posted on Mar, 4 2009 @ 10:48 PM
U.S. oil and gas companies contribute to global warming, Treasury Secretary Geithner tells Congress.
U.S. oil and natural gas producing companies should not receive federal subsidies in the form of tax breaks because their businesses contribute to
global warming, U.S. Treasury Secretary Timothy Geithner told Congress on Wednesday.
It was one of the sharpest attacks yet on the oil and gas industry by a top Obama administration official, reinforcing the White House stance that new
U.S. energy policy will rely less on traditional fossil fuels like oil as America tackles climate change.
"Geithner told a Senate Cimittee that Obama’s administration does not believe it makes sense to subsidize production and use of oil and gas that
add to climate change.
The Obama administration's budget would levy a new 13 percent tax on all oil and gas production. Obama would also place a $4 per acre annual fee on
energy leases in the Gulf. The budget proposal projects the fee would generate $1.2 billion from 2010 to 2019.
Senator John Cornyn of Texas criticized the tax increases, saying they would hurt independent energy companies that provide a large share of U.S. oil
and gas supplies.
Of course, like any business any increase in “costs of goods sold” will be passed on to American consumers.
Geithner denied this, contending that oil companies would “absorb” the additional costs since they make so much money already.