# oil companies 68 replies

GreatGrizzly

Fear the Bear

50 XP

22nd February 2005

1,622 Posts

#61 15 years ago

Blood n Guts[COLOR=black]It's all a matter of math. Have fun checking my calculations if you don't believe them. :)[/COLOR]

[COLOR=black]The information you'll need:[/COLOR]

[COLOR=black]average price of gas in the US:[/COLOR] [COLOR=black]number of gallons in a barrel:[/COLOR] [COLOR=black]price of oil per barrel:[/COLOR] [COLOR=black]amount of oil required to produce 1 gallon of gasoline (oil to gasoline conversion factor):[/COLOR] [COLOR=black]octane number of regular gasoline in the US:[/COLOR] [COLOR=black]Federal and State taxes on gasoline:[/COLOR]

I'll let you have the formulas and steps I used to make checking easier. [COLOR=black]First, I found out how much of the cost of gas comes from the retailing and refining stages (both expenses and profits)[/COLOR]

[COLOR=black]average national price of gas - (cost of gas from cost of oil)(taxes) [/COLOR]

[COLOR=black]which expands into[/COLOR]

[COLOR=black]average national price of gas -((price of 1 barrel of oil)/gallons of oil per barrel)/((oil to gasoline conversion factor)/((whole octane number of regular gas/100)))(taxes))[/COLOR]

[COLOR=black]watch your order of operations on the above one :P[/COLOR]

[COLOR=black]The only figure which I extrapolated was the percentage of which the fees for retailing and refining the oil was for profit. I guessed 34% (21 cents) of the fees and 68% (42 cents) of the fees, which are both very high (unlikely high) profit margins.[/COLOR]

[COLOR=black](retail and refining cost)(percentage profit)= amount of profit per gallon of gasoline[/COLOR]

[COLOR=black]From there, I showed how much savings the owner of a car with a 15 gallon tank would make if the oil companies took a 50% profit cut, and did this for both the 21 and 42 cent profits (34% and 67%)[/COLOR]

[COLOR=black]15(Average cost of gasoline - .5(amount of profit per gallon of gasoline))=total savings for a car with a 15 gallon fuel tank if the oil companies reduced profits by 50% on refining and retailing. [/COLOR]

[COLOR=black]This concludes today’s chemistry/physics lecture :P[/COLOR]

[color=black]note- the one area of profit which I neglected was profit from the oil drilled here in the US. Although American companies make money off of that oil, the US mostly uses imported oil. Since that oil is drilled in other nations, domestic oil companies which refine that oil cannot absolve any part of that profit, and reduce oil prices in that manner. US oil companies could reduce their prices, but since they make up less than half of the oil, it wouldn't have as large of an effect as people may think. If they are making massive profits off of oil, it is since the foreign oil which they are competing against is also bloated in cost; all they have to do is match that price.

so your pulling this raw facts out of your ass and putting them together to somehow make it credible data? get me the links to these: [COLOR=black]

[COLOR=black]average price of gas in the US:[/COLOR] [COLOR=black]number of gallons in a barrel:[/COLOR] [COLOR=black]price of oil per barrel:[/COLOR] [COLOR=black]amount of oil required to produce 1 gallon of gasoline (oil to gasoline conversion factor):[/COLOR] [COLOR=black]octane number of regular gasoline in the US:[/COLOR] [COLOR=black]Federal and State taxes on gasoline:[/COLOR]

thats what im looking for[/COLOR]

Blood n Guts

Wolverine Starting 9/6/2006

50 XP

22nd March 2005

758 Posts

#62 15 years ago

[COLOR=black]average price of gas in the US:[/COLOR] [COLOR=black]http://news.yahoo.com/s/ap/20051023/ap_on_bi_ge/gas_prices[/COLOR] [COLOR=black]number of gallons in a barrel:[/COLOR] [COLOR=black]http://en.wikipedia.org/wiki/Barrel_(storage)[/COLOR] [COLOR=black]price of oil per barrel:[/COLOR] [COLOR=black]http://tonto.eia.doe.gov/dnav/pet/pet_pri_spt_s1_d.htm[/COLOR] [COLOR=black]Federal and State taxes on gasoline: turns out my source was wrong and it isn’t a percentage tax but a fixed 18.4 cent per gallon tax for federal and a fixed tax for states that averages out to 21 cents per gallon.[/COLOR] [COLOR=black]http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/oil_market_basics/Price_taxes.htm[/COLOR] [COLOR=black]Oil to gasoline conversion:[/COLOR] [COLOR=black]http://www.newton.dep.anl.gov/askasci/gen99/gen99675.htm[/COLOR] [COLOR=black]I used the 1.5 gallons of oil=1 gallon of gasoline since that is the value which would skew that data towards the high profit end, that way no one can complain that I’m skewing the information towards the low profit end which would support my cause.[/COLOR] [COLOR=black] [/COLOR] [COLOR=black]average national price of gas - cost of gas from cost of oil - taxes[/COLOR] [COLOR=black]= [/COLOR] [COLOR=black]average national price of gas -(price of 1 barrel of oil)/gallons of oil per barrel)/((oil to gasoline conversion factor)(whole octane number of regular gas/100)) - taxes[/COLOR] [COLOR=black]=[/COLOR] [COLOR=black]\$2.66 -(\$61.05)/42)/(.67)(.87) - .184 - .21[/COLOR] [COLOR=black]=\$.378[/COLOR] [COLOR=black] [/COLOR] [COLOR=black]That puts 37.8 cents of the total cost of gas from retailing and refining the oil.[/COLOR] [COLOR=black] [/COLOR] [COLOR=black]I don’t have profit figures, so I posted estimates of 25% and 75% of the retailing and refining costs as profit, both of which are high estimates of profit (75% is ridiculously high) so once again if my estimates are off they are skewed high.[/COLOR] [COLOR=black](retail and refining cost)(percentage profit)= amount of profit per gallon of gasoline[/COLOR] [COLOR=black](.378)(.25)=\$.0948 about 9 cents per gallon is profit if 25% of the fees for refining and retailing are for profit[/COLOR] [COLOR=black](.378)(.75)=\$.2835 about 28 cents per gallon is profit if 75% of the fees for refining and retailing are for profit[/COLOR] [COLOR=black] [/COLOR] [COLOR=black] This is how much the oil companies taking a 50% hit on profits over refining and retailing would save you assuming you have a normal mid size car with a 15 gallon tank (\$39.90 to fill up at the average national cost.):[/COLOR] [COLOR=black]15(.5(amount of profit per gallon of gasoline))=total savings[/COLOR] [COLOR=black]15(.5(\$.0948))=\$.711 savings for 50% reduction of profits assuming 25% profit on refining and retailing[/COLOR] [COLOR=black]15(.5(\$.2835 ))=\$2.13 savings for 50% reduction of profits assuming 75% profit on refining and retailing[/COLOR] [COLOR=black] [/COLOR] [COLOR=black]Looking at that, even if the oil companies are making ridiculously high profits off refining and retailing, them taking a 50% hit in that area would only save you \$2.13 out of \$39.90.[/COLOR]

edieboy777

GF makes me horny

50 XP

11th June 2004

86 Posts

#63 15 years ago

Population of the US:297,543,877.

World Population: 6,475,756,759. Oil Consumption of the US:19,650,000 bbl per day.

World Total Consumption: 75,810,000 bbl per day.

If you do the math, four percent of the world population provides TWENTYFIVE PERCENT of the worlds oil consumption.

Dr Zoidberg

Suck,Suck,Suck!!

50 XP

17th July 2003

1,340 Posts

#64 15 years ago

Its funny how praticle fuel cell cars were avalable in 1998, and only now are hybrid cars catching on...

I dont blame this on Bush or anything, just the way the US is run from all levels and the avrage american.

I plan to move to germany later in life, in 98 they accually had a hydrogen fual station for cars built in berlin i think it was, atleast over there they are making progress.

GreatGrizzly

Fear the Bear

50 XP

22nd February 2005

1,622 Posts

#65 15 years ago

[COLOR=white]Using bloods sources:[/COLOR] [COLOR=white]2.66 average cost [/COLOR] [COLOR=white]62.83 per barrel[/COLOR] [COLOR=white]1.25 per gallon[/COLOR] [COLOR=white]42 gallons / barrel[/COLOR] [COLOR=windowtext][COLOR=white]http://www.newton.dep.anl.gov/askasci/eng99/eng99288.htm[/COLOR][/COLOR] [COLOR=white]1.3 cents per liter to ship[/COLOR] [COLOR=white]http://www.energybulletin.net/2709.html[/COLOR] [COLOR=white]1 gallon = 3.7854118 liters[/COLOR] [COLOR=white]Tax: 1.25 cents per gallon[/COLOR] [COLOR=white]http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/oil_market_basics/Price_taxes.htm[/COLOR] [COLOR=white]\$62.83/42= \$1.49 per gallon to buy[/COLOR] [COLOR=white]1.3*3.7854118=4.9205 cents per gallon to ship[/COLOR] [COLOR=white]1.49+.49205+.125 ~ \$2.10[/COLOR] [COLOR=white]\$2.66-2.10 = \$0.56 [/COLOR] [COLOR=white].56/2.66= 0.21052631578947368421052631578947[/COLOR] [COLOR=white]So the oil companies make about 21% per gallon[/COLOR] [COLOR=white]19,650,000*42= the US consumes about 825300000 gallons a day [/COLOR][COLOR=white]0.56*825300000[/COLOR] [COLOR=white]Just in america, Oil companies get about \$462,168,000 dollars in profit every day [/COLOR]

Blood n Guts

Wolverine Starting 9/6/2006

50 XP

22nd March 2005

758 Posts

#66 15 years ago

You left out state and federal excise taxes. That 1.25 cent per gallon tax is an import tariff. You also forgot to convert 100% gasoline into regular 87% gasoline (87 octane), used today's oil price instead of 10/23's (which matched with the average gas price of gas) and forgot to convert the oil into gasoline. One more thing:

1.49+.49205+.125 ~ \$2.10

You're off by a decimal place. 1.25 cents and 4.9205 cents are \$.0125 and \$.049205, not \$.49 and \$.125 The point isn't how much profit they make, it's how much profit cutting will save you since the thread is about how oil profits are causing high gas prices and how them reducing profits would save us money. Sure, they make a lot of money, but unless you're driving a huge truck, profit cutting in this area won't save you much more than \$1.

GreatGrizzly

Fear the Bear

50 XP

22nd February 2005

1,622 Posts

#67 15 years ago

The point isn't how much profit they make, it's how much profit cutting will save you since the thread is about how oil profits are causing high gas prices and how them reducing profits would save us money. Sure, they make a lot of money, but unless you're driving a huge truck, profit cutting in this area won't save you much more than \$1.

it all adds up to be ALOT of money. why do you think companies are so unwilling to increase their employees pay by a dollar? because they will end up paying thousands of dollars more....

WarHawk109

From the Austrian School

50 XP

21st July 2003

2,926 Posts

#68 15 years ago

edieboy777Population of the US:297,543,877.

World Population: 6,475,756,759. Oil Consumption of the US:19,650,000 bbl per day.

World Total Consumption: 75,810,000 bbl per day.

If you do the math, four percent of the world population provides TWENTYFIVE PERCENT of the worlds oil consumption.

Partly because more people in the USA own and drive cars than say in China, and partly because Americans have more purchasing power than most.

Blood n Guts

Wolverine Starting 9/6/2006

50 XP

22nd March 2005