Critical News & Information for Businesses
that Depend on Fuel and Fuel Services
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Where Is Oil Going?
This is a question that gets asked of us at least a dozen times a week. We wish we knew. If we could predict that, we would be multi-millionaires. Even the great Warren Buffet reported the other day that Berkshire Hathaway lost billions because he bought into ConcoPhillips and never expected oil to crash like it did.
We don't know where it's going even though we closely monitor it everyday. We do know the one thing that can be managed is the margins your vendors charge you for bulk fuel, retail stations, card locks, mobile fuel, fuel cards, etc. That is our expertise and we can tell you that over the past months margins have been at record highs. As the market has gone down vendors have slowly lowered their margins. Who can fault them for trying to maximize their profit margins in this difficult economy? That is why you need expert help from an organization like Sokolis Group.
Let's go back to where Oil is going. The first question that needs to be answered is where is the economy going? Let's face it; the world is not going to be all peachy by next week. As the economic turmoil increases, the demand for materials like oil decreases. The slide in crude prices has drawn a dramatic reaction from the Organization of Petroleum Exporting Countries, which has agreed to cut output by some 4.2 million barrels per day and is considering deeper cuts when they meet again in March. These cuts are due to the glacial pace of the economic turnaround. OPEC needs to get that price higher because at $35-$45 a barrel it's not making money.
The latest news is that Iraq can't pay for the war with these lower prices. A couple of months ago, Iran said it loses money when crude prices are below $60 a barrel. Venezuela's socialist government, headed by President Hugo Chavez, depends on oil for almost half of its income and is a price hawk within OPEC. You can go right down the line with every country that produces oil. They need the money, so will that drive oil prices up? No, we don't think so.
We aren't as bullish that crude will get to the high $20's a barrel but we still believe that over the next several months crude will stay under $50 a barrel, gas under $2.10, in most states and diesel $2.30, in most states, depending on the taxes. We really just can't believe what a great time it is to buy price insurance. Yes, we just said we don't think its going very high over the next several months but we also said, in the beginning of this article, that we don't know where it's going. No one knows. That is why paying a 15-20 cent/gallon premium for price insurance, even in these difficult economic times, makes perfect sense to us. What happens if there is a large scale terrorist attack on the United States or Saudi Arabia (the oil king)? What if the war suddenly escalates in the Middle East or somewhere else? Or maybe, just maybe, we find a little magic in a bottle and the economy has a wonderful second half of the year. You bet that will drive both demand and prices up.
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FUEL ADVICE BLOG
Read the articles, a sk questions about the fuel market, fuel cards fuel discounts, fuel rebates or going green. |
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| Greetings!
We are celebrating our 1 year anniversary of publishing Fuel Lines. If this is your 1st time reading our newsletter we welcome you. If its your 12th time than thank you for reading.
It's been a wild 12 months for our company and the country. With your support our company continues to grow. This is due, in large part, because our clients understand value and love to save money. My belief is that we don't have more clients because the decision maker themselves don't understand fuel or all of the extra benefits that we provide to our clients. My view and $1.50 can buy you a cup of coffee.
We hope you enjoy this issue and please visit our blog at www.sokolisgroup1.blogspot.com.
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
Do you want to increase your truck or car life to last in this difficult economy?
1. Tire Pressure
2. Engine air filter
3. Battery, cable/clamps/terminals
4. Engine oil
5. Windshield washer fluid
6. Tire tread
7. Fuel filters
8. Brake fluid
9. Clean vehicle
10. Drive belt tension
11. Antifreeze / coolant protection
12. Windshield wiper blades
Visit: www.sokolisgroup.com for help |
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Workplace Help
Hard Times, Difficult People
With stress levels so high at the workplace, how do you deal with difficult people? Start by making sure that you're not overacting. If you're not and the person is truly being difficult, approach that person and politely tell them what is bothering you. Try to come to an agreement and repair the problem. In some cases, this might not work, so you might need to enlist the help of other staff members. This will heighten the situation with the difficult person and hopefully things will be repaired. If this fails you probably want to ignore the difficult person. You also probably want to seek your supervisor and talk about the issue. In these tough times, everyone can become difficult, it's the best time to try and be a little more understanding. Can't we all just get along? |
DOE Prices
as of March 2, 2009
CenAtl = $2.314
LwrAtl = $2.055
Midwst = $2.030
GulfCst = $2.043
RkyMt = $2.091
WCst = $2.185
CA = $2.144 |
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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
Non-profit company, trying to reduce the carbon in the air
Smartway
EPA Division working towards carbon reduction
Top rate insurance company
Philabundance
Non-profit company, helping to feed people in need |
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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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"A 5% reduction in transportation cost has the same P&L impact as a 30% increase in sales."
-Gartner Group
Sokolis Group Viewpoint
We save most companies 10-15% on their fuel cost. Have us work for you and your bottom line will get bigger.
Click here to learn more | |
"Flaming enthusiasm, backed up by horse sense and persistence, is the quality that most frequently makes for success."
Dale Carnegie
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Testimonial
"The Sokolis Group is a seamless extension of IDC's fuel procurement and management program --- with demonstrated broad knowledge and experience supporting the transportation industry, Glen and his team have delivered at and above expectations. Their efforts complement the strong relationships with our existing fuel sourcing partners as well as facilitating new relationships and opportunities to maximize the value of our fuel programs nationwide. They simply improved our bottom line!"
Jim Tener, CFO
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Question and answer profile for
PressurePro TPMS Since tires are closely related to fuel cost and tire cost can be very high, we asked our friends at Pressure Pro to do a Q & A with us.
Q: The importance of maintaining proper tire pressure has been a hot issue for several years, in the 90's with the Ford Escape blowouts and most recently with the Obama campaign. Can you explain to us exactly why sustaining proper tire pressure is so important?
A: Keeping your tire pressures at their proper pressure is very important for several reasons. The most pertinent of these reasons is for safety. Under inflated tires are the #1 cause of tire failure and blowouts, result in over 40,000 accidents each year . Tires low on pressure have decreased performance, braking and handling. As well as safety, maintaining proper tire pressures is important for several more reasons. Fuel savings is important to all drivers and low tires require more fuel to overcome the rolling resistance of low tires. The DOT states that under-inflated tires waste over 2 BILLION gallons of fuel each year in the US alone, and decrease a vehicle's average MPG rating by as much as 3.3%. Further, low tire pressures break down the casing allowing tires to disintegrate and blow out as well as allow heat buildup which can cause ply separation and sidewall failures. Low tire pressure shortens tire life (more tire replacements) and is the cause of increased tire maintenance and downtime for vehicles, adding up to costly repairs and lost time. Finally, under inflated tires are a main contributor to Carbon pollutants, releasing over 57.5 BILLION pounds of unnecessary CO2 into the atmosphere each year. From safety to your pocketbook, tire pressure is a critical part of your travels.
Q: How does a Tire Pressure Monitoring System (TPMS) help drivers maintain proper pressure?
A: The DOT states that 63% of all vehicles have at least one tire low on pressure. Why, because checking tire pressures is dirty, time and time consuming. The reasons for not checking pressures are plentiful - it's to hot, to cold, I have to get the kids to school, my husband does it, it's raining, the tire is filthy, it looks ok. All excuses come down to one thing, it's a pain in the neck to check tires. Tire Pressure Monitoring Systems by definition are electronic systems designed to monitor the air pressure inside of any pneumatic tire. PressurePro makes checking tire pressure easy as it gives you all of your pressures at the touch of a button. Automatic alerts trigger to warn you when tires drop pressure by 12.5% and again at 25%, lighting up the position, showing you the exact pressure and audibly alerting you. The same happens at a high pressure point that you can select based on your preferences. With automatic alerts and pressures available from the convenience of your cab 24/7, PressurePro makes keeping proper pressure as easy as the touch of a button.
Q: How does PressureProTM TPM Systems and PressureProTM TPMS technology different from other companies and products that provide TPMS products?
A: PressurePro is a worldwide leader in Tire Pressure Monitoring with over 18 years of experience and dedication to providing and advancing world-class TPMS technology. The winner of the prestigious Frost & Sullivan Best Practice Award, PressurePro is known for its durability, reliability and accuracy as well as its ease of installation and simplicity of use. PressurePro reports new pressure updates every 5 minutes, twice as often as any other product, and provides monitoring for drivers of all types of vehicles from OTR trucks to personal vehicles. With RS232, J1708 and J1939 capabilities standard on every PressurePro product, we provide numerous advanced options from remote monitoring to complete integration with leading telematics providers. PressurePro is the also the only TPMS provider that provides fully automatic "Drop & Hook" applications. Partnering with some of the worlds leading companies such as GE, Microchip and Lectronix, PressurePro continues to be a leader in the advancement of TPMS technology. What's more, PressurePro is proud to be the only TPMS product designed, developed and manufactured in the USA.
Q: In such a tight economy, especially for the transportation industry, how can drivers (from individuals to fleets) justify an investment in PressureProTM TPMS?
A: PressurePro is the exact tool needed by fleets and others in these challenging economic times. With an average Return on Investment of 8 to 10 months, PressurePro TPMS provides greater efficiencies and significant savings with improved fuel efficiency, extended tire life, decreased maintenance costs, reduced vehicle downtime and for many more years after the original purchase. Additionally, PressurePro provides fleets with opportunities to capitalize on new "green" initiatives (such as Carbon Trading) as well as potential insurance savings. Recently programs, from grants to tax breaks, have been put in place to assist companies in outfitting their fleets with 'greening' equipment. Simply put, in tight times like these, PressurePro can provide greater safety and savings, benefits all fleets and drivers are looking for.
Q: What types of vehicles benefit from running TPMS?
A: From tractor/trailer fleets, Construction and Heavy Duty Equipment, delivery vans, emergency vehicles, SUV's, auto's and motorcycles, TPMS is critical and a key to adding safety and savings for EVERY type of vehicle utilizing pneumatic tires.
Vanessa Zaroor
Director of Marketing
Advantage PressurePro
205 West Wall Street
Harrisonville, MO 64701
ph: 816-887-3505
fx: 816-887-3705
email: vzaroor@advantagepressurepro.com
online:
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Crude Prices Are Low So Why Does The Cost Of Gas Keep Going Up?
Gas prices are up approximately 22% since December 30, 2008. (Don't we all wish we could say the same about the stock market)? So why is this when Crude prices have basically remained flat over the last 2 months? Refiners have cut production of gas. The average utilization for February was 81.5%, a 17 year low. Think of it this way, if you're losing money on something and you're producing at 90% or higher, you're going to cut back. That is what the refiners have done to be able to make money. Diesel fuel, being basically a bi-product of a barrel of crude, and gas has continued to get lower over the last 20 weeks as it should be. When you consider that at one point in time in the early winter diesel was almost a dollar more a gallon than gas.
With the refiners operating at such low production rates you would think this would be the best time to start upgrading our anemic refining and distribution system. Of course that won't be happening because profits are down at most major oil companies or anything associated with oil since the price started to sink in late July.
There are real problems when the global economy turns around. When things are working properly supply and demand are tight. Our U.S. distribution and refining system is old and outdated. We have way too many boutique fuels in the market places. We need to streamline the number of fuels the same way GM needs to streamline the number of different brands they sell.
We all will be able to enjoy reasonable gas and diesel prices for the next 6-9 months, maybe a little longer but I wouldn't recommend to anyone to get sloppy on your conservation plans and things you learn when gas was at $4.00 and diesel was at $5.00. Those prices might not be here tomorrow but they will be back, it's just a matter of time. |
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Why Try Harder?
We All Are In This Together!
We all know it's very easy to be lazy about Going Green. Who wants to have to separate cans, plastic bottles, paper and glass from the rest of the trash? The reality is probably nobody, but in actuality, we all need to do more. Laziness, on this topic, is not an option. We all know what we have done to the environment over the last 50 years. It's not a good thing and a lot of it was people just being uneducated about being Green.
Let's bullet points some ideas that day- to-day we can do:
- Turn the lights off. At home, in your office building. If no one is there turnoff the lights and other energy consuming devices, just unplug them.
- Use fluorescent light bulbs. They use 75% less energy than regular light bulbs. Just dispose of them properly.
- Use low-flow shower heads and toilets. Don't just let the water run when shaving or brushing your teeth.
- Keep that temperature set correctly. Make your office or home temperature a little cooler in winter and warmer in summer.
- Buy Energy Star products, computers, copiers, refrigerators, these products can save 5-60% of the energy of their non Energy Star counterparts
- Look for opportunities to buy more environmentally friendly products. They might costs a little more but they save on raw materials in the long run.
- Make sure your shops and homes are using environmentally friendly detergents & cleaners.
These are just a few things you can do. At work, we know that these are difficult economic times. Almost all of these items above will save you a lot of money. Set up a task committee to focus on what your company can do better. At home, do the same with the family. Ask what can we do better? Each of us makes a difference. It is your choice whether that difference is a positive or negative one. Either way, its important to remember, if you make the wrong choice you're not only hurting yourself but the entire world's population.
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