Taxes: $0.56
Distribution & Marketing: $0.36
Refining: $0.56
Crude Oil: $2.52
So on 100,000 gallons a month at station,
$400,000.00 - Revenue
Government no costs (all net): $56,000 -Taxes
Distribution & Marketing: $36,000.00 - Retailer Nets about 3% per gallon: $12,000.00 approx.
Refiner: $56,000.00 (very high capital costs)
Crude Producer $252,000.00 -An integrated domestic oil company can capture profit at all stages of production and distribution when integrated on both vertical and horizontal basis.
Note: Government gets a free ride on others invested capital it puts no money up while Oil Production Co. must invest billions of capital. Capital risk of "Dry Holes" is shouldered entirely by Oil Co. - Small costs for Arab's ; Heavy risk for off shore producers.
