Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
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Sokolis Group would like to wish you a Happy New Year! | |
| New for 2009
FUEL ADVICE BLOG
Ask questions about the fuel markets, going green, fuel cards or just read an article. |
To visit the blog
click on the logo |
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Will OPEC Play Nice In The Sandbox Together?
That wasn't meant as a joke but take it the way you want to. On December 17, 2008, OPEC announced that they were cutting production by a record 2.2 million barrels a day. The fuel market went up a little but came right back down after people started to listen to what the members of OPEC actually said after their meetings. There were statements like, "We started to cut back last month to help put a floor to these rising costs" or others saying that they have been producing below their existing quota so they wouldn't need to cut production. What you have is a bunch of very smart, very greedy, countries that most of you wouldn't trust with a ten foot pole; Iran, Venezuela, Qatar and non-OPEC countries like Russia, Azerbaijan. These are countries who won't be winning the Miss Congeniality award anytime soon.
The big question isn't if this cut in output does anything to the price of oil, because it will not. Prices will remain around $40, maybe a little lower or little higher. In a month or two, once the effects of these cuts are visible, OPEC will have another meeting and subsequently announce deeper cuts. Again, everyone will say they are going to cut a lot but in actuality they will cut very little. If they really don't follow through with the cuts this could be a very critical time for OPEC. If the economy continues to remain weak, we could see $20-something for crude oil. This would translate to something close to $1.10 for gas prices and $1.60 for diesel fuel prices depending on state taxes for the products. OPEC is the largest producer, accounting for 40% of the world's supply. If they don't take the lead, don't expect countries like Mexico, Russia and others to make cuts on their own.
As crazy as the oil market was when it was climbing wildly up, we have already discovered how equally crazy it's downward spiral has been. I don't think we've reached the bottom yet. Having said all of that, now is probably not the worst time in the world if you are considering price insurance for 2009. Just like with stocks don't try to buy at the very bottom because you probably going to lose.
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| SURVEY RESULTS
Did you take part in the November survey? Even if you didn't, do you want to know what is going on with the industry and what people in your industry think is going to happen. Over 300 leading companies, including Coca-Cola, Kraft Foods, FedEx, AAA and others have provided their views.
For survey results click here. |
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| Greetings!
As we reflect on 2008 we had some good times, but financially, we endured a lot of bad times.
It's 2009, a new year, a new page in history with a new President poised to take office.
We all know what the economic condition of the country is and that it won't change overnight. But we must have hope. In the words of the renouned basketball coach, Jim Valvano, "Don't give up. Don't ever give up."
Coach V was talking about something much more powerful then the economy when he used those words. He was talking about cancer and facing one's death. We should always remember, no matter how bad it looks, while were here we still have a tomorrow.
Donations to the Jimmy V Foundation can be made by visiting:
http://www.jimmyv.org/
Happy New Year! Please enjoy this issue.
Regards,
Glen Sokolis
President
If you have an idea or topic you would like to see discussed here or if you would like to contribute an article for future issues, please e-mail me at gsokolis@sokolisgroup.com
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Sokolis
Solutions
Prevent Fraud for 2009
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If a driver is dismissed, be sure to cancel his or her DID immediately, retrieve his or her card, and verify that all other cards are in their appropriate locations.
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DOE Prices
as of Jan. 5, 2009
US = $2.291
EastCst = $2.380
NewEng = $2.596
CenAtl = $2.496
LwrAtl = $2.310
Midwst = $2.272
GulfCst = $2.228
RkyMt = $2.215
WCst = $2.275
CA = $2.239 |
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Sokolis Strategic Alliances
Here is a selection of companies with whom we share a strategic relationship. These companies do not pay to be promoted by us, however, we feel strongly that they can help your company.
Carbon Fund 
Smartway 
KMRD
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NOT A SOKOLIS GROUP CLIENT?
Contact us online or call 267-482-6155
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Your company can help lead the country in Environmental Stewardship with these 3 Golden Rules.
-Recycle
-Reuse
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Please visit our blog.
Click here |
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Testimonial
Dear Mr. Sokolis,
Thank you very much for your advice and guidance regarding recent retail gasoline price fluctuations in Western New York. Your in-depth understanding of the fuel markets and supply chains has been very valuable to me. Your advice will help to provide a sound basis of good information from which to advocate for public policies which encourage efficient markets, server consumers well and set the stage for economic growth. Thank you very much once again.
Sincerely,
Brian Higgins
27th District New York
Congress of the United States
Click here for more information |
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Fuel Economy
Last week we interviewed maintenance expert Darry Stuart from DWS Fleet Management and talked to him about how companies can continue to help fuel performance even though prices are lower than what they have been. With a difficult economy, saving money everywhere is very important.
Glen: Darry, besides parking their trucks, what is the easiest way to conserve fuel?
Darry: I tell them the "Egg" theory! The driver has the most impact on fuel economy. The most basic principle is to train the driver, better yet, make him aware of driving the vehicle,(I am not so sure the word training is overused with senior driver) any vehicle, as if there is an "Egg" between your foot and the throttle.
A broken egg means poor fuel economy and money down the drain.
The second most important program is speed control, I do believe that mother nature has a way of helping with what I call Momentum Conservation. That is to let mother nature help with the process. When you can let the momentum moving, or continue to move the truck without the throttle being applied. This is not to include freewheeling down a hill with no resistance control.
We just have to have higher horsepower and slow the trucks down. Under 68 MPH is good.....better at 65 MPH and much better at 62 MPH. I am not convinced that lower than 65 MPH makes operational sense.
Consider these facts:
@ $20 Per Barrel we wanted performance
We used to spec trucks for performance
---- High horsepower
---- Medium torque
---- High Speed 70+MPH
@ $140 Per Barrel we demand economy
Now we spec for fuel economy
---- High horsepower
---- High torque
---- Lower speed 60-65 MPH
---- Minimum Droop Settings
The third important thing is lower RPM's. Low RPM's, Low RPM's. Cruise at 1200 - 1450, perfect...Just low RPM's
I have had no Philosophy changes in 25 years. I'm still doing the same thing......Low RPM's, High Horsepower.....
Again, look at these comparisons:
ln 1983, Fuel was cheaper per gallon - 8.13 MPG
---- High Horsepower COE
---- Low RPM's
---- 3.55 Rear Ratios, .74 Overdrive
---- @ Top Speed 68 MPH @1400-1500 RPM's
---- Cruise @ 63 MPH
ln 2008, $4.50 ($2.85) per gallon - 6.31 MPG
---- High Horsepower Conventional Cab
---- Low RPM's
---- 3.55 Rear Ratios, .74 Overdrive
---- Top Speed 65 MPH @1400-1500 RPM's
---- Cruise @ 60 MPH
DWS Fleet Management, a Boston based company, provides Limited Time Executive Fleet Management services for various companies and vocations as an extension of staff. Please visit the web at www.darrystuart.com for further information. If you have any questions, email those to dws@darrystuart.com or they can be contacted by phone at (508) 384 9021.
Darry W Stuart
DWS Fleet Management
www.darrystuart.com
21 Lake Street, Suite 2101
Wrentham, MA 02093
O 508 384 9021
C 508 397 7169
F 508 384 9010 |
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Quote
"You can have everything in life that you want if you just give enough other people what they want."
Zig Ziglar
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Is your company decentralized?
Click here for fuel program help. |
Don't Like The Color Green?
Better get used to it!
With the new administration ready to take office a strong part of President Obama's plan is being green. As you know, we at Sokolis Group, like that because we not only feel it will help produce more jobs for this country but make the air clean and the future brighter for generations to come. So how much can a company save with a green plan? Marriott International, not a small company by any means, saved 7.8 billion dollars in energy bills through eco-friendly initiatives. Now that is Green making Green$$$.
What can your company do to make life better for all of us and put extra GREEN in your company's pocket.
Use recycled paper for printing. The average U.S. worker goes through 12,000 sheets a year. Use both sides and don't print when you don't have to.
Lights actions. CPL's or Compact Fluorescent lamps save 75% less to operate and last 10 times as long as traditional light bulbs. If you're leaving your office for more than 15 minutes, turn off the light.
Turn those computers off when you go home or put them on sleep mode, not screen saver, that still burns unnecessary energy. Think about it, for 14-16 hours per day your computer and monitor are running and no one is using it. Waste not, want not.
Use green cleaning products or make sure your janitorial staff does. It's less harmful and more biodegradable for the environment. That can't be a bad thing.
Heating and Air Conditioning, use a programmable thermostat, employees shouldn't sweat or be cold but be sure to select a reasonable setting. Check the air filters monthly.
Our President's ideas will go much further than this with bio fuels, electronic cars, solar power to name just a few. It's your world, my world and our kids world, let's make it a better place and it starts with all of us. |
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" A 5% reduction in transportation cost has the same P&L impact as a 30% increase in sales."
- Gartner Group | |
| The economy is difficult and sales are slow, if you are considering cost cutting measures why not hire the Sokolis Group. | | |
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