Profit Per Gallon
About $0.05/gallon is profit for refineries turning that crude oil into gasoline. For every three dollars you spent on gasoline, oil companies are getting more than a dollar of profit. That means on average, 34% of what you paid or $1.22/gallon, goes to pad the bottom line of oil companies. The retailers on average made about $0.04/gallon in profit. PBF energy are making more profits off of Californians than any other state – $0.78 per gallon compared to the national average of $0.50, a 56% differential: “PBF reported making 78 cents per gallon refining crude oil into gasoline in California in the third quarter.
Oil Production Insights
Net liquids production of ExxonMobil from 2014 to 2020* (in 1,000 barrels per day). Production in thousand barrels per day. ExxonMobil produced about 2.35 barrels of liquids per day in 2020.
Gas Station Profitability
How Much Does Chevron Gas Station Franchise Make in Profit? Their data shows a net income of $335,000 for one units after all expenses. Average gas sales: 38,000 gallons per month. So if the average gross profit margin for a gas station is 18%, it is safe to assume that the average gas station will make a gross profit of 15% or less per gallon of gas.
Industry Challenges and Opportunities
Fewer refineries are operating in the US than before the pandemic, which limits gasoline production. Revenue at Exxon soared to $115.68bn, up from $67.74bn during the same quarter last year. Unsurprisingly, it all comes down to surging crude oil prices. Brent crude futures, the benchmark globally, have surged more than 40% this year, going above $130 a barrel following Russia’s invasion of Ukraine. Required for gasoline, diesel fuel, jet fuel, oil is one of the most vital resources. More relevant factors are expertise at locating and extracting oil, as well as connections and rules. Big Oil is riding high energy prices wave. To help ease crisis, administration asks companies to increase output, but having little success. That’s because oil executives fearful price could fall if increase production too much. Effort to stabilize market at odds with ambition to renewable energy. In 2022, crude oil production increased much above 2021, in context of growth and OPEC+ adjustment. Increase mostly in Middle East, North America and Latin America. Conventional oil generally refers to pipe and pump off vertical well. This means hole straight down into deposit and pump jack to surface where sent for refining. Barrels larger than 42 gallons too heavy when filled with oil and barrels smaller made transporting oil not profitable.
Gas Station Startup Costs
How much does it cost to open a Shell gas station? Starting a gas station has a high financial entry barrier. You should expect to secure at least $300,000 to cover startup costs.