Wednesday, February 10, 2016

Wednesday, February 10, 2016 -- Off The Net For Awhile

I see we have a new nominee for the 2016 Geico Rock Award. I'm proud to add Ms Janet Yellen to the list of distinguished nominees for 2016. According to the CNBC early morning business show, in the crawler: Economic Outlook Is Uncertain.

2016 nominees are posted here:

It is noteworthy that she made that comment within a day or two of President Obama sending a $4.1 trillion budget to Congress with a plan to pay for increased spending to save the Maldives by adding a global crude oil fee of $10/bbl. I did the math and found that the money raised through that $10/bbl would be no more than a rounding error in a $4.1 trillion bill.

Apparently, President Obama's advisers did the math after reading the blog. They have since raised the $10/bbl proposal to $10.25.

Okay, that's good.


I thought I had posted the math.

The US produces 10 million bopd.

At $10/bbl = $100 million.

Over one year, x 365 = $36,500 million = $36.5 billion. Let's call it $50 billion.

Now, that $4.1 trillion budget.

That's $4,100 billion.

Can anyone tell me the difference between $4,150 billion, $4,100 billion, or $4,050 billion?

That's why they call it a rounding error.

50 / 4,100 = 1%.

But if it will kill the US oil and gas industry and save the Maldives, it it probably worth it.

Disclaimer: I often make simple arithmetic errors. If this information is important to you, get out your own calculator. My calculator doesn't go past nine zeroes. Until recently, that was not a problem.

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