Ferrari Mailing List: Re: mileage -some are more equal than others[NFC]

[Rick Lindsay (rolindsay]

   Well stated Britt!  I'm for reducing government's
power any way possible.  The market place is the only
way to change behavior.  I love your fat-people
paradigm.  It makes your point perfectly.  No amount
of "this product will kill you" mandated labeling or
disclaimers will do one bit of good.  Those are just
crutches for the lawyers.  In fact, most of the
mandated federal strangle holds do no good at all. 
That doesn't meant hat they don't generate money for
the government.

   Yes, I work in the oil and gas exploration
business.  I can assure you absolutely that oil is
getting VERY much harder to find.  The easy stuff is
discovered and much of it is gone.  The usual excuse
offered is Saudia Arabia's seemingly inexaustable
supply.  I find it interesting that if you review the
historical information released from Saudi, you will
find that the amount of oil reserves the Saudis report
EXPANDS as demand increases.  In short, the Saudis
report any number the market wants to hear!  The
actual reserves, while once huge, is nowhere as
inexhaustable as most people are lead to believe.
   Let's add another issue.  The oil I explore for
today is located in the Gulf of Mexico in water depths
of 3000-7000 feet!  The reservoirs are at depths up to
30,000 feet.  Wells cost about $100,000,000 each with
a chance of success of about 25%.  That
hundred-million dollar cost is called the "dry hole
cost".  That's what it is going to cost you if you
DON'T find oil.  If you do find oil, the cost of
development may be another $400,000,000!  
   Okay, the oil company has invested a HALF BILLION
DOLLARS and the first drop of oil has not entered the
pipeline.  Elapsed time is 6-8 years from
"recommendation to drill" until "first oil".
   The areas where we drill have to be leased from the
federal government.  Leases range from $150,000 to
over $50,000,000, purchased by sealed bids!  Of
course, the federal government gets the lease money. 
The leases last for 10 years.  The federal government
also makes a 1/8 or 12.5% royalty on all oil produced!
   Okay, most oil companies do not market gasoline. 
We just sell our product into the pipelines and it
heads off to the refineries - not our refineries.  Of
course, the only profits that get announced are those
of the ExxonMobile's and the other companies that
explore AND market the fuel.  It makes better
sensational news.
   We make our profits - the profits that are returned
to the shareholders and invested in finding that next
drop of oil - from the sale of oil (and gas) into the
pipelines.  The refineries, already archaic, in
decline and running at capacity, are another bottle
neck.  Another way of putting that is to remember that
in any market, the bottleneck controls the supply -
and demand sets the price!
   Erase this note before you read it because it has
NFC. :-o
rick


--- Britt2Asa [at] aol.com wrote:

> In a message dated 24/06/07 06:33:34 GMT Standard
> Time, johnallison [at] gmail.com 
> writes:
> 
> > What really gets my goat is how such legislation
> will not effect the
> > goals of reducing emissions.  Not really.  It will
> take a change in
> > what the population wants.  If every one wants and
> is willing to spend
> > money or, a Hemi, or F450, then these standards
> are only going to hurt
> > manufacturers that HAVE to build small cars to
> their own loss.  I
> > guess the sale of F450s could subsidize the
> manufacture of cars that
> > will be sold at deep discount to others.  But
> should we force such a
> > model on the manufacturers when it is not
> necessary?
> > 
> 
> I believe the argument about climate change, running
> out of petroleum 
> products, and the need to be more energy aware has
> been accepted by the government in 
> the USA. It certainly has been accepted by all the
> European governments so if 
> you accept this debate is done and settled the
> argument is how to drive it.
> 
> Either tax people into more fuel efficient cars or
> force the automakers to 
> build them. Note the automakers are not stating that
> a "green agenda" is a bad 
> thing nor are they saying fuel savings are a bad
> thing; they just want to be 
> free to build what they want hence they feel raising
> fuel taxes is the best way 
> to drive people to smaller cars. The government
> knows that raising fuel taxes 
> is a sure fire way to NOT GET re-elected (can you
> imagine any candidate 
> supporting higher fuel taxes in the current me me me
> environment we live in?) so 
> they want to force the CAFE standards to achieve the
> aim.
> 
> As I said its pretty much accepted that starting to
> be enery aware and saving 
> energy and resources is a given, the argument is how
> to achieve this. On 
> their own do you think people will really do whats
> best for the planet? I don't; 
> if the individual consumer was really worried about
> whats best for themselves 
> and the rest of society you wouldn't have the
> society you see today...heck just 
> look at the size of the people around you and see
> what an abundence of food 
> means...people just eat more regardless of there
> health.
> 
> BR in the UK
> 1986 328GTS (LHD 89,940km) Died August 19, 2006
> Shrewsbury UK
> 1980 400i (RHD 72,000 miles)
> Searching for the right 512TR
> 2003 BMW 530d   
>
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