9

The

J “Lifeline of the Gasoline Industry, the Independent Gasoline Dealer.” J

CXLVIII Edition November 2011

Gasoline Retailers Association of Florida

214 Stevenage Drive Longwood, Florida 32779

http://www.flagas.com

e mail

407-774-9700 SSDA/NCPR-AT

Pat Moricca President Member Service Station Dealers of America

INDEPENDENT BRANDS

VISIT OUR WEB SITE FOR THE LATEST GASOLINE

INDUSTRY INFORMATION AND BENEFITS

www.flagas.com

Gasoline Retailers Association of Florida is a non-profit association representing Independent Gasoline Retailers, Convenience Stores, Gasoline Service Stations, Repair Shops, Tire Retailers, Truck Stops and Associates throughout Florida. Our goal is to improve the interests of these independent businesses and the motoring public. Cooperation with insurance companies provides benefits for our members. These benefits include money-saving programs for group health, workers' compensation, casualty and property and gasoline tank liability insurance. Benefits also include financing to purchase your gasoline station property and much more.

The problems facing our industry today affect every dealer, no matter how large or small. And, since no one individual could possibly begin to solve these problems alone, it remains that each should joinin a collective effort to protect his/her business investment.

Join the Gasoline Retailers Association of Florida and help in the fight to keep the

Florida Motor Fuel Marketing Practices Act (Below Cost) law.

Make an important investment in your business future for less than $1 a day.

Happy Thanksgiving

Soon the holiday season will be here and the public will be traveling and stopping in gasoline stations across the country. Have the holiday sprit and show a friendly smile and thank you.

ExxonMobil Q3 Results!!!

ExxonMobil's fiscal third-quarter net profit jumped 41 percent compared to the same period last year. ExxonMobil earned $10.33 billion for its latest quarter, compared to $7.35 billion during its 2010 fiscal third quarter. Revenues rose 32 percent during the latest quarter to $125.3 billion.

How North Dakota Became Saudi Arabia

Harold Hamm, discoverer of the Bakken fields of the northern Great Plains, on America's oil future and why OPEC's days are numbered.

Harold Hamm, the Oklahoma-based founder and CEO of Continental Resources, the 14th-largest oil company in America, is a man who thinks big. He came to Washington last month to spread a needed message of economic optimism: With the right set of national energy policies, the United States could be "completely energy independent by the end of the decade. We can be the Saudi Arabia of oil and natural gas in the 21st century."

You'd expect an oilman to make the "drill, baby, drill" pitch. But since 2005 America truly has been in the midst of a revolution in oil and natural gas, which is the nation's fastest-growing manufacturing sector. No one is more responsible for that resurgence than Mr. Hamm. He was the original discoverer of the gigantic and prolific Bakken oil fields of Montana and North Dakota that have already helped move the U.S. into third place among world oil producers.

How much oil does Bakken have? The official estimate of the U.S. Geological Survey a few years ago was between four and five billion barrels. Mr. Hamm disagrees: "No way. We estimate that the entire field, fully developed, in Bakken is 24 billion barrels."

If he's right, that'll double America's proven oil reserves. "Bakken is almost twice as big as the oil reserve in Prudhoe Bay, Alaska," he continues. According to Department of Energy data, North Dakota is on pace to surpass California in oil production in the next few years. Mr. Hamm explains over lunch in Washington, D.C., that the more his company drills, the more oil it finds. Continental Resources has seen its "proved reserves" of oil and natural gas (mostly in North Dakota) skyrocket to 421 million barrels this summer from 118 million barrels in 2006.

"We expect our reserves and production to triple over the next five years. One reason for the renaissance has been OPEC's erosion of market power. "For nearly 50 years in this country nobody looked for oil here and drilling was in steady decline. Every time the domestic industry picked itself up, the Saudis would open the taps and drown us with cheap oil," he recalls. "They had unlimited production capacity, and company after company would go bust."

Today OPEC's market share is falling and no longer dictates the world price. This is huge, Mr. Hamm says. "Finally we have an opportunity to go out and explore for oil and drill without fear of price collapse." When OPEC was at its peak in the 1990s, the U.S. imported about two-thirds of its oil. Now we import less than half of it, and about 40% of what we do import comes from Mexico and Canada. That's why Mr. Hamm thinks North America can achieve oil independence.

He roils at the Interior Department delays of months and sometimes years to get permits for drilling. "These delays kill projects," he says. Even the Securities and Exchange Commission is now tightening the screws on the oil industry, requiring companies like Continental to report their production and federal royalties on thousands of individual leases under the Sarbanes-Oxley accounting rules. "I could go to jail because a local operator misreported the production in the field," he says.

On Keystone XL America Needs Answers & Action

A lot of folks have an interest in pushing the proposed Keystone XL pipeline to a timely completion. That's the $7 billion Trans Canada project that would bring nearly 1.3 million barrels per day of crude oil from Alberta, Canada and N. Dakota to land-locked midwest and east coast refineries, and, to the Gulf of Mexico.
According to TransCanada, the proposed Keystone Gulf Coast Expansion Project is an approximate 1,661 mile, 36-inch crude oil pipeline that would begin at Hardisty, Alberta and extend southeast through Saskatchewan, Montana, S. Dakota and Nebraska. It would incorporate a portion of the Keystone Pipeline (Phase II) through Nebraska and Kansas to serve markets at Cushing, Oklahoma before continuing through Oklahoma to a delivery point near existing terminals in Nederland, TX to serve the Port Arthur, TX marketplace.
As chairman of the House Energy and Commerce Committee, Rep. Fred Upton, representing Michigan's 6th District, is among its most ardent and unequivocal supporters. In a July interview with CNBC he stated: "According to the Department of Energy, this one project will essentially eliminate oil imports from the Middle East. It will create more than 100,000 jobs and strengthen our relationship with a close ally and trading partner. A project like this should be a no-brainer and there's simply no good reason it has been stuck in the State Department's red tape for nearly three years."
The U.S. State Dept. is scheduled to make a decision on the pipeline by Nov. 1. Canada has already approved it.
Rep. Upton also stated that the project would likely help lower gasoline prices and reduces volatility. In that same interview he said: "If we take steps today to safely develop our resources for the future, we can quickly and consistently hold down prices. I think the American people understand supply and demand, and they understand that if we increase the supply of American-made energy, prices will come down. It's as simple as that."
At the same time, the clock is ticking. By accessing Canada's crude oil the U.S. moves closer to its goal of reducing reliance on oil from the Middle East, a goal shared and expressed by every U.S. president since Dwight D. Eisenhower.
If the U.S. State Department does not awaken from three years of indecision and the folks in charge kill the pipeline's development here, China is ready now to finance any engineering necessary to seize the opportunity and bring Canada's energy resources to China.

U.S. Gasoline Demand Drops By 2.9 Percent Compared to 2010

NATIONAL REPORT -- U.S. gasoline demand is dropping. Retail gasoline demand fell last week compared to the same week during 2010, reported Reuters.

Elevated pump prices and fewer people driving due to the current uncertain economic situation were responsible for the demand decline, according to a MaterCard's Inc.'s SpendingPulse report, which was released yesterday.

Demand dropped by 2.9 percent compared to the same week in 2010. However, pump prices increased dramatically, to the tune of 28.6 percent.

The average price of a gallon of gasoline was $3.46, which was 10 cents lower than the previous week last month.

Economic uncertainty wasn't the only reason for declining petroleum demand. According to MasterCard, improved fuel efficiency was another reason.

Reduced gasoline demand last week is definitely not an anomaly. The four-week moving average for demand has fallen for 28 consecutive weeks, SpendingPulse data showed.

MasterCard's Advisors division bases its retail fuel demand data based on aggregate sales using its payment system along with estimates for other payments at the pump including cash and checks.

OPEC cuts oil demand forecast on growth concerns

VIENNA - OPEC slashed its estimate for oil demand this year and said it expected sales to stagnate next year, in a forecast blaming global economic uncertainty for cutting into the world's appetite for crude.

Updating last month's forecast, the 12-nation Organization of the Petroleum Exporting Countries said that it expected demand to be up by nearly 1 million barrels a day this year over last. That projected increase will be 180,000 barrels a day less than its previous estimate, it said.

For next year, OPEC's monthly forecast said that estimated growth in world oil demand will fall to a daily 1.2 million barrels. That would leave the global appetite for crude at just over 88 million barrels a day for 2012.

"Uncertainty in the world economy has dimmed the picture for 2011, particularly in the OECD region," said the monthly report referring to the major industrialized nations. But it added that domestic policies in China and India - the two developing countries traditionally driving demand also are expected to contribute to the downward revision in word demand growth.

The Chinese plan to reduce fuel use, while India's decision to raise retail prices is also "expected to play a major role in dampening oil consumption in the coming year."

OPEC, which produces around a third of the world's crude, said estimated demand for its own product remains unchanged for this year at 29.9 million barrels a day - around 100,000 barrels a day higher than last year.

For next year, however, forecast demand for OPEC oil will stagnate at this year's levels, representing a downward revision of around 100,000 barrels a day, it said.

Prepay Deters Gas Thefts
Convenience stores that require upfront payment have low incidences of stolen gasoline.

TULSA, Okla. – Convenience stores and gasoline stations that let customers fill up before paying have higher incidences of gasoline theft, while drive-offs at prepay pumps are becoming more rare, the Tulsa World reports.

For convenience stores, companies approach the problem in different ways. For example, Kum & Go stores do not require prepayment before filling up because it “represents one of our core values integrity,” said company spokeswoman Catherine Huggins. “For more than 50 years, we have valued the trusting relationships forged with our customers. We firmly believe people are trustworthy.”

Unfortunately, high gasoline prices mean more drive-offs. According to NACS data from 2007, NACS estimated that one out of 3,300 fill-ups was a gasoline theft. Some cities have passed laws requiring prepay pumps.

QuikTrip switched to prepay pumps to reduce the estimated $4 million in yearly losses because of drive-offs, said Mike Thornbrugh, company spokesman. During a two-hour window, one Tulsa-area QuikTrip store had a whopping 21 drive-offs.

Six years ago, when Hurricane Katrina pushed gasoline prices to more than $3 per gallon, retailers that never could have imagined requiring prepay changed their minds. Prepayment dramatically lowered fuel theft. In 2005, drive-offs cost U.S. retailers $300 million; within four years, that number had dropped to $89 million. However, there are drawbacks to prepayment, such as making a “convenience store less convenient,” and encouraging use of debit and credit cards, which have transaction fees.

Maybe it's a sign of the times

The National Crime Prevention Council says it is closely tracking an emerging trend; theft from vehicles at gas stations. NCPC notes similar incidents this year alone in many locations across the country from Sacramento to Miami to Washington DC--Earlier this year a woman in Takoma Park, MD told police she was pumping gas at a W-Express station when a dark-colored 4-door vehicle entered the gas station lot. The suspect pulled up next to the victim’s vehicle, opened the driver’s door and removed property from the front passenger seat. The suspect quickly drove out. But to her amazement, the woman watched as he drove right into the Sunoco Gas Station next to the W Express. The crook pulled up next to a black SUV and removed items unknown.
NCPC says gas stations may be seeing more activity because they provide "a unique setting" that allows thieves to catch their victims by complete surprise — when they are pumping gas or paying their tab inside the station. Most of the time, gas station customers leave their car doors unlocked and items like purses and wallets are often left in plain view. A thief is able to drive up next to the victim's car, open an unlocked door, and grab any valuables within reach. Then, the thief quickly drives off. It happens in a matter of seconds.
Of course, these thefts can be easily prevented if the appropriate precautions are taken. NCPC and the Metropolitan Police Department of the District of Columbia recommends the following tips to prevent citizens from becoming victims of theft at area gas stations.
• Pick stations that are well-lit and have video surveillance cameras at the pump.
• Always remove your keys and lock the doors while you are pumping gas.
• Keep valuables out of plain view in your vehicle and lock the doors even if you are going inside for a moment.
• Pay attention to your surroundings.
• Don’t let your cell phone distract you.
Remember too that if someone takes your purse or wallet you now have to worry about identity theft. To mitigate the damage, photocopy both sides of all credit cards, debit cards, and any other documents that identify you and keep it at home in a secure, hidden place. You will need the bank/credit card phone numbers to notify them as soon as possible.
Please, listen to McGruff, be alert and take a bite out of gas station theft!