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.