President Obama’s Weekly Address: Ending Oil Subsidies

Oil companies are some of the most profitable entities on this planet, and yet we give them billions of taxpayer dollars as subsidies.  Stop the insanity!

I do wish the President would stop using the words “foreign oil.”  It’s ALL foreign oil, even the stuff we pump out of the ground ourselves.  That might be nitpicky, but it’s only perpetuating the misinformed belief of many Americans that “drill baby drill” means less dependence on “foreign oil.”

9 thoughts on “President Obama’s Weekly Address: Ending Oil Subsidies

  1. I have wanted to post something about this.
    ALL oil is controlled by speculators on the World Market. This will continue unless the government stops it. But of course for some, we need less government. (unless those opposed profit from it). As for what Obama continues to say , I think all of us wish he would say it like it is. Oh, but he speaks of “clean coal” ……..

    • Excepting a transportation premium, yes indeed. That’s one of the reasons Venezuela and the US are still bound together. Hugo would rather sell to China (and ship it to Syria – wtf, Hugo?) but the oil is heavy and sulphur ridden and there are refineries in Houston that can refine it, China is too far away and they don’t have as many refineries to handle the Venezuelan crude.

      So Hugo ships it to the US…. it’s just business after all.

  2. “Its all foriegn oil” – that’s it exactly – once it is out of the ground The Market owns it… not you.

    That Keystone pipeline – the oil or derviative products are seeking an export route out of the country. Why build a pipeline across the Rockies when Koch Bros can buy enough politicos south of the border and ship it to Texas? Far cheaper.

    ANWR. For a moment do you think the oil tankers coming out of Valdez would continue south to Washington and California if the Chinese bid more for it?

    End the oil subsidies – now.

  3. Wall Street reforms – going after oil traders for gaming the system? Really? Prove it Mr O – prosecute someone.
    Some good facts in his talk:
    2% of reserves and 20% of demand – there, smack, smack and smack again Newt. And note it has not jumped up a bunch by all this talk of ‘ inaccessible domestic reserves’ that 2% *includes* ANWR. There’s just not that much left, in the US. And shale and tar sands oil is crappy, expensive oil.
    drilling and exploration up (mainly price driven – oil more expensive, then its more cost-effective to chance it) – bang on – US production is higher than it’s been in years.
    opening up land for domestic resources – not sure where, but OK.
    reduction of imports – due to reduced demand and higher mileage in cars – all good. Real money to you and me by buying less.
    Less than 1/2 comes from overseas – for the first time since the late 70s I think. Its not sustainable without going after the demand side though which is the main reason it has dropped this far already.
    Energy independence for the US is not possible unless one of two things happen – we return to a pre-industrial revolution economy *or* fusion power is harnessed. Unfortunately I am thinking the former is more likely.
    Watching to see what the Oil Drum makes of Mr O’s talk.

  4. Since energy is the subject of the post – over at the ,a href=””>Oil Drum, they are tracking a bunch of stories. here’s a couple that caught my eye:

    Here’s what to do when a big multinational and, oh wait Transocean AGAIN, spill oil off your coast. You take their passports away . Tony ‘Baloney’ Hayward got off easily – and still no criminal charges for Transocean or BP?

    And there is something interesting going on in a place called Cushing, OK. That I really need to dig into…..

    Here’s another big Carribean refinery shutting down due to poor margins (= high crude prices and weaker local demand). The Aruba refinery (in addition to the huge Hovensa refinery on St Croix) refined mainly Venezuelan crude for the US and other Carribean markets plus Europe for diesel.

    • Whoops The Oil Drum link no workee… 😦

      And Joe Oliver, Canadian minister of natural resources spells out why he wants the Keystone in that link on Oil Drum into the Canadian tar sands

      “”Basically we have been selling all our energy to the United States, so we have one customer,” says Mr Oliver. “The other fundamental issue of course is that our resources are more than the United States wants or needs. Well then, the Asia-Pacific market is beckoning and China is the biggest consumer of energy in the world.”

      Even the Canadians know that The Market owns the oil. Its just good business…. after all.

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