Archived posting to the Leica Users Group, 2008/10/29

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Subject: [Leica] Re: euro vs dollar and leica
From: mads.christensen at gmx.net (Mads Christensen)
Date: Wed Oct 29 23:42:40 2008

It has been quite amusing and not too unsurprising to read many of the 
postings from my fellow US LUG'ers under the above heading.  

A significant number of messages have revealed that some US LUG'ers seems 
unaware of the cost structure of the gasoline and diesel that they are 
paying for at the pump. Thus I should like to share with all LUG'ers the 
information that is available from the US Energy Information Administration, 
EIA:

http://tonto.eia.doe.gov/oog/info/gdu/gasdiesel.asp 

Hence as of Sept 2008, the average US retail gasoline price was US$ 3.70 a 
gallon with taxes making up 11%, distribution and marketing 8%, refining 14% 
and the crude oil alone 67%. Some time ago, I came across information about 
the US retail gasoline prices during 2001-07. In those days it was on 
average 1.91 dollars with taxes making up 24%, crude oil 48%, refining 16% 
and distribution plus marketing 12%. 

In most European countries we have quite a different cost structure. I 
cannot offer fresh data from 2008 but in Denmark only 40 percent of the pump 
price ended up in the pockets of the oil companies in 2006. Another 40 
percent was made up by various energy and environmental taxes including a 
CO2 levy and 20 percent VAT.

Thus it is obvious that the US consumers do not have as much cushion as most 
Europeans against the fluctuations in the pump price that originates from 
the crude oil price fluctuations but then again you can't have it both 
ways...  

Please allow me to use this opportunity to spike a few more facts into this 
debate by posting the 3 clippings below. They are from the latest review of 
US energy policies that was published in Feb 2008 by the Paris-based energy 
watch dog, the International Energy Agency (IEA):

1.         Two key issues are affecting all debates on the future energy 
supply of the United States. One is how to increase energy security by 
reducing the currently growing dependence on imported supplies. The other is 
how to address growing emissions of greenhouse gases (GHGs), notably whether 
and how to introduce a consistent value on CO2 emissions. These two 
challenges are closely connected. The United States is the only major IEA 
member country where the share of fossil fuel consumption in total energy 
supply is expected to increase and one of the few without a policy designed 
to internalise the external cost of CO2 emissions. 

2.         The US transport sector will be a key to a sustainable success. 
In the short to medium term, reduced fuel demand through higher vehicle 
efficiency will increase security and reduce CO2 emissions. Bringing fuel 
efficiency standards to levels more in line with other countries would 
significantly reduce growth in oil demand and thereby help energy security, 
and relieve the tightness in international oil markets. Yet the policy for 
the revision of CAF? (the corporate average fuel economy) standards will 
leave US consumers with vehicles that fall short of the technological 
possibilities. And they will provide the US consumers with vehicles that are 
far below the fuel efficiency standards in other IEA member countries and 
even in important non-IEA member countries such as China and India.

3.         A source of uncertainty is the lack of close co-operation on this 
question between the government institutions in Washington, most importantly 
the Administration and the Congress, and between the federal government and 
the states. In Washington, the different policy agendas and the approval 
procedures for energy R&D funding are hampering the smooth long-term 
development of solutions to the energy challenges in the United States.

...Some very interesting observations, if you ask me.

On a final note, I should like to ask if someone can please explain why most 
Americans ? as far as I have noticed during the very long run up to next 
Tuesday - seems to be more in favour of opening up for oil exploration in 
the whole Arctic area including your own ANWR than in opening up new areas 
of the outer continental shelf (OCS) of the lower 49s for exploration and 
production, and in developing new unconventional resources of oil and gas in 
the Rocky Mountain states. And please also explain why, on the other hand, 
most Americans seem more in favour of protecting Detroit than their own 
local environment?

Mads

 

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