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Oil and Gas Subsidies

So, on another forum, someone threw out the tired "Oil and Gas subsidies" red herring again. I asked them to give me a link to somethig showing them.

She gave me Earth Track | Earth Track is your primary source for understanding and monitoring environmentally-harmful subsidies.

Here is my response

Quote:
Picking the first article, it had no list of subsidies.

August Oil Subsidy Roundup | Earth Track

Picking another link inside that article lead to this link

http://greenscissors.com/wp-content/uploads/2011/08/Green_Scissors_2011.pdf

Reading through this, it takes getting to page 9 before a list of subsidies.

The largest is LIFO accounting at $29B over 5 years. Of course, reading the foot notes it shows that the $29B is for ALL INDUSTRIES not just fossil fuel. So the article exaggerating the subsidies.

#2 is similar, except again it is a general accounting rule that applies even to solar industries

#3 is a cost of doing business and is deductible

#4 is nothing more than inventory reduction allowance the same as all industries are allowed.

Removing the top 4 reduces the articles $61B over 5 years down by $48B. This leaves $13B of which I can already see that over 1/2 is again standard aacounting rules which apply to all industries.

The only one that seems to fit is "Oil Royalty Relief" at $4B over 5 years.

Here is a description: Deep Water Royalty Relief Act - Wikipedia, the free encyclopedia

At $800M per year. I certainly agree we can afford to get rid of this.
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Old 09-21-2011, 08:21 AM
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