Monday, April 14, 2008

Gasoline Production Being Reduced By Refineries


This is not good news for those who have been watching the gasoline market. Refineries are lowering production of America's lifeblood - gasoline. Forget the credit crunch, this squeeze will have the same effects, or worse, as a slowed money supply. See the story below, and keep reading:

There are some things you can do. For instance, I learned that due to chemical reasons and physical laws such as vapors in liquids, temperature differences, and the effects that different pour rates can have in relation to this, if you "pour" or pump your gas slower, it will increase the amount of gasoline you get while decreasing the amount of vapors that end up in your tank. This significantly increases your gas mileage. I have tested it over the last 2 weeks and had spectacular results. My car is rated at 25 MPG city, and 30 MPG highway. I have been getting 36 MPG!
You can also use reverse supply tactics. Why put money in the oil company's bank accounts when you can keep it in yours. Just buy a half tank of gas when you fill up. If the entire country were to do this (basically ration themselves creating "game theory -like" results), the daily gasoline supplies and reserves would increase, almost overnight. Fill trucks would have to go out and fill stations much less. This would then cause a reaction from the gasoline companies, who have to pay to store large quantities of gasoline, to sell it at a cheaper rate to generate cash flow and revenues, and to get rid of increasing stockpiles of gasoline (retailers reverse supply or use reverse logistics all the time. What do you think happens to the products you return to the store? They are sold at a discount later. Filling a half tank of gas is like returning a half tank of gas at the same time). Secondary "discount" markets for gasoline would rise due to the fact that the supply chain would be broken at the endpoint - the pump - as less gasoline would be pumped daily (a half tank would be "returned"). Can you imagine the day when stations have a 15% off sale to get people to the pump? Then let's make it happen!
See the following for some basics on supply chains:
Also, knowing you will only have a half tank of gas before your next fill-up (the next time you will have to spend actual money) will also make you think twice about driving someplace. You can also do a "gas budget" where you pay attention to how many miles it takes to get somewhere. Then figure out the cost of the gasoline it took. This will help you realize the cost of your day to day activities, and help you budget your gasoline expenditures.
Ensure full inflation of your tires every time you fill. And don't use gas company credit cards. They make lots of money in interest each time you do.
Buy non-middle eastern oil. Nearly every domestic oil well has been uncapped recently due to the potential revenues that can be generated with oil over $100 a barrel. When I was in Texas 4 years ago, many farmers had oil wells that were capped off, awaiting better times for oil. This is not the case anymore. As a farmer, if you can pump just 10 barrels in a day, you'll add about $30,000 a month to your bottom line these days. So help support our country's oil supply by buying domestic oil. A quick google search will tell you who the domestic companies are.
Invest stocks in Natural Gas companies, and then buy a natural gas car. A nat gas car costs about $8 to fill which gets you about 350 miles. With oil as expensive as it is, Natural Gas demand is going up, and so are the stocks of the companies who produce it.
Open a business, and use your trips for business purposes to write of gasoline taxes.
Send this to your friends. I hope it helps!
Tijs

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Tijs Limburg
Chairman and CTO of DMX - Digital Media eXceleron, Inc.
Get eXcited!
http://www.dmxed.com/

Blogs:
http://phystrings.blogspot.com/
http://getoutofthedark.blogspot.com/

The "Don't Tread on Me" Flag: The First Navy Jack is enjoying renewed popularity these days thanks to an order from the Secretary of the Navy that directs all U.S. Navy ships to fly the First Navy Jack for the duration of the War on Terrorism.


--
Tijs Limburg
Chairman and CTO of DMX - Digital Media eXceleron, Inc.
Get eXcited!
www.dmxed.com

Blogs:
http://phystrings.blogspot.com/
http://getoutofthedark.blogspot.com/

The "Don't Tread on Me" Flag: The First Navy Jack is enjoying renewed popularity these days thanks to an order from the Secretary of the Navy that directs all U.S. Navy ships to fly the First Navy Jack for the duration of the War on Terrorism.