Gas Prices - The Real Story

Economies Of Scale Definition - Gas Prices - The Real Story

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How much is enough? How much behalf from the sales of gasoline to the buyer is enough? The unparalleled profits of the major oil fellowships is at a anticipated amount. The Oil fellowships have found the means to close the store so there is no price competition for gasoline, diesel or heating oil. The only logical answer? There seems to be collusion, and maybe a violation of the Sherman anti-trust act.

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Economies Of Scale Definition

On March 5, 2008 Msnbc reported that "the 12-nation organization of Petroleum Exporting Countries said it would avow current production levels because crude supplies are plentiful and inquire is anticipated to weaken in the second quarter."

Recently, in our local newspaper (March 9, 2008) it was reported that Opec President Chakib Kehelil is quoted as saying "the global store is well supplied, with current market oil stocks standing above their 5 year average." The article continued to say that "Today's prices do not reflect store fundamentals." If the prices are high, without fail they are not due to a lack of crude. They are due to what's happening in the U.S.," Kehelil said. "There is adequate supply. There's fullness of oil there."

On their website, Opec claimed the G8 nations, the Usa, England, Germany, France and a few others make more money in taxes on the Opec petroleum than they make themselves. In Europe some countries have any dollars per gallon tax. A few years ago an Exxon Mobil spokesperson said they made a large whole of money because they are a large company. In researching this on the internet, I was able to find some data that raises some questions to their claims. A great portion of a fellowships size than income or profits is the whole of employees they have.

Wal*Mart, by whole of employees is about seventeen times larger than Exxon Mobil but they make less money. I divided net income for the two fellowships by the whole of their employees. For 2005 it was: Exxon movable net income 1,192.00 per worker and Wal*Mart net income ,222.00 per employee. Wal*Mart has been a very profitable business for a very long time. They have been criticized and they have been called "Greedy" for not providing more to their employees.

This disparity of profits seems to hold for the other major oil fellowships as well.
Is Exxon Mobil operating in a dissimilar Universe? The oil industry managers cannot be doing what they are to all Americans without the protection of both political parties. Even the press seems to be cowed by oil money and influence, where are the voices being raised in protest?

America is famously a "Free store Economy" but when hurricane Katrina did so much damage in the Gulf of Mexico some oil fellowships suffered severe damage to oil rigs and refineries and others did not.

The discussion for raising gas prices then was to mend and replace damaged equipment. In a free market, fellowships that can furnish products to the buyer for less do so to progress their buyer base. In a fixed store suppliers charge the same. Which American cities has had prices that differed by 50 cents or more over a long duration of time because some fellowships had no Katrina damage to make up? Why was there no competition for the customer? There was no contentious pricing. All oil fellowships raised their prices the same !

Ep, Chevron, Conoco-Phillips, Exxon-Mobil, and Shell are some of the integrated oil companies. That means the same business that owns and operates the oil field also owns and operates the refinery. They buy crude oil from themselves !

Everyone in the media addressing the prices of crude oil cites prices from the New York Mercantile Exchange. Who buys and sells there, and why? Why pay over 0 per barrel of oil, when you can pump your own for what? or maybe ? A west Texas article written not so long ago claimed that the cost of extracting crude oil in fields there varied from .00 to .00, depending on the field. West Texas oil fields are largely depleted and they use costly means to passage oil that major fields nearby the world do not require.

How much crude oil is as a matter of fact sold at the New York Mercantile Exchange? On their website on March 14 of this year they stated, "although less than 1% of the commodities traded are as a matter of fact bought or sold through the Exchange. Giving store participants the alternative of delivering through the replacement , however, ensures that the future prices will reflect the under-lying market."

I inquire why is crude oil sold over the replacement at all if not to push the price higher than a contentious but honest free store could manage?

Unfortunately I was not able to find the cost to the oil fellowships of extracting crude oil from their own operations nearby the world. If like Texas, exploration, drilling and extraction costs whole to a barrel and the host countries get and business profits are (50% behalf seems exceedingly high but lets use it anyway), that would be per barrel of crude oil to the market.

According to some well known analysts, the inequity in price of a gallon of crude oil and a gallon of quarterly gasoline at the pump has historically been 85 cents, including refining, taxes, marketing and distribution. That means the markup is .15 when gas is a gallon at the pump.

If the inequity in the middle of a gallon of crude and a gallon of sell gasoline has been 85 cents historically, then a 42 gallon barrel of crude selling at a barrel should consequent in a price for gasoline of .56 at the pump.

Now if my findings are close to the real world oil business costs (closer than the Mercantile replacement price) we are being defrauded on a scale that is approximately unimaginable. The Usa uses approximately 410 million gallons of gasoline per day. The excess profits per day for the industry selling gasoline at .30 per gallon over even gas is over ,108.00 per second, 24 hours a day, 7 days a week, 365 days a year. That is over 22 Million dollars per hour !

If your Opec, and you see ample supplies and questionable demand, Clearly the "Law of furnish and Demand" are being set aside in favor of sure very wealthy and distinguished population for reasons we are not being told.

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