Posted on 04/26/2006 6:35:00 PM PDT by Blood of Tyrants
The problem is not the price of oil: the problem is the value of the dollar.
What is the definition of "profit"?
The next time the supply truck comes rolling in the price is $Y.
If the seller hasn't been increasing the price at the pump how is he going to have the money to pay for the new supply?
Revenue less cost, i.e. the money left for distribution to stockholders and reinvestment in the company infrastructure.
Do you REALLY believe they are making only 10% profit when their total cost is probably only about a buck? Remember, when gas was so cheap back in '99? They were STILL making a profit when gas was sellinbg for 80 cents a gallon and taxes were half of that!
Granted that the spot market is cheaper than the futures market, but the spot is still much higher than $7 per barrel. Did you hear the ex oil executive on Rush today? He was in charge of pricing gasoline for a large petroleum company with over 600 stations. He said that the daily price was calculated based on what it would cost to replace the gallon sold plus $0.10 to $0.16 per gallon profit.
Remember "odd/even"? That drove my mom and dad nuts.
Don't get me started on fiat money!
Agreed.
It's becoming nauseating.
Something's rotten in Denmark.
i feel proud that you had the courage to fess up...
Do you know how to read financial statements? They are there in the public, available for anyone to see.
Here is the transcript from the oil exec caller to Rush today:
___________________________________________________________
CALLER: Good. I listened to that gentleman who called in a few minutes ago that talked about how if the taxes went away, the gas stations would just price their gasoline higher to keep the price the same, and I'm a retired oil company fellow, and in one of my last jobs I was the general manager of the retail gasoline division for our oil company. We set the prices of 600 gas stations, so I can tell you how we set the gas prices. We figured out what it cost to replace the barrel of gas that we were going to sell today. We priced it three-to-six cents higher than replacement cost, and that's where we set our price. So I'm one of the guys that set the gas price.
___________________________________________________________
(I was wrong about the $0.10 to $0.16 --- it is $0.03 to $0.06)
You know as much about money as you know about oil?
Huh? Total cost of what? A gallon of gas? You're certainly not speaking about oil anymore.
Remember, when gas was so cheap back in '99? They were STILL making a profit when gas was sellinbg for 80 cents a gallon and taxes were half of that!
Again, you're failing to understand that crude oil is not equivalent to gasoline. Crude oil prices are but one component of the price you pay at the pump. While there are pressures on oil supply, lack of refining capacity and inefficient requirements to formulate 25+ boutique blends play at least as large a role in current gas prices.
Your chart is skewed. Refining costs are nowhere near 22% (comes out to roughly 53 cents a gallon). Refining costs are more or less constant. Remember a few years ago when gas was selling for 80 cents/gal? The oil companies AND the retailers were making a profit while taxes were 40 cents on a gallon! That means that total production and distribution costs were about 25 cents a gallon.
$1.60 per gallon is due to the cost of the current oil price.
If the oil company is making $.07 per gallon of gas and the state and federal government is taking $.70 a gallon, where should the relief, if any come from?
Okay, I have seen a LOT of threads claiming that oil companies aren't really making that much on each gallon of gasoline.
Oh, really? (blink, blink) Then explain the record profits by the oil companies.
It's not the sum of money that is important, it is the percentage of revenue that is returned as profit!
The oil companies make less than 10% profit on their revenues. That is less than Starbucks, Wal-Mart or Intel.
Get educated about economics.
No, none of the above.. However, if milk doubled in price since last year at this time, while the cows are being properly fed and are producing as they did last year, AND the milk distributors are claiming record profits and retiring CEO's with umbrella packages that equates to 10000 of us milk consumers, don't you think that the commoner would wonder why the milk prices are so high?
When I see a world shortage of crude maybe I will believe the bullshit about the increased world demand driving prices up.
Finally, it is pathetic when I place more faith in Schumer's words than GW's, the guy who I voted for TWICE..............
Oil not go up in price. Dollar go down in value. Ug.
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