Wednesday, December 9, 2009

How much do the Oil Companies pay for the oil as compaired to their profits?

Is the profit greater than what these companies pay to get the oil?How much do the Oil Companies pay for the oil as compaired to their profits?
Fuel prices are impacted by a number of factors, including changes in the price of crude oil, supply and demand, change in fuel specifications, government regulations, taxes, and transportation costs.





Crude oil accounted for about 53 percent of the cost of a gallon of regular grade gasoline.





Taxes (not including county and local taxes) account for approximately 19 percent of the cost of a gallon of gasoline. Additional local county and city taxes can have a significant impact on the price of gasoline.





Refining costs and profits comprise about 19 percent of the retail price of gasoline. Distribution, marketing and retail dealer costs and profits combined make up 9 percent of the cost of a gallon of gasoline.





The oil and gas industry earned 9.5 cents for each dollar of sales in 2006. In the first half of 2007, the oil and gas industry earned 9.2 cents for each dollar of sales.How much do the Oil Companies pay for the oil as compaired to their profits?
A barrel of oil costs about US$115 on NYMEX. I do not recall how many gallons of gas can be produced from the 42-gallon barrel. The price is based on delivery to New York, not your local refinery.





When I googled ';how much gas from a barrel of oil'; the answers varied from 19.5 to 46 gallons. Clearly, the lower estimate is just wrong, otherwise gasoline would cost over US$6 per gallon.
Don't you read the new about billion profit of oil companies made last month. CEO and Presidents of oil companies had to answer with the congress. It was just a joke. Congress men and women have share profits with oil companies.

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