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Politics : Politics of Energy
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To: RetiredNow who wrote (1993)8/24/2008 10:13:06 PM
From: Hawkmoon  Read Replies (2) of 86356
 
But I am for an immediate cessation of all subsidies for oil & gas companies. That's a good idea, since they are a mature industry and profitable on their own without them.

Well.. we'll just have to agree to disagree. Because it's going to be difficult to get companies generating a mere 10% profit margin to take on the massive business risk required to produce the required amounts of domestic energy, fossil or alternative, that this country requires in order to reduce it's foreign dependence and preserve our economic security and vitality. And it will be even more difficult to achieve this if we're not even-handed in focusing on unlocking unexploited energy resources that are sitting in the ground and creating no economic value to the economy.

And btw, you seem to be contradicting yourself. Utilities are probably one of the most mature and profitable industries, using your metrics. They don't have to take risks on finding more energy. They merely jack up their rates to meet their costs of generation and pass it on to the consumer. The only risks they truly take involve proper hedging activities related to fuel costs and securing long-term supplies at a predictable price.

Domestic energy sources need to be developed so that money flowing overseas can remain within our own domestic economy. And if the government needs to reduce it's share o the take (via extending tax credits to create incentive to develop them) then so be it. I think it's just as fair to offer them to oil companies as it is to offer them to alternative energy initiatives.

Hawk
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