More on gas prices...

[wrxpilot]

In "Celebration" of oil hitting $75 today, I decided to make a bunch of gross assumptions and see how much the oil companies might profit related to our price increases. Here's a simple calc (USA only, sorry Euros!):

Let's assume:
-200 million people drive per day
-Each drives 30 miles/day
-Each averages 20 mpg, giving about 1.5 gals burned per person per day

-This gives 300 million gals of gas burned every day in the US

Assume a $1 increase in the per gallon cost (we should be so lucky!)

-This would give a $300 million per day INCREASE in revenues.
-This is about $110 billion/yr INCREASE for the US oil industry.

There's a lot of money out there in the oil industry!! I've made a lot of big assumptions, but the point is to put the cost increases in perspective. Do you think most of this increased cash is going to operations? Is it profit? Where is it going?

 

[Skyranger777]

you know something is wrong when the oil companies are posting the biggest profits EVER! and we are all going broke paying for their houses and yachts!

The only thing I am thankful of is that I have a car the gets about 35-40mpg and costs about $30 to fill up (as of yesterday $2.69)

 

[BenderGonzales]

wow... what kind of car is that?

 

[ultrarunner]

If you can't beat 'em, join 'em. The nice thing about 401K's is the control you have on where you invest. It should be an excellent quarter if not the full year!

 

[Skyranger777]

wow... what kind of car is that?

2002 Kia Spectra. I bought it really cheap a year ago. I have never gotten less than 400 miles on a tank, but my best was 500 on a road trip.

It may not be the most impressive car on the road but it runs great and is cheap to operate.

 

[CaravanMan]

The other night on the news here in Wichita showed a ton of people PAWNING stuff just to afford gas money! One guy pawned a lawn mower, and that's what he does for a living- mows lawns. Other people were pawning wheels and rims (some rims looked pretty nice too), jewelery, and all sorts of stuff. That's messed up. Frickin' black-hearted oil companies. Bunch of scumbags.

 

[jetflyer]

Deleted. My mommy told me if I can't say anything nice not to say anything at all

 

[PacoPollo]

Bush nor Cheney arent affected....

 

[jetflyer]

Wrx,
I kept thinking about your analysis more and more and thought I'd see how close you were on some of your assumptions. It turns out I found that we in the U.S. actually use over 400 Million gallons of gasoline per day! You were pretty darn close though and I was surprised how well you did with just guessing.

So the oil companies are making more than you even predicted!

It turns out that of the 21+ Million barrels we use/day in the U.S. only about 46% of that is used for GASOLINE.

The remaining 54% is used for heating oil, plastics, fertilizers, pesticides, tires, Diesel, Kerosene, Jet fuel, asphault, petrochemicals, etc.

Jet

 

[FN FAL]

It turns out that of the 21+ Million barrels we use/day in the U.S. only about 46% of that is used for GASOLINE.

The remaining 54% is used for heating oil, plastics, fertilizers, pesticides, tires, Diesel, Kerosene, Jet fuel, asphault, petrochemicals, etc.

Jet

You forgot flame throwers. My grandmaw forgot flamethowers once. Once.