This May 2011 piece (What's an Oil Subsidy?) by Nick Loris and Curtis Dubay took the issue of subsidies to the oil and gas industry head-on. I've had discussions with Heritage over a number of years on the issue of energy subsidies, though primarily those dealing with nuclear and ethanol. I hope those discussions will continue, and broad support for eliminating expensive and damaging energy subsidies will require support across the political spectrum.
Fresh off of a financial crisis that risked throwing the US into a depression, my hope was that lessons would be learned. Nothing dramatic, perhaps, but at least the basics on incentive structures in financial deals. Like when you let people bet only with somebody else's money, they are far less careful about what they bet on, and how much they put at risk. And the related issue that if you let investors take their own cash out of the game too quickly, the probability of project failure rises sharply. And finally, if the one left fronting (or guaranteeing) all the cash is you, it is tim
Just last week, the Economist magazine noted in an editorial that:
However you measure the full cost of a gallon of gas, pollution and all, Americans are nowhere close to paying it. Indeed, their whole energy industry—from subsidies for corn ethanol to limited liability for nuclear power—is a slick of preferences and restrictions, without peer. The tinkering that will follow this spill will merely further complicate it.