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Re: Oil Profit

To: Jim Waldron <jwaldron47@earthlink.net>, land-speed@autox.team.net
Subject: Re: Oil Profit
From: "R. Denton" <foxriverkid@earthlink.net>
Date: Fri, 28 Oct 2005 21:36:28 -0400 (GMT-04:00)
Jim,

I'm not sure what you are trying to say. Are you justifying the high prices at 
the pump? I hope not. I'm at my home in Mexico where gas runs around $175.00 
per gallon and doesn't vhange nor has it changed. I looked for gas stations 
that were for sale in the midwest and could find any other than a two pump 
rural station in Illinois and it was $2,000,000. So much for the 
"pennies-per-gallon theory when discussing retail profits.

If you go to http://www.gasbuddy.com you will find that retail gas prices 
within miles of each other can vary by 60 cents per gallon.

Bob Denton
Guadalajara area, Mexico

-----Original Message-----
From: Jim Waldron <jwaldron47@earthlink.net>
Sent: Oct 28, 2005 4:25 PM
To: land-speed@autox.team.net
Subject: Oil Profit

Did a little cal-q-latn.  Figures could be adjusted  (i'm probably way off on 
some of this)  as I don't know the actual sale price of all of this stuff, but:

Item                            Gallons Price   Total           
Chemical feedstock          1.2 gallons 1.2     $0.50   $0.60           
refinery gas                       1.9 gallons  1.9     $0.00   $0.00 (don't 
know price)                
gasoline                           19.5 gallons 19.5    $2.50   $48.75          
kerosine                           4.1 gallons  4.1     $2.00   $8.20           
diesel fuel                         9.2 gallons 9.2     $2.00   $18.40          
lubrucants                         0.5 gallons  0.5     $4.00   $2.00  (wish I 
could buy motor oil at $1/qt)            
fuel oil                               4.1 gallons      4.1     $2.00   $8.20   
        
bitumen                             1.3 gallons 1.3     $0.00   $0.00 (don't 
know price)                
LPG                                  1.9 gallons        1.9     $2.00   $3.80   
        
                                                                
                Cost per Barrel --------$60.00          $89.95  Sale price      
                                                $29.95  Gross Profit    33.30%

Gross profit is before cost of refining, distribution, and retail.  General 
business practice says around 30% (for large industries) is necessary on the 
gross side to make a net of a few percentage points.  'Course, if you only make 
a penny net on each gallon and sell enough gallons........

Thanks,
Jim W.




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