Why are gasoline companies recording record profits with oil prices rising? Isn't this odd?

One would think that the profit margin would remain the same if the mark-up on the barrel of oil remains the same. This sounds fishy.Why are gasoline companies recording record profits with oil prices rising? Isn't this odd?
Fishy is not the word I'd use for the economic predators feasting on us!





I wrote this not more than an hour ago to another Q about oil profits and feel it is worth repeating here. I hope it helps you %26amp; others to understand ';the situation.';








';Refiner-Marketers might net anywhere betw 0.50 to 1.00 USD/gallon for every gallon that is sold to customers at the pumpstations. But most of the price you pay, about 3$/gallon, goes to well owners to pay for the crude oil that comes out of their wells %26amp; then gets refined into refined products. The oilco's get most of their profits from refining the crudes from those fields they own. When they buy crudes from oil fields that they do not own, like OPEC's, they only make the lousy refining and marketing margins which OPEC pulls oil out of the ground (for less than 0.30-0.50 $/barrel.) This means that most of the profits are going to OPEC and their willing parasites, the OILCO's to the extent that they own oilfields here in the US and in non-Opec countries. Why do you think the 5 major oilco's push so hard for access to ANWR and areas off-shore California? Now you know!!!





OIL Market prices for crudes are set by the OPEC Cartel and the OILCO'S who depend on them bec they have hungry refineries here in the US to feed. The latter are obviously agreeable co-conspirators in the 21st Century economic rip-off of the rest of the whole world that depends on oil from the Middle East which has 65 to 75% of the World's ';Proven Crude Oil Reserves';. (Google the term between the quotes)see--%26gt; http://www.opec.org/library/FAQs/CrudeOi鈥?/a> ';





Remember there are people here who work for the OILCO's who are benefiting from the situation. In fact there is evidence that some are actually paid to post disinformation about the ';situation'; to intentionally confuse you! They like to call you names and they try to discredit the people who are hurt by the high cost of gasoline, diesel and heating oil whenever you speak out. Remember that and Keep your wits about you.





If you take the sales volumes in gallons reported by the oilco's, and the volumetrics for the oil they refine by source from their owned fields and OPEC and use my per gallon margins you can calculate their huge operating incomes and their gross profits. Don't forget to add back in the monies they spend for E%26amp;P in search of new oil fields. They make the greatest profits when the oil they own in the ground otherwise they have to live with the stingy crumbs OPEC gives you! Either way you lose and they win!Why are gasoline companies recording record profits with oil prices rising? Isn't this odd?
But revenue of $65.95 billion fell well below analysts' forecast of $75.64 billion. Nevertheless, it still surged 37 percent from last year's $48.23 billion.


Chevron's revenue would have been higher if its oil production hadn't slipped by about 44,000 barrels per day from last year. Report Abuse

If, The company's production averaged 2.6 million barrels of oil per day in the1stQtr.That means they pulled out of the ground 83.6 million barrels of their company-owned reserves. Multiply by 42gal/barrel you get 3.5 Billion gals. Report Abuse

Multiply the galllons X 3USD/gal %26amp; you estimate 10.4 Billion Dollars in revenues just from sale of that crude about which half is gross profits! (I used reported volumes from the same quoted article'; Report Abuse

Any difference betw my estimate %26amp; their reported profit figure can be due to operating costs which are unavailable in the article! It may be that some of the crudes imported from OPECm which CVX has to refine, may be causing losses offseting some of the gains from refining the company-owned crudes! Report Abuse

These are rough estimates. Please keep that in mind! Report Abuse

1) the profit margin has remained the same - around 10% (which is a really fair profit margin - especially considering other products we buy that are 50 - 100% market up) ... so when the cost goes up, the sale price goes up ...





2) they are also paying a record amount in taxes - something you wouldn't hear about unless you read the business pages





Larry - of course they have it set up so the more something costs, the more they should earn - its called return on investment and is the basis for almost every business decision ever made!!
Your assumption may be accurate if they had to buy all of their oil on the market. But actually they own vast reserves already,.
It is all about Greed and they will keep sucking it out because nobody is putting a stop to it, it is only going to get worse!
They have it set up so the more oil cost them the more profit they make.
Cause oil company execs smell!
They are selfish and will use any excuse to raise prices
because they are greedy bastards