Blaming oil companies is just as dumb as blaming presidents. Lots of stuff goes into the cost of a gallon of gas. By your math, the oil companies (in this case, I think we really mean oil refining companies, to be specific) add 90 cents to the price for profit. Indiana adds another 46 cents for taxes, and the feds add an extra 18 cents. Then there are some costs involved in transportation and infrastructure and employees. No idea what that might add up to.First I will say using Lindsey as a gate keeper... huge eye roll
But I made it 4 minutes and was reminded to calculate something that I had been thinking of. Economies of scale.
Using what Bernie said, the Major oil COMPANIES profited $35 billion the first qtr. That is $35,000,000,000.
The US uses aprox 33.2 billion gal of automotive gas per quarter. That is 33,200,000,000. (that's the first search result that popped up)
That makes a $0.9489 per gallon profit. Ok that could, depending on what your narrative is, construed as excessive profit. But business is not in BUSINESS to break even. When "it" hits the fan in the most minuscule way, their employees are jobless if they are not profitable.
So lets say they reduce that profit 50%. That reduces the price of gas today by $0.47 . That gas that was averaging ~$2.10 (2020ish) that is now averaging ~$5.05 is cheap at $4.53 if big oil cut back pricing. Heck lets make the free market oil run at net zero. Gas would be ~$4.10, does that make ya'll feel better that big oil can close down and cut out your entire life within a few days if it hits the fan? This is not just gas, think of all of the petroleum needed to make your solar panels and rainbow flags.
Yes Oil makes a profit. Does apple?
OK bring it.
OKFirst I will say using Lindsey as a gate keeper... huge eye roll
But I made it 4 minutes and was reminded to calculate something that I had been thinking of. Economies of scale.
Using what Bernie said, the Major oil COMPANIES profited $35 billion the first qtr. That is $35,000,000,000.
The US uses aprox 33.2 billion gal of automotive gas per quarter. That is 33,200,000,000. (that's the first search result that popped up)
That makes a $0.9489 per gallon profit. Ok that could, depending on what your narrative is, construed as excessive profit. But business is not in BUSINESS to break even. When "it" hits the fan in the most minuscule way, their employees are jobless if they are not profitable.
So lets say they reduce that profit 50%. That reduces the price of gas today by $0.47 . That gas that was averaging ~$2.10 (2020ish) that is now averaging ~$5.05 is cheap at $4.53 if big oil cut back pricing. Heck lets make the free market oil run at net zero. Gas would be ~$4.10, does that make ya'll feel better that big oil can close down and cut out your entire life within a few days if it hits the fan? This is not just gas, think of all of the petroleum needed to make your solar panels and rainbow flags.
Yes Oil makes a profit. Does apple?
OK bring it.
That's not the correct data. I'm not sure what's wrong with it, but I imagine it's because of a gradual shift in production from refineries to blenders. In truth, the US has been producing as much gasoline as it ever has, except for the dramatic drop in 2020 for obvious reasons.OK
So it's perfectly fine for oil companies to do nothing, and by doing nothing, contribute to the weak supply and higher pump prices? Great position to find yourself. Refinery production is down, way down.
My best guess is that by helping to create the shortage big oil will have their hand out for more in the way of subsidies. In my memory there were two Presidents that would have called in the ceo of each company and had a come to Jesus meeting, Nixon and Johnson. Ehhh maybe not the guy from Texas.
The last time crude was $120, gas was about $4.25.Blaming oil companies is just as dumb as blaming presidents. Lots of stuff goes into the cost of a gallon of gas. By your math, the oil companies (in this case, I think we really mean oil refining companies, to be specific) add 90 cents to the price for profit. Indiana adds another 46 cents for taxes, and the feds add an extra 18 cents. Then there are some costs involved in transportation and infrastructure and employees. No idea what that might add up to.
But the biggest factor is and remains the cost of oil. At $120/barrel, that's about $2.85 per gallon of gas, just to pay for the oil*. So the only way to really attack the price of gas is to dramatically flood the global markets with more oil. How do we do that? The only options I can think of that would really even have a chance at making a big difference would be to make nice with Russia by making sure their oil has access to all markets, or to cozy up to OPEC countries that have the capability of increasing production quickly, which, AFAIK, is probably only Saudi Arabia or UAE.
* Each barrel of crude only produces 19 gallons of gas. The other 23 gallons get turned into diesel, jet fuel, and other products. The $2.85 price assumes those other products can be sold at the same margin as the gas. If they cannot, then the actual cost of the oil to produce gasoline goes up. If those 23 gallons were entirely unproductive (i.e., wasted), the actual cost of the oil in a gallon of gas would be a whopping $6.32.
Not sure what blenders are but a google search tells me that a blender uses refinery products. How and where a blender gets the chemicals to mix into gas is more than I care to research but combining the output of refinery and blenders seems a bit misleading. No? i suppose biomass and such could contribute, but there is such a huge difference in the numbers when adding blender numbers to refinery production it just doesn't seem to add up to a reasonable sum. Ethanol doesn't account for such a huge jump.That's not the correct data. I'm not sure what's wrong with it, but I imagine it's because of a gradual shift in production from refineries to blenders. In truth, the US has been producing as much gasoline as it ever has, except for the dramatic drop in 2020 for obvious reasons.