Keeping company names out, I work for a oil company in the exploration and production side. The company I work for produces oil and gas (natural/methane not gasoline), we sell the gas and down the pipeline it goes. The rate is based on Henry Hub. The oil we produce is sold again at market rate and down the pipeline it goes. The same company has pipelines and some of the oil is sold and we buy space on our pipeline just like anybody else is able to. A mix or our oil and other producers oil gets to the end of the line, maybe in a company owned refinery. The oil is turned into more than just gasoline, there is very little you buy on a daily basis that doesn't have some kind of petroleum product in it, heck the bag, or bottle the product came in, has oil in it. Sticking with just gasoline now, that gas is then sold to a distributor, again it could be a company owned one as the company I work for does have gas stations, but anybody can buy from us, I am sure the other name brand station isn't, but CostCo could be, or the mom and pop no name station could be buying from the distributor. The distributor may be selling to 'Us' and 'we' show up with our trucks and take it to 'our' station. While the company I work for does have many different stations with our name on it, we don't own them. They are privately owned and the company that owns the station or stations buys the gasoline at the market rate from the distributor and pays the trucking company so they have full tanks. The station will sometimes lose money on every gallon of gas they sell. If you pay with a CC, the station needs to pay a fee for every card swipe. They also have pump maintenance and electricity costs that go into pumping the 10 gallons into your car. If you want a receipt, again there is more of a charge. The station depends on you going inside and buying a coke, or smokes, or candy. That is where the real money is made for the station. Don't forget that for many oil companies they include that money in its profits.
When you look at the price of a gallon of gas for us here in Wyoming I pay $3.37 a gallon, .24 of that is state road or gas as we call it tax. Another 6% of that is local sales tax, so the gallon of gas 'cost' is now $2.93. There were lots of other hands in the pot along the way for $2.93 a gallon. Yes we had some that was sold for motor oil, some for jet fuel, some for diesel, some for plastics, some for.....
Yes our CEO gets paid lots of money, so does every other company man, we all get paid well, but it is dangerous work. Wells blow up, fires happen, accidents happen just like every other industry, but unlike most, when we have one people die, property gets damages, and needs fixed, and all that costs lots of money. I am for sure not one to say how much is 'reasonable' for a individual or company to earn. I can tell you though 'Big Oil' pays is fair share in taxes. Exxon pays $3.00 for every $1.00 in profit it earns. Oil companies don't get any tax breaks that any other company doesn't get, most just don't qualify for such deductions, they get some deductions because they have production in foreign countries and pay tax in that country. Any company that pays taxes to a foreign country is able to deduct that expense from the taxes paid to this country, it isn't anything special it is something available to everybody. Contrary to what the media says, big oil isn't evil, and doesn't get special treatment.
The asset I work for doesn't make money like that though, we draw a loss of over $1.5MM a month, and have for the last few years, because of that, we won't be around for much longer. New wells in San Antonio cost $5MM+ each and they are drilling as fast as they can, creating jobs for many people and a good quality of life.
If you want to be mad at someone, be mad at the futures traders who have 'bid' up a barrel of oil, be mad at the government for taxing the companies and a gallon of gas so much. All those costs are only relayed to the end user, you and I.
