Many U.S. taxpayers would probably be surprised to learn they subsidize oil and gas production by at least $4 billion each year. Indeed, given federal budget concerns, not to mention the urgency of climate change, President Obama tried to cut back subsidies during his first term.
Working with Democrats and some Republicans in Congress, he tried several times to repeal the industry’s three biggest tax breaks: the expensing of intangible drilling costs, percentage depletion, and the manufacturing deduction. Congressional proposals in 2011 and 2012 drew a majority of Senators’ support, but came only votes shy of reaching a filibuster-proof 60 votes.
