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iBoaterer[_3_]

In article ,
says...

On Mon, 29 Apr 2013 21:57:50 -0400, iBoaterer
wrote:

In article ,
says...

On Mon, 29 Apr 2013 17:44:28 -0400, "F.O.A.D." wrote:

On 4/29/13 5:28 PM, wrote:

If this is such a great process, why does the government have to
subsidize every gallon by 60-70 cents?

Why does the government subsidize "Big Oil"?

Mostly to get them to exploit "old" wells here and reduce our imports
of foreign oil.
As a per gallon rate it is still minuscule compared to ethanol.
US oil production is about 2.3 billion barrels a year and a reasonable
guess on subsidies is $5B so it is about a nickel a gallon for the
crude, spread over whatever products they produce, from gasoline to
plastics and road tar.
You can't even include the military cost in North American oil
production subsidies.

Hooboy....

Your worst case guess of the subsidy was $15B or so. That gets it up
to 15 cents a gallon.

If you want to spread that $15b over all of our imports plus domestic
production it gets closer to a penny a gallon.

I guess the hooboy is just what you say when you are wrong.

The hooboy is your ASSumption, without justification of course, that the
government subsidizes oil companies to exploit old wells. Of course, it
doesn't matter, the government is subsidizing big oil, you seem okay
with that, but ethanol? Of course not, it's that damned NEW stuff.