| I was recently asked why the oil companies are not freaking out and raise'n all sorts of cain because of the increase in the cost of their raw material, which is the notorious barrel of oil .... I don't remember if this has been discussed recently, but I'll bring it up anyway .... oil companies make a profit in refining a barrel of crude oil ... the difference between what the oil company pays for the barrel of oil and what they sell it for after refining it is called the "Margin" or profit .... EXAMPLE: Say a barrel of oil cost $100 and after refining it sells for $110 .... a "Margin" of 10% was realized .... $10 bucks profit per barrel of oil refined ..... now, let's say that a barrel of oil increases to $200 ... and the "Margin" stays the same at 10% .... the profit on the barrel of oil is $20 ..... The oil company has doubled it's profit .... yet can stand flat-footed, look you straight in the eye, and truthfully tell you that they have not raised their "Margin"..... Does anybody want to know what the real "Margin" is in the oil refining business these days?
__________________ '04 SexySilver KC XE ....120k miles....the usual mods. |