Earth Track Document

Effect of government subsidies for upstream oil infrastructure on U.S. oil production and global CO2 emissions

The United States now produces as much crude oil as ever – over 3.4 billion barrels in 2015, just shy of the 3.5 billion record set in 1970. Indeed, the U.S. has become the world’s No. 1 oil and gas producer. The oil production boom has been aided by tax provisions and other subsidies that support private investment in infrastructure for oil exploration and development. Federal tax preferences, for example, enable oil and gas producers to deduct capital expenditures faster, or at greater levels, than standard tax accounting rules typically allow, boosting investment returns.

EIA Energy Subsidy Estimates: A Review of Assumptions and Omissions

This Review provides the most detailed look to date at gaps in federal tracking of energy subsidies.  In addition to evaluating the research approach used by the US Energy Information Administration (EIA), the Review assesses how key assumptions and omissions in EIA's work resulted in a substantial undercounting of federal energy subsidies and an inaccurate portrayal of subsidy distribution across fuels.  EIA estimates are also placed in the context of other assessments of domestic energy subsidies conducted over the past thirty years.

Defining and Measuring Fossil Fuel Subsidies

For many years, policy discussions have focused on strategies to bring down greenhouse gas emissions using taxes, permits and other regulatory or statutory limits.  Yet fossil fuel markets across the world remain littered with government programs subsidizing these emissions.  The subsidies are large and act as a negative tax on carbon, slowing the transition to cleaner fuels, weakening the impact of carbon constraints and absorbing a significant portion of government revenues in many countries. 

Energy Subsidies within PJM: A Review of Key Issues in Light of Capacity Repricing and MOPR-Ex Proposals

In its proposed tariffs to remove potential distortions caused by subsidies in capacity markets, PJM includes a number of limitations and exclusions that appear to result in unequal evaluation of subsidies across different fuel cycles. This will likely impede PJM’s core objective of ensuring competitive, nondiscriminatory auctions in the wholesale capacity market.

Discussion Draft - Energy Sector Subsidies Associated with Republican Tax Reform Plans

This review assesses the House and Senate tax reform proposals as they relate to the energy sector. Three main areas are examined: cross-cutting changes to tax rates or baselines and whether some of them will have disproportionate or distortionary impacts on particular fuels; specific energy tax expenditures that are modified or repealed in the proposals; and baseline subsidies that remain untouched.

Effect of subsidies to fossil fuel companies on United States crude oil production

Countries in the G20 have committed to phase out ‘inefficient’ fossil fuel subsidies. However, there remains a limited understanding of how subsidy removal would affect fossil fuel investment returns and production, particularly for subsidies to producers. Here, we assess the impact of major federal and state subsidies on US crude oil producers.

Energy subsidies: Global estimates, causes of variance, and gaps for the nuclear fuel cycle

This chapter explores global subsidies to energy.  These subsidies cost hundreds of billions of dollars per year, often skewing market decisions in ways detrimental to environmental quality and social welfare. Subsidy reform could provide large fiscal and  environmental gains, although remains politically challenging to implement . Growing data collection by international agencies and others has expanded the fuels and countries captured in international subsidy figures.

Subsidies to conventional energy in the PJM region: An initial listing

PJM Interconnection is the regional transmission operator (RTO) serving more than 60 million customers in 13 states and the District of Columbia, mostly in the mid-Atlantic region of the United States.  Incumbent base load generators have complained that subsidies to renewable resources have been cutting their ability to win capacity market auctions, stripping them of revenue.  They have been proposing adjustment factors that would improve their competitive position by adjusting bid prices to exclude the subsidy. 

Earth Track Written Testimony on Federal Energy-Related Tax Policy and its Effects on Markets, Prices, and Consumers

Within the United States, the cost of energy subsidies to taxpayers is both substantial and often not properly documented.  Regular review to evaluate the fiscal costs of these policies; their impact on market structure, competiveness, and environmental quality; and their ability to achieve stated goals is prudent. 

My comments focus on three main issues:

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