Strictly: Drilling and oil-field services Message Board

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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: Telemarker who wrote (68107)	6/13/2000 10:06:00 AM
From: The Ox	Read Replies (1) of 95453

Telemarker, I'm with you on MRO. I think it's still trading at a discount to fair value and is worth a serious look for anyone wanting an integrated oil. Lots of exposure to NG could be the ace in the hole for MRO. One of the main reasons Chicago is paying 2.25/gal of reg unleaded is because we have the highest tax rates in the country. 20 years ago gas prices were around $1.40/gal in the city. Since then, over $0.65 of the price increase can be directly attributable to higher crude prices, tax increases or the new EPA refining formulas with the new rules being the bulk of the gain. In other words, about 15-20 cents of the current price is going to the margin side of the supply equation (gas station, distribution, refining, production and exploration). Chicago still charges sales tax on gasoline sales, this on top of a 6 cent county tax. Add it all up and the little guy in the city is getting gouged, but very little of the gouging is being done by the oil companies and gas stations as far as I can tell. Just my opinion, Michael

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