According to the US Department of Energy, an average of 13% of the cost of one gallon of gas goes to taxes; oil companies, meanwhile, earn an average of 3% profit after the costs of extraction, royalties, production, delivery and marketing are accounted for.
Oil companies did not receive a "windfall" of profits recently. In fact, according to the American Petroleum Institute, when the average profit margin of oil and natural gas companies is compared side by side with the average profit margin of all other industries from 2000 to 2005, oil and gas companies only made seven tenths of a cent more per dollar.
In addition, when broken down and compared side by side with other notable industries, oil and gas companies had less of a profit margin per dollar in the third quarter of 2006 than that of the average of the Pharmaceutical (21 cents), Beverage and Tabacco (19 cents), Electrical Equipment (14 cents), Chemical (13 cents) and Computer (11 cents) industries. Oil companies came in just under ten cents.
Gasoline has only experienced an 70% price change since 1982. This, compared to food (90%), housing (93%), rent (120%), medical care (225%) and tuition/school/childcare (325%).
More truth about the oil industry coming every week!
Wednesday, July 25, 2007
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