Obama Will Cut Subsidies To Coal And Oil

Obama announced a proposal to reduce U.S. $ 36 billion in subsidies of coal and oil (in total received 70 billion per year).

But this may sound a good cut, Dave Roberts explains: Note that fossil fuels get 70.2 billion dollars in subsidies per year, and that does not include special allowances such as price and military spending, and that this is only the tip of the iceberg. Of course, modest efforts to remove fossil fuel subsidies are good, but up to date all attempts have been unsuccessful.

Obviously there were immediate complaints from the oil chiefs praise, saying that removing these subsidies “will encourage domestic development,” saying it is contrary to what Obama promised to the United States.

As always, I believe that any effort to remove fossil fuels in our society is good, whether it is as a political strategy or as we say in Mexico “covering up the male eye,” the fact is that they will not receive as much money, what puts renewable energy closer to be competitive.