Obama Proposes Elimination of Oil, Gas & Coal Subsidies

President Obama is proposing to:

Eliminate more than $2.7 billion in tax subsidies for oil, coal and gas industries. This step is estimated to generate more than $38.8 billion dollars in revenue for the federal government over the course of the next 10 years.

The Center disagrees with this proposal. It sounds good to the public on its face, but these subsidies help energy companies to keep energy prices at reasonable levels.

Terminate Ultra-Deepwater exploration program, saving $50 million.

We support this proposal because we oppose expanded offshore oil drilling.

Cancel planned expansion of the Strategic Petroleum Reserve, saving $71 million.

The Center oppose this proposal because we need to fill and maintain the SPR at a level of one billion barrels for our national security.

DOE FY 2011 Budget Request