Thread: The price of gas?

Originally Posted by SIB

just read this from yahoo news.....incredible ah?

"Exxon Mobil shattered its previous profit records by posting its biggest quarterly profit ever for the recently ended third quarter.

Exxon earned $14.83 billion for the quarter, or $2.86 a share, up a whopping 58 percent from the third quarter of 2007.

Revenue was 137.7 billion, up from $102.34 billion in the year-earlier period."

Why should this be incredible? Get a sense of perspective. Big companies have huge gross revenues and big net profits when they're successful, and take big losses when they're not - GM lost $12 Billion last quarter. My understanding is the oil companies net about 8% of their gross revenue, which is not a particularly great return - yes gas was expensive but crude wasn't particularly cheap if you recall, and it was ExxonMobile and ChevronTexaco etc that were cutting checks for that $140/bbl crude.

Oil companies held their breath like children until the american public was for drilling in everyone's backyard. Now that some of the restrictions on drilling have been eased they need to lower prices again to keep us buying their products and from switching away from petro to alternatives.

So let me get this straight. The oil company that has to do all the work makes $0.08 a gallon and the government, which does absolutely nothing, gets $0.28. I freaking hate taxes.

Originally Posted by roughneck

So let me get this straight. The oil company that has to do all the work makes $0.08 a gallon and the government, which does absolutely nothing, gets $0.28. I freaking hate taxes.

Without roads, the oil companies wouldn't be getting anything.
Is that $0.08 meant to mean eight cents per gallon of gasoline sold is profit back to the oil co's? I'm guessing this assumes that the oil used to make said gasoline was bought on the open market.

Originally Posted by twelvepbrs

Without roads, the oil companies wouldn't be getting anything.
Is that $0.08 meant to mean eight cents per gallon of gasoline sold is profit back to the oil co's? I'm guessing this assumes that the oil used to make said gasoline was bought on the open market.

They make about 8 percent net profit on their gross revenue, not 8 cents per gallon profit. It varies a bit from company to company depending on how much of their oil they produce themselves, and how expensive it is to produce and refine. Some crude stocks are quite troublesome to refine. Venezuelan crude for example is very high in sulfur and heavy tarry hydrocarbons. Removing that sulphur is obviously expensive (plus it's hell on equipment), but in order to make gasoline out of the tars the refineries have to break those long hydrocarbon chains down then recombine them into the gasoline, diesel, and jet fuel we need, and that needs expensive reactors and catalysts.

Originally Posted by mhailey

I don't think I have ever seen those words posted consecutively, and pertain to me.

Well here they are again: Matt is right.

Most of what we pay is taxes.
It's even so bad that if the price of crude goes up, the taxes go up as well. But if the price of crude goes down, the taxes stay the same.
My car uses diesel, which costs 5 $/gallon.
Gasoline costs about 8$/gallon



This is done for our convenience (no, really, that's the argument) so that prices don't fluctuate as much at the pump, and we don't have to deal with rapid changes in pump price.
Of course, the taxes will remain the same until the crude hits its previous high level mark.
This earns the state a hefty bonus, because if the price of crude starts rising again beyond the previous peak value, they don't subtract what you already paid too much.

But this is for our own good... Really...

You think you've got it bad!!

We get taxed....on the taxes we pay!!

take the price for fuel, add a tax so that people are "discouraged" to drive a lot because it's so expensive, this is "better for the enviroment and the traffic situation" (which to be fair is abysmall).

Then add 20% takes on the total (so really 10% for the fuel and 10% for the taxes) and you get the net price.

I think it's outragious. but hey...the government stopped listening to what the people wanted in......wait!! I don't think they ever listened.

(I'm starting to think Democracy is more and more of a sham, at least in most of the world. Maybe it's just used as a medium to placate the masses! This is scary I'm starting to think like Denmason!!)

Originally Posted by twelvepbrs

Without roads, the oil companies wouldn't be getting anything.
Is that $0.08 meant to mean eight cents per gallon of gasoline sold is profit back to the oil co's? I'm guessing this assumes that the oil used to make said gasoline was bought on the open market.

In many cases petroleum companies push through their own roads. If tax dollars paid for infrastructure and other tangible services used by all tax payers the tax burden would be insignificant.

Originally Posted by LX_Emergency

I think it's outragious. but hey...the government stopped listening to what the people wanted in......wait!! I don't think they ever listened.

(I'm starting to think Democracy is more and more of a sham, at least in most of the world. Maybe it's just used as a medium to placate the masses! This is scary I'm starting to think like Denmason!!)

Youd better watch it! Or youll slip into the dark side! But then again, maybe your right! Isnt paranoia fun! (insert laughing smilie in strait jacket)

I think this thread should be closed.