I was listening to the radio the other day when I heard that the cost
to refine a barrel of oil ranged between $8 for Middle East Oil to $15
for North Sea or Alberta Tar Sands Oil. This got me to thinking of
the range of oil prices over the past 10 years and of how the price of
crude does not seem to be accurately reflected at the pumps.:
Oil Barrel capacity 42 U.S. gallons at 3.78541 L per US Gallon 158.98 Litres. Calculations in US$ & US Gallons
North Sea Oil Refining Cost $15.00 Per Barrel
Middle East Oil Refining Cost $8.00 Per Barrel
(Middle East Oil)
Cost per Gallon @ $17 per barrel = $0.595 Per Gallon
Cost per Gallon @ $45 per barrel = $1.269 Per Gallon
(North Sea Oil)
Cost per Gallon @ $17 per barrel = $0.76 Per Gallon
Cost per Gallon @ $45 per barrel = $1.42 Per Gallon
I understand that transportation and storage costs are not included in
these calculation as I was not able to find any consistent accurate
numbers on cost of production, refining and storage.
"Asias margin to refine a barrel of Dubai crude into high-quality
products is hovering at $6.00 a barrel, Reuters data show."
yet if you go to: www.reuters.com
You get "Sorry no results were found for your search."
Talking with Service station owners I am told that the majority of
their profits are garnered from sales of chocolate bars, bottled
I hear that oil companies are raking in the cash at the moment and
their profit statements are somewhat impressive but it would be nice
to be able to know what the real costs and margins are before buying
any stocks in these firms to be able to separate the paper tigers from
the houses of cards. Anyone in this newsgoup know of any good
One barrel of oil can be broken down in the following approximate
22% Distillate fuel oil
11% Jet fuel
5% Still gas
1% Lubricants and wax
4% Liquid petroleum gas
Again, these percentages are approximate. One barrel of crude oil can yield
around 17-29 gallons of gasoline, dependant on crude oil quality, and
product requirement by the refinery.
Don't forget that a barrel of crude only yields around 18 gallons of
gasoline after refining. Then when you add in federal excise, transport
and state taxes you see where the money goes. I know in NY the taxes
account for over 70 cents per gallon. That is before transport costs are
On 7 Sep 2004 07:26:51 -0700, email@example.com (Al Bundy) wrote:
Partially. Though I guess I want to see through the BS to what is
actually the case with the price of fuel. Every time we turn around
we're told the price of fuel is high for a different reason (low
reserves, low capacity margins, terrorists, 4x4's, EPA regulations, El
Nino, Cold winters, hot summers, etc, etc, etc).
It is just puzzling to me that a relatively finite resource with an
established track record (100+ years) can have such profound erratic
pricing. If I didn't feel like I was getting played for a fool every
time I filled my car & van I suppose that it wouldn't bother me, but
with GM withdrawing the Impact and very few viable options I'm
thinking that if we can't beat them, we'll have to join them & I'd be
disappointed to buy an Enron of the Oil patch.
If I could buy a Suburban or Denali that was powered by electricity
with a 600 mile range I'd be happy, but what is out there? At 40,000+
miles a year fuel predictability and cost begins to be an issue worth
And I was partially joking with you. These price changes are a
mystery. I have seen the local BP price change 15’ in the same day and
be back where it was the next day. They got used to changing the price
so often they put the sign on the ground so the attendant no longer
had to climb a ladder.
On 7 Sep 2004 16:44:11 -0700, firstname.lastname@example.org (Al Bundy) wrote:
Even though it's as true as can be it's still funny as F*ck.
It's sad that in a society where we regulate the temperature that
coffee is delivered at we can't seem to get our government to regulate
fuel price fluctuations.
"As not what the people with the power and money can do for YOU. Ask
what YOU can do for the people with the power and money"
Slightly paraphrasing a speach given by a famous American.
You want the government to put price controls on fuel now? How about
we let the market decide price, but we crack down HARD on illegal
trusts, back door dealing, and other anti-competitive practices? I'm
for the 2nd solution.
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