Aug. 28--A news story in The Wall Street Journal this week made it clear that the rest of oil and gas country has caught up to Oklahoma, in the way of falling revenue. On the same page, another story detailed how congressional involvement only figures to exacerbate that trend.

That involvement comes in the form of proposed legislation that seeks to reduce global warming. The cap-and-trade bill by Democratic U.S. Reps. Henry Waxman of California and Ed Markey of Massachusetts, which passed narrowly in the House earlier this summer, would significantly reduce fuel production, according to a report commissioned by the American Petroleum Institute.

The study projects that by 2030, refining production in this country could fall by 17 percent from current levels if Waxman-Markey is passed as now proposed. That drop in production would in turn have to be made up via foreign imports and could result in the United States getting close to 20 percent of its refined fuel from other countries. The Journal said the API report is expected to be released Monday.

The report estimates that without the Waxman-Markey restrictions, which are designed to cut down on greenhouse gas emissions, production rates in the United States would grow to an average of 16.4 million barrels a day in 2030. Currently about 14.5 million barrels per day are produced domestically. If the restrictions become law, production could dip to 12 million barrels a day, API says.

Meantime, the Journal noted that falling natural gas prices, which have left a big hole in Oklahoma's budget for the current fiscal year, are taking a toll on other energy states, too. Revenue from gas-production taxes is down 43 percent in Texas -- or about $1 billion. New Mexico is wrestling with a budget deficit approaching $500 million. Louisiana and Wyoming are expecting tougher times due to natural gas selling at a price much lower than anticipated when state budgets were written.

The Journal points out that oil priced at about $70 per barrel -- up significantly from last year -- is some help, but not enough to offset the low natural gas prices. Oklahoma certainly knows that. "There's not a lot you can do as a government other than manage the downtown," state Treasurer Scott Meacham told the newspaper.

There is something Congress can do -- reject legislation that only figures to hamstring the nation's traditional energy industries. Waxman-Markey would be a good place to start.

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