US Subsidies Boost Expected Profits And Development Of New Oil And Gas Fields

Researchers at the Stockholm Environment Institute (Somerville and Seattle, USA) and Earth Track, Inc. (Cambridge, MA, USA) examined 16 subsidies and environmental regulatory exemptions, providing one of the first estimates of how government subsidies will affect investment decisions for new gas fields in the coming decade. Their results are published in the IOP Publishing journal, Environmental Research Letters. 

Despite repeated pledges to phase out “inefficient” fossil fuel subsidies, the United States — the world’s largest current oil and gas producer — continues to provide billions of dollars each year to the oil and gas industry through various support measures. The study not only looks at tax incentives, but it is one of the first of its kind to also account for the effects of regulatory exemptions that reduce the costs for hazardous waste and wastewater management for oil and gas producers...