Is this for real?? It would appear that gasoline is not getting much in the way of subsidies??

Question

http://www.eia.doe.gov/oiaf/servicerpt/subsidy2/pdf/subsidy08.pdf

"....But what about subsidies to the oil industry? A recent paper from the Energy Information Agency compares federal subsidies to all forms of energy. According to table 36 of this report (on physical page 128, numbered page 108), subsidies to oil and natural gas amount to 3 cents per million BTUs.

That’s just about the smallest of any energy source: coal is 4 cents per million BTUs, solar is $2.82, biofuels are $5.72, and “other renewables” are 14 cents. Only geothermal, at 2 cents per million, is less than oil & gas.

There are 125,000 BTUs per gallon of gasoline, so subsidies amount to 0.375 cents per gallon. If you get 22 miles per gallon and your car carries an average of 1.6 people, that’s about 0.01 cents per passenger mile. By comparison, if you burn ethanol (which only has about two-thirds as many BTUs per gallon as gasoline), you not only pay more for the fuel, you are being subsidized at the rate of 1.235 cents per passenger mile — i.e., more than 120 times as much as gasoline.”

Answer 1

The Iraq war, which has potentially cost trillions of dollars, is an oil subsidy. If it were not for the US's dependence on foreign oil, interventionism in the Middle East would not be required.

The construction and maintenance of roads & highways is a subsidy for fossil-fuel based transportation. This mode of transport has been emphasized for the last 60 years over rail and other forms of public transportation.

There is no or little cost associated with the creation of pollution. This is known in economics as an "externality". Air pollution, the health costs associated with it, and global  warming are all prices everyone pays, as a result of people burning fossil fuels; so the polluters are shifting those costs onto everyone else. This is also a form of subsidy. Forcing polluters to pay to account for their damage would drive prices up and create an economic incentive to move to clean energy sources.

Answer 2

People worry way too much about how much profit Exxon makes, in fact you all should be happy the more money Exxon makes.  Why?  Who do you think owns Exxon stock?  You do!  Mutual funds, ETFs, and pension funds account for 52 % of Exxon Mobile's stock ownership.  Private investors own most of the rest with company executives owning less than 1 %.  http://www.nytimes.com/2008/03/02/busine...

BP is the worlds largest investor in alternative energy, followed by Chevron.  The subsidies that oil companies receive are not to further boost their profits, it is to develop new technologies, explore for more oil, and R & D.  Without the subsidies, these companies may not spend as much on alternative energy, or even exploration.

The witch hunt against Big Oil is a nothing more than a liberal attack on President Bush and the war in Iraq. Big Oil funds our retirements, advances science, provides jobs to Americans, and will be key players in the development of alternative energy sources.  

Answer 3

actually its the other way around, the oil company's subsidize the government.

for every penny the oil company's make from oil the government makes around 3 cents.

this is not only through direct taxes on gasoline but also through permits,leases & other fees.this is a very significant source of government income.

if gasoline consumption continues to fall the government will have to collect the many billions in lost revenue by increasing taxes on other taxpayers like you & I.

the best estimates of  oil company profits are between 6.8% & 7.5%.

Answer 4

heck, the subsidies to Wall exceed that of oil companies.  Apple get more per unit than anything else.

What people don't understand is those subsidies to oil and gas fund research for cleaner burning fuels.  For improving safety of the use of oil and gas, its not used to line the pockets of some executive.  The head of the United Way pockets more money than the average executive of all oil and gas companies.

People who blame oil companies are insecure and look to blame anyone other than themselves.  They tend to be selfish and self righteous and won't admit that without oil, gas, plastics, they would wouldn't be alive.  Their agenda is to lower everyone to their level instead of trying to pull themselves up.

Answer 5

I don't know much about that, but I would prefer that oil companies have no subsidies or extra taxes. They should be taxed just like Microsoft or Walmart or Merck or any other company.