What Price Energy Independence?

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In The Media

What Price Energy Independence?

Removing oil and gas subsidies would increase energy security with little impact on consumer prices.

By David Burwell

Published on Jul 8, 2010

Source: POLITICO

What Price Energy Independence?It is not feasible to view energy independence as producing all the energy we consume from domestic sources. However, if it means having secure access to the energy we need regardless of external shocks to our energy supply chain, then yes we can.

The Obama administration has proposed removing oil and gas tax preferences and canceling now obsolete royalty waivers. These actions, plus the cancellation of other general tax havens (for example, offshore registration), would generate at least $8-12 billion annually in new revenues. That money could be used to underwrite the development - through tax preferences that incentives private R&D of new energy sources - of a more diverse energy supply chain. This would accelerate U.S. progress toward its key goal - becoming more energy resilient and shock resistant.

According to the U.S. Treasury Department, doing away with these subsidies would reduce world oil supply by less than a tenth of a percent, have no impact on the price of gasoline, and would reduce domestic production, if at all, by less than a half of a percent.

Increased energy choices and increased security at the same cost to consumers. It’s a start.

About the Author

David Burwell

Former Nonresident Senior Fellow, Energy and Climate Program

Burwell focused on the intersection between energy, transportation, and climate issues, as well as policies and practice reforms to reduce global dependence on fossil fuels.

Recent Work

Paper
The Politics of Plenty: Balancing Climate and Energy Security
- David Burwell
In The Media
Beijing: The City of Long Distances
- David Burwell

Climate Change North America United States

Carnegie India does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

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