Iowa View: Big Oil Thrives on an Unfair 'Century of Subsidies'

Business News/Analysis, Opinions, Policy

December 20, 2012

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by Monte Shaw (Des Moines Register) …The issue of fueling choice is in the news again because the American Petroleum Institute recently called for the complete repeal of the renewable fuel standard, one of the most successful U.S. energy policies of the last forty years.
In announcing their position, the American Petroleum Institute stated: “API supports full repeal of the RFS. We support free market principles over government mandates.”
Several politicians have echoed this line, using phrases like “let the market decide” and “the government shouldn’t pick winners and losers” to attack renewable fuels.
The problem is that line of reasoning is simply not based on fact. The fact is, no industry in American history has benefited — and continues to benefit — from federal government subsidies and protections more than petroleum.
… Today, the only liquid transportation fuels receiving tax subsidies are made from oil.
… In other words, federal law requires that the vast majority of American motorists use fuels that are a minimum of 85 percent petroleum.
That is a federal petroleum mandate.
… Big Oil’s actions do not reflect a commitment to free market principals. Rather, their actions reflect a reliance on a big business-big government partnership to limit consumers’ fuel choices. READ MORE and MORE ( NU Journal)

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