>
> --- In FairfieldLife@yahoogroups.com, "shempmcgurk" <shempmcgurk@>
> wrote:
> >
> > --- In FairfieldLife@yahoogroups.com, "sparaig" <sparaig@> wrote:
> > >
> > > --- In FairfieldLife@yahoogroups.com, "shempmcgurk"
> <shempmcgurk@>
> > > wrote:
> > > >
> > > > --- In FairfieldLife@yahoogroups.com, "sparaig" <sparaig@>
> wrote:
> > > > >
> > > > > --- In FairfieldLife@yahoogroups.com, MDixon6569@ wrote:
> > > > > >
> > > > > >
> > > > > > In a message dated 4/23/06 10:39:58 P.M. Central
Daylight
> > > Time,
> > > > > > jflanegi@ writes:
> > > > > >
> > > > > > > JohnY
> > > > > > > ps. pundits won't do it either...
> > > > > > >
> > > > > > Speaking of record profits by the oil companies, I
> > researched
> > > > this
> > > > > > recently and found out that it now costs the oil
companies
> > > > about
> > > > > > $1.50 to make, market and sell a gallon of gas. Add the
US
> > tax
> > > > to
> > > > > > that and total equals ~$2.25, total. the rest is
pure ,er,
> > > > gravy...
> > > > > >
> > > > > >
> > > > > >
> > > > > >
> > > > > > I don't think they are making .75 cents per gallon.
There
> > are
> > > > > different
> > > > > > formulas that different counties have to have per EPA
and
> > they
> > > > are
> > > > > more expensive
> > > > > > and then you have delivery and retailers cut and I think
> > > states
> > > > > even have
> > > > > > their own tax. I heard later today it's more like 11
cents
> > a
> > > > > gallon to the oil
> > > > > > companies.
> > > > > >
> > > > >
> > > > > Again, define "net" profit.
> > > > >
> > > >
> > > >
> > > > See their income statement:
> > > >
> > > > http://tinyurl.com/gw3o7
> > > >
> > >
> > > Their net income is $36 billion. I can't find any break down
of
> > how
> > > much they make per barrel or gallon or whatever.
> > >
> >
> > There are 42 U.S. gallons in a barrel of oil.
> >
> > So, at $75.00 a barrel, the oil company is paying $1.79 at the
oil
> > well for each gallon of oil....BEFORE any refinement costs,
> > transportation costs, retail costs, etc are added on to the
price.
> >
> > Oh, yes, and BEFORE any taxes are added to the price as well.
See:
> > http://www.lmoga.com/taxrates.htm (andt there may be local taxes
> > added as well). In Arizona there is 36.4 cents taxes (excluding
> any
> > local taxes, if any) on a gallon of gas.
> >
> > Of course, the income statement probably includes income from
other
> > sources, such as investments. But, hey, we aren't concerned
about
> > that; even the most jaded anti-oil-company person isn't
complaining
> > about how much the oil companies make on NON-oil sales.
> >
>
> However, we can't be sure what the break down is per gallon of gas
> since the figures include all those other sources of revenue (and
> expenses for that matter).
>
Well, from the figures I cite above, we know that at $75.00 a
barrel, that $1.79 plus $.0364 ( which equals $2.154 ) is a cost of
goods sold right off the bat.
That leaves $0.846 per gallon of contribution margin; that is, the
oil company has 84.6 cents per each gallon of gas it sells to us to
pay for transporting the oil, pay the salary of its employees, pay
for the medical insurance and retirement benefits of its employees,
pay its overhead, R&D, etc. etc.
On a $3.00 price of a gallon of oil, 84.6 cents is a contribution
margin of about 29%.
Hardly a windfall...
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