The price of oil is given by the cost of one barrel of oil. A barrel of oil is 42 gallons. At an oil price of $138 a barrel, the price of oil is $3.29 a gallon. Yet we wonder why gasoline costs $4 a gallon. With gasoline prices in the range of $4 a gallon, this leaves about $0.70 (70 cents) a gallon for oil to be processed into gasoline and other derivative products and for gasoline to be delivered and sold at the local gasoline station. Costs that must come out of the $0.70 include transportation to oil refineries, actual oil processing in accordance with environmental regulations, delivery to the gas station and ultimately to the pump.
Taxes also are part of the price of gasoline at the pump. To begin the tax calculation, the federal tax on gasoline is $0.184 per gallon (18.4 cents). State taxes vary from state-to-state, from a low of $0.08 a gallon in Alaska to a high of $0.32 per gallon in Wisconsin. Gasoline taxes in most states are in the 18 to 25 cents a gallon range but New York state gasoline tax is 32 cents a gallon and in Pennsylvania the gasoline tax is 31 cents a gallon.
Now recall that we started with $0.70 (70 cents) a gallon over the oil price for processing, etc. the oil and for bringing gasoline to the pump at the gas station, and all together the gasoline price of $4.00 a gallon includes state and federal taxes for a total of $0.27 per gallon in Alaska to $0.51 in Wisconsin. This leaves a potential "profit" maximum of $0.33 (33 cents a gallon) in Alaska and $0.19 (19 cents a gallon) in Wisconsin.
The profit for the oil company and the gas station must come out of the 33 cents or 19 cents. However both the oil company and gas station have costs that must be added to costs they incur before setting the gasoline price to you at the pump. These costs vary but there isn’t a lot of room for oil company stockholders and gas station owners to reap the benefit of their investments. The obvious question then is how come oil companies are reporting such large profits if the numbers show the profit potential per gallon of oil to be so relatively low. The answer is volume.
Whole article is here.
Tuesday, June 10, 2008
Oh, yes, let's nationalize heath care!
Here's another story of how wonderful it is to have government in charge of health care.
Until a few years ago, all women in the UK were offered regular screening for cervical cancer from the age of 20; then in 2004 the screening age in England was raised to 25 (it remains at 20 in Scotland and Wales).
...which is unfortunate for the young women who are dying of cervical cancer because they couldn't get pap smears even though they wanted them!
According to Professor David Luesley, adviser to the NHS Screening Programme, 'The needs of the many outweigh the needs of the very few.' Wonderful.
(The whole story is here.)
Until a few years ago, all women in the UK were offered regular screening for cervical cancer from the age of 20; then in 2004 the screening age in England was raised to 25 (it remains at 20 in Scotland and Wales).
...which is unfortunate for the young women who are dying of cervical cancer because they couldn't get pap smears even though they wanted them!
According to Professor David Luesley, adviser to the NHS Screening Programme, 'The needs of the many outweigh the needs of the very few.' Wonderful.
(The whole story is here.)
Monday, June 9, 2008
Obomba?
I had thought that the only potential positive thing about Obama as a president would be a more sane foreign policy. I was disappointed to read this over at Antiwar.com.
Don't look to Barack Obama for deliverance from this looming conflict [between Israel and Iran]. In his speech to AIPAC, he clearly signed on to the Lobby's latest project, departing from his prepared text to declare:
"I will do everything in my power to prevent Iran from obtaining a nuclear weapon. Everything in my power. Everything."
"Everything" includes murdering tens of thousands of Iranians, mostly civilians – driving the price of oil up above $300 a barrel and destroying the US economy – and involving us in a war that will make the Iraq conflict look like a Sunday school picnic. And for what?
The irony, of course, is that Iran is nowhere near obtaining nuclear weapons, as the President's own intelligence agencies recently informed him: but no matter. That's a small obstacle to those who disdain "the reality-based community," and see themselves as Making History while the rest of us watch, helpless and aghast.
Don't look to Barack Obama for deliverance from this looming conflict [between Israel and Iran]. In his speech to AIPAC, he clearly signed on to the Lobby's latest project, departing from his prepared text to declare:
"I will do everything in my power to prevent Iran from obtaining a nuclear weapon. Everything in my power. Everything."
"Everything" includes murdering tens of thousands of Iranians, mostly civilians – driving the price of oil up above $300 a barrel and destroying the US economy – and involving us in a war that will make the Iraq conflict look like a Sunday school picnic. And for what?
The irony, of course, is that Iran is nowhere near obtaining nuclear weapons, as the President's own intelligence agencies recently informed him: but no matter. That's a small obstacle to those who disdain "the reality-based community," and see themselves as Making History while the rest of us watch, helpless and aghast.
Monday, June 2, 2008
Challenging stuff
I'm in the process of watching "The Americanization of Emily," a 1964 movie starring Julie Andrews and James Garner. I never realized how anti-war it is. I just saw a scene where James Garner's character is talking with a war widow about the war. It almost sounds blasphemous given the type of patriotic sentiments we are raised with and surrounded by in this country. But it's important to challenge those notions, I think. Here's a bit of the dialog (courtesy of this article on the movie):
Emily warns him that her mother is a bit mad and has taken to referring to her fallen husband and son as though they were still alive. He does his best to charm Mrs. Barham (Joyce Grenfell), and then initially attempts to impart his views on war in a facetious manner:
War isn’t hell at all. It’s man at his best; the highest morality he’s capable of … it’s not war that’s insane, you see. It’s the morality of it. It’s not greed or ambition that makes war: it’s goodness. Wars are always fought for the best of reasons: for liberation or manifest destiny. Always against tyranny and always in the interest of humanity. So far this war, we’ve managed to butcher some ten million humans in the interest of humanity. Next war it seems we’ll have to destroy all of man in order to preserve his damn dignity. It’s not war that’s unnatural to us – it’s virtue. As long as valor remains a virtue, we shall have soldiers. So, I preach cowardice. Through cowardice, we shall all be saved.
She is completely oblivious to his irony:
That was exalting, Commander … after every war, you know, we always find out how unnecessary it was. And after this one, I’m sure all the generals will dash off and write books about the blunders made by other generals, and statesmen will publish their secret diaries, and it’ll show beyond any shadow of a doubt that war could easily have been avoided in the first place. And the rest of us, of course, will be left with the job of bandaging the wounded and burying the dead.
His mockery unsuccessful, Charlie makes his point as clear as possible in one of the most pointed, devastating anti-war monologues ever heard in film:
Charlie: I don’t trust people who make bitter reflections about war, Mrs. Barham. It’s always the generals with the bloodiest records who are the first to shout what a Hell it is. And it’s always the widows who lead the Memorial Day parades … we shall never end wars, Mrs. Barham, by blaming it on ministers and generals or warmongering imperialists or all the other banal bogies. It’s the rest of us who build statues to those generals and name boulevards after those ministers; the rest of us who make heroes of our dead and shrines of our battlefields. We wear our widows’ weeds like nuns and perpetuate war by exalting its sacrifices. My brother died at Anzio – an everyday soldier’s death, no special heroism involved. They buried what pieces they found of him. But my mother insists he died a brave death and pretends to be very proud.
Mrs. Barham: You’re very hard on your mother. It seems a harmless enough pretense to me.
Charlie: No, Mrs. Barham. No, you see, now my other brother can’t wait to reach enlistment age. That’ll be in September. May be ministers and generals who blunder us into wars, but the least the rest of us can do is to resist honoring the institution. What has my mother got for pretending bravery was admirable? She’s under constant sedation and terrified she may wake up one morning and find her last son has run off to be brave.
Charlie’s compelling speech is so stunning, so jarring, that Mrs. Barham snaps out of her delusional denial and admits aloud, for the first time, that her husband and son are dead.
Emily warns him that her mother is a bit mad and has taken to referring to her fallen husband and son as though they were still alive. He does his best to charm Mrs. Barham (Joyce Grenfell), and then initially attempts to impart his views on war in a facetious manner:
War isn’t hell at all. It’s man at his best; the highest morality he’s capable of … it’s not war that’s insane, you see. It’s the morality of it. It’s not greed or ambition that makes war: it’s goodness. Wars are always fought for the best of reasons: for liberation or manifest destiny. Always against tyranny and always in the interest of humanity. So far this war, we’ve managed to butcher some ten million humans in the interest of humanity. Next war it seems we’ll have to destroy all of man in order to preserve his damn dignity. It’s not war that’s unnatural to us – it’s virtue. As long as valor remains a virtue, we shall have soldiers. So, I preach cowardice. Through cowardice, we shall all be saved.
She is completely oblivious to his irony:
That was exalting, Commander … after every war, you know, we always find out how unnecessary it was. And after this one, I’m sure all the generals will dash off and write books about the blunders made by other generals, and statesmen will publish their secret diaries, and it’ll show beyond any shadow of a doubt that war could easily have been avoided in the first place. And the rest of us, of course, will be left with the job of bandaging the wounded and burying the dead.
His mockery unsuccessful, Charlie makes his point as clear as possible in one of the most pointed, devastating anti-war monologues ever heard in film:
Charlie: I don’t trust people who make bitter reflections about war, Mrs. Barham. It’s always the generals with the bloodiest records who are the first to shout what a Hell it is. And it’s always the widows who lead the Memorial Day parades … we shall never end wars, Mrs. Barham, by blaming it on ministers and generals or warmongering imperialists or all the other banal bogies. It’s the rest of us who build statues to those generals and name boulevards after those ministers; the rest of us who make heroes of our dead and shrines of our battlefields. We wear our widows’ weeds like nuns and perpetuate war by exalting its sacrifices. My brother died at Anzio – an everyday soldier’s death, no special heroism involved. They buried what pieces they found of him. But my mother insists he died a brave death and pretends to be very proud.
Mrs. Barham: You’re very hard on your mother. It seems a harmless enough pretense to me.
Charlie: No, Mrs. Barham. No, you see, now my other brother can’t wait to reach enlistment age. That’ll be in September. May be ministers and generals who blunder us into wars, but the least the rest of us can do is to resist honoring the institution. What has my mother got for pretending bravery was admirable? She’s under constant sedation and terrified she may wake up one morning and find her last son has run off to be brave.
Charlie’s compelling speech is so stunning, so jarring, that Mrs. Barham snaps out of her delusional denial and admits aloud, for the first time, that her husband and son are dead.
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