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Show Page 6b Enterprise Review , March 31, 1976 Renovation of New York Hotel Underway Readers Write by D. Van de Graaff both surprised and pleased to receive feedback I was from continued from page 4b 1 ally oriented, and has a for the restaurant in part and demand for quality perfore positions. The annual mances. We don't know of any will average $250,000. other city that has 12,000 payroll He estimated the restaurant season ticket holders in a will produce $1 million in sales theatre like Pioneer Memorial Theatre," Carrothers said. He annually. We chose Salt Lake City' added the two Tiffany's Attic after looking at several other restaurants in Kansas City Carrothers have operated at 100 percent alternatives," said. Salt Lake City is cultur capacity since they opened. full-tim- Business Opportunity in i Growth Industry previous columns. Admittedly, there has not been a flood of telegrams, letters, or phone calls; but, even a trickle of interest is encouraging. The purpose of this, or any column, is to pass along ideas or information, that may stim- ulate the reader. Several readers have responded by asking questions they were particularly interested in. I am willing to accept this as proof that someone really reads what we write. Armed with questions, I will attempt the answers. Question: Why dont the oil companies invest their money in developing energy supplies, instead of buying other nonenergy companies? Answer: That is a two-part cannot that the the assumption accept question. Owner seeks partner to manufacture low-comotorcycles. st Low liabilities. NET WORTH OVER $150,000 LIABILITIES $30,000 P.O. Box 21325 Salt Lake City, Utah 84121 943-883- 9 First, I oil companies are not investing in energy development. In 1974 (1975 data not complete), the Bank reports that, for its group of 29 oil companies, Chase-Manhat-t- en capital expenditures, invested in the U.S., reached $13.4 billion. Of this, 62 percent was expended on operations related to exploration for, and development of, petroleum resources; 10 percent on transportation, refineries 18 and percent on chemical plants; 4 percent on marketing and 6 percent for other expenses, including lease bonus payments. The amount of money spent in the U.S. to locate and develop additional petroleum resources was more than three times the amount spent as recently as 1971. The $13.4 billion of capital investment in the U.S., during 1974, compares with total U.S. earnings of $6.4 billion for the same period. More than two dollars were invested for every one dollar earned. Concerning the second part of the question: I can only assume that some companies consider it prudent diversification to acquire side operations. This would be true, primarily because of threats to break up the oil industry, or to nationalize it. Corporate managers may be reluctant to put all their eggs in one basket," in view of the possibility of devestiture. 25 percent for transportation, refining, and marketing, 20 percent for excise taxes; and 18 .percent for dealer cost and margins. The oil companies were receiving about 2 cents profit on each gallon of product sold. This profit would be included in the cost of crude oil, refining, transportation, and marketing. If we were to eliminate all profits of the oil companies, the price of gasoline would be reduced about 2 cents. What is the Question: outlook for Nuclear Energy? Answer: Nuclear Energy is out of my field but, Im always willing to give an opinion. Nuclear power has great potential; but, Im afraid will not supply immediate relief from our problems. Construction of nuclear power plants has been delayed in the United States because of environmental and technolo- gical concerns centering around questions of safety, cost and the discharge of warm Question: What is the of a breakdown for water. Siting and operational gallon , com-oil gasoline, including problems will, I believe, continue to delay construction of pany profits? breeder-reaAnswer: The most recent both conventional, and ctor nuclear power figures I have seen are for a plants. In the near future, gallon of regular grade gasoline as of July, 1975. At that nuclear energy will remain what it is, a great potentime, 37 percent of the price just went for the cost of crude oil; tial. Question: How much oil and gas will we get from Alaska? n Answer: When the Pipeline is completed (in Mid 1977), about 600,000 barrels of oil a day will begin to flow. By the end of that year, this will increase to around 1,200,000 barrels a day. When the pipeline is in full operation, we will receive 2 million barrels of oil daily. So far, an estimated 9.6 billion barrels of oil have been disovered on Alaskas north slope. Now that construction of the pipeline is underway, oil companies are busy looking for new oil, and natural gas. One new discovery has already been made near the Prudhoe Bay Field, and other deposits may be found. How much oil we will eventually get from Alaska, we will not know until more exploration has been completed. Question: Will the price of gasoline continue to go up? Answer: It is very difficult to prophesy, especially with regards to the future. Trans-Alaska- I eQMse ntts Date. We think the TV late news is aptly named. So is the Late Edition of your newspaper. Because by the time you get it, it is late. KWMS 1280 doesnt have any late news. Ours is all up to the minute, 24 hours a day. The worlds largest news gathering news team lets you know what is happening around the nation and around the world. And well let you know whats going on around our town with all the news, all the time. 1280 on your AM dial. dont believe anyone knows the answer for sure; but, my guess is that in the short term, prices will not go up much. Actually, gasoline prices have gone down slightly in recent months. Over the long term, several factors may influence include prices. These general inflationary trends, increased demand, policies of OPEC, and U.S. government policies toward leasing, regulation, and taxation. The real answer to this question is: I dont know. |