To all that complane about the price of gas I thought I would give you a breakdown from the department of energys statistics, so you can calculate what it should cost yourselves....

57% is the cost of the crude oil

8% is the cost of refineing

15% is the cost of transporting it, and marketing

20% is all TAX

thats the cost to produce the gas, and get it to the station, the remainder of the cost is local costs from the individual station, and finnaly profits for both the station, and the oil company, to figure out how much that is just take the current cost for a barrel, of oil, cut it in half, then divide it by 27.5 (only half of the oil is actual gas the rest is everything else so half of a 55 gallon drum is 27.5 gallons so first cut the cost of a barrel of oil in half since only half is actually gasolene, then divide by 27.5 to get the cost per gallon....), and that will give you the bare cost of the fuel thats ignoreing the refineing, transport, and marketing, taxes, and everything else thats the price for the raw product, the price can not go below that even if there were no other costs, this is 57% of the cost to produce the gasolene so now that you know what 57% is you can figure out the rest....

Cost of a barrel of oil divided by 2 divided by 27.5= A A=57%

A+8%+15%+20%=cost to produce

or A divided by 57x100

So if oil were $60 a barrel then the cost to produce is $1.91 per gallon, thats only the national average though the furthur away you are from the refinery, or if refineing is disrupted it goes up....

Now subtract the cost to produce from the cost of gas to get the local overhead, any other costs, pump taxes, and finnaly profit, unfortunetly it's imposibal to know how much local, overhead, and other costs are without asking, but taxes we do know the federal tax is 18 cents per gallan, then theres the state tax in Michigan for example it's 28 cents, so thats 46 cents a gallon more on top of the other taxes that were already collected so it's actually 46 cents plus 20% of the cost to produce just in TAX, add to that every area of the country requirs it's own special blends to satisfy it's own local environmentalist wackos, there is a seperate summer, and winter blend, some areas are required to mix in ethenol to satisfy the environmentalist wackos which is more expensive than gas, they used to be able to use lead to boost the octane, but the environmentalist whackos got it banned, now they have to use chemicals which are alot more expensive, and we haven't built any new refinerys since or built any new Nuclear plants since the 1970's (some power plants use oil....) because the environmentalist wackos won't let us , the actual profit margins are actually alot lower than you think....  Now take the cost of gas at your local station, and subtract the cost to produce, useing the example above $1.91 the national average price per gallon now is $2.28 I think, now we get 37 cents now subtract the 18 cent Federal Tax to get 19 cents, now subtract your state tax, and whatevers left over is the local over head, other costs, the local profit, and the oil companys profit....

This is in responce to all those people not nessesarily on this board who like to blame the prices on the "evil corporations", I find it ironic that alot of these people are the same tax and spend Liberals, and environmentalist whackos that are responsibal for alot of the higher price, and won't let us drill in ANWR (which has about as much oil as SAUDI ARABIA....) to lower the price....

Oh and John sKerry wanted to impose an additional 50 cents per gallon of tax....

Once a product becomes perceived (rightly or wrongly) as a NECESSITY it is no longer subject to the vagaries of the market but becomes a touchy feely "right" and the price must be "fair".  

Your facts become irrelevant, rhetoric rules the day.

A Kennedy might say "we need to have state controlled gas stations, it's a civil right".  When they fuck it up as bad as health care we'll really be sorry.

Quoted: 15% is the cost of transporting it, and marketing

Marketing? Like they need to convince people they need gas?

Transporting? That would seem to me to be a pretty varied cost. From the refinery to the gas station 1 mile away? Isn't this why gas in NJ is cheaper?

Why is gas sold in stations at highway rest stops more expensive when they're probably the easiest to get it to?

Everything else seems fair enough.... good info... thanks for posting it.

That whole "Record Profits" thing is just a fluke then?  (Not that profit is bad in any way at all).

We should be doing all we can to make corn diesel or whatever the hell that stuff is.

Quoted: We should be doing all we can to make corn diesel or whatever the hell that stuff is.

methanol.....FUCK YEAH!!!!!!!!!!!!!!!!

I just watched a show, could have been Extreme Machines, or something like that.  It showed the building of one of the largest double-hull tankers ever supertankers.topcities.com/id127.htm.  Can't remember the exact cost to build but it was in the 100's of millions.  After 4 trips from the Middle East to the Gulf coast the ship was paid for.  

Anyone want a group buy on the ARFCOM supertanker?

Quoted: Quoted: 15% is the cost of transporting it, and marketing Marketing? Like they need to convince people they need gas?

Yes Marketing.
They don't need to convince people they need gas, they need to convince people that they need a specific brand of gas.
You've never heard or seen an ad for gas?

Quoted: Quoted: 15% is the cost of transporting it, and marketing Marketing? Like they need to convince people they need gas?

Like those annoying adds BP keeps putting on TV, trying to convince the environmentalist wackos that BP is saveing the planet, the cost is also lumped in with transporting....

Transporting? That would seem to me to be a pretty varied cost. From the refinery to the gas station 1 mile away? Isn't this why gas in NJ is cheaper?

Correct, the figures above are the national average, the price increases or decreases depending on how close you are to the refinery....

Why is gas sold in stations at highway rest stops more expensive when they're probably the easiest to get it to?

Convenience, the owners of those individual stations feel like they can get away with charging more, gas stations are franchises like McDonalds theres no standard prices, each owner sets there own....

Everything else seems fair enough.... good info... thanks for posting it.

Thanks, and your welcome....

Origionaly Posted By nightstalker: Once a product becomes perceived (rightly or wrongly) as a NECESSITY it is no longer subject to the vagaries of the market but becomes a touchy feely "right" and the price must be "fair". Your facts become irrelevant, rhetoric rules the day. A Kennedy might say "we need to have state controlled gas stations, it's a civil right". When they fuck it up as bad as health care we'll really be sorry.

Exactly look at what there paying in Europe where it's government controled, it's about $5 a gallon, and up....

Origionaly Posted By sq40 That whole "Record Profits" thing is just a fluke then? (Not that profit is bad in any way at all).

People just used more gas even if they just make 5 cents per gallon, or even 1 cent per gallon multiply that by millions of gallons a day it comes out to a lot of money....

Origionaly Posted By Justa_TXguy: We should be doing all we can to make corn diesel or whatever the hell that stuff is.

Unfortunetly right now it's more expensive then gas, and theres no way we could make enough even if we planted the entire surface of the Earth with Corn, what we have to do is drill for more oil like in ANWR....

I think there might be an error in your calcs..

What are the remaining components of the barrel of oil?  

Say we import 100 million barrels of oil and only 1/2 is useable as gasoline...what happens to the remaining 50 million barrels?  Not sure what the remaining fractionation of the gas becomes (some can go as plastic)....that would have to be factored into the "cost" of the gasoline.


Additionally--"

8% is the cost of refineing 15% is the cost of transporting it, and marketing

"

I would have guessed that these are relatively fixed costs...it costs $100 to refine 1000 bbl oil and $100 to transport and market it...now, as the price of gas goes up, it does cost more to drive the truck, but the $$/mile paid to the driver, the cost of the truck, etc. are relatively fixed.

AFARR

Quoted: I think there might be an error in your calcs.. What are the remaining components of the barrel of oil?   Say we import 100 million barrels of oil and only 1/2 is useable as gasoline...what happens to the remaining 50 million barrels?  Not sure what the remaining fractionation of the gas becomes (some can go as plastic)....that would have to be factored into the "cost" of the gasoline. Additionally--" 8% is the cost of refineing 15% is the cost of transporting it, and marketing " I would have guessed that these are relatively fixed costs...it costs $100 to refine 1000 bbl oil and $100 to transport and market it...now, as the price of gas goes up, it does cost more to drive the truck, but the $$/mile paid to the driver, the cost of the truck, etc. are relatively fixed. AFARR

It costs more to transport gas 100 miles then it does 1 mile....  about 50% of the remaining 27.5 gallons is diesel, the rest is every other petrolium product everything from motor oil to drinking straws, the price of the other stuff is factored in by divideing the cost of oil in 2 since only half is actually gasolene, instead of $60 dollars a barrel you calculate with $30 seperateing the other stuff from your calculations since the oil companys are essentually paying $30 for what will become gas, and another $30 for everything else....

It costs more to transport gas 100 miles then it does 1 mile

Obviously--however, if the cost of Oil is $10 a barrel or $1000 a barrel, the cost to transport doesn't rise much--the diesel to power the trucks does rise in price, but that is only a small portion of the cost of transport (labor, vehicle maintenence, depreciation, etc make up the bulk of it).  So, transport is more of a fixed cost rather than a % of the cost of a bbl.  

For U.S. Customs purposes, a barrel of crude oil is 42 gallons, not 55.  Can anyone confirm if how many gallons are in a barrel?

Quoted: It costs more to transport gas 100 miles then it does 1 mile Obviously--however, if the cost of Oil is $10 a barrel or $1000 a barrel, the cost to transport doesn't rise much--the diesel to power the trucks does rise in price, but that is only a small portion of the cost of transport (labor, vehicle maintenence, depreciation, etc make up the bulk of it).  So, transport is more of a fixed cost rather than a % of the cost of a bbl.

But it's still a cost semi-fixed or not, and factors into the price to produce the oil, and get it to the gas station, and at the current price of oil it is about 15% of the total cost....

Or I'll put it to you this way you go to a gun show it costs you about $10 worth of gas to get there, $10 more to park, and $5 to buy a ticket to get in the door, so the actual price of the ticket isn't $5 it's $25 once you factor in the gas, and parking, you can't just ignore the cost of the gas, which is the cost to transport you to the show, and it will cost less for a person who lives closer to the gunshow, and more for a person who lives furthur away (were assumeing that each gets the same millage, and pays the same for gas....), it's the same concept with gasolene, instead of transporting you to the gun show and figureing the cost into the total price of the ticket, your transporting gasolene, and figureing in the cost into the price of gas....

the current price of oil it is about 15%

At current prices it is 15%.  Call gas at $2/Gallon.   When gas goes to $4/gallon, the transportation cost will be closer to 9% of the price/gallon (that is taking into account the increased price of diesel to get it moved around).  That makes an increased profit of 6% for the Oil companies--I don't deny that it is a necessary cost--only that making it a flat percentage in calculations is erroneous.  

Quoted: Quoted: We should be doing all we can to make corn diesel or whatever the hell that stuff is. methanol.....FUCK YEAH!!!!!!!!!!!!!!!!

Fuck yeah!!! It takes more deisel/fuel to run the equipment needed to till, plant, grow, nurish, harvest, and transport the corn than you can get feul from the corn in the end.

Seems logical to me.

Quoted: For U.S. Customs purposes, a barrel of crude oil is 42 gallons, not 55.  Can anyone confirm if how many gallons are in a barrel?

You have been a member since 01 and this is your 1st post???         wow


Welcome aboard

Quoted: the current price of oil it is about 15% At current prices it is 15%.  Call gas at $2/Gallon.   When gas goes to $4/gallon, the transportation cost will be closer to 9% of the price/gallon (that is taking into account the increased price of diesel to get it moved around).  That makes an increased profit of 6% for the Oil companies--I don't deny that it is a necessary cost--only that making it a flat percentage in calculations is erroneous.

profit doesn't increase the percentage just goes up, and down, today January 8, 2006 it amounts to 15%, the percentage may rise or fall depending upon the price of oil, but knowing the figures for today it's possibal to extrapolate the price in the future we know that transportation, and marketing costs roughly 28.70 cents a gallon on average, just like the costs for refineing, and taxes would be the same or 8.15 cents 38.27 cents respectivly, or 75.12 cents total, so to calculate the price of gas just divide the price per barrel of oil by 2, then divide by 27.5, then ad 75.12 cents, and that will give you the cost to produce the gasolene, and get it to the station....

Quoted: That whole "Record Profits" thing is just a fluke then?  (Not that profit is bad in any way at all).

Let's get the old economics cap out now.  Sure Exxon emerged with 10 billion in profit, which was a record, when you just look at it that way, now when you look at Profit MARGIN it was only about 8% which means that Exxon had to take in 125 billion to make the 10 billion in profit.  In otherwords Exxon had to spend 115 billion to make 10 billion.



Anyone know the average profit margin for a sucessful company?  Anyone?  Anyone?
A:  Between 6-8%, which means that the profit is just in line for expeditures.  Economics lesson over.

Oil prices, like interest rates should be under government control.  Everybody, one way or another, pays for oil.  

5% jam it to you charge, add additional 3% for no grease.

Also dont forget the 9% break it off in you charge.