1. Missed the live Ask the Expert event?
    Not to worry. Check out the archived thread of the Q&A with Ken Hutcheson, President of U.S. Lawns, and the LawnSite community in the Franchising forum .

    Dismiss Notice

Maby this could work?

Discussion in 'General Industry Discussions' started by firelwn, Apr 13, 2006.

  1. firelwn

    firelwn LawnSite Member
    Posts: 99

    Subject: FW: Gas War
    Sorry for being so long but I thing its worth the look.

    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
    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 -
    we need to take aggressive action to teach them that BUYERS control
    the marketplace..not sellers. With the price of gasoline going up
    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.
    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 a! ct toget her 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
    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

    Lisa Rigato
    810-624-4886 - Cell
    :usflag: :usflag: :usflag: :usflag: :canadaflag: :canadaflag: :canadaflag:
  2. FSully

    FSully LawnSite Member
    Posts: 81

    It hasn't worked in the past 6 years, when this letter started to circulate, why would it work now? Same letter, just people changing the prices and the names.
  3. firelwn

    firelwn LawnSite Member
    Posts: 99

    Oh ;) Another thought lost
  4. steve45

    steve45 LawnSite Bronze Member
    Posts: 1,325

    This nonsense has been around for some time. In previous iterations, it didn't involve people from CocaCola or Halliburton.

    There are a number of misconceptions. I'll try to explain them, and why it won't work.

    First, the oil companies do NOT set the price of crude oil. It's set by OPEC and the New York Mercantile Exchange (NYMEX). Oil is a commodity, just like pork bellies.

    In order to have price stability, the amount of oil produced must match, or slightly exceed, consumption. If there is any hint of a shortage, prices will skyrocket because nobody wants to be without. Now that China and India are becoming more industrialized, their consumption has gone up. In addition, many fields in the Middle East are now mature, and their production is declining. The Saudis have done very little to boost production (water injection, CO2 injection, etc.). Hence, they are nearly at their max capacity now. They can't produce any more. Iraqi production isn't stable because of attacks on their pipelines.

    The whole idea of boycotting one company is rather nebulus, because most people don't have a clue who actually makes their gasoline. Just because you buy it at a Shell station, doesn't mean that Shell produced the oil, refined it, or had anything to do with it. Most likely, it came from the closest refinery to your gas station. In all likelihood, this is a company that you never heard of. (In my area, the two closest refiners are Alon and Navajo). It's very possible that, if you were to buy Shell-branded gasoline, you might actually be buying a product that was produced in an Exxon refinery. It may have come from Exxon crude, or someone elses.

    In Texas, there are over 3000 registered crude oil producing companies. Most are small companies, a dozen employees or less. They are similar to farmers, in that they do not set the price for their product. As previously mentioned, that is set by the NYMEX gamblers. UNlike the farmer, oil producers may NOT cease producing oil when prices drop. The majority of oil producing land is owned by private entities, and mineral rights are leased to oil producers. A standard lease agreement states that the oil must be produced efficiently, for benefit of the lease owner. If a well is not produced for a period of 60 days (even due to equipment failure), the lease can be terminated and the minerals leased to another producer. By law, any well that is not produced for one year must be plugged (filled with cement). This is done to protect fresh water zones in the event that the casing (pipe) corrodes.

    You've probably heard that when oil prices drop, the oil companies shut-in their wells to drive the price up. It just ain't true, because the lease agreements and the law won't allow it.

    What CAN be done? A lot depends on the Congress. We need to drill in ANWR. The environmentalists are lying about that region, it is desolate. Carribou LOVE the pipelines and oil producing equipment because it offers warmth. We can also drill off the coasts of Florida and the east & west coasts. Nuclear power is a viable source for electrical power in large quantities. It needs to be developed. This will reduce the demand for natural gas (which powers many electric plants), and it will make it more feasible to operate electric vehicles in large cities. A slight drop in consumption would help in the short term, too.

    Ethanol really isn't a panacea. Several reasons, the first of which is that it requires more energy to produce than it gives off. That is, you have to burn more petroleum products to make it than you'll replace. (Now if we had nuclear power plants, this might be different). It is more expensive than gasoline, except that it is subsidized by the government. Not to mention all the problems it causes with rubber & plastic components in automotive fuel systems...

    Don't forget that the major oil companies are publicly held companies. They pay dividends to their shareholders. You can get in on the action by buying oil stocks, rather than sit and complain about it. You can even start your own oil company. All it takes it money--LOTS of it!

Share This Page