A Want To Help Drive Gas Prices Down?

[olddawggreen]

Received this email this morning......

:) 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 over 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 if 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
Thanks for your support



Makes sense to me, and because I don't buy gas from Exxon or Mobil anyway, I'm already contributing to the plan.



:D:D

[Adidas410s]

This idea came out last week. As I pointed out then (and will do so again) by not buying from the big companies, you aren't effecting the market at all. You are simply transferring where you buy your gas. It make decline Exxon Mobil's share of gasonline sales but somebody else's market share will increase at the same rate that Exxon's decreases. This is simply a transfer of wealth...it won't effect the prices because gas is not like household goods where consumers can force suppliers into a price war by changing what goods they do/don't buy.

[Black_Magic]

Im in so everyone pass the word and dont buy from EXON MOBILE or CHEVRON..

[espn1]

Originally posted by Adidas410s
This idea came out last week. As I pointed out then (and will do so again) by not buying from the big companies, you aren't effecting the market at all. You are simply transferring where you buy your gas. It make decline Exxon Mobil's share of gasonline sales but somebody else's market share will increase at the same rate that Exxon's decreases. This is simply a transfer of wealth...it won't effect the prices because gas is not like household goods where consumers can force suppliers into a price war by changing what goods they do/don't buy.
Yes it will! Because Exxon Mobil is a major factor in driving the market. Who do you think supplies a large portion of the Institutional Money in the Commodities Market?

[RMAC]

Originally posted by espn1
Yes it will! Because Exxon Mobil is a major factor in driving the market. Who do you think supplies a large portion of the Institutional Money in the Commodities Market?

Who do you think (edit) controls the supply of oil? Not Exxon Mobil.

[olddawggreen]

Originally posted by Adidas410s
This idea came out last week. As I pointed out then (and will do so again) by not buying from the big companies, you aren't effecting the market at all. You are simply transferring where you buy your gas. It make decline Exxon Mobil's share of gasonline sales but somebody else's market share will increase at the same rate that Exxon's decreases. This is simply a transfer of wealth...it won't effect the prices because gas is not like household goods where consumers can force suppliers into a price war by changing what goods they do/don't buy.

What I thought was interesting was the thought of two of the largest companies participating in a price war. Now that would make some waves, unfortunatley, both companies have the resources to withstand a boycot for a longggg time, and I believe a lot of the markup is sometimes at the local stations, rather than the suppliers.

I definatley think there is room for price reductions at the pump. Yesterday I drove from Fort Worth to Hillsboro. The price for a gallon of regular in Fort Wort was $2.89, the Chevon and Mobil stations on IH 35W were both selling regular gas for $2.55 per gallon (little price war going on) when I got to Hillsboro the price of a gallon of regular was $2.79 at most stations

[GreenMonster]

It won't hurt Exxon Mobile at all. The other oil companies are already being supplied with Exxon Mobile oil to make gasoline out of. They will just have to buy more of the oil to produce more gasoline. Not only that but the refining capacity in the US is so limited that all refineries make a generic gasoline and pipe it to loading depots. All of the gasoline companies out there buy the same generic gasoline from the wholesaler at the depot and then additives are added on the spot to make any "differences" between the brands of gasoline. (These differences are VERY minute.) Therefore, even if you buy gas at the Shell station down the street you still may be buying ExxonMobile's generic gasoline that has the Shell additives added at the fuel depot. Simply shifting where you buy your gasoline at retail will have no effect on how much fuel ExxonMobile sells due to the additional gas they will sell at wholesale.

[RMAC]

Originally posted by GreenMonster
It won't hurt Exxon Mobile at all. The other oil companies are already being supplied with Exxon Mobile oil to make gasoline out of. They will just have to buy more of the oil to produce more gasoline. Not only that but the refining capacity in the US is so limited that all refineries make a generic gasoline and pipe it to loading depots. All of the gasoline companies out there buy the same generic gasoline from the wholesaler at the depot and then additives are added on the spot to make any "differences" between the brands of gasoline. (These differences are VERY minute.) Therefore, even if you buy gas at the Shell station down the street you still may be buying ExxonMobile's generic gasoline that has the Shell additives added at the fuel depot. Simply shifting where you buy your gasoline at retail will have no effect on how much fuel ExxonMobile sells due to the additional gas they will sell at wholesale.

Thanks for writing what I have been trying to say. I couldn't seem to find the words today for some reason. I guess I still need Phil to come make a 'fat cats' comment before I can get my ducks in a row...

[espn1]

Originally posted by RMAC
Who do you think supplies the oil? Not ExxonMobil
The Supply Chain from beginning to end is based on speculation and supply and demand. There are no guaranteed tomorrow prices. If the consumer can drastically slow the demand then they've done their job. To do this you start at the top not the bottom

[RMAC]

Originally posted by espn1
The Supply Chain from beginning to end is based on speculation and supply and demand. There are no guaranteed tomorrow prices. If the consumer can drastically slow the demand then they've done their job. To do this you start at the top not the bottom

go read my edit. I fixed the wording and put what I was trying to say.

[zeus63]

You also have to understand that most of the stores that are marked with the Exxon, Mobile, or Chevron logo are franchised, so the company does not actually own it, an individual does. When you pay for gas at the pump you are not paying it to the big company you are paying it to the person the owns the pump. When I was in college I was a manager at a gas station and we sold gas at $.02 over what we paid for it. The big corporations already have the money, so it does not hurt them. The only people that it will hurt are the people that own the stores in the local economy.

[Black_Magic]

Originally posted by zeus63
You also have to understand that most of the stores that are marked with the Exxon, Mobile, or Chevron logo are franchised, so the company does not actually own it, an individual does. When you pay for gas at the pump you are not paying it to the big company you are paying it to the person the owns the pump. When I was in college I was a manager at a gas station and we sold gas at $.02 over what we paid for it. The big corporations already have the money, so it does not hurt them. The only people that it will hurt are the people that own the stores in the local economy. IF nobody buys gas at these stations then EXON MOBILE CHEVRON lose money becuase they buy the gas from EXON MOBILE CHEVRON.. EXON LOSES MONEY

[zeus63]

Originally posted by Black_Magic
IF nobody buys gas at these stations then EXON MOBILE CHEVRON lose money becuase they buy the gas from EXON MOBILE CHEVRON.. EXON LOSES MONEY

You're right, what do I know. I only have a degree in Economics. (one of my degrees, anyways)

[espn1]

Originally posted by Black_Magic
IF nobody buys gas at these stations then EXON MOBILE CHEVRON lose money becuase they buy the gas from EXON MOBILE CHEVRON.. EXON LOSES MONEY
True! Very simple concept. I'm not sure why people dont understand.

[Adidas410s]

Originally posted by zeus63
You're right, what do I know. I only have a degree in Economics. (one of my degrees, anyways)

Don't worry...econ degrees do very little for you! Trust me...I know too ;) All kidding aside, they do provide you with a better understanding of HOW things work because you learn to understand WHAT makes markets do what they do under various conditions. For those that think that the quantity supplied is impacted at all by the demand in this case...they are wrong. The demand is inelastic for oil and gas and thus the supply curve controls the price and is not impacted by the demand...because the demand is constant!

[zeus63]

Also keep in mind. Exxon, Mobile, and Chevron sell gas to more places than just the ones that carry thier logo. Next time you see a truck with the Coastal symbol, or Flying J (which supply most of Town and Countries, Allsups, and 7-11's, you are still buying gas from the big guys. The only difference in the gas at that point are the additives that go into them after they have been loaded onto the trucks.

[Adidas410s]

Originally posted by espn1
True! Very simple concept. I'm not sure why people dont understand.

Exxon doesn't lose money...they have already sold their product to the gas stations that are re-selling it to the consumer. That's why even in times where gas prices were $1 or less the companies were still profitable. Even if the prices at the pump were low...they were still able to sell everything they were producing to the stations so as long as they can produce enough oil and gas then they remain profitable.

Where is Dick Cheney when you need somebody to have some sense "shot" into them! ;)

[GreenMonster]

Originally posted by zeus63
You also have to understand that most of the stores that are marked with the Exxon, Mobile, or Chevron logo are franchised, so the company does not actually own it, an individual does. When you pay for gas at the pump you are not paying it to the big company you are paying it to the person the owns the pump. When I was in college I was a manager at a gas station and we sold gas at $.02 over what we paid for it. The big corporations already have the money, so it does not hurt them. The only people that it will hurt are the people that own the stores in the local economy.

Amen to that Zeus. We are frnachised as a Conoco. There is a Conoco fuel depot just across the river in Oklahoma. We sell Citgo and ExxonMobile generic fuel. Why? due to interstate trafficking laws and the costs of the neccesary licenses and permits it is cheaper to buy fuel off another wholesaler in Texas. The nearest one is a Citgo wholesaler that is located in Wichita Falls. There are times that it is actually cheaper for our distributor to send it's trucks 100 miles south to the ExxonMobile wholesaler in Southlake to buy fuel. The whole system is so screwed up by the government and it's laws that you are actually dealing with a GIANT monopoly when you buy fuel. ExxonMobile just happens to be the biggest member. And, like Zeus said, the retail outlets are by and large not owned by the corporation but by independent business people. Your ban on them will hurt them in the present but these guys know that if they will simply sit on their fuel supply a few days that your increased demand at other dealers will drive the price up. This puts the ExxonMobile dealers in a great place because they can actually increase their profit margin by raising their pump prises a little bit so long as they stay lower than the competition. Now your ban has backfired because the dudes you were trying to hurt actually made out better in the long run because they are able to make a larger profit margin off of the fuel they bought at a lower price.

[Adidas410s]

Originally posted by GreenMonster
Amen to that Zeus. We are frnachised as a Conoco. There is a Conoco fuel depot just across the river in Oklahoma. We sell Citgo and ExxonMobile generic fuel. Why? due to interstate trafficking laws and the costs of the neccesary licenses and permits it is cheaper to buy fuel off another wholesaler in Texas. The nearest one is a Citgo wholesaler that is located in Wichita Falls. There are times that it is actually cheaper for our distributor to send it's trucks 100 miles south to the ExxonMobile wholesaler in Southlake to buy fuel. The whole system is so screwed up by the government and it's laws that you are actually dealing with a GIANT monopoly when you buy fuel. ExxonMobile just happens to be the biggest member. And, like Zeus said, the retail outlets are by and large not owned by the corporation but by independent business people. Your ban on them will hurt them in the present but these guys know that if they will simply sit on their fuel supply a few days that your increased demand at other dealers will drive the price up. This puts the ExxonMobile dealers in a great place because they can actually increase their profit margin by raising their pump prises a little bit so long as they stay lower than the competition. Now your ban has backfired because the dudes you were trying to hurt actually made out better in the long run because they are able to make a larger profit margin off of the fuel they bought at a lower price.

True! Very simple concept. I'm not sure why people dont understand. :thumbsup: You're my boy Green...you're my boy! :D

[zeus63]

:clap: :clap: :clap: :clap:


Thank you Green Monster.

[espn1]

Originally posted by Adidas410s
Exxon doesn't lose money...they have already sold their product to the gas stations that are re-selling it to the consumer. That's why even in times where gas prices were $1 or less the companies were still profitable. Even if the prices at the pump were low...they were still able to sell everything they were producing to the stations so as long as they can produce enough oil and gas then they remain profitable.

Where is Dick Cheney when you need somebody to have some sense "shot" into them! ;)
I'm not asking Exxon to lose money. I just want the pump price to come down.

[GreenMonster]

I too sell gas for a living. My family has been in the gasoline retail business since 1979. In our case a .10 cent margin is best. All of our credit card fees are paid with this margin. Credit card companies charge us 3% of all credit sales just for the right to use their card. Crazy! They charge you and me personally 14% and then they charge the retailer another 3%. Buy stock in Big Oil and Big Credit dealers boys and you'll make mad money.

[Snyder_TigerFan]

So the only real solution is for the consumer to lower their demand completely. Our society is to dependant on gas. We need other alternatives.

No offense GreenMonster, I don't want to put you out of business.;)

[Adidas410s]

Originally posted by espn1
I'm not asking Exxon to lose money. I just want the pump price to come down.

Don't we all. However, as great as these plans sound, when you are working under "monopolistic" conditions with inelastic demand...it's not really going anywhere. The two things that you as a consumer can do are 1) drive to maximize fuel efficiency (be it at slower speeds, buying a more fuel efficient car, etc.) and/or 2) minimize the # of miles that you can drive. I am working hard to my part by driving the speed limits on the highways home from work (I'm sure those around me like that idea) and minimizing the "extra" trips that I make during the day. By driving 60-65 instead of 70-75, I have seen the average MPG on my Jetta go from 25-27 mpg/tank to 30-33 mpg/tank. You can do the math on the "extra gallons" that I am creating for myself with a 12.5 gallon tank...and it does make a difference because now I am getting an extra day or two in between filling up. Also, by cutting down on extra trips, I am saving myself additional funds. When I choose to eat at home instead of going out to eat or pick up food, not only am I saving $ on gas...I am also saving money on food...and probably eating something healthier at home in the process!

[GreenMonster]

Originally posted by espn1
I'm not asking Exxon to lose money. I just want the pump price to come down. cut down your driving and get everyone else to do the same across the WORLD not just in the US. Gas prices are up because of growing world demand (see China) and declining world supplies (see US's lack of a new refinery opening since 1981 and over 100 closed since that same date). The big oil companies used the Us governments regualtions to put you the consumer over a barrel. Sucks huh. Now we just have to live with it and sit and wait until it stops. Antoher HUGE problem is that the oil companies control the research and development of fuels in this country and have been really slow to move into the Alternative fuel thought process. Why should they develop an Alternative fuel that will hurt their oil profits. Your government could put a cap on prices if they wanted to but they are lining their own pockets first.

[Adidas410s]

Originally posted by Snyder_TigerFan
No offense GreenMonster, I don't want to put you out of business.;)

Don't hate the player...hate the game! :thumbsup:

[GreenMonster]

Originally posted by Snyder_TigerFan
So the only real solution is for the consumer to lower their demand completely. Our society is to dependant on gas. We need other alternatives.

No offense GreenMonster, I don't want to put you out of business.;) :D That's a good thing.

[spiveyrat]

Originally posted by Snyder_TigerFan
So the only real solution is for the consumer to lower their demand completely. Our society is to dependant on gas. We need other alternatives.

No offense GreenMonster, I don't want to put you out of business.;)

That's not the only solution. I am a proponent of eliminating the dozens of different blends of gasoline down to 2 or 3 different blends. This would open up room at the existing refineries to concentrate on only those 2-3 blends and therefore create a larger supply. And we all know that larger supply means smaller cost, right? This is a something that could be done now that would ease prices relatively quickly while longer term solutions are explored.

[GreenMonster]

Originally posted by spiveyrat
That's not the only solution. I am a proponent of eliminating the dozens of different blends of gasoline required by idoitic legislation down to 2 or 3 different blends. This would open up room at the existing refineries to concentrate on only those 2-3 blends and therefore create a larger supply. And we all know that larger supply means smaller cost, right? This is a something that could be done now that would ease prices relatively quickly while longer term solutions are explored. nicely put Spivey.

[Snyder_TigerFan]

Originally posted by spiveyrat
That's not the only solution. I am a proponent of eliminating the dozens of different blends of gasoline down to 2 or 3 different blends. This would open up room at the existing refineries to concentrate on only those 2-3 blends and therefore create a larger supply. And we all know that larger supply means smaller cost, right? This is a something that could be done now that would ease prices relatively quickly while longer term solutions are explored.

Where do I sign?

[olddawggreen]

Well the one thing that I know for certian, is that this is a subject that always gets a good response, just thought I would test it here before I post it over on the 4A site. Lord knows we need some excitement over there.;) :D :D

[spiveyrat]

Submit it to your Congressmen/women. And be persistent. Don't contact them only once.

http://www.visi.com/juan/congress/