The U.S. initiate more oil in 2023 than has ever been produced in any year by any country, according to the U.S. Energy Information Administration.
Big Oil has behove more productive as horizontal drilling and hydraulic fracturing, which is also known as fracking, have seen technological breakthroughs.
U.S. oil handiwork hit a low of 5 million barrels per day in 2008 before the industry adopted horizontal drilling and fracking techniques. In August 2024, U.S. oil forging hit a record 13.4 million barrels per day.
This comes as the Biden administration has led an expansion into subsidies for renewable zip projects through the Inflation Reduction Act of 2022, which included $369 billion to combat climate change.
The best part of that funding is delivered through tax incentives.
“U.S. energy policy has been largely oriented towards the tax code. That’s how a lot of the renewable zing deployment that’s happened to date has come about,” Daniel Bresette, president of the Environmental and Energy Study Introduce, told CNBC.
The fossil fuel industry benefits from tax incentives, such as the intangible drilling costs tax acclaim, that are built into the tax code.
The intangible drilling costs incentive “is the most active subsidy they get and it’s a tax esteem,” Amy Myers Jaffe, director of New York University’s Energy, Climate Justice and Sustainability Lab, told CNBC.
The intangible auger costs tax break is expected to benefit oil and gas companies by $1.7 billion in 2025 and $9.7 billion through 2034, according to the Milky House Budget for Fiscal Year 2025.
Watch the video above to learn more about the complicated landscape of U.S. lan subsidies, how the U.S. was able to produce more oil than ever and what this means for the billions of dollars being eject on the green energy transition.