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time to stick it to the Gas/oil companies


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#1
Dragon

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Email I got today had some intersting thougths in it. so why don't we all try this and get our gas prices back down to a reasonable price, then we could afford to enjoy our upcoming holidays better!!!! :tazz:


A man eats two eggs each morning for breakfast. When he goes to the grocery store he pays .60 cents a dozen. Since a dozen eggs won't last a week he normally buys two dozens at a time.

One day while buying eggs he notices that the price has risen to 72 cents. The next time he buys groceries, eggs are .76 cents a dozen.

When asked to explain the price of eggs the store owner says, "the price has gone up and I have to raise my price accordingly".

This store buys 100 dozen eggs a day. I checked around for a better price and all the distributors have raised their prices.

The distributors have begun to buy from the huge egg farms. The small egg farms have been driven out of business.

The huge egg farms sells 100,000 dozen eggs a day to distributors. With no competition, they can set the price as they see fit.

The distributors then have to raise their prices to the grocery stores. And on and on and on.

As the man kept buying eggs the price kept going up. He saw the big egg trucks delivering 100 dozen eggs each day. Nothing changed there.

He checked out the huge egg farms and found they were selling 100,000 dozen eggs to the distributors daily.

Nothing had changed but the price of eggs.

Then week before Thanksgiving the price of eggs shot up to $1.00 a dozen. Again he asked the grocery owner why and was told, "cakes and baking for the holiday". The huge egg farmers know there will be a lot of baking going on and more eggs will be used. Hence, the price of eggs goes up.

Expect the same thing at Christmas and other times when family cooking and baking happen.

This pattern continues until the price of eggs is 2.00 a dozen. The man says,"there must be something we can do about the price of eggs".

He starts talking to all the people in his town and they decide to stop buying eggs. This didn't work because everyone needed eggs.

Finally, the man suggested only buying what you need. He ate 2 eggs a day. On the way home from work he would stop at the grocery and buy two eggs. Everyone in town started buying 2 or 3 eggs a day.

The grocery store owner began complaining that he had too many eggs in his cooler. He told the distributor that he didn't need any eggs. Maybe wouldn't need any all week.

The distributor had eggs piling up at his warehouse. He told the huge egg farms that he didn't have any room for eggs would not need any for at least two weeks.

At the egg farm, the chickens just kept on laying eggs.

To relieve the pressure, the huge egg farm told the distributor that they could buy the eggs at a lower price. The distributor said, " don't have the room for the eggs even if they were free".

The distributor told the grocery store owner that he would lower the price of the eggs if the store would start buying again.

The grocery store owner said, "I don't have room for more eggs. The customers are only buy 2 or 3 eggs at a time".

"Now if you were to drop the price of eggs back down to the original price, the customers would start buying by the dozen again".

The distributors sent that proposal to the huge egg farmers. They liked the price they were getting for their eggs but, them chickens just kept on laying.

Finally, the egg farmers lowered the price of their eggs. But only a few cents.

The customers still bought 2 or 3 eggs at a time. They said, "when the price of eggs gets down to where it was before we will start buying by the dozen.

Slowly the price of eggs started dropping. The distributors had to slash their prices to make room for the eggs coming from the egg farmers.

The egg farmers cut their prices because the distributors wouldn't buy at a higher price than they were selling eggs for.

Anyway, they had full warehouses and wouldn't need eggs for quite a while.

And the chickens kept on laying.

Eventually, the egg farmers cut their prices because they were throwing away eggs they couldn't sell.

The distributors started buying again because the eggs were priced to where the stores could afford to sell them at the lower price.

And the customers starting buying by the dozen again.

Now, transpose this analogy to the gasoline industry. What if everyone only bought $10.00 worth of gas each time they pulled to the pump. The dealers tanks would stay semi full all the time. The dealers wouldn't have room for the gas coming from the huge tank farms. The tank farms wouldn't have room for the gas coming from the refining plants. And the refining plants wouldn't have room for the oil being off loaded from the huge tankers coming from the Middle East.

Just $10.00 each time you buy gas. Don't fill it up. You may have to stop for gas twice a week but, the price should come down.

Think about it.

As an added note...When I buy $10.00 worth of gas, that leaves my tank a little under half full. The way prices are jumping around, you can buy gas for $2.65 a gallon and then the next morning it can be $2.15. If you have your tank full of $2.65 gas you don't have room for the $2.15 gas.

You might not understand the economics of only buying two eggs at a time but, you can't buy cheaper gas if your tank is full of the high priced stuff.
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#2
fleamailman

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Self restraint , as you suggest is the right way to encourage a fall in price of oil, yet the signs that this is reflected in the market, practiced by the consumers, feared by the producers are not there because of certain factors are working against self restraint here, in this case those being:

1) petrol's prince here is forseen to go up.
2) petrol does not rot,
3) in hard times distrust sets in .
4) bad news makes good coverage.

I myself probably feel that until petrol is rationed, the situation will feed on itself, so the real question here is whether governments will risk voting themselves out of office though unpopular measures, or just letting the situation lead to panic buying, petrol strikes,etc., ...

I wish I had more time before work now to go into this, and many thanks Efwis for giving us something to think about again.
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#3
warriorscot

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See that doesnt always work becuaus there is lots i mean lots of fossil fuel storage people would have to stop buying for many years and then the oil companies just wouldnt make so much which suits them alot of the time as it means there equipment lasts longer. Petrol here is heavily taxed more than anywhere else have been to and it makes people only buy what they need ad most people do.

Also in summer they cant make enough in europe as the north sea oil production slows at this time of year and then oil from the middle eas has to beused and refinerys take longer to process it as it has to be treated to remove impurities.

So we use all the petrol they make and sometimes we use even more.

Simple solution dont buy combustion engine vehicles and use public tranportor wlk when you can. Most of the trips people use car for are short enough to walk within 15mins or acceible by public travel.
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#4
dsenette

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another option that doesn't leave you filling your tank 12 times a week, is boycotting a specific brand....if everyone stopped buying gas from Exxon....then they would be forced to lower their prices to get their customers back.....then everyone down the street would have to lower their prices....then you stop buying mobile gas.....and so on and so forth...
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#5
ScHwErV

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dsenette's approach seems much more reasonable. As everyone has already pointed out, you cant turn off chickens, however you can slow down or stop oil extraction and it wont hurt anything at all.

ScHwErV :tazz:
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#6
fleamailman

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The other idea that would dramiticly reduce our dependence on oil while having the double plus of reducing car mortalities to a near zero, while also creating jobs by the thousands, would be to reinstall the law where "all non horse driven veacals must have a man with a red flag in front them" though I imagine that this law as it stands is unfair and should be updated a bit to allow women too to participate.

Edited by fleamailman, 21 September 2005 - 11:53 AM.

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#7
warriorscot

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Well then no one would get anywhere, teaching people to drive properly is the way to do it, so many places have a driving test that is only really to prove you know how to work a car. In germany they apparently can take years to learn to drive, something to do with the really fast roads. I took 6 months to leanr but i wasnt in a rush.
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#8
gerryf

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boy, could I write a book on this stuff, but then I never would have time for helping people with PC problems.

Efwis's and some other comments seem to depend on the idea that this is a free and fair market, which I am not sure I agree with. A free market depends on the idea of multiple suppliers competing for your business but the maturation of the oil industry has resulted in a very small number of suppliers who do not even have to openly collude to generate massive profits.

Oil company profits (that's PROFITS) are up between 35 and 50 percent. That seems incredibly difficult to pull off with the price of oil climbing almost 50 percent from a year ago without some sort of nonsense going on.
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#9
blennon

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Well, maybe marketing manipulation might help, but there ARE other optiions. They take more time I guess. Have to take a long view.

I have had a personal thing for years about supporting a system that feeds the power trips of murderous and greedy morons in the middle east - or Texas - and that also seems to be creating conditions that help generate storms and assorted other nasty effects around the world. When the ethical discomfort reached a critical level, I started a process of abstracting mytself a bit at a time from such direct personal involvement in that system. I dont have the luxury of living in an expensive inner city house well served by public transport ( sanctimonious guff about public transport from people who do is wasted hot air) so I am working through these steps.

1. Buy smallish diesel cars. Our cars are medium size diesels with small engines. My car gets 5.5l/100km on the highway (42 miles/US gallon) Typically use about 60% of the fuel of the petrol equivalent. I dont zap off quick from traffic lights but I guess I am past that phase anyway.
2, Make biodiesel - With friends I built a biodiesel making plant to convert waste veggie oil to diesel. Benefits like 95% fewer carcinogens etc. Cheaper too. Costs time though. But also is totally renewable - doesn't add to the carbon load.
3, Convert to run it mostly on straight veggie oil. Have converted one and am on the second. Saves the time (mostly) in step 2. But I feel I need to improve the filtering process. More engineering.
4. Research growing my own algae to get the oil. I think I can run a car on 100 sq metres of roof with clear plastic tubing. Take out the middleman of 200 million years of the algae rotting in the ground. This step may take a while to get right. LOL

But at least I am trying. :tazz:

Brian

Edited by blennon, 22 September 2005 - 06:41 PM.

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#10
warriorscot

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Oil was made from sea creatures being compressed, plant life makes coal. There are a few biodesiel production facilities here that make the dielsel and the kits for conversion, DIY or they will do it for you. Its a good way to do it and the big plant biodeisel doesnt have the chip smell of the home stuff as it is filtered to a higher extent. Its good you are trying, within the next few years commercial electric and fuel cell vehicles will become more prominent as the oil companies cant hold them back forever. (modern electric cars are far superior to combustion engine cars, acceleration like you wouldnt beleive and 200 miles an hour uses the same amount of battery power as 20, new batteries mean they can be charged in minutes although the batteries to allow this on large scale wont be available for another couple of years.)

You could get hydrogen from algae and then use it in a fuel cell to give you power.
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#11
ScHwErV

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I, too think that being more efficient is better than trying to not buy gas on a certain day . My wife and I do a number of things.

She drives a Toyota Prius. Its a gas/electric hybrid that gets about 60 miles to the gallon. That thing is great!

In our current house, we burn corn in a corn stove during the winter rather than paying the inordinately high fuel oil or propane costs. Corn has no smell, its easy to work with, and it burns clean.

We are looking at building a subterranian house. Let the earth heat and cool the house.

Were going to put up a windmill to keep the electricity bills down. We are also looking into geothermal heating/cooling to make the house even more efficient.

I know these solutions are not going to work for everyone because its not the easy way, but its the best way that I have found to save the money :)

ScHwErV :tazz:
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#12
Dragon

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as previously stated a couple of times now, efficiency is the way to go. adn I would do so with no problems. But before I can make my van more efficient, I have to either get a new engine or rebuild the one I currently use. I have a piston burning out on it. at $60 USD per piston ring set, plus teh numerous gaskets I would need, it would cost me more to do either one, then it would to by a new car.

the problem though, if I can't afford to even look at buying the stuff to fix the engine myself, piece by piece, then I can't afford a new car. talk about your double edged sword. Posted Image
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#13
warriorscot

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Take a look around the scrapper write off yards most of the cars in there are full of parts that are undamaged but are about to be melted down through sheer laziness. The ones round here sell the parts as a side very cheaply new window and motor for a ford mondeo 400 pound in shop 30 at yard and a tenner for a mate to fit it on for you.

Efficeincy is a big buzz word now(know this after sitting in a chemical engineering lecture this morning where the word efficiency came up more times than was really necesary)

Fuel oil and propane, wow havent seen any one that uses that for a long time even the farms get natural gas and 'lectric now.

Subteranian houses are great but they arent too practical there was a fad for them here and they are alot of money to build and maintain(very damp and dark). They have been replaced by norwegian designed houses now, solid wooden built(not like US wooden build though much thicker and solid oak usually as far as i remeber, designed to stand up to very bad weather and last a very long time). Turf roof with solar panels, large windows but are either triple glazed or airglass. One side is often built into a hill or mound so it is semi sub terrainian i suppose.

But efficiency is great but it is expensive, supr efficieny isnt for your average person. We have alot of efficiency msures in our buildng regulations now, proper insulation is a big one(although needed if you wanttobe warm at all) and we obviouly have to be fuel efficient wh our vehicles with most of our fuel costs being tax, unless it is an exempt more environmentlally friendly fuel like LPG(LPG hybrid cars are very efficient n the 100 miles to the gallon range
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#14
OneCool

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BLAH<BLAH<BLAH

Hear it EVERYDAY!!!!!!!!!!!!!!!


theres 150 million drivers on the rode in the US.They all have there opinion about gas hikes and there ALL to get mad and cuss about it!!!

They blame,Bush,Govener of the state they live in,Mayor,local place they buy it from!!!!!!!!!!

Try and get 10 of them together to do something about it!!!!!!!!!!!

IT WILL NEVER HAPPEN!


They will sit in there lazyboy ,watch the news about a gas increase and complain about it...the next morning they will go to the gas station,fill up with $3.45pg and go about there day :tazz:
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#15
warriorscot

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If only it cost that here, $6.25 equivalent here after the prices have dropped back to normal was working out nearer$10 a couple of weeks ago.
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