A Thought About High Gas Prices
Posted: Sun Jun 26, 2022 9:45 am
There is something about gas prices that absolutely awes me-even at $5 a gallon-but obviously even more so at $3 and such.
I am incredibly awed by an industry that can:
1) Find oil in the ground-often in very remote locations.
2) Remove said oil from the ground-often under difficult conditions-very deep water and such.
3) Transport said oil to a refinery-maybe thousands of miles away.
4) Refine the oil into multiple products at the refinery including gasoline and diesel.
5) Transport the gasoline-again maybe thousands of miles- to retailers.
And then
6) Sell the gas at the retailer for a price that is far less per gallon than bottles of soft drinks and water sell in the same store (on a per gallon basis).
Also keep in mind that a fair amount of the final retail price of gasoline is made up of federal and state taxes.
I am incredibly awed by an industry that can:
1) Find oil in the ground-often in very remote locations.
2) Remove said oil from the ground-often under difficult conditions-very deep water and such.
3) Transport said oil to a refinery-maybe thousands of miles away.
4) Refine the oil into multiple products at the refinery including gasoline and diesel.
5) Transport the gasoline-again maybe thousands of miles- to retailers.
And then
6) Sell the gas at the retailer for a price that is far less per gallon than bottles of soft drinks and water sell in the same store (on a per gallon basis).
Also keep in mind that a fair amount of the final retail price of gasoline is made up of federal and state taxes.