Sign-on Letter: No Subsidies for Enhanced Oil Production
Oil Change International
More than 30 environmental, public health, consumer, and climate groups delivered a letter to members of Congress in opposition to the Furthering carbon capture, Utilization, Technology, Underground storage, and Reduced Emissions (FUTURE) Act (S.1535) and Carbon Capture Act (H.R.3761) – and any attempts in a tax policy package to extend or expand subsidies for enhanced oil production. These proposals would add yet another taxpayer subsidy to the more than $20 billion that the fossil fuel industry already receives every year.
The bills would more than triple existing incentives for coal- and gas-fired power plants, and industrial facilities, to sell captured CO2 for enhanced oil recovery. As the groups point out, the proposed changes to the 45Q tax credit would result in an additional 400,000 barrels per day of CO2-enhanced oil produced in the U.S., and increased climate pollution.
In terms of the costs to American taxpayers, the climate, and communities living on the fenceline of fossil fuel infrastructure, notes the letter, this legislation is far too expensive. Further subsidizing the oil industry is a step in the wrong direction.