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Your "boondoggle" term clearly hints you view this (and probably most issues) through a partisan, polical prism and that you are incapable of thinking objectively or with a view towards the big picture.Give up the knee jerk thinking for a while and try to form your own opinion, not the one fed to you on FOX, which is hardly the arbitor of science or reason.
2. The O&G companies already get an embrassasing and scandalous amount of subsidies that DWARF any investments or subsidies granted to green tech.
Everyone wants to end subsidies to oil companies, from President Obama to John Boehner and Paul Ryan . My question was "What subsidies?" Remarkably enough, CNN Money provided the answer. It turns out that they are all tax "breaks." I even hesitate to call them "breaks" because some of them amount to little more than Congress defining accounting terms such as "capital equipment." And the total amount of earnings not collected in taxes (which liberals define as a "subsidy") is about $4 billion per year. Here is how that breaks down......................
The problem with market manipulation is that markets are highly dynamic systems, especially when it comes to energy. Energy is the ability to do work, work is money, money is energy. Energy, money, and work are economically synonymous. Oil is free. It just sits in the ground waiting for somebody to pump it out. The cost of oil is the work it took to pump it out, the work to transport it, the cost of refining it, the taxes levied upon it, and some amount of profit (which is limited by competition). This is true of all natural resources. The raw materials used in a $100 solar panel are cheap and abundant. There is as much silicon in a jar of pasta sauce as there is in that entire $100 panel, and we throw away the jar. What makes that solar panel cost $100 is all of the energy put into transforming dirt into solar panels.
The predestined failure of Obama's energy policy is becoming clear. If Obama doubles the cost of energy, then he doubles the cost of turning that free dirt into a $100 solar panel, which now becomes a $200 solar panel. The Obama energy policy is based on independently altering both sides of an equation, but the sides are closely dependent. Read more: www.americanthinker.com...
Originally posted by JohhnyBGood
Big oil gets no special treatment at all, that doesn't apply to any other industry!
Instead of deducting the costs of an oil or gas well as its value declines, oil companies are allowed to deduct a flat percentage of the income they derive from it.
As Sen. Bob Corker, a Tennessee Republican, has explained: “Congress was trying to solve a manufacturing issue in this country” by enacting the deduction and included oil producers “almost inadvertently."
This means they can take immediate deductions for these costs rather than spreading the deductions out over the useful life of the wells, which is the normal tax code rule for other types of investments.
The rules are supposed to prevent oil companies from claiming credit for royalty payments to foreign governments. Royalties are not taxes; they are fees for the privilege of extracting natural resources.
Another way many oil producers get to postpone their tax liability is by writing off the costs of searching for oil over an accelerated time period of two years.
LIFO allows oil companies to calculate profits based on the cost of the oil they most recently added to their inventory. Since the most recently acquired inventory costs the most when prices are rising, this method can minimize a company’s taxable income. LIFO is available to businesses in other industries but large oil companies are perhaps the biggest beneficiaries.
President Barack Obama issued an Executive Order Supporting Safe and Responsible Development of Unconventional Domestic Natural Gas Resources aimed at increasing coordination among federal agencies as it relates to hydraulic fracturing.
An interagency group will oversee the development of natural gas, which builds on a pledge he made in his January State of the Union address to support the industry while increasing safety. The order seeks to coordinate regulation among agencies and their efforts to boost use of natural gas in cars and trucks.
Do you know what oil company does get US subsidies, and not just tax "breaks"?
Petrobras, Brazil's state-owned oil company. According to the Wall Street Journal, The U.S. is going to lend billions of dollars to Brazil's state-owned oil company, Petrobras, to finance exploration of the huge offshore discovery in Brazil's Tupi oil field in the Santos Basin near Rio de Janeiro. Brazil's planning minister confirmed that White House National Security Adviser James Jones met this month [August 2009] with Brazilian officials to talk about the loan.