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(NYPost)   Ordinary drivers establishing their own strategic petroleum reserves. They're the guys filling up today at $2.03 a gallon   (breakingnews.nypost.com) divider line 110
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30770 clicks; posted to Main » on 07 May 2006 at 7:19 PM (7 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2006-05-07 03:17:09 PM
$2.03 a gallon? Who are the lucky bastards paying $2.03 a gallon for gas? I filled up yesterday for $3.09 here in DC.
 
2006-05-07 03:48:02 PM
On a gas price thread a few weeks ago someone was questioning the usefulness of speculators. I present this as one possible example.

/not subby
 
2006-05-07 03:49:13 PM
Ingenius. Somehow, somebody is going to find a way to shut this down, though. Shame.
 
2006-05-07 04:23:57 PM
Shardovan: I didn't read the article.
 
2006-05-07 05:09:03 PM
Customers buy whatever amount they want at the current price - the most ever purchased in advance was $400,000 worth - I WANT TO MEET THIS GUY!
 
2006-05-07 05:38:28 PM
just think how much they are saving. they can still drive their huge gas-guzzlers and afford their sexual dysfunction psychotherapy sessions too
 
2006-05-07 06:02:27 PM
$3.66 a few days ago.
 
2006-05-07 07:18:00 PM
$2.64 yesterday. I believe that SW Virginia has the lowest gas prices east of the Mississippi, according to this map.
 
2006-05-07 07:26:16 PM
-I had this precise idea a couple of years ago during a spike; pitched to 4 different stations with no luck. My way would have left the gas in a tank at a regular gas place, and I would use a paper receipt/ledger system to track usage. It was extra work for the station and they didn't think it was worth it.
 
2006-05-07 07:26:43 PM
Somehow, somebody is going to find a way to shut this down, though.

Why? It's the same thing as if you'd bought several thousand gallons a few years ago and stored it on your property to fill up with. Only this way, they handle the storage for you.
 
2006-05-07 07:28:08 PM
i need to move out to Wyoming or Missouri according to that map
 
2006-05-07 07:29:17 PM
I don't understand how the station makes a profit - if there's no fees and people generally only use their gas allotment when the prevailing price is higher, how can the station make anything? Its not like they bought a billion gallons of gas when it was 99c a gallon and are storing it, right?
 
2006-05-07 07:30:30 PM
Antares VI

You're a dumbass, sir. Next time, read, don't skim. You suck.
 
2006-05-07 07:31:33 PM
Good thing I live in that part of Minnesota and had the front money to reserve a massive amount of fuel years ago.

Neat idea, but worthless to us.
 
2006-05-07 07:32:34 PM
The problem with hoarding is it presents a vulnerable target.

I wonder what kind of guarantee they have that your gas wont end up appropriated when a real shortage hits.

On the other hand, reselling in the future could prove lucrative. Imagine what price you'll be able to gouge from people in a decade.
 
2006-05-07 07:32:53 PM
tell me when they open one in los angeles. then I will care.
 
2006-05-07 07:33:27 PM
No, but it likely costs them next to nothing to store the gas, and any loss taken would be made up for by the fact that on top of the people who fill up as normal, there are people coming in and buying 4 or 5 grand worth of gas.
 
2006-05-07 07:34:08 PM
That's a fascinating article- and the guy who bought at 99cents must be feeling awful proud of himself. This is a fairly sophisticated operation, as you can see from the fact that they have figured out when they need to buy futures contracts.
 
2006-05-07 07:34:14 PM
Bah, that'll teach me to refresh the page before posting...
 
2006-05-07 07:34:46 PM
Antares VI: You're a dumbass, sir. Next time, read, don't skim. You suck.


Dang, you were awfully hard on the poor guy. Cut him some slack.
 
2006-05-07 07:35:19 PM
Atvar

Filled up for $2.69 at Campus Exxon on N main. It was the cheapest in blacksburg.
 
2006-05-07 07:35:28 PM
clifclav: Dang, you were awfully hard on the poor guy. Cut him some slack.


Pansy.
 
2006-05-07 07:38:17 PM
that's bloody clever.

/not paying three bucks for fuel
//not paying jack for fuel
///lovin' the public transit
 
2006-05-07 07:38:25 PM
I don't drive because of unioned auto-workers, insurance = extortion, gas profit is funding republicans, and mid eastern people.

So enjoy your whining and high prices while I'm doing something about it.
/walking is fun
 
2006-05-07 07:38:26 PM
http://somender-singh.com/component/option,com_frontpage/Itemid,1/

(how to make a grooved engine, adding 10 to 40 percent fuel economy)

http://www.popsci.com/popsci/futurecar/19b09aa138b84010vgnvcm1000004eecbccdrcr d/3.html

(the Popular Science article that was written about it)

Yes, yes, I'm a troll. But guess what? Reserves aren't a bad idea if they're in a proper storage facility where they won't get lit up by a careless match.

Meanwhile, someone at Fark really, really needs to take a look at these two links I've just posted.

No, they're not spam or viruses. Just read them. For the love of God, please read them.
 
2006-05-07 07:39:14 PM
Its not like they bought a billion gallons of gas when it was 99c a gallon and are storing it, right?

Actually, they are sort of doing this by purchasing fuel on the futures market. Essentially the same thing they offer consumers...

The reason its profitable is because they have little overhead. They don't run convenience stores - just the land, pumps and tanks, and a computer somewhere for processing the transactions.

If the cost of gas went down significantly, for the long term, it would hurt the company financially, however since its just a division in another business, that other business could absorb the loss. I doubt the cost of fuel is going to go down and stay down though.
 
2006-05-07 07:39:27 PM
Coolest. Thing. Evar.
 
2006-05-07 07:39:28 PM
$2.56 in Blue Springs, MO. And people still complain that's way to high.
 
2006-05-07 07:43:06 PM
Basically they are just reselling gas futures. But is the only profit they make a few cents on the gallon?
 
2006-05-07 07:45:10 PM
Speculating goes mainstream.

/But it's a good thing
//Speculators don't get enough love
 
2006-05-07 07:46:12 PM
They should have a convenience store too, so that people could prepay for 300 44oz Diet Cokes at today's low rates.

/ponders the logistics of an underground storage tank for cola syrup and CO2
 
2006-05-07 07:46:30 PM
If you were really smart, you'd invest the $400,000...
 
2006-05-07 07:47:47 PM
sorhed: The problem with hoarding is it presents a vulnerable target.

Can you hoard gasoline? I thought the usual mixtures degraded too quickly.
 
2006-05-07 07:47:53 PM
"The program is open to anyone who drives off the street."

LOOK OUT!!!
 
2006-05-07 07:48:49 PM
This reminds me of the old priceline.com gas cards where you could buy something like $200 of gas at a time for a locked in rate. You made an offer, local gas stations accepted or rejected your bid. I remember saving like 30 cents per gallon this way.

But that got shut down too. I bet it wasn't for lack of demand though.
 
2006-05-07 07:50:30 PM
Time value of money folks.

You could have just bought some oil company shares.
 
2006-05-07 07:51:40 PM
No, you can't hoard gasoline. At least not for long --- it changes chemically over time and becomes like shellac. Ever tried to start a lawn mower after gas has been sitting in it for over a year?
 
2006-05-07 07:54:42 PM
Also, the people paying $2.00/gal now took the risk earlier.

If you buy your futures now for $3.00/gal and the normal pump price drops to $2.25 you'll be upside down.

Speculation is a dangerous game.
 
2006-05-07 07:55:55 PM
musicmanboston: I WANT TO MEET THIS GUY!

It was probably the city government. They fill their fleet up there.
 
2006-05-07 08:00:05 PM
It makes perfect sense... take the money people are handing over for future purchases and use it to buy futures on the open market. Price goes up and the futures pay off, probably to a larger degree than what they're "losing" by selling the gas at the locked in rates.

As to the comment about investing the $400,000, well, they did... it wasn't some Joe off the street. I'm sure it was either the city or a company that depends on drivers. They would spend the $400k on gas at some point anyway, so they probably saved themselves a good deal of money by locking in at lower prices. Invested, figure you're doing well to earn 10%. Think they locked in at a rate 10% lower than today's gas prices? I'm quite certain that's probably the case, so in effect, their "investment" in the prepaid gas paid off big.
 
2006-05-07 08:03:36 PM
Antares VI: I don't understand how the station makes a profit - if there's no fees and people generally only use their gas allotment when the prevailing price is higher, how can the station make anything? Its not like they bought a billion gallons of gas when it was 99c a gallon and are storing it, right?

That's assuming you know when the price is high. As long as they buy for less on average than people buying their contracts, they'll make money. They already get the retail markup right off the top. It's really just an investment gimmick with the downside being you can only cash out in gasoline.
 
2006-05-07 08:04:41 PM
The whole Idea feels like re-arranging deck chairs on the titanic to me!
 
2006-05-07 08:05:44 PM
flaEsq

Degrade to what?
 
2006-05-07 08:08:12 PM
lemme be the first to say that these people hate america.
 
2006-05-07 08:09:25 PM
According to that map, looks like I won't be moving to Monterey Bay anytime soon. Glad I sold my car and ride my bike everywhere though (have lost a few pounds already). And I'm glad I have the ability to be able to do that, b/c I know a lot of people unfortunately can't.
 
2006-05-07 08:12:27 PM
And i was happy to find $3.12 last week.
 
2006-05-07 08:12:31 PM
And the reserve company invests the money when they get it. They don't actually spend it to buy gas at that moment you pay. They spend it when they need to put gas in the ground. Meanwhile they make profit off the Vig...err I mean interest or yield.
 
2006-05-07 08:13:27 PM
If you were really smart, you'd invest the $400,000...

Yeah, in gasoline futures. For instance, if you'd invested that $400,000 in gasoline when it was 99 cents/gallon, it would be worth over a million dollars today. Why didn't anyone think of doing that?
 
2006-05-07 08:13:42 PM
I get the feeling that whoever paid $400,000 for the gas made at least a $200,000 profit.
 
2006-05-07 08:14:56 PM
Mildly interesting at best.
 
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