Thursday, April 20, 2006
What is the real price of oil?
In 1999 when oil was around $30 a barrel and gas cost us $1.30 a gallon, the actual cost of the oil was around 10 cents a gallon. The refining, distribution and profit was $1.20.
Now that oil is $70 a barrel, the actual cost of that oil has gone up to around 25 cents. The refining, distribution hasn’t changed that much, but the profit sure has!
If the oil companies kept the same profit ratios as in 1999, a gallon would be costing us $1.35!
Are the oil companies taking advantage of us? You bet. Could it have started when Cheney had his Energy Task Force!
Now that oil is $70 a barrel, the actual cost of that oil has gone up to around 25 cents. The refining, distribution hasn’t changed that much, but the profit sure has!
If the oil companies kept the same profit ratios as in 1999, a gallon would be costing us $1.35!
Are the oil companies taking advantage of us? You bet. Could it have started when Cheney had his Energy Task Force!
# posted by Florence Vincent @ 12:55 PM 
