oil and gas

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.

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.

Talk is Cheap: How G20 Governments are Financing Climate Disaster

The best available science shows an urgent need to keep global temperature increases below 1.5°C to avoid severe disruptions to people and ecosystems. Recent analysis shows that burning the reserves in already operating oil and gas fields alone, even if coal mining is completely phased out, would take the world beyond 1.5°C of warming. The potential carbon emissions from all fossil fuels in the world’s already operating fields and mines would take us well beyond 2°C.

Unequal Exchange: How Taxpayers Shoulder the Burden of Fossil Fuel Development on Federal Lands

The federal government of the United States remains custodian and manager of a large amount of fossil fuels on public lands.  While sales of minerals do bring in some revenue to the government, there are many elements of federal management that result in artificially low realized revenues for taxpayers or subsidize extractive activities.  Key findings of this review include:

Empty promises: G20 subsidies to oil, gas and coal production

G20 country governments are providing $452 billion a year in subsidies for the production of fossil fuels. Their continued support for fossil fuel production marries bad economics with potentially disastrous consequences for the climate. In effect, governments are propping up the production of oil, gas and coal, most of which can never be used if the world is to avoid dangerous climate change. It is tantamount to G20 governments allowing fossil fuel producers to undermine national climate commitments, while paying them for the privilege.

OECD Companion to the Inventory of Support Measures for Fossil Fuels 2015

The combustion of fossil fuels is a leading contributor to climate change, and many countries have already taken steps to reduce their emissions of CO2 and other pollutants. Some policies remain, however, that encourage more production and use of fossil fuels than would otherwise be the case. In so doing, these policies increase emissions and make mitigation more costly than necessary. Fossilfuel subsidies are one such policy.

Fossil Fuel Subsidies: Approaches and Valuation

Numbers ranging from half a trillion to two trillion dollars have been cited in recent years for global subsidies for fossil fuels. How are these figures calculated and why are they so different? The most commonly used methods for measuring subsidies are the price-gap approach-quantifying the gap between free-market reference prices and the prices charged to consumers-and the inventory approach, which constructs an inventory of government actions benefiting production and consumption of fossil fuels.

The fossil fuel bailout: G20 subsidies for oil, gas and coal exploration

Governments across the G20 countries are estimated to be spending $88 billion every year subsidising exploration for fossil fuels. Their exploration subsidies marry bad economics with potentially disastrous consequences for climate change. In effect, governments are propping up the development of oil, gas and coal reserves that cannot be exploited if the world is to avoid dangerous climate change.

Subsidizing Unburnable Carbon: Taxpayer Support for Fossil Fuel Exploration in G7 Nations

This report identifies billions of dollars in subsidies for fossil fuel exploration from the world's wealthiest countries. This government support for expanding oil, gas, and coal reserves continues despite a 2009 commitment by G20 countries to phase out inefficient fossil fuel subsidies, a pledge that has been repeatedly reiterated since then, including by G7 leaders in their June 2014 declaration.

Subscribe to oil and gas