Subsidies Help Oil Industry Profit More Than Ever

Business News/Analysis Opinions Policy

September 06, 2022

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by Natasha Lasky (World War Zero) In 2021, public subsidies for fossil fuels almost doubled to $700 billion, keeping a dying industry not just afloat, but thriving through a worsening energy crisis. The $697.2 billion total describes explicit subsidies, including price reductions, government funding, and tax breaks. The subsidies were meant to help consumers afford ever-increasing oil prices, but ultimately benefited Big Oil most of all. In the first six months of 2022, oil giants (BP, Shell, ExxonMobil, Chevron, and Total) made adjusted profits of nearly $100 billion.

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Researchers found that 40% of fossil fuels available for extraction from existing oil and coal fields must remain in the ground to keep warming below 2 degrees Celsius. But oil giants keep constructing new projects, many of which are estimated to emit one billion tons of carbon dioxide throughout their lifetimes, the equivalent of approximately 18 years of current global emissions. READ MORE; includes VIDEOS

Princeton dissociates from segments of fossil fuel industry (Princeton University)

2021 Support For Fossil Fuels by G-20 Nations Reached Highest Level Since 2014 (Bloomberg Philanthopies)

Biden budget takes aim at $31B in oil industry tax incentives (Politico Pro)

Biden turns rote budget into campaign-style attack on oil: President Joe Biden's proposed $6.8 trillion spending plan for 2024 would raise taxes on billionaires and corporations, prioritize clean energy and climate spending, and target tax breaks and incentives used by fossil fuel companies. (Climatewire)

Biden’s love-hate relationship with oil (Politico's Power Switch)

Rich nations pledge climate action but invest in fossil fuels --- None of the world’s largest fossil fuel producers has committed to ending its investments in the sector. Most governments continue to provide subsidies to the industry. (Politico Pro Climatewire)

G20 poured more than $1tn into fossil fuel subsidies despite Cop26 pledges – report (The Guardian)

Fossil fuel subsidies reach record as climate costs mount: Worldwide costs of fossil fuel subsidies hit $1.3 trillion in 2022, according to the International Monetary Fund. (Politico Pro Greenwire)

Deal to limit oil and gas funding abroad hinges on US: The United States and other wealthy nations are weighing a proposal that would restrict support for overseas fossil fuel projects. (E&E News Climatewire)

Excerpt from Politico Pro Climatewire: Some of the world’s biggest fossil fuel producers are continuing to invest in its production and export — setting up major barriers to desperately needed emissions cuts.

And a few of the culprits are developed countries that say they’re taking the lead on climate ambition at home, according to a new report from Climate Action Tracker, a collaboration of two groups that monitor government climate policy.

They include Australia, Canada, Norway and the United States, all countries that are continuing to invest in fossil fuel production and then sending those emissions elsewhere.

“Most major oil and gas producers are still planning to increase production and governments are still investing in new oil and gas,” said Mia Moisio, an analyst at the NewClimate Institute, which works with Climate Analytics to produce Climate Action Tracker.

The report describes what's happening as a fossil fuel "goldrush."

The report comes six months ahead of global climate talks and amid concerns that this year’s host — the United Arab Emirates — will push an agenda that will align with the interests of countries whose economies still rely heavily on oil and gas. READ MORE

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