Diest, taxes far exceed any profit margins at the pump. According to the following site, Distribution Costs, Marketing Costs and Profits are $0.13, vs taxes totaling $0.65 (for California).
http://www.energy.ca.gov/gasoline/margins/index.html
It appears to me the primary profits are in producing the crude, wherein the price is determined by the world market, whatever the customers around the world are able or willing to pay in order to procure sufficient supply. Now we are competing against rapid growth and demand from many places around the world, such as the rapidly growing demand of China and India. Throw in the cartel which influences price. Also, futures traders are basically having to bet on future price and demand, which may drive up the price, but serves to moderate even more drastic swings than we currently see.
Actually, I think the profit margins in retailing gasoline are so small that I heard one major oil company is going to divest itself of that portion of its business, and concentrate on crude oil production and perhaps refining, I forgot which one.
Diest, unless you are in favor of using violent force to procure the supply of energy that we need, then given the current policy of not drilling many areas domestically, the only choice we have is to pay market price. I am of course in favor of more drilling and development here, and have been calling for this for a long long time, as long as it has been an issue.
And to put the energy industry into context in terms of profits, the following shows that pharmaceuticals, banks, financial services, telecom, software, food and beverage all make higher profit margins. Of course some oil companies are some of the largest companies in the world in terms of sheer size, principally because of the monstrous job that they do while exploring, transporting, refining, etc. their product. It is no small job when drill ships, refineries, and all kinds of high tech things are done, all of which require highly paid, highly educated, and large workforces to accomplish. I think they do a fantastic job of delivering a product as cheaply as they do, as regularly as they do, and as efficiently as they do. Instead of penalizing them, we should simply buy their stocks and be happy they are operating here.
http://everydayecon.wordpress.com/2006/04/26/oil-profit-margins-vs-other-industries/