gas wars!!!!! a new idea

[beerball101]

received this email from a buddy in new york !

please forward to all! it makes sense


> > NEW GAS WAR - a new 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 the end of this 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 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 sends it to just 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.


who knows , but its worth a shot !

[tech fan]

ok cool

[BettorsChat]

I was under the impression exxon and mobil are one company now?

Just like conoco/phillips 66

[tkim11]

I dont want to get into all the economic background but this aint gonna work. The good is inelastic and has close to no substitutes. Its not the suppliers that are in such a huge competition but the supply itself is limited.

Best thing to do is start pedaling your bike....

[BettorsChat]

I dont want to get into all the economic background but this aint gonna work. The good is inelastic and has close to no substitutes. Its not the suppliers that are in such a huge competition but the supply itself is limited.

Best thing to do is start pedaling your bike....

If that's the case then how come I can go to one station here in town and then a station that's about 8-10 miles out, but the gas is 14 cents cheaper gallon. Same brand gas stations and same for all levels of gas.

[jcindaville]

This same email has been peddled around a thousand times. If you really want to do something about gas prices, EVERYONE needs to by a 4 cylinder stick shift. Until then the oil companies will continue to do as they please.

And yes, i drive a big gas sucking truck. Thats why i dont bitch, cause i dont lead by example.









































And i have a company gas card. lol

[kbsooner21]

This same email has been peddled around a thousand times. If you really want to do something about gas prices, EVERYONE needs to by a 4 cylinder stick shift. Until then the oil companies will continue to do as they please.

And yes, i drive a big gas sucking truck. Thats why i dont bitch, cause i dont lead by example.

And i have a company gas card. lol

[jcindaville]

You like that one huh

[KJ1000]

Glad to see you posting beer...long time, no chat...cute thought, but it ain't going to work...cut down exxon, mobil, chevron, conoco, phillips, valero, etc...but in reality, you are cutting down your neighbor...most majors have minimal stations they own through corporate, most are leased to people like us, normal business citizens...so, in effect, by boycotting the majors, you are boycotting your next door neighbor...maybe not exactly, but you catch my drift...the issue of gas prices is a very complex issue that could be discussed for ages...but the main point to realize here is that the US has the cheapest gas in the world...we consume the most...most of the price of gas is controlled by the paper market which is outside the scope of the oil companies as the common investor, but more importantly, hedge funds have taken over...rather than pure movement of a fungible product and market conditions, the changes in price occur through market calls by people that have zero equity involved in the production of gas...

So, as to be clear here, beer knows me, i work for one of the majors...however, like you, i buy my gas from the street like everyone else with no discount...so it effects my bottom pocket...it is funny how we get so villified by the press and public, yet microsoft can make 80% profit on their software for a shit product, water can cost more than gold per pound for a naturally available commodity that requires minimal capital to upkeep or mcdonalds can cause obesity and death through their products...guess maybe we should shut it down and not produce a highly intensive and capital product for the public since we are public enemy one...maybe i should produce $1,000 hammers for the defense department as being more viable to society as a whole...

BC,
I consider gas to be inelastic in the sense that even though gas might be cheaper 8 to 10 miles down the road, most people will get gas when needed irrelevant of the price. Consumers are more cautious of the price recently and more aware, but from what I have seen, the gas station charging $.14/gln is still in business. Gas is a commodity, but it is treated differently in different zones giving to various econimic price structures. People pay more for gas in Beverly Hills and downtown than out in the sticks or burbs as supply/demand explains a portion of the equation and the other part is simple economics. If gas prices were truly elastic in nature, the gas station with the higher price would go out of business immediately....

[tkim11]

If that's the case then how come I can go to one station here in town and then a station that's about 8-10 miles out, but the gas is 14 cents cheaper gallon. Same brand gas stations and same for all levels of gas.

What people have to remember is with the supply being so limited and demand being so high, the price of any good will be high. I also read that that refineries goes through maintenance during summer thus even shortening the supply even further (which is some bullshit, they should do the maintenance during winter).

There can be alot of reasons why it can be cheaper - some cheesy and 'gay' but its true. If the stations are in different counties, maybe the gas tax is less? Maybe the station A just runs more effiecenly station B passing its savings on to its customers. I'm pretty sure a mom and pop gas station costs less to run than a exxon gas station that has Wendy's and an all out Food Mart.

With everything being constant and equal, lets say you and I love the fuck out apples. However, only 1 apple a year can be grown. Who's gonna get it? Simple answer, the person willing to pay the most. Now, why are we gonna punish the store for having a limited amount of supply and what they charge? If we find another way to grow 500 apples, the supply will exceed the demand and the cost will go down.

You have to go after the supplier not the middle man. Exxon, Mobil, mom and pops, etc... are all middle men. You want cheap gas, find another drilling site and build more refineries. Make the supply exceed the demand or make the demand for the good less - alot less.

[tkim11]

Glad to see you posting beer...long time, no chat...cute thought, but it ain't going to work...cut down exxon, mobil, chevron, conoco, phillips, valero, etc...but in reality, you are cutting down your neighbor...most majors have minimal stations they own through corporate, most are leased to people like us, normal business citizens...so, in effect, by boycotting the majors, you are boycotting your next door neighbor...maybe not exactly, but you catch my drift...the issue of gas prices is a very complex issue that could be discussed for ages...but the main point to realize here is that the US has the cheapest gas in the world...we consume the most...most of the price of gas is controlled by the paper market which is outside the scope of the oil companies as the common investor, but more importantly, hedge funds have taken over...rather than pure movement of a fungible product and market conditions, the changes in price occur through market calls by people that have zero equity involved in the production of gas...

So, as to be clear here, beer knows me, i work for one of the majors...however, like you, i buy my gas from the street like everyone else with no discount...so it effects my bottom pocket...it is funny how we get so villified by the press and public, yet microsoft can make 80% profit on their software for a shit product, water can cost more than gold per pound for a naturally available commodity that requires minimal capital to upkeep or mcdonalds can cause obesity and death through their products...guess maybe we should shut it down and not produce a highly intensive and capital product for the public since we are public enemy one...maybe i should produce $1,000 hammers for the defense department as being more viable to society as a whole...

BC,
I consider gas to be inelastic in the sense that even though gas might be cheaper 8 to 10 miles down the road, most people will get gas when needed irrelevant of the price. Consumers are more cautious of the price recently and more aware, but from what I have seen, the gas station charging $.14/gln is still in business. Gas is a commodity, but it is treated differently in different zones giving to various econimic price structures. People pay more for gas in Beverly Hills and downtown than out in the sticks or burbs as supply/demand explains a portion of the equation and the other part is simple economics. If gas prices were truly elastic in nature, the gas station with the higher price would go out of business immediately....

My man is an econ major like myself. If not, you sure hit it on the nose

[KJ1000]

My man is an econ major like myself. If not, you sure hit it on the nose

That I am!

[BettorsChat]

What people have to remember is with the supply being so limited and demand being so high, the price of any good will be high. I also read that that refineries goes through maintenance during summer thus even shortening the supply even further (which is some bullshit, they should do the maintenance during winter).

There can be alot of reasons why it can be cheaper - some cheesy and 'gay' but its true. If the stations are in different counties, maybe the gas tax is less? Maybe the station A just runs more effiecenly station B passing its savings on to its customers. I'm pretty sure a mom and pop gas station costs less to run than a exxon gas station that has Wendy's and an all out Food Mart.

With everything being constant and equal, lets say you and I love the fuck out apples. However, only 1 apple a year can be grown. Who's gonna get it? Simple answer, the person willing to pay the most. Now, why are we gonna punish the store for having a limited amount of supply and what they charge? If we find another way to grow 500 apples, the supply will exceed the demand and the cost will go down.

You have to go after the supplier not the middle man. Exxon, Mobil, mom and pops, etc... are all middle men. You want cheap gas, find another drilling site and build more refineries. Make the supply exceed the demand or make the demand for the good less - alot less.

Both in same County

Both same company brand

One's cheaper, because they are in the sticks while the other is in the City. Should be the other way around since the one in the City does a hell of a lot more business thus they should be able to get gas for less from their supplier.

It's simple to me that they are making 14 cents more a gallon profit than the other store.

[KJ1000]

Both in same County

Both same company brand

One's cheaper, because they are in the sticks while the other is in the City. Should be the other way around since the one in the City does a hell of a lot more business thus they should be able to get gas for less from their supplier.

It's simple to me that they are making 14 cents more a gallon profit than the other store.

And you would be correct. Gas is a commodity that SHOULD be dictated by market prices; however, the price is often artificial in nature. For example, Exxon stations generally charge more because the perception is that they have better gas which is inaccurate since all gas at Exxon stations is probably not from an Exxon refinery. It depends on the margin the owner of the station is willing to have. In most cases, the owner of the gas station will lose money on gas and try to make it on items sold in the store. This occurs when the rack price (price refiners sell to the street) is greater than the market price (price consumers pay at the gas station).

Often times, there is some flexibility in terms of pricing by the owner of the store given peculiar situations. The owner is trying to find the right price to sell without losing too many customers and maximizing prices, a form of price discrimination. The owner that has higher gas prices has probably discovered that the higher prices cover the lost prices maybe due to traffic, last station of necessity, etc...

Remember, that only company stores have dictated prices from corporate. The rest are allowed flexibility outside of the rack price.

[BettorsChat]

And you would be correct. Gas is a commodity that SHOULD be dictated by market prices; however, the price is often artificial in nature. For example, Exxon stations generally charge more because the perception is that they have better gas which is inaccurate since all gas at Exxon stations is probably not from an Exxon refinery. It depends on the margin the owner of the station is willing to have. In most cases, the owner of the gas station will lose money on gas and try to make it on items sold in the store. This occurs when the rack price (price refiners sell to the street) is greater than the market price (price consumers pay at the gas station).

Often times, there is some flexibility in terms of pricing by the owner of the store given peculiar situations. The owner is trying to find the right price to sell without losing too many customers and maximizing prices, a form of price discrimination. The owner that has higher gas prices has probably discovered that the higher prices cover the lost prices maybe due to traffic, last station of necessity, etc...

Remember, that only company stores have dictated prices from corporate. The rest are allowed flexibility outside of the rack price.

Same thing applies to the gas companies