Romney trounces Obama in first debate and global warmists are left in the cold
Despite attempts by climate alarmists to interject into the Oct. 3 presidential debate via online petitions and emails sent to moderator Jim Lehrer, the closest either candidate came to discussing energy-related issues was oil-production and subsidies.
It began whensaid that oil companies should not get subsidies and he would work to repeal them as part of his deficit-cutting measures.
was well-versed in the subject when he corrected the president by stating that oil companies have been getting subsidies for 100 years. Since 1913, the government needed to motivate oil companies to drill, so Congress allowed them to write off 70% of their exploration costs. That comes to about $1.2 billion a year.
While that may seem like a small amount, being able to write off the costs of drilling (and all it entails) has allowed many oil companies to pursue new digging sites and refineries. And according to the latest figures, the profit margins for oil companies are smaller than other proportionally sized industries.
In 2004, Congress passed IRS code Section 199 that allows domestically based oil companies to get a 6% deduction on profits. This was a carrot sodidn't move their headquarters to another country where taxes are much lower. Section 199 saves oil companies approximately $1.8 billion a year.
Obama remarked that he would end oil subsidies if reelected and save taxpayers $4 billion a year.
That was when Romney pounced.