Here is something to think about when we are complaining about fuel prices. At any given moment, there is only a 3 day supply of fuel on hand accross the country as an average. This included all fuel in the ground at the stations and in the active (repeat active) on going delivery from the well heads to the refinery to the stations.
The only glut of fuel out there, is in the ground and not pumped and refined yet. We do not have the capacity. What this means is that the supply chain is active and dynamic, meaning that it cannot be just shut off and then restarted. Way too much trouble doing this and very hard to control.
Over all as we start conserving fuel, because we are slowing down and getting a little better economey, we slow slow down the dynamic supply chain. It is hard on the industry to shut down or slow way down because it causes problems. So in theory the price of fuel starts to hold steady and then slightly drop or start to drop as the flow of fuel to the stations starts to slow with less demand. They (the industry) have to get rid of the fuel because they cannot afford a bottle neck because we do not have a storage capacity. So the price starts to drop more to encourage us as consumers to buy more.
That is it in a nutshell. I have friend that owns a stations. Yes big oil (Corporate) has allot of control via their Zone Pricing Policy. They will charge what the market will bear. Twice a week the stations are required to report in all their sales. You can bet there is some serious number crunching and analyizing going on to figure out just how much they can move the price up. If an individual stations desides to charge less, they can be penalized by Corporate with their next delivery charges.
Stations owners are hurting also as they are catching the CRAP from both ends of the chain. Corporate can hurt them if they done charge or hold their price at what corporat recommends and the consumer and hurt them by going to another station.
I don't claim to know all the specifics and inner working, but I know enough that I am very disapointed with our grand and glorious Congress for their absolute lack of concern with a viable self sustaining engery policy. We should have been energy independent years ago. Business is out to make money and profit. I have no complaint about making money. Gouging?? We have to be able to prove it and show via hard core evidence that the oil compainies are actively doing this. Can somebody provide the evidence needed please. I can't. I can speculate all day long, but I don't have the goods on them.
I don't blame the companies, but rather the chicken *(&%^#^&&**^ congress that we have. They are do nothing bunch that get a huge pension after just 4 years and their families seem to keep getting the pension even after they die. Amazing isn't it.
Ok I have had my rant now
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