How much crude is in a gallon of gas?

[ZmOz]

Just wondering...how much crude oil does it take to make 1 gallon of gas? With oil over $70/barrel that's over $1.66/gallon just for the crude!

 

[QC]

Re: How much crude is in a gallon of gas?

This is why I keep preaching that our gas is actually pretty cheap. They gotta make it, transport it and then the rest is taxes and some profit. Even if the oil comnpany produces it for $2 a gal., why refine any of it if someone will pay $70 for it? The point being that as long as someone will pay $70, then they must charge $70. They have stockholders (maybe some of you) who require that they get what they can for their products.

 

[ZmOz]

Re: How much crude is in a gallon of gas?

Sure, they don't make much per gallon, but all of the oil companies are still making BILLIONS in profit every QUARTER! They could sell gas for alot less and still make billions. I do agree that the biggest rapist is OPEC...it should not cost $1.66/gallon for something they pump out of the ground like water.

 

[brother chris]

Re: How much crude is in a gallon of gas?

Edited due to the fact that it had nothing to do with the title of the topic. <br />Sorry for getting off topic Z

 

[Pony]

Re: How much crude is in a gallon of gas?

Back in 2000 i think oil was $32 a barrel or something like that and the lowest oil company profit increase over the same quarter in 1999 was 80%, with most companies showing more like 100% to 120% profit increase over the same period the year before. At that time these companies were posting 4Billion dollar profits, which was unheard of in 2000. I can't even fathom what the profit margins are now. <br /><br />The thing that gets me is that when oil prices go up the pump price goes up, yet the gas at the pump was bought at a lower price. So if the gas in the tanks at the local station were bought at 60$ a barrel for crude and then they raise the price of crude to $70 a barrel, the price for gas in the tanks goes up as well, even though it was originally bought at the lower price. I hate that oil is traded on futures like that.<br /><br />I think you can buy gas based on futures too....So when gas was $1.00 a gallon you could buy $6,000 worth in futures and pay that price until you used all you bought. you always come out ahead as long as prices trend up and not down....I dont know exactly how it works, just saw it on the news the other day

 

[QC]

Re: How much crude is in a gallon of gas?

Originally posted by ZmOz:<br /> all of the oil companies are still making BILLIONS in profit every QUARTER

That's what they are supposed to do . . . That was my point! They HAVE TO charge full pop. It's their duty to their stockholders.

 

[Pony]

Re: How much crude is in a gallon of gas?

dont the stock holders buy gas too......so if the price goes up are they making that much more on their stocks that the extra price at the pump is worth it......i dont think that its their responsibility to overcharge just because the demand is there. yeah they must make a profit, but this is ridiculous

 

[ZmOz]

Re: How much crude is in a gallon of gas?

Originally posted by Quietcat:<br />That's what they are supposed to do . . . That was my point! They HAVE TO charge full pop. It's their duty to their stockholders.

The only thing they HAVE to do is make a profit. They don't HAVE to make more profit than almost any other business in existance. The only reason they get away with it is because we have no other choice but to keep buying. If any other company raped us this much they would go out of business...<br /><br />There are already dozens of gas/oil price threads here. The topic of this thread is how much crude does it take to make a gallon of gas...not why it costs what it does.

 

[Parrott_head]

Re: How much crude is in a gallon of gas?

One barrel of sweet crude (42 gallons) makes about 19.5 gallons of gasoline, 9 gallons of fuel oil,4 gallons of jet fuel and about 11 gallons of other products.

 

[QC]

Re: How much crude is in a gallon of gas?

Call me naive, but I think most businesses are basically the same. You price to what the market will bear. The Mom and Pop store does it and so called "corporate America" does it. They all have to. Sorry if I sound like I am enjoying these fuel prices , but it just makes sense to me. It's a commodity driven biz.

 

[Pony]

Re: How much crude is in a gallon of gas?

Quietcat that only applies to a competetive market. Oil is not that type of market. So i will in fact call you naive. sorry.<br /><br />ZmOz you are correct there are plenty of threads about this. sorry to not answer the posted question in my earlier posts

 

[BoatBuoy]

Re: How much crude is in a gallon of gas?

I wouldn't do it in the Katrina ravaged areas of Miss, Ala. or Louisiana right now, or you'll end up in jail. Down there they call it price gouging.<br /><br />The oil companies can do it to us with government blessing, and it's called making a profit.<br /><br />"What? You mean I can't sell a bottle of water for $5.00?"

 

[Drowned Rat]

Re: How much crude is in a gallon of gas?

PH. Does it make all that or just one or the other?

 

[Parrott_head]

Re: How much crude is in a gallon of gas?

Originally posted by Drowned Rat:<br /> PH. Does it make all that or just one or the other?

Pretty much out of one barrel of oil. It adds up to a bit more than 42 gallons though.

 

[KRS]

Re: How much crude is in a gallon of gas?

Originally posted by Parrott_head:<br />

Originally posted by Drowned Rat:<br /> PH. Does it make all that or just one or the other?

Pretty much out of one barrel of oil. It adds up to a bit more than 42 gallons though.

Vapor

 

[kenimpzoom]

Re: How much crude is in a gallon of gas?

Hmmm... so next time you sell something on ebay, reject the higests bids, and only sell to the third higest bidder. You wouldnt want to be known as a gouger would you?<br /><br />As for having no choice, you do have plenty of choices out there. Go buy a hybrid, or electric car. Walk or ride a bike.<br /><br />Ken

 

[Boomyal]

Re: How much crude is in a gallon of gas?

Originally posted by Quietcat:<br /> Call me naive, but I think most businesses are basically the same. You price to what the market will bear. The Mom and Pop store does it and so called "corporate America" does it. They all have to. Sorry if I sound like I am enjoying these fuel prices , but it just makes sense to me. It's a commodity driven biz.

Right on Quietcat. It's called capitalism. It's what drives the marketplace and insures that you will have the commodity that you want or need. Without it you'd get warehouses full of unsellable 1947 wringer washing machines. <br /><br />The truth is that Arab oil is probably costing about one fifteenth of what it takes to get new oil out of the ground. Is anyone expecting that they should sell their identical product (and sometimes superior) for less than what it would cost to get from a new well elswhere. If you do, you better go back to school and take economics 101. Hey and while you are there how about taking a refresher in American History!

 

[QC]

Re: How much crude is in a gallon of gas?

Originally posted by pony85:<br /> Quietcat that only applies to a competetive market. Oil is not that type of market.

How so? Are you talking about OPEC or the companies that refine it?

 

[Dunaruna]

Re: How much crude is in a gallon of gas?

There was a time when gas was a luxury, but not anymore. It's now a neccesity of life - like bread and milk. It should be highly regulated, but it ain't, instead it is used to generate billions of dollars for individuals and governments. We want capitalism, we got it by the barrel loads. <br /><br />Reality check - wall street dictates oil prices. Period.

 

[Boomyal]

Re: How much crude is in a gallon of gas?

Originally posted by Dunaruna:<br /> There was a time when gas was a luxury, but not anymore. It's now a neccesity of life - like bread and milk. It should be highly regulated, but it ain't, instead it is used to generate billions of dollars for individuals and governments. We want capitalism, we got it by the barrel loads. <br /><br />Reality check - wall street dictates oil prices. Period.

Now you know Aldo, if Australia had big oil reserves they would expect to get the going price on it. I just know that John Howard wouldn't want it any other way. <br /><br />I do not however discount any possibility that someone could manipulate the price of commodities and I certainly do not condone that. Case in point, Enron, with US electric power. If that should ever be found to be the case, in the current venacular, make em walk the plank <br /><br />Your arguement however provides ample justification why we should not have let Saddam Hussein exert his influence to control the price of world oil.<br /><br />BTB, how is this current commodity run up affecting the prices in the highly taxed domains of our beloved cousins??