Discussion: Oil Value Chain
Research the value chain for crude oil from oil well to your tank. Prepare a three page memo to explain to your CEO how the retail price of gasoline is determined and who makes what sums of money along the value chain starting from crude oil to retail gasoline. A graphic representation might be useful in your explanation. Calculate the price of crude oil per gallon and compare it to the price of gasoline per gallons and figure out where the markups occur and why. This is the business of an integrated oil company like Exxon that pumps crude out of the ground and sells it to you at their gas stations.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.