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Tuesday, March 8, 2011

Fun Factoids: Oil Barrels, Gasoline & cost

Lately the price of oil has been rising and you hear things like 'oil is now $107 per barrel'.  So, how many gallons of oil make up a 'barrel'?  Choices are:

A - 32 gallons
B - 42 gallons
C - 50 gallons
D - 56 gallons

Answer found below the pics of 'normal' Charlie Sheen in his teens

Answer: B - 42 gallons in a barrel

Now, since vehicles run on gasoline not oil, and the oil must be converted synthetically to make the fuel,  how any gallons of gasoline does 1 barrel of oil make?

A - 55
B - 62
C - 77
D - 119

Answer below pictures of cats wearing clothing:

Answer:  D - 119 gallons of gasoline from 1 barrel of oil

In simple math, if a barrel of oil is $107, then per gal, its 89.9 cents/gallon

"89.9 cents?!" you ask..  "Why am I paying $3.49+ at pump?!!"

Good question- Simple answer-- oil companies are Evil and they make sure they profit at every step of the oil to gasoline conversion process and the transportation from source of oil to the local gas pump.

Normally that would make the gasoline cost you about $2.70/gal  (profit of about $1.90/gal to oil company). BUT you then have to add another 50-80 cents/gallon to cover all the federal, state, county and city taxes..  And that 89.9 cent gallon of gas is now $3.49 (or $3.79 for Premium)

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