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RE: [Fwd: Gasoline Prices: Good Idea for the Long Run]

To: MGs List <mgs@autox.team.net>
Subject: RE: [Fwd: Gasoline Prices: Good Idea for the Long Run]
From: Chuck Renner <crenner@dynalivery.com>
Date: Thu, 9 May 2002 18:39:29 -0500
We already do have the government subsidizing the investment in 'genetically
engineered' fuels.  It's called ethanol from corn.  The elected
Congresscritters from farm states use this as an election aid, and about the
only benefit goes to the 'family farmers' who's name happens to be Archer
Daniels Midland...  :)

Anyway, I don't want to start a whole debate on this, but the idea of not
buying gas on a particular day or boycotting Exxon or Mobil stations shows
complete ignorance of the way gasoline is refined, distributed, and
marketed.

The quick lesson:  in most areas, all gasoline for that area comes from a
single terminal.  This gas is then distributed via truck to the retail
station.  The only difference between brands is their additive package.
Like crude oil before it, gasoline is a fungible commodity.  If the Exxon
and Mobil retail stations aren't selling as much gas, the Phillips, Chevron,
etc. will take up the slack.  The gasoline in your area could come from a
Phillips refinery, or it could come from an Exxon refinery, or any number of
other companies.  Since the net use of gas doesn't change, they don't see
any change either.  

The only 'hurt' that's caused by this kind of plan is on the owner of the
retail outlet, which is typically _not_ the oil company who's name is on the
sign.

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