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How to make 25 Billion Dollars - Gas Prices

Discussion in 'Political Debate & Discussion' started by SpiritualMadMan, Apr 29, 2006.

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  1. SpiritualMadMan

    SpiritualMadMan New Member

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    I've been following this as best I can and I didn't know that the profit margin on gasoline was one of the lowest for any sold commodity in America...

    That the profits are partially due to the high volume of sales...

    Let's say you make $0.26 a gallon in profit (9 percent), but sell a 100 million gallons you make, say, $25,650,000. That's a lot of gasoline.

    To get $25 Billion in profits... Takes an amount of gasoline that is mind boggling... Like 100 Billion gallons! (If my math is right.)

    So, for a 90 day period that would be 200,000,000 drivers burning an average of only 6 gallons a day...

    I've got a spreadsheet set up if anyone has some "more" real figures to work with...

    Now as to whether I *really* believe the markup is only in the 9 per cent range... [​IMG]

    Mike Sr.
     
    #1 SpiritualMadMan, Apr 29, 2006
  2. KenH

    KenH Well-Known Member

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    Oil companies generally net about $.05/gal. to the bottom line for each gallon of gasoline sold.

    The bulk of the record profits come from the upstream end of the business, at the wellhead.

    For example, the lifting costs for oil are approximately $20/bbl. So a couple of years ago when oil was at $40/bbl. on the NYMEX the profit was $20/bbl. Today at $70/bbl. on the NYMEX the profit is $50/bbl., or 150% higher. That's where the lion's share of the record profits come from.
     
    #2 KenH, Apr 29, 2006
  3. KenH

    KenH Well-Known Member

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    By the way, a busy station will sell around 200,000 gallons a month which would be a net profit for that station of $10,000.
     
    #3 KenH, Apr 29, 2006
  4. SpiritualMadMan

    SpiritualMadMan New Member

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    Correct me if I'm wrong Ken...

    But, don't all those "Lifting Profits" mostly go to the foreigners who supply most of the world's oil?

    Not, neccesarily the US Oil companies. I mean aren't most of the Foreign Oil Supplies "Nationalized" under government control?

    So, why isn't the Oil indsutry more vocal in making it's case to the public about off coast and ANWAR drilling?

    Mike Sr.
     
    #4 SpiritualMadMan, Apr 29, 2006
  5. saturneptune

    saturneptune New Member

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    If the oil executives ever concluded that they could rob the American people more than they already are by coast and ANWAR drilling, you can bet that they would be screaming and jumping up and down for their congressional buddies to pass, its all about money.
     
    #5 saturneptune, Apr 29, 2006
  6. SpiritualMadMan

    SpiritualMadMan New Member

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    SN,

    *Everything* but Salvation is about MONEY...

    Even Communist and Socialist systems are based on MONEY no matter what rhetoric they espouse...

    I am sure Ken will tell us that the Oil Companies *have* been lobbying for access to ANWAR...

    And, in state legislatures for off-coast drilling...

    But, the incredibly shrill and illogical emotion stirring enviro's have effectively blocked such things because they've already managed to get blocking laws on the books...

    Getting a law off the books is pretty hard...

    Just take a look at some of the 1800's laws still on many states law books. [​IMG]

    The laws were, for the most part, passed with good reason and intention...

    But, until the rich politicians are "touched" they ain't coming off...

    My Two Cents Worth of a Rant...

    Mike Sr.
     
    #6 SpiritualMadMan, Apr 29, 2006
  7. KenH

    KenH Well-Known Member

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    There are agreements that specify how much various parties get. For instance in the offshore U.S. the oil companies generally receive 5/6 of the proceeds and the Mineral Management Service(MMS) receives 1/6.

    Only about 1 of every 3 wells drilled discovers a commercial quantity of oil. And drilling is more expensive as we drill in deeper water offshore and go further into the earth.
     
    #7 KenH, Apr 29, 2006
  8. KenH

    KenH Well-Known Member

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    Please provide proof of such "robbery" or else cease bearing false witness.

    You socialists are sounding more and more lame with your mindless populist poppycock.
     
    #8 KenH, Apr 29, 2006
  9. KenH

    KenH Well-Known Member

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    Yes, the extremists among the environmentalists have done great harm to the energy security of our nation.
     
    #9 KenH, Apr 29, 2006
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