Testimony to Senate Utilities Committee on SR 1805

Kansas Independent Oil & Gas Association

 

 

 

 

            Good afternoon Chairman Apple and members of the committee. I am Edward Cross, President of the Kansas Independent Oil & Gas Association (KIOGA). KIOGA represents the interests of independent oil and gas producers in Kansas. With over 1,400 members from across the entire state, KIOGA is the lead state and national advocate for Kansas independent oil and gas producers. Our members account for 86% of the oil and 63% of the natural gas produced in Kansas. I am responsible for public policy advocacy and interaction with external stakeholders including elected officials, regulators, governmental decision-makers, and community thought leaders. I am here this afternoon to express our support for Senate Resolution 1805 (SR 1805). 

 

            Climate change concerns have elected officials around the world looking for a method to reduce greenhouse gases (GHG), primarily carbon dioxide created by the burning of fossil fuels. Some believe GHG, and carbon dioxide in particular, are contributing to climate change and want to create a system to regulate GHG emissions. As this issue is debated, please keep in mind:

 

·        Increased costs to consumers and energy producers will be unavoidable;

·        There will be increased volatility in energy prices;

·        Raising the price of energy during a recession will damage the U.S. and Kansas economy further;

·        Regulatory oversight of any GHG emissions program would be expensive. Big government would get bigger;

·        Claims of increased jobs are misplaced;

·        Loss of free market. Markets would be set by government through allocation of emission allowances;

·        Creates competitive disadvantages for U.S. companies;

·        Economic loss with very little attendant environmental gain would result;

·        And more.

 

The bottom line is this. If the industrialized nations have a carbon tax or other emission control system and that same tax or system is not applied identically in less developed nations, more manufacturing products consumed by the industrialized nations will come from countries without a comparable tax or system. Industrialized nations will appear to have lowered emissions when in reality they will have just exported the emissions along with the manufacturing jobs. We agree that our State and nation should address global climate change and GHG emissions in a manner that promotes American jobs, save American citizens and industries from higher energy prices, and champions the global competitiveness of American industry. As such, KIOGA is supportive of SR 1805. Thank you for your time and consideration.