Tulsa Business Staff
6/30/2009
Government subsidies in 2007, the latest figures available, for ethanol amount to $5.82 per million Btus compared with 5.7 cents for oil and gas, Bob Tippee, editor of the Oil & Gas Journal told members of the International Society of Energy Advocates at its quarterly meeting Thursday.The subsidy in the form of tax breaks and incentives, for the oil and gas industry have gone down since 1981 when it was 29 cents per million Btus, Tippee said. The nation is spending a lot of money on other fuels and “it is going to get worst,” he said. Meanwhile, the administration of President Barack Obama has proposed $49.9 billion in costs through 2019 in nine different categories to reduce global warming. The treasury department now says that government incentives, including those in the tax code, “distort markets by encouraging more investment in the oil and gas industry than would occur under a more neutral system.” Tippee said that there is a lot of political power in California resulting a “political dynamics” at the federal level that says the nation will use less oil and gas if it produces less.
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Aerospace
