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Politics : Formerly About Advanced Micro Devices
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To: Road Walker who wrote (244406)8/1/2005 11:31:41 AM
From: Elroy  Read Replies (3) of 1576111
 
The point is that that they already have such windfall profits, that the incremental incentives are not going to make any difference in their total exploration budget.

?? If their cost of exploration goes from $3 per barrel now to $1.50 per barrel after passage of the bill, you don't think they are going to increase exploration? Explain that to me.

It has little to do with current profit levels, its a redution in an expense. Reduce the expense by half and hold everything else flat, and they are going to be willing to incur twice as much of that expense (twice as much exploration) and stay where they were prior to the bill.

Funding for alternative energies may be fine, and tax cuts for fuel efficient cars may also be fine, but it doesn't change the logic that making exploration cheaper encourages more exploration by the explorers.
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