Commanders Post at The Warpath - View Single Post - The Free Market, price of gas, class warfare or socialism?

FRPLG · 02-04-2008, 01:04 AM

And finally...

What hasn't been discusssed in this thread is why Exxon and their ilk only make .07 a gallon. First off the cost of oil in the world is largely set by a cartel called OPEC. Now a cartel in an industry seeks to:

Collude amongst all competitors to increase profit by reducing actual competition.

Direct effects are limited supply and/or raised prices.

The price of gas is determined by:

cost of product(crude from OPEC) ~50%
refinment ~25%
taxes ~15%
distribution and overhead ~10%

When all is said and done it costs a lot of money for big oil to get a gallon of gas to a gas station.

Now I don't know enough to quite understand why oil companies make so much money. I'd like for someone who does know to explain it.

02-04-2008, 01:04 AM	#43
FRPLG MVP Join Date: May 2004 Age: 47 Posts: 10,164	Re: The Free Market, price of gas, class warfare or socialism? And finally... What hasn't been discusssed in this thread is why Exxon and their ilk only make .07 a gallon. First off the cost of oil in the world is largely set by a cartel called OPEC. Now a cartel in an industry seeks to: Collude amongst all competitors to increase profit by reducing actual competition. Direct effects are limited supply and/or raised prices. The price of gas is determined by: cost of product(crude from OPEC) ~50% refinment ~25% taxes ~15% distribution and overhead ~10% When all is said and done it costs a lot of money for big oil to get a gallon of gas to a gas station. Now I don't know enough to quite understand why oil companies make so much money. I'd like for someone who does know to explain it.