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To: Kansas58
Ethanol can survive without subsidies, which BTW are far less than what oil companies get.

It was the fuel that drove machinery before oil, and itr will be again after the oil is gone.

It's not my fault however, that you've been fed and believe a bunch of horse crap about ethanol. Seems people believe what they want to when MSM prints up an article, instead of believing that everything they print is BS that has a political angle to it. And, instead of arguing with me about it, why don't you go look it up for yourself? The FACTS are out there, plain as day. Start here: http://www.ethanolproducer.com/

45 posted on 09/12/2009 12:08:33 PM PDT by Nathan Zachary
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To: Nathan Zachary
NAME the “oil subsidies” will you?

In truth, there AREN'T Any!

The oil industry has accounting rules crafted for it, that make perfect sense, in that an oil well will only go DOWN in value, not UP, as reserves are depleted.

Buildings and other hard assets are not like that!

The oil industry is able to “expense” the drilling costs, known as IDC or “Intangible Drilling Costs” and allocate them per individual ownership percentages, up front.

In the end, this gives the government MORE tax money, as many or most of these wells would NEVER GET DRILLED, otherwise!

When constructing a building, there is little or no risk that the building will not be completed.

When drilling a well, there is GREAT risk, that the well will not be productive.

There is also GREAT risk that, even if productive, the well will not be profitable.

It is best, and less complicated, to allow the losses to be taken up front, and allocated accordingly per share holders or partnership interests in the well.

The, there is the “depletion allowance” which, rightfully, understands that some of the money coming from the well is a “return of capital” and also recognizes that the production from the well will decline over time, even if it is productive.

So, again, tell me why these accounting rules do not make sense?

Of course, you can't.

The Oil industry does NOT get cash subsidies.

The Ethanol industry DOES get cash subsidies.

46 posted on 09/12/2009 12:40:29 PM PDT by Kansas58
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