Why does our government like oil so much?

Why does our government like oil so much? I've been asking myself this often lately. Is it because they make more revenue from taxing it than the oil companies make from producing it? Think about it. What happens if we ween ourselves off of oil and implement solar or wind power at our own homes, something that the gov't cannot monitor or meter? If they cannot monitor it, they cannot tax it, and therefore, I think they will never allow us to find our own free sources of energy. Does my theory sound way off?

Its a hard call. I think that the government wouldn't hesitate to implement a scheme to tax the 'potential' solar energy that a citizen could access (maybe based on sq ft of property owned or signs of the zodiac or whatever.)

I tend to believe that the money behind the candidates wants us to stay on oil as long as possible. We've known since 1973 that we are at the mercy of oil, but if you look at it, since then no party or administration has made any credible effort to address the nations energy needs (other than to defend oil.) The same money owns both parties (that's why they are so similar in their actions.) This could all be for nefarious reasons, but its more probably simply about profits.

If solar or wind power ever become popular, the government will contend they own the sun and the air. They already control parts of the air anyway. I also believe they would implement government-approved meters to gauge usage, heavily tax related technology and equipment, and of course, criminalize those who weren't marching in step with their schemes. The government isn't particularly interested in who or where the money comes from. Just as long as it comes. Modern government must be fed large amounts of cash to survive and I am certain through trial and error it would adapt to eating a "green" diet.

Well, Murray, its because "we the people" like it so much. Our representative government is only a reflection of us. Don't like the looks of your government? You are looking in the mirror, and as long as we are slaves to 19th and 20th century fuels (coal and oil), that will continue to be our view. 65% of our electricity comes from coal. Fly over SW West Virginia sometime to see another slow motion disaster called mountain top removal. Out of sight, out of mind.

Today, its in our face in our beautiful Gulf of Mexico.
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Democracy is the worst form of government except for all those others that have been tried.
- Winston Churchill

If solar or wind power ever become popular, the government will contend they own the sun and the air. The already control parts of the air anyway. I also believe they would implement government-approved meters to gauge usage, heavily tax related technology and equipment, and of course, criminalize those who weren't marching in step with their schemes. The government isn't particularly interested in who or where the money comes from. Just as long as it comes. Modern government must be fed large amounts of cash to survive and I am certain through trial and error it would adapt to eating a "green" diet.

You got that right. They have already had the EPA declare CO2 a toxic gas so that they can slap controls and penalties on those said controls.

Why does Seaside like oil so much? The gas powered carts they use are loud and toxic. You'd think Seaside might be a bit "greener".

Maybe the government wouldn't need so much money if it didn't have to spend the $$ making sure we have plenty of oil -- arguably we would have less wars, wouldn't have to oversee the oil drilling operations (I guess not much money was going there!), wouldn't have to clean up their disasters. . . .

I think the only way the american people will ween themselves off oil, is to make it $5 a gallon and keep inching it up. Maybe the gov't can do this with additional taxes to pay down some of the dept. Thus we'll be in a better place once they start loosing the gas tax $$.

The pentagon consumes a massive amount of gasoline for military exercises. If we didn't have million of troops occupying the world we'd consume far less oil.

Last night on CNN I heard something interesting - BP supplies a majority of the military's oil in Iraq and Afghanistan. We have the ability to punish them for this spill by banning them from government contracts. Turns out they have "connections" that stretch all the way to the White House, both past administrations and the current one.

If the current administration is serious about punishing BP, you'll hear news of them being dropped as a contractor. If not, you'll not hear a peep.

I caught that too, Shopper. The govt attorney who threatened BP with this during the Bush term was basically laughed at by BP's attorneies who pointed out their access to the white house. Not saying this isn't/wasn't the case with any other administration.

Obama is the only president I am aware of who is setting specific goals and actively and aggressively promoting alternative energy sources and using less energy overall. And he (like most politicians) gets a lot of campaign contributions from oil.

Lot of electoral votes, politicians, and cash come out of Texas and they are all dripping with oil. That, not any conspiracy or tax issue is IMO the real reason we are still so dependent on oil.

The utility companies have already figured out how to make money off of people going "off-grid" and producing their own electricity w/ solar. Two I am aware of locally are a fee to be part of the utility coop and the utility buying back power from the residence at a lower rate than they themselves charge. Still worth it to have a less than $20 utility bill in Florida in the summer though.

Gas taxes pay for highway and bridge maintenance and construction projects, and other forms of transportation projects (such as mass transit) so if those receipts are reduced, taxes WILL be raised on other items.

And, the US has the lowest tax on gas in the world, except for Mexico and perhaps Venezuela. For solar and wind, I'm sure the government would carve out a way to tax for a delivery surcharge, etc.

Why does our government like oil so much? I've been asking myself this often lately. Is it because they make more revenue from taxing it than the oil companies make from producing it? Think about it. What happens if we ween ourselves off of oil and implement solar or wind power at our own homes, something that the gov't cannot monitor or meter? If they cannot monitor it, they cannot tax it, and therefore, I think they will never allow us to find our own free sources of energy. Does my theory sound way off?

No off completely but Is it because they make more revenue from taxing it than the oil companies make from producing it?

Is way off base. Exxon Mobil is the most profitable company in the world.

Remember this is the Fortune 500 which only includes US companies.

Fortune 500 2010: Fortune 1000 Companies 1-100 - FORTUNE on CNNMoney.com

The Tax Foundation - State and Federal Treasuries "Profit" More from Gasoline Sales than U.S. Oil Industry

Granted this is only through 2005, but I think the picture is pretty clear on who gets the cash.

The Tax Foundation - Tax Gouging at the Pump

Updated study (2008) and more information on "the gouge".

Which makes you wonder, what would they tax if we all stopped using gasoline? Is there a solar "sunshine tax" in our future? Give the democrats time, they'll do it, I guarantee it!

Yes, and all you sun greedy Florida people, all warm and tanned, we are going to tax you the most.

Well the Tax Foundation is not exactly unbiased.

That graph is entirely misleading. Reminds of that line-Figures don't lie, but liars do figure.

The total taxes paid do not come directly from energy companies bottom lines.

Rather use taxes (included in the graph) are collected from consumers at the pump.

Not a penny of use taxes comes from the industry. They are just middlemen, state governments pay the merchant for collecting it.

A more accurate graph would show royalties collected from directly from oil companies.

I agree that if Chelco could figure a way to put a meter on a solar panel we would go down that path in a heartbeat.

I have no qualm with anyone making a profit. There is no denying there is soon-to-be unhidden cost socieity pays a cost for our addiction to carbon fuels.

Don't believe me. Just stick around South Walton for a couple of months.

The industry as a rule puts a very low priority on public safety, there is no ROI.

The total taxes paid do not come directly from energy companies bottom lines.

But the total taxes DO go to the government(s), regardless of who is paying them, so Murray's question was not entirely off base. I know here in Alabama the State is very protective of it's Oil & Gas Trust Fund, so much so that our Governors and federal legislative delegations have historically favored expanded drilling int he Gulf of Mexico because Alabama collects some type of royalty on any oil and gas which would pass through Mobile Bay.

But the total taxes DO go to the government(s), regardless of who is paying them, so Murray's question was not entirely off base. I know here in Alabama the State is very protective of it's Oil & Gas Trust Fund, so much so that our Governors and federal legislative delegations have historically favored expanded drilling int he Gulf of Mexico because Alabama collects some type of royalty on any oil and gas which would pass through Mobile Bay.

And they should, the oil and gas belongs to the people, not the oil companies.

The US Department of Defense (DoD) is the largest oil consuming government body in the world. It consumes about as much as the nation of Greece. Maybe a good way to reduce our dependence on foreign oil would be to stop the military adventurism?

But the total taxes DO go to the government(s), regardless of who is paying them, so Murray's question was not entirely off base. I know here in Alabama the State is very protective of it's Oil & Gas Trust Fund, so much so that our Governors and federal legislative delegations have historically favored expanded drilling int he Gulf of Mexico because Alabama collects some type of royalty on any oil and gas which would pass through Mobile Bay.

The link in response to my comment used total taxes collected and compared them to oil company profits.

That report is highly misleading.

The royalties collected are expense to an oil company's bottom line.

Sales taxes collected are not an expense to the oil company's bottom line.

A more accurate comparison would have been to juxtapose royalties paid with profitablity.

As a resident of Blue Mt Beach we really, really appreciate the work Alabama has done to expand drilling in the Gulf. We are paying a soon-to-be not hidden cost while Alabama collects the royalties.