US government efforts to curb climate change could soon spur an oil crisis more severe than those already experienced, the head of oil and gas giant ConocoPhillips said on Tuesday.
“We’re very concerned that if we don’t keep the supply up we’re going to see another crisis,” said chief executive officer Jim Mulva.
Government intervention in the energy market “has an impact” on the willingness of companies to pour billions into the development of new projects, Mulva told an economic summit in Detroit.
“If we’re not investing in replacing our resources in fossil fuels then we’re going to create a bigger challenge soon: Higher price spikes and volatility in the cost of our energy than what we’ve experienced even in the past,” he said.
“That’s not going to be helpful to the recovery of our economy,” he said.
The comments come as US President Barack Obama is making a major push to expand the use of alternative energy sources, launch a cap-and-trade system for carbon emissions and promote the development of “green jobs” to boost the nation’s flagging economy.
Mulva acknowledged that climate change was a “serious problem,” but said attempts to limit the use of fossil fuels through taxes and restrictive regulations will simply raise the cost for the consumer and harm the economy.
Demand for energy is expected to grow significantly in the coming decades as a result of economic development and a growing global population and there is no way it can be met without the use of oil and gas, he said.
“Washington’s apparent belief that we can choose between renewable energy and fossil fuels is mistaken,” he said.
“We’re not against alternatives and renewables. But to say we want to get off fossil fuels to [replace them with] an alternative is unrealistic,” he said.
The head of US Airways warned that the nation’s fragile airline industry could collapse if it is forced to pay some kind of carbon tax on jet fuel because the current supply and demand situation makes it impossible to pass the cost on to consumers.
Chief executive officer Douglas Parker said the government needs to focus on industry-specific ways to improve energy efficiency and reduce environmental impacts.
“From a user’s perspective, there is no legislation that can be passed that can make our industry more motivated to reduce our use of jet fuel,” Parker said.
Jet fuel costs have more than tripled since 2000 and, at US$58 billion last year, are the industry’s largest cost.
A top White House adviser said that Obama does not believe the country has to chose between protecting the environment and protecting the economy.
“You have a president who has a different kind of environmentalism,” said Van Jones, the White House special advisor for green jobs, enterprise and innovation.
“President Obama’s environmental vision is about saving people money [and] helping people earn money,” he said.
“Everything that is good for the environment, everything that is good in the fight against global warming, it’s a job, it’s a contract, it’s an entrepreneurial opportunity,” he said.
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