers are doing very well,” Drevna said.

“It’s a confused situation: we’re exporting valuable energy sources, but on gasoline supply we’re being told to reduce our [import] supplies and replace them with biofuels.”

ICIS Copyright © Reed Business Information 2009

Author: Barbara Ortner
+44 20 8652 3214

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