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2967Re: Fwd: FW: Gas War-It is worth a try. Please read!

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  • Richard and Connie Guinn
    May 4, 2006

      Here is what the famous "Urban Legends" website
      (snopes.com) says about the gas war idea:

      "Origins: This year's litany of complaints about gasoline prices
      is a re-run of the same program from years past: Gasoline prices in
      the USA are too high; gasoline is a unique commodity whose price
      isn't subject to the usual market forces of supply and demand; OPEC
      and greedy American oil companies secretly manipulate the market to
      keep prices artificially high; and a simple boycott of a couple of
      brands of gasoline will rectify all

      Oil companies can manipulate their prices somewhat by controlling
      how much gasoline they produce and where they sell it, but they
      can't alter the basics of supply and demand: prices go down when
      people buy less of a good, prices go up when people buy more of a
      good, and prices go way up when demand outstrips available supply.
      The "gas out" schemes that propose to alter the demand side of the
      equation by shunning one or two specific brands of gasoline for a
      while won't work, however, because they're based on the
      misconception that an oil company's only outlet for gasoline is its
      own branded service stations. That isn't the case: gasoline is a
      fungible commodity, so if one oil company's product isn't being
      bought up in one particular market or outlet, it will simply sell
      its output to (or through) other outlets:
      Economics Prof. Pat Welch of St. Louis University says any boycott
      of "bad guy" gasoline in favor of "good guy" brands would have some
      unintended (and unhappy) results.

      . . . Welch says the law of supply and demand is set in stone. "To
      meet the sudden demand," he says, "the good guys would have to buy
      gasoline wholesale from the bad guys, who are suddenly stuck with
      unwanted gasoline."

      So motorists would end up . . . paying more for it, because they'd
      be buying it at fewer stations.

      And yes, oil companies do buy and sell from one another. Mike Right
      of AAA Missouri says, "If a company has a station that can be served
      more economically by a competitor's refinery, they'll do it."

      Right adds, "In some cases, gasoline retailers have no refinery at
      all. Some convenience-store chains sell a lot of gasoline — and buy
      it all from somebody else's refinery."
      A boycott of a couple of brands of gasoline won't result in lower
      overall prices. Prices at all the non-boycotted outlets would rise
      due to the temporarily limited supply and increased demand, making
      the original prices look cheap by comparison. The shunned outlets
      could then make a killing by offering gasoline at its "normal"
      (i.e., pre-boycott) price or by selling off their output to the non-
      boycotted companies, who will need the extra supply to meet demand.
      The only person who really gets hurt in this proposed scheme is the
      service station operator, who has almost no control over the price
      of gasoline.

      The only practical way of reducing gasoline prices is through the
      straightforward means of buying less gasoline, not through a simple
      and painless scheme of just shifting where we buy it. The
      inconvenience of driving less is a hardship too many people
      apparently aren't willing to endure, however."

      This being said, however, you should also know that
      there is a town in the state of Texas whose Mayor
      has decided that the entire town should participate
      in a ban on Exxon/Mobil gas until the price lowers.
      He has made this official.

      So, you decide.

      -- In Myotubular_Myopathy@yahoogroups.com, connie guinn
      <kookla_g@...> wrote:
      > GAS WAR - an idea that WILL work
      > This was originally sent by a retired Coca Cola executive. It
      came from one of his engineer buddies who retired from Halliburton.
      It's worth your consideration.
      > Join the resistance!!!! I hear we are going to hit close to
      $4.00 a gallon by next summer and it might go higher!! Want gasoline
      prices to come down? We need to take some intelligent, united
      > Phillip Hollsworth offered this good idea. This makes MUCH MORE
      SENSE than the "don't buy gas on a certain day" campaign that was
      going around last April or May!
      > The oil companies just laughed at that because they knew we
      wouldn't continue to "hurt" ourselves by refusing to buy gas. It was
      more of an inconvenience to us than it was a problem for them. BUT,
      whoever thought of this idea, has come up with a plan that can
      really work. Please read on and join with us!
      > By now you're probably thinking gasoline priced at about $1.50
      is super cheap. Me too! It is currently $2.79 for regular unleaded
      in my town. Now that the oil companies and the OPEC nations have
      conditioned us to think that the cost of a gallon of gas is CHEAP at
      $1.50 - $1.75, we need to take aggressive action to teach them
      that BUYERS control the marketplace..not sellers. With the price
      of gasoline going up more each day, we consumers need to take
      action. One way we can see the price of gas come down is if we hit
      someone in the pocketbook by not purchasing their gas! And, we can
      do that WITHOUT hurting ourselves.
      > How?
      > Since we all rely on our cars, we can't just stop buying gas.
      But we CAN have an impact on gas prices if we all act together to
      force a price war.
      > Here's the idea: For the rest of this year, DON'T purchase ANY
      gasoline from the two biggest companies(which now are one), EXXON
      and MOBIL. If they are not selling any gas, they will be inclined
      to reduce their
      > prices. If they reduce their prices, the other companies will
      have to follow suit. But to have an impact, we need to reach
      literally millions of Exxon and Mobil gas buyers.
      > It's really simple to do! Now, don't wimp out on me at this
      point...keep reading and I'll explain how simple it is to reach
      millions of people!!
      > I am sending this note to 30 people. If each of us
      > send it to at least ten more (30 x 10 = 300) ... and those 300
      send it to at least ten more (300 x 10 = 3,000)...and so on, by the
      time the message reaches the sixth group of people, we will have
      reached over THREE MILLION consumers.
      > If those three million get excited and pass this on to ten
      friends each, then 30 million people will have been contacted! If
      it goes one level further, you guessed it..... THREE HUNDRED MILLION
      PEOPLE!!! Again, all you have to do is send
      this to 10 people.
      > That's all! If you don't understand how we can reach 300
      million and all you have to do is send this to 10 people....
      > Well, let's face it, you just aren't a mathematician.
      > But I am. So trust me on this one.) :-)
      > How long would all that take? If each of us sends
      > this e-mail out to ten more people within one day of
      > receipt, all 300 MILLION people could conceivably be
      > contacted within the next 8 days!!! I'll bet you didn't think you
      and I had that much potential, did you! Acting together we can
      make a difference.
      > If this makes sense to you, please pass this message on. I
      suggest that we not buy from EXXON/MOBIL UNTIL THEY LOWER THEIR
      > ---------------------------------
      > ---------------------------------
      > How low will we go? Check out Yahoo! Messenger's low PC-to-Phone
      call rates.
      > ---------------------------------
      > Yahoo! Mail goes everywhere you do. Get it on your phone.
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