Yes, this article is somewhat misleading. First, it's talking about
world wide subsidies, which considering most of the world's oil is owned produced by state owned companies is likely a very complicated calculation.
This article puts US subsidies at between $15 and $35 billion, numbers that include some very dubious things in there, such as construction of the highway system, the strategic petroleum reserve etc.
What people don't seem to understand is the motivation for US subsidies. The US government wants to encourage as much domestic production as is reasonably possible, and they don't want a government entity to have to produce it (like countries with nationalized oil industries do). The only way to do this, therefore, is to make it more attractive for oil companies to extract oil that would otherwise be uneconomical. "Relaxing the amount of royalties to be paid", as the link above calls it, is I believe the main way the US government supports the oil industry.
If these royalties reductions weren't in place, many of the wells in America would simply be uneconomical. The stripper wells mentioned by someone before wouldn't stand a chance, and collectively they account for 18% of US production (according to
Wikipedia). Without deep water credits, much of the gulf production would be an economic non starter (and gulf production is about a third of US production). And the overriding thing that people ignore is that
50% of zero is less than 5% of something. If you force a stripper well producing 2 barrels a day to pay a regular royalty, you're not going to bring in more money for the government, you're going to force that well to be plugged and abandoned, and it's probably never going to be economical to redrill it. Both the government and the industry loses.
It is expensive to extract oil in America's increasingly depleted fields, particularly compared to the younger and much larger oil provinces of the middle east and elsewhere. Because of this, the US government grants the oil industry here better incentives than in those countries to try and keep them in America - simply put, they allow the companies to keep more of the oil they produce. Maybe Americans are no longer comfortable with that deal, but they must remember that hiking royalties
will significantly lower US production and
will necessitate greater imports from unsavory places.