How much the oil producers earn?
By zenith2007
@zenith2007 (241)
Italy
November 30, 2008 11:28am CST
We start from the premise that oil today costs about 50/60 dollars per barrel.
A few months ago the price was rising and exceeded 140 dollars, it seemed up to 200 dollars.
Surely the producers earn even today with the current price because I believe that never produce at a loss.
Now the question is: if the oil producers earn even today that the price per barrel is 50/60 dollars as profit margina have?
How much does it cost them to produce a barrel of oil?
1 person likes this
4 responses
@dragon54u (31636)
• United States
30 Nov 08
The oil companies' profit margin is about 9%. That means after all the money spent on exploring, drilling, hiring people, paying wages and health care, taxes and other overhead, they get about 9% of what they made. Some of that goes into more research and development.
The stations that sell the gas make about 8 cents per gallon and if you use a credit card to pay for it, that reduces it to 6 cents per gallon.
The winners are the big oil companies at a 9% profit margin which is pretty good considering today's economy and the huge amounts of oil sold but still way below other big businesses that try to have a 20-25% profit margin at the least.
1 person likes this
@pergammano (7682)
• Canada
30 Nov 08
I concur with some of the facts....but a profit is a profit! Net profit is net profit! So somewhere, somehow things are skewed! I myself for one was a Chevron Marine dealer for 18 yrs, here in the Gulf Islands! We did not make 6 cents a gallon, in British Columbia, the amount you make is based on your gross sales! If you sold a hundred thousand gallons - annual sales, you received your Fuel @ a certain price, fifty thousand gallons your price was higher! And, if you are an independent, your credit card fees are much higher! If you are a multi-national chain, (I was Chevron)....or say Shell, your credit card rates are much cheaper! As the parent company negotiates with Credit Card company for your rates! End of month, total your Mastercard sales...deduct 1.35% from total! Same with Visa! American Express totally a different story! And sadly enough, the net profit could put me in a different pdse. category! My income was from hard goods, soft goods & moorage, Fuel was a lost leader! If you didn't have Fuel, boaters would pass you by....but they come in for Fuel & pdse. many other products!
@pergammano (7682)
• Canada
30 Nov 08
That my dear, is/will be the most guarded secret in the world! But their should be a clue in the fact that Exxon alone, their profits were 16 billion...and I repeat BILLION dollars, in the last reporting QUARTER....that would indicate that their profits will be well over 60 billion a year! That doesn't make our day, does it! Cheers, my friend!
1 person likes this
@dragon54u (31636)
• United States
30 Nov 08
Profits are huge, yes, but that's before wages, expenses, taxes and other things. If they kept all that 60 billion I'd be more angry than I am now!
1 person likes this
@comfort55 (1574)
• India
1 Dec 08
Very good question. Other day I was also thinking on the same point but could not get to know how much these people(oil producers) earn. Nature has them given monopoly in this field.
@savypat (20216)
• United States
30 Nov 08
Are the producers the same as the oil companies? I'm very interested in the answers to your questions. I don't know. I did have family that worked out on the sea rigs and they made very good money and were able to retire early but I don't have any figures and they were just workers.
1 person likes this
