Oil and Gas Subsidies Oct 25, 2020 14:06:37 GMT 14
Post by cajunsrock on Oct 25, 2020 14:06:37 GMT 14
Just a quick clarification on oil and gas "subsidies". They are NOT direct payments to industry producers. They are actually tax deductions for investments made and assets depreciating over time. No investment, no deduction or "subsidy". Eliminate them and major companies simply move more of their budgets overseas. Smaller companies have a harder time justifying projects and fewer are executed. Both result in fewer American jobs. Some will say renewable energy will replace the lost production and their will be jobs for people in that sector. Truth is we are decades away from those being economically competitive with oil and gas on a sufficient scale to be significant. Also, the technology used in exploring, producing, transporting, refining, and marketing oil and gas dwarfs that of either the wind or solar industries. Those industries do get favorable tax treatment by the way. In fact some of them fare better than oil and gas as they get tax credits which is mush more beneficial than tax deductions received by the oil and gas industry. I am not against those as the world will need all forms of energy to power it's needs for years to come. Still, with less production of oil and gas, alternatives cannot make up the difference and overall energy supply goes down. That inevitably drives the price up. That is the dirty little secret climate alarmists don't want you to know. YOU will have to pay significantly more in energy costs with less oil and gas production on the market. Some may feel that is worth the cost due to their climate concern and that is an opinion which I won't debate here. However removing oil and gas from industry is impossible even if transportation and power is generally fueled by renewables. Reason for that is there are hundreds of products (besides plastic) that use oil when manufactured. A final word about fracking. The US emissions level has dropped off in recent years. Reason for that is natural gas is replacing coal as an electrical power source in many instances. Much of that gas came on the market due to fracking. An Obama energy administration official admitted that near the end of their term. As you can see, this is a complex topic which does not lend itself to simple political sound bites of either party. Sorry, this was not a "quick" clarification after all. However, after almost 40 years in the energy industry where I worked with people ranging from practical blue collar folks to top executives, I tend to go into detail at times. Hope I was able to help some get a better understanding of the subsidy situation and the overall energy situation of the nation.