Funding Energy Infrastructure Funding - 1549 Words

Funding Energy Infrastructure Funding TSD nationally presents significant challenges due to the diverse types of infrastructure, geographic distribution, and variety of owners/operators. i. Petroleum Funding transportation infrastructure that supports petroleum requires leveraging funding from the Federal government as the primary revenue source due to its geographic dispersal across the nation. A multi-tiered approach must be taken to ensure that infrastructure is properly identified and prioritized for funding; the Federal government needs to set the foundation for infrastructure investment through tax revenues, tax incentives, and policy, while incorporating expertise from State, Local, and private sector partnerships. Public-private partnerships are key in establishing national policy to fund the revitalization of petroleum infrastructure, especially considering that the infrastructure is largely owned by the private sector. The risk-adverse nature of the sector and the current market environment lacks incentive for significant private sector investment. To counteract this behavior, government partnerships can aid the private sector in reducing economic risk through loans, grants, and tax breaks. Government funding through grants and loans is particularly important given the low profit margins in U.S. petroleum in the current market. Many infrastructure revitalization and replacement plans have high upfront costs that are often too high a risk for the privateShow MoreRelatedSeeking A Solution For Indonesia s Infrastructure Gap Essay950 Words   |  4 PagesIndonesia’s infrastructure gap After the 1998 crisis, Indonesia’s economy is known to be quite resilient with a persistent positive economic growth. However, Indonesia is still suffering from an infrastructure gap. Underinvestment in infrastructure, mainly in transportation has left the country with huge burden of logistic cost for the people. 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