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Who is subsidizing whom?

Posted: March 15, 2012 by Ken Cohen

In its lead editorial yesterday, The Wall Street Journal took a hard look into the Obama administration’s campaign to end so-called “subsidies for Big Oil.” The paper’s conclusion turns the administration’s claims on its head: “The truth is that this industry is subsidizing the government.” This is the flip side of the coin that few realize – the oil and natural gas industry is an enormous source of revenue for the U.S. government.

The U.S. oil and natural gas industry helps power Americans’ engines through the fuels it produces. But a new report from the World Economic Forum shows the industry is driving U.S. job creation as well. According to the report, prepared in partnership with IHS-CERA, oil and natural gas production accounted for 9 percent of new U.S. jobs last year.


North America stands ready to play a leading role in a global energy transformation through the safe and responsible development of shale natural gas, oil sands and deepwater resources to meet growing energy needs –but it is going to require industry and governments to fulfill their respective roles if these opportunities are to be maximized. ExxonMobil Chairman and CEO Rex Tillerson delivered this important message at a keynote address yesterday at CERAWeek in Houston.

I’ve talked a lot about how shale gas development is transforming energy markets, sparking economic activity, and helping meet our shared environmental goals. As the industry continues to grow, it’s important that local and state governments maintain their capacity for appropriate oversight and regulation. A continued focus on safe operations – from both industry and government – will allow Americans to keep benefiting from the jobs and revenue created by development of this lower-emission fuel source. That’s the idea behind a noteworthy new training initiative announced yesterday by several leading American universities …


  • Worth a deeper look...