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Oil and the Small Businessman
Message
From
11/05/2007 15:38:52
 
 
To
11/05/2007 15:27:51
Dragan Nedeljkovich (Online)
Now officially retired
Zrenjanin, Serbia
General information
Forum:
Politics
Category:
Other
Miscellaneous
Thread ID:
01224317
Message ID:
01224804
Views:
16
>>>Which part of "price gauging" and "collusion" is not clear?
>>
>>Nobody complained when OPEC influenced price rise by $20 and gas price going by couple cents.
>
>I did, but then realized that the price was kept artificially low for decades. And the way the manufacturing countries were screwed over all the time, it was stupid of them not to use that earlier.
>
>>I feel that some information is required here. US domestic gasoline market stopped to be independent long time ago, about 70s when construction of new refineries was effectively banned. Since then, USA imports increasing amount of gasoline from foreign countries, so currency fluctuations (e.g. between USD and Euro) affect gas price on daily basis.
>>The major thing that is 'not clear' to me is the following. There are too many people with rather preliminary knowledge of oil or any other commodity markets, but with extremely firm knowledge about collusion and gauging. Imho, it says more about personal attitudes or social views than about actual situation in particular industry.
>
>I'm not a faithful reader of Wallmart Street Journal, and I usually take their writing with a largish grain of salt. The oil lobby has too much money and can have the best propaganda money can buy, and they can cherrypick the hardest to prove points as their reasons for doing what they are doing, but they cannot explain away the record profits they had in the last two years.
>
>I only wish to know the split of the pump price, detailed and across the last 30 years, which would show exactly how many cents did go to the manufacturer, how much to the country where the oilfields are, how much for each pipeline or tanker costs, how much to the refinery, how much of each tax along the way, and what did the distributor and pump owner get. Graphed if possible.
>
>I figure any attempt to get such data would hit a stonewall somewhere.

You can read quarterly or annual report of any refinery company. It is available on most financial sites (Yahoo.Finance is one place) and get full set of different prices. Obviously, it's impossible for me to have all these numbers on hands. One generic number: $20 is considered as break-even number for US domestic oil producers; certainly it's much lower in Saudi Arabia.
Edward Pikman
Independent Consultant
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