Cap and Trade = Higher Energy Prices and Lost Jobs
On June 26, the House of Representatives narrowly passed climate change legislation designed by Henry Waxman (D-CA) and Edward Markey (D-MA). This cap-and-trade legislation would ration and tax American energy in the name of fighting global warming causing millions of American jobs and trillions of taxpayer dollars to be lost, and only slightly cooling global temperatures.
This energy tax would gravely affect our economy. American families and businesses would be burdened with direct and indirect energy costs, as energy prices will skyrocket as a result of the bill:
- Gasoline prices will rise 58 percent (or $1.38/gallon)
- Natural gas prices will rise 55 percent
- Heating oil prices will rise 56 percent
- Electricity prices will rise 90 percent
Overall, Waxman-Markey reduces the gross domestic product cumulatively by $9.4 trillion. In other words, the nation will be $9.4 trillion poorer with Waxman-Markey than without it. Job losses will be nearly 2.5 million, and a family of four will pay nearly $3,000 per year in higher energy and product prices (find out how your state will be affected here).
Domestic Exploration = Lower Energy Prices and Jobs Created
The Department of the Interior (DOI) has proposed 31 new offshore areas to drill located around the country, but the Obama Administration has been stalling the implementation of the program. Geologists estimate that in these areas we will find, at minimum, 86 billion barrels of oil and 420 trillion cubic feet of natural gas. That is over 39 times the amount of oil the United States imports from OPEC each year. This increase in supply would result in lower gas prices and home heating costs for you and your family.
- More American Jobs. According to a 2008 Heritage Foundation study, increasing domestic oil production by 1 million barrels per day would generate 128,000 jobs. At 2 million barrels per day, that figure jumps to 270,000.
- Increased State Revenues. Increasing Americas domestic oil production would help states that are struggling to close their annual budget deficit. Developing just a portion of our nations abundant offshore energy resource base would generate millions of new jobs and billions in additional tax revenue and royalties.
- Increased Energy Access. America imports more than 10 million barrels of oil per day, despite holding vast, untapped reserves. No other country in the developed world with access to an outer continental shelf has even considered locking its abundant resources away, and Americans should make full use of the resources available to it.
To read The Heritage Foundations full analysis, click here. You can also make a difference in this debate by sending a note to the Department of Interior asking them to move forward with domestic energy exploration at http://www.freeourenergy.com.