Sunday, September 6, 2009

Cash for Clunkers Savings calculations

Thanks Ramey!


Subject: Fw: Fwd: Cash for Clunkers results




3 Sep 2009 20:

Let's check the math...




A clunker vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of gasoline.


A more fuel efficient vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.



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


They claim 700,000 vehicles – so that's 224 million gallons / year.


That equates to a bit over 5 million barrels of oil.


5 million barrels of oil is about ¼ of one day's US consumption.


And, 5 million barrels of oil costs about $350 million dollars at $75/bbl.


So, we all contributed to spending $3 billion to save $350 million.


How good a deal was that ???



They'll probably do a great job with health care though!!

No comments:

Post a Comment

Just click on the comment button for each post that you are interested in. If you are not a blogger you may comment without a password by choosing the Name/URL button and putting in e.g. your name and then entering your comment in the large text box and then click on the publish comment button down below! :)