Re: [DMCForum] Re: Gasoline Prices and the election

[Bob Brandys <BobB@xxxxxxxxxxxxxx>]

Scott,

Thankx for the information and numbers.  What was the barrels per day of 
your refinery?   40,000?  60,000?

A 40,000 barrels per day. refinery produces

604,800,000 gallons per year.  

Over how many years are these equipment upgrades amortized? 10?  15?   20?  

Say you spend $10,000,000 to upgrade and handle different fuel blends. 
 This works out to $1,000,000 per year for a 10 year conservative 
amortization schedule.

 SO  you divide   $1,000,000/604,800,000 gallons = 1.6 Cents per gallon 
 in increased costs.  NOTE a larger refinery would have even a lower cost.


Now don't forget that the refining  industry decreased their energy 
usage in the last 20 years 14%.   It used to be for every 6 barrels into 
the refinery 5 would come out as finished product.  Now for every 7 
barrels that go in 6 come out as finished product.   On the other hand,  
CEO AND HIGH COMPENSATED EXECUTIVE RAISES HAVE INCREASE 14% PER YEAR 
SINCE 1980.   SO MUCH FOR THE  EFFICIENCY IMPROVEMENT.   (As for labor 
costs total employment is down by more than 15% since 1980..)

One thing I always hated about departmental budgets was that they never 
showed you where your costs were in the overall picture of the 
corporation.  Only that you always spend too much money.  

Got to look at the larger overall picture and dollars.





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