Oilfiled Math

G

Guido

Guest
Just a repost from another site.
I did not work the figures out on a calculator.


Working in the oilfield with others such as myself and a wealth of combined
experience we understand the accuracy of the following.

Think of it this way:

A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas
a year.

A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons a
year.

So, the average Cash for Clunkers transaction will reduce US gasoline
consumption by 320 gallons per year.

They claim 700,000 vehicles so that's 224 million gallons saved per year.

That equates to a bit over 5 million barrels of oil. 5 million barrels is
about 5 hours worth of US consumption.

More importantly, 5 million barrels of oil at $70 per barrel costs about
$350 million dollars.

So, the government paid $3 billion of our tax dollars to save $350 million.

We spent $8.57 for every dollar we saved.

I'm pretty sure they will do a great job with our health care, though.
 
Guido said:
So, the government paid $3 billion of our tax dollars to save $350 million.

We spent $8.57 for every dollar we saved.

I'm pretty sure they will do a great job with our health care, though.
Click to expand...

That's a great point :beerbang:
 
And also when they trade in that clunker for a new one.The new one will be driven more miles than the old one.So does it really cut down on the consumption.
 
I am biting my tongue!!!

If I get involved in this it will have to go to the podium.. I will however make one small remark.. This is only a drop in the bucket to what the actual cost of corn for alcohol fuel is doing to us... This clunker crap is OVER and done with... the corn for fuel goes on and on.
Betsy:rolleyes:
 
Betsy said:
If I get involved in this it will have to go to the podium.. I will however make one small remark.. This is only a drop in the bucket to what the actual cost of corn for alcohol fuel is doing to us... This clunker crap is OVER and done with... the corn for fuel goes on and on.
Betsy:rolleyes:
Click to expand...

I agree with the Corn for fuel crap.

However, anyone that thinks the intent of Cash-for-clunkers program was to save fuel is way out in left field. The intent was to rev up sales in the auto industry and get the economy moving, and it accomplished its goal. Podium, here we come.
 
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