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- Jun 13, 2009
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The federal government subsidizes the oil industry with numerous tax breaks and government protection programs worth that amounts to $2 a gallon & billions of dollars annually. These benefits are designed to ensure that domestic oil companies can compete with international producers and that gasoline remains cheap for American consumers.
Our dependency on oil from countries that are either politically unstable or at odds with the U.S. subjects the American economy to occasional supply disruptions, price hikes, and loss of wealth, which, according to a study commissioned by the U.S. Department of Energy, have cost us more than $7 trillion present value dollars over the last 30 years. That is more than the cumulative cost of all of the wars fought by the U.S. since the Revolutionary War. The transfer of wealth to oil-producing countries - $1.16 trillion over the past thirty years - significantly increased our trade deficit. The Department of Energy estimates that each $1 billion of trade deficit costs America 27,000 jobs. Oil imports account for almost one-third of the total U.S. deficit and, hence, are a major contributor to unemployment.
To ensure access to the oil that fuels our economy, the U.S. is forced to maintain continuous presence in the Middle East. This presence has been a rallying cry for anti-Americanism and Islamic fundamentalism.
The cost of securing our access to Middle East oil - deploying U.S. forces in the Persian Gulf, patrolling its water and supplying military assistance to Middle East countries - is estimated at $50 billion per year, which adds additional 56 cents to each gallon of gasoline we purchase.
Political instability in the region breeds wars and embroils the U.S. in costly military actions. These wars add an aditional $1.13 per gallon.
Federal government oil subsidizes = $2.00 a gallon.
Cost of securing our access to Middle East oil = $0.56 a gallon.
Cost of wars caused by securing our access to Middle East oil = $1.13 a gallon.
Total subsidizes per gallon of gasoline = $3.69
True Cost of U.S. Gasoline is $15.14 per Gallon, Report Says
Ethanol Subsidies as of January 1, 2012 = $0.00
Chicken shit oil companies are afraid to compete with ethanol on a level playing field. When Henry Ford started manufacturing the automobile Ethanol was the fuel source for those vehicles. Standard Oil Company owner John D. Rockefeller bought congress & had them enact Prohibition to rid the US of his Ethanol competition. That is the only way Big Oil was able to take the automobile fuel market away from Ethanol.
Our dependency on oil from countries that are either politically unstable or at odds with the U.S. subjects the American economy to occasional supply disruptions
Maybe we should drill in ANWR and import more from Canadian oil sands?
oil companies are afraid to compete with ethanol on a level playing field. When Henry Ford started manufacturing the automobile Ethanol was the fuel source for those vehicles.
I wonder which is easier, producing enough ethanol for a few hundred cars or a few hundred million?
Simply put Firefly is a whack job.