CNN: Where the oil money goes

Where the oil money goes 2:20
As the price of oil soars, CNN's Jim Boulden explains where all that money really goes.

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News & Politics

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[FreeFromWar]

It's high time we develop alternative means to satisfy our energy needs. If corporations keep perpetuating their selfish ways to keep profiting from fossil fuels we will soon run out of it and will have no developed technology to support our needs.

[Nichen]

There is an alternative to oil all together which replace all the oilproducts, and that's hemp. You can get about 27 000 different products from it. Problem is governments make it illegal. Guess why...

[theporksicle]

Stop moaning, oil could be sold for a lot more than it is sold for. We need it, and we will pay almost any price for it at the pump, and in other oil based products, so they can charge for it.

Don't tell me if you had a monopoly on oil you wouldn't milk it for all it was worth, that's all they (the Arabs and the oil companies) are doing.

[yaz400]

@FreakwaveNL haha well cant add to that

plus we got millions of people visting mecca i think thats the main subsidize what can i say

i live in a country where oil is cheaper thne water :)

[FreakwaveNL]

@yaz400 So that would be 73% of 1 dollar (since the oil is near the surface in your country, also from the video) That leaves 73 dollar cent. At current price that would be 2.73 Riyal. As you said it costs you 20 (dollar) cent, that's still very low, 53 cents less than it should, if you follow the lines of the video namely 1 dollar for the cheapest extraction possible. So you pay below the costprice.

[FreakwaveNL]

@yaz400 After watching it again i must admit i compared it too much with the european situation.(i am a dutchman) If you take the breakdown of cost as showed in this video then 73% of the price you pay at the pump is crude oil extraction. As you said there are no profits or taxes in Saudi Arabia and maybe a bit of refining and transportation.

[yaz400]

@FreakwaveNL i think thats not too far from the cost, it is cheaper for us because we dont have to carry it half way around earthplus aramco is a govermnet company so its not after the profits and like i said there isnt any tax, land is cheap here

i think its cheap due to the living expenditure

[melisluv06]

I really can't stand how they apparently teach the reporters to speak in that grating, "reporter-ish" tone. I hate that so much.

[FreakwaveNL]

must be heavily subsidized?

[boundtogetdown]

gasoline is actually very very cheap considering the amount of potential energy it stores

the future is going to be really interesting