Subsidies to fossil fuel companies: United States crude oil production

The study finds that federal and state subsidies, including tax preferences, make nearly half of new US oil investments profitable at oil prices of USD 50 per barrel. This support could increase US oil production by 17 billion barrels over several decades, contributing up to 6 billion tonnes of CO2 and representing as much as 20% of US oil production through 2050 under a 2 °C warming limit. The authors argue that removing these incentives would align with G20 commitments and provide climate benefits.

• At oil prices of USD 50 per barrel, tax preferences and other subsidies make nearly half of new, undeveloped oil investments profitable, which could increase US oil production by 17 billion barrels over the coming decades.
• The additional oil production enabled by subsidies could result in 6 billion tonnes of CO2 and account for up to 20% of US oil production through 2050 within a carbon budget designed to limit warming to 2 °C.
• Eliminating tax incentives and other fossil fuel support policies would allow the US to meet G20 commitments to phase out inefficient fossil fuel subsidies and generate climate benefits.

APA

Stockholm Environment Institute (2017). Subsidies to fossil fuel companies: United States crude oil production. https://www.sei.org/publications/subsidies-fossil-fuel-companies-united-states-crude-oil-production/

Chicago

Stockholm Environment Institute. Subsidies to fossil fuel companies: United States crude oil production. 2017. https://www.sei.org/publications/subsidies-fossil-fuel-companies-united-states-crude-oil-production/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Subsidies to fossil fuel companies: United States crude oil production |date=2 October 2017 |url=https://www.sei.org/publications/subsidies-fossil-fuel-companies-united-states-crude-oil-production/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2017subsidies, author = {{Stockholm Environment Institute}}, title = {{Subsidies to fossil fuel companies: United States crude oil production}}, institution = {Stockholm Environment Institute}, year = {2017}, month = oct, url = {https://www.sei.org/publications/subsidies-fossil-fuel-companies-united-states-crude-oil-production/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }