I understand a barrel of oil makes 19.5 gallon of gas, which should be sold at least at $4.87 (95/19.5=4.87) to break even.
refinement of the oil causes dilution.
I understand a barrel of oil makes 19.5 gallon of gas, which should be sold at least at $4.87 (95/19.5=4.87) to break even.
refinement of the oil causes dilution.
November 2nd, 2007 at 8:56 am
That's because the oil is "diluted" to make gas. Sorry, I couldn't think of the term I wanted to use.
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November 2nd, 2007 at 8:56 am
government subsidized
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November 2nd, 2007 at 8:56 am
The trick is in the refining process
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November 2nd, 2007 at 8:56 am
Gas or Petrol is a by-product of oil consumption.
In other words, gas is made from the oil's leftover or waste…
Funny how S H I T is so expensive isn't it!
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November 2nd, 2007 at 8:57 am
refinement of the oil causes dilution.
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November 2nd, 2007 at 8:57 am
You get 42 gallons in a barrel of oil, and you do get only about 19 or 20 gallons of gas from that, but you get many other products from it as well. A typical breakdown would be:
gasoline19.5
distillate fuel oil (Includes both home heating oil and diesel fuel) 9.2
kerosene-type jet fuel 4.1
residual fuel oil (Heavy oils used as fuels in industry, marine transportation and for electric power generation) 2.3
liquefied refinery gasses 1.9
still gas 1.9
coke 1.8
asphalt and road oil 1.3
petrochemical feedstocks 1.2
lubricants 0.5
kerosene 0.2
other 0.3
It actually adds up to a couple gallons more than you started with, from chemicals added during the processing.
You have to factor in the costs of finding, drilling, shipping, refining and selling the oil before you could determine a profit.
With everything factored in, the oil companies have be running at about a 10% profit.
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November 2nd, 2007 at 8:58 am
Other things are made from that oil. such as fuels and OTHER types of oils to manufacture plastics, and the oils to lubricate the machines that fabricate the every day materials such as building automobiles, tiers, you name it.
Plus, we haven't yet seen the affects of this 95 a barrel just yet. we will soon. get ready.
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November 2nd, 2007 at 8:59 am
i work in the oilfield. actually a barrel holds 42 gallons so that might be able to assist you better.
42 x 3 = 126
126-95 = 31
so they are making 31 dollars a barrel profit or roughly 75cents a gallon.
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November 2nd, 2007 at 8:59 am
I don't know how the oil to gas quota actually breaks down in cost .. but be assured that the oil & gas corporations get plenty of big bucks back in return.
Gas prices are rising right now.
When oil prices rise - so does the price of gasoline.
From reports - the oil corporations have a huge profit from gasoline. I know it gets really tough at the gasoline pumps with expense.
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November 2nd, 2007 at 9:06 am
First the "oil man" will tell you that to refine the oil for fuels, they add allot of other chemicals, and a long and costly process, what we see is the end result of the crude oil process. The truth is that a large portion of that $3.00 + a gallon is our own doing, We voted in taxes, that increase the price of fuel, and the other thing is greed on the part of the oil companies.
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