• 9 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 11 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 13 hours Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 14 hours EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 16 hours Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 17 hours Aramco Says No Plans To Shelve IPO
  • 3 days Trump Passes Iran Nuclear Deal Back to Congress
  • 3 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 4 days Renewable Energy Startup Powering Native American Protest Camp
  • 4 days Husky Energy Set To Restart Pipeline
  • 4 days Russia, Morocco Sign String Of Energy And Military Deals
  • 4 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 5 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 6 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 6 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 6 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
  • 7 days Saudi Arabia Ups November Oil Exports To 7-Million Bpd
  • 7 days Niger Delta State Looks To Break Free From Oil
  • 7 days Brazilian Conglomerate To Expand Into Renewables
  • 7 days Kurdish Independence Could Spark Civil War
  • 7 days Chevron, Total Waiting In The Wings As Shell Mulls Majnoon Exit
  • 7 days The Capital Of Coal Is Looking For Other Options
Alt Text

Footloose Iraq Cannibalizes Saudi Market Share

OPEC’s de-facto leader Saudi Arabia…

Alt Text

The Next Big Digital Disruption In Energy

Blockchain technology is transforming the…

Alt Text

The Energy War That Erdogan Is Winning

The Turkish Republic of Northern…

Environmental Finance

Environmental Finance

Environmental Finance is still the only independent global magazine offering comprehensive coverage of the financial impact of environmental issues on the business community.  Leading industry…

More Info

This Year it is Fossil Fuels Turn to Receive the Majority of DOE Funding

The renewable energy and energy efficiency sectors received most of the US federal government’s $24 billion in energy subsidies last year, but fossil fuels will win out this year as several key tax breaks for renewables have expired.

Preferential tax treatment accounted for $20.5 billion, or about 85%, of federal support for developing and producing fuel and energy technologies in 2011, while Department of Energy (DOE) spending programmes comprised nearly $3.5 billion, or 15%, according to a report by the non-partisan Congressional Budget Office.

In 2011, a total of $13.9 billion, or 68% of the energy-related tax preferences, was directed toward renewable energy, while $2.1 billion, or 10%, was spent on energy efficiency initiatives. This was broadly in line with the support granted in 2010.

But four major tax breaks for the renewable energy and energy efficiency sectors, accounting for 60% of the total cost of their preferential tax treatments, have already expired and the production tax credit for wind is scheduled to expire by the end of 2012, the report noted.

For example, the Section 1603 Treasury grant programme, which sunset on 31 December, had a total cost of about $3.9 billion last year, the report stated. A credit for energy-efficiency improvements to existing homes had a total cost of about $1.5 billion and also expired at the end of 2011.

Only four major energy tax breaks are permanent: three for fossil fuels and one for nuclear energy, and they were valued at $3.4 billion last year, according to the report. President Barack Obama has repeatedly asked Congress to eliminate billions of dollars in subsidies for the oil and gas sector.  

But preferential tax treatments are generally an inefficient way to reduce the environmental costs of producing and consuming energy because they may reward businesses for investments or actions they intended to take anyway, and they only target specific technologies that may not be the least expensive, according to the report.

“The most direct and cost-effective method for addressing that problem would be to levy a tax on energy sources that reflects the environmental and other costs associated with their production and use,” the report stated.

Of the $3.5 billion spent by the DOE in 2011, about $3.3 billion went to direct investments, with 54% of these funds divided equally between renewable energy and efficiency programmes. In comparison, 23% was spent on nuclear energy programmes and 10% was directed toward fossil fuel R&D. The rest of the DOE funds were spent on loan programmes.

By. Gloria Gonzalez

Source: Environmental-Finance




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News