The Forty Knot Rule

Mariners have an age old rule known as the forty knot rule. It states that when a storm is approaching, and you are beginning to feel it's effects, you need to steer your vessel in a direction that keeps you out of winds higher than 40 knots. The idea is to steer your vessel away from the storm, and away from winds of 40 knots or more. The reason is-in winds over 40 knots, you are not going to be able to steer your vessel out of harms way and the full brunt of the storm-seas build up too high and the situation will reach a point where there is not much you can do but just to try to hold your ground and not get pummeled.

What does the 40 knot rule have to do with our current fuel situation? It reminds me of a conversation I had with a top energy analyst just over two years ago. This was a a pivotal time in history because a major change to our gasoline supply was occurring-the phasing out of the gasoline blending component MTBE. This was a time when good decisions needed to be made about our near future transportation fuel needs. My question to him was-"why is it that people who are making the decisions about our fuel future and have control over the industry, the ones that should know what is going on with gasoline and diesel fuel issues-don't?
His answer was-"because, they are not experts."

The topic of conversation then turned to the recent Energy Information Administration report titled; Eliminating MTBE in Gasoline in 2006 by Joanne Shore, which warned of the situation we are now experiencing with transportation fuel-tremendous shrinkage of the gasoline pool with the removal of MTBE and the negative effects of integrating ethanol into the gasoline stream. Rebuttal from the ethanol industry spin doctors, the RFA , was laced with the same worn out stories we had been hearing about for several years- now, ethanol was the new flag for national security, energy independence, and patriotism-ethanol was the magic intoxicating elixir that was going to cure all our ills. Remember "Think Green, Go Yellow"...ect?.
Our conversation quickly reached a point of mutual agreement that the main issue with gasoline was -how do you replace the tremendous amounts of fuel volume, and octane, that would be lost when MTBE was taken off the market by the oil companies that summer. He went on to say..."when we look at the upcoming gasoline situation...it is a train wreck waiting to happen....we are standing besides the tracks waving the red flag, but it does not look like it is going to slow down. The choice has been made to go with ethanol.

Then, when we look at the future diesel fuel situation...with the switch in demand towards diesel, and the supply constraints due to the new Ultra Low Sulphur Diesel, the diesel fuel situation might make a bad gasoline situation look good. Then, if you take the gasoline situation, and you take the diesel fuel situation, these two separate issues have the potential to merge and morph into a Perfect Storm of instability."

Fuel Guru thinks this is a good analogy, and the current observation is- the markets are experiencing winds at 40 knots or greater right now, and it looks like it is building fast. The public has heard from the self appointed experts for the last two years, and their brainwashing messages about fantasy cures has created a situation that we could easily loose control of in the very near future. The 40 knot rule tells us that now is the time to change our course, and bring a message of reality to the fuels market.

Our fuel fantasy is no longer believable-we are feeling the pain, and positive change needs to happen now.
Read fuelguru.com to understand more.

Gusher of Lies-The Answer

Fuel Guru suggests picking up a copy of Gusher of Lies-The Dangerous Delusions of "Energy Independence" by Robert Brice. In his conclusion, Robert gives the answer the American public needs to know about our current fuel situation-

"America needs to educate itself about the world's biggest enterprise. Every year, the world's residents spend about $5 trillion finding,refining, delivering, and consuming energy. And yet, the the extent of most Americans' energy knowledge goes no further than what can be contained by a snappy sound bite that bashes Saudis or complains that gasoline now costs almost as much as milk. Simply put, energy is too important to the U.S. economy and the world economy for discussions about to devolve into meaningless rhetoric. The U.S. needs to move beyond its current infatuation with government by cliche' and face the reality that we live in an interconnected, interdependent world. When it come to energy, America stands at a crossroads. In one direction is the empty rhetoric of energy independence and the concomitant evils of protectionism and isolationism. In the other direction lies the modern world of engagement, politics, free markets, and the active embrace of globalism and all the complications that come with it."-Bravo!

Fuel Guru and Leading Edge Sciences has been the world leader in promoting consumer education of fuels and lubricants by working to build cooperative and competitive efforts for positive change in the auto and oil industry that will benefit the economy, environment, and bring real change to the consumer and market. Stay tuned!