Where do the large oil companies normally position themselves with respect to fossil- fuel subsidies?
T.M.: The oil companies, in my experience, have mixed feelings. On the one hand, they see benefits to the extent that subsidies can encourage people to consume more oil. But that depends on whether they have to share any part of the cost of the subsidy, or whether the subsidy gives an advantage to nationally owned companies over privates ones. It really depends on how the scheme works. In some cases, the companies actually lose money on the downstream because of subsidies, but they are willing to accept these losses in return for receiving access to upstream resources. Generally, however, the oil industry people with whom I have discussed the issue tend to speak negatively of subsidies. Oil companies normally prefer to work in competitive markets. But of course, where they see an opportunity to make money because of a subsidy, they are not going to complain.
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