Light Bulb Ripoff

[Rastus]

Yes, our current rig count is around 664 working down from 2,000.  We peaked around 4,500 in 1981 and stayed on the 850-1,000 range until around the year 2000 then up from there.  We're more efficient now and need fewer rigs on diminishing opportunity with the technology we have for unconventional pay (shale plays).  Rig count graph in link below:

http://www.eia.gov/dnav/ng/hist/e_ertrr0_xr0_nus_cM.htm

No one responsible in the business, except the bankers and lawyers, ever wanted oil to shoot above $85 a barrel.  That always causes problems with oversupply and lots of lost jobs.  $60 to $85 and we can make do instead of over 300,000 people without jobs today.  Problem is that so much money goes overseas and our "oversupply" of 5 million extra barrels a day over what would have been without "shale plays" has helped in propping up the Obummer administration. 

When the price of bottled water is more than capital intensive oil that tells you something.  People want to pay for what they want...not what they need....I get that.  But it would helps to have a floor price for domestic oil...say $50...Congress could do that with tariffs.  That would stick it to the Arabs because we would ramp our production up more and cause a real oversupply in the world.  They's be selling it for $20/bbl all day and the government could scoop up $30/bbl on a tariff. 

But we'll do what we've been doing.  Remember, 42 gallons in a barrel so the stock for gasoline is only 80 cents/gallon, add maybe 20 cents for refining.  Of that 80 cents 20 to 22 cents goes to the mineral owner and 7 cents to state severance taxes.  Wonder who is making the big bucks on it without the huge capital investment when you pay $1.50/gallon at the pump??

[Bill Stryker]

Wouldn't you be better off just running a 1,600 watt electric heater instead? I have one of those oil filled, electric radiator type heaters, and it puts out a lot of heat. I know it uses less than 1,600 watts. 1,500 watts I think on the highest setting. It's got to be better than using light bulbs.

I know you are right about the heater. Thank you.

But the heater would not provide the light for working in the garage. And would be another piece of equipment -- impedimenta -- that my kids would have to put out on the curb someday…… There are very few nights that I have to use the bulbs to heat the garage. It was 48 degrees in the garage this morning with out using the lights. I only turn the lights on when it gets into the LOW teens or below zero. I have only used 4 of the lights so far this year on one or two occasions.

Thanks again for your thoughtful reply with very good advice. I just wanted to provide you with the rest of the story.