Where Does All That Gas Money Go?

I know you've probably seen this about a thousand times this year, but just in case you haven't, here's where the gas money you spent this morning went:

$3.77 = 1 Gallon of Gas (National Average)
----------------------------------------------------
$2.72 = Crude Oil
$0.45 = Taxes
$0.30 = Refining
$0.27 = Distribution & Marketing
$0.03 = Retail Markup

This is based on 5 minutes of Google research, so take these numbers with a grain of salt. Still, I found a couple different sources who had basically the same numbers. Some thoughts:

Your Local Gas Station Isn't Getting Rich
NPR says that nationwide, retail gas stations make about 3 cents per gallon on gas. That's a 0.8% markup at the retail level. Go ask your favorite shop at the mall what their retail markup is. They're not going to tell you, but I'd bet it's somewhere around 100%. Even Wal-Mart is rumored to have about a 30% markup on consumer goods. Once you figure in credit card transaction costs, most retail gas stations are selling gas at a loss. The lucky ones are breaking even. All of them are hoping to make up the difference selling Twinkies and Slurpees. There's a reason that all the big oil companies got out of the retail business a long time ago. Even though your local gas station has a Shell or Conoco sign, it's probably just a franchise with local ownership. Shell and Conoco want no part of retailing gasoline. There's no money in it.

Big Oil is Robbing Us Blind!
Maybe, maybe not. Exxon is the largest corporation in the world. $117 Billion passed through Exxon's hands last quarter. If Exxon were a country, it would have the 18th largest economy in the world - right between Turkey and Sweden. $11 Billion of those dollars were "net income," which we'll just call profit. $11 Billion is a lot of money to make in three months. In fact, it's very nearly the largest amount of money made by any company in any quarter, ever. (Exxon set the record in the last quarter of 2007.)

What if we totally over-simplified things and did a little math? Exxon spent $106 Billion last quarter, they made $117 Billion, and they put $11 Billion in their pockets. That's a 10% profit margin. McDonald's had a 17% profit margin. Pepsi was at 14%. Microsoft at 30%.

Sure, Exxon made a ton of money this quarter. But as a percentage of total revenue, Exxon's profit is not out of line with the rest of corporate America.

Oil Costs A Lot
As I write this, a barrel of oil is going for $126. When adjusted for inflation, this is very near the highest price of oil ever. In 1998, the inflation-adjusted price was $15. That was the lowest price of oil ever. In 10 years, oil prices have risen 740%.

It's fun to blame speculators for the increase. If it's all just speculation, then eventually the bubble will burst, and we'll be back to $1.25 for a gallon of regular. I'm not convinced.

There is only so much oil in the ground. We've already dug up most of the easy stuff. Now all that's left is the oil that's hard to get to - the oil that's 5 miles deep or stuck in a shale rock formation or owned by some crazy dictator. If the oil is hard to get to, it costs more. Even with significant technological advances, it's not going to get much easier to move oil out of the ground and into your car.

On top of that, demand is constantly increasing. China, India, and the rest of the developing world are getting richer. They want all the cool stuff that we just take for granted. They want cars. They need oil.

Maybe there's some speculation built into the current price of oil, but the fact remains that oil is getting more expensive to procure, and demand is increasing. I can't imagine how these trends could reverse in the near future.

We may see an oil price collapse in the coming months or years, but I have a feeling that it will only be temporary relief and not a permanent solution. There will be some peaks and valleys, but oil prices are going to go up until the world finds a better way to power itself.

The growing, global economy is currently powered by a shrinking, finite resource. The next 50 years should be pretty interesting.

Tuesday Love

I love looking forward to a shortened week. I love puzzles at work, even if they cause stress. I love playing GTA IV, even though I don't really have the time. I love grilling out with Kari. I love the phrase grilling out, for some reason it reminds me of Asher, I may have picked it up from him. I love that Andy is coming to visit this weekend, and we are going to see Josh Ritter, and the Naptown Roller Girls. I love the Naptown Roller Girls. This weekend is going to be legendary.

Strapped 30 second teaser

The Greatest Ex-Celebrity of All Time

Ah, the secret lives of cats. Tonight I was at an event that included a few once-famous celebrities. The most well-known was the woman who played Janet on Three's Company (also, one of the characters from Welcome Back Kotter, one of the designers from Project Runway a couple of seasons ago, and child star Mason Reese). It made me wonder: who is the greatest formerly-famous-but-still-famous-but-only-because-they-were-once-famous star of all time. Please justify your answer.

I'll start. My vote goes to Gary Coleman. He had a memorable catch phrase, a successful career, and is still easily recognizable.

A Sunday Morning Meditation

WHAT CAN I DO FOR YOU?



You have given everything to me.
What can I do for You?
You have given me eyes to see.
What can I do for You?

Pulled me out of bondage and You made me renewed inside,
Filled up a hunger that had always been denied,
Opened up a door no man can shut and You opened it up so wide
And You've chosen me to be among the few.
What can I do for You?

You have laid down Your life for me.
What can I do for You?
You have explained every mystery.
What can I do for You?

Soon as a man is born, you know the sparks begin to fly,
He gets wise in his own eyes and he's made to believe a lie.
Who would deliver him from the death he's bound to die?
Well, You've done it all and there's no more anyone can pretend to do.
What can I do for You?

You have given all there is to give.
What can I do for You?
You have given me life to live.
How can I live for You?

I know all about poison, I know all about fiery darts,
I don't care how rough the road is, show me where it starts,
Whatever pleases You, tell it to my heart.
Well, I don't deserve it but I sure did make it through.
What can I do for You?

~Words and Music by Bob Dylan~

For Tara

LEAH: This one is short. Only 4:59 minutes long.

From Reformissionary

**WARNING** Long Video Ahead

LEAH this is 1.5 hours long. 45min lecture and 45 min Q&A
It is really good though.
;)

Statements Of The Christian Faith - The Heidelberg Catechism

~His Title~

Day 12

31. Why is He called “Christ,” that is, Anointed?
Because He is ordained of God the Father and
anointed with the Holy Spirit[1] to be our chief
Prophet and Teacher,[2] who has fully revealed to us
the secret counsel and will of God concerning our
redemption;[3] and our only High Priest,[4] who by
the one sacrifice of His body, has redeemed us,[5]
and ever lives to make intercession for us with the
Father;[6] and our eternal King,[7] who governs us
by His Word and Spirit, and defends and preserves
us in the redemption obtained for us.[8]
[1] Ps 45:7 [Heb 1:9]; Isa 61:1 [Lk 3:21-22, 4:18]; [2]
Deut 18:15 [Acts 3:22]; [3] Jn 1:18, 15:15; [4] Ps 110:4
[Heb 7:17, 21]; [5] Heb 9:12, 10:11-14; [6] Rom 5:9-10,
8:34; Heb 9:24; 1 Jn 2:1; [7] Zech 9:9 [Mt 21:5]; Lk 1:33;
[8] Ps 2:6; Isa.61:1-2; Mt 28:18-20; Jn 10:28; 1 Pt 2:24;
Rev 12:10-11, 19:16

32. But why are you called a Christian?
Because by faith I am a member of Christ[1] and thus
a partaker of His anointing,[2] in order that I also
may confess His Name,[3] may present myself a
living sacrifice of thankfulness to Him,[4] and with a
free conscience may fight against sin and the devil in
this life,[5] and hereafter in eternity reign with Him
over all creatures.[6]
[1] Acts 11:26; 1 Cor 12:12-27; 1 Jn 2:20, 27; [2] Joel2:28
[Acts 2:17]; 1 Jn 2:27; [3] Mk 8:38, 10:32; Rom
10:9-10; Heb 13:15; [4] Rom 12:1; 1 Pt 2:5, 9; Rev 1:6,
5:8, 10; [5] Gal 5:16-17; Eph 6:11; 1 Tim 1:18-19; [6] Mt
25:34; Eph 6:12; 2 Tim 2:12; Rev 3:21

Tuesday Love

I loved visiting Rob and Ami this weekend. We had a good time Mario Karting, and watching How I Met Your Mother. I love that Adam is giving me another excuse to visit New York this year. I loved getting to see Lena before her prom, and I love that she kept herself safe, and "made wise choices". I loved intimidating her date. I love that I get to vote this afternoon, and also mow my lawn and grocery shop (I'm really trying the name it claim it thing here, that if I say I love it, I will actually love it).

I love that I can also hate.

Monday Discussion

I'm interested in anyone and everyone's thoughts on the following:

Acts 2:

And all those who had believed were together and had all things in common; and they began selling their property and possessions and were sharing them with all, as anyone might have need.

Luke 18:

When Jesus heard this, He said to him, "One thing you still lack; sell all that you possess and distribute it to the poor, and you shall have treasure in heaven; and come, follow Me."

Bally's For The Mind

"Where is your God, my boy?"
said an infidel to a child whom he saw coming out of a church.
"Where is your God, about whom you have been reading? Show Him to me, and I will give you a treat!"

"Show me where He is not," was the answer, "and I will give you two!
My God is everywhere!"

"The eyes of the Lord are in every place, beholding the evil and the good!"
(Proverbs 15:3)