CaliforniaDCfan Posted February 23, 2012 Share Posted February 23, 2012 For several years there has been significant talk about how the cost of fuel is one of the largest threats to Drum Corps. I have a sinking feeling that this summer will be extremely hard on many corps. I have heard several rumors (one from several sources is that DCI is floating an idea of a fuel surcharge that would be charged to show producers and passed through to the corps) about how this threat is playing out in planning meetings across the country. What do you think? Discuss. Quote Link to comment Share on other sites More sharing options...
Michael Boo Posted February 23, 2012 Share Posted February 23, 2012 The OP is referring to this article. 1 Quote Link to comment Share on other sites More sharing options...
ma24le Posted February 23, 2012 Share Posted February 23, 2012 (edited) We have been hearing this for the past 3 or 4 summers about how fuel is going to cost x amount of dollars blah blah blah and it has never reached that price. And it isnt just fuel that is going to be an expense. With newer vehicles becoming more environmental friendly both new trucks and new buses are going to need to add DEF (diesel exhaust fluid). Sure it will be a small expense with using approximately 50 gallons for the whole summer. But are you going to charge that to show producers as well? When corps charter their buses some figure in the cost of fuel and some dont. So how will it be fair to those who worked in their contract the price of fuel to those who didnt (i.e. fuel hedging). Edited February 23, 2012 by ma24le Quote Link to comment Share on other sites More sharing options...
danielray Posted February 23, 2012 Share Posted February 23, 2012 (edited) Gas is $6.70 a gallon here right now. I don't think there will be a strong or sustained rally in oil prices right now because of the fact that prices are high in Europe right now due to refinery capacity issues and reduction in state driven consumption. Combine this with economic uncertainty in Europe, and you've got a larger issue. Since prices are already high in Europe now, if they get higher, the reaction is to simply stop driving, since the are many alternative and efficient means of public transport. This differs from America in that the way it is set up, Americans are forced to suck it up and keep driving. What is different now than before, is that the euro is weaker and the eurozone economy is uncertain. Last time when oil prices went sky high, Europe didn't really feel it as much because of the falling dollar compared to the euro. Anyway, because of the current factors now.. Europe would simply decrease demand and act as a sort of pressure valve on the global market. Speculators may be able to temporarily jack up prices based on issues in the middle east, particularly Iran, but again... US doesn't buy from Iran, Europe does.. and this would just simply cause even greater reduction in demand in Europe, benefiting the US consumers. Could it happen? Possible... but it is also an election year... so.... Edited February 23, 2012 by danielray Quote Link to comment Share on other sites More sharing options...
ozarkbugler Posted February 23, 2012 Share Posted February 23, 2012 This differs from America in that the way it is set up, Americans are forced to suck it up and keep driving. Not everyone in America drives. Many in cities use public transit. I am close enough to walk to my work if I need to. Quote Link to comment Share on other sites More sharing options...
whitedawn Posted February 23, 2012 Share Posted February 23, 2012 America drives more than any other western country. Public transit sucks in almost every area of the country, except for the largest cities. Also, the smarter corps signed gas contracts years ago, locking in lower prices. Quote Link to comment Share on other sites More sharing options...
hostrauser Posted February 23, 2012 Share Posted February 23, 2012 America drives more than any other western country. Public transit sucks in almost every area of the country, except for the largest cities. This. Public transit especially sucks in the West. When the cities were built, there was so much land they built out and not up. There's so much sprawl in the west that public transit really isn't even feasible. The SF Bay Area and city of Sacramento have good public transit. But SoCal is screwed. And last night gas was already at $4.45 at a Shell station near where I bowl. This probably is the year we see $5/gallon. Quote Link to comment Share on other sites More sharing options...
Spartans87 Posted February 23, 2012 Share Posted February 23, 2012 If gas stays below $5 a gallon here, it will only be because of this being an election year. Other than that, it is heading there whether we like it or not. Gas tax in most states keeps rising, so this year or sometime on the near future, it is coming..... Quote Link to comment Share on other sites More sharing options...
garfield Posted February 23, 2012 Share Posted February 23, 2012 If gas stays below $5 a gallon here, it will only be because of this being an election year. Other than that, it is heading there whether we like it or not. Gas tax in most states keeps rising, so this year or sometime on the near future, it is coming..... Boy, with all these prognostications around, can one of you tell me if I should cover my shorts today, or tomorrow morning instead? The difference between $4.50/gal diesel and $5.5/gal diesel is about $30m for the season for an average full-tour corps. Not that it's not a bite to pay more for fuel, but most full-tour corps are the top-placing corps that run $750m annual budgets. Five dollar gas ($5.50 diesel) is not the end of the world, nor the end of drum corps. If it survived the 1970's, it'll survive this season, too. Quote Link to comment Share on other sites More sharing options...
Michael Boo Posted February 23, 2012 Share Posted February 23, 2012 Boy, with all these prognostications around, can one of you tell me if I should cover my shorts today, or tomorrow morning instead? The difference between $4.50/gal diesel and $5.5/gal diesel is about $30m for the season for an average full-tour corps. Not that it's not a bite to pay more for fuel, but most full-tour corps are the top-placing corps that run $750m annual budgets. Five dollar gas ($5.50 diesel) is not the end of the world, nor the end of drum corps. If it survived the 1970's, it'll survive this season, too. I can see $30k additional for fuel and corps having $750k budgets, but if gas goes up so much that corps would be spending an additional $30 million, I don't think the activity would survive. As for $750 million budgets, that would buy a lot of drum heads. Quote Link to comment Share on other sites More sharing options...
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