Oil & Gas Group
This group brings together those who are interested in topics around oil and gas exploration, drilling, refining, and processing.
Video
Can you believe the world continues to subsidize fossil fuels?
If you’ve lived long enough that revelation probably isn’t surprising, but it’s nonetheless disappointing.
The World Bank puts the direct or explicit subsidies for coal, oil, and gas in 2021 at $577 billion. That’s twice the subsidies for renewable energy and almost six times higher than the climate funding promised by wealthy countries.
Big oil has sustained political influence and many local economies remain dependent on fossil fuel industries. This is despite the windfall profits Big Oil has reaped since inflation reared its ugly head. They chalk it up to productivity improvements, but that’s a load of crap. Spend two minutes reviewing their financials and it’s obvious that the record profits are coming from prices that are higher than current levels of inflation warrant.
And fossil fuels aren’t the only carbon emitters that continue to be subsidized. Agriculture also enjoys significant subsidies. You might be thinking - who would argue with subsidizing farmers? Well, first, the idea of the small family farm died a long time ago. Most farming is now big business. Sure, some small family farms remain. However, it would be easy to carve them out and assist their survival.
More alarming is a 2021 UN Agency report which indicated that almost 90% of agriculture subsidies harmed people’s health and the climate. One reason cited was that subsidized fertilizer caused overuse.
I have no idea if the UN’s 90% assessment is accurate, but it’s clear that the continuation of legacy subsidies is counterproductive. Unfortunately, I don’t see it changing. Both the fossil fuel and agriculture industries have strong lobbying efforts. And given that the average voter is focused on other issues, I don’t see a short-term path that would alter their political influence. It will only change if the environment rises closer to the top of political issues.
More Posts
Why this prediction is idiotic and counterproductive
Why does the climate community feel compelled to make predictions involving timeframes? Virtually none can be proven with certainty, and they only serve to provide ammunition to those who chose to deny a problem exists in the first place.
Hydrogen Ports Namibia | Europe
Hydrogen Ports , Namibia | Europe
Is nuclear rising from the dead?
Nuclear has many distractors, but sentiment is shifting. And the level of activity in keeping existing plants running and developing new ones also is rising. But has anything changed to indicate nuclear can or should play a role moving forward?
German Norwegian Energy Co-operation | Value Chain
German Norwegian Energy Co-operation | Value Chain
Get Published - Build a Following
The Energy Central Power Industry Network® is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.
If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.
Sign in to Participate