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Spongebob

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nutsnack

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.. i read in a thread, dont remember which one, that a 42 gallon barrel of crude oil can only produce 20 gallons of gas?!?! wtf .. how is that even possible or do i have the numbers mixed up?
 
nutsnack said:
.. i read in a thread, dont remember which one, that a 42 gallon barrel of crude oil can only produce 20 gallons of gas?!?! wtf .. how is that even possible or do i have the numbers mixed up?

crude is made up of the molecules hyrogen and carbon. literally hundereds of different chains. so when you take the crude and start refining it you are seperating these fractions by heating. the crude will have different products percentage wise in it. one of those is gasoline.

so yea roughly 20gallons of gasoline for every 42 gallons of crude. thats about 45%. they might be able to get more but that is typical. you need the other products as well. plus it gets more expensive the more gas you want out. it requires more and more processing which is expensive.
 
i work in whats called the crude unit. basically were the first unit in line when the crude hits the refinery. we fractionate it into gasolines, naphthas, kerosenes, diesel and resids.
 
what would u say it costs to make 20gallons of gas from 42 gallons of crude w/ all ingredients of gasoline.. just regular octane 87
 
nutsnack said:
what would u say it costs to make 20gallons of gas from 42 gallons of crude w/ all ingredients of gasoline.. just regular octane 87

dont know but i think refining accounts for about 15% of the cost of your gas. so if its 3$ a gallon then i guess about .45

and they probably are selling for about 1.10 a gallon. so thats roughly a .65 profit margin. those are rough numbers from my plant. ofcourse it varies from plant to plant.
 
spongebob said:
dont know but i think refining accounts for about 15% of the cost of your gas. so if its 3$ a gallon then i guess about .45

and they probably are selling for about 1.10 a gallon. so thats roughly a .65 profit margin. those are rough numbers from my plant. ofcourse it varies from plant to plant.

so what are the other costs for it? shipping makrs it up that much more?

i heard gas stations make 2-4 cents a profit per gallon.. is this accurate or bullshit?
 
nutsnack said:
so what are the other costs for it? shipping makrs it up that much more?

i heard gas stations make 2-4 cents a profit per gallon.. is this accurate or bullshit?

well let me clarify and add that i left out the biggest cost which is the price of the crude itself. which accounts for about 45% of the price at the pump.

then you have distribution and taxes which is about 25% maybe.

and yea the gas stations only get about that much. there operate more under the laws of competetion.
 
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