Re: Very OT: the price of gas

Because the folks who set the prices all flunked basic math?
Actually, the part of the price that pays for the gas is only part of
it. Like you say, there is a refining cost, transportation cost,
handling cost (somebody has to connect the truck to the underground
tanks), etc, etc. and that's before you even get to the local, state,
federal taxes.

Loujean

On Wed, 12 Oct 2005 06:41:47 GMT, "OldGoat"
<oldgoatmail@xxxxxxxxxxxxxxxxxx> wrote:

>Hey folks,
>I know there's probably some place more appropriate for this question, but I
>wanted to see if anyone I know can explain it to me.
>When dealing with crude oil, the measurement use for quantity is a "barrel",
>right? Is this not your standard 55 gallon barrel?
>
>If it is, why are we meekly putting up all this money per gallon, when even
>a huge leap in the per gallon price, of say $10.00 per barrel, when spread
>equally over the 55 gallon barrel, comes to an increase of about 19 cents
>per gallon? I know there's beaucoup cost tacked on like refining and Uncle
>Sammy and the states take a good healthy bite of the oil apple as well as
>the oil companies.
>But at 20 cents per $10.00, a $70.00 barrel of unrefined oil (which is
>somewhere around $60.00 today) should be $1.40 a gallon. So the other HALF
>of the $3.00 per gallon is refining costs, (which pre-hurricanes, was the
>same cost as refining a $30.00 barrel of oil) Oil Company profits, and state
>and local taxes.
>Anyone know enough about commodities to set me straight? We can't be this
>collectively stupid. I know they're claiming losses of refining capabilities
>from the hurricanes, but there were major price leaps well before all that
>happened, blamed strictly on the greed of OPEC. It hasn't escaped my
>attention that The Prez is in to oil, either, so he's getting fat while`we
>have to choose between medications and having gas to drive to the doctors.
>Any contradictions to my assumptions are welcome.
>
>A painless day to all--og
>

Loujean
God didn't promise us
that life would be fair.
If it were, who would try
for the stars?
.

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