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Originally posted by VulcanRider:
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Originally posted by Klorox:
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Originally posted by Ziroc:
That'll never make it into production in the USA.. no way.. greedy oil pukes won't allow it. 
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I disagree. This is the internet age. If people know about it, they'll create a demand for it. [/QUOTE]So instead the greedy oil pukes will push the price of diesel to $5 a gal. Simple supply & demand... [/QUOTE]As a former "greedy oil puke", let me enlighten you on the profit margins of the oil industry. Consider these numbers before you start spouting off on who is being greedy:
For branded (Shell, Texaco, BP etc.) gasoline costs (in $ per gallon):
Base retail price for California in June 2007 = $3.19 / gal
That money gets distributed as follows
All taxes (Including state and local sales taxes assumes an average of 8%, State Excise Tax is fixed at 0.18 $ per gallon, Federal Excise tax is fixed at $0.184/gallon) = 0.61 $/gal
Storage costs (State Underground Storage tank fees) = 0.014 $/gal
Refining costs including profits* = 0.74 $/gal
Raw crude cost = 1.69 $/gal or
Distribution costs** = 0.14 $/gal
*Refinery Costs and Profits: The costs associated with refining and terminal operations, crude oil processing, oxygenate additives, product shipment and storage, oil spill fees, depreciation, purchases of gasoline to cover refinery shortages, brand advertising, and profits.
**Distribution Costs, Marketing Costs, and Profits: The costs associated with the distribution from terminals to stations and retailing of gasoline, including but not limited to: franchise fees, and/or rents, wages, utilities, supplies, equipment maintenance, environmental fees, licenses, permitting fees, credit card fees, insurance, depreciation, advertising, and profit.
According to Forbes Magazine,
http://www.forbes.com/energy/2005/05...30oxanoil.html
Oil companies earned 10% in downstream activities (refining and marketing) during the period from 1999 to 2003, and 20% in the upstream (exploration and production) so of the 74 cents per gallon of associated refining costs and $1.69 per gallon for the raw crude, those greedy oil pukes earned a total of 0.41$ PER GALLON OR LESS THAN 14% OF THE TOTAL COST OF A GALLON OF GAS! 41 cents - the freaking GOVERNMENT makes 50% more money off gasoline than the oil companies do!
A 14% ROCE (return on capital employed) is NOT being greedy! Please get your facts straight before you start labelling people as greedy!
Note: The API (American Petroleum Institute) actually lists oil and gas profits at 5.9 cents per $1 of sales or about 18 cents per gallon, or roughly 18 cents or HALF of what I calculated. Data from the U.S. Energy Information Administration (EIA) indicates that when the average price of unleaded regular peaked at about $3 a gallon in the middle of 2006, major companies were making a profit of about 10 cents a gallon on their U.S. refining and marketing operations as opposed to the 7 cents I calculate. So that 41 cent per gallon total is probably not exact but its probably pretty close. And if you want to know why you pay more for gas in New York than somewhere else, look to the State and Local Taxes which jump to 50 cents per gallon of gas in New York.
[ 07-30-2007, 04:25 PM: Message edited by: Micah Foehammer ]