subsidies

Sat, 2012-03-10 14:42Laurel Whitney
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Big Oil Rakes In Billions, Still Complains Taxes Are Too High

The President rolled out his FY2013 budget recently, which includes eliminating $40 billion in tax breaks from Big Oil companies, such as BP, Chevron, ConocoPhillips, ExxonMobil, and Shell. Meanwhile, the American Petroleum Institute's response would have you believe that cutting the subsidies would be the equivalent of moving back into their parents' basement.

It's propaganda at its most repetitive, crying that they are “job creators” and that it's so “unfair” to raise taxes because they already contribute millions to the economy every day, and if you do they swear to god prices will rise and the inevitable dependency on foreign oil will bring about the apocalypse itself if you don't let them have their way.

That's like Donald Trump begging to not get kicked out of rent-stabilized, low-income housing even when raking in billions annually, and then threatening to trash the place once the landlord actually puts up an eviction notice.

It's true. The combined profit of the “big 5” oil companies listed above was $137 billion last year, with ExxonMobil, Chevron, and ConocoPhillips coming in first, fourth, and 15th, respectively, on the Fortune 100 list of most profitable companies.

Mon, 2011-10-03 17:00Mike Casey
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Mr. Morriss Gets Acquainted With Irish Confetti

Originally posted at ScalingGreen.com.

Merriam-Webster: Irish Confetti - “A rock or brick used as a missile.”

We recently wrote about professional clean energy critic Andrew Morriss being schooled by Center for American Progress’s Kate Gordon before a friendly crowd at the fossil industry-funded CATO Institute. Back in April, Mr. Morriss couldn’t answer Ms. Gordon’s inconvenient points about the huge government welfare checks received by the dirty energy industries that fund him while he rails against pro-clean energy policies.

Morriss, you see, is a front man for the front group, the Koch-funded Mercatus Center at George Mason University; the Koch-funded Property & Environment Research Center (PERC); and the ExxonMobil and Koch-funded Institute for Energy Research. I’m guessing that he, like others in the cottage industry of anti-clean industry front groups, has been trying to raise more dirty energy money by showing he can put an equals sign between the Solyndra bankruptcy and broad pro-clean energy policies.

Sun, 2011-10-02 12:06Farron Cousins
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Oil Lobbyists Targeting “Super Committee”

As the so-called “Super Committee” works to figure out how to trim $1.2 trillion from the U.S. government’s federal deficit, the dirty energy industry has their lobbyists working overtime to make sure that their billions of dollars in annual subsidies aren’t among the items on the chopping block.

The Super Committee only has until Thanksgiving to submit their proposals to President Obama. And not being ones to miss an opportunity, members on the committee have scheduled dozens of personal fundraisers for their campaigns before that deadline hits. And many of the companies who fear that their subsidies could be cut will be in attendance. After all, the lobbyist blitz contains more than 180 former staffers of members of the Super Committee, so access is not an issue, and no introductions will be necessary.

The New York Times lays out the issue as follows:
  

Hundreds of lobbyists, including many former Congressional officials and frequent campaign contributors, are making their cases to the committee members.

Ethanol fuel producers, oil companies, corporate jet owners and many other businesses want the committee to guard their own special tax breaks.

“Everybody’s at risk,” said Howard Marlowe, president of the American League of Lobbyists, “and so everyone’s going to be out there lobbying.”

With the lobbying, of course, come valuable campaign contributions. Despite calls from watchdog groups to suspend their fund-raising, most committee members are continuing to raise money from many of the same industries affected by their work.
 
Wed, 2011-09-21 14:06Farron Cousins
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Global Financial Leaders Recommend Cutting Fossil Fuel Subsidies

Global financial institutions including the International Monetary Fund and the World Bank have released a new set of recommendations for G20 countries to meet their goal of providing $100 billion a year in aid for developing nations to combat climate change. In addition to calls for charges on carbon emissions and higher prices for carbon-intensive fuels, the financial experts said the first source of funding should come from redirecting fossil fuel subsidies.

In a move that will surely leave the dirty energy industry in a fit of rage, global economists said that fossil fuel subsidies should be cut and redirected towards helping developing nations fight climate change. The total amount spent on industry subsidies for G20 countries is currently $60 billion a year, more than half of what the countries have pledged to spend per year on climate initiatives and renewable energy projects.

From The Huffington Post:
  

The draft paper says the starting point should be a review of fossil fuel subsidies, amounting to $40 billion to $60 billion a year. But many of those subsidies are handed out in poor countries, where people living on the edge of subsistence need help, for example, to buy cooking gas. Still, subsidy reforms in industrialized countries and emerging economies could contribute $10 billion a year to a climate fund, it said.
Fri, 2011-07-29 15:38Brendan DeMelle
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EIA's Politically Dictated “Garbage” Subsidy Report Obtained And Released Publicly

The Checks and Balances Project has obtained a copy of the controversial Energy Information Administration report that was called “garbage” by EIA Acting Administrator Howard Gruenspecht.  The polluter-friendly report was just delivered yesterday afternoon to the GOP House requesters, Reps. Jason Chaffetz (R-UT), Congresswoman Marsha Blackburn (R-TN) and Congressman Roscoe Bartlett (R-MD). Checks and Balances provided a copy to DeSmogBlog, which we’re providing to the public here: “Direct Federal Financial Interventions and Subsidies in Energy in Fiscal Year 2010” [PDF].

Gabe Elsner, Deputy Director of the Checks and Balances Project, told DeSmogBlog that, “if it’s true that the Acting Administrator Gruenspecht called this report a “piece of garbage” he was right, because it deliberately leaves out the six other ways in which coal, oil and natural gas get government handouts.  The fossil fuel welfare tab is tens or hundreds of times greater than the cost of pro-renewable policy support.” 

Thu, 2011-07-28 20:14Brendan DeMelle
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EIA Head Objected to Politically Dictated “Garbage” Subsidy Report, But Delivers it Anyway

Stephen Lacey from ClimateProgress on Tuesday detailed a letter sent to the Energy Information Administration (EIA) by three GOP House members asking the EIA to use loaded assumptions in running its models to show that fossil fuels are a better taxpayer investment than renewable energy sources.

These members, each of whom has received campaign funding from fossil fuel interests, essentially requested a report designed to suggest that renewables get huge public subsidies (they don’t) and that government handouts to fossil fuels and nuclear energy are a better deal for taxpayers (they aren’t). It was a blatant attempt to defend oil industry subsidies, and it put EIA in the unenviable position of lending its credibility to the talking points used by the oil, gas and coal industries.
 
Lacey reported that in a rare moment of sanity in Washington, the report was halted before it was turned over to the GOP requestors. Lacey’s report says that EIA cited “quality assurance” concerns, and would revisit the report to ensure it gives a “full picture,” accurate account of energy subsidies, not a politically driven result.
 
But “quality assurance” was the kindest way to portray what really happened.

Mon, 2011-06-20 09:57Farron Cousins
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Paul Ryan Lies About Ending Oil Subsidies To Protect His Family’s Cash Bonanza

Representative Paul Ryan (R-WI) has been all over the place when it comes to ending the multi-billion dollar subsidies that the oil industry receives every year. While he has publicly admitted that he is in favor of ending this “corporate welfare,” and his staff has claimed that his budget plan actually calls for an end to oil subsidies, the truth is that Rep. Ryan would never end oil subsidies because he makes a lot of money keeping the welfare spigot open.

The oil industry currently receives $4 billion in subsidies from the federal government, and receives more than $4.4 billion in tax breaks every year, bringing their total government handouts to more than $8 billion every year. Some estimates actually put the total number closer to $35 billion a year.

According to a new report by Joe Romm at Climate Progress, Paul Ryan and his family have a financial stake in some of the companies that receive these oil subsidies.

Wed, 2011-04-13 17:20Mike Casey
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Gambling when we don’t have to

Two weeks ago, I visited the office of a friend of mine, a partner at a top cleantech Silicon Valley law firm. He and I shared a concern about the increasingly hostile, anti-clean energy propaganda from dirty energy-funded critics who are trying to position clean energy as expensive, subsidy-dependent, and “not ready.” The good news, my friend said, was that he’s increasingly hearing from cleantech executives and investors concerned about these growing attacks on their investments. The bad news was that many of those concerned don’t connect the attacks with the dirty energy money that’s funding them.

Now what cleantech needs to hear is, ‘No more Mr. Nice Guy’,” he told me. “These [dirty energy] guys are out to kick our butts, and they will if we let them.”

I think my friend is right. However, after attending last week’s Bloomberg New Energy Finance Summit, I think there’s a ways to go before enough cleantech players see that dirty energy is using media and government to protect its capital investments and decades-long feeding at the public trough.

Wed, 2011-03-09 11:05Farron Cousins
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Congress Seeks to End Billions in Subsidies for Oil Companies

As both oil industry profits and gas prices continue to rise, Congressman Bruce Braley (D – IA) believes that it is time to end the billions of dollars worth of subsidies that the United States hands out to oil companies on an annual basis. In his proposed Clean Energy Jobs bill, Braley would end the tax breaks and other subsidies that flow to the oil industry, and use that money instead to create clean energy jobs, invest in biofuel production, and pay down the national debt.

These oil industry subsidies are nothing to scoff at. In 2005, then-President George W. Bush authorized a total of $32.9 billion worth of new subsidies for the industry over five years, bringing the annual total of their subsidies to a staggering $39 billion. The new subsidies were put in place at a time when Americans were paying the highest price for gasoline at the pump in history, which coincided with the largest oil company profits to date.

Mon, 2011-02-21 06:13Mike Casey
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Top EIA Energy Trends Watcher Agrees: We Do Not Count Damage to Public Property in Price of Fossil Fuels

Scaling Green recently wrote about the insights shared by energy trends analyst Chris Namovicz of the U.S. Energy Information Administration (EIA), who spoke at our “Communicating Energy” lecture series recently, and his comments regarding the lack of a definitive count on fossil fuel subsidies in this country. Today, we return to Namovicz’s lecture, this time to ask him about the economics of fossil fuel companies’ exploitation of resources on public property.

Here’s our question:

Their price drops in part because we’re not charging them to ruin public property. I mean, we basically are letting them contaminate water, we don’t charge them for that, and they don’t have to pay it. Your assumptions don’t include any price we would impose on them for hurting public waterways, is that accurate?

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