Skip to main content

Common Dreams. Journalism funded by people, not corporations.

There has never been—and never will be—an advertisement on our site except for this one: without readers like you supporting our work, we wouldn't exist.

No corporate influence. No pay-wall. Independent news and opinion 365 days a year that is freely available to all and funded by those who support our mission: To inform. To inspire. To ignite change for the common good.

Our mission is clear. Our model is simple. If you can, please support our Fall Campaign today.

Support Our Work -- No corporate influence. No pay-wall. Independent news funded by those who support our mission: To inform. To inspire. To ignite change for the common good. Please support our Fall Campaign today.

For Immediate Release

Contact

Press Release

Report: Trump’s “Energy Dominance” Plans Rely on Billions in Fossil Fuel Subsidies

WASHINGTON -

A new report out today by Oil Change International reveals that U.S. taxpayers continue to foot the bill for more than $20 billion in fossil fuel subsidies each year. These subsidies amount to billions of dollars wasted to prop up an industry responsible for a climate crisis that has contributed to lives lost and hundreds of billions in damages this hurricane season alone.

The report, entitled “Dirty Energy Dominance: Dependent on Denial,” lays out a comprehensive analysis of federal and state subsidies supporting the production of oil, gas, and coal. The analysis highlights some $14.7 billion in annual federal subsidies and $5.8 billion in yearly state-level incentives. As the tax plan just released by Trump and the Republican Party lays bare, protecting American families is not as important to the current leadership in Washington as handing out tax breaks to their corporate cronies.

“For members of Congress who consider themselves climate champions, eliminating the subsidies that drive fossil fuel expansion and climate pollution is a critical starting point. Every taxpayer dollar wasted subsidizing this industry takes us further from a stable climate and threatens our families with disasters made worse by climate change,” said Janet Redman, U.S. Policy Director of Oil Change International and principal author of the report. “No tax plan that leaves in place a 20 billion-dollar transfer of wealth from American taxpayers to one of the country’s most profitable and polluting industries can be considered credible.”

The new report outlines tax incentives, credits, low royalty rates, and other government measures benefiting oil, gas, and coal companies. Key findings include:

  • Fossil fuel subsidies have been defended by a Congress influenced by $350 million in campaign contributions and lobbying expenditures by the fossil fuel industry - which equates to a 8,200% return on investment.
  • The cost of annual federal fossil fuel production subsidies is equivalent to the projected 2018 budget cuts from Trump’s proposals to slash 10 public programs and services.
  • Government giveaways in the form of permanent tax breaks to the fossil fuel industry – one of which is over a century old – are seven times larger than those to the renewable energy sector.

“While the rest of the world moves toward a renewable energy future, dirty energy defenders in the Trump administration are using our taxpayer dollars to promote dangerous new fossil fuel development. Until we separate oil and state, the dirty energy money cycle of fossil fuel contributions going into Congress and oil, gas, and coal subsidies coming out will stymie our chances at revolutionizing the energy sector and staving off worsening climate disasters,” added Redman.

The report presents a number of key recommendations, including an immediate end to all tax breaks supporting fossil fuel exploration and production, halting efforts to extend and expand tax credits for unconventional fossil fuel production technologies, and rejecting campaign donations from the fossil fuel industry.

The full report “Dirty Energy Dominance: Dependent on Denial” can be found at: http://priceofoil.org/2017/10/03/dirty-energy-dominance-us-subsidies

###

Oil Change International is a research, communications, and advocacy organization focused on exposing the true costs of fossil fuels and facilitating the ongoing transition to clean energy.

'Outrageous and Shameful': Dems May Cut Paid Leave Due to Manchin's Opposition

Decrying the plan, advocacy groups vowed that "the American people are not going to allow that essential human need to be ignored and negotiated away behind closed doors."

Jessica Corbett ·


Open Letter Warns Trump's 'Big Lie' GOP Poses Existential Threat to Democracy

"Now is the time for leaders in all walks of life—for citizens of all political backgrounds and persuasions—to come to the aid of the republic."

Brett Wilkins ·


Ahead of Historic House Hearing, Fresh Big Oil Misinformation Campaign Exposed

"It's always helpful to remember that big fossil fuel companies (besides being overwhelmingly responsible for carbon pollution) are also skeevy disinformation hucksters."

Jessica Corbett ·


'Very Welcome' Progress as Iran Agrees to Restart Talks on Nuclear Deal Sabotaged by Trump

One peace advocate urged all sides to reconvene negotiations "as soon as possible and with renewed urgency" to avert "disastrous" consequences for Iran and the world.

Brett Wilkins ·


House Progressives: 'When We Said These Two Bills Go Together, We Meant It'

"Moving the infrastructure bill forward without the popular Build Back Better Act risks leaving behind working people, families, and our communities."

Andrea Germanos ·

Support our work.

We are independent, non-profit, advertising-free and 100% reader supported.

Subscribe to our newsletter.

Quality journalism. Progressive values.
Direct to your inbox.

Subscribe to our Newsletter.


Common Dreams, Inc. Founded 1997. Registered 501(c3) Non-Profit | Privacy Policy
Common Dreams Logo