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  • Posted by LionelHutz 11 years, 3 months ago
    @alfinasplace: if renewable energy is the answer, what is the question/problem?

    Here's my method of answering this question:
    1. Get the cost of a barrel of oil (finance.yahoo.com - it's always on the header)
    e.g. 8/26/2013: $105
    2. There are 42 gallons of oil in a barrel. Divide #1 by 42.
    e.g. 105/42 = $2.50
    3. Add in your state and federal taxes on a gallon of fuel. (http://www.gaspricewatch.com/web_gas_tax...)
    e.g. Wisconsin Diesel = $0.573. Crude+Tax = $3.07
    4. See what the going rate is on final product. (http://www.wisconsingasprices.com/index....)
    e.g. 8/26/2013: $3.75/gallon
    5. Subtract #3 from #4. This is what the oil company could profit, assuming they were magic fairies that refine and distribute fuel at no cost.
    e.g. $3.75-$3.07 = $0.68/gallon

    You should never expect to see prices below what you arrive at in #3. That is the price floor.
    Note if you use the $0.33/gallon distribution and marketing cost from the exxon web site, you see that by far the biggest profit maker in the sale of fuel is THE GOVERNMENT. Why does nobody accuse them of being greedy profiteers?
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