Re: Why $3.00 a gallon
The oil production, drilling and exploration do not go hand and hand with the refinery of oil. Most of the time they are counter each other. Example, the crude oil prices are sitting at $80.00 per barrel-an oil field barrel is 44 gallons, not the 55 gallons for a drum. The Refinery now pays top dollar for the crude oil at $80.00. Now the refinery takes this crude oil and cracks it. Or turns it into petroleum products, i.e. gasoline,diesel,kersonse,jet and avg gas,propane ,oils,gear oil and burner, and bottom line is tar for asphasat or highway materials. Now because the refinerys had to paid top dollar for the crude, their profit margins are slim at best. We actually had a few refinerys shut down for good. To bring these or new back on line is going to cost a pretty penny. Too in the eighties,it was the opposes. oil then was as low as $10.00 a barrel,so the refinerys were making money hand over fist. But I think 3.00 a gallon for gasoline,leaving the road taxes out is almost the bottom line for a refinery to make a profit. Many may not know this but last winter, the gasoline consume down a way down , the refinery tank farms will attest to this. The people just not were buying gasoline because of other high expenses for daily living.
