Showing posts with label high oil prices. Show all posts
Showing posts with label high oil prices. Show all posts

11 October 2008

Money, Politics, and the American Way
I started reading a Clive Cussler book the other day. I would've sworn it was a brand new book because of how current the issues involved were such as global warming, financial scares, and oil price spikes and shortages. Turns out it was written in the seventies. So was this clip I found. I am just about to stick my head out the window- too bad I live in the middle of nowhere and only Polar, the chickens, and nearby squirrels would hear...
The bailout, from minute one, seemed to me to be a horrible plan. Like putting a bandaid to try to heal a severed wound. I compared it to my business because after all, it is only a bunch of zeroes that separate us from them. If my business is being poorly run and we overspend who has to pony up? I do. If times turn sour, and business is down who pays? We do. I've been at that point more times than I care to count with my little rinky dink biz. But, I assure you it is my bank account being drained, or my signature on the loan paperwork for a bridge loan. I can't even imagine asking the government to give me money because I screwed up, or didn't have a big enough egg stashed away for poor times. I wouldn't even know who to ask, but I am sure whoever got my call would die laughing! It's capitalism. That's how it works, and that is why it works. If you screw up that badly, you fail!
The election is looming and we will have a historic first regardless of who wins. Everyone throws (or lately spits) Republican and Democrat as if they are four letter words, and to admit one or the other is likening yourself to the Nazi party or Communistic regime. I don't play that. I vote for the person, not the party.
The first president I really loved was Reagan. I would say that he is my favorite- in my lifetime so far. I didn't mind Bush I, or Clinton. I abhor Bush Jr. Hate him. Hate that he lead us to war for oil while ignoring viable alternatives in this country. btw-I don't think we should pull out and abandon the people in those countries we devastated, either.
This time around it is Obama that scares the living crud out of me. We are a hair's breath away from socializing our system, and with him I am afraid that would only be the beginning. I like capitalism. I like getting compensated for a job well done. I understand that I won't get paid if I don't work, or if I screw it up. The whole tax the rich to give to the poor is horrifying. Maybe I am a little biased as I just finished Atlas Shrugged, but it is hard to see it playing out any other way. There are moments when I remind myself he hasn't actually done anything! He could turn out to be a puppet that gets pushed around by those in office.
Then there is the fact I think things could still be going South. Whoever gets elected may be branded with the failings through no fault of his own, so who should that be??
John McCain is nothing like Bush. To digress, I hate Bush. I really like John McCain- and I think Sarah Palin is just awesome. Living in NH I am among friends with this opinion, although the hardcore conservatives don't think he is Republican enough. Ms. Palin saved the day there. I like that he has been working to cut pork, even though is part of the senate. In our business (industry) we learned first hand how much money and time it takes to finally get a bill on the floor, Then to have to bend over and take it while they go back and forth getting their special earmarks and concessions put in. Then you have to do it again for funding. I think this is a huge problem in our governmental system. I also like his health care policies. Being a small business I like his incentives (or should I say lack of additional taxes) that will help (or at least not hurt) keep my business going in good times and bad. I like his practical approach to energy. He was one of the first to support a biomass initiative. See above for how it turned out, but the fact is he helped write it and get it passed. I find it absolutely embarassing that we exported more biomass than we used domestically last year. Export our cheap biomass to Europe,and import more oil from the Middle East. We have about 1.4 billion tons of biomass waste annually in this country yet we used 1.3 million tons and exported 1.6 million. Disgusting. Actually, I think either candidate may do o.k. on this front but McCain HAS been doing something, and I think has the experience and knowledge to make it happen NOW!
I know politics is often a touchy subject, and I am sure there are multiple people who will take offense somehow to what I have said. It was more written for me. I would like to look back at my frame of mind before the election.
Happy Thanksgiving to all Canadian friends!

12 November 2007

Hot, Cold, Hot...

Little rant.
((((Sigh))))This is our business life. Things are either off the charts, or dead as a doornail. We have years where we are booked out three months in the fall, backordered on stoves for months. The next year you stare at the door and wonder what the hell happened to all those people who were screaming because you couldn't get them squeezed into your schedule in a couple of days as soon as it snows and you wonder if you'll make it through the year??
Where are all the people who swore that pellet or wood was the answer not just because it's cheap (I hate that word), but because it the right thing to do? These people shut their stoves off in droves when oil prices are low. Not lower than pellet in many cases, but hey if you don't have to get your lazy ass off the couch to fill the stove once a day it's worth a few extra bucks right?
Last year was one of the worst for our industry. What people don't realize is they created a very dangerous situation by having such on again, off again support for alternative fuels. There were many major players, and little guys, that went out of business or had to sell to the highest bidder, are carrying large loans and/or are on the brink of collapse because of this. One of the worst parts is that every time we lose users here- even for one heating season- that fuel is LOST. Sold to Europe, sold to China, sold to so many others who know the value of the fuel. We now export more pellet fuel than we use in this country. Good luck getting it back. It won't happen. I have been to a few world pellet conferences in Europe and they spend a great deal of effort and money to woo the US and Canadian manufacturers. Their standards are lower, they pay in advance, and they buy very large quantities.
When the oil prices are out of sight the number of people that use their pellet stoves goes up by the tens of thousands. Well in excess of 100,000 extra stoves were estimated for the 2005 heating season. The average house uses three tons in a heating season. So these extra users can add an extra demand equal to as much as a third of the annual pellet production in this country in an instant. (AND that doesn't account for the fact that we now ship more pellet fuel to Europe than we do domestically.) This creates spot shortages, DUH! The best JIT system in the world couldn't manufacturer 30% of their annual production in a week or two...
The industry took the area shortages in the Northeast very seriously in 2005. They made deals with West coast manufacturers (who had excess that year) to ensure that there was ample supply in New England. Manufacturers, and dealers spent hundreds of thousands of dollars, and more on infrastructure, and extra stocking space to buy the fuel early. Then our fair weather friends did not turn on their stoves. They did not buy fuel. The Year of the Cricket, where many fell or were severely crippled.
This year the oil prices are back where they should be and suddenly we are back to a packed store of people wanting this yesterday wondering why we have so few employees, why we are sold out of many stoves, and why it will take weeks for us to get out to install a stove. Pellets are holding for now-(knock on wood)...
I have learned to be greatful for the times when I cannot get the product and have a backlog. Even though customers are screaming at us and holding us responsible at least the fuel is being used and therefore preserved for our use- this year at least. ((((Sigh))))