What is the most subsidized energy source in the United States?

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President Biden has pledged to transition the United States to renewable energy.

However, the fossil fuel industry earns billions of dollars every year.

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Fossil fuels benefit from government subsidies

There has been a change in the orientation of the origin of our power. Part of President Biden’s Build Back Better agenda focused on the “green economy,” which didn’t gain much traction in the Senate. Learn more here.

The $1.75 trillion package could have boosted renewable energy production and consumption for the next decade.

Fuel subsidies play a major role in energy production, and a 2017 Congressional Budget Office report shows the trend towards a focus on renewables. $18.4 billion in annual government allocation of energy-related tax preferences is distributed as follows:

However, renewable energy does not receive the most subsidies. The fossil fuel industry still demands a lot of taxpayers’ money to keep its prices low.

The US government alone spends $20 billion directly on fossil fuel subsidies. Of this amount, about $19 billion goes to oil and gas and the remaining $4 billion helps the coal industry.

The problem is only getting worse. Between 2017 and 2019, the production of fossil fuel subsidies increased by 28%.

Although the contribution of the United States does not help, other countries also contribute to the problem. Estimates for 2021 revealed that the G20 was responsible for 80% of global greenhouse gas emissions. and that same group earned an average of $290 billion a year on fossil fuel production. Of this amount, nearly 95% goes to the oil and gas industries.

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