Fossil Fuels Get Billions More in Subsidies Than Renewables: IEA

The big headline out of the International Energy Agency’s annual World Energy Outlook  Monday is the projection the U.S. will  overtake Saudi Arabia in oil output  in less than a decade.

The forecast comes as the U.S. has reversed its declining oil production with domestic oil output from Occidental Petroleum OXY +0.05%, Devon EnergyDVN +0.24%, Chesapeake Energy Corp. CHK +0.71% and Southwestern Energy Co.SWN -0.29% and many others.

Just as the U.S. kicked off the oil industry in Pennsylvania more than 100 years ago, it’s a pioneer once again, unleashing vast amounts of oil from fields such as the Eagle Ford of Texas and the Bakken of North Dakota with newer techniques such as horizontal drilling and hydraulic fracturing.

With the potential to deploy these practices to boost oil output around the globe, the push for renewable energy is losing out in the competition for government support.

The same IEA report also said fossil fuels attracted about $523 billion in government subsidies in 2011, up by 30% from 2010.  That compares to $88 billion for renewable energy.  The heaviest subsidies typically take place in parts of the Middle East and Africa, the study said.

While the IEA projects renewables such as wind and solar will move to the world’s second-largest source of power by 2015, it’s warning that a major shift away from fossil fuels won’t happen in the next 20 years. For environmentalists hoping to cut the world’s output of carbon dioxide in an effort to reduce global warming, this isn’t encouraging.

“Many governments and businesses are clearly in denial over the threat posed by climate change and need to accept that we have to start leaving fossil fuels in the ground rather than dashing to develop new reserves,” said Keith Allott, head of climate change at the WWF U.K.

But with rich short-term returns from the sale of fossil fuel and the developing world demanding more, all signs point to increased oil production for now.

– Steve Gelsi

@mktwstevegelsi

http://blogs.marketwatch.com/thetell/2012/11/12/fossil-fuels-get-billions-more-in-subsidies-than-renewables-iea/

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just what we need!  And the climate situation in 2035?

http://www.coalguru.com/other_region/opec_sees_coal_use_increasing_in_coming_decades/5158