Fossil Fuel Subsidies

Opponents of the renewable energy industry often point to subsidies received by them, while ignoring the long-standing subsidies givens to the O&G industry. Many O&G subsidies have been around since the beginning of oil exploration in the 1920’s, while renewable energy subsidies have only existed for a few decades. The article below points out that a study shows that the O&G industry receives subsidies that are generous enough to ensure that almost half of new investments in untapped domestic oil projects would be profitable, creating incentives to keep pumping fossil fuels despite climate concerns, according to a new study.

The study, in Nature Energy, examined the impact of federal and state subsidies at recent oil prices that hover around $50 a barrel and estimated that the support could increase domestic oil production by a total of 17 billion barrels “over the next few decades.” The study itself can be found here.

 

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