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> It's equivalent to saying the oil producing companies only get x% of global car sales. Cars are not really made of oil, gasoline is. And this was probably no
by close04 7y ago
> It's equivalent to saying the oil producing companies only get x% of global car sales.
Cars are not really made of oil, gasoline is. And this was probably not the best of examples. In most oil companies extraction/exploration (raw material) and refining (processed product) actually split the profits pretty evenly, all things considered. Marketing (gas stations) gets pretty much the breadcrumbs and relies for profit more on selling Coke and sandwiches than actual gas.
This is unlike most other cases where the raw materials are worth far less than the processed ones, and the bulk of the profit goes to the final manufacturer rather than the raw material exporter.