BWhite

Metrowest,Ma

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Joined: 06/30/2004

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Diesel is 2.10/gal in Mexico .
http://usnews.rankingsandreviews.com/cars-trucks/daily-news/080602-Americans-Crossing-the-Border-for-Cheap-Gas/
Bill and Patti
Gizmo a Black face Tri-color Pembroke Welsh Corgi
Laci a Red and White PWC
06 Fleetwood Revolution LE 40E
05 Hyundai Elantra Toad
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Cloud Dancer

San Antonio and Livingston TX USA

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Joined: 06/08/2001

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I would not be opposed to crossing the border and filling up with diesel, and bringing back 4 jugs of gasoline. And, I'll do it when I go fishing at Falcon Lake, or Lake Amistad.
Willie & Betty Sue
Miko & Sparky
2003 41 ft Dutch Star Diesel Pusher/Spartan
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The Texan

Summer: A Cool Climate Winter: A Warm Climate

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Joined: 01/16/2004

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Bob & Betsy - USN Ret'd '78 & FL LEO Ret'd '03 
FMCA #F203528
'05 HR Endeavor, 40PRQ w/400 Cummins - With -'05 GMC Sierra LT, CC Z-71, the pusher
'07 Arctic Cat 500A & Wilderness Kayak, riding in the pusher -
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Dshultz50

Oregon

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Joined: 06/23/2006

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I can just see it now.....border patrol getting "gas-sniffing dogs" to regulate the # of gallons we illegally bring across the border...
Dee & Bob
1990 Fleetwood Fifth Wheel
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kids are grown and on their own
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stouffer

N Central, Tx

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Joined: 09/13/2003

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Does Mexico subsidize fuel like China Does?
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Edsassets

Fallbrook, Ca.

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Joined: 07/03/2006

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I live in San Diego County and the stations in Tijuana are all out of fuel. The city buses cut back from driving 12 hours a day to 6 hours. Some truckers have been waiting for 3 days now to get fuel.
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tatest

Oklahoma

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Joined: 05/14/2005

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stouffer wrote: Does Mexico subsidize fuel like China Does?
Yes, but probably not the way you think they do. They don't go into the pricing exercise saying "we plan to lose $1.30 a gallon on what we sell" or "just how little can we afford to make?" It is more like "what price can we set that will not cause a revolution."
Performance of management in state-owned companies is more often measured by production rather than economics. It matters more to the government whether or not production targets are reported as being met or exceeded, they don't pay a lot of attention to whether or not the company is making money. Some countries don't do cost and benefit accounting for "strategic" investments; even when there is accounting, the cost of capital is often ignored or heavily discounted, and sometimes day to day operating costs (like manpower) end up in some other part of the state budget.
This sort of thinking makes it very interesting working on joint ventures with state-owned companies in developing countries. We have to look at a project economics "can we earn xx% on our investment in yy years at a price of $zz per barrel?" The state-owned company is looking at "can we produce xx barrels per day at a cost lower than what we would pay to import the oil." Somehow, we come to terms, or they take over the project and we write off the billions we paid up front for exploration leases, seismic surveys, exploration and appraisal wells, and engineering design for the development.
Tom Test
Itasca Spirit 29B
2001 Ranger Edge
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