Wake Up and Lower Gas Prices!

The emails that explain how to lower gas prices by not buying from one company or another or not buying gas on a special day are huge LIES and Please think it through: Because WE DO HAVE THE POWER TO LOWER GAS PRICES!! (Do I sound like Oprah yet??)

Sorry, but here's my rant, this is one of those few emails that drive me insane. This points to the kind of mentality in the general populace that allows high prices to continue. Send it to everyone you know. It is time to WAKE UP and take back control of our economy. . . If you read it and thought it was a GREAT IDEA enough so that you would pass it on, please stop. Here then is the real way to lower gas prices.

LOWER DEMAND = LOWER PRICES. (that's PERIOD) unless SUPPLY cannot keep up with demand

The gist of this email is correct! Capitalism(our true government) is driven by supply and demand. As long as demand remains constant or increases the price will edge ever upward. Once demand decreases the prices will go back down or the companies will lose their shirts. So intellectually the idea is sound, however

1. The idea says we will not buy any gas/oil products from Exxon/Mobil. OK easy enough or is it.
• Quick name the top 5 customers of Mobil or Exxon? (consumer gas is not on the list)
• For this to work we need to know about all of the Exxon/mobile market.
• Whom else do they sell to whose products we buy? I am sure they sell billions of gallons to plastics mfg's all over the world (can you say glad/ziplock containers?? Trash bags??)
• Their real "product" is fractionated petroleum(Google it) and the consumer gas market is a small slice of their profit lines being only one fraction of the process.
2. Because we are not buying from them they will have to lower their prices: Not true
• Basically it would have to be a complete boycott of Exxon/Mobil gas and petroleum products (see above). This would specifically impact them but would not lead to lower prices.
• Also we are not actually (according to this plan) reducing demand we are simply re-apportioning it to other Mfg's. So they could possibly avoid a complete boycott since it would be more painful to us than them.
3. Because Exxon/mobile has lowered their prices, other companies will have to follow suit: After reading the above two points can you see it coming . . .FALSE.
4. • In fact they would probably RAISE THEIR PRICES a few cents at a time as long as the Exxon/Mobile gas boycott lasted.
   • THEY ARE NOW GETTING ALL THE DEMAND so according to the simple laws of supply and demand prices will go up then supply might become an issue -- maybe other companies will turn to Exxon/mobile for supply. . . .If we only bought from say Hess gas stations they would quickly run out of fuel. . .
5. The only two true thing it says is that 1) we rely on our automobiles and 2) we have the power to affect prices

SO HOW DO WE MAKE GAS PRICES COME DOWN?

• By understanding and acting on the fact that 3.50 a gallon is unacceptable. We rave at the fact that the oil companies are making trillions of dollars off us. But WE ALLOW THEM TO!
• Think about it personally would you reduce your salary by 5% to make it cheaper for your customers to get your product or services? Hell No,so why would they??
• Remember Supply and Demand. Lower demand and prices drop (unless the supply goes down then we are in real deep shit)
• Make a non-negotiable goal for your family to reduce your demand for ENERGY by 5-10% in the next year and 10- 20% in the next five years. How you do it is up to you -- here are some ideas.

  While your reading them please gauge your level of "uncomfortableness" with each one.

  Now think about how "comfortable" you feel about paying 3.20 a gallon. When paying for gas becomes as "uncomfortable" as these ideas, then these ideas will start to seem better.

  • SO if you currently spend $100 a month on gasoline 5% reduction would be $5 (you'll spend $95) a true reduction of only 1 1/2 Gallons of gas a month!(based on current price of 3.20/gallon) Seems easy. Now shoot for 10%
  • MASS TRANSIT: Gas is cheaper in Jersey and New York. Why? They use trains and buses for their commutes. Significantly lowers demands for gasoline. So consider trying public transport maybe its for work, maybe its to shop!! Fancy an afternoon at the Mall, take the bus!! (also explore the thoughts your having about the bus = poor people or people who can't afford to drive?????)
  • WALK: Is your local pharmacy, store whatever close? Then walk or bike there instead of drive milk/egg prices are usually constant so if you need them walk for them! (I currently walk to CVS when I need to go there (unless its on my way home and I do the trip combine thing) You'll end of saving energy and being healthier WIN WIN
  • DRIVE LESS: Organize your time on the road. Shop at places along the way for groceries and such, even if it’s a small mom and pop. Their prices might be higher, but your saving even more valuable dollars in your tank. Plan a shortest route to complete your errands, do them all at once. Doing just this might shave 1/2% from your energy needs. Track your mileage and set goals for reduction.
  • GO GREEN: If you haven't replace all your bulbs with compact fluorescents! The mercury hazard is currently less than eating tuna!(sushi lovers!) Electric companies are huge users of petroleum/gas products. So look for ways to save electricity. My bill went down $15 dollars/month after replacing my bulbs (all but two in the house). Any the danger from broken bulbs is no less than any other broken fluorescent bulbs. The true danger is when they are broken while ON.
  • ALTERNATE ENERGY: Investigate alternate forms of energy. Solar, Wind, Wood Burning. Expensive installation in most cases but ROI(Return on Investment) is probably under 5 years with current energy prices. I am currently investigating small Sevonius wind turbines (only 6' tall) that require low wind speeds to generate up to 1000W to supplement my current electricity. . . .(build cost about $1000 and would provide me with 1 hour of "FREE" electricity per day or 30 hrs/month. These saving are at "low" wind speeds (5 - 10 mph) I could conceivably get way more ) (all rough guesses)So my turbine would pay for itself in 1 year!!! Most ROI for alternate energy (solar etc.) are measured in years!

  So THINK about your energy consumption and how you do it. What are your total energy cost per year currently? (gas, oil, electric) What is your average electric use PER HOUR (most companies can provide this information) Make changes, apply some energy towards this end and demand will drop and prices will drop. Continue as we are == prices continue to rise till we simply cannot afford gas/oil or it is too painful for us to buy and then we'll make changes. So be proactive instead of reactive!!

  If nothing changes then nothing changes! So pass it on and I welcome your feedback!

  Joe Klinkhoff jdk3@rcn.com http://users.rcn.com/jdk3/gas.html