CrunchyTenor Posted May 27, 2008 Share Posted May 27, 2008 Put sails on their buses? I can see them coming up to every interstate interchange... "Prepare to come about!" Garry in Vegas Quote Link to comment Share on other sites More sharing options...
ducttapedgerbil Posted May 27, 2008 Share Posted May 27, 2008 While fuel prices are now higher, I think the real test for corps was in 2004 when prices were dramatically run up in the spring. At least now there has been a warning, and I would think that forward looking corps directors would have at least priced $4.00/gallon for diesel fuel into their budget if not more. Of course the bills are never easy for corps to pay. I think DCI like any other business affected by the higher fuel prices will either adapt or die. Pretty obivous I know but DCI has evolved itself into such a vunerable position absolutely dependant on cheap fuel. I would like to see a first and second tour model return, and maybe this is a good thing for DCI to support more local corps and shows and to seriously look at a more viable system. As far as the oil prices go I see many technical and fundamental signs in the market that prices are topping in a fashion very similar to the internet boom and bust in 2000. Historically when the US, still the world's top oil consumer, goes into recession prices of oil have dropped 30% or more. Prices were headed towards $2.00 a gallon in the early 90's but were knocked down by the 1992 recession. With the downward revision to the projected GDP last week the economy is growing at a snail's pace at best,and the financial markets ended their short eight week rally. On the futures markets open interest actually declined on crude contracts meaning everyone who can buy has already done so and speculators in the know are taking profits. We also saw a bearish reversal of high volume selling in energy stocks the same day that oil topped $135, a first in this market this year, and another signal that the big money is seeing the end is near. Prices are on an overheated run right now and the scary thing is where does it stop? Right now that seems like it will never happen but historically that is just when the market rolls over. The only question I really have is how many corps will be around to see the end of this. $4.00/gal for diesel???? try $5.35...... Quote Link to comment Share on other sites More sharing options...
IllianaLancerContra Posted May 27, 2008 Share Posted May 27, 2008 Is there perhaps a way to buy up-front a certian amount of fuel, say 15k gallons, for a set price. It would have to be from a supplier that has filling stations all along the tour route. Than, as the summer goes, the corps could fill up as the go, and not have to pay at the time (because they paid in advance) up to the 15k gallon point. If prices g oup, it is a good deal. If they go down, well, thati s a fact of life on the speculation market. At least, the corps would know up-front what they would pay for fuel. A side thought on this - whan a corps leases busses is fuel a part of the lease? Quote Link to comment Share on other sites More sharing options...
Mephistopheles Posted May 27, 2008 Share Posted May 27, 2008 (edited) Just the past MONTH alone over 10,000 transportation companies went out of business due to fuel... Where did you come up with this number? What counts as a transportation company for this figure, a guy and his unlicensed delivery company using his Mom's '87 conversion van? Edited May 27, 2008 by Mephistopheles Quote Link to comment Share on other sites More sharing options...
crfrey71 Posted May 27, 2008 Share Posted May 27, 2008 Before I go to far...Mods..if this turns too political, erase this post...I just get sick of people blaming the oil companies about high prices...I know the OP wasn't blaming the oil companies, per se. If anyone wants to discuss my numbers, or where I got my info, feel free to pm me... I don't want to turn this into a political discussion, but don't blame the price of fuel on the oil companies. Oil companies profit on a gallon of fuel is about 12-15 cents. Federal, state, and local taxes on a gallon of fuel is about 60 cents. The oil companies have to look for the oil...drill the oil...refine the oil...ship the oil....the government just gets to profit, and those taxes are supposed to go to new roads, bridges, etc...have you looked at the condition of roads lately? What's driving up the price is the tried and true Supply and Demand. With China and India catching up to the US on oil usage, there just isn't enough. OPEC has been limiting production in Venezuela, Mexico, and the Middle East for years, and it's starting to bite us in the butt bad. Even if we drilled more of our own oil, we would have no where to refine it. No new refineries have been built in the US in 35 years, because of a certain left leaning political party. The Bakken oil fields in the US north west were pretty much played out years ago. The old technologies wouldn't let them get to the majority of oil in that area. Now, with new technologies, they figure they can get 271 and 503 BILLION barrels of oil out that they couldn't years ago. In comparison, ANWR only has 6 to 16 billion barrels of oil...but alas, if we were allowed to drill it, we couldn't refine it anyway, because current refineries are already running at 100% or more... Sure, oil companies are making alot of profit...40 billion dollars is a lot...but to make 40 billion, they had to spend over a trillion dollars to make it. That's a little less than 5% profit...the standard WalMart mark up on products is 300%...if you buy a new part from a dealer for your car, the mark up is about 60-70%...a bit more than 5% This concludes my rant about fuel prices...all I can say is I hope all the corps make it to all the shows...they put on some dynamite programs, and everyone gets to see what's stacking up to be a great drum corps season!! Just to add, since we don't have enough refineries, we are actually importing gasoline, which of course drives the price up. Also, the taxes our govt gets on a gallon of gas are suppose to go to the roads. As we can see with our own eyes...what roads? Also, ever notice how there is usually a bond on a ballot every other election, for road repairs and maintenance? And what happens, people usually vote yes on the tax, eventhough they are being taxed 50-60 cents in some places on a gallon of gas. I found the statement in the DCI article, "uncertain economic outlook" kind of silly. If the economy was ever certain and predictable, we would never make any money. The uncertain economy is normal. There are peaks and valleys. It could be worse, remember Jimmy Carter's "Misery Index?" Quote Link to comment Share on other sites More sharing options...
Mike_Bonfig Posted May 27, 2008 Share Posted May 27, 2008 (edited) I think Mike still wishes he could be busmates with a Bandette. Definitely! My wife and I were actually discussing fuel prices this weekend heading back from Wisconsin Dells to Chicago. We were discussing that when we were in our first years of college you could still get gas for around a dollar a gallon. Just the thought that fuel prices have gone up 300% in the last 16 years is a little jarring. I'm not one to buy into a lot of why's and what if's about it...it's just the way it is...and I've always got the option to stay put rather than drive cross-country for a vacation. Unfortunately, the nature of the beast in corps is that of a "road warrior" so it's about finding where to cut corners elsewhere. Bio-Diesel anyone? Next week's headlines: "...in a surprise move, the Madison Scouts have converted all fleet vehicles to be fully bio-diesel powered. As an additional measure, the corps has changed the food program so that every meal now includes french fries and chicken wings in order to create a surplus of cooking oil to be recycled and used in the vehicles. Additionally the corps has formed a partnership with McDonalds and will be hitting every golden arches on their path this summer to raid the grease traps for refueling..." Edited May 27, 2008 by Mike_Bonfig Quote Link to comment Share on other sites More sharing options...
Galen Posted May 27, 2008 Share Posted May 27, 2008 Bio-Diesel anyone? Sure, if you want to drive up food prices even further... Quote Link to comment Share on other sites More sharing options...
Galen Posted May 27, 2008 Share Posted May 27, 2008 Is there perhaps a way to buy up-front a certian amount of fuel, say 15k gallons, for a set price. It would have to be from a supplier that has filling stations all along the tour route. Than, as the summer goes, the corps could fill up as the go, and not have to pay at the time (because they paid in advance) up to the 15k gallon point. If prices g oup, it is a good deal. If they go down, well, thati s a fact of life on the speculation market. At least, the corps would know up-front what they would pay for fuel. I remember reading about a couple of co-op gas stations somewhere in Minnesota that were doing something like this a year or two ago- basically you could buy a supply of fuel at a guaranteed set price (something like $2.99 a gallon) and that wouldn't change despite what the station charged on a day-to-day basis. I don't know if it really caught on though. Quote Link to comment Share on other sites More sharing options...
Medeabrass Posted May 27, 2008 Share Posted May 27, 2008 They can probably drill in the ANWR, but this oil will continue to go onto the world market. It is a business with no loyalty. The only way to stop this is to nationalize our oil resources as Mexico and other oil producers have done. Honest question. Are the prices of gasoline cheaper in these socialized oil producing countries? My first intuition is no, since the price of oil is determined on a world market unless the government is subsidizing the price (like China). In which case, we're still paying for it through our taxes. We will still have to import oil anyways and that price will be set by the world market. My gut feeling is it's a catch 22 no matter what we do...the law of unintended consequences so to speak. The government has shown time and again that it only knows how to do things in a bloated and inefficient manner. Those inefficiencies will be passed on to us the consumer/tax payer. Quote Link to comment Share on other sites More sharing options...
Medeabrass Posted May 27, 2008 Share Posted May 27, 2008 As far as the oil prices go I see many technical and fundamental signs in the market that prices are topping in a fashion very similar to the internet boom and bust in 2000. Historically when the US, still the world's top oil consumer, goes into recession prices of oil have dropped 30% or more. Prices were headed towards $2.00 a gallon in the early 90's but were knocked down by the 1992 recession. With the downward revision to the projected GDP last week the economy is growing at a snail's pace at best,and the financial markets ended their short eight week rally. On the futures markets open interest actually declined on crude contracts meaning everyone who can buy has already done so and speculators in the know are taking profits. We also saw a bearish reversal of high volume selling in energy stocks the same day that oil topped $135, a first in this market this year, and another signal that the big money is seeing the end is near. Prices are on an overheated run right now and the scary thing is where does it stop? Right now that seems like it will never happen but historically that is just when the market rolls over. The only question I really have is how many corps will be around to see the end of this. Thanks for the insight from a "Wall Street" point of view. I hope you are right. Quote Link to comment Share on other sites More sharing options...
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