Comments on: How you can respond to crazy! http://www.texasstartupblog.com/2006/09/20/how-you-can-respond-to-crazy/ Spurring innovation and entrepreneurship. Wed, 17 Mar 2010 05:32:51 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Jackson http://www.texasstartupblog.com/2006/09/20/how-you-can-respond-to-crazy/#comment-40381 Jackson Fri, 29 Sep 2006 00:22:33 +0000 http://texasvc.weblogswork.com/2006/09/20/how-you-can-respond-to-crazy/#comment-40381 I read a great OPEN LETTER to 7-Eleven about this over at constitutional matters: http://constitutionalmatters.com/thevoice/oped/an-open-letter-to-7-eleven I read a great OPEN LETTER to 7-Eleven about this over at constitutional matters: http://constitutionalmatters.com/thevoice/oped/an-open-letter-to-7-eleven

]]> By: Alexander Muse http://www.texasstartupblog.com/2006/09/20/how-you-can-respond-to-crazy/#comment-39068 Alexander Muse Thu, 21 Sep 2006 22:59:04 +0000 http://texasvc.weblogswork.com/2006/09/20/how-you-can-respond-to-crazy/#comment-39068 Okay, but if everyone stops buying anything from the 14,000 Citgo retail stores Citgo will crumble. Right? Okay, but if everyone stops buying anything from the 14,000 Citgo retail stores Citgo will crumble. Right?

]]> By: Adam Kalsey http://www.texasstartupblog.com/2006/09/20/how-you-can-respond-to-crazy/#comment-39044 Adam Kalsey Thu, 21 Sep 2006 17:11:23 +0000 http://texasvc.weblogswork.com/2006/09/20/how-you-can-respond-to-crazy/#comment-39044 But stations do buy *gas* from competitors' refineries. It doesn't happen often, but if for instance Chevron can serve their customers better and cheaper by buying gas from Citgo, they will. But stations do buy *gas* from competitors’ refineries. It doesn’t happen often, but if for instance Chevron can serve their customers better and cheaper by buying gas from Citgo, they will.

]]> By: Alexander Muse http://www.texasstartupblog.com/2006/09/20/how-you-can-respond-to-crazy/#comment-38952 Alexander Muse Thu, 21 Sep 2006 03:34:02 +0000 http://texasvc.weblogswork.com/2006/09/20/how-you-can-respond-to-crazy/#comment-38952 I agree that gas is fungible, but refining capacity and retail gasoline sales are not. Exxon competes with Citgo for refinding and retail gasoline. If you buy gas from Exxon and boycott Citgo you will hurt Citgo's bottom line. Venezuela will still sell all of their oil, but Citgo will have a huge financial crisis on their hands (primarily associated with the overhead associated with their retail operations - 14,000 stores not selling gas can blow your company up). I agree that gas is fungible, but refining capacity and retail gasoline sales are not. Exxon competes with Citgo for refinding and retail gasoline. If you buy gas from Exxon and boycott Citgo you will hurt Citgo’s bottom line. Venezuela will still sell all of their oil, but Citgo will have a huge financial crisis on their hands (primarily associated with the overhead associated with their retail operations - 14,000 stores not selling gas can blow your company up).

]]> By: Adam Kalsey http://www.texasstartupblog.com/2006/09/20/how-you-can-respond-to-crazy/#comment-38941 Adam Kalsey Thu, 21 Sep 2006 01:53:48 +0000 http://texasvc.weblogswork.com/2006/09/20/how-you-can-respond-to-crazy/#comment-38941 Boycotting Citgo might make you feel good, but it would do nothing to hurt Venezuela. Gas companies do buy from each other as needed. If you were to take all of Citgo's sales and distribute them to other companies, you'd increase demand at those gas stations without increasing the supply. So prices go up. We're still buying the same amount of gas, but the stations we're buying from don't have any more to sell. They'd have to get extra from somewhere, and that somewhere would likely be Citgo, since they'd suddenly be sitting on lots of inventory. We end up still buying gas from Citgo but in a roundabout manner and paying more for the priveledge. Boycotting Citgo might make you feel good, but it would do nothing to hurt Venezuela.

Gas companies do buy from each other as needed. If you were to take all of Citgo’s sales and distribute them to other companies, you’d increase demand at those gas stations without increasing the supply. So prices go up. We’re still buying the same amount of gas, but the stations we’re buying from don’t have any more to sell. They’d have to get extra from somewhere, and that somewhere would likely be Citgo, since they’d suddenly be sitting on lots of inventory.

We end up still buying gas from Citgo but in a roundabout manner and paying more for the priveledge.

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