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On Mon, 16 May 2011 13:52:51 -0400, wrote:

On Mon, 16 May 2011 07:54:23 -0400, Harryk
wrote:

What makes you say that? I expect most people understand this but
it's one thing to understand it and another to have enough
corroborating information to cite the problem and call for change.

You just gotta love the dumfochs who actually believe the bull**** about
small profit margins spewed by the oil industry.

"We only make 3 cents, 5 cents or 8 cents a gallon and we need those
subsidies."

What a pile of bull**** that is.

The subsidies do not really have that much to do with profits. These
guys have enough control of the market to guarantee their profit, no
matter where the oil comes from. The subsidy it to encourage drilling
and producing in the US by making the cost competitive with oil from
Nigeria or Mexico.

I could easily argue we are mortgaging our future by not leaving that
oil in the ground here but that is another issue. I do understand why
we do it.
I would suggest we ask the governor of our oil producing states if
they think the subsidies equal jobs.

Total nonsense. That's only one of the sides of the argument...
domestic drilling. What a bunch of hooey.

I would suggest you ask the governor of Louisiana how the BP disaster
affected his state.

Main arguments for energy subsidies a

Security of supply - subsidies are used to ensure adequate domestic
supply by supporting indigenous fuel production in order to reduce
import dependency, or supporting overseas activities of national
energy companies.
Environmental improvement - subsidies are used to reduce pollution,
including different emissions, and to fulfil international obligations
(e.g. Kyoto Protocol).
Economic benefits - subsidies in the form of reduced prices are used
to stimulate particular economic sectors or segments of the
population, e.g. alleviating poverty and increasing access to energy
in developing countries.
Employment and social benefits - subsidies are used to maintain
employment, especially in periods of economic transition.[1]
Main arguments against energy subsidies a

Some energy subsidies counter the goal of sustainable development, as
they may lead to higher consumption and waste, exacerbating the
harmful effects of energy use on the environment, create a heavy
burden on government finances and weaken the potential for economies
to grow, undermine private and public investment in the energy
sector.[2]
Impede the expansion of distribution networks and the development of
more environmentally benign energy technologies, and do not always
help the people that need them most.[2]
The study conducted by the World Bank finds that subsidies to the
large commercial businesses that dominate the energy sector are not
justified. However, under some circumstances it is reasonable to use
subsidies to promote access to energy for the poorest households in
developing countries. Energy subsidies should encourage access to the
modern energy sources, not to cover operating costs of companies.[3]
The study conducted by the World Resource Institute finds that energy
subsidies often go to capital intensive projects at the expense of
smaller or distributed alternatives.[4]