YOU Are Subsidizing the Oil Industry

As we all know, the oil industry has been enjoying record profits. We can all argue about why they’re so wealthy. They’re brilliant entrepreneurs who’ve earned every cent. They’re a bunch of greedy bastards, engineering a fake “crisis” just so they could jack up their prices. Etc.

In any case, YOU have been giving YOUR tax money to the oil companies.

New oil drilling “incentives” were passed last summer. I would’ve thought the sky-high price of oil would be enough of an incentive. Did people need an “incentive” to go digging for gold in the 1800s?

With these “incentives,” oil companies won’t have to pay royalties on any oil or gas produced in publicly-owned waters in the Gulf of Mexico. Over the next five years, the oil industry will keep about $7 billion in royalties that they otherwise would’ve paid.

Hey, let’s pat ourselves on the back. We all took part in this $7 billion contribution to the oil companies. God we’re generous. (Or maybe “chump” is the right word.)

And that’s not all. Kerr-McGee Exploration and Production has filed a lawsuit to increase the oil industry’s exemption from paying royalties. If they win their case, that $7 billion could quadruple to $28 billion.

Rep. Edward Markey, (D-Mass.) said “The big lie about this whole program is that it doesn’t cost anything. Taxpayers are being asked to provide huge subsidies to oil companies to produce oil — it’s like subsidizing a fish to swim.”

An independent oil explorer in Texas agreed. He said “It’s hard to make a case for royalty relief, especially at these high prices. But the oil industry is like the farm lobby and will have its hand out at every opportunity.”