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Technology Stocks : Orbital Engine (OE)

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To: John M Connolly who wrote (3619)12/22/1998 1:10:00 PM
From: PIERRE HANDL  Read Replies (1) of 4908
 
EPA reported that in 1997 motorists traveled 2.7 trillion miles and the growth will be 2%. (see page 3 for the link below)

epa.gov

Let's assume the average vehicle gets 20 miles per gallon. At 21 miles to the gallon, the total gallons consumed is (2.7 x 10 ^12 miles)/20 miles per gallon = 135,000,000,000 gallons. At 5 cents to to the gallon to pay for refinery upgrades, the cost to the consumer will be approximately 6.75 billion dollars. At 2 cents the cost would be 2.7 billion dollars. The Mean equates to 4.7 billion dollars in the first year. This is no chum change.

Let's look at what it will cost to employ OCP compared to using HPDI and up grading the refinery infrastructure in the US. Let's assume again that the average life of an automobile in the US is 7 years. Over these 7 years the total miles traveled for all vehicles will be 17 billion miles (2.7 x 10^12 miles each year with a 2% growth component) and at 5 cents per gallon, the total cost to the auto consumer will be $42.5 billion dollars or $375 per car(this assumes 150,000 miles per auto life cycle), excluding the cost of the HPDI system. If OCP was used, the cost to the consumer would be only 35 dollars for a royalty fee. This assumes OCP and HPDI equipment costs are equal which is known not to be the case, that HPDI is more costly than OCP under similar manufacturing conditions.

OCP is far less costly to the consumer than the cost to upgrade refineries.
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