Letter to Gen. Jones comes on heels of China’s $1.7 billion investment in two Alberta oil sands projects, State Department approval of Alberta Clipper
HOUSTON – September 18, 2009 How could the passage of a Low-Carbon Fuel Standard (LCFS) in Washington adversely impact U.S. security, all while costing American workers thousands of high-wage jobs and billions in lost revenue? That’s the question Consumer Energy Alliance (CEA) president David Holt put before President Obama’s national security advisor today, asking Gen. James L. Jones and the National Security Council to take a closer look at the security consequences underlying an LCFS. A copy of the letter can be accessed here.
“Fundamental to the future of America’s security is the extent to which our ability to access secure, affordable North American energy supplies is protected, preserved and responsibly expanded,” said Holt, whose 120-plus member organization advocates the thoughtful use of a broad array of renewable, alternative and conventional energy sources, while also promoting conservation. “A Low-Carbon Fuel Standard represents a direct attack on that future, putting in place new bans on secure, Canadian energy at precisely the time we should be doing everything we can to reinforce those ties, strengthen them, and leverage the availability of secure, affordable energy to create jobs, revenues and opportunity here at home.”
Last month, the State Department granted a key permit to the Alberta Clipper project — upon completion, a pipeline through which 450,000 barrels of secure, Canadian energy is expected to travel its way to the United States each day. The imposition of an LCFS, however, aims to prevent that Canadian energy from crossing the border, forcing Americans to fill that vacuum with energy from foreign, often unstable suppliers.
In full recognition of the LCFS threat, Canada recently opened its doors to a major investment in its oil sands region by the Chinese government, as the state-owned oil giant PetroChina inked a $1.7 billion USD deal to develop two separate projects in Alberta. Previous to this news, it was always assumed that the majority of energy derived from Canada’s oil sands would be made available to the United States. After it, those who viewed the oil sands as a one-buyer market were thoroughly disabused of that notion.
“From the start, LCFS advocates have premised their support on the idea that all you’d need to destroy the Canadian oil sands market is have Congress pass an LCFS, and thus ban that energy from crossing the U.S. border,” added Holt. “China’s investment in the region should put an end to all that talk. They want this energy, are prepared to come take it, and in the process of using it, will emit significantly more carbon dioxide than if that energy was sent to its original destination. The upshot? American security is weakened, our economy takes a serious hit, and a major world competitor gains access to a secure, affordable resource right in our front yard.”
NOTE: Click HERE to view full text of the letter, which was sent to Gen. James L. Jones and Secretary of State Hillary Clinton. Click HERE to view the Reuters piece filed on this issue. And visit SecureOurFuels.org to view our latest television and radio ads, and learn more about how an LCFS will increase energy costs for American consumers and expand our dependence on foreign, unstable regions of the world to fuel our economy.