...Other economists say the industry's federal subsidies are far higher. They average about $39 billion annually if items such as defense of oil lanes in the Persian Gulf, guarding domestic infrastructure like the Alaska Pipeline, and paying to maintain the nation's Strategic Petroleum Reserve are also included, says Doug Koplow, founder of Earth Track, a Boston consulting firm that analyzes natural-resource subsidies.
..."Cutting oil consumption in any significant manner means increased reliance on ethanol and other biofuels because they are easily the most cost-competitive alternative to gasoline on the market. Accordingly, it's worth noting that the president's own Department of Agriculture reports that ethanol costs about $2.53 per gallon to produce - even with the subsidies. Without them, economist Doug Koplow calculates that production costs would be at least $1 per gallon higher.
A general introduction to the issue of oil subsidies, and how reforms could benefit ethanol. It references Earth Track's work (extract below), thought makes only a passing mention of our detailed work on ethanol subsidies though released just a year prior to this article.
Extremely detailed, widely peer-reviewed, examination of subsidies to oil in the United States throughout every stage of the fuel cycle. Includes plain-language explanations of how different types of subsidy programs operate and why the are valuable to the recipient industries. This is useful background for subsidy policies even outside of the energy arena. The report includes evaluations of tax policies, direct government programs, loan subsidies, leasing arrangements, and post-closure and accident liabilities.