But the subsidies, as you just quoted, are provided for "conflicting" purposes, which often have the effect of effectively wasting a **** of a lot of money in those industries on things which aren't as productive.
Excellent. No more breaks for production and no more breaks to slow production. Cut them out and money saved!
Oil and gas companies are allowed to write off many of their capital costs immediately, and many can take deductions for so-called "percentage depletion"--which has no connection with actual expenses. The purpose of these tax subsidies is to encourage domestic oil and gas production
We really don't spend subsidies paying oil companies to drill for more oil.
You'll have to excuse me if I don't just take your usual blather at face value since you're so often wrong about so many things. By all means, show me some compelling evidence (note: compelling) and we can talk. Until then, not really interested in your ideologically driven apologies for the money we waste on the oil & gas industry.
Edit: Just for some additional reading, here's eleven gas/oil subsidies
Obama wants to eliminate. That's not all of the gas/oil subsidies, just a select group. Your notion that...
You previously wrote:
Except it's more like "Oh. you found oil in that field? Well you can't drill there because it's a um... protected area! Yeah... That's the ticket. Um... There's got to be some rare animal or topography on that land which means you can't drill there. But here's some money so you can look in these other areas, but you have to let us know if you find anything there too. Good luck!".
That's basically how oil and gas subsidies work right now
...is more accurately expressed as...
6. Geological and geophysical expenditures. The Energy Policy Act of 2005 created this tax subsidy, which allows companies to deduct the costs associated with searching for oil, recovering the costs over a two-year period. The administration expects that scaling back the amortization period to seven years would produce budget savings of about $1.1 billion over 10 years.
The actual cost per year for the subsidy is around $220mil per year according to The Friends of the Earth
report who I doubt is making the numbers look smaller than they should be.
So out of $41 billion a year
in gas/oil subsidies, something like 0.5% of it is in subsidies for the additional exploration you claim is "how oil and gas subsidies work right now". Heck, let's say they were way off and call it an even 1%. Yay. Corrected numbers and sources Edited, Mar 23rd 2011 8:21pm by Jophiel