Why does our government like oil so much?

[Kayak Fish]

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?

 

[beachFool]

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.