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Old 07-26-2013, 12:30 PM   #42
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Join Date: Apr 2001
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Prima Materia

Originally Posted by BroncoBeavis View Post
Not sure where you keep coming up with the subsidy angle. As I just finished pointing out. There really is no federal subsidy for big oil. The government buying oil for its own strategic purposes is not a subsidy to oil companies. The government waiving (transportation) taxes on farmers (for uses unrelated to publicly-funded transportation) is not a subsidy to oil companies. The government subsidizing energy costs for poor people is not a subsidy to big oil.

Where are you getting all these subsidies?
So the oil companies are lobbying for what? Raisins? Toilet Paper? Cookies?

A 2009 study by the Environmental Law Institute[7] assessed the size and structure of U.S. energy subsidies over the 20022008 period. The study estimated that subsidies to fossil-fuel based sources amounted to approximately $72 billion over this period and subsidies to renewable fuel sources totaled $29 billion. The study did not assess subsidies supporting nuclear energy.
The three largest fossil fuel subsidies were:
Foreign tax credit ($15.3 billion)
Credit for production of non-conventional fuels ($14.1 billion)
Oil and Gas exploration and development expensing ($7.1 billion)
The three largest renewable fuel subsidies were:
Alcohol Credit for Fuel Excise Tax ($11.6 billion)
Renewable Electricity Production Credit ($5.2 billion)
Corn-Based Ethanol ($5.0 billion)
In the United States, the federal government has paid US$74 billion for energy subsidies to support R&D for nuclear power ($50 billion) and fossil fuels ($24 billion) from 1973 to 2003. During this same timeframe, renewable energy technologies and energy efficiency received a total of US$26 billion. It has been suggested that a subsidy shift would help to level the playing field and support growing energy sectors, namely solar power, wind power, and biofuels.[8] However, many of the "subsidies" available to the oil and gas industries are general business opportunity credits, available to all US businesses (particularly, the foreign tax credit mentioned above). The value of industry-specific subsidies in 2006 was estimated by the Texas State Comptroller to be just $3.06 billion - a fraction of the amount claimed by the Environmental Law Institute.[9] The balance of federal subsides, which the comptroller valued at $7.4 billion, came from shared credits and deductions, and oil defense (spending on the SPR, energy infrastructure security, etc.).
Fossil-fuel consumption subsidies were $409 billion in 2010, oil products ca half of it. Renewable-energy subsidies were $66 billion in 2010 and will reach according to IEA $250 billion by 2035. Renewable energy is subsidized in order to compete in the market, increase their volume and develop the technology so that the subsidies become unnecessary with the development. Eliminating fossil-fuel subsidies could bring economic and environmental benefits. Phasing out fossil-fuel subsidies by 2020 would cut primary energy demand 5%. Since the start of 2010, at least 15 countries have taken steps to phase out fossil-fuel subsidies. According to IEA onshore wind may become competitive around 2020 in the European Union.[19]
Maybe do a little more research into a topic other than finding one article that supports your incorrect view point.

If you want to dig in further:
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