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President Obama Calls for End To Oil and Gas Subsidies

Discussion in 'Energy, Environment, and Policy' started by NigelM, Mar 2, 2012.

  1. Teslawisher

    Teslawisher Member

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    What about subsidizing those companies producing residential wind and solar power generation equipment? And obviously some kind of caveat that the money can only be used for the production of these products, and not other products these companies may also make. I'm not "for" subsidies, but if they are going to be there regardless, put them where they do the most good.
     
  2. Arnold Panz

    Arnold Panz Model Sig 304, VIN 542

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    The problem with them is that the subsidies would have to be enormous (difficult in this environment) to ever get the prices of the energy from these sources to be cheaper than fossil fuels (coal and oil). Another option is to raise gas prices tremendously, like they have them in Europe, and then offset the revenue gains with a reduction in the payroll tax so that a regular wage earner isn't negatively impacted by the new high fuel costs. As described in the article below, it has the dual benefit of discouraging things we'd like to minimize (burning fossil fuels), encourages people to minimize oil usage, and encourage or rewards more people for their work.

    Hendrik Hertzberg: Obamas Gas Gaffe? : The New Yorker
     
  3. Robert.Boston

    Robert.Boston Model S VIN P01536

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    Putting in a hard floor on the pump price of gasoline, @Arnold Panz, just creates a natural pricing point for all gas stations. They will simply collect greater margins rather than cut their nominal price and send a bigger check to Washington.
     
  4. Larry Chanin

    Larry Chanin President, Florida Tesla Enthusiasts

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    Industry experts discuss future of automotive industry, electric cars

    Larry
     
  5. Doug_G

    Doug_G Lead Moderator

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    That's not what's going to happen. Any supply restriction (geopolitical short term, medium term peak oil + booming demand in asia) and the prices will spike sharply. This will result in a recession causing the prices to drop. Lather, rinse, repeat.
     
  6. JRP3

    JRP3 Hyperactive Member

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    Right, but he seemed to be saying we should have had that in place in a structured manner a while ago.
     
  7. Robert.Boston

    Robert.Boston Model S VIN P01536

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    Fair enough--sustained high prices will help reshape consumers' vehicle choices. But a price floor won't help tax receipts, but instead just boost oil refiners' profits.
     
  8. vfx

    vfx Well-Known Member

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    How about a ten step up and one step back version of the floor price idea?
     
  9. dsm363

    dsm363 Roadster + Sig Model S

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    I agree. I meant more in terms of collecting federal gas tax. It's about 17 cents/gallon or so no, next year it should he 20 then 25 then 30....etc This would effectively be a floor price and the tax revenue would at least hopefully outpace inflation or that could be on top of inflation actually.
     
  10. Arnold Panz

    Arnold Panz Model Sig 304, VIN 542

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    I think the proposal is based on the price of a barrel of crude oil, so the tax would kick in at a certain amount based on the price of crude. Of course, any individual gas station owner can charge more (as they do now in high rent locations), but I don't see how an owner could manipulate this tax if it's implemented at such an early stage of the process.
     
  11. Robert.Boston

    Robert.Boston Model S VIN P01536

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    Ah, that makes sense and would work.
     
  12. vfx

    vfx Well-Known Member

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  13. dpeilow

    dpeilow Moderator

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    Democracy. Don'tcha love it?
     
  14. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    I'd oppose ending subsidies to the oil companies if you paid me $501,755.32.:tongue:
     
  15. Robert.Boston

    Robert.Boston Model S VIN P01536

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    1 dollar, 1 vote. Thank you, Citizens United.
     
  16. NigelM

    NigelM Recovering Member

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    Of course the people buying gas (and complaining about the high price of it!) are the ones who actually paid for that.
     
  17. JRP3

    JRP3 Hyperactive Member

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    And usually the ones complaining the most about it are the ones driving over sized SUV's and trucks. They rarely see the connection.
     
  18. jerry33

    jerry33 S85 - VIN:P05130 - 3/2/13

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    +1 When someone complains about increased gas prices to me, I answer "There was a gas price increase?"
     

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