Just read a bit about the massive subsidies the fossil fuels industry receives in the U.S and I was confused. Aren’t these companies one of the most profitable ones in the U.S?
In: Economics
The oil industry makes large amounts of money but has low profit margins. And it is critical to national defense and our economy.
It is in all of our interests to keep the oil flowing. Without it, our lives comes to an abrupt stop.
Last time I looked, the average rate of return on oil capital investments is about 7%. That is a fraction of the Tech sector and the pharmaceutical sector.
The biggest reason why oil is hated so much is the lingering effect of Ida Tarbell and her History of the Standard Oil Company book which exposed the predatory behavior of John D Rockefeller. And the effect of television shows like Dallas.
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