Tuesday, May 27, 2008
Breakdown of the price of gasoline or where the hell does your money goes for that $4 per gallon gas
I did a bit of research on the web and found the gasoline primer from the Energy Information Administration, the official energy statistics from the United States government. The lowdown is this: only 9% of the cost for gasoline goes to oil companies profits, which is less than half of what the federal and state government makes in tax revenues (remember that the next time so idiot mouths off about 'Big Oil' less they're referring to OPEC). The single biggest contributor to the price of gasoline is the cost of crude oil. In 2004, crude oil prices contributed to 47% of the cost of oil. One year later in '05, that number jumped to 53%. And now, in today's $4 per gallon gasoline market, crude oil prices consist of 72% of the cost of oil. That's $2.88 out of $4 going to supplies of the raw material used to make gasoline, and the vast majority of that crude comes not from U.S companies, but is imported from nations that has nationalized their oil industry, some of which has formed cartels to stifle competition and fix the price of oil (I'm pointing at you OPEC) And add in the fact that the economy India and China, (both nations together has 9 times the population of the US) are growing at record rates, the demand for oil is skyrocketing as supplies is in the hand of mostly corrupted dictatorships. And what does this has to do with the environmentalist movement? The environmentalists has been the cause of our gasoline woes. No new refineries has been built in the United States in 25 years. 85% of off shore oil (76 billion barrels of recoverable oil) is off-limits and now Democrats, at the behest of environmental extremists, are setting their sites on oil shale and coal liquefaction. And worst of all, none of the factions will owe up to their responsibility for jacking up the cost of gasoline and the lack of energy independence for this nation.
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