Big Oil gets billions of taxpayers’ money


This 2017 video from the USA says about itself:

The Cost of Fossil Fuel Subsidies

Understanding how subsidies affect fossil fuel production is crucial to tackling climate change.

This video looks at the latest research into the impact subsidies and support have on the fossil fuel industry, the effect on oil prices and how things may change going forward.

The latest data on US fossil fuel subsidies along with the cost of subsidies and the impact of fossil fuel subsidies are examined and reported. Whilst much discussion on the impact of fossil fuel support and subsidies recently has been on the coal market, the oil and gas subsidies are equally as important. Total US fossil fuel subsidies matter as they are crucially important for climate change. The most recent numbers for fossil fuel subsidies 2016 show that over $300bn is spent annually.

Translated from Daphné Dupont-Nivet and Belia Heilbron in Dutch weekly De Groene, 1 July 2020:

European Union countries support the fossil fuel sector with 137 billion a year …

Henk Kamp is sure: “Fossil fuels are not subsidized in the Netherlands, not even through fiscal measures,” the then Minister of Economic Affairs told the House of Representatives five years ago. The reason was a report by the International Monetary Fund (IMF) that showed that worldwide $ 5300 billion is involved in fossil subsidies. Not from the Netherlands, he thought. His successor Eric Wiebes said it just as clearly in the summer of 2017: “There is no policy to support the fossil sector in particular.” …

The Netherlands has a hodgepodge of tax measures that favour the fossil fuel sector.

For example, the tax exemption on kerosene in aviation and shipping accounts for about 3.5 billion subsidies per year. In addition, there are tax advantages for energy use in greenhouse horticulture and big consumers such as the fossil fuel industry themselves have to pay less energy tax than households. It is less known that the Dutch government provides insurance with which oil refineries are constructed in Kuwait and Oman. …

While parliament is waiting for the inventory, support for fossil fuels is being expanded. Eg, Wiebes has now prepared a bill to expand and increase the investment deduction for the extraction of gas in the North Sea, from 25 to 40 percent. In this way, the Netherlands must be able to compete again with the United Kingdom and Norway, which previously implemented the increase. …

In addition to its activities in Kuwait, the Netherlands supports the installation of oil platforms for the Mexican state oil company Pemex with nearly two hundred million euros, and more than 250 million guarantees for the construction of a new bulk terminal for oil on the coast of Oman, in a nature reserve with protected animal species including four species of sea turtles and the Arabian humpback whale. …

Of all [Dutch taxpayer subsidized] energy projects, 98 percent of the money went to fossil fuel and only two to renewable. …

That does not fit with the climate goal of “Paris” [climate agreement], the Advisory Council on International Affairs, the independent advisory body for government and parliament on international issues, said in July last year. The Council emphasizes that “subsidies, export credits and tax money are currently used for international trade and investment in fossil fuels” …

However, with 1.5 billion euros a year, the Netherlands provides more aid to the fossil fuel industry through export credit insurance than France, Germany or Russia.

2 thoughts on “Big Oil gets billions of taxpayers’ money

  1. Pingback: Saving lions in Kenya, video | Dear Kitty. Some blog

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