Get the Energy Sector off the Dole

[lafinjack]

Why ending all government subsidies for fuel production will lead to a cleaner energy future-and why Obama has a rare chance to make it happen.Last September, President Obama promised that the cornerstone of his legislative program for 2011 would be to set an energy policy “that helps us grow at the same time as it deals with climate change in a

Comments

[luomo]

Obama has a rare chance to make it happen

i've heard that one before.

[carmy_w]

I think this would be a good idea, especially considering the latest profit figures released from energy companies. They don't need subsidies,not if they are making record profits.

But I don't think it has a snowball's chance in Hell of it actually happening.

[tmlforsyth]

Well, the margins should also be considered, but even if the companies were barely breaking even, this would be a great idea. I am pretty anti-subsidy, so I'd applaud Obama if he gutted them. Of course, we shall see what happens, but I really hope President Obama initiates that and calls on Boner (sp) to do his part, maybe adding a few more subsidy slashes in compromise.

[carmy_w]

LOL at Boner; this is exactly how I pronounce Boehner in the back of my mind! (shame on me!)

[tmlforsyth]

I find his emotions make him unfit for the job. My Congressman is Anthony Wiener, and when he speaks at High School graduations, he lets kids get all the laughing out of their systems, before he speaks. I want a referendum to legally change his name from Anthony to Oscar Maier.

[fenris_lorsrai]

About the only one I would be leary of cutting totally are some of the loan guarantees for very long term projects with delayed payouts. Some of the projects are SO long range that its very unlikely that most private firms would back a loan that large over that long term while the government can because it has, effectively, economies of scale. it's so big it can hold something that big on the books for a long time without it really making a dent in its finances.

There's not a lot of things that would fall in that category, but short sightedness has been the bane of energy policy for decades, so leaving that door open for projects that really involve VISION, seems like a wise move. It should basically be the loan of last resort after private equity forms with shorter time tables have already rejected it.

[tmlforsyth]

I remember back in my Economics classes that in certain cases, a certain project should continue when the status quo changes, because the benefit is marginally better than the remaining costs. I would agree that those projects should, but that's it.