As of Monday, July 1, the state gas tax was raised by 3.5 cents for a total of 53.5 cents per gallon. Add the 18 cents per gallon for the feds, and the measly dime or so the oil companies net per gallon doesn't seem that evil, does it?~aj
Don't listen to political nonsense on what the oil companies make on gas sales.http://www.factcheck.org/2011/05/playing-politics-with-gasol...Do Oil Companies Earn Just 7 Cents on a Gallon of Gas?In opposing the Senate bill to repeal tax breaks for oil and gas companies, Paul claimed that the federal government makes more money in taxes on a gallon of gasoline than oil companies earn in profits. He presented a chart that carried the header "Regular Gasoline Tax v. Oil Company Profit, Per Gallon," showing 7 cents per gallon for the oil companies and 18.4 cents per gallon for the federal government. (In his May 17 speech, he said 7 cents and 18.4 cents per dollar, but it was clear from his chart that he meant per gallon.)But the 7-cents-per-gallon figure grossly underestimates the industry's earnings. It includes only earnings from the sale of gasoline and not earnings on producing and selling crude oil. There are no independent figures on how much oil companies earn on a gallon of gasoline.Paul's per-gallon figure is consistent with a claim ExxonMobil Vice President for Public and Government Affairs Ken Cohen wrote in his blog, "Perspectives," when the company released its 2011 first quarter earnings in April. Cohen, April 28: During the first three months of this year, for every gallon of gasoline and other products we refined and sold in the United States, we earned about 7 cents.We called ExxonMobil and asked how Cohen arrived at his figure. Spokeswoman Kristen Hellmer said it was determined by dividing ExxonMobil's "downstream earnings ($694 million) by the number of gallons of gasoline and other products refined and sold during the quarter in the U.S. (9,355 million gallons). The result is 7.4 cents per gallon." Downstream earnings are what the company earns from refining crude oil into gasoline and other petroleum products and then selling it. But that ignores "upstream earnings," which is how much Exxon earns in producing and selling crude oil. And the cost of oil exceeded $100 a barrel in the first quarter of 2011.Oil industry analyst Kloza called the 7-cents-per-gallon figure "disingenuous," because it ignores high earnings from oil production. "Bringing crude oil to market has been incredibly profitable," Kloza said. "It is disingenuous to say in the downstream we are making only this much."ExxonMobil reported that its upstream earnings were $8.7 billion in the first quarter — up $2.9 billion, or 49 percent, compared with a year ago. As of August 2010, it was the third largest oil refiner in the U.S.In a February 2011 report called "What's Up with Gas Prices?" the American Petroleum Institute reported that on average oil and gas companies earned about "6 cents for every dollar of sales" — not every gallon — in the third quarter of 2010. Rayola Dougher, API’s senior economist, said she arrived at that figure by dividing net income by total revenues for about two dozen integrated oil companies and independent producers. By her unofficial calculations, Dougher said, the average so far in the first quarter of this year is 7.6 cents per dollar of sales. “If you are a producer and getting more money for a barrel your profits go up,” she said.
Wasn't the original post about Gasoline Tax and the cost of gasoline? I don't recall anything being said about the profitability of other phases resulting from the production of crude oil. (You changed the subject.)The fact is and remains that the oil companies invest a lot of money; and provide jobs during the exploration for oil and the drilling and the refining. They take all the risk, provide all the jobs and the pay, and earn about 10 cents per gallon for their effort. The States and the federal government contribute nothing to the process, but in this example California is getting 53 cents and the feds are taking another 18 cents per gallon. This is a tax on the gasoline users.Uh... That would be YOU and me.tb2
California skims (read: steals) taxes off everything. In addition to the regular 8.75% sales tax, lumber yards and home improvement stores now collect a 1% "Lumber Tax" on all wood products sold, and a 15¢ tax per can of paint sold — or anything in a metal can for that matter.~aj
I fail to understand how anyone could ever support any oil company.. over and over we see their shenanigans, lies, double dealing, ducking and dodging spills, cleanups, all the while overpaying the loser CEOs, in spite of major spills, failures on their watch.. Lobbying, they have it mastered.. So in the end we can only choose the lesser of evils as we go do our dealing... A friend's family has owned his own station for decades, so we'll buy there,if we are not near Costco... It's a shady business, run by shady folks, they sit on leases to keep smaller drillers out, yet want more... Just plain greed... Look at the fight to stop electric vehicles sales, teaming up with auto dealership organizations to stop you or I from buying direct from the manufacturer... What other product is so tightly controlled? Buy a Tesla, be done with 'em!We should be paying more attention on how our CA road taxes are spent, make the most of it here in CA... weco
Wasn't the original post about Gasoline Tax and the cost of gasoline? I don't recall anything being said about the profitability of other phases resulting from the production of crude oil. (You changed the subject.)The original post stated the gas companies make 10 cents and the State tax etc was significantly more. In reality, not quite so simple.It's political BS and anyone with more than a single brain cell shouldn't use it as talking point on anything IMO.
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