| Greetings!
Ho! Ho! Ho! We are down to 24 days and counting until Christmas and New Years right after that. Certainly we do not forget Hanukah or the other holiday spirits that are celebrated. It's the time of year that some companies work all year long for, to put them in the Black for the year. Let's hope your there already or the season will get you there. In Fuel Management it has been a crazy year, but hey when is fuel planning and fuel consulting not?! We started the year with crude oil in the low $30 a barrel, gasoline in some states under $1.65 a gallon and diesel fuel below $2.00 in other states. Now, well crude has more than doubled, national average for gas prices is $2.629 and the national average for diesel fuel is $2.817.
The new year is shaping up to be more intersting than 2009. We appreciate your readership and wish all of you, your families, your companies a safe and merry holiday season, and a very merry new year.
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
With unsteady fuel prices it's no wonder that fuel theft is rising and not all of it is from an outside thief. Many of the fuel thefts are in house thru managers, drivers and other company employees. Not preventing fuel theft could lead to hundreds or thousands of dollars in loss. Some preventative measures are below:
*Anti Siphon Devices work by closing tightly when negative draining occurs
*Fuel Management, Sokolis Group will track transactions and will monitor and question any uncertain dealings
*Locks, simple locks gates that protect your fleet and on site fueling tanks, thieves will be more likely to move on to an easier target.
*Locking gas caps are also a great theft deterrent
*Using fleet fuel cards to track a drivers location and fueling transactions.
Let Sokolis Group get fuel management and fuel planning off your plate, that's two birds with one stone. |
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DOE Prices
as of 11/30/2009
CenAtl = $2.900
LwrAtl = $2.738
Midwst = $2.748
GulfCst = $2.724
RkyMt = $2.817
WCst = $2.888
CA = $2.948 |
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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.
Maverick Energy
Natural Gas & Fuel Hedge Programs
Philabundance
Non-profit company, helping to feed people in need
FDR
CarbonFund
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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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As a company that trys to do the right thing when it comes to the environment, we like what this new fuel card has to offer. Take a look at it, it might be right for your company.
877-360-FUEL (3835) | |
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Only Happens in Fuel Management
As we approach the Christmas season and New Year, it's time for us to look at where the fuel market is and how it could affect your fuel management program. There are clearly mixed signs in the fuel market place. Let us look at last Monday and the craziness in the fuel market place. The day starts off with Iran going to hold on to its uranium, which could allow them to continue to make nuclear weapons, which they agreed a few weeks back that they weren't going to do. The fleet fuel market shoots up almost $1 for crude oil immediately. Then comes the news about 3 hours later that the Housing market for re-sales rose 10.1 percent, a sign of economic recovery which is good, but bad because there will be more need for fuel, so prices go up another $1 for crude oil. Within 1 hour from there the U.S. dollar is taking a beating, the stock market is up 175 points with all 30 stocks in the Dow Jones up. Crude oil again gains another $1. Fast forward 4 more hours with a bunch of fuel being sold off and at the end of the day it was crude up about 30 cents, gas prices down less than a penny and heating oil (diesel fuel) basically even. Wow.
Well, most view the signs as positives toward stagnant fleet fuel prices or possibly lower fuel prices. Let's take a look at what is going on with fuel inventory management across the world:
· U.S. inventories for gasoline, heating oil (diesel fuel for the fleet management industry) and crude oil are still all close to record high inventory levels. Some weeks we see these fuel inventories dip and then the very next week they come racing back. One thing everyone should be able to agree on is that fuel inventories have been high and don't look like they will crash anytime soon.
· The U.S. Dollar is basically at or around a 15 month low compared against other major world currencies. That is not a good thing since fuel is traded in U.S. dollars allowing Yens and Euros to buy more fuel with less and a safe harbor for some investors to put some money away as a natural hedge against the U.S. dollar.
· Floating storage, yes crude oil sitting in ships out at sea. The floating storage rate has risen to over 90.3 million barrels of crude oil. This exceeds the daily world usage and is the first time in recent years that there is more oil floating than is used on a daily basis.
· Unemployment rates hit 10.2%. The first time double digit unemployment has been reached in 26 years. That brings you back to the early 1980's and the Reagan Administration's first term.
· Temporary workers increased to 44,000 showing signs that companies have pushed the envelope with the staff they have and are at or near maximum production. If history holds true, temporary workers in these types of economies turn into new full time employees. Certainly 44,000 are not going to touch the 10.2% very much but it is a positive sign.
· China's fuel imports are at it's second highest level of crude oil in October.
· Demand forecast for fuel by the International Energy Agency (IEA) reports that the fourth quarter will be the first increase in over a year that daily demand numbers will increase. Their projection is up slightly to 86.2 million barrels daily in world oil usage.
See it's a mixed bag. The underlying story to all of this in my mind is that crude oil prices are currently over priced by at least fifteen dollars a barrel. There used to be an expression called, "war premium" and it still gets used when a new war is about to break out. I believe this fuel market has an, "I'm scared to be short premium" worrying that since the fuel market reacts or over reacts to everything in the news, they worry that things could shoot up on them and pass them by.
Here is something to think about over the next few weeks. To have a good fuel management plan it starts with just a plan. Nobody does anything real well without having a plan, especially in something as crazy as fuel and something as important to your fleet management. Start your fuel planning now; make sure your fleet fuel card programs, your bulk fuel purchasing programs, fleet fuel auditing program, fuel insurance (risk management programs), etc are all in place. If you do these things, your fuel management and fuel planning for 2010 will be ahead of most companies. Good luck. Happy Holidays!
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"I am very impressed with the professionalism, knowledge and sense of urgency of the entire Sokolis team. The level of reporting is incredible and is allowing us to manage margins down a critical component of operational expense."
Anthony Ciccone
Vice President of Member Service
AAA Allied Group, Inc. |
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SOKOLIS GROUP-WHO WE ARE:
FUEL MANAGEMENT & FUEL CONSULTING
Sokolis Group is a nationwide outsourced fuel management and fuel consulting company dedicated to assisting our fuel management & fuel consulting clients in realizing the most value for their fuel dollars spent.
Our "Proactive Entrepreneurial Style" of fuel management along with out Best in Class fuel management technology allow our fleet fueling clients:
- Fuel Discounts & Fuel Rebates
- Strategic Fuel Planning Projects, to improve fuel process and fuel savings
- Checks & Balances to ensure fuel pricing is accurate and correct
- Fuel management enhances visibility in true fuel cost for fleet management
- Extension of our fleet fuel clients, fuel management team without the overhead
Sokolis Group accomplishes these goals with our systematic approach that delivers more value than most companies are able to provide internally because fuel management & fuel consulting is our business. Our fuel consulting experts negotiate more fuel deals in a week, then most companies will in a lifetime.
Let us help improve your bottom line.
Are you fueling good?
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Oil Speculation
How the FTC Ruling will make it a Fair Game
As a fuel management company involved with providers and the consumers of fuel, we are frequently asked for projections on fuel prices. Important changes are being made in legislation that will allow for greater transparency in fuel markets with the expectation that will reduce some price volatility. Even the direction crude pricing will move is up for debate with several mulit-dollar swings occurring in unprecedented short periods. The fundamental concepts of supply and demand have been materially affected as oil has become a key traded commodity outside the core producer/refiner/consumer relationship. Because this concerns our customers, we are providing the following article from The Trucker that will shed some light on this issue and explain what the FTC Rule means:
In an effort to better control what havae become widly fluctuating oil prices, the Federal Trade Commission (FTC) has issued a Final Rule prohibiting market manipulation in the petroleum industry.
Effective November 4, 2009, the Rule (issued under the Energy Independence and Security Act of 2007, pursuant to a provision included by Sen. Maria Cantwell, D-Wash.) bans any intentionally fraudulent or deceitful act, practice, or course of business, including the omission of material information, that is likely to distort petroleum markets.
The stated purpose of the act is "to move the United States toward greater energy independence and security, to increase the production of clean renewable fuels, to protect consumers, to increase the effciency of products, buildings, and vehicles, to promote research on and deploy greenhouse gas capture and storage options, and to improve the energy performance of the federal government, and for other purposes."
"This new Rule will allow us to crack down on fraud and manipulation that can drive up prices at the pump." FTC Chairman Jon Leibowitz said. "We will police the oil markets-and if find companies that are manipulating the markets, we will go after them."
Specific examples of such conduct include false public announcements of planned pricing or output decisions, false statistical or data reporting and wash sales intended to disguise the actual liquidty of a market or the price of a particular product.
Anyone violating the Rule faces civil penalties of up to $1 million per violation per day, in additional to any relief available to the Commission under the FTC Act.
Anyone following the oil market during the past few years knows even the slightest speculation or anticipation of economic fluctuations sends gas prices spiraling in response.
Recently, the Associated Press issued a report that the price of fuel had risen based on anticipated retail sales. Two hours later a report was issued, stating the price had fallen based on the new speculation of the same reports.
Copies of the Federal Register notice are available from the FTC's website.
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'Imagine all the people living life in peace. You may say I'm a dreamer, but I'm not the only one. I hope someday you'll join us, and the world will be as one.
-John Lennon
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