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Discussion in 'Politics' started by hillclimber1, Aug 2, 2007.
The oil comapanies make 9 cents on the gallon. Taxes are what 40 cents on the gallon? The government is getting enough. And the coat tail rider continues to show her communism.
If other companies had as low of a return on investments as oil companies, everyone would dump their stocks and their board of directors and demand that something be done about the poor performance.
Well, when you consider how they make it up in volume, it's hard to feel sorry for them. 9 cents a gallon times how many gallons a day? But Hillary needs to take her communism back to china.
[FONT=Arial, Helvetica]What do oil companies make on a gallon of gasoline?[/FONT]
[FONT=Arial, Helvetica]A multitude of factors can affect an individual oil company's profit on gasoline sales. However, data from the U.S. Energy Information Administration (EIA) indicates that when the average price of unleaded regular peaked at about $3 a gallon in the middle of 2006, major companies were making a profit of about 10 cents a gallon on their U.S. refining and marketing operations. 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 and local taxes vary from 8 cents in Alaska to nearly 50 cents per gallon in New York. [/FONT][FONT=Arial, Helvetica]
I wasn't suggesting that they are hurting because of this. I was suggesting that the coat tail rider's call for taking from the profits of oil comapnies is unjustified in light of the fact that Gasoline costs are a result of three things:
The biggest factor is processing costs.
The next factor is taxes.
The least factor is profits.
She wants to take away from the least factor (which has a potential to hurt the economy) in order to maintain a communist agenda.
It's amazing to me that she feels secure enough in the American publics distrust of big business, to assert her conviction concerning confiscation of profits. That is totally anti-American. A hanging curve for the GOP, but they probably won't swing.
Anti-American! Yes it is!:thumbs:
You'all scared of the wrong thing. the price of food will double because the food grains are being used for alcohol. It would be Ok if they were making drinking alcohol . . . .
Don't think the price of fuel will be going down. Price is set by supply and demand, not manufacturing cost. Anyway, gasohol is subsiized $1/gal from general tax revenue.
Oh, yeh, we could be getting cheap alcohol from Brazil but Bush is keeping a horrendus import duty on it.
It is incorrect to suggest that the price of oil is set by just one thing.
I much prefer todays corporatism and it's public private partnerships to communism, it's more macho.
Profits are below an acceptable level of return for most investors. Do you buy mutual funds that only give you a 5% return?
Also, if their profits are confiscated, where is the motivation to produce?
So, then the government takes it over.
We all know just how streamlined and efficient the government is.