Oil refiner says CO2 bill to cost it $7 billion a year

Reuters.com
Fri Aug 28, 2009 3:34pm EDT

By Timothy Gardner and Janet McGurty
NEW YORK (Reuters) - The U.S. climate bill would cost Valero, the country's largest oil refiner, more annually than it has ever made in a year, forcing it to warn consumers at filling stations that fuel prices will rise, the company's top government affairs official said.

"How would we be able to operate?" Jim Greenwood, a vice president for governmental affairs at San Antonio based-Valero Energy Corp, said about the legislation the House of Representatives narrowly passed in June. "I don't know."

He said the bill, which would require refiners to hold or purchase permits for the amount of carbon dioxide their plants and fuels produce, would cost Valero some $6 billion to $7 billion per year.

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