On September 27, 2009
Week in Oil & Gas: G20 Axes Subsidies, Obama-Hu Climate Rhetoric, and Chevron Sues
The week ended with a muffled bang as the Group of 20 nations agreed to phase out government subsidies for fossil fuels. Ending fossil fuel subsidies would have an impact — positive or negative, depending on whose talking. But the agreement is viewed largely symbolic since G20 leaders did not set a timeline, nor did they outline what would count as a subsidy. What is a fossil fuel subsidy? It depends on where you live. Subsidies in industrialized countries including the U.S. come in the form of tax breaks for traditional “fossil fuel” energy companies. Developing nations often use subsidies to help consumers by keeping prices artificially low. Here’s what the G20 did agree to: Rationalize and phase out over the medium term…
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