Posted on 03/12/2012 4:06:25 PM PDT by esarlls3
Politicians and talking heads are doing their best to make us confused about gasoline prices.
Here’s a little clarity.
(Excerpt) Read more at foxnews.com ...
Note that oil companies invest $Billions for decades before hoping to reap a reward. Any "windfall" is due to risks they took a long time ago in the hopes of a favorable economic environment in the future.
Very good post, from a broke ex-oilman.
Another Plunge in 3-Month Rolling Average of Petroleum and Gasoline Usage
If auto and health insurance companies can be taken over here, it can happen to oil companies too.
What a sad state of affairs...
Thanks esarlls3.
A barrel of crude is 42 US gallons; at $105 / bbl, the crude price alone is $2.50 per gallon of gas, exclusive of crude consumption for refining, transportation, and distribution. Then there are the retail excise taxes...
http://en.wikipedia.org/wiki/Fuel_tax#United_States
Fuel taxes in the United States vary by state. The United States federal excise tax on gasoline, as of February 2011, is 18.4 cents per gallon (4.86 cents/L) and 24.4 cents per gallon (6.45 cents/L) for diesel fuel. In January 2011, motor gasoline taxes averaged 48.1 cents per gallon (12.71 cents/L) and diesel fuel taxes averaged 53.1 cents per gallon (14.03 cents/L).[9] For the first quarter of 2009, the mean state gasoline tax is 27.2 cents per US gallon, plus 18.4 cents per US gallon federal tax making the total 45.6 cents per US gallon (12.0 cents/L). For diesel, the mean state tax is 26.6 cents per US gallon plus an additional 24.4 cents per US gallon federal tax making the total 50.8 cents US per gallon (13.4 cents/L).[10] There are also a few states and municipalities that charge sales tax on top of the excise taxes and the retail price.
The states that have a tax on their fuel, impose a tax on commercial drivers that travel through their state, even if the fuel is not purchased in that state. The paper work for this taxed on a quarterly basis and filed somewhat like a federal tax return that is done yearly. Most commercial truck drivers have an agent fill out the paper work. The driver calls in their information, the agent figures out how much tax should be paid to each state, then the agent faxes the forms to the driver and they are required to carry the papers with them along with their travel log books.
Let’s hope that insufferable bore Bill OReilly reads this, the sooner the better.
$105/bbl is the inflated ‘speculated ‘price. Exxon, BP and others own their own wells. They don’t pay $105/bbl. But they do charge us based on the speculator price and that’s where the 41 billion in profit came from for Exxon last year. They even admitted the increase in profits was due “to the rise in the cost of oil per barrel”.
The tankers pull into an oil port and buy at the well price and that’s NOT $105/bbl. Wise up people.
And this will have an impact sooner or later.
Tankers don’t buy anything but bunker fuel. They are contracted by the owner of the oil to transport it to the buyer.
The increase in profits from the rise in cost of oil will of course result given the same percentage of margin. Wise up yourself.
Bump (for later read...)
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