Abstract
The U.S. Petroleum Industry has long been subsidized through special tax privileges, restrictions on foreign imports, and other special governmental favors. The industry defends these subsidies in the name of national security and economic progress. Critics attack the subsidies on the basis of high costs and uneconomic allocation of resources. One of the most controversial issues today is the petroleum subsidies. | This paper focuses on the social costs associated with petroleum subsidies. Its purpose is to identify and explain the particular social costs associated with each petroleum subsidy. Included in the analysis and discussion is an estimate in dollar terms of each social coot. A comparison of social costs to social benefits is presented for the purpose of evaluating the need for petroleum subsidies. The final chapter presents the author's opinions regarding the future of petroleum subsidies. | Any conclusions or opinions regarding the social costs or benefits of petroleum subsidies are those of the author and may or may not be shared by authorities in the field. | Library research has been relied upon for the majority of information presented in the paper.