The oil companies basically sell gas for the most the market will bear. If they can get a higher price in Canada or Europe or China (after shipping) then they will sell it there, not in the US. Only the market will change the price, not whether or not they get any subsidies. ckessel if Chevron got a subsidy and BP didn't, they would both still sell their gas for the highest price the market will pay. Rich I think you are basically saying the same thing I am. If the oil companies had to pay for all those things you listed in #1 - 4, they would still sell their gas for the most they could get for it. If that was less than their cost, they would cut production until the price came back up. They sell it in EU and UK for about the same price as in the States. The reason the consumer pays more there is because the government adds a larger tax. The reason we have massive subsidies for the oil industry is not to keep prices low. It's because they have a very powerful political lobby and several very effective super-pacs.