Jon Stewart and Senior Middle Eastern Correspondent Aasif Mandvi look at the costs behind the startling $104 / barrel of oil. Actually, it closed at $105.97 yesterday.
MANDVI: Well, Jon, it’s true, oil prices have reached an all time high. But before consumers do something drastic, like purchase a hybrid—or as I call them, a mutant—consider the fixed costs that go into producing your typical $104 barrel of oil. Right up front, $5 goes to new development of new oil resources. $10 goes to new technology research. $15 a barrel goes to making those commercials where oil companies try to convince you they’re not raping the environment and $25 goes toward blackening the oil.
STEWART: If I may, just very quickly, right there stop you, I was under the impression that oil comes out black.
MANDVI: That’s what Hollywood would have you believe, Jon. No, oil actually comes out of the ground looking like this. A pretty rainbow! And it burns clean. Cruding it up ain’t cheap.
STEWART: Aasif, so that adds, I guess, $55 a barrel to the oil, what about the rest of the cost?
MANDVI: Well, it fluctuates, depending on how chaotic the political situation is. That’s why the Middle East loves George Bush. Without him, oil prices plummet; Middle Eastern revenue streams dry up and the terrorist are having to work second jobs at Bennigans. Or, the Middle Eastern equivalent: Applebee’s.
I'm a little surprised that Mandvi didn't factor it the requisite astronomical, record-breaking profits that the oil companies are realizing. That's got to be at least $40 out that barrel, right?