Oilfield Math WOW!

Comment #3

jarasan — Fri, 26 Feb 2010 14:09:39 GMT

Thanks Konane! They are at least consistent in their disregard for economic sense and the American people.

Comment #2

konane — Fri, 26 Feb 2010 13:56:28 GMT

I read and believe posted in my blog that 'Cash For Clunkers' was an idea conceived by the Chinese government for the US to pay China with scrap metals in lieu of our Federal Reserve printed fiat dollars. Therefore Washington didn't care if it made economic sense for taxpayers.

Comment #1

jarasan — Fri, 26 Feb 2010 03:47:43 GMT

The only mistake I see is the direct ratio of barrel of oil to 60 gallons of gas roughly, each barrel of sweet gives up about 20-30 gallons of gasolinso it's actually 10 million barrels of oil bringing it to 700 million.................still a great deal spend 3Billion to save 700Million! spending $5.00 for every $1.00 saved.

Original Blog Entry: Oilfield Math WOW!

jarasan — Fri, 26 Feb 2010 03:41:39 GMT

I just got this and it looks correct.

Oilfield Math

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.

How's that working for you. Amazing.

Now they tell us they will do a great job with health care reform making it more affordable, cost effective, and cover more people.

They have got to be kidding. Clean house in 2011 and elect someone who knows what a calculator is.

... [ More ]