To me this is an important question on whether it is the oil companies fault for high gas prices or not. I just see a lot of blame being thrown their way.
They are vertically integrated companies which means they make money all the way up the line from the time the oil leaves the ground. Focusing on just the profit on the end product of gas is misguided.
November 24th, 2009 at 5:26 pm
They are vertically integrated companies which means they make money all the way up the line from the time the oil leaves the ground. Focusing on just the profit on the end product of gas is misguided.
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November 24th, 2009 at 5:38 pm
8
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November 24th, 2009 at 5:50 pm
For every dollar of investment they make $ .07cents. That is a rate of return for you liberal math challenged twits of 7%
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November 24th, 2009 at 6:28 pm
Most are getting a 10% profit margin. On the low side for most Fortune 500 companies. That would work out to be 40 cents at $4.00 per gallon.
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November 24th, 2009 at 7:05 pm
Oil companies are no different in profitability than any other industry. Most successful global business make roughly 7 7o 8% profit. Then everyone in the distribution chain makes about the same percentage at each level. The really big winners on the sale of a gallon of gas are the state and local governments. So, its not one thing but several that lead to the cost of fuel. However, much of the cost to day is related to the value of our dollar. Today it takes more dollars to buy the same products even if the products themselves were not experience price increase. It’s a compound thing.
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Economics 101
November 24th, 2009 at 7:23 pm
4 cents.
Taxes are 42 cents
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