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June 10, 2008

Gasoline prices at $5.75/gallon? What would it mean for you?


The current issue of Barron’s includes an interesting interview with “Mr. Crude.” Arjun N. Murti, the leading energy analyst at Goldman Sachs, has a distinguished record. He was dead on with a prediction of a spike in oil prices. He made his call in 2004 when oil was $40/barrel. What does he see now?

Murti sees energy in the later stages of a “super spike,” in which prices rise to a point where demand drops off. In a note last month, he wrote that “the possibility of $150-to-$200-per-barrel oil seems increasingly likely over the next six to 24 months.”

His rationale is easy to understand. Supply is constrained. Demand is firm and rising. Oil prices in the forecast range would imply gasoline prices of $5.75/ gallon. At this point, one could expect a further reduction in demand.

Consumers and businesses alike need to ask what this possibility would mean for them.

In particular, businesses with exposure to higher fuel prices need to act quickly. Despite the trend, this problem has taken many by surprise. Some astute business leaders seem to be in denial. Normally, one would expect businesses to anticipate and to deal with important risks. Most have not yet done so.

There are some very good answers to the problem, including those that we offer.

It is certainly time to plan, and probably time to act.

Filed under:Ask Jeff,Fuel Price Hedging,Fuel Price Trends,Price Shocks | by OldProf @ 10:37 pm | 

June 6, 2008

Weekend Reading 6/6


Some observations from Tom Kloza on the beginning of Hurricane Season, high gasoline costs (those darn speculators!) and more.

What’s going on with the Renewable Energy Tax Credits?

Mythbusters: Food vs. Fuel.

Don’t do this at home!! That is store gasoline in containers in a closet.

Is the time right for a comeback of the Zeppelin?

McCain and Obama on green energy.

Filed under:Alternative Energy,Energy,Fuel cost,Fuel Price Trends,Gas price | by Pump Girl @ 4:43 pm | 

June 2, 2008

Mythbusting: Gas Saving Tips


Automotive Fleet, citing Consumer Reports, shatters a few myths about fuel economy. It does not help to buy gas in the morning, nor to change your fuel filter. A dirty fuel filter affects performance but not fuel economy, due to modern computer techniques.

How about rolling down windows instead of using the air conditioner? The loss of aerodynamics is a myth. The AC costs you about 1 MPG.

Meanwhile, where are the good tips? Using the right tire pressure must count for something.

Filed under:Fuel Cost Control | by OldProf @ 6:52 pm | 

Chicago Gas Price Hot line


Chicago has the highest gas prices in the nation. Are they just sitting still for this stuff? No!! They have established at gas hot-line to help consumers find the best gas prices across the city.

(Hint: Indiana is not that far away)

They are also testing the pumps to make sure you get what you pay for. One station started out at .32 instead of .00. It all mounts up.

Hot-line # (312) 742-4427. If you feel you’ve been defrauded dial 311 to file a complaint.

Filed under:Fuel cost,Fuel Cost Control,Fuel Price Trends | by Pump Girl @ 5:33 pm |