Report Shows The Oil Industry Benefits From $5.3 Trillion in Subsidies Annually

oil subsidies2
Most Americans should know by now that Republicans despise ‘entitlements’ that they errantly consider is anything Americans receive; even if it is theirs to begin with. They hate the idea of retired Americans receiving their Social Security and Medicare after paying into them their entire working lives, and they hate Americans working at slave-wage jobs receiving nutrition assistance because they earn too little to survive. What they do not hate, and indeed fight ferociously for, are taxpayer-funded entitlements that go to corporations in the form of tax loopholes and particularly entitlements for the oil industry in the form of subsidies.

According to the oil industry, the very idea of ending billions-of-dollars in taxpayer subsidies for the profitable industry is un-American; a position that Republicans embrace with religious passion. However, it is not just Republicans that believe the oil industry deserves to be paid for being a highly-profitable business; the world’s governments are handing outlandish amounts of the population’s money to the industry that is driving the Earth’s climate catastrophe.

In a new and disturbing report from researchers at the International Monetary Fund, the world’s governments are providing subsidies to the highly profitable oil industry to the tune of an astonishing $5.3 trillion in benefits per year.  Another way of looking at just how much the world pays the oil industry that bears responsibility for decimating the Earth’s environment; imagine they receive $10 million per minute. That is $10 million every minute, every day, of every month, of every year. Those mind-boggling entitlements have grown over the past couple of decades and are increasing every year.

What that also means is that every minute the world’s population is paying $10 million to help the fossil fuel industry pump climate-changing greenhouse gases into the atmosphere. All the while, in America Republicans are either denying that the Earth’s climate is warming, or debating whether global warming is caused by man’s propensity to pump carbon emissions into the atmosphere. If that is not bad enough, Republicans are fighting tooth and nail to preserve America’s billions in oil industry subsidies while crusading to abolish any and all environmental regulations and eliminate efforts to find new and less costly clean energy alternatives. It is true the world’s population will continue depending on fossil fuels for their energy needs long into the future, but that does not mean seeking and developing existing clean and renewable energy sources needs to be put off; particularly when the intent is to create more wealth for the oil industry.

What most Americans may be surprised to learn, if they even care, is that the IMF report revealed that besides the obvious cash “subsidies” being regularly “gifted” to the oil industry of a collective $88 billion from the G-20 nations alone, are the horrific  consequences of burning fossil fuels that very few nations, including the Koch-American government, are even willing to address. These are consequences such as the permanent and prohibitively costly health and environmental impacts affecting both local regions such as air and water pollution, and the more dangerous global consequences such as melting glaciers, rising sea levels, and extreme weather events wreaking havoc on the entire world.

Actually, it is the effects of pouring billions of tons of climate changing greenhouse gases into the atmosphere that accounts for nearly three-quarters of the final $5.3 trillion annual figure arrived at by IMF researchers. According to a statement from  Benedict Clements representing the IMF’s fiscal affairs department; “While the large size of our new estimates may be surprising, it is important to put in perspective just how many health problems are linked to energy consumption and air quality.” According to conservative estimates of the World Health Organization (WHO), “One in eight global deaths are attributable just to air pollution.” Obviously it does not included the deaths from drought-related food shortages, lack of water, extreme and deadly weather events, or any of the other consequences of anthropogenic global climate change caused by burning fossil fuels. The WHO strongly suggests that even beyond the global climate benefits of the entire world working in concert to eliminate the highly-profitable oil industry’s entitlements, any one nation’s efforts to keep fossil fuels in the ground and out of the atmosphere “will carry very significant health and economic benefits at the local level.”

The IMF’s report revealed that ending oil industry entitlements would cut by half the number of deaths attributed to outdoor air pollution alone and save about 1.6 million human lives each year. Besides, the level of money being paid to the oil industry for nothing would be better spent on healthcare, education, and infrastructure improvements and relieve the crushing poverty plaguing third world nations like America and drive robust economic growth. Part of that spending naturally includes investing in more cost-effective and money-saving projects like clean and renewable energy and research and development of more energy-efficient uses for oil and gas.

To his credit, President Obama has made efforts to scale back America’s contribution to destroying the Earth’s climate, and in fact joined Democrats’ one attempt at putting an end to taxpayer-funded entitlements to the oil industry. But this is the Koch brothers’ America and although Republicans will never allow the entitlements to stop flowing to their favorite campaign donors, the President could do much more to alert Americans that while their roads, bridges, hospitals, and schools are crumbling around them, Republicans continue spending taxpayer dollars to bolster the profitable oil industry’s bottom line.

It is noteworthy that although the President did veto the Republican attempt to circumvent his Constitutional authority over the Canadian Keystone XL pipeline, he made peace, at least temporarily, with the Koch brothers and fossil fuel industry by granting them permission to start drilling for oil in the Arctic. Obviously President Obama had a good reason to give big oil more opportunities to wipe out the climate and destroy the pristine Arctic environment, but it is a secret he felt was too dangerous for the American people to learn. He said it was because “we can’t prevent oil exploration completely in the region, so we’re setting the highest possible standards.” However, Americans have witnessed, for far too long, exactly how effective those “highest possible standards” are; especially since the Koch brothers own the federal government.

The President sent a mixed message about his commitment to combat global climate change and committed America to adding to the $5.3 trillion in subsidies for the fossil fuel industry; likely to keep up with other world governments that, like America, will not bother to invest even a fraction of that astounding amount in protecting their population’s health or the environment. If nothing else, it appears that to maintain its status as “exceptional,” America will not be outspent by other governments in providing big oil’s entitlements any more than it will make any significant attempt to combat anthropogenic climate change; not while the Kochs own the government. And make no mistake, the Kochs and big oil do own the government lock, stock, and barrel.

It is a sad state of affairs, but the rest of the world’s population, like the American people, are going to have to come to grips with the tragic fact that they are contributing to the $5.3 trillion annual oil subsidies to destroy the environment and the Earth’s climate whether they like it or not. The lack of outrage in the population informs that obviously, most Americans do like it and that, in itself, is incredibly discouraging.

40 Replies to “Report Shows The Oil Industry Benefits From $5.3 Trillion in Subsidies Annually”

  1. The oil companies are making ENORMOUS profits, why the hell are we giving them subsides?
    This doesn’t make any sense at all!

    The oil companies have made Texas the MOST polluted state, why are my tax $$$ going to clean up THEIR mess?

    A Texas owned oil company just ruined miles of California’s beautiful Santa Barbara coastline and are dragging their feet with the clean-up. The oil globs are now showing up further south in Long Beach, Huntington Beach and Laguna Beach.

    BP has ruined the Gulf forever.

    All their subsidies could be going to help discover RENEWABLE energy sources.
    Yes, the pundits will say “it’s not cost effective”…but if we continue to DO NOTHING, the cost will only continue to go higher.

  2. All that $$$$$ buys politicians, who scream:

    “We need more boots in the ground to protect American Interest!”

    While they mean:
    “Send your son and daughter to defend the oil pipelines in the Middle East, so that we can keep the grease coming to our pockets”

    We will keep the young people uneducated and ignorant, so that they will be glad to have a job and feel “patriotic” about it

  3. We will keep the young people undereducated and poor so they will go into the military to GET educated and/or be killed in a war. If they come back alive we’ll continue to deny them veterans services after all they’re expendible. /snark

  4. Why used your tax dollars? simple YOU are part of the problem. Quit driving your car, quit using electricity, quit using or buying anything made of plastic, nylon, rayon etc. then you will have a place to bitch.
    BP has not destroyed the gulf. As a resident of Louisiana, tourism has recovered, wild life and plant life have recovered, and things are basically back to normal if not better than before the spill.

  5. BP has not destroyed the Gulf?
    Reality says different:
    5 Years After BP Oil Spill, Effects Linger And Recovery Is Slow

    http://www.npr.org/2015/04/20/400374744/5-years-after-bp-oil-spill-effects-linger-and-recovery-is-slow
    Quit driving your car, quit using electricity, quit using or buying anything made of plastic, nylon, rayon etc. then you will have a place to bitch.
    So WTH does using electricity have to do with oil?
    Another false comparison from an Oil W***e.
    We’ve got plenty places to bitch, as we strive to eliminate plastics and oil from our lifestyle, and folks like you tossing obstacles in the way every step. We have the technology to make all of that you listed obsolete- but the Corporate Oil Whores fight it tooth and nail.

  6. $5.3 trillion, hmm.
    We need to end this? No.
    Where will the oil companies get that $5.3 trillion?
    Well that’s easy, at the pump. Oil prices will skyrocket and if you think $4.50-$5.00 for a gallon of gas is a lot wait till you have to make up for $5.3 trillion a year in losses. And that is exactly what they will see it as. Part of these subsidies is to keep prices lower for the consumer. That’s you and me.

  7. Included in that 5.3 Trillion- are the taxes they’re not paying.

    Which we get to cover.

    So in the end- we’ll still pay- yes. But then, so will they.

  8. Since we’re subsidizing the Oil Industry- how does this coincide with the “Free Market Economics’ that Conservatives are always going on about as being necessary for a healthy economy?

  9. Which subsidies should cease? Strategic Petroleum Reserve, Farm Fuel tax exemptions, Low Income Home Energy Assistance, stop them all? Apple can take a 9% manufacturers deduction but Exxon Mobile can only deduct 6%, is that okay with you anti oil nitwits? Apple’s profit is higher, they employ fewer with worse working conditions. The majority of oil company profits are rolled immediately into new projects to continue the search and production of hydrocarbons.
    This is not a news site, more like a mouthpiece for easily influenced lemmings desperate to be relevant.

  10. Maybe they frack so much, that it causes the cataclysmic eartquake with all the plates getting displaced, causing volcano eruptions with a big huge smoke full of deadly chemicals that suck all the life of the planet!

    and then…

    maybe Pachamama get to recover from all the human activity…

  11. I will agree to the removal of subsidies when they are removed in their entirety. Not just for Oil companies but for all other industries as well. At the same time however the 41% tax rate for Oil must cease and be brought down to the 26% average that other companies traded in the market face.
    ALL energy subsidies should be removed (including solar and wind) and taxes altered to prevent an increase.

  12. You are a liar
    Four of the companies in this study – ExxonMobil, ConocoPhillips, Occidental, and Chevron – account for 84 percent of all the income and paid 85 percent of all the taxes for the entire group. These four had an ETR of 24.4 percent and a current ETR of only 13.3 percent. The smaller firms paid an even smaller share of their tax liability on a current basis. When the top four companies and those with losses are excluded from the analysis, the remaining companies reported a 28.9 percent ETR on U.S. income, but only a 3.7 percent current rate. They deferred over 87 percent of their tax liability.
    http://www.taxpayer.net/library/article/effective-tax-rates-of-oil-gas-companies-cashing-in-on-special-treatment

  13. “1) Exxon Mobil made $19 billion in profits in 2009. Paid no taxes and got a $156 million IRS rebate
    2) Bank of America got a $1.9 billion refund last year, made $4.4 billion and got a 1 trillion dollar bailout.
    3) General Electric made $26 billion in profits over the past 5 years & got a $4.1 billion refund.
    4) Chevron got a $19 million refund & made $10 billion in profits in 2009.
    5) Boeing got a $124 million tax refund.
    6) Valero Energy — $68 billion in sales & got a $157 million refund check & $134 million tax
    break over the past 3 years.
    9) ConocoPhil¬lips — made $16 billion in profits from 2007 through 2009. Got $451 million in tax breaks.”
    Apache: Houston-based oil and gas company………..Profits: $6 billion Effective tax rate: -0.3%
    “““WE ARE BROKE ,,WE ARE BROKE,,,,, THE REPUBLICANS CRY,,,,BUT NOT BROKE ENOUGH TO COLLECT TAXES FOR REVENUE,,,,WHAT WE DON’T NEED IT OR SOMETHING??_____

  14. I would agree when ALTERNATE fuel sources are discovered, come into market and post profits THEN subsidies should cease.

    These oil companies are making ENORMOUS profits AND getting ENORMOUS subsidies and their executives are getting ENORMOUS salaries.

  15. Well if we’re going to up the ante and demand an end to all energy subsidies, I propose that we end all subsidies to organized religion as well.

    Now that world wide subsidy of 5.3 trillion?

    The American National Debt would get paid off in 4 years and with a surplus.

    We could end a lot of taxes.

    And yes it’s Robert. You can change the name, but you can’t change your spots.

  16. Why do you keep calling my name Moongrim? You want me back?

    Keep calling my name and I just might do a return summer tour.

    Otherwise…let it go.

  17. There’s a whole World of people who think like I do. Here in the bubble it’s just the same ten people sitting in a circle and…going through the motions.

  18. But to subsidize health care for American who pay taxes is constitutional and illegal. Well how did these Multi-National companies get their subsidies? Bought and pay for by our elected leaders (soon to be rich beyond belief). No wonder the American Indian when first meeting Europeans (white settlers)discovered “White man speaks with forked tongue”. It is only a miracle that majority of real “White” Americans did not cause this un-American trend of thought and will do what is patriotic for America’s interest and people. So all is not lost is although the perpertrators have grown in secret numbers.
    WTFHAPPENED

  19. Because you’ve never left. You keep using sockpuppet accounts to continue trolling.

    It’s obvious, no matter how many times you say you’ve left, you keep coming back, like a chancre.

    And once again you demonstrate your lack of honor.

  20. Think? No, that’s not thinking.

    Mynah birds demonstrate more intellectual capacity than the Hive-Mind of Conservatism.

  21. You gotta be kidding me! @robert I thought you said your farewells a few days?! and now you’re back?!! my GOD @robert, what a sad little man you are. You can’t even bow out with any dignity, you without question are a true conservative! NO pride! NO honor! very little intelligence but willing and able to show the world just how lowly and pathetic you really are, I pitty you

  22. Well speaking of worthless and pathetic, lets talk about the GOP as a whole, I get it, as human beings we all have our biases and moments of hypocrisy but the republicans go to levels that boggle the mind! case in point, WELFARE, these LILY WHITE republicans have a complete melt down when someone stubbles and needs assistance from one of the safety nets but when the government hands out welfare to corporations, it’s totally acceptable and encouraged. Your average republicans are brainless BORG’S!! they can’t use common sense to save their balding little heads! The corporations have brainwashed them so severely, that even POOR DIRTY FARMER republicans who have more kids than they have dollar bills will PROUDLY flash their two front teeth and SCREAM, “The job creators are driving america!!”” LMFAO really? seriously?? NO Jethro! the job creators are robbing us blind! and you’re too stupid to understand it!!

  23. @Moongrim, my respect for you just went up another notch!! my method of posting my opinions here are, Read the topic or most of it, then I go back and read the PEOPLES post, brother I read your post on @robert and you basically said the same thing I posted LMFAO BTW @robert has ZERO honor or pride! or will power! he’s addicted to this site like a cheap whore on CRACK!! ok OK! I went too far with that last part??? ok I apologize to all the hard working whores out there! I shouldn’t have compared you to @robert.

  24. For a couple of very LONG months in 2006, I worked as a telemarketer selling conference packages to oil company execs. As a consequence, I got to see how much their top execs made a year. It was appalling. one exec I saw was 9 *million* US dollars a year, with another 8 *million* US dollars in bonuses. The average was around 4-5 million. So, before I hear about all the so-called ‘good’ oil companies do with their money, I’d like to know why they need subsidies to pay people this sort of insane amount of money.

  25. You have and you do.

    Oh, now he claims he’ll be back. I’ll take that with a grain of salt- considering how many times he’s slammed the door on the way out saying he’s gone for good… four/five times now…

    Robert= Drama Queen of the Sockpuppetry.

  26. I agree knight.Robert has this strange notion that he’s somehow…relevant.

    But I also disagree with you- his pride does exist, and it’s approaching the size of the Hindenburg.

    Thus he’s incapable of keeping his word. He has to hide behind his manifold sockpuppet accounts.

    Honor? No. The names can change, but the B.S. doesn’t change.

  27. Something interesting I found…
    “How can oil companies profit from $5.3 trillion in annual subsidies when the entire federal budget is less than $4 trillion? Math doesn’t add up there. In 2011 three of the oil giants mentioned above paid more income tax than any other American corporation. ExxonMobil paid $27.3 billion in income tax, Chevron paid $17 billion, and ConocoPhillips paid $10.6 billion. Last time I checked that’s $54.9 billion (leaving a little over $80 billion…yes still a lot, but comparitively smaller significantly).”

    You can’t unring the bell, but you at least STOP ringing it.

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