We all have a role to play in addressing the risk of global climate change, and that includes America’s oil and natural gas companies. The industry has invested $175 billion since 1990 toward improving the environmental performance of its products, facilities and operations—$582 for every man, woman and child in the United States.

Global climate policy has to be approached from the proper perspective.

Global climate change is extraordinarily complex and challenging because the main source of greenhouse gas emissions is the energy that heats our homes, powers our factories and offices, and gets Americans to school and work.

It is crucial that our nation have a climate policy framework that not only leads us in the right direction, but enables us to move forward with workable policies and practical, equitable solutions. Policymakers need to analyze carefully the impact of any climate policy on ordinary Americans, especially at this time of economic uncertainty.

To be workable, climate change policy should:

• Be environmentally effective;
• Be transparent and understandable to consumers;
• Identify and prioritize the most cost-efficient ways to reduce emissions;
• Avoid government selection of market “winners” and “losers;”
• Provide access to all domestic energy sources, particularly natural gas, which has the lowest emissions per Btu;
• Keep U.S. energy production competitive in the global marketplace to avoid “outsourcing” business jobs and emissions overseas; and
• Avoid severe damage to the U.S. economy.

The U.S. oil and natural gas industry is spending billions of dollars developing new advanced energy technologies to reduce greenhouse gas emissions. Between 2000 and 2008, the industry invested more than $58 billion in new low and zero emissions technologies. This represents 44 percent of the $133 billion spent by all U.S. industries and the government combined.

We’re working hard to reduce greenhouse gas emissions.

These large investments are critical to provide the low-carbon energy we will need years from now. Oil and natural gas companies are at the forefront of:

• Developing advanced energy technologies and new uses of clean-burning natural gas;
• Researching, developing and marketing energy alternatives, including solar, geothermal, biofuels, fuel cells, hydrogen power and wind energy; and
• Developing “carbon capture and storage” technology, or CCS, to reduce carbon dioxide (CO2) emissions by storing them underground.

In certain cases, injecting these gases for storage can also increase oil recovery. An oil company operates the largest CCS facility in North America but in order for CCS to advance, much more needs to be done. A legal and regulatory framework for long-term CO2 storage is still lacking. The use of CCS would facilitate the continued use of our nation’s vast plentiful coal and frontier hydrocarbon resources in an environmentally-friendly way.