In the op-ed blaming technology companies for rising energy prices (“AI, crypto and Pa.’s war on the little guy,” Sept. 20, TribLive), the authors include an unrelated, passing reference to so-called “subsidies” included in the recently enacted federal legislation dubbed the One Big Beautiful Bill (OBBB).
The authors assert the OBBB “increased subsidies for oil, gas and coal by $35 billion per year.” This claim is based on a recent report from Oil Change International, an organization funded by radical environmental activists opposed to fossil fuel use. Yet even this biased report pegged the increase of “subsidies” at $4 billion annually — not $35 billion.
Upon closer inspection of the OBBB, $1.4 billion are tax credits to sequester carbon emissions in the ground, rather than having them released into the atmosphere. $400 million is to allow investment in carbon capture and hydrogen storage technology. Another $1.3 billion is categorized as a subsidy by aligning royalty rates for federal leases to be more in line with the private sector markets. And another $700 million goes towards canceling a new tax imposed by the Biden administration that would have driven up consumer bills.
If we are to meet growing energy demands while ensuring all consumers have access to affordable and reliable energy, we must encourage an all-of-the-above energy portfolio but particularly American-produced energy like our abundant natural gas resources.
Patrick Henderson
Harrisburg