Off Road Diesel?

[Peter 315]

It comes down but SLOW if the gas station just filled the tanks, They wont drop the price fast and lose money

 

[finn1]

Probably a better payback getting a job flipping burgers at McDonald’s if you consider the storage equipment, pump cost, loss of storage room in your shop, and time spent. To say nothing about the mess and chance of the stored fuel going bad.

Besides, it’s tough to time the market so you get the bottom price.

 

[crazyal]

I use a 55 gallon drum. The Fillrite pump will screw right into it and they aren't too heavy to move around. I have a dolly made out of wood with casters that allows me to roll it around the garage.

 

[Diggin It]

Umm, cool, but are you planning on taking advantage of potentially much lower prices to stock up for the future?

 

[4570Man]

Umm, cool, but are you planning on taking advantage of potentially much lower prices to stock up for the future?

Diesel hasn’t changed a lot here. I plan on filing up all my gas vehicles though.

 

[countrybumpkin]

Umm, cool, but are you planning on taking advantage of potentially much lower prices to stock up for the future?

If that’s why your trying to store some fuel so you can play a little bit on your tractor, you’re going to have a lot more to worry about if it were to get to that point.

 

[sodamo]

My setup

 

[BrokenTrack]

Let's do some calculations.

First, we have to estimate the bottom price? Let's be stupid optimistic and say $2 p/gallon savings.

Second, how much fuel do we want to hoard? Let's be stupid and say 500 gallons. So we are assuming we are going to save $1000. It might take us two years to recoup the investment? That's assuming 250 gallons per year??

Third, how much will it cost us to purchase the necessary equipment to do this venture? Probably going to pay $500 for a storage tank. Another $100 to rig it up with a hand pump? So we invested $600.

Fourth, our potential profit is $400. It will take us 24 months to realize this profit. So for the next 24 months we will potentially save $17 p/month.

Fifth, would we borrow the money to do this venture? Probably not because the payback is so low. So why would we do it?

They call that: Paralysis by Analysis; a person talking themselves right out of doing something. Then they break it down into tiny numbers to make it seem like it is insignificant savings. It gets kind of silly because if a person saw a $20 bill on the ground, who would not pick it up? Yet, they will deduce reasons why saving $17 a month is not worth it? Really? if you found (20) $20 bills on the ground you would not pick any of them up?

My local school board does this: takes 1.5 million in potential savings, divides that number by the number of tax payers and says, saving them $15 per year does not mean anything. Really, what part of saving 1.5 million did they miss?

Your deductions are amiss because it need not be that complicated because a person can figure out how to lower their initial costs. A person does not need an expensive new tank for instance. Here in Maine you can get used 275 gallon oil tanks for almost nothing since so many people are going to mini-splits. Just tee the two tanks together and you have 550 gallons of diesel fuel in storage.

I am all set up because I have been getting that Genset set up, so I will do this.

I can see no reason why storing something a person will eventually use is a bad idea. It would be like heating with firewood and telling someone to go out and cut dead trees as they needed them instead of having a year or two of firewood in storage.

 

[finn1]

Sounds a lot like hoarding toilet paper to me. The price might go up so I should fill my closet with the stuff.

Where does it end?

On the other hand, maybe I should have filled the closet with TP.

 

[Diggin It]

If fuel that has been in the $2.50/g range drops to $1.50 or less, why would you not buy as much as you can safely store knowing it will go to back to $2.50 or higher?

 

[Peter 315]

I will if it gets that low, I'm ready for a fill up about 375 gallons...

 

[TnAndy]

If fuel that has been in the $2.50/g range drops to $1.50 or less, why would you not buy as much as you can safely store knowing it will go to back to $2.50 or higher?

I'd agree.....except it will likely overshoot much higher down the road.

The purpose of the current Russia-Saudi price war is to drive American shale producers over a cliff. The reduced use of fuels by many industries (imagine how much the use of jet fuel has dropped) combined with the price war combined with the fact many of the shale producers have only stayed in business due to debt financing is going to leave a big hole in production from the US side of the equation.

IF the virus or financial contagion spills over into the refinery aspect, the future price of fuel could well go way up.

AND there is the almost predictable reaction of govt to reduced use.....raise tax on it to keep revenue nearly the same.....God forbid they should have to get by on less.

AND from the prepper point of view (which is how I look at a lot of the world), if you hold it, you own it (or at least have a better change at owning it )

So when it hits 1.50/gal or there about, yeah, I have an extra 500 gal tank I'm gonna call the Co-op and have them fill it. I'll throw some biocide and a gallon of PRI-D in the tank and let it sit. Money in the bank, so to speak.

 

[ovrszd]

They call that: Paralysis by Analysis; a person talking themselves right out of doing something. Then they break it down into tiny numbers to make it seem like it is insignificant savings. It gets kind of silly because if a person saw a $20 bill on the ground, who would not pick it up? Yet, they will deduce reasons why saving $17 a month is not worth it? Really? if you found (20) $20 bills on the ground you would not pick any of them up?

My local school board does this: takes 1.5 million in potential savings, divides that number by the number of tax payers and says, saving them $15 per year does not mean anything. Really, what part of saving 1.5 million did they miss?

Your deductions are amiss because it need not be that complicated because a person can figure out how to lower their initial costs. A person does not need an expensive new tank for instance. Here in Maine you can get used 275 gallon oil tanks for almost nothing since so many people are going to mini-splits. Just tee the two tanks together and you have 550 gallons of diesel fuel in storage.

I am all set up because I have been getting that Genset set up, so I will do this.

I can see no reason why storing something a person will eventually use is a bad idea. It would be like heating with firewood and telling someone to go out and cut dead trees as they needed them instead of having a year or two of firewood in storage.

So how much diesel do you have in storage?

 

[ovrszd]

If fuel that has been in the $2.50/g range drops to $1.50 or less, why would you not buy as much as you can safely store knowing it will go to back to $2.50 or higher?

I agree. You should do that within financial reason. That's why I added all the financial variables. They need to be considered.

 

[Diggin It]

Anybody seeing any drops yet?

 

[Peter 315]

Anybody seeing any drops yet?

Home heating oil 1.65 today filled the house .

 

[Cougsfan]

The price of gas and/or diesel hasn't changed a cent in our location since the price per barrel dropped through the floor.

 

[BrokenTrack]

So how much diesel do you have in storage?

Right now, (5) 275 gallon tanks with all of them just about full.

I have a PTO generator, so I like to have plenty of capacity. The power does not go out a lot here, but when it does, it can be for days, so I like to have plenty of fuel in reserve. (At 1.5 gallons per hour, a full 275 gallon tank will only give me 12 days of power).

 

[Diggin It]

Bulk supplier just quoted me $1.64 gallon, delivered. Wonder what it will be next week?

 

[Peter 315]

Bulk supplier just quoted me $1.64 gallon, delivered. Wonder what it will be next week?

Cheaper I would think , Just think of how much fuel and gas not being used....