Oil Industry Still Begging for Subsidies

gusher33.jpgThe Bush budget cuts about $50 Million in funding for drilling R&D this year (see CNN). Not so surprisingly, the oil industry is raising a stink about it despite the fact that, even the White House agrees, “Industry has the incentives and resources to do such R&D on its own”.
To me, this is proof of the ironies that the oil industry lives by. Despite purporting to promote free market economics at every turn, and despite (in the case of Exxon) openly mocking alternative energy because of its temporary reliance on government subsidies, the oil industry is crying for subsidies themselves – despite being richer than they’ve ever been.
Forgive the editorial rant, but I’m optimistic that some actual funding of alternative energy will happen as a result of recent changes in White House policy. I’m not sure exactly how much that will amount to, but anything’s a start.

Nick Aster is a new media architect and the founder of TriplePundit.com

TriplePundit.com has since grown to become one of the web's leading sources of news and ideas on how business can be used to make the world a better place.

Prior to TriplePundit Nick worked for Mother Jones magazine, successfully re-launching the magazine's online presence. He worked for TreeHugger.com, managing the technical side of the publication for 3 years and has also been an active consultant for individuals and companies entering the world of micro-publishing. He earned his stripes working for Gawker Media and Moreover Technologies in the early days of blogging.

Nick holds an MBA in sustainable management from the Presidio School of Management and graduated with a BA in History from Washington University in St. Louis.

4 responses

  1. 1. CNN is a poor substitute for objective news.
    2. A single lobbyist does not account for the ‘sensational’ headline to this story.
    3. Is this proof that it does not matter what the administration does – if it increases incentives for exploration, it’s bad; if it cuts incentives for exploration, it’s bad.
    4. Not exploring the 2,000 acres of Alaska for an additional North American source of crude oil while our society develops alternatives is criminal. The citizens of Alaska want to do it. The baboons in Washington wouldn’t know a how to do it, so they pander to their misguided lobbyists.
    Isn’t it fun being a critc?

  2. Yeah, it is. I think you’re wrong about Alaska, but more importantly, the point of the article was to poke fun at oil companies (in particular Exxon) for continuing to expect taxpayers to fund exploration/research when 1) they have more than enough money to do it themselves 2) fossil fuels are clearly on the way out 3) it clearly benefits you, me, and the economy vastly more to invest government funds in renewables research and 4) they insist on pretending to be upstanding republicans (most of them) while asking for welfare-type handouts.. it’s just ironic and kinda hilarious if you ask me!

  3. I think that the govenment should take all the tax breaks from the oil companys. The money then could be used for development of Hydropower.

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