The oil industry is heavily subsidized at US$114.6 billion a year. If we included the costs of securing and protecting oil supplies, extracting and processing it, gas would cost $15.14 per gallon. The International Centre for Technology Assessment released a report which examined over 40 cost factors associated with gasoline production – adding up to $1.69 trillion per year.
The U.S. government spends $1.6 billion yearly on regulatory oversight, pollution cleanup and liability costs connected to the oil industry. The U.S. Defense Department allocates $55-95 billion a year to safeguard the world’s petroleum resources. Most state income taxes are based on oil firms’ lower federal tax bills, which result in companies paying US $123-323 million less in state taxes.
The renewable energy and energy conservation industry sectors are concerned that the subsidies distort the free market and make renewables less economically competitive. They call for leveling the economic playing field, either by giving them the same subsidies, or by withdrawing the subsidies from the oil industry.
FROM Gallon Environment Letter
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