BP sets a record

Perhaps these NASA photos can begin to put the spill in persective.

I'm going to start doing my part. There are BP stations all over where I live. I'm not going there again ever.

I know accidents happen and the poor guy who has a BP logo on his pumps didn't do this....but. Well my dad ran a large chunk of Gulf Oil a long time ago and I learned that you never got rich running a service station because most of the money went back to the corporation in one form or another.  That network matrix hasn't changed and most of the money they guy takes in at $3.10 a gallon for regular here goes elsewhere...but let's do that math. The bulk rate is about $2.70 a gallon now and the distributors run on about 10% give or take. The rest goes all the way back to production and refining.  If a company is smart and owns all parts of the system, from well head to tank truck delivery, then it divides up the $2.70 among its parts.  When BP announced a $5 billion profit, it was from ONE PART of the process not all of it. My friendly station guy makes $0.20 - $0.30 or so a gallon so he is strictly about volume to survive. However they are the face of BP now but not the cause.

The fly in BP's ointment is that they have to have dealers who distribute the refined product. They have to otherwise the entire system chokes.  This is a garden hose if you want to think it through. Once the product hits the refinery they really own it and can't ship it elsewhere and if a refinery runs 95% of capacity it is an economic disaster. They run 100% or nothing but 90-95% is a loss of epic proportions. And if the refinery can't pump out finished product to the system (i.e. there is no demand) the losses multiply like crazy.

I feel bad for the local guy but he has expertise and perhaps location and can find another oil company to affiliate with. I suggest he do it.