Obama on Oil

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Obama on Oil

by metyu @ 28.08.2008 – 10:24:19

"Instead of subsidizing the oil industry, we should end every single tax break the industry currently receives and demand that 1 percent of the revenues from oil companies with over $1 billion in quarterly profits go toward financing alternative energy research and the necessary infrastructure. Not only would such a project pay huge economic, foreign policy, and environmental dividends - it could be the vehicle by which we train an entire new generation of American scientists and engineers and a source of new export industries and high-wage jobs".

(Barack Obama, "The Audacity of Hope: Thoughts on Reclaiming the American Dream", p169)

What do you think? Do you know anything about UK oil/gas subsidies?

The BERR is currently consulting regarding its renewables strategy, http://www.berr.gov.uk/files/file46799.pdf
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10 Comments to Obama on Oil

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- technomist
- 28.08.2008 @ 11:22:41
I have no idea. More to the point, what does Obama know about it, and what business of it is his?
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- HektorRevisited
- http://thewindhover.blog.co.uk
- 28.08.2008 @ 11:37:03
Sounds completely daft to me. Companies pass on tax increases to customers via price increases, tax increases plus price increases equal a higher cost of living. Yes, energy companies should be encouraged to research alternative forms of energy, but this should be done by other means that taxation.
- - metyu
  - 28.08.2008 @ 12:03:59
  I am not sure he is saying tax increases?
  
  He is suggesting an end to subsidies, and a "demand" for RnD. This could be in their own RnD departments?
  - - deleted user (Visitor)
    - 28.08.2008 @ 18:54:30
    I imagine "ending tax breaks" would be equiavalent to imposing taxes, but then in Americanise that may mean something totally opposite.
    Instead of indirect financing of alternative fuels research, this would be done directly by the oil companies, who would then claim that back on their tax returns. All in one, same shit - different name.
    Good try, Obama.
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- SeasideMan ^Pro
- 28.08.2008 @ 11:46:29
I'm with Hektor on this. The tax will just be passed on to the public. If he wants to fund alternatives (as I think he should!) then at least have the balls to do it via central taxation and make it policy. This wimpy by-the-back-door idea just looks weak.

Tom.
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- Climate Heretic (Visitor)
- http://www.theclimateheretic.com
- 28.08.2008 @ 12:08:51
Welcome to the USSA (United Socialist States of America)

Never mind the 69 Billion in Taxes paid to arrive at the post tax revenue of 19 Billion dollars in profit for one oil company in 2007. Never mind the billions in land lease revenue that the 68 Million Acres of exploration rights generates currently and the billions more opening the OCS would bring with it.

Never mind that a WPT (windfall profit tax on Oil Companies)in the 1980's lead the US to its current problems with imported oil (production in the US dropped by 20%) and severely hampered the economy until removed in 1988.

Obama is the worst kind of leader, he promotes failed policy from the past and labels it hope for the future. He is popular with the young voters because they do not remember, but look who he does bad with; older working voters because they remember farther back than a decade.

Exxon profit margin is 8.5 %
Google Profit Margin is 25%

It is all about scale.
- - metyu
  - 28.08.2008 @ 12:16:37
  Thanks CH, I was hoping for a few good nuggets of info from you.
  
  Taking it for granted that we need renewables, now or some time in the future - if purely because both US and UK are currently heavily reliant on unstable regimes and the international political climate looks a bit hairy - how do we go about encouraging investment? Is government intervention necessary? The UK reliance on gas is a result of our government acting after WWII, for example.
  
  On Obama, who I find interesting and I do think he would be better for the average American than the current regime, I have noted that he conveniently glosses over certain facts.
  
  For example, he lays into Russia for it's foreign policy towards Ukraine, but fails to mention US foreign policy towards Venezuela and other LA countries.
  - - Climate Heretic (Visitor)
    - http://www.theclimateheretic.com
    - 28.08.2008 @ 16:46:40
    Encouraging investment is easy! It is called an incentive, something that anti-capitalists do not understand in the simpliest terms. Democrats are anti-capitalist, they are all stick with the companies who could make a difference and carrot with anyone who can waste the public's money with little or no return on investment.
    
    Obama firmly believes Governments can do everything better than the private sector, including investing company profits for the good of all and raising your children via education and public service. Sound fimiliar?
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- moe33 (Visitor)
- 28.08.2008 @ 20:06:56
The wording in Obama's statement is unclear--he alludes to "subsidies" and then taxation, two different things. Oil subsidies, which come either directly from a government or go through an institution like the World Bank, are tax dollars that go to helping Oil corporations expand operations (generally, overseas). They perpetuate not only the cycle of dependence on fossil fuel, but also civil conflict abroad, environmental degradation, and enormous debt in the countries with those operations. This is all to point out that the consequences of subsidies are diverse and go well beyond U.S. borders. A conversation about this should not be limited to taxes and corporate profits.
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- metyu
- 01.09.2008 @ 13:34:10
http://bumface.blog.co.uk/2008/09/01/reforming-energy-subsidies-4665766
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