Blame colicky Suri, not Exxon, for gas price panic

The Pittsburgh Tribune-Review ^ | April 28, 2006 | Eric Heyl

[Mr. Jeeves]

The author demonstrates typical MSM economic ignorance. Out of that $3.00 a gallon, the oil companies' profit is nine cents. Government "tax gouging" is many times that amount.

The oil companies could charitably decide to accept no profit whatsoever and such a move would have almost no impact on gasoline prices.

[AxelPaulsenJr]

The author also fails to give credit to the environmental wing of the demorat party for all their efforts in keeping this nation dependant on foreign terrorist oil.

[SunnyD1182]

I thought it was gas retailers who made 9 cents a gallon. I'd think oil companies would make significantly more, being that their oil is valued at a price well above what the labor/shipping towards getting that oil really was.

[frogjerk]

The author demonstrates typical MSM economic ignorance. Out of that $3.00 a gallon, the oil companies' profit is nine cents

Is it 9 Cents or 9%? I read somewhere it was 9% but I don't know. What I do know is that my 401k Mutual Funds are doing well with Exxon stock.

[frogjerk]

The author also fails to give credit to the environmental wing of the Democrat party for all their efforts in keeping this nation dependent on foreign terrorist oil.

Isn't this also the wing that used to say a few years back that we should be paying as much as Europe for gas?

Thanks, Libs!...coming soon to a station near you - gas prices as high of that near Paris, France. Then the libs can feel all fuzzy and "enlightened" like the Europeans.

[frogjerk]

I got it at http://www.conocophillips.com/newsroom/other_resources/energyanswers/oil_profits.htm

What do oil companies make on a gallon of gasoline?

Where the Gas Dollar Goes

An industry-wide study in the late 1990s showed that oil industry profits amounted to an estimated 7.3 cents on each gallon sold.1 More recently, ConocoPhillips reported that during the third quarter of 2005 earnings from its U.S. refining and marketing operations amounted to 9 cents per gallon. This compares with a national average retail price of $2.60 per gallon during the third quarter, the period of highest gasoline prices in 2005.

A multitude of factors can affect an individual oil company's profit on gasoline sales. Profitability factors include the efficiency of the firm's refining, distribution and marketing system, as well as its source of raw material. In times of rising oil prices, companies that own and produce a considerable portion of the crude oil used in their refineries may benefit more than other companies that must purchase most or all of their supplies on the open market.

Crude oil generally represents the single greatest cost component of gasoline, which explains why gasoline prices rise and fall so quickly with changes in the world price of crude oil. For example, at ConocoPhillips, crude oil costs make up 85 to 90 percent of the total costs of running its refineries. As an international commodity, crude oil is bought and sold 24 hours a day, so its price is changing constantly. In the matter of a day or two, crude oil prices can move up or down by several dollars, depending upon supply and demand factors.

In general, crude oil accounts for roughly half of gasoline's price, as shown in the graphic. Other price components include refining, distribution (pipelines and tanker trucks) and marketing (service stations and convenience stores). These so-called "downstream" costs have been falling as companies have made operations more efficient. When gasoline reaches the pump, another major factor comes into play �" federal, state and local taxes, which average about 20 percent or more of the pump price. The federal tax is 18.4 cents per gallon, while state taxes vary from 14 cents in Wyoming to more than 44 cents per gallon in New York.

1 Estimate was based on an average pump price between January 1997 and September 1999. The estimate was derived by dividing the net income of the gasoline-related operations of major oil companies by the total number of gallons sold by those companies. Study was conducted by the American Petroleum Institute.

[cripplecreek]

Thanks, Libs!.

Yeah. I've been thinking about those california legislators who openly support harming the economy by supporting the big mayday boycott as they blame Bush for harming the economy. As usual, it isn't about right and wrong with liberals, but how they feel about it.

[Mike Darancette]

Among them are skyrocketing crude oil prices, escalating international tensions...

The commodity market is so spooked they seem to be driving prices up every Friday because they are afraid of what might happen over the weekend.

[frogjerk]

SCHUMER: ".3 more cents than all other industries is excessive!"

[jdm]

"Blame colicky Suri, not Exxon, for gas price panic"

I personally blame the Chick-Fil-A Cow for high gas prices.

[kinghorse]

that's all? I would support adding a check box on the 1040 to donate a dollar to their fund. Poor fellows. I never knew they were operating on such tight margins.

/burps, swallows, then violently and forcefully vomits

[RetiredArmy]

This morning on the local communist news on KING 5 in Seattle, they had the RINOcrats talking about what to do to ease the gas crunch. They started railing on the AWAR and immediately went to a film of streams, mountains, fish, and Caribou crossing a river, as to what would be damaged. Pure 100% propaganda. 99.9999% of American believe this garbage. Those that can read that is.

[Red Badger]

Maybe we should pass a law that states that every illegal immigrant must bring with them 10 barrels of oil (mexican of course!)............

[AxelPaulsenJr]

I read where Pelosi was on C-span complaining about the high cost of gasoline. A reporter asked her is she could now see her way clear to support drilling for oil off of our east and west coasts. You can guess her answer.

[Paperdoll]

Anyone care to venture a guess as to why GWB refuses to increase tax on the huge profits being enjoyed by the price goudging oil companies?

[RebelBanker]

Companies respond to higher costs by passing those costs along to consumers. Why do you want to INCREASE the the price of gas?

[RetiredArmy]

They had her nasty, ugly face on the tube this a.m. during that liberal rant. I screamed at the T.V.: Shut up you ugly communist slut!!! My wife yelled down from upstairs if I was yelling at our wonderful commissar of a governor again. I yelled no, and told her whom. She agreed the bi*(h is an ugly slut.

[AxelPaulsenJr]

LOL, my wife gets tired of me yelling at the t.v. In fact she threatens to not let me watch the news. LOL.

[null and void]

That's our Nancy...