U.S. Refining May Drop by a Quarter on Climate Bill, API Says

(Bloomberg) — U.S. refining production may drop by a quarter by 2030, making the nation more dependent on fuel imports, if the climate-change legislation approved by the House becomes law, the American Petroleum Institute said.

The Washington-based group, whose members include Exxon Mobil Corp. and ConocoPhillips, released a study today it commissioned on the legislation approved in June by the House. The Senate has yet to vote on the measure, which would cut greenhouse gas emissions 80 percent from 2005 levels by 2050.

The API said costs associated with the program will discourage refiners from running plants at full capacity. The report concludes that U.S. refining production may drop by 4.4 million barrels a day, or 25 percent, and investment in refining may fall by as much as $90 billion, or 88 percent, by 2030.