By Daniel Monson
When Jed Clampett struck oil on his farm in the 1960s television show ?The Beverly Hillbillies,? his life was set. That Texas tea, as he called it, brought financial success to him and his family.
But as gasoline prices near $3 a gallon, some may wonder how much money Utah gas distributors are making and how that black gold even gets here.
?Utah obtains most of its crude oil from Canada, Las Vegas, Denver and northern Utah,? said Mark Walker, vice president of operations at Walker Oil Company located in Pleasant Grove.
Crude oil, also known as petroleum, can be used to produce crayons, plastics and tires. It also can be turned into gasoline that ignites, causing a vehicle to travel.
?Large refineries in Salt Lake City refine the oil and produce gasoline that is circulated to the state and beyond,? Walker said. ?Local companies have contracts to pull gasoline from these refineries and prepare it for distribution and sales.?
With refining complete, the crude oil is now purified gasoline.
?Gas comes from Salt Lake refineries in North Salt Lake,? said Larry Richardson, bulk plant manager at J&J Oil Company in Provo. ?Most oil companies have their own trucks to transport it.?
Many local oil companies transport and distribute oil and gasoline to Provo, including Walker Oil, Mike Peterson Oil, Christensen Oil, Rhinehart Oil and J&J Oil.
The process of getting gasoline to the corner station is not without problems that can quickly change the system.
?The world market affects us big time,? Walker said. ?When someone hiccups, it?s a whole domino effect. Oil companies hang their hat on any little thing. It?s almost a scare tactic.?
Local gas retailers aren?t making much money on gasoline sales, despite price increases, Walker said. When they make a profit it may only be 2 to 3 cents a gallon. Additionally, processing credit cards can cost more than that, forcing them to actually lose money.
?Current prices in Provo have gone up, and the supplies have been limited because they are redirecting oil supplies to the South after the hurricane,? said Lynn Ruff, controller for Rhinehart Oil.
He said the price of oil is affected when a scarcity or major need arises.
?Distant disasters shouldn?t have any effect on us here, but unfortunately they do,? Richardson said. ?It is like the trickle down effect. Big oil companies use them as a band wagon to raise their prices.?
Price changes begin at the head of the oil system. The big oil companies that drill and sell the crude oil determine their supply and price.
For Walker and local companies, business is the usual struggle.