Oil Profit

[Jim Waldron <jwaldron47@earthlink.net>]

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.