Gas Wars?

[{FG}Caesar]

I am posting this because I do need to do 'something' I actually think this has some worthy things to say. I can literally no longer afford to go to work as I have for many years (which is part of the reason i am looking to start the LAN center..if you are interested in the LAN center in Rockford, IL check that out here). During my last days working in my 'normal' field I was paying over $1000 dollars in gas a month. That is just out right nuts. Obviously I have alternatives such as buyng a car that is 'alternative', as I will be doing on my next round...but for now...take a read. If you like, send along to your friends. I will be doing this as it makes sense.

 

This might be worth a try and it certainly won't hurt to test

 

GAS WAR - an idea that WILL work

 

 

 

This was originally sent by a retired Coca Cola

 

executive It came from one of his engineer buddies

 

who retired from Halliburton. It's worth your

 

consideration.

 

 

 

Join the resistance!!!! I hear we are going to

 

hit

 

close to $ 4.00 a gallon by next summer and it might

 

go higher!! Want gasoline prices to come down? We

 

need to take some intelligent, united action.

 

 

 

Phillip Hollsworth offered this good idea. This makes

 

MUCH MORE SENSE than the "don't buy gas on a certain

 

day" campaign that was going around last April or May!

 

The oil companies just laughed at that because they

 

knew we wouldn't continue to "hurt" ourselves by

 

refusing to buy gas. It was more of an inconvenience

 

to us than it was a problem for them. BUT, whoever

 

thought of this idea, has come up with a plan that can

 

really work. Please read on and join with us!

 

 

 

By now you're probably thinking gasoline priced at

 

about $1.50 is super cheap. Me too! It is currently

 

$2.79 for regular unleaded in my town. Now that the

 

oil companies and the OPEC nations have conditioned us

 

to think that the cost of a gallon of gas is CHEAP at

 

$1.50 - $1.75, we need to

 

take aggressive action to

 

teach them that BUYERS control the marketplace..not

 

sellers. With the price of gasoline going up more each

 

day, we consumers need to take action. The only way we

 

are going to see the price of gas come down is if we

 

hit someone in the pocketbook by not purchasing their

 

gas! And, we can do that WITHOUT hurting ourselves.

 

How?

 

 

 

Since we all rely on our cars, we can't just stop

 

buying gas. But we CAN have an impact on gas prices if

 

we all act together to force a price war.

 

 

 

Here's the idea: For the rest of this year, DON'T

 

purchase ANY gasoline from the two biggest companies

 

(which now are one), EXXON and MOBIL. If they are not

 

selling any gas, they will be inclined to reduce their

 

prices. If they reduce their prices, the other

 

companies will have to follow suit. But to have an

 

impact, we need to reach literally millions of Exxon

 

and Mobil gas buyers. It's really simple to do! Now,

 

don't wimp

 

out on me at this point...keep reading and

 

I'll explain how simple it is to reach millions of

 

people!!

 

 

 

I am sending this note to 30 people. If each of us

 

send it to at least ten more (30 x 10 = 300) ... and

 

those 300 send it to at least ten more (300 x 10 =

 

3,000)...and so on, by the time the message reaches

 

the sixth group of people, we will have reached over

 

THREE MILLION consumers.

 

 

 

If those three million get excited and pass this on to

 

ten friends each, then 30 million people will have

 

been contacted! If it goes one level further, you

 

guessed it..... THREE HUNDRED MILLION PEOPLE!!!

 

 

 

Again, all you have to do is send this to 10 people.

 

That's all!

 

(If you don't understand how we can reach 300 million

 

and all you have to do is send this to 10 people....

 

Well, let's face it, you just aren't a mathematician.

 

But I am . so trust me on this one.) :-)

 

 

 

How long would all that take? If each of us sends

 

this

 

e-mail out to ten more people within one day of

 

receipt, all 300 MILLION people could conceivably be

 

contacted within the next 8 days!!! I'll bet you

 

didn't think you and I had that much potential, did

 

you! Acting together we can make a difference.

 

 

 

If this makes sense to you, please pass this message

 

on. I suggest that we not buy from EXXON/MOBIL UNTIL

 

THEY LOWER THEIR PRICES TO THE $1.30 RANGE AND KEEP

 

THEM DOWN. THIS CAN REALLY WORK.

 

 

 

Kerry Lyle, Director, Research Coordinator

[farmerisme]

Always looking for an easy way out. Someone posted this before, frankly I did not even bother to read the whole thing through again. There is no easy way out.

[*BiGBonES**]

It will not work.

 

Take these figures for example- (they are not true, just representations)

 

total gas demand in america - 1 million barrels

total supplied by two biggest companies - 80% of 1 million barrels, 800,000 barrels

total supplied by other companies - 20% of 1 million barrels, 200,00 barrels.

 

So the total demand for gas, the amount of gas that has to be purchased is 1million (per a day, month, year, whatever its only a model. If everyone follows this plan, it means that only 200,00 barrels go gas can be purchased as the other companies simply will not be able to supply the other gas. That leaves people 800,000 barrels short, meaning that 80% of the population cant fill their tanks

 

People are dependant on gas, so what do they do? buy the gas from the two biggest companies.

 

Its alright saying that the other companies will increase their supply, but they will only be able to make a temporary increase which will last perhaps a week or something with a 400% increase in the amount of gas they need to supply.

 

So the oil companies are right to laugh at everyone who tries to take this oil e-mail seriously.

 

It was not sent by a cola executive as someone that high up in industry would not over look a basic school boy error in a plan like this.

[{FG}Caesar]

I would wager that saying 80% of the gas is supplied by those 2 companies is a bit of an over stretch. I dont really have time to look it up at the moment....but i do not beleive they provide anywhere close to 80%

[appalachian_fox]

Some information about gasoline in general:

http://www.conocophillips.com/newsroom/oth...rs/gasoline.htm

 

Information about California market share:

http://www.energy.ca.gov/gasoline/statisti...rket_share.html

(keep in mind that many categories, like Independent & Others, collapse: They buy gasoline either in bulk or on the "spot market" from the big refineries. These are retail gasoline sale numbers iirc)

 

Canada refinery information:

http://www2.nrcan.gc.ca/es/erb/prb/english...?x=686&oid=1133

(includes utilization statistics)

 

Energy Information Administration, DOE, an FAQ:

http://www.eia.doe.gov/neic/experts/contactexperts.htm

 

80% may be a bit of a stretch, but the large companies still do most of the refining, and as we can see from the Canada numbers (and it's reasonable to generalize to America, at the very least) that their refining capacity is mostly utilized. So, as BigBones said, there really isn't more of a supply. It's gotta come from somewhere.

 

Now, we stop buying from, say, Exxon/Mobil, and let's say that's 7% of the California retail market share. They're still selling their bulk contracts (possibly to the likes of Wal-Mart, etc., I don't know who they sell to) and they're still making money off of the spot market. However, the local gas supply needs to soak that 7% market share. Where does the gas come from?

 

Either refinery capacity can be increased and current refineries can be pushed past their capacities temporarily, at extreme cost, or they can buy contracts or spot market fuel from Exxon / Mobil. They have 7% of the retail market share worth of gas sitting around, and at a prevailing cost of $3 / gallon (again, rough numbers to make the image easier) they can choose to either (1) sell gas for $1.30 at their stations, as the e-mail suggests, or (2) sell their current "surplus production" (that 7%) to the other gas retailers, who need more gas, at a discounted rate: Say wholesale is $2.75 currently, so they offer their "surplus" at $2.50. Given the choice between $2.50 a gallon and $1.30, I wonder what they will choose.

 

Also, let's not ignore the fact that many stations are actually independently owned and operated anyway, they just contract to take advantage of an "assured" gas supply (not at the whims of the spot market), national advertising, loyalty programs (those "free gas" promotions on credit / retail cards), etc. They either have to go out of business, firing all their employees, or switch suppliers -- negating the entire effect.

 

But what if they chose to sell at $1.30? The branded retail stations only supply 7% OF THE CALIFORNIA RETAIL MARKET. There is no WAY they could soak the 100%. Exxon / Mobil and the stations would surely not make a profit, and people would still be stuck buying $3 / gallon gas. The other companies wouldn't have to lower their prices to compete...They'd just have to wait until the day after the gasoline delivery to the Exxon / Mobil branded stations, if that long, and then catch everyone who didn't wait hours to fill up on gas sold for below market value.

 

Now, again, these are all real rough numbers, and there are plenty of things I have either left out or am outright missing (I was never a business major). However, I think it covers the main points that BigBones was getting at, and why the concept is unrealistic at best.

[{FG}Caesar]

well i got the solution then..we are all experts a tactical warefare right...CSS....=P

 

lets stage a raid!

[appalachian_fox]

Woohoo! Raid on the gas suppliers! I'm in. I know where the local distribution center is for my town, let's hit the tankers!

 

*drops to the ground and rolls*

 

Wait up, guys, I fell on my keys!

 

*crawling*

Ow...ow...ow....ow....

[farmerisme]

Frankly the only way to lower prices is to either increase the supply by a bunch (which is shortsighted, we will be facing the same problem in X amount of years) or to use less oil/gas. Conservation or alternative forms of energy is the only long term solution.

 

Get mad at the oil companies for making huge profits. But do not blame them. If you look at the profit sheets for these companies their profit margin is far less than many other corporations. Blame the people that use far more gas than they should just because they can afford it or are too silly to try anything different. Everyone wants everyone other than them to use public transportation, but are unwilling to give up their freedom and do so themselves. People vote down tax increases for alternative energy research to save some money today instead of thinking about the future. True some people are getting the hose and actually need to use all the gas they are using, but it isn't the oil companies to blame. They may be eating well but it is the American people that are reaping what we have sown. It is the general apathy and idiocy of the public to do something about it that are causing most of the problems.

[{FG}Caesar]

wow..that sounds like the words of someone from the UK....public transportation is a total joke in most american cities..and non-existant in over 95% of the country. Our economy is structured in such a way that most people cannot afford to make a living without traveling to some reasonable degree.

 

While obviously supply-demand is econ 101, there are situations where things become 'taking advantage'. If OPEC or the oil industry were primarily US countries, they would be in violation of alot of laws. Oligarchies are not allowed to control prices in the fashion as occur with gas.

 

But obviously we need to find alternatives, some argue (as in the insurance and medical industry) that the mandatory need is so great that an individual does not have a 'choice'. For most american's, the inablity to commute means the inability to work. Such as in my case. I cannot afford to live close to my working areas...small 3 BR home costs over a million dollars. But the outlying areas do not have ANY work that would allow me to be employed. The prices of gas have literally forced me out of a job, nothing else.

 

Ancyase....I agree we need to find alternatives, but I think the hard stance that we are 'unwilling' to find different approaches ...welll....strikes me as a bit inexperienced.

 

dunno..just my two cents.

[farmerisme]

I would never argue that there are not people out there that are trying and people out there that are getting the shaft. What I get tired of is people clammoring for some easy fix to the energy crisis, getting angry when there isn't one, and blaming a scapegoat.

 

Think of the billions of $ spent on keeping our huge road system going. If some of that money was spent to build public transportation that works for people + people willing to spend money today on building said transportation we could get something done. We can blame the government for not doing it but if the people really wanted it... it would happen. Maybe this is not a reasonable solution, but there is one out there. The public plain refuses to deal with the problem. We keep pushing it off and asking those in charge, WHY?

 

Truly I do not mean to sound angry because I am not. I feel bad for your situation, really I do, but I think the wrong people are being blamed for the problems.

[{FG}Caesar]

it is certainly ok to agree to disagree. The point of this post was for the and idea from the 'public' to the 'public' to give something a try.

[*BiGBonES**]

My next door neighbour cycled a 40minute drive from north london to central east london everyday, both there and back everyday. Have you guys not seen the addidas commercial? "nothings impossible". Just wait till a Nike commerical comes along and you see the brizilian football team dribble a ball 40miles to work everyday

[{FG}Caesar]

bahaha...sounds great. have not seen that one.

[Goofus Maximus]

Time to break out the bicycles and motor-scooters!

[Mr.Cool]

well, wen it comes to gas, there isnt really much that can be done. I mean as an individual u can cut down ur own gas usage, but if ur the only one that does it, it really makes no difference. In the future when we are really really low on gas, then we wud think of the past and be like, why didnt i save up?

 

This is just like "The day after tomorw" where the vice president ignores the natural disasters, sayin it wont come in a few years and when it actually does come he cant do a thing about it. It similiar to the world today becuz everyone's thinking we wont run out of gas until 50years later and etc....

 

So basically the only real way to stop is if the government actually does something.

[*BiGBonES**]

I'm pretty sure that all the car companies have the technology ready to mass produce cars that dont run on gas.

[Goofus Maximus]

The technology? Yes. The infrastructure to make and fuel these cars in quantity, at a price we can afford? Not yet. The ones with alternative fuel cars at the moment don't stop to think what would happen if their fuel of choice suddenly had a 2 million barrel per day demand on it.

 

As gas gets more expensive, conservation and Thermal Depolymerization plants along with nuclear and eventually Orbiting Solar Power Plants (I can dream, can't I?) will become more mainstream.

[Cobalt]

How much work did you do into setting up this internet cafe? I was extremely interested in starting one in the west suburbs (Downers Grove/Darien/Hinsdale) area where the per capita income is pretty much the highest it is in Illinois. I know some venture capitalists who liked the idea and told me to write up a proposal to present to their boss for evaluation. The cost of property alone is astronomical and I calculated a requirement somewhere in the neighborhood of 100k to get the place off the ground with computers and everything. Overall it just ended up being more trouble then it was worth at this point in my life. I have a lot of other business projects right now and everyone says your first business probably will not last so it seemed stupid to put myself at least $100,000 in debt over something I wasn't absolutely sure would succeed. In addition to that, internet cafe turnover rate is huge.

[{FG}Caesar]

ya...it looks like it will take 100K to get it to float. Startup costs are around 60K and the remaining 40K to overcome the 'hill'.

 

#1 point, Internet Cafe and an Gaming center are two totally different hits on the same concept. You are marketing to two totally different peeps. Cafe's are failing left and right because they do not offer much over places like Barnes and Nobles, and their service is free.

 

As far as gaming centers, it appears that targeting the 'wealthy' is not the a good move. You should be targeting the indivuduals who have enough to spend reasonable amounts of disposable income a month, but do neccisarily have enough to get the performance out of their connections and PCs. Also...it has been suggested the #1 reason for failure of Gaming Centers is that the owners think if they put a bunch of PCs in a room they will do great. So much of it is the environment. In some terms, you could related it to the arcades of the past. If you ever went to the local mall arcade, there was no atmosphere. It was just games and drew on the walk-by traffic. Now if you ever went to a 'real' arcade, just walking into the building got you excited. And that is what cannot be provided at home, even if you have a great PC and connection, which most people in my city do not have.

 

ancyase...ima yapping. but seeing as how this is a startup I wont be able to tell ya if my speculations are correct, but my research seems to support it.

Edited May 8, 2006 by {FG}Caesar

[appalachian_fox]

Best of luck, man! As you no doubt have figured out, you can get plenty of opinions, whether or not you want them, right here on this board I wish you luck, and let me know when you start franchising.

[Cobalt]

While it may be true that they are two different markets if you have a "gaming center" (what I would have had) you will be shutting out potential business by not at least having a few business type machines set up. With that being said, there are numerous "gaming centers" within a 25 mile radius of my house that failed within 4 months of operation. Outside of a booming metropolis like Chicago or Naperville I just don't think the business is there to stay afloat.

[{FG}Caesar]

yes....and if any of them were decent business men they would all know that the 4 month point is the point of failure. If you dont have the funds to carry the outfit a year, you cant do it. And you cannot do it with 10 or 20 PCs. The math isnt there. But then again, the #1 reason for buisness failure is poor management. #2 reason is inadequate funding.

 

We will see if my many years in that area help me out

[Cobalt]

Location also plays a very important role in business success.

[{FG}Caesar]

true true