Subsidizing oil companies in usa Essay Example | Topics and Well Written Essays - 750 words

Subsidizing fossil inunct companies in usa - Essay ExamplePerhaps, one of the greatest debates has touch the viability of these oil subsidies. This issue presents a conflict of interest whether the government should support the American taxpayers (the public) or the oil companies seems to be a matter of debate. The primary reason why these subsidies should be abolished is that the oil intentness has not reached a state where it is making broad profits therefore, it no longer remains the infant industry it once used to be. According to one article, the effect of providing oil subsidies to the already rich nations such as U.S is that of making the richest countries even richer. Profits beating to $80 billion were made cumulatively by three of the largest oil companies in the U.S in 2011 (Slack). Thus, because these oil companies have a huge turnover and atomic number 18 largely self-sufficing there seems minute point in the continuance of oil subsidies. It is believed that the money allocated to these oil subsidies should be invested in institutions which lack funds, such as the provision of old-age homes, medical facilities etc. Also, the oil companies are already been minded(p) the incentive to increase output by the rising global oil prices therefore, there remains little role that subsidies can play. This also means that the taxpayers are being effectively taxed twice which means that they are paying a premium centre for getting the fuel and also having their taxes being used as subsidies for these companies (Cooper and Weisman). According to one estimate, one of the companies used as much as $225,000 per day to write aside majority of the cost of a sunken oil rig during the Gulf oil spill (Koceiniewski). Considering the huge amounts, the subsidies are rejected on the grounds of being unfair to the American taxpayers as an exorbitant amount of their money is being used up in them. There seems to be a boom in the American oil industry lately. The o utput of domestic oil has reached its highest levels since the past fewer years. Since the past few years, the American oil industry has grown self-sufficient in that the domestic companies are producing more than the amount of oil imported by the U.S (Slack). Also, there have been political efforts to enhance oil production, for instance, by allotting bring in to oil companies for production. Furthermore, the most obvious reason why oil subsidies in the U.S should be discontinued is that it would cede up money and resources for public use. These resources could instead be invested in green and sustainable initiatives which would mean conclusion alternate sources of energy that is environmental friendly and efficient (Slack). These initiatives are both politically and environmentally possible as research indicates massive public support for investment in green initiatives. The public is in favor of giving tax incentives to companies who would produce electricity from wind, sola r and water sources (Slack). Oil subsidies are yet fulfilling a short term need in the sense that there is little investment in the future. This short-termism is clearly inappropriate as it is the need of the hour to invest in finding alternate, renewable energy sources such as wind and solar power. This is linked to the argument that the discontinuance of oil subsidies would go forth in a greener environment as greenhouse emissions would be reduced due to lower resulting output. Thus, the predilection of oil subsidization is self-contradictory in that it