Subsidy Whining

Gee, they’re whining about the tax breaks given to oil and nat gas again……. and some are comparing it to wind….. mostly because wind isn’t getting their tax incentives renewed right now.  I’ve pointed out, in the past that oil doesn’t have anything to do with wind.  It’s a vapid argument and displays either their ignorance or their simply disdain for successful industries.  Either way, its stupid.  Below is only a partial list of all of the things petroleum brings us.  Source…. here.  The hilarious part is that even when one considers simply Btu produced, wind doesn’t hold a candle to oil.  But, even if it did, it’s still a stupid argument.  One doesn’t have anything to do with the other.  Wind generates electricity….. that’s it!  It doesn’t do anything else…… and while we can and to a very small extent do generate electricity with oil, it doesn’t effect the oil industry in the least.

In 2011 wind produced 119,747 thousand Megawatthours.  Petroleum coke and liquids produced 15,840 and 12,322 respectively.  To put this in perspective, total generation was 4,105,734 thousand Megawatthours .  As we can see, neither are meaningful to the electric generation industry.

Natural gas, OTOH generated 1,016,595 Megawatthours.  In electric generation alone, nat gas produced nearly 10 times wind did.  Now lets compare apples to apples.  The U.S. consumed 24,133 Billion Cubic Feet in 2010 .  There is approx. 1020 btu/cubic foot of nat gas…… so we consumed 24,615,660 billion btu of nat gas….. or 24,615 trillion btu.  What did wind do for us?  Oh, it produced 924 Trillion Btu.  Well done wind advocates!  Petroleum in the energy sector alone (as if that’s all it does)  produced 35.97 Quadrillion Btu.

Now, here’s the thing.  Even if wind could produce on par or somewhere in the same ballpark as gas, oil, or even coal, it still wouldn’t be worth near as much, because wind can only be used when the wind is blowing.  Which, renders it near useless when considering something where reliability is mandated….. such as commercial, industrial, transportation, or residential energy use.  Now, here’s one more thing to consider, electric wind generation has been going on since before 1983.  I think 30 years is long enough test run to determine if the darn things are going to be a viable option for energy generation.  It isn’t.  Why subsidize a failed industry?

Here’s some of the things petroleum brings us…….

Things Made From Oil That We Use Daily (a partial list) Agriculture • plastic ties • row cover • irrigation piping • polyethylene • polypropylene • bags and packaging • pesticides and herbicides • food preservatives • fertilizers Clothing and Textiles • ballet tights • nylon cord • everything polyester: blouses, pants, pajamas etc. • everything permanent press: shirts, dresses etc. • beads • bracelets • pantyhose • nylon zippers • plastic hangers • purses • thongs and flip flops • earrings • ribbons • fake fur • windbreakers • sandals • garment bags • shoe laces • rain coats • iron-on patches • sneakers • sweaters • sofa pillow material • tote bags • umbrellas Around the Office • ball point pens • diskettes • thermometer • Ink • computers • business card holders • copiers • waste baskets • calculators • printer cartridges • microfilm • name tags • binders • erasers • rulers • scotch tape • magic markers • telephones Sports, Hobbies and Games • backpacks • fishing lures • air mattresses • cameras • beach balls • fishing poles • hang gliders • vinyl cases • footballs • glue containers • puzzles • darts • Frisbees • golf ball and golf bags • shotgun shells • ear plugs • knitting needles • waterproof clothing • stadium cushions • earphones • yarn • kites • tennis racquets • fabric dye • decoys • lifejackets • nylon strings • face protectors • volley balls • model cars • plastic water guns • fishing bobbers • soccer balls • oil paints • parachutes • fishing cylume • light sticks • earphones • playing cards • photographs • monofilament fishing lines • diving boards • poker chips • goggles • rollerskate and skateboard wheels • whistles • guitar strings • picks • rafts • ice chests • tents • sleeping bags • pole vaulting poles • motorcycle helmets • skis, water skis • rubber cement • plastic flowerpots • hot tub covers • sails • snorkels • monkey bars • photo albums • wet suits • flippers • tennis balls • boats • insulated boots Infants and Children • acrylic toys • baby oil • laundry baskets • waterproof pants • baby aspirin • bath soap • mittens • pacifiers • baby blankets • bibs • rattles • doubleknit shirts • baby bottles • disposable diapers • baby shoes • teething rings • nipples and binkies • dolls • stuffed animals • baby lotion Sports, Hobbies and Games • allergy medication • cotton-tipped swabs • inhalers • liquid Pepto-Bismol • aspirin • first aid cream • lancets • pill cases • band aids • first aid kits • latex gloves • prescription bottles • burn lotion • glycerin • mosquito spray • rubbing alcohol • chap stick • heart valve replacement • nasal decongestant • surgical tape • syringes • Vaseline • antiseptics • hearing aids • anesthetics • artificial limbs • eyeglasses and sunglasses • antihistamines • cortisone • vaporizers • denture adhesives • laxatives • Bactine • oxygen masks • stethoscopes • prescription glasses • cough syrup • hearing aids Kitchen and Household • vinegar bottles • egg cartons • meat trays • trash bags • breadboxes • freezer containers • melamine dishware • tumblers • cake decorations • jars • microwave dishes • utensils • candles • freezer bags • milk jugs • vacuum bottles • coasters • gelatin molds • nylon spatulas • wax paper • coffee pots • ice cream scoops • oven bags • mops • drinking cups • ice trays • plastic containers • fabric softener • detergent bottles • plastic table service • drain stoppers • dish drainers • lunch boxes • pudding molds • sponges • dish scrubbers • brushes • baggies • drinking straws • Styrofoam • paper cup dispensers • measuring cups • Teflon coated pans • table cloths • refrigerator shelves Beauty • cologne • hair brushes • lipstick • permanent wave curlers • perfume • hair color • mascara • petroleum jelly • comb • foam rubber curlers • shampoo • contact lenses and cases • hair spray • hand lotion • shaving foam • hair dryers • shoe inserts • dentures • body lotion • face masks • skin cleanser • deodorants • moisturizing cream • soap holders • disposable razors • leather conditioner • mouthwash • sunglasses • facial toner • lens cleanser • nail polish • sunscreen • tooth brushes • toothpaste tubes • vitamins • synthetic wigs • bubble bath • soap capsules Furnishings • carpet padding • Naugahyde • Venetian blinds • TV cabinets • extension cords • picture frames • flocked wallpaper • shower doors • Formica • refrigerator lining • vinyl wallpaper • curtains • kitchen carpet • shag carpet • welcome mats • fan blades • lamps • shower curtain • patio furniture • swings • linoleum • upholstery • rugs Building and Home • caulking material • light switch plates • plungers • faucet washers • clotheslines • measuring tape • polyurethane stain • water pipes • electric saws • paintbrushes • propane bottles • wood floor cleaner/wax • vinyl electrical tape • plastic pipe • shingles (asphalt) • light panels • garden hoses • plastic wood spackling paste • awnings • glazing compound • Plexiglas • spray paint • enamel • epoxy paint • artificial turf • folding doors • floor wax • glue • house paint • paint rollers • toilet seats • water pipes • putty • solvents • roofing material • plywood adhesive • sockets • propane Automotive • antifreeze • flat tire fix • street paving (asphalt) • car battery cases • coolant • motor oil • tires • loud speakers • bearing grease • sports car bodies • traffic cones • car enamel • brake fluid • dashboards • windshield wipers • visors • car sound insulation • oil filters • car seats • convertible tops • fan belts • gasoline Miscellaneous • ash trays • dog food dishes • toolboxes • CDs and DVDs • balloons • dog leashes • tape recorders • synthetic rubber • bubble gum • dog toys • flashlights • nylon ropes • bungee straps • flight bags • disposable lighters • cassette player • flea collars • flutes • lighter fluid • cigarette cases • electric blankets • tool racks • name tags • cigarette filters • ammonia • newspaper tubes • calibrated containers • insect repellent • phonograph records (vinyl) • crayons • ice buckets • dyes • pillows • credit cards • flashlights • fly swatters • plastic cup holders • dice • movie and camera film • k-resin • rain bonnets • luggage • video cassettes • charcoal lighter • rayon • safety glasses, gloves, hats • shoe polish • signs • cassette tapes • toys • watch bands • waterproof boots • shopping bags • bedspreads • checkbooks • covers • tobacco pouches • clothes hangers • flea collars • flavors • masking tape • safety flares • flags • butane

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5 Responses to Subsidy Whining

  1. glenncz says:

    But do big oil subsidies even exist??
    http://www.lvrj.com/opinion/big-oil-subsidies-129608728.html
    I’ve read a few articles that the so-called subsidies are simply deduction similar that every single company gets for equipment and overhead. These are subsidies are simply deduction for money spent to run their business. Also, when because many of our oil companies create and sell their products in foreign countries, they are taxed in those countries. They are not double taxed in this country on taxes they already paid. Again, these same rules exist for all industries. To my knowledge there isn’t any of these Gov’t will pay 33% or even much, much more of the capital costs in direct tax credits like they do for wind/solar. Of course, most greenies hardly understand what a common business deduction is, let a lone a tax credit. The understand of a tax credit is completely beyond their understand.

    • suyts says:

      You’re right Glenn, much of the “subsidies” are typical write offs all other companies get. And, you’re right, trying to talk economics and business with a green is next to impossible.

    • philjourdan says:

      Thank you Glenncz – It is a point that is lost on liberals – Oil does not get subsidies. At BEST, they get advantageous tax breaks. But anyone who has any accounting training at all (and I have had some), know that there are no real breaks. It is just allowing oil companies to deduct expenses from revenues BEFORE paying taxes on the net income.

  2. miked1947 says:

    A short list there, I see. 😉

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