Testimony Against Divestment at CU Regent Board Meeting

April 16, 2015 by michael
Filed under: Legal, Legislation, preferred energy 

Delivered April 16:

·         Thank you for the opportunity to speak today on the issue of fossil fuel divestment. My name is Michael Sandoval. I am a proud graduate of CU Boulder and CU Denver. I graduated with degrees in history and marketing. I am here today speaking as both a proud alumnus as well as for the Independence Institute, a free market think tank based in Denver.

·         First, let me emphasize that Colorado is a proud energy producing state. In fact, many of our friends, family and neighbors have jobs in this industry. Many of the men and women in these fields earned their degree from this institution. To stigmatize and demonize energy workers is both shameful and downright ignorant. I think Lisa Hamil’s op-ed in the Boulder Daily Camera earlier this year says it best, “Banning investment in fossil fuel companies makes no more sense than banning entire fields of study like geology and petroleum engineering, or classes like the Global Energy Management Program’s Lifecycle of Oil and Natural Gas Certificate Course that I teach at CU Denver Business School. But that’s where the divestment argument leads: If it’s bad to invest in energy companies that produce fossil fuels, then it must be even worse to educate the professionals who would run those companies.”

·         A July 2013 study from the University of Colorado’s Leeds School of Business found more than 110,000 jobs in our state are supported by the oil and gas industry. Likewise, the industry spurs almost $30 billion in economic activity and generates $1.6 billion in state and local tax revenues. In other words, oil and gas is one of Colorado’s foundational industries – just as important as agriculture and tourism. To suddenly wipe out the oil and gas industry would cause tremendous harm to every Colorado family, not just the tens of thousands of Colorado families whose livelihoods depend on this vital economic sector.

·         Given the importance to Colorado’s economy, let me next point out that the anti-fossil fuel campaign is really a national campaign run by far-left environmental activists. Well-funded national organizations like 350.org that have no real interest in our state are the ones pouring millions of dollars into this campaign. They oppose all fossil fuels. They are currently running campaigns against the Keystone XL pipeline and attempting to ban natural gas production here in Colorado and across the country. Just this week, members of 350.org were protesting outside of Hillary Clinton’s campaign office saying that she was too moderate for them. To be blunt, this is a national campaign using college students to shut down one of Colorado’s leading job creators. These groups are simply too extreme for Colorado.

·         Let me also note that the divestment campaign would be all economic pain for no climate gain. As Dr. Daniel Fischel from the University of Chicago School of Law found in a study he conducted, wrote in the Wall Street Journal, “Every bit of economic and quantitative evidence available to us today shows that the only entities punished under a fossil-fuel divestment regime are the schools actually doing the divesting—with virtually no discernible impact on the targeted companies. Students and universities may nevertheless wish to make a symbolic or political statement, but they should know it will come at a high price. Talk is cheap, but divestiture is not.”

·         Numerous professors from across the country agree. A letter signed by leading professors from the University of California Berkeley, UCLA, Yale and Duke wrote, “In our view, continued engagement with the energy sector on these critical issues represents a far better and more practical approach than a policy of exclusion and isolation. Plainly put, the challenge of combating climate change is too great, and the costs associated with divestment are too considerable, for us to pursue these worthwhile objectives in any other way.” I should note that this letter was also signed by professors from CU.

·         Vincent Carroll of the Denver Post agrees, writing earlier this year that “Any institution facing a decision on divestment should welcome students and faculty urging divestment, and then respond with a forceful “no.” Carroll explains, “Every governmental projection of the world’s energy portfolio in the coming decades foresees still massive reliance on fossil fuels, however seriously we invest in alternatives. As the climate scientist James Hansen said a few years ago, “suggesting that renewables will let us phase rapidly off fossil fuels in the United States, China, India, or the world as a whole is almost the equivalent of believing in the Easter Bunny and Tooth Fairy.”

·         Let me end by saying that I appreciate the students who are here today making their voices heard. As a CU alum who was politically active myself when I was on campus I know particularly well the power of student voices. It is noteworthy that the couple of dozen activists speaking in favor divestment pales in comparison to previous efforts on this campus. But I am pleased that there has been a good, constructive dialogue.

·         As an alumnus of CU, I urge the CU Board of Regents to reject the politically motivated divestment campaign and stand with the thousands of hard working CU grads who work all over the world to ensure we have access to abundant, affordable, and reliable energy resources.

Following testimony, CU Regents voted 7-2 to continue current investment strategies and reject #divestment:

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