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No money in gasoline sales

You need to learn about the oil industry. I can guarantee you that there is very little money in gasoline sales. Why do you think Exxon is selling off all their gas stations? A gas station owner makes only a few pennies on every gallon sold. A gas station makes it's money from either auto repairs/towing or convenience store operations. The big money is on the upstream side. You can pump a barrel of oil out of the ground for $5.00 and sell it for $100. There's also money in refining, but nothing like the exploration and production side of the business makes. You can produce about twenty gallons of gasoline from that $100 barrel. You can then wholesale those twenty gallons for $3.50 a gallon, but when you deduct the astronomical costs of operating the refinery, the profit is still far short of what you make from simply pumping and selling oil. So rather than just gripe and whine, the best thing you can do is invest in upsteam production. I find that the fatter royalty checks every month take the sting out of increasing gasoline expenditures.


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