Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
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| GUSTAV
What's Next?
If we are talking about a hurricane that is going to hit the largest, most dense area for oil in the United States, we should be familiar the headlines by now. Oil prices are going to raise and raise, wildly right? As this article is written and GUSTAV is starting to hit the Gulf of Mexico Region, fuel costs are down. Yes, that is correct, down. Why? Great question? As the storm is making landfall it is not shaping up to be exactly what the "experts" predicted. This means, that while Gustav will certainly wreak havoc with the area it will be less severe than expected. That is good news but its leads us to ask the question, how much bloating does the price of oil have in it if the hurricane has a hold on 25% of all U.S. Oil production and could be shut down for a couple of days. There would be no ships to bring in foreign oil that we so heavily need, no refining would be completed, no product would be pumped through the hundreds of thousands of miles of pipeline that supply locations like Atlanta, Chicago, Charlotte and other major cities. The price would go down. Supply will be tight over the next couple of weeks and we may see a bump at the pump but on the trading floor prices are down. We wish all of our clients and friends in the Gulf Region are best wishes.
Do we need other oil news? Sure, why not. As easily as this price is lower because of GUSTAV, look what may be coming our way later this week but Tropical Storm Hanna. If Hanna remains on path and does turn into a hurricane it will have dramatic effects on people and property but should not cause much of an issue for the oil world.
Georgia and Russia still are having their issues. If they escalate it will cause more oil issues. The U.S. dollar is getting stronger which helps discourage commodities traders from using Crude as a trading instrument against currency. This helps remove some of the oils' drive to higher prices. Of course, Iran announced yesterday that they would vote to cut production at next week's OPEC meetings in Vienna. They feel that paying $100+ per barrel is a fair price for crude oil. As we all have learned over the last year, no one really "knows" what is going to happen with the price of oil. Plan your business around the worst and anything better will only be an upside for your company. Clearly, if there was ever a time to buy price insurance or a cap, the time is now. |
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Quote
"Those who have succeeded at anything and don't mention luck are kidding themselves."
Larry King | |
| Greetings!
Labor Day has passed us and in my mind summer is over. So what will the final 4 months of the year bring to the world of fuel? Demand during these months usually goes up with the major holiday season approaching and the need to warm homes in the Northeast.
We are still in hurricane season. Keep in mind that Katrina hit in late August of 2005 and Rita wrecked havoc in late September of the same year.
Will we have a cold winter or a warm winter?
There will be an OPEC meeting on September 9, 2008 in Vienna Austria. Can you say, "possible cut in supply?"
Now is a good time to look at price insurance. click here
Enjoy this issue and feel free to share this with a friend.
Sincerely,
Glen Sokolis
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Sokolis Solutions
1. Reduce miles logged.
 UPS LOGISTICS TECHNOLOGIES
2. Drivers prefer a shorter work week, Increase their daily shifts and cut out a day if possible.
3. Use the right truck for the delivery. Don't send a tractor trailer if a cube van can do the job.
4. Truck maintenance improves mileage. A lot of companies shake their heads yes to this but never follow through.
5. Avoid aggressive driving
6. Limit speed
7. Reduce unnecessary truck weight
DRIVE SAFELY!!!! |
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DOE Prices
as of August 25, 2008
US = $4.145
EastCst = $4.199
NewEng = $4.382
CenAtl = $4.360
LwrAtl = $4.113
Midwst = $4.073
GulfCst = $4.098
RkyMt = $4.227
WCst = $4.286
CA = $4.359
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ON THE RUN
Glen Sokolis will be guest speaking
at the following events:
National AAA Automotive Conference
September 9th, 2008
in
Heathrow, Fl
AAA Automotive is a new national account for Sokolis Group. The crowd is expected to be more than 100. The topics discussed will be the fuel market, how to save money on fuel and a variety of other fuel related topics.
14th Annual Fleet Fueling Conference
Atlanta Ga
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NOT A SOKOLIS GROUP CLIENT?
Contact us online or call 267-482-6155
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| Learn about your carbon footprint
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QUICK STOPS
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CHECK THAT TIRE PRESSURE. Properly inlfated tires wil boast fuel economy up to 3%.
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REPLACE CLOGGED AND DIRTY AIR FILTERS Having clean filters can increase fuel economy by 10%.
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USE THE RIGHT GRADE OF MOTOR OIL It can boost fuel economy up to 2%.
Every percentage adds up to
BIGGER SAVINGS.
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Testimonial
"J. P. Express Service used to view fuel and energy costs as customary and ordinary to the operation of a LTL transportation company dedicated to performing overnight delivery service for a dedicated customer base. These costs have grown to become a major expense category that must be managed and controlled. The customer base will not accept the service provider continuously passing costs on in the form of a fuel surcharge. The only way to effectively accomplish this task is to contract with consultants that are experts in all aspects of energy management.
The Sokolis Group is qualified in the areas of purchasing, procurement, fueling, hedging, and audit management. In addition they are creative and always professional in their approach. We have entrusted the management of this critical expense area to them with complete confidence."
James Cappelli, Executive Vice President
J. P. Express Service
Click here for more information |
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In April 2008 we held a contest to win a GPS device or a $250 gift certificate for guessing the closest price to the high DOE National price for diesel. The highest the DOE went during the time frame of April through August 31, 2008 was $4.764. The winner, with a prediction of $4.76 per gallon was Guy Griffith, Republic National Distributing Company.
Congratulations Guy! |
Fleet Fueling Policies?
A carefully laid plan will bring success to just about anything you do. With fuel costs as high and unstable as they have been it's crucial that you have a plan. There are several "wins" in a comprehensive policy. Of course the overall goal is to lower the total cost of fueling. For everyone, putting together a program will take a lot of time and planning. Some companies don't have people with this kind of time or experience.
Where do you start? What do you do first? Here is a high-level review by Sokolis Group for you to implement and take action.
Information is key. If you don't have it, get it. To put any solid program in place you will need information daily, weekly and monthly to make critical money-saving decisions for your company. Someone in your company, or a fuel management company like Sokolis Group, needs to know this information inside and out, along with the ability to identify and question any information that doesn't look correct.
Make the policy clear. If your people don't understand the policy, how can you expect them to follow it properly.
Find the lowest priced locations. Pennies mean dollars and those dollars turn into hundreds of dollars quickly. Find the locations that have the best rates. Negotiate if needed. If your not sure how click here. You need to make sure that you protect your company and get the right deals.
Enforce the policy. Successful policies are those that are followed. Unfortunately, in almost all programs, people have their own view on how it should work. You have laid the plan, now make sure it is followed.
Allow no exceptions. Follow the plan. If your plan dictates that a driver isn't allowed to utilize a certain stop but uses it anyway hold that driver accountable.
Go Green....what? Document your fuel reduction. A decrease in fuel usage has an increased positive effect on the environment.
Set goals and motivate your people. There is nothing wrong with providing your drivers with some kind of reward for following the policy. If the policy is set up correctly the money you save will be more than five-fold from what you provide to your drivers.
Communicate, communicate, communicate. Get the message out early and often. There are so many programs that are rolled out and never followed up on. This cannot happen with your fuel program. It is too big an expense for your business. Your ability to communicate this factor can mean your company's success or failure. There are many means to get the word out. Use your pay stubs, banners, business cards, newsletters and staff meetings. Row in the same direction. Sokolis Group can help. Click here
Stay focused and save money! |
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Green Brings Green $$$
Many companies, including Sokolis Group (Click here), have realized that by thinking more about the environment when doing business they can actually make more money! Think about the ways in which your company can save on materials, improve packaging, conserve resources and recycle. We assure you that not only will the dollars come but you will become a leader in the community.
Sokolis Group works with many companies to help improve the world and reduce their carbon footprint. We encourage all companies to do their best. Some of the companies we work with:
Becoming a certified green business can involve:
Complying with all environmental regulations
- preventing pollution
- Conserving energy, water and other natural resources
- Reducing waist
- Controlling chemicals and hazardous materials
- Tracking resource use
- Educating employees and customers
- Introducing green practices to other businesses
Glossary
Carbon credit: The process of reducing emissions by "offsetting." An example is taking a flight and in compensation paying a company to plant trees to balance carbon use.
Carbon Footprint: A measure of one's impact on the environment in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide.
Green: Having positive environmental attributes or objectives.
Green Product: Biodegradable or compostable; made from renewable resources; organically grown.
Sustainability: Practices that help to ensure the continued viability of a product or practice well into the future.
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