Graham's energy compromise recognizes imminent EPA threat

Graham's energy compromise recognizes imminent EPA threat

It is decision time. Energy demand is rapidly increasing, and we have an urgent need for CO2 solutions.

Sen. Lindsey Graham recognizes there are two clear paths for America as it addresses the climate crisis: Let the government regulate greenhouse gas emissions by command-and-control fiat, or let the private sector reduce emissions by unleashing entrepreneurial innovation.

Sen. Graham clearly understands the grim consequences should the EPA take control using the authority of the Clean Air Act. But, Congress can pass a well-crafted, market-based energy and environment bill to reduce greenhouse gases and benefit South Carolina businesses. Those businesses will then create jobs.

EPA regulation under the Clean Air Act could have devastating consequences for businesses across our nation. It will cost jobs that South Carolina workers can't afford to lose. We could face similar consequences in my home state of Texas. I believe regulation under the Clean Air Act will delay important projects of all kinds around the country and might stall an economic recovery.

Sen. Graham is trying to change the debate in Washington in an effort to avert this disaster. The right energy and climate legislation can create jobs while setting America on a path to a cleaner environment. It's ironic that a misguided EPA effort to reduce greenhouse gas emissions could discourage the very technologies we need to reduce those emissions while strengthening our economy.

America will need oil and gas for decades to come. A smart energy and climate policy can include environmentally responsible production of oil and gas on the Outer Continental Shelf while also encouraging clean energies like nuclear, solar, and wind. A misguided climate policy will seek to punish the production and use of fossil fuel to raise energy prices for businesses and consumers.

The government estimates our nation has a 100-115 year supply of natural gas at current consumption levels. The greatly reduced CO2 footprint of natural gas makes it a vital energy source for power generation now and for transportation on the road ahead. And, if we look offshore to U.S. waters, the government estimates more than 86 billion barrels of oil are yet to be tapped.

The U.S. oil and gas industry has developed a remarkable track record for the safe and clean production of oil and gas in recent years, as proven by the arrival of Hurricanes Katrina and Rita. Despite damage to several offshore platforms, modern technology prevented significant oil and gas spills. Science and technology have brought our industry to a place of accomplishment that was unimaginable even a few years ago.

Those who oppose the notion of a common sense energy and climate policy don't understand that regulation by the EPA will prompt delays and lawsuits that will take years to resolve.

Meanwhile, as federal and state agencies wait on the courts to tell them what's what, those agencies will likely be reluctant to issue permits. Such permit delays will delay projects and the new jobs they would have created. Existing projects with greenhouse gas emissions may be forced to spend tens and hundreds of millions of dollars to comply with the new regulations. Well-crafted legislation, which allows for phased-in progress, will allow businesses to absorb changes in an orderly manner.

Twenty years ago, a bipartisan effort in Congress led to the overwhelming passage of the acid rain program promoted by a Republican president, George H.W. Bush. I hope Sen. Graham can help forge a similar bipartisan initiative again. South Carolina businesses and South Carolina jobs are at stake.

Marvin Odum is president of Shell Oil Company.