ENERGY ISSUES: TRADITIONAL ENERGY AND CONSERVATION

Energy Issues: Traditional Energy and Conservation

Energy Issues: Traditional Energy and Conservation

1.How much oil does the US import on a yearly basis?

According to the Energy Information Administration, the US imported 10.0 million barrels per day of crude oil in 2007. This represents 66% of the 15.2 million bpd of crude oil processed in the US. The US consumed a total of 7.55 billion barrels of petroleum (including crude oil and various petroleum products) in 2007, of which 58% was imported.

http://tonto.eia.doe.gov/ask/crudeoil_faqs.asp

2.What percentage of the cost of a gallon of gasoline is the result of the cost of crude oil?

The cost to produce and deliver gasoline to consumers includes the cost of crude oil to refiners, refinery processing costs, marketing and distribution costs, and finally the retail station costs and taxes. The prices paid by consumers at the pump reflect these costs, as well as the profits (and sometimes losses) of refiners, marketers, distributors, and retail station owners.

In 2005 the price of crude oil averaged $50.23 per barrel, and crude oil accounted for about 53 percent of the cost of a gallon of regular grade gasoline. In comparison, the average price for crude oil in 2004 was $36.98 per barrel, and it composed 47 percent of the cost of a gallon of regular gasoline. The share of the retail price of regular grade gasoline that crude oil costs represent varies somewhat over time and among regions.

http://tonto.eia.doe.gov/oog/info/twip/twiparch/081029/twipprint.html

3.What are the other costs?

Federal, State, and local taxes are a large component of the retail price of gasoline. Taxes (not including county and local taxes) account for approximately 19 percent of the cost of a gallon of gasoline. Within this national average, Federal excise taxes are 18.4 cents per gallon and State excise taxes average about 21 cents per gallon.2 Also, eleven States levy additional State sales and other taxes, some of which are applied to the Federal and State excise taxes. Additional local county and city taxes can have a significant impact on the price of gasoline. Refining costs and profits comprise about 19 percent of the retail price of gasoline. This component varies from region to region due to the different formulations required in different parts of the country.

Distribution, marketing and retail dealer costs and profits combined make up 9 percent of the cost of a gallon of gasoline. From the refinery, most gasoline is shipped first ...