Opportunity cost of making gas !!

[Guest]

I've read and calculated that if you produce gas, u can have a 590% mark up in price when u sell it, compared to abt 290% mark up if u sell oil. i can't really remember the figures, but anyway it seems that if u compare these 2, gas definitely is more profitable, but what about the opportunity cost of making gas?

Here are some calculations i made. assume that i have 1power plant, 1well and 1 factory. all the revenues and profits are actual(based on what I earn). my oil is q3, gas q1.

1factory can make abt 117 gas per hour.
to make 117 gas per hr, 23.4 oil and 2925 power are needed as materials
after u take those out, there're still a remainder of 2.8 oil and 6510 power from my well and power plant. (for my current size 1 well makes abt 26.2oil and 1 power plant makes abt 9435 power per hour)

Therefore, per hour,

profit from gas = 900 (unit gas profit=8.7)
profit from oil = 61.6 (unit oil profit = 22)
profit from power = 455.7 (unit power profit = .07)
total from 60m2 buildings = 1417.3

IF I don't build factory to make gas, i.e i have 1 power plant and 1 well making stuff, then

26.2 oil and 9435-(26.2*100)= 6815 power can be sold

profit from oil = 576.4
profit from power = 477.05
total from 40m2 buildings = 1053.45

1417.3 and 1053.45 are profits made per hour under these 2 scenarios. however it's obvious that the latter is better considering that only 40m2 of buildings are needed. if u have build another well or power plant to make it 60m2, the profit surpasses the former.


Sooooo, is it really that profitable to sell gas after all????? I may have overlooked some factors. there are a lot of assumptions made and a lot of other forces affecting profits, but right now I have not really thought of them, so yeah i'll base my decision on these calculations as of now.

COMMENTS PLS !!! Thanks !

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Company: J.inc
Cash: 38,602.02

[Guest]

hmm..what if i buy oils and/or power instead and build 3 20m2 factory buildings.. bah i'll calculate later

and of course, at higher gas quality, gas is much more profitable. these calculations are for a new start up like me, and for small companies every bit of profit matters
___________________________________________
Company: J.inc
Cash: 38,602.02

[Guest]

You are definitely on the right track by calculating out what would be better for profits. If you haven't started an excel spreadsheet you should do so asap so you don't have to recalculate stuff later on.

Here are some excepts from my spreadsheet that might be useful:

Oil - Yellow - 20m - Profit per day: 4676
Water - Yellow - 20m - Profit per day: 9680
Gas - Red - 20m - Profit per day: 12935 *
Gas Station - Q3 - France - 20m - Profit per day: 22076 *
Power - Green - 20m - Profit per day: 14385 **


* - (Assumes market price of Gas ~13)
** - The current contest has the power price through the roof. All calculations above are using .09 for power.


So really, build what makes you the most money! Yes, you don't have to make everything yourself. If you want, just buy oil on the market and make water to sell instead. If you run across a market oil shortage you can quickly switch back. If you sell to an NPC it's nice to make your own oil so you can make high quality gas.

Let me know if you need help with your formulas. You should have all your production forumals referencing a specific column for market prices so they automatically change with the fluxuating market. Ex: Coal =10*E10+7*E11+0.1