The same people who complain about EV subsidies don't seem to be aware of farm subsidies that keep the price of their foods low or oil subsidies that keeps their fuel costs low, but are quick to say we should do away with EV subsidies and let the market stand on its own! I wonder how they would feel if we did away with all subsidies and their costs of food and energy skyrockets?
We don't want the government to seem to be telling us what to do, but we want the government to tell us what to do. Like insurance is a rip off until you need it
It's not just that things would be more expensive, it's that entire industries would fail during lean times. That's one of the reasons we subsidize farming is because pure capitalism doesn't work with unpredictable production. All it would take is a few super dry summers in a row and we would have a bunch of farms forced into bankruptcy and that would be that. People complain about the unfair advantage Chinese companies have and then say that the only way to make it fair is to put up barriers for the Chinese companies. How does even remotely level the playing field when our industries require ENORMOUS investments in technological R&D and new manufacturing equipment in order to catch up??
We will! I love that Kate gets the time to do these and hope we can build some time into our hectic schedules to do these same in PDX - Nikki :) (we love Kate’s videos!)
Oil and gas also have huge tax advantages, and exemptions to environmental laws (fracking should never be allowed under environmental laws, but early 2000s, Congress passed a law to protect fossil fuel extraction)
Great video. A very tough subject that seems to purposely be confusing by design, so that most of us will never complain to our governments about the absolutely insane shortsightedness of the governmental bureaucracy on this planet. I guess if you make something so difficult to understand, most people will simply turn a blind eye to it, instead of trying to fully understand it.
Subsidies look downright simple in comparison to taxation. Oh wait taxes, or the lack of, can be subsidies too. As can incentives of various kinds. Originally much of this was fairly simple, but time and new subsidies/taxes muddy the waters. Then there are exemptions from taxes, rebates, etc. In the end it can be difficult to figure out who is paying, or not paying what to whom, for whatever reason.
Did you include the military expenditure that relates to oil, for example the Iraq war 1 and 2, and the cost of maintaining military bases in the Middle East?
The Ukraine War is over oil and Gas. There are massive oil and gas reserves in the Sea of Azov and the Black Sea from Crimea to Odessa. Around 2010 there was a discovery of a massive gas reserve under the Dombas, Shell in 2012 signed a contract for $10 Billion to develop that and had actually commenced developing the the resource, but left when the initial Russian invasion in Luhansk, Donbas and Crimea. All of this used to belong to Ukraine who would be able to undercut Russia in sales to Russia's main markets in Europe. A great video , a bit long but covers it all "Russia's catastrophic oil and gas problem "
In Brexitania, the Tories allowed big oil to not pay any Brexitanian taxes and if they decide to cough-up. It’s the oil companies that tells the government how much it’s willing to pay. Then via a niche bit of legislation, the oil corps can immediately reduce that figure by GBP £11bn. So we come back to them either paying nothing or so close to nil, as would make no difference to the distance between a garden gnome catching one fish per day or two fish per day. Brexitania makes a notional GBP £9.9bn annually from petrol-gas & diesel. While giving big oil subsides of GBP £13.6bn annually. They could cease pumping today and still pocket £3.7bn annually for doing nothing.
FYI: CNBC just put out a pretty good youtube video that touches on some of the same material: How The U.S. Is Pumping More Oil Than Any Country In History
Have you asked yourself WHY are they pumping more than ever before, and why NOW? My theory for that is that they want to get it all out of the ground and sold, before we stop the majority of the burning of it. Burning this resource is what makes it a cash cow, all other uses, hardly generate income by comparison. So get it out now, get it burned now, to make the profit while they still can. Anyone still think the end of oil is far away? (39 ish years at PRESENT levels of consumption) Of course the industry is constantly pushing consumption up, so that number will actually be lower than it looks now.
Hello Kate, it’s Rick from the declining oil capitol of the world and emerging EV capitol of the world, Houston, Texas. When it comes to EV subsidies, accusations are confessions. Who knows that better than the oil industry.
Anyone with a flip clock as their bedside alarm I pay attention to. (Especially when they are wonderfully sarcastic.. And I've not even really started watching the video but I know I'm going to enjoy it!)
OMG. The humour in this one is priceless. You had me laughing out loud before the four minute mark came up. LOL I CAN'T believe governments subsidize the oil industry? WTF??? Record profits and still handouts? I'm a simple man so I guess this is way beyond me.
Let the libertarians lead the charge on this one! If someone complains about EV subsidies, just say "ok let's just eliminate all the subsidies!" And then run the numbers on how much it would actually cost to operate an ICE vehicle or a natural gas plant vs an EV or renewables
Yes, ethanol is subsidized by the U.S. government through various means. The primary subsidy historically was the Volumetric Ethanol Excise Tax Credit (VEETC), which provided a tax credit to ethanol blenders1. Although this specific subsidy expired in 2011, other forms of support continue, such as mandates for ethanol blending in gasoline, tax incentives, grants, and loans23. These subsidies aim to promote biofuel production, reduce dependence on foreign oil, and support the agricultural sector2. However, they have also been a topic of debate due to concerns about their economic and environmental impacts12.
Amazing research as I have been wanting an idea of the fossil fuel industry subsidies. I had never thought it would be in the Trillions let alone $10 Trillion worldwide. It absolutely puts EV subsidies to a shadow of the fossil fuels. I feel I need to watch this several times to really get a grasp of all of this information! Thank you and love the sarcasm!
If ever wonder how the U.S.. Federal Government settled on $7500 as an EV incentive? The story goes back to the early 1990's during George H. W. Bush White House Admin (sr, not jr) when a study was requested on the costs that combustion vehicles place on society and to offer as an incentive to stimulate the introduction of EVs. Value was determined to be approx. $10,000 per vehicle (if this was 1993 dollars, it would be equivalent to $12,400 in 2024 money). So when first alternative fuel legislation was negotiated in Congress a value of ~$10,000 appeared in most drafts, but became $7500 in final bills. From "S.1518 - Alternative Motor Fuels Act of 1988", which focused on alternative-fueled vehicles for model years 1993 through 2004. It included this line of text "Requires the Secretary of Transportation to report to the Congress the results of a study regarding the need to promulgate additional or amended regulations to stimulate the introduction of electric vehicles into commerce."
@transportevolved Same! One of my favourite asides you've ever done was "fasc-ination" 😉 I can't remember which video that was from now but I wanted to clip it and just run it on repeat!
@@DevAnubis Oh yeah, sadly that was my fault - Nikki ;) What many people don't realize is that Kate and I very often edit each other's scripts... and I certainly put sarcasm and snarky into Kate's videos as much as she does mine. But I will admit I sometimes put MORE in hers - Nikki ;)
thanks for this very important video. it would have been lovely to see some sort of graphical presentation of some sort to visualize just how gargantuan the fossil fuel subsidies are compared to renewables and i guess for the focus of this video, EV only subsidies. pie chart, bars, etc. it could have stayed up on the screen the whole time, adding up. is it possible to do this still as an overlay? anyway, i appreciate this video, thanks kate and TE.
I put 30.00 bucks in our "spare ice vehicle" we don't drive much anymore. Filling up is painful!! Our 2 car family is all ev, but with a spare. Never to be driven again....
I've loved spreadsheets since I was a child. I was the only one that used Microsoft Excel on our Gateway 2000 from the mid 90s. I tracked my birthday party guest RSVPs on a spreadsheet.
Sorry, but your bit about SUVs not being subsidized is false. Heavy vehicles like trucks and SUVs over 3 tons qualify for tax breaks. This was intended originally for commercial vehicles but has directly resulted in heavier and heavier consumer vehicles in order to meet the weight requirement. This may not be a "direct" subsidy to the vehicle companies but it does mean that all of us non-SUV drivers are helping to pay for 3 ton SUVs, and lining the pockets of the companies who make them. It is also ridiculous to me that free or cheap leases of government lands for oil prospecting, timber harvesting or ranching is not considered a subsidy.
7:50 +1 Section 179 (& Bonus Depreciation) greatly help offset tax based on GVWR (It does benefit both ICE & BEV vehicles (along with Hydrogen and Hybrids))*
@@mariano3113 It may benefit EV sales, but it encourages the manufacturing of gigantic EVs with gigantic batteries. This directly results in a slower, more expensive EV transition with a worse environmental impact. And it directly results in less safe, less efficient vehicles across the board.
@@patreekotime4578 It benefits both ICE and EV sales for large vehicles. Due to weight tier requirements ...all of them end-up making the roads less safe.(Edit* from perspective of weight) EV large SUVs/trucks having ridiculous acceleration doesn't help. But then again the EV variants of ICE large SUVs and Pickup trucks tend to also have the shortest stopping distance. (Edit* from perspective bringing the mass to a controlled stop...the EV of similar weight - - having a shorter stopping distance makes it the safer equivalent. However supercar/sports car like acceleration with 6k-11k lb vehicle is not safer for other drivers.) Cadallic Escalade IQ accelerates and stops faster than the more expensive Cadillac Escalade V. It also travels further 400+ miles range for the IQ vs 384 miles for the V at highway speeds. (Escalade V gets 11city / 16 hwy with 24 gallon tank ...13 mpg combined) F-150 Lightning was fastest stopping F150 variant. E-Transit has the shortest stopping distance of same length(size) transit van variants. So somewhat safer that they stop sooner, but having them accelerate these massive wrecking-ploughs so quickly cannot correlate to being "safe", aside from not slowing traffic from slow merging-congestation. *Edit* added Cadillac direct link to business Tax credit on Cadillac site www.cadillac.com/tax-deduction
the subsidies she was referring to were the fact that SUVs were "defined" by politicians as trucks means that they(meaning detroit) do not have to meet fuel economy and safety standards. detroit is killing us with washingtons blessing.
Air tight analysis, Kate. Nothing like the feeling of being proven correct that EVs (and frankly any form of social investment) are politically undermined in favour of business as usual. Odd how the anti-EV diesel shuckers never mention the incentives afforded to companies for their company fuel cards, their executive saloons, vans and bi-turbo V6 Ford Rangers when declaring depreciation as a tax write off....
He was standing rapping at one of the terminals of Eddie the Shipboard Computer. Zaphod told him. “What’s it doing?” “It is trying,” said Zaphod with wonderful restraint, “to make tea.” “Good,” said his great-grandfather, “I approve of that.”
There are also "hidden incentives". While incentives to oil/gas industry are direct, hidden incentives at point-of-sale are not on the radar. Last U.S. federal tax adjustment for inflation (cost-of-living) was Aug 10, 1993. This was when gasoline cost $1.11 (1993), or $2.49 (2024 inflation adjusted) Federal gas tax in the U.S. remains at 18.4 cents per gallon for gasoline. 24.4 cents for diesel, unchanged in 3 decades. (Funds designated to upkeep roads and highway infrastructure ... but guess where it went. ; ) Inflation from 1993 -->2024 has been 124%, so $1 (1993) = $2.24 (2024). So a tax of 41.2 cents per gallon for gasoline and 54.7 cents for diesel should be expected. Given U.S. consumes over 100 Billion gallons per year; this is one hell of an hidden incentive. This does not include fuel credits received from ethanol blending, etc. (another hidden incentive, discussed as corn and beet farming).
You were summing the totals for both fossil fuel extraction, refining and vehicles on one side, but only EV vehicle subsidies on the other. Probably should have included renewable energy subsidies on the EV side for a truly fair comparison.
CNY 2.1 billion ($325 million) Tesla may be operating a wholly-owned factory in China, but the company became the most heavily subsidized electric vehicle maker in the country in 2020 nonetheless. Last year, Tesla China received CNY 2.1 billion ($325 million) in government subsidies for new energy vehicles, the highest amount granted to a carmaker in the country.
It’s funny that student debt survives bankruptcy but oil and methane companies can evaporate during bust times and it’s left to unrelated organizations to charitably cap those wells. Something’s broken.
My guess is subsidies are higher per vehicle for EV. Overall, however, EVs are way lower. We will see over these 30 minutes (turns out I was wrong). Here in Wisconsin, the vehicle registration is higher for electrified vehicles than ICE cars. So the numbers are even more skewed than they seem; which is impressive since the disparity is so big already.
Anything that we produce that has negative effects is therefore subsidized and should be accounted for in the price. Good luck with that. Same people that want pharmaceutical companies to lower their prices... even with average profits (9%) well below many other businesses.
Autoline Daily (8/9/2024) reports that EV sales are tanking in Germany. This is attributed to loss of subsidies. Depending on the results of the US elections, could the same happen in the US if gov’t rescind the EV subsidies as well as mandates?
If an EV car truck van replaces all ICE / Fossil fuel cars trucks vans.. that are used by states federal governments and post offices police departments city governments... what would the savings be over a five year period.. ? My guess is it would be astronomical ! Yet we seem hesitant to do just that / this !
Here's one for ya. Utility companies.. POWER PLANTS... many were leased or sold huge portions of property... where they built power plants and dug huge lakes.. those lakes were paid for by the state and federal governments basically.. yet they now have million dollar homes and golf courses on them that are owned mostly by power company executives and wealthy families... who didn't contribute to the cost via taxes paid... in ! We've subsidized their lifestyles as well...
I think Germany recently said they will have a 6% tax credit (means tested somehow) for EVs in the last few days to make up for the other program running out of money.
Who can imagine a single republican politician knowing or caring about even the easiest issue to understand? I bet not one would watch more then a minute or two of this video... it would break their broken minds.
Re: free parking, a fellow climate advocate argued to our County officials that county employee parking should be managed this way, which I disagree with. Give employees a voucher to either pay for their parking spot, or get paid cash to NOT park and instead use alternative transportation. In addition, his faith in EV's being better/good enough for the climate, EV drivers would get the cash, because their cars aren't the problem. This would of course create a substantial new County cost for everyone that doesn't drive a fossil fuel car to work, with no sunsetting plan, so perpetual cost to county benefit to employees. Or it would result in continued free parking for all employees if they eventually all adopted EVs. At 30,000 feet, it's a good goal because it helps us all, but the optics would clearly trigger the very vocal fake Tax Payers advocacy groups who enable the election of republicans to our local governments. Also, the long view is that EVs are unsustainable. So crafting subsidies that encourage the purchase of them is counter to the more sustainable effort of mode-shifting away from personal car use and to mass transit and micromobility.
Have you looked at the IMFs report on the oil subsidies? 2018ish US SPENT 650billion on subsidies 50 billion more than on their military Russia 515 billion and Chyna spent 1.2 trillion. 2.7 trillion from just those 3 countries, how much from the rest of the world? Gaghh 1 minute after posting my first part of the comment you talked about the IMF. WELL DONE.
lets make it fair cut 100% of petrol subsidies. get them to pay to clean up or cap there own wells and not just abandon them for other to do. give that money to the people so they can buy food and heat there homes
Depending on the US elections, the EPA could cease to exist. If this happens, there would be no federal watchdog and the EPA regulations could fall by the weigh side. Oil subsidies would fund research on where to drill in the world Unregulated oil industry could mean more Arctic and Antarctic drilling. The new US gov’t would ignore treaties on drilling in Antarctica. This could lower the cost of a gallon of gas.
EV subsidies are supposed to help people who can ill afford an EV. This may have contributed to the lucrative repo market as marginally income people default on their loans.
I'm with you on most of this but subsidies don't often favor the rich. They always 100% of the time favor the rich. If you're going to say it, at least be 100% honest about it, not 99.999% and save most of the time.
Lithium, cobalt, aluminum, 'rare earth' magnet materials... There's stuff like gold in them thar hills, let's go spread democracy all over it! Oil is a big reason for the imperialism, but it's not like the hawks won't find other excuses to keep finding unlimited money for bombs and bullets.
@@mikewallace8087 If the infrastructure is gone how do you refine the oil? How do you get it out of the ground? How do you get it to the trucks/tanks/jets? China uses fudge-tons of coal and oil, they just are also the biggest investor into green/clean energy. Where're you getting this nonsense that China only uses oil for war?
I'm a fan of EVs and this channel, but this video could have used more fact-checking. I looked at the eesi report and it's data and TBH, they really twist the facts to come up with their subsidy number. If you look at the breakdown, the lion's share of the number comes from simply counting every single bit of corporate tax avoidance and general US corporate subsidies as fossil fuel subsidies if done by fossil fuel companies. E.g. The US allows LIFO accounting, in addition to FIFO and cost basis accounting, which turns out to be beneficial to oil producers. But it's also beneficial to some other businesses, like car dealers, yet no one says we have a car dealer subsidy. If oil companies claim a manufacturing tax credit for making their pipes in the US, instead of buying them in China, it's a fossil fuel subsidy. Same for R&D tax credits, subsidized loans through the import/export bank, etc. The US has a LOT of corporate tax dodging and corporate welfare, but it's disingenuous to count them all as fossil fuel subsidies if done by fossil fuel companies.
I absolutely would say we subsidize car dealers. Virtually all legacy industries and many more successfully lobbied newer industries have rafts of subsidies hidden away in arcane ways. HTH ^Kate
To properly understand politics, you need to break the word down to the source of the word. Poli is Laten meaning many, and tics meaning blood sucking insects.
@@rp9674 not only for Flex engines. Most gasoline in the U.S. contains ethanol to help boost its octane rating. Here’s a quick breakdown: - **Regular Gasoline (87 octane)**: Typically contains up to 10% ethanol (E10). - **Mid-Grade Gasoline (89 octane)**: Also usually contains up to 10% ethanol. - **Premium Gasoline (91-93 octane)**: Often contains up to 10% ethanol, but in some regions, you can find ethanol-free options²⁴. Higher ethanol blends like **E15** (15% ethanol) and **E85** (up to 85% ethanol) are also available, especially for flex-fuel vehicles³⁵. Source: Conversation with Copilot, 9/4/2024 (1) Does Premium Gas Have Ethanol? Unveiling the Truth About High-Octane .... ranwhenparked.net/does-premium-gas-have-ethanol/. (2) Selecting the Right Octane Fuel - FuelEconomy.gov. www.fueleconomy.gov/feg/octane.shtml. (3) How Much Ethanol Is in 87, 89, 91, and 93 Octane Gas? - Vehicle Freak. vehiclefreak.com/how-much-ethanol-is-in-87-89-91-and-93-octane-gas/. (4) How Much Ethanol In 87 - 93 Octane Gas? (Regular & Premium). thedriveradviser.com/how-much-ethanol-in-87-93-octane-gas-regular-premium/. (5) A Brief History of Octane in Gasoline: From Lead to Ethanol - EESI. www.eesi.org/papers/view/fact-sheet-a-brief-history-of-octane. (6) Unveiling Ethanol Levels: How Much Is In Your 93 Octane Gas? - AutoPadre. www.autopadre.com/blog/how-much-ethanol-is-in-93-octane-gas.
While I get the point of this video and its subject, this is NOT a fair comparison. You cannot compare oil subsidies to EV subsidies, as one subsidizes an energy source, while the other, a material product, and these are in no way the same. If you want a properly equivalent comparison, then you should be comparing oil subsidies versus electricity subsidies. Comparing the subsidies of a fuel source to a product is a bit disingenuous and, on the outside, highly unbalanced. A fair comparison would be how much petroleum refineries get in subsidies as opposed to electricity generating plants (then you can aptly compare fuel subsidies). A fair comparison would be how much of a subsidy you get for a Tesla Model 3 as opposed to a Toyota Camry Hybrid or petrol variant (then you can aptly compare transportation devices). ...you see where I'm going with this? EVs get tax breaks at purchase. Petrol/Diesel vehicles do not, so to a person who can only afford a Corolla and not a Model Y, those subsidies ARE unfair, as they are not entitled to them, despite both of them being cars. Thats like asking, who charges higher premiums - homeowner's insurance providers or health insurance providers? Sure, both are important things for humans to have a lucid understanding or, but replacing a broken window isn't the same thing as receiving triple bypass heart surgery. If you want to be fair about it, I'd love to see a video on what subsidies are given to which energy provider - oil or electric (wind, solar, nuclear).
Not true. They both involve the entire industries that they are involved in. The fuel source directly affects the usability of the product. People who are proponents of oil and are getting the 7 Trillion dollars a year are extremely worried about a major user of their products being phased out. And are attacking the industry receiving $50b globally by complaining about them getting subsidized. Yeah if big oil didn’t get those subsidies then it would probably cost an ICE owner $25 per gallon in the U.S. how much would your car really cost then?
@@adofoi30 1. "They both involve the entire industries that they are involved in." - the petroleum industry isn't like the car industry. They make pharmaceuticals and plastic as well...try again. 2. "The fuel source directly affects the usability of the product." - I know...that's exactly my point. One's a fuel, the other, a product that USES fuel...try again. 3. "People who are proponents of oil and are getting the 7 Trillion dollars a year are extremely worried about a major user of their products being phased out." - no they're not, because (1) the Environmental and Energy Study Institute's findings are that the U.S. spends approximately $20 billion a year on subsidies to oil and gas, not $7 trillion - hell, the U.S. GDP is only around $27 trillion, so (www.eesi.org/papers/view/fact-sheet-fossil-fuel-subsidies-a-closer-look-at-tax-breaks-and-societal-costs), and (2) ships and planes exist...try again. 4. "And are attacking the industry receiving $50b globally by complaining about them getting subsidized." - The Inflation Reduction Act, signed into law in 2022, provides for an estimated $370 billion in solar, wind and electric vehicle subsidies. Under the Treasury Department rules, companies that pay prevailing wages to workers and hire apprentices for projects seeking IRA tax credits would receive five times the law's base credit of 6%. (Reuters, Inflation Reduction Act)...try again. 5. "Yeah if big oil didn’t get those subsidies then it would probably cost an ICE owner $25 per gallon in the U.S. how much would your car really cost then?" - The same. Last time I checked, the price of fuel did not determine the price of a car. Lamborghini doesn't price Revueltos based on what BP or ExxonMobil sell a gallon of unleaded for. If you want to make this fair, then how much per kilowatt hour does the EV subsidy reduce fuel costs? You won't be able to answer that because you're trying to equate the price of a gallon of fuel to the price of a car, and they're not the same thing, thereby making your response not only illogical but asinine...try again.
The same people who complain about EV subsidies don't seem to be aware of farm subsidies that keep the price of their foods low or oil subsidies that keeps their fuel costs low, but are quick to say we should do away with EV subsidies and let the market stand on its own! I wonder how they would feel if we did away with all subsidies and their costs of food and energy skyrockets?
Let the market stand on it's own! But 100 percent tariff! Do you want a protected market or free market? This some people are funny yes?
We don't want the government to seem to be telling us what to do, but we want the government to tell us what to do. Like insurance is a rip off until you need it
It's not just that things would be more expensive, it's that entire industries would fail during lean times. That's one of the reasons we subsidize farming is because pure capitalism doesn't work with unpredictable production. All it would take is a few super dry summers in a row and we would have a bunch of farms forced into bankruptcy and that would be that. People complain about the unfair advantage Chinese companies have and then say that the only way to make it fair is to put up barriers for the Chinese companies. How does even remotely level the playing field when our industries require ENORMOUS investments in technological R&D and new manufacturing equipment in order to catch up??
Outsourced Industries can be weaponized against us, beyond the level of the chip shortage. Also don't want to race to the bottom with labor
Nigeria got rid of many, perhaps all fossil fuel subsidies, and yes those same things became very expensive in Nigeria.
Thank you Kate! Your sarcasm fills my bucket! ❤
This intro was hilarious! Keep up the good work gang!
We will! I love that Kate gets the time to do these and hope we can build some time into our hectic schedules to do these same in PDX - Nikki :) (we love Kate’s videos!)
Kate's super dry sense of humour brings me so much joy. 😊
Oil and gas also have huge tax advantages, and exemptions to environmental laws (fracking should never be allowed under environmental laws, but early 2000s, Congress passed a law to protect fossil fuel extraction)
Great video. A very tough subject that seems to purposely be confusing by design, so that most of us will never complain to our governments about the absolutely insane shortsightedness of the governmental bureaucracy on this planet. I guess if you make something so difficult to understand, most people will simply turn a blind eye to it, instead of trying to fully understand it.
Subsidies look downright simple in comparison to taxation.
Oh wait taxes, or the lack of, can be subsidies too.
As can incentives of various kinds.
Originally much of this was fairly simple, but time and new subsidies/taxes muddy the waters.
Then there are exemptions from taxes, rebates, etc.
In the end it can be difficult to figure out who is paying, or not paying what to whom, for whatever reason.
Did you include the military expenditure that relates to oil, for example the Iraq war 1 and 2, and the cost of maintaining military bases in the Middle East?
The Ukraine War is over oil and Gas. There are massive oil and gas reserves in the Sea of Azov and the Black Sea from Crimea to Odessa. Around 2010 there was a discovery of a massive gas reserve under the Dombas, Shell in 2012 signed a contract for $10 Billion to develop that and had actually commenced developing the the resource, but left when the initial Russian invasion in Luhansk, Donbas and Crimea. All of this used to belong to Ukraine who would be able to undercut Russia in sales to Russia's main markets in Europe.
A great video , a bit long but covers it all "Russia's catastrophic oil and gas problem "
In Brexitania, the Tories allowed big oil to not pay any Brexitanian taxes and if they decide to cough-up. It’s the oil companies that tells the government how much it’s willing to pay. Then via a niche bit of legislation, the oil corps can immediately reduce that figure by GBP £11bn. So we come back to them either paying nothing or so close to nil, as would make no difference to the distance between a garden gnome catching one fish per day or two fish per day. Brexitania makes a notional GBP £9.9bn annually from petrol-gas & diesel. While giving big oil subsides of GBP £13.6bn annually. They could cease pumping today and still pocket £3.7bn annually for doing nothing.
a) well informed and well spoken
b) spreadsheets rule!
Today the algorithm was a hoot. I got back to back advertisements for gasoline and mattresses.
FYI: CNBC just put out a pretty good youtube video that touches on some of the same material: How The U.S. Is Pumping More Oil Than Any Country In History
Have you asked yourself WHY are they pumping more than ever before, and why NOW?
My theory for that is that they want to get it all out of the ground and sold, before we stop the majority of the burning of it.
Burning this resource is what makes it a cash cow, all other uses, hardly generate income by comparison.
So get it out now, get it burned now, to make the profit while they still can.
Anyone still think the end of oil is far away?
(39 ish years at PRESENT levels of consumption)
Of course the industry is constantly pushing consumption up, so that number will actually be lower than it looks now.
10:35 should be the loudest message we share. It’s extraction for extraction’s sake.
Hello Kate, it’s Rick from the declining oil capitol of the world and emerging EV capitol of the world, Houston, Texas. When it comes to EV subsidies, accusations are confessions. Who knows that better than the oil industry.
Anyone with a flip clock as their bedside alarm I pay attention to.
(Especially when they are wonderfully sarcastic.. And I've not even really started watching the video but I know I'm going to enjoy it!)
Epic job! Thank you.
Excellent video containing some very well researched data ... and the cheeky intro was appreciated. Well done, again ❤
We end up with a patchwork of incentives, partly because it's very hard to remove any subsidies or incentives from corps, including temporary measures
Awesome video, great research. Thank you!
OMG. The humour in this one is priceless. You had me laughing out loud before the four minute mark came up. LOL
I CAN'T believe governments subsidize the oil industry? WTF??? Record profits and still handouts?
I'm a simple man so I guess this is way beyond me.
Let the libertarians lead the charge on this one!
If someone complains about EV subsidies, just say "ok let's just eliminate all the subsidies!" And then run the numbers on how much it would actually cost to operate an ICE vehicle or a natural gas plant vs an EV or renewables
musk totally supports doing away with ALL subsidies.something big oil will never get behind/
Yes, ethanol is subsidized by the U.S. government through various means. The primary subsidy historically was the Volumetric Ethanol Excise Tax Credit (VEETC), which provided a tax credit to ethanol blenders1. Although this specific subsidy expired in 2011, other forms of support continue, such as mandates for ethanol blending in gasoline, tax incentives, grants, and loans23.
These subsidies aim to promote biofuel production, reduce dependence on foreign oil, and support the agricultural sector2. However, they have also been a topic of debate due to concerns about their economic and environmental impacts12.
Nice clear details, slightly startling. Thanks.
Once again, I am in awe of this channel. Thank you greatly and I will continue to support this channel.
Brilliant!!😊 Image what we could do if we put that kind of money into electric trains!
Best episode ever! You need to talk to Stop Burning Staff and Our world in data... Great work.
Well done
"Heart of Gold", check.
Red Swingline Stapler, check.
Amazing research as I have been wanting an idea of the fossil fuel industry subsidies. I had never thought it would be in the Trillions let alone $10 Trillion worldwide. It absolutely puts EV subsidies to a shadow of the fossil fuels.
I feel I need to watch this several times to really get a grasp of all of this information!
Thank you and love the sarcasm!
If ever wonder how the U.S.. Federal Government settled on $7500 as an EV incentive? The story goes back to the early 1990's during George H. W. Bush White House Admin (sr, not jr) when a study was requested on the costs that combustion vehicles place on society and to offer as an incentive to stimulate the introduction of EVs. Value was determined to be approx. $10,000 per vehicle (if this was 1993 dollars, it would be equivalent to $12,400 in 2024 money). So when first alternative fuel legislation was negotiated in Congress a value of ~$10,000 appeared in most drafts, but became $7500 in final bills.
From "S.1518 - Alternative Motor Fuels Act of 1988", which focused on alternative-fueled vehicles for model years 1993 through 2004. It included this line of text "Requires the Secretary of Transportation to report to the Congress the results of a study regarding the need to promulgate additional or amended regulations to stimulate the introduction of electric vehicles into commerce."
I've been chanting about ending fossil subsidies in Europe this summer, nice to see a video about it. And I'll continue
The occasional subtle and explicit references to Abigail Thorn are always appreciated ♥🖤
We are both Patreon supporters of her - Nikki
@transportevolved Same! One of my favourite asides you've ever done was "fasc-ination" 😉
I can't remember which video that was from now but I wanted to clip it and just run it on repeat!
@@DevAnubis Oh yeah, sadly that was my fault - Nikki ;)
What many people don't realize is that Kate and I very often edit each other's scripts... and I certainly put sarcasm and snarky into Kate's videos as much as she does mine. But I will admit I sometimes put MORE in hers - Nikki ;)
thanks for this very important video. it would have been lovely to see some sort of graphical presentation of some sort to visualize just how gargantuan the fossil fuel subsidies are compared to renewables and i guess for the focus of this video, EV only subsidies. pie chart, bars, etc. it could have stayed up on the screen the whole time, adding up.
is it possible to do this still as an overlay?
anyway, i appreciate this video, thanks kate and TE.
Thanks
I just came here to state that I too like spreadsheets.
You are a delightful gem. I greatly enjoy the measured wisdom with a nice snarky dipping sauce on the side.
I put 30.00 bucks in our "spare ice vehicle" we don't drive much anymore. Filling up is painful!! Our 2 car family is all ev, but with a spare. Never to be driven again....
EV haters say you can fill it up in minutes, I say you have to put gas in it. Tomato potato
I've loved spreadsheets since I was a child. I was the only one that used Microsoft Excel on our Gateway 2000 from the mid 90s. I tracked my birthday party guest RSVPs on a spreadsheet.
Sorry, but your bit about SUVs not being subsidized is false. Heavy vehicles like trucks and SUVs over 3 tons qualify for tax breaks. This was intended originally for commercial vehicles but has directly resulted in heavier and heavier consumer vehicles in order to meet the weight requirement. This may not be a "direct" subsidy to the vehicle companies but it does mean that all of us non-SUV drivers are helping to pay for 3 ton SUVs, and lining the pockets of the companies who make them.
It is also ridiculous to me that free or cheap leases of government lands for oil prospecting, timber harvesting or ranching is not considered a subsidy.
7:50 +1 Section 179 (& Bonus Depreciation) greatly help offset tax based on GVWR
(It does benefit both ICE & BEV vehicles (along with Hydrogen and Hybrids))*
@@mariano3113 It may benefit EV sales, but it encourages the manufacturing of gigantic EVs with gigantic batteries. This directly results in a slower, more expensive EV transition with a worse environmental impact. And it directly results in less safe, less efficient vehicles across the board.
@@patreekotime4578
It benefits both ICE and EV sales for large vehicles.
Due to weight tier requirements ...all of them end-up making the roads less safe.(Edit* from perspective of weight)
EV large SUVs/trucks having ridiculous acceleration doesn't help.
But then again the EV variants of ICE large SUVs and Pickup trucks tend to also have the shortest stopping distance. (Edit* from perspective bringing the mass to a controlled stop...the EV of similar weight - - having a shorter stopping distance makes it the safer equivalent. However supercar/sports car like acceleration with 6k-11k lb vehicle is not safer for other drivers.)
Cadallic Escalade IQ accelerates and stops faster than the more expensive Cadillac Escalade V. It also travels further 400+ miles range for the IQ vs 384 miles for the V at highway speeds. (Escalade V gets 11city / 16 hwy with 24 gallon tank ...13 mpg combined)
F-150 Lightning was fastest stopping F150 variant.
E-Transit has the shortest stopping distance of same length(size) transit van variants.
So somewhat safer that they stop sooner, but having them accelerate these massive wrecking-ploughs so quickly cannot correlate to being "safe", aside from not slowing traffic from slow merging-congestation.
*Edit* added Cadillac direct link to business Tax credit on Cadillac site
www.cadillac.com/tax-deduction
@@mariano3113 Yes... that is what I said.
the subsidies she was referring to were the fact that SUVs were "defined" by politicians as trucks means that they(meaning detroit) do not have to meet fuel economy and safety standards. detroit is killing us with washingtons blessing.
Air tight analysis, Kate.
Nothing like the feeling of being proven correct that EVs (and frankly any form of social investment) are politically undermined in favour of business as usual.
Odd how the anti-EV diesel shuckers never mention the incentives afforded to companies for their company fuel cards, their executive saloons, vans and bi-turbo V6 Ford Rangers when declaring depreciation as a tax write off....
@@mikewallace8087 and the tender recipients boeing, Lockheed Martin, Northrop, GE, SpaceX, etc...
Excellent overview... thanks, Kate!
Spreadsheets are awsome!
Another well argued video, I learned a lot keep up the good work
He was standing rapping at one of the terminals of Eddie the Shipboard Computer. Zaphod told him.
“What’s it doing?”
“It is trying,” said Zaphod with wonderful restraint, “to make tea.”
“Good,” said his great-grandfather, “I approve of that.”
Absolutely brilliant, Kate. Thank you.
Phew! Thanks Kate. I wouldn't have been able to sit through that without your excellent humour (note how I spell it correctly 😀)
Wonderful intro!
This was excellent informative and entertaining 👏
Great video, also great levels of sarcasm as well.
There are also "hidden incentives". While incentives to oil/gas industry are direct, hidden incentives at point-of-sale are not on the radar. Last U.S. federal tax adjustment for inflation (cost-of-living) was Aug 10, 1993. This was when gasoline cost $1.11 (1993), or $2.49 (2024 inflation adjusted)
Federal gas tax in the U.S. remains at 18.4 cents per gallon for gasoline. 24.4 cents for diesel, unchanged in 3 decades. (Funds designated to upkeep roads and highway infrastructure ... but guess where it went. ; )
Inflation from 1993 -->2024 has been 124%, so $1 (1993) = $2.24 (2024).
So a tax of 41.2 cents per gallon for gasoline and 54.7 cents for diesel should be expected.
Given U.S. consumes over 100 Billion gallons per year; this is one hell of an hidden incentive.
This does not include fuel credits received from ethanol blending, etc. (another hidden incentive, discussed as corn and beet farming).
You were summing the totals for both fossil fuel extraction, refining and vehicles on one side, but only EV vehicle subsidies on the other. Probably should have included renewable energy subsidies on the EV side for a truly fair comparison.
Thank you.
286... Thanks for that, whatever it was... But do Keep Evolving Kate!!! Enjoy Vancouver!
Yay, the bog of eternal stench.
Thank you for being our guide.
CNY 2.1 billion ($325 million)
Tesla may be operating a wholly-owned factory in China, but the company became the most heavily subsidized electric vehicle maker in the country in 2020 nonetheless. Last year, Tesla China received CNY 2.1 billion ($325 million) in government subsidies for new energy vehicles, the highest amount granted to a carmaker in the country.
It’s funny that student debt survives bankruptcy but oil and methane companies can evaporate during bust times and it’s left to unrelated organizations to charitably cap those wells. Something’s broken.
My guess is subsidies are higher per vehicle for EV. Overall, however, EVs are way lower. We will see over these 30 minutes (turns out I was wrong).
Here in Wisconsin, the vehicle registration is higher for electrified vehicles than ICE cars. So the numbers are even more skewed than they seem; which is impressive since the disparity is so big already.
I'm against all subsidies, but if we're going to use subsidies then we at least have to give it to what gives the best return on investment.
Anything that we produce that has negative effects is therefore subsidized and should be accounted for in the price. Good luck with that. Same people that want pharmaceutical companies to lower their prices... even with average profits (9%) well below many other businesses.
Nice job!!
Autoline Daily (8/9/2024) reports that EV sales are tanking in Germany. This is attributed to loss of subsidies. Depending on the results of the US elections, could the same happen in the US if gov’t rescind the EV subsidies as well as mandates?
If an EV car truck van replaces all ICE / Fossil fuel cars trucks vans.. that are used by states federal governments and post offices police departments city governments... what would the savings be over a five year period.. ? My guess is it would be astronomical ! Yet we seem hesitant to do just that / this !
Oh, and we don't want your couch cushion change cuz JD Vance probably left his mark on all of it
What does these oil companies charge the states or federal government for fuels... ? Is it the same as everyone else or is it lower or higher ?
Here's one for ya. Utility companies.. POWER PLANTS... many were leased or sold huge portions of property... where they built power plants and dug huge lakes.. those lakes were paid for by the state and federal governments basically.. yet they now have million dollar homes and golf courses on them that are owned mostly by power company executives and wealthy families... who didn't contribute to the cost via taxes paid... in ! We've subsidized their lifestyles as well...
I think Germany recently said they will have a 6% tax credit (means tested somehow) for EVs in the last few days to make up for the other program running out of money.
Who can imagine a single republican politician knowing or caring about even the easiest issue to understand? I bet not one would watch more then a minute or two of this video... it would break their broken minds.
Re: free parking, a fellow climate advocate argued to our County officials that county employee parking should be managed this way, which I disagree with. Give employees a voucher to either pay for their parking spot, or get paid cash to NOT park and instead use alternative transportation. In addition, his faith in EV's being better/good enough for the climate, EV drivers would get the cash, because their cars aren't the problem. This would of course create a substantial new County cost for everyone that doesn't drive a fossil fuel car to work, with no sunsetting plan, so perpetual cost to county benefit to employees. Or it would result in continued free parking for all employees if they eventually all adopted EVs.
At 30,000 feet, it's a good goal because it helps us all, but the optics would clearly trigger the very vocal fake Tax Payers advocacy groups who enable the election of republicans to our local governments.
Also, the long view is that EVs are unsustainable. So crafting subsidies that encourage the purchase of them is counter to the more sustainable effort of mode-shifting away from personal car use and to mass transit and micromobility.
Have you looked at the IMFs report on the oil subsidies?
2018ish US SPENT 650billion on subsidies 50 billion more than on their military
Russia 515 billion and Chyna spent 1.2 trillion.
2.7 trillion from just those 3 countries, how much from the rest of the world?
Gaghh 1 minute after posting my first part of the comment you talked about the IMF.
WELL DONE.
4 sets of earrings so far in this video and we're not even 5 minutes in!
lets make it fair cut 100% of petrol subsidies. get them to pay to clean up or cap there own wells and not just abandon them for other to do.
give that money to the people so they can buy food and heat there homes
Depending on the US elections, the EPA could cease to exist. If this happens, there would be no federal watchdog and the EPA regulations could fall by the weigh side. Oil subsidies would fund research on where to drill in the world Unregulated oil industry could mean more Arctic and Antarctic drilling. The new US gov’t would ignore treaties on drilling in Antarctica. This could lower the cost of a gallon of gas.
You have ignored the trillions of dollars and many lives spent on fighting wars to protect US oil interests.
Australia a big question mark ⁉️ also high marks for the work
I would like to see a list and cost for all the dictatorships that have been set up in the name of big oil.
Sorry, any discussion of taxation is a discussion about what is already stolen from the payers.
EV subsidies are supposed to help people who can ill afford an EV. This may have contributed to the lucrative repo market as marginally income people default on their loans.
I'm with you on most of this but subsidies don't often favor the rich. They always 100% of the time favor the rich. If you're going to say it, at least be 100% honest about it, not 99.999% and save most of the time.
But but without oil usa armed forces will lose reason to war! What the reason they should use for war? Freedom?
Lithium, cobalt, aluminum, 'rare earth' magnet materials... There's stuff like gold in them thar hills, let's go spread democracy all over it!
Oil is a big reason for the imperialism, but it's not like the hawks won't find other excuses to keep finding unlimited money for bombs and bullets.
@@mikewallace8087 If the infrastructure is gone how do you refine the oil? How do you get it out of the ground? How do you get it to the trucks/tanks/jets?
China uses fudge-tons of coal and oil, they just are also the biggest investor into green/clean energy. Where're you getting this nonsense that China only uses oil for war?
I'm a fan of EVs and this channel, but this video could have used more fact-checking. I looked at the eesi report and it's data and TBH, they really twist the facts to come up with their subsidy number. If you look at the breakdown, the lion's share of the number comes from simply counting every single bit of corporate tax avoidance and general US corporate subsidies as fossil fuel subsidies if done by fossil fuel companies. E.g. The US allows LIFO accounting, in addition to FIFO and cost basis accounting, which turns out to be beneficial to oil producers. But it's also beneficial to some other businesses, like car dealers, yet no one says we have a car dealer subsidy. If oil companies claim a manufacturing tax credit for making their pipes in the US, instead of buying them in China, it's a fossil fuel subsidy. Same for R&D tax credits, subsidized loans through the import/export bank, etc. The US has a LOT of corporate tax dodging and corporate welfare, but it's disingenuous to count them all as fossil fuel subsidies if done by fossil fuel companies.
I absolutely would say we subsidize car dealers. Virtually all legacy industries and many more successfully lobbied newer industries have rafts of subsidies hidden away in arcane ways.
HTH
^Kate
so economist lie for politicians. how much money does big oil pay for that ridiculous definition?
Why do this from your bedroom.I don't get it
Why not? 🤷🏿♂️
I didn't. I mean, the cold open is from the bed, but that's about a minute out of a nearly 30 minute video...
To properly understand politics, you need to break the word down to the source of the word. Poli is Laten meaning many, and tics meaning blood sucking insects.
The video is too cutesy for such a serious subject.
We'll be sure to make them more boring in future, just for you.
^Kate
Ethanol is not good for engines and causes problems.
It's for Flex Fuel engines, designed for it
@@rp9674 not only for Flex engines.
Most gasoline in the U.S. contains ethanol to help boost its octane rating. Here’s a quick breakdown:
- **Regular Gasoline (87 octane)**: Typically contains up to 10% ethanol (E10).
- **Mid-Grade Gasoline (89 octane)**: Also usually contains up to 10% ethanol.
- **Premium Gasoline (91-93 octane)**: Often contains up to 10% ethanol, but in some regions, you can find ethanol-free options²⁴.
Higher ethanol blends like **E15** (15% ethanol) and **E85** (up to 85% ethanol) are also available, especially for flex-fuel vehicles³⁵.
Source: Conversation with Copilot, 9/4/2024
(1) Does Premium Gas Have Ethanol? Unveiling the Truth About High-Octane .... ranwhenparked.net/does-premium-gas-have-ethanol/.
(2) Selecting the Right Octane Fuel - FuelEconomy.gov. www.fueleconomy.gov/feg/octane.shtml.
(3) How Much Ethanol Is in 87, 89, 91, and 93 Octane Gas? - Vehicle Freak. vehiclefreak.com/how-much-ethanol-is-in-87-89-91-and-93-octane-gas/.
(4) How Much Ethanol In 87 - 93 Octane Gas? (Regular & Premium). thedriveradviser.com/how-much-ethanol-in-87-93-octane-gas-regular-premium/.
(5) A Brief History of Octane in Gasoline: From Lead to Ethanol - EESI. www.eesi.org/papers/view/fact-sheet-a-brief-history-of-octane.
(6) Unveiling Ethanol Levels: How Much Is In Your 93 Octane Gas? - AutoPadre. www.autopadre.com/blog/how-much-ethanol-is-in-93-octane-gas.
While I get the point of this video and its subject, this is NOT a fair comparison. You cannot compare oil subsidies to EV subsidies, as one subsidizes an energy source, while the other, a material product, and these are in no way the same. If you want a properly equivalent comparison, then you should be comparing oil subsidies versus electricity subsidies. Comparing the subsidies of a fuel source to a product is a bit disingenuous and, on the outside, highly unbalanced.
A fair comparison would be how much petroleum refineries get in subsidies as opposed to electricity generating plants (then you can aptly compare fuel subsidies).
A fair comparison would be how much of a subsidy you get for a Tesla Model 3 as opposed to a Toyota Camry Hybrid or petrol variant (then you can aptly compare transportation devices).
...you see where I'm going with this?
EVs get tax breaks at purchase. Petrol/Diesel vehicles do not, so to a person who can only afford a Corolla and not a Model Y, those subsidies ARE unfair, as they are not entitled to them, despite both of them being cars. Thats like asking, who charges higher premiums - homeowner's insurance providers or health insurance providers? Sure, both are important things for humans to have a lucid understanding or, but replacing a broken window isn't the same thing as receiving triple bypass heart surgery. If you want to be fair about it, I'd love to see a video on what subsidies are given to which energy provider - oil or electric (wind, solar, nuclear).
Not true. They both involve the entire industries that they are involved in. The fuel source directly affects the usability of the product. People who are proponents of oil and are getting the 7 Trillion dollars a year are extremely worried about a major user of their products being phased out. And are attacking the industry receiving $50b globally by complaining about them getting subsidized. Yeah if big oil didn’t get those subsidies then it would probably cost an ICE owner $25 per gallon in the U.S. how much would your car really cost then?
@@adofoi30
1. "They both involve the entire industries that they are involved in." - the petroleum industry isn't like the car industry. They make pharmaceuticals and plastic as well...try again.
2. "The fuel source directly affects the usability of the product." - I know...that's exactly my point. One's a fuel, the other, a product that USES fuel...try again.
3. "People who are proponents of oil and are getting the 7 Trillion dollars a year are extremely worried about a major user of their products being phased out." - no they're not, because (1) the Environmental and Energy Study Institute's findings are that the U.S. spends approximately $20 billion a year on subsidies to oil and gas, not $7 trillion - hell, the U.S. GDP is only around $27 trillion, so (www.eesi.org/papers/view/fact-sheet-fossil-fuel-subsidies-a-closer-look-at-tax-breaks-and-societal-costs), and (2) ships and planes exist...try again.
4. "And are attacking the industry receiving $50b globally by complaining about them getting subsidized." - The Inflation Reduction Act, signed into law in 2022, provides for an estimated $370 billion in solar, wind and electric vehicle subsidies. Under the Treasury Department rules, companies that pay prevailing wages to workers and hire apprentices for projects seeking IRA tax credits would receive five times the law's base credit of 6%. (Reuters, Inflation Reduction Act)...try again.
5. "Yeah if big oil didn’t get those subsidies then it would probably cost an ICE owner $25 per gallon in the U.S. how much would your car really cost then?" - The same. Last time I checked, the price of fuel did not determine the price of a car. Lamborghini doesn't price Revueltos based on what BP or ExxonMobil sell a gallon of unleaded for. If you want to make this fair, then how much per kilowatt hour does the EV subsidy reduce fuel costs? You won't be able to answer that because you're trying to equate the price of a gallon of fuel to the price of a car, and they're not the same thing, thereby making your response not only illogical but asinine...try again.