Enemies of Energy: 'Fossil fuel' subsidies Opinion - Conservative

In a 2014 interview, billionaire investor Warren Buffett made this observation about federal energy subsidies: [i] I will do anything that is basically covered by the law to reduce Berkshire's tax rate. For example, on wind energy, we get a tax credit if we build a lot of wind farms. That's the only reason to build them. They don't make sense without the tax credit. [ii] According to the U.S. Department of Energy, 91 percent of all the energy used in America in 2024 was generated from hydrocarbon and nuclear fuels. We are not unique: Our World in Data reports that more than 85 percent of the planet's energy consumption comes from these four fuels.[iii][iv] During a 14-year stretch from 2010 through 2023, according to an October 2024 report from the Texas Public Policy Foundation, hydrocarbon and nuclear fuels combined received $79 billion in federal energy subsides. [v] That report also shows a far larger subsidy of $141 billion combined for wind and solar energy development over the era. [vi] Similarly, in September 2023, energy journalist Robert Bryce compared federal subsidies against the energy produced by each system subsidized for 2022. He found that solar power received 302 times more in tax incentives per British thermal unit (Btu) of energy output than nuclear power, and 136 times more than oil and gas. Wind subsidies were 69 times more than nuclear and 31 times more than oil and gas. [vii] And all of this is just a partial look at the huge corporate subsidies that have been dedicated to weather dependent energy systems. The federal wind and solar credits for commercial energy developers were first enacted way back 1992.[viii] [ix] Wind power contributed just 1.6 percent of total American energy in 2024 and solar just 1.2 percent. For comparison, the Department of Energy claims the burning of wood and other biomass was good for 2.3 percent of total energy output.[x] [xi] So, after more than three decades of outsized federal subsidies that were supposed to turn wind and solar into the fuels of our future, they are still unable to rival the output of an energy option that has existed since we first harnessed fire 400,000 years ago. [xii] *** PDF hyperlink to full report Endnotes