Drop the tax on gas and you will see on avg about 50 cents per gallon less at the pump. Add more to this in certain urban areas and city centers.
So many chemicals come from processing crude oil to make gasoline along with many types of plastics. attempting to punish oil companies by using less gas doesn't exactly hurt them too much.
One thing to keep in mind is there is a difference in profit and profit margin where you carry inventories in products you produce. All of the banter I hear from the talking heads talk about profits and not profit margin. There is a big difference.
Some people are upset that a company can make so much money and are jealous and think its excessive, but you have to look at how entwined the oil industry is in our lives.
When we pay for our consumer goods and the gas to get to the store, we are paying the oil companies several times over with the imbedded costs of producing the product. Here is an example: take a television. the raw materials; plastics, adhesives, foams, paints, epoxys, resins, electronic components etc. The petroleum used in producing some of these components, the petroleum used in lubricants for the machinery to make the products, again for parts on the production floor equipment, plastics and foams for packaging, the trucks, trains and other vehicles used to transport the raw materials and the finished products place to place, maintenance products for those vehicles... I can go on and on up and down the supply chain and show how many times the oil companies are involved in our lives.
When you have a company or better yet an industry that touches each one of us on this planet several fold, then you can understand the incredible amount of consumption of petroluem based products are in our lives. Trust me those "profits" or "profit margins" no matter what your looking at is not entirely gasoline.
Most places in the world pay more for gas than we do now at $ 3.09 for super here in Birmingham. The last time I was in Canada, gas is sold by the liter which takes 3.8 liters to make a gallon if memory serves me correctly.
in the UK, a friend told me gas equals about $1.80 per liter, about 6.84 a gallon. I think this is slightly high, but not too far off.
When you have a business that sells a product that most of the GLOBAL population can afford and use, especially if its a consumable product, you're company is going to make a serious amount of money.
When the price per barrell of oil increases, everything made from that barrell of oil increases in price adding to the imbedded cost of the items that are produced from them. This cost is passed on to the consumers, vendors, suppliers, manufacturers, any amount of middlemen. Its not just gas folks!
We have not built a new refinery in this county for 38 years! The oil companies spend enormous amounts of money maintaining and updating their facilites to comply with the ever constricting environmental regulations. This cost is also passed on to us. There are several areas in this country that are not allowed to be drilled by the environmentalists. Technology has dramatically improved over the past 40 years to make oil exploration safer and more accurate without destroying large areas of land. Piplines have vastly improved safety measure to reduce the severity of spills and impacts to the environment.
We have the technology to produce hybrid cars, fuel cell, CNG, E85, hydrogen and electric vehicles and high tech mass transit, which may reduce our dependency of oil, but it still takes oil to produce some of the components of these vehicles and maintain these vehicles. While these vehicles are not only better for the environment when it comes to air quality they will use less to no gas/diesel. Our global population is increasing and gasoline demand will increase at our current lifestyle level. Add to this, other countries with improving economies who will buy internal combustion vehicles that may or may not be as environmentally friendly as vehicles in other industrialized nations.
I can go on all night, but I think bashing oil companies without understanding what a profit margin is and boycotting gas stations is pointless. We need to look at alternative ways of producing the materials we currently use and find alternative materials in general to produce the products we are used to and make products we can sell to other counties in this "Global Market". I'd like to see the US start producing something marketable and not be such a consumer nation. We also need to work on our educational system in this country where our children can seriously compete with children from other countries for jobs.
Sorry to be so long.
Last edited by Crestwood330; Apr 25th, 2006 at 12:14 am.