Saturday, February 6, 2010

Oilfield Math

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 five million barrels of oil.

Five million barrels is about five hours worth of US consumption.

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

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.

1 comment:

  1. It seems that politicians only know fuzzy math. I like those figures and they sound true to this old math teacher.



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