Oil Industry Still Begging for Subsidies

By | February 7th, 2006 4 Comments

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.

4 Comments

Categorized: Policy & Government|

  • Rick

    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?

  • Tabler

    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!

  • Anonymous

    Oil companies are subsidy junkies. Why? Because they can.

  • oscar

    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.