Study: Proposed Colorado Energy Regs Will Hammer Consumers And U.S. Economy
Consumers would pay up to $32 billion more for natural gas; production slowdown would harm national energy security
Lakewood, CO - A new study by respected think-tank ICF International says U.S. consumers would pay up to $32 billion more for natural gas nationwide over the next 10 years as a result of Colorado Gov. Bill Ritter's proposal to curtail oil and natural gas drilling in the state.
The study shows that rules pending before a state regulatory agency would cause a production slowdown due to longer lead times to gain state permits, months-long limitations on when drilling could occur, and an increase in the cost of drilling new wells.
ICF's report shows that “a stunning new state regulatory proposal of truly national significance that will hurt our nation's economy and weaken our national security,” says Americans for American Energy, a Colorado-based non-profit organization.
“This is a frightening proposal that is going to hammer the U.S. economy,” said Greg Schnacke, President and CEO of AAE. “Why would Bill Ritter propose producing less oil and gas at a time when America needs all the energy it can get? A $32 billion hit to our economy as we teeter on the verge of recession makes absolutely no sense.”
The ICF study concludes that Ritter's proposed oil and gas development regulations will lead to a significant production slowdown under any one of three scenarios that looked at reduced gas well completion activity of 10, 20 and 30 percent.
With a 30 percent reduction, ICF calculates U.S. consumers would pay $32 billion more over 10 years for natural gas than they do currently. ICF notes that all natural gas consumers would be affected, with the hardest-hit states Colorado, California, Texas, Illinois, Florida and New York.
“This proposal makes America weaker, our enemies stronger and Americans have to pay plenty for it,” said Schnacke. “The new regulations harm our national interest and jeopardize our economy. The governor has stated publicly that energy security is important for our national security. This type of action shows that he must not really believe that.”
“The environmental extremists are applauding this study,” Schnacke said. “It shows the proposed regulations are going to do what they want — slow down American oil and gas production. What the study doesn't show is how much more imported oil and natural gas we will have to add. Many of these exporting countries hate America and are all too happy to bleed us by selling us high-priced energy.”
AAE reiterated its call on Congress to lift bans on oil and gas production in Alaska, the Outer Continental Shelf, and in areas of the Rocky Mountains that are off limits today.
“We must have more domestic energy production to keep prices in check and foster energy independence,” Schnacke said. “It's obvious what high energy prices are doing to our economy. And this study shows that Ritter's rules will do even more harm.”
SOURCE: Americans for American Energy