Perhaps, one of the greatest debates has concerned the viability of these oil subsidies. This issue presents a conflict of interest; whether the government should support the American taxpayers (the public) or the oil companies seems to be a matter of debate. The primary reason why these subsidies should be abolished is that the oil industry has not reached a state where it is making huge profits; therefore, it no longer remains the ‘infant’ industry it once used to be. According to one article, the effect of providing oil subsidies to the already rich nations such as U.S is that of making the richest countries even richer. Profits amounting to $80 billion were made cumulatively by three of the largest oil companies in the U.S in 2011 (Slack). Thus, because these oil companies have a huge turnover and are largely self-sufficient there seems little point in the continuance of oil subsidies. It is believed that the money allocated to these oil subsidies should be invested in institutions which lack funds, such as the provision of old-age homes, medical facilities etc. Also, the oil companies are already been given the incentive to increase output by the rising global oil prices; therefore, there remains little role that subsidies can play. This also means that the taxpayers are being effectively taxed ‘twice’ which means that they are paying a premium amount for getting the fuel and also having their taxes being used as subsidies for these companies (Cooper and Weisman). According to one estimate, one of the companies used as much as $225,000 per day to write off majority of the cost of a sunken oil rig during the Gulf oil spill (Koceiniewski). Considering the huge amounts, the subsidies are rejected on the grounds of being unfair to the American taxpayers as an exorbitant amount of their money is being used up in them. There seems to be a boom in the American oil industry lately. The output of domestic oil has reached its highest levels since the past few years. Since the past few years, the American oil industry has grown self-sufficient in that the domestic companies are producing more than the amount of oil imported by the U.S (Slack). Also, there have been political efforts to enhance oil production, for instance, by allotting land to oil companies for production. Furthermore, the most obvious reason why oil subsidies in the U.S should be discontinued is that it would free up money and resources for public use. These resources could instead be invested in ‘green’ and sustainable initiatives which would mean finding alternate sources of energy that is environmental friendly and efficient (Slack). These initiatives are both politically and environmentally viable as research indicates massive public support for investment in green initiatives. The public is in favor of giving tax incentives to companies who would produce electricity from wind, solar and water sources (Slack). Oil subsidies are merely fulfilling a short term need in the sense that there is little investment in the ‘future’. This short-termism is clearly inappropriate as it is the need of the hour to invest in finding alternate, renewable energy sources such as wind and solar power. This is linked to the argument that the discontinuance of oil subsidies would result in a greener environment as greenhouse emissions would be reduced due to lower resulting output. Thus, the idea of oil subsidization is self-contradictory in that it
Customer inserts his/her full name Date Subsidizing Oil Companies in the U.S.A The history of oil subsidies in the U.S can be traced back to early 1900s when the government started giving monetary incentives to back the fledging oil industry in the U.S (Franks and Nunnally)…
The research question that this paper explores is: What are the human rights requirements and expectations of petroleum companies as they operate in foreign countries and territories? The paper begins by examining the existing laws that protect human rights and the primary legal instrument in American Law that can cause American corporate entities to held to task for misconduct overseas.
In addition to that, the plan is intended to generate increased revenue and also limit the dependence of US on the imported oil. In order to achieve this, a comprehensive oil exploration plan has recently been jointly released by President Barack Obama and the Interior Secretary Ken Salazar.
Why congress (USA) should end "big oil" tax credits and give that money to "green energy" companies? The US President Barrack Obama has called the US lawmakers to put an end to decade long tax breaks for the biggest five oil companies and employ that money into the clean energy sources.
According Taillant & Picolotti (1-23), the world all over, people are experiencing the consequences of ecological diminish, from water scarcity to fish kills to landslides on deforested slopes. Those who have been affected by sheer environmental degradation tend to come from susceptible segments of community.
According to Omorogbe (56-78), the NESREA Act bestows the agency with an extensive scope of powers for the conservation and growth of the Nigerian ecology. Nevertheless, the powers are not absolute, as the operations and authority of NESREA do not enlarge to the oil and gas segment of the Nigerian economy.
The traditional perspective of the parties to a joint venture held the operator with a high regard as the one performing the consortium’s operations while the non-operator as a mere financial contributor. In a consortium, it is necessary that one identify the different roles played by either party in order to avoid confusion that would result to increased litigation risk as well as uncertainty of jeopardizing the purposes of such a consortium.
It is suspected that the oil industry is taking advantage of its monopoly based on huge market control and lax energy trading oversight to gouge the public, squandering the opportunity to invest in cleaner, sustainable sources and curb the nation's dangerous addiction to oil.
US have the largest economy in the world and have been using oil to fuel its economy. It has been depending on oil from the Middle East and this has been one of the things that have been affecting the relationship between the two sides. (Ariel, 2006)
There have been many instances in the history of the two sides when they have been adversely affected by this kind of dependence.
Funds derived by other nations from booming oil prices, and cheap manufacturing were reinvested into the United States of America, and it will appear that the Americans decided to use these funds to present self-owned homes to a maximum number of their
The author states that effective management of the interests of the different merging parties should be actually studied to avoid chances of complications and strategy misalignment. Most importantly, the different interests of the partnering parties must be met so as to avoid interferences with the smooth running of the project.
12 pages (3000 words)Essay
Get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Didn't find an essay?
Contact us via Live Chat, call us at +16312120006or send an email to firstname.lastname@example.org