Posted on 04/26/2006 4:17:15 PM PDT by Conservative Coulter Fan
The cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes. The prices paid by consumers at the pump reflect these costs, as well as the profits (and some- times losses) of refiners, marketers, distributors, and retail station owners.
In 2003, the price of crude oil averaged $28.50 per barrel, and crude oil accounted for about 44% of the cost of a gallon of regular grade gasoline. In comparison, the average price for crude oil in 2002 was $24.09 per barrel, and it composed 43% of the cost of a gallon of regular gasoline. The share of the retail price of regular grade gasoline that crude oil costs represent varies somewhat over time and among regions.
What Do We Pay for in a Gallon of Regular Grade?
Federal, State, and local taxes are a large component of the retail price of gasoline. Taxes (not including county and local taxes) account for approximately 27 percent of the cost of a gallon of gasoline. Within this national average, Federal excise taxes are 18.4 cents per gallon and State excise taxes average about 21 cents per gallon. 2 Also, eleven States levy additional State sales and other taxes, some of which are applied to the Federal and State excise taxes. Additional local county and city taxes can have a significant impact on the price of gasoline.
Refining costs and profits comprise about 15% of the retail price of gasoline. This component varies from region to region due to the different formulations required in different parts of the country.
Distribution, marketing and retail dealer costs and profits combined make up 14% of the cost of a gallon of gasoline. From the refinery, most gasoline is shipped first by pipeline to terminals near consuming areas, then loaded into trucks for delivery to individual stations. Some retail outlets are owned and operated by refiners, while others are independent businesses that purchase gasoline for resale to the public. The price on the pump reflects both the retailer’s purchase cost for the product and the other costs of operating the service station. It also reflects local market condi- tions and factors, such as the desirability of the location and the marketing strategy of the owner.
Source: http://www.eia.doe.gov
Looks like the numbers in the text apply to the 2003 graphic, not the 2006 graphic.
If one blows up, you can have $1 billion lawsuits (people killed, windows blown out, destroyed equipment).
I think the oil companies had to pay hundreds of millions of dollars in damages to refineries (and oil platforms) because of Hurricane Katrina and Hurricane Rita.
If the government ran oil platforms and refineries, the cost might be an additional 50 cents a gallon (IMHO).
You've got madmen on the world stage like Chavez that factor into the equation because Venezeula is a memeber of OPEC, the instability in Iran, civil strife in Nigeria, OPEC decisions to cut production, etc., the unpredictability of weather, and so forth. The on the supply side - OPEC was producing over 5 million barrels a day....in 2006 and 2007...its only going to produce 2 million each of those years. Then you have the demand side - China is rapidly becoming a major consumer securing long term contracts in Columbia and other oil producing nations in Africa...India and the rest of the world. Companies like Chevron and exoon are only getting around 8-10 cents, as you pointed out...Yahoo is getting 45 cents per dollar...Coca Cola is getting 15 cents. I suppose I don't view the profit motive as being something evil. 41% of the country owns stock in these companies through IRAs, Federal/State pension funds, and private pension funds. Net investments have increased to over $100 billion in line with net income. And for the BUT...the government won't allow drilling in ANWR because of the Donkey Party and a turncoat republicants...they won't allow new onshore drilling....we're still barring certian offshore areas from drilling...we won't remove barriers to expanding refineries/building new ones, etc.
bump
We've went from something like 225 refineries to around 150...
At least the percentage that's in taxes is going down! </sarc>
He said NY's was 62.5 cents vs. typical 35 cents elsewhere.
So where are Chucky and Hillary on NY's gouging??
bttt
You won't believe this: technically speaking, we have over 85 billion barrels of oil that are recoverable in four key areas - Alaska offshore, Pacific offshore (California), Gulf offshore, and the Atlantic offshore. That is enough oil to run (today) 48 million cars and heat 10 million homes for 120 years!!! (Source: Minerals Management Service)
The percentage of crude rose 11 percent from 2003 to 2006, refining rose 7 percent or so, and distribution rose 1 percent. Besides, the tax rate hasn't gone down in New York...or the worst state in the union...California, which has the most stringent regulation.
It cost less than $20 to produce a barrel of crude.
Congress is looking at raising taxes on oil companies by 27+ percent...
That doesn't include onshore in places like section 1002 of ANWR...which is artic wasteland...no a "pristine" forest.
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