Federal Government Still Spending Billions To Subsidize Fossil Fuels

OIL BARREL

WASHINGTON – Over the past five years, the Obama administration has repeatedly called for cutting fossil fuel subsidies in the form of tax breaks and other incentives. But the amount of money the federal government forfeits through subsidies has increased steadily over that time period, reaching $18.5 billion last year, according to a new report from the environmental group Oil Change International.

That total is up from $12.7 billion in 2009, largely because oil and gas productionhas increased in the United States. Next year, domestic oil production is expected to reach the highest level since 1972. The Obama administration regularly touts its“all of the above” energy strategy, which includes increased oil and gas production.

The Oil Change report includes a variety of subsidies in its accounting, includingtax breaks, incentives for production on federal lands (such as royalty fees that haven’t been adjusted in 25 years) and tax deductions for clean-up costs. And if state subsidies for oil, gas and coal production are also included, the total value climbs to $21.6 billion for 2013. Here’s how that breaks down:

subsidies

In September 2009, Obama and other G20 leaders pledged to phase out fossil fuel subsidies to help curb global warming. Obama also called for eliminating subsidies in 2012 and 2013. And the administration’s 2015 budget proposal again calls for amajor cut to fossil fuel subsidies.

But Congress so far hasn’t acted to cut the subsidies. The report argues that as long as those incentives remain in place, the federal government is “essentially rewarding companies for accelerating climate change.”

“We’re spending more taxpayer dollars every year to fund fossil fuels that we can’t afford to burn, according to climate science,” said Steve Kretzmann, executive director of Oil Change International. “Subsidizing fossil fuels at this point is climate denial.”

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About steve@bayintegratedmarketing.com

Steve Ulrich is a principal at Bay Integrated Marketing: www.bayintegratedmarketing.com. I have been working with people to maximize their use of social media and internet publishing, optimize their websites to turn prospects into customers, and establish their personal brand on the internet. We are also working with Eco Distribution, Inc. to find and implement practical solutions to help clean up our air and the environment. Eco Distribution, Inc. is a California based Distributor and Representative Firm dealing in environmentally friendly and Green solutions. We have leveraged 30 years experience in responsible construction management to provide solutions for some of the most impactful challenges facing our air, water, and land. We have an oil/hydrocarbon remediation system that is effective on everything from simple oil stains on a driveway, to complex oil disasters in the ocean. My approach to social media and internet marketing is simple. Instead of spending a fortune “buying” keywords and ads that don’t return anything we concentrate on three areas: I CAN GET YOU FOUND ON LINKEDIN - NUMBER ONE, PAGE ONE.
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