Summary
Foreign refiners will get a significant advantage if current proposals for carbon legislation do not change.
Analysis
WSJ.com's Liam Denning noted on 10/29/2009, that " Wood MacKenzie (energy consultant) points out that less onerous carbon constraints faced by European refiners could mean imports would undercut U.S. refiners passing on carbon costs at the pump. Refiners would struggle to simply absorb the costs." Valero CEO Bill Klesse has estimated their bill at $6 billion per year. Refiners have, in the past, lobbied effectively against onerous requirements. Trade groups such as the National Petrochemical and Refiners Association (NPRA) and American Petroleum Institute (API) must speak out against legislation which impairs the domestic refining industry. The refining industry does not have the political clout of industry groups that have more workers. It is strange that more is not being said about what appears to be a significant event for this beleaguered industry.
