That doesn't exactly explain it. Plenty of states in the oil business derive either significant tax revenue from it or subsidize it for local consumption. As far as I can tell, the US does neither (actually, it pays subsidies for the exploitation).
The Oklahoma state government is grossly incompetent (I grew up here). A few years ago they cut the oil and gas production tax down to as low as 1% for the first 3 years. After a new well has been in production for 3 years the tax rate goes back up to 7%. The problem with that is that most of the production happens in the first 3 years. When the normal tax rate kicks in the wells are mostly dry!
And yet to this day, with the school system falling to pieces, the state government is still debating [0] whether to re-impose this tax on oil and gas producers. Keep in mind that this tax cut directly benefits companies like Devon that have an $18B market cap, as well as other larger out-of-state producers. As a comparison, neighboring Texas seems to tax oil and gas production at 4.6% [1]. It's a very shameful situation.
In my opinion this is the crux of the problem. Law makers have messed up priorities. In an ironic twist some oil and gas producers are even asking for the tax to be raised [2]. Even they know it is too generous.
Doesn't petro-state imply heavy economic dependence on energy sources for government tax revenue? I don't think that's the case in America and if it were we'd see far more federal involvement in the sector even with state run companies and far fewer tax breaks for the industry.
People in places like Wyoming pretty regularly vote for less government interference and regulation of that kind of industry, so I guess they get what they're voting for.
And meanwhile, the rest of the US is extremely car-centric, so we do our part to increase demand for oil.
Oil is definitely important. It's the only good that behaves macroeconomically as if it were essential to everybody, and you're right that organic chemistry, plastics, etc. are not just part of daily life, but irreplaceably so.
That said, half of oil usage in the USA is for gasoline and diesel [0]; another 15% is natural gas produced as a byproduct of extraction. As we drive and fly less, we'll need less fuel. Oil demand collapsed earlier this year [1], and it could collapse over and over again until the industry shrinks to the right size.
I don't think that taxation on oil imports is the right move, because it doesn't limit the USA's oil exports. Instead, we ought to tax oil products, specifically gasoline, diesel, and jet fuel; and use the funds to plan for when oil is no longer as important to us.
Trick of the oil lobby. First you give subsidies, then take them away in one fell swoop. It's very bad for the industry. They pulled the same crap in Nevada.
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