The amazing thing about blaming others is not reality based, but hearsay and unfounded opinions. My receiving my Masters Degree in Social Work, I learned about humans behavior especially my own. I have been working, on, my personal growth and I found I was like the wilder beast that follows the heard in front of them even if they go over a cliff. I found myself like that with the majority of other Americans that I blamed the Big Oil Companies for the high prices at the gas pumps. Why, because everyone else at the gas pumps were blaming the oil companies. I found I was blaming the wrong people with no real facts. So I share some with you.
The United states consume around 21 million barrels of oil a day.
244 million vehicles on America's highways -- 755 cars for every 1,000 people source: DOT, Pentland].
The United States consumes more gasoline than South America, Europe, Africa and Asia combined source: EIA]. "http://science.howstuffworks.com/environmental/green-science/us-gas...."
||Percent of World Energy Consumed
Who is "gouging" Whom at the Pumps?
Written by JB Williams
Who is getting rich at the gas pumps?
For starters, many average Americans who hold stock in the oil companies, either directly or indirectly through their 410k or mutual fund. But the fact is, the gross profit margin for a gallon of gas in America today, is what it has always been, on average, .08 cents per gallon, (2.5% at $3.00 per gallon). Though retail gas prices fluctuate with crude prices and supply vs. demand, the gross profit margin per gallon remains roughly the same at all times. (No evidence of price gouging here.)
Why have gas prices gone up so much?
They haven’t. Over the last 20 years, gasoline per gallon has increased roughly 60%, which equals an annual average increase of only 3%, which is less than the average rate of inflation.
During the same 20 year period however, the salary of every member of Congress has increased 250% or 12.5% per year. More than four times the average rate of inflation. Who is gouging whom? Who looks greedy now?
Are Americans specifically being gouged by OPEC?
Quite the opposite. The most expensive places in the world to buy gas are The Netherlands, Norway, Italy, Denmark and Belgium, all of which are now above $7.00 per gallon at the pumps. Of course, all of which are socialist governments with even heavier taxes per gallon than America.
The least expensive places in the world are Venezuela, Nigeria, Egypt, Kuwait and Saudi Arabia, ranging between .15 cents and .95 cents per gallon at their pumps. That’s because these are the largest oil saturated countries in the world.
America is the single largest consumer of oil products, yet our retail prices are very average in the world market, despite excessive federal taxation. Who is gouging whom?
Where does all the money go?
Based upon a $3.00 gallon of gasoline, the average break-down is as follows.
Gasoline Retailer $.01 cents per gallon
Oil Company $.08 cents per gallon
Refining $.29 cents per gallon
Marketing/Distribution $.32 cents per gallon
Taxes $.59 cents per gallon
Cost of crude $1.71 per gallon (delivered) Who is gouging who?
Why is there a wide price variation between locations?
Gasoline is used by American retailers as a “loss leader” product. A means of attracting consumers into their retail establishment with at best a “break even” product, in an effort to sell other goods and services at a profit. This keeps prices at the pump as low as possible through open competition. The local stations with nothing but gas to sell will be higher per gallon on average of course.
State to state, additional gasoline taxes and refining requirements as well as distance from the closest refinery are the largest factors. California is particularly high due to their excessive taxation and environmental blend requirements as an example. These added refining requirements also means that California experiences more shortages than any other state. When they run low on supply, they can not import from a neighboring state without violating their more stringent state environmental codes. So who is gouging whom? http://jb-williams.com/4-25-06.htm
Leading Oil and Gas Companies Around the World,Exxon-Mobil Corporation (United States)
Ranks 17th in 2007, but is the largeset oil compnay in the United States.http://www.petrostrategies.org/Links/Worlds_Largest_Oil_and_Gas_Com...
“Exxon’s Profit Rises in Quarter, Helped by Higher Oil Prices”
By CLIFFORD KRAUSS
“Exxon Mobil’s profit in the quarter was $9.25 billion, or $1.85 a share, compared with $6.05 billion, or $1.27 a share in the period a year ago“.
“Published: January 31, 2011. http://www.nytimes.com/2011/02/01/business/01oil.html
Exxon made an $11 billion profit in the first quarter of 2011.
Also worth mentioning, while Exxon had almost $11 billion in profits, they paid $8,000,000,000. In taxes.
"According to this post on Exxon Mobil’s Perspective Blog , “For every gallon of gasoline, diesel or finished products we manufactured and sold in the United States in the last three months of 2010, we earned a little more than 2 cents per gallon. That’s not a typo. Two cents.” http://www.dailymarkets.com/economy/2011/04/27/gasoline-taxes-vs-ex...
Exxon Earns Huge Profits, But Also Pays Huge Taxes
Less than 3 percent of ExxonMobil’s earnings are from U.S. gasoline sales"http://www.theblaze.com/stories/exxon-earns-huge-profits-but-also-p...
China Overtakes USA as Top Energy Consumer as World Demand Grows Strongly, Says BP in 60th Year of Global Energy
Release date: 08 June 2011
China became the world’s largest energy consumer in 2010 overtaking the USA during a year which saw the rebound in the global economy drive consumption higher and at a rate not seen since the aftermath of the 1973 oil price shocks.http://www.bp.com/extendedgenericarticle.do?categoryId=2012968&...
As the Debt Ceiling Fiasco Seems to End,
What Is Next for America?
'Scared the Hell Out of Me! It Was a Wake-Up Call
(Even Though I Wasn’t Asleep)'
— Russ H., Wichita, Kan.
If you thought we are out of the woods because our friends on Capitol Hill have finally decided to play nice with one another … think again. The seemingly annual debt ceiling argument is a symptom of a much greater problem. And one that is going to rear its ugly head again very soon. Let me state it bluntly, a respected economist who has been right time and again is warning of a MAJOR inflation risk ... even warning that 100% annual inflation for three consecutive years is possible. That seems like a situation best suited for a third world economy. But the truth is we are already witnessing price increases of core commodities, like oil, in excess of 100 percent! And remember, the latest downward revisions in GDP show that when we factor in official inflation rates, the U.S. economy is actually contracting! This means many things — including the fact that the government will see revenues decline. The Fed will be forced to even print more dollars to cover a ballooning deficit. The man who predicted this coming inflation storm is somebody whose analysis cannot be ignored.
That man is Robert Wiedemer. He was one of the few voices of reason that attempted to warn our great nation of the four-bubble meltdown that shook the very pillars of America’s economic foundation. Dow Jones quoted his work as “your bible.” Standard & Poor’s said his “track record demands our attention.” In the mid-2000s he predicted with startling accuracy every stage of the recession that would strike, while the folks in Washington were celebrating the false prosperity their decades of mismanagement had caused. And then he foresaw the current debt and dollar crises we are all suffering through now. And now he predicts the worst is still to come. Starting as early as 2012, he says America could begin to witness 50% unemployment … a 90% drop in the stock market … and three consecutive years of 100% annual inflation. I had my doubts at first, but then I saw the evidence in the Aftershock Survival Summit. Click here to see for yourself. And if that occurs the high prices you are paying at the pump now will seem like a picnic compared to the $28-a-gallon gasoline you could be shelling out for in the years ahead. Recently, over one million Americans united to hear Robert Wiedemer’s blunt assessment of what is about to transpire. But more importantly he laid out a step-by-step plan for safeguarding your investments, retirement savings, life insurance, personal finance, house, and even your job. If you have not had a chance yet to view the Aftershock Survival Summit, I suggest you do not wait another moment."
The ongoing blame of the Big Oil Corporations for the high process at the gas pump continues..