
That will be the real story...




There has been alot of talk about the amount of "Profit" the big evil oil companies have been making recently and why we should Tax them to make it fair...
Came across some information on how much we pay for gasoline and where the money actually goes as far as cost of crude, transportation, refining, and taxes...
Interesting fact, most oil companies make an average 13% profit when all is said and done. The average McDonalds makes 28%+...
The average cost of a gallon of gasoline can be broken down into 5 sections:
Crude oil: this money is what is actually paid to the suppliers of the crude oil. Most of this money goes to OPEC countries and is the reason why we should seek our own sources of crude and alternative energy sources... 43%
Taxes: There are many who say that petroleum is big business. One of the biggest "Partners" is the state & federal government... 31%
Refining Costs & Profits: This is the amount of money that the actual Big Oil Companies make but includes cost and profit... 13%
Distribution & Marketing Costs & Profits: The actual cost of transporting the crude to the refineries and then gasoline to the gas stations... 13%
Gas Stations Profits: This is the markup that is made by the individual gas station operator. This amount varies from location to location and can be little as a few cents per gallon up to over $.10 a gallon...
Historical Gas Prices(Adjusted for inflation)
Year
Price Per Gallon
1950 $1.91
1955 $1.85
1960 $1.79
1965 $1.68
1970 $1.59
1975 $1.80
1980 $2.59
1985 $1.90
1990 $1.51
1995 $1.28
2001 $1.66
2002 $1.31
2003 $1.52
2004 $1.79
Source: U.S. DOE
Global Gas Prices per Gallon:
Amsterdam $6.48
Oslo, Norway $6.27
Milan Italy $5.96
Denmark $5.93
Belgium $5.91
Venezuela $0.12
Nigeria $0.38
Cairo Egypt $0.65
Kuwait $0.78
Saudi Arabia $0.91
Source: www.howstuffworks.com


The President also spoke of developing methanol fuel from cellulose products such as the waste from farming and other organic products. This is done by breaking down the organic source such as cornstalks, grass, etc. with enzymes which then produce methanol that would be mixed with fuels.
Now these sources of alternative fuels are needed and research into these areas will be beneficial for both society and the environment. It should and will be the free market that makes it work and will just be a matter of time. Great advances in Hybrid cars have been made and the government should encourage this research but not control it.
Many politicians have seen the opportunity to capitalize on this subject and many have been quick to criticize the President for his “Connections to Big Evil Oil companies”. Seems that many Democrats have been sure to court the “environmental” vote by attacking those who understand the importance of reliable, and affordable petroleum sources.
And then there is Senator Ted Kennedy (D-Mass). Kennedy has been a strong supporter of, and has received strong support from the environmental community in the past. Seems now that he is leading the opposition of Eco-friendly windmills being placed off of Martha’s Vineyard in Massachusetts. They would be visible from the Kennedy compound when Ted is up there vacationing…
The Washington Times just did an article on this and is good reading….
http://www.washtimes.com/national/20060302-124537-9804r.htm


