Natural-gas producers, meanwhile, had hoped that a cap on carbon emissions would lead power companies to shift toward gas-fired generation and away from coal. But natural-gas producers are disappointed by the Waxman-Markey bill, which they argue skews the cap-and-trade system by giving away carbon-emission allowances to coal-fired power generators.
"We want all fuels to be treated equally, adjusted to their carbon content," said Jim Hackett, chief executive officer of oil-and-gas producer Anadarko Petroleum Corp.
The industry worries the lack of an immediate incentive to shift to gas will give new technologies time to emerge as competitors.