High Subsidies Ensure Profit for Nearly Half New U.S. Oil Investments

"The findings suggests U.S. oil may be more dependent on subsidies than previously thought. The subsidies could also undermine international climate goals."

"Government subsidies to American energy companies are generous enough to ensure that almost half of new investments in untapped domestic oil projects would be profitable, creating incentives to keep pumping fossil fuels despite climate concerns, according to a new study.

The result would seriously undermine the 2015 Paris climate agreement, whose goals of reining in global warming can only be met if much of the world's oil reserves are left in the ground.

The study, in Nature Energy, examined the impact of federal and state subsidies at recent oil prices that hover around $50 a barrel and estimated that the support could increase domestic oil production by a total of 17 billion barrels 'over the next few decades.'"

Neela Banerjee reports for InsideClimate News October 3, 2017.