TRY UNDER $1.00 PER BARREL: (1) Standard rule of
Post# of 43066
TRY UNDER $1.00 PER BARREL:
(1) Standard rule of thumb is $1/mile in total shipping costs, everything included:
http://tinyurl.com/ay5rjyu
(2) 185 miles a trip:
http://tinyurl.com/azt7hcx
(3) A truck can hold as much as 40 tons:
http://en.wikipedia.org/wiki/Semi-trailer_truck
(4) 5.71 barrels per ton:
http://www.plastic2oil.com/site/news-releases...ce-changes
Do the math:
185 miles X $1.00 per mile = $185
$185 divided by 40 tons = $4.625/ton
$4.625/ton divided by 5.71 barrels = $0.81/barrel
Not that this should come as a surprise -- bottled water is shipped much greater distances yet sells for much less than $1.00 per gallon by the supplier, and the supplier still makes great profits. If a supplier is able to ship and sell water for say maybe 30 cents per gallon and still make a big profit on it, it should come as a no surprise that shipping cost of feedstock is immaterial with diesel prices near $4 per gallon.
If you want to torture the data maybe you could get it up to $4/barrel.
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