Something to think about! Gas Prices.

[macallan25]

Actually he is exactly right.

[KSig RC]

Originally Posted by macallan25

Actually he is exactly right.

Then it should be relatively easy to show exactly what % of gas prices are currently related to the refining process, and how (and why) that cost has outstripped inflation by a wide margin over the last, say, 30 years, no?

Or was gasoline a loss leader until 2007?

[jon1856]

Originally Posted by KSig RC

Then it should be relatively easy to show exactly what % of gas prices are currently related to the refining process, and how (and why) that cost has outstripped inflation by a wide margin over the last, say, 30 years, no?

Or was gasoline a loss leader until 2007?

A very fast, down and dirt search found this story from the Washington Post:
http://www.washingtonpost.com/wp-dyn...092400253.html
Gas Profit Guzzlers

Refiners Captured The Biggest Part Of the Price Increase


"By Justin Blum
Washington Post Staff Writer
Sunday, September 25, 2005; Page F01

When the average price of a gallon of regular gasoline peaked at $3.07 recently, it was partly because the nation's refineries were getting an estimated 99 cents on each gallon sold. That was more than three times the amount they earned a year ago when regular unleaded was selling for $1.87.
The companies that pump oil from the ground swept in an additional 47 cents on each gallon, a 46 percent jump over the same period."

And in case no one heard over the weekend, US production plants and their capacities are at there lowest level in years........

[Texas Beta]

Originally Posted by jon1856

A very fast, down and dirt search found this story from the Washington Post:
http://www.washingtonpost.com/wp-dyn...092400253.html
Gas Profit Guzzlers

Refiners Captured The Biggest Part Of the Price Increase


"By Justin Blum
Washington Post Staff Writer
Sunday, September 25, 2005; Page F01

When the average price of a gallon of regular gasoline peaked at $3.07 recently, it was partly because the nation's refineries were getting an estimated 99 cents on each gallon sold. That was more than three times the amount they earned a year ago when regular unleaded was selling for $1.87.
The companies that pump oil from the ground swept in an additional 47 cents on each gallon, a 46 percent jump over the same period."

And in case no one heard over the weekend, US production plants and their capacities are at there lowest level in years........

Please do a more thorough search next time. Refineries on average make about 10 cents for every gallon sold. Refineries are at maximum production to compensate for the war and random natural events such as Katrina which shut down pipelines and ports.

The government makes 20 to 25 cents on every gallon of gasoline. Why don't you instead lobby your representatives to lower the tax? Why try to hurt an industry which employs hundreds of thousands of people world wide, an industry that puts billions of dollars into the American economy.

This is a perfect example of people following the crowd and not thinking for themselves.

Edit* I like how current your source is!

[GeekyPenguin]

Originally Posted by Texas Beta

Please do a more thorough search next time. Refineries on average make about 10 cents for every gallon sold. Refineries are at maximum production to compensate for the war and random natural events such as Katrina which shut down pipelines and ports.

The government makes 20 to 25 cents on every gallon of gasoline. Why don't you instead lobby your representatives to lower the tax? Why try to hurt an industry which employs hundreds of thousands of people world wide, an industry that puts billions of dollars into the American economy.

This is a perfect example of people following the crowd and not thinking for themselves.

Edit* I like how current your source is!

Let's try this source, then...

http://www.statesman.com/business/co...asprofits.html

"Gross profit margins on gasoline at the nation's refineries reached $31.22 per barrel last week, the second-widest recorded profit margin in U.S. history, according to data from the New York Mercantile Exchange. The margins are up 57 percent since April 1 and have more than quadrupled since early January."

[Texas Beta]

Originally Posted by GeekyPenguin

Let's try this source, then...

http://www.statesman.com/business/co...asprofits.html

"Gross profit margins on gasoline at the nation's refineries reached $31.22 per barrel last week, the second-widest recorded profit margin in U.S. history, according to data from the New York Mercantile Exchange. The margins are up 57 percent since April 1 and have more than quadrupled since early January."

If you had read the whole article and not just the first paragraph you would find an interesting piece of information. The article from the Statesman says that as gas prices rise, the profits made per gallon of gasoline sold decreases.

Oil companies make their money from oil, not gas.

[macallan25]

Originally Posted by Texas Beta

If you had read the whole article and not just the first paragraph you would find an interesting piece of information. The article from the Statesman says that as gas prices rise, the profits made per gallon of gasoline sold decreases.

Oil companies make their money from oil, not gas.

It's as simple as that. End thread.

[kddani]

Originally Posted by Texas Beta

Edit* I like how current your source is!

So where's your source? Just curious, how about some support for what you're saying?

[Tom Earp]

NEAT!

Do or do not do!

Dat Be Da Question?

[EE-BO]

Just to clear this up- I think some of you might be talking about gross margin (gross profit) and some of you are thinking about net profit.

Keep in mind too that as the energy markets continue to deregulate, you will see more anticipation built into current pricing. As we have seen at certain points recently, prices for future delivery are more of a driver of current prices than actual supply and demand.

This passes down to the retail gas station owners who are charging you for gas based on the cost of supply they are securing now- not what they already have in the tanks or on the way. It is the only way they can avoid cash flow difficulties in a market with rising prices.

Much of the extra profit that is perceived today goes to the traders (and many of the majors do have energy trading divisions) and not necessarily to those responsible for the actual process of getting the stuff out of the ground and into your car.

Ironically, however, that actually creates a certain long term stability that would not exist if everything traded purely on the supply and demand at a given moment- but it comes at a price.

Yet there is some variability in the marketplace and I think consumers forget all too soon that energy companies frequently go through long periods of huge financial losses and layoffs. It is unrealistic to complain about their profit margins in a specific period of time- especially when there have been a lot of very unusual events affecting supply and at a time when the fundamental nature of the energy markets is changing courtesy of deregulation.

[cuteASAbug]

Originally Posted by Tom Earp

NEAT!

Do or do not do!

Dat Be Da Question?

And somewhere, Shakespeare is rolling in his grave.

[jon1856]

Originally Posted by Texas Beta

Please do a more thorough search next time. Refineries on average make about 10 cents for every gallon sold. Refineries are at maximum production to compensate for the war and random natural events such as Katrina which shut down pipelines and ports.

The government makes 20 to 25 cents on every gallon of gasoline. Why don't you instead lobby your representatives to lower the tax? Why try to hurt an industry which employs hundreds of thousands of people world wide, an industry that puts billions of dollars into the American economy.

This is a perfect example of people following the crowd and not thinking for themselves.

Edit* I like how current your source is!

As I indicated, up front, was a very quick down and dirty search.
And yes, I saw other sites-many of them from the Oil Companies.

Found this one from the DOE-2005 as well.
http://www.eia.doe.gov/bookshelf/bro...05primerM.html

Found this site which could be rather interesting go through:
http://www.oilwatchdog.org

And this:
http://www.consumerwatchdog.org/ener...t+Profiteering

http://www.consumerwatchdog.org/energy/rp/6775.pdf

And this one answers the question about the mini-marts:
http://www.wgal.com/news/9336051/detail.html