Obama calls for Congress to vote on oil subsidies

"A day after Republicans signaled possible compromise with the White House on energy issues, President Barack Obama called Thursday for Congress to vote in the coming weeks on ending billions of dollars in subsidies for the oil industry."

http://www.cnn.com/2012/03/01/politics/obama-energy/index.html?hpt=hp_t1

This was brought up during the budget process as well, and it looks like it's going to be brought into the light again. Do you think these subsidies should end, or should they continue?

For what it's worth, McConnell is framing ending these subsidies as a tax increase (which Republicans by and large oppose point blank).

Senate Republican leader Mitch McConnell of Kentucky rejected Obama's call to end the oil subsidies.

"If someone in the administration can show me that raising taxes on American energy production will lower gas prices and create jobs, then I will gladly discuss it," McConnell said in a statement. "But since nobody can, and the president doesn't, this is merely an attempt to deflect from his failed policies."McConnell

Honestly, I dont know enough about how the subsidies affect things. Does ending them mean 5$ gas? I guess it would stimulate the drive for alternative energy but it may also dampen any economic recovery. I just dont know.

Honestly, I dont know enough about how the subsidies affect things. Does ending them mean 5$ gas? I guess it would stimulate the drive for alternative energy but it may also dampen any economic recovery. I just dont know.

sonicare

Well in that case, end them.

Last I checked, oil companies are doing just fine on their own. No need for a subsidy. Maniacc1

I dont think some of the most profitable companies of the world (if not the most) need to get free government money....

I dont think some of the most profitable companies of the world (if not the most) need to get free government money....

BossPerson

See thats logic, we are logical rational people... Republicans take advantage of social issues to get elected so they can help the 1% and Big Oil... Their only logic is reelection.

[QUOTE="BossPerson"]

I dont think some of the most profitable companies of the world (if not the most) need to get free government money....

Banjo_Kongfooie

See thats logic, we are logical rational people... Republicans take advantage of social issues to get elected so they can help the 1% and Big Oil... Their only logic is reelection.

I'm not a huge fan of subsidies in general.

We give subsidies to green energy, why not the same to the oil industry?

The misconception is that we're actually giving them money, which we aren't. They're getting tax breaks on certain things(like equipment).

So yes, the billion dollar price tag sounds scary at first, but you have to take it in context. It's money that we could be getting if the subsidies were ended and I don't think that's a good idea.

We give subsidies to green energy, why not the same to the oil industry?

airshocker

B/c two wrongs don't make a right; they both increase the spending level.

B/c two wrongs don't make a right; they both increase the spending level.

coolbeans90

Yet one has a legitimate shot at keeping gas prices down, the other does not.

We give subsidies to green energy, why not the same to the oil industry?

The misconception is that we're actually giving them money, which we aren't. They're getting tax breaks on certain things(like equipment).

So yes, the billion dollar price tag sounds scary at first, but you have to take it in context. It's money that we could be getting if the subsidies were ended and I don't think that's a good idea.

airshocker

We give subsidies to green energy, why not the same to the oil industry?

The misconception is that we're actually giving them money, which we aren't. They're getting tax breaks on certain things(like equipment).

So yes, the billion dollar price tag sounds scary at first, but you have to take it in context. It's money that we could be getting if the subsidies were ended and I don't think that's a good idea.

airshocker

There are a number of reasons why they aren't needed, especially for big oil. Aside from them making record profits, it gives them an unfair advantage. They don't need those huge tax breaks especially when America has such huge financial problems...BossPerson

An unfair advantage over what? Every US big oil company gets those tax breaks.

Having gas prices increase will cause some pretty huge financial problems as well.

We give subsidies to green energy, why not the same to the oil industry?

The misconception is that we're actually giving them money, which we aren't. They're getting tax breaks on certain things(like equipment).

So yes, the billion dollar price tag sounds scary at first, but you have to take it in context. It's money that we could be getting if the subsidies were ended and I don't think that's a good idea.

airshocker

Maybe because Green Energy is an industry that needs it while Big Oil obliterates our environment and would be profitable without subsidies.

I can not believe you would even compare the two... OH WAIT, its airshocker... I am not stunned in that case.

[QUOTE="coolbeans90"]

B/c two wrongs don't make a right; they both increase the spending level.

airshocker

Yet one has a legitimate shot at keeping gas prices down, the other does not.

The difference between green energy and the oil industry is that green energy is a young industry that is just beginning to develop, whereas the oil industry is one of the most profitable industries in the world. It's very hard, if not impossible, for new industries like green energy to become profitable on their own without public investment.-Sun_Tzu-

The real difference is cheaper gas is tangible with the oil subsidies. We get no benefit from green energy subsidies at the moment. Except over-priced electric cars, if you can call that a benefit.

Gas prices have little to do with the subsidies. The oil is sold on the international market anyways and even if they did save money, they wouldn't lower their profit margin to pass the 'savings' on the consumer.BossPerson

Yet they would pass it on anyway.

[QUOTE="-Sun_Tzu-"]The difference between green energy and the oil industry is that green energy is a young industry that is just beginning to develop, whereas the oil industry is one of the most profitable industries in the world. It's very hard, if not impossible, for new industries like green energy to become profitable on their own without public investment.airshocker

The real difference is cheaper gas is tangible with the oil subsidies. We get no benefit from green energy subsidies at the moment. Except over-priced electric cars, if you can call that a benefit.

Oil subsidies won't lead to cheaper gas.....supply of gas is rising anyways, but yet, gas is still rising in price. If you hate high gas prices, blame excessive speculation.BossPerson

By cheap I meant current prices. Which aren't cheap, but cheaper than what we'd have without them.

*shrugs* Oil companies are on record of saying that they don't require the subsidies. We could put that 20 billion towards paing off the national debt.

[QUOTE="coolbeans90"]

B/c two wrongs don't make a right; they both increase the spending level.

airshocker

Yet one has a legitimate shot at keeping gas prices down, the other does not.

Lowers prices by paying for gas indirectly via taxes, though.

Green energy needs the subsidies so that the industry can develop and become profitable. The oil companies don't have any trouble making money. Plus we need an alternate energy source before we run out of oil, while that day is very far away I'd rather get a viable alternate energy source sooner rather than later.Moriarity_

[QUOTE="coolbeans90"]

B/c two wrongs don't make a right; they both increase the spending level.

airshocker

Yet one has a legitimate shot at keeping gas prices down, the other does not.

*shrugs* Oil companies are on record of saying that they don't require the subsidies. We could put that 20 billion towards paing off the national debt.

Serraph105

Or we could use the money to help the homeless, orphans, single moms, people who need the money.

[QUOTE="BossPerson"]Oil subsidies won't lead to cheaper gas.....supply of gas is rising anyways, but yet, gas is still rising in price. If you hate high gas prices, blame excessive speculation.airshocker

By cheap I meant current prices. Which aren't cheap, but cheaper than what we'd have without them.

They should be ended, but the result would be a massive increase in the price of gas as the oil speculators shoot the prices up to unholy amounts.

Sad that is has come to this.

[QUOTE="BossPerson"]Gas prices have little to do with the subsidies. The oil is sold on the international market anyways and even if they did save money, they wouldn't lower their profit margin to pass the 'savings' on the consumer.airshocker

Yet they would pass it on anyway.

[QUOTE="sonicare"]

Honestly, I dont know enough about how the subsidies affect things. Does ending them mean 5$ gas? I guess it would stimulate the drive for alternative energy but it may also dampen any economic recovery. I just dont know.

mattbbpl

Supply and demand stopped influencing the price of gas lone time ago. At least for the US.

[QUOTE="Serraph105"]

*shrugs* Oil companies are on record of saying that they don't require the subsidies. We could put that 20 billion towards paing off the national debt.

Banjo_Kongfooie

Or we could use the money to help the homeless, orphans, single moms, people who need the money.

Aww isn't this cute. You're setting it up so a response would make the person look terrible.

Gotta love it.

[QUOTE="-Sun_Tzu-"]The difference between green energy and the oil industry is that green energy is a young industry that is just beginning to develop, whereas the oil industry is one of the most profitable industries in the world. It's very hard, if not impossible, for new industries like green energy to become profitable on their own without public investment.airshocker

The real difference is cheaper gas is tangible with the oil subsidies. We get no benefit from green energy subsidies at the moment. Except over-priced electric cars, if you can call that a benefit.

Lowers prices by paying for gas indirectly via taxes, though.

coolbeans90

Everyone else gets welfare, might as well get some of it for me. xD

What people need to realize is that there is no supply and demand for oil in the USA right now. Between the oil speculators and the oil subsidies, people are just getting stupidly rich without having any shred of competition in the market.

These companies have been using politicans for decades to keep it that way. They'll say it's a market economy, but a market economy isn't ruled by a group of people at Wall St. who can jack up oil prices just because they feel like it.

[QUOTE="Banjo_Kongfooie"]

[QUOTE="Serraph105"]

*shrugs* Oil companies are on record of saying that they don't require the subsidies. We could put that 20 billion towards paing off the national debt.

Wasdie

Or we could use the money to help the homeless, orphans, single moms, people who need the money.

Aww isn't this cute. You're setting it up so a response would make the person look terrible.

Gotta love it.

What people need to realize is that there is no supply and demand for oil in the USA right now. Between the oil speculators and the oil subsidies, people are just getting stupidly rich without having any shred of competition in the market.

These companies have been using politicans for decades to keep it that way. They'll say it's a market economy, but a market economy isn't ruled by a group of people at Wall St. who can jack up oil prices just because they feel like it.

Wasdie

[QUOTE="mattbbpl"][QUOTE="sonicare"]

Honestly, I dont know enough about how the subsidies affect things. Does ending them mean 5$ gas? I guess it would stimulate the drive for alternative energy but it may also dampen any economic recovery. I just dont know.

Blue-Sky

Supply and demand stopped influencing the price of gas lone time ago. At least for the US.

So now they are 'cheap' only because they got so used getting these subsidies? Its almost like the oil companies are holding us hostage then by saying if you take away my subsidies i'll raise the price even though im making record profits? I know you are an absolute republican, but at least admit 'government spending' on the oil companies is wrong......Anyways, them saving money will go little way to lowering the price of gas. Unless every oil company in the world got subsidies, the price of gas will continue to rise...BossPerson

What does me being a republican have to do with admitting subsidies are wrong? Of course they're wrong, but we're faced with this: Gas prices will go up if we get rid of them.

Oil subsidies really don't impact gasoline prices one way or the other. And green energy subsidies are an investment, and since they are an investment obviously there isn't going to be that much of a short-term benefit. But since you brought up electric cars, it's because of federal tax credits that make electric cars affordable to middle class Americans. -Sun_Tzu-

Affordable my ass. :lol:

[QUOTE="BossPerson"]So now they are 'cheap' only because they got so used getting these subsidies? Its almost like the oil companies are holding us hostage then by saying if you take away my subsidies i'll raise the price even though im making record profits? I know you are an absolute republican, but at least admit 'government spending' on the oil companies is wrong......Anyways, them saving money will go little way to lowering the price of gas. Unless every oil company in the world got subsidies, the price of gas will continue to rise...airshocker

What does me being a republican have to do with admitting subsidies are wrong? Of course they're wrong, but we're faced with this: Gas prices will go up if we get rid of them.

You should do some research on oil markets. Oil prices will not rise because of subsidies directly, oil will rise anyways. And you being a republican means you should be against government spending...BossPerson

I'm not against government spending when it's beneficial.

[QUOTE="airshocker"]

[QUOTE="BossPerson"]So now they are 'cheap' only because they got so used getting these subsidies? Its almost like the oil companies are holding us hostage then by saying if you take away my subsidies i'll raise the price even though im making record profits? I know you are an absolute republican, but at least admit 'government spending' on the oil companies is wrong......Anyways, them saving money will go little way to lowering the price of gas. Unless every oil company in the world got subsidies, the price of gas will continue to rise...BossPerson

What does me being a republican have to do with admitting subsidies are wrong? Of course they're wrong, but we're faced with this: Gas prices will go up if we get rid of them.

[QUOTE="BossPerson"][QUOTE="airshocker"]

What does me being a republican have to do with admitting subsidies are wrong? Of course they're wrong, but we're faced with this: Gas prices will go up if we get rid of them.

mattbbpl

What people need to realize is that there is no supply and demand for oil in the USA right now. Between the oil speculators and the oil subsidies, people are just getting stupidly rich without having any shred of competition in the market.

Wasdie

to go further in proving you are right about the supply and demand of oil, we actually use less oil now than we did in 07 yet prices are nearly as high as they've ever been.