We won't stop this effort until National average gas prices for Regular Unleaded are back to $2.00 a gallon or below. Think we're crazy?
Here is why it will work:
Currently fuel prices work like this-
1). Speculator sees issues in the Middle East, crude climbs. Political figure sneezes, crude climbs.
2). Instantly pump prices go up to match Speculators claims (even though the gas at that pump was bought at lower prices, and was already refined weeks before).
3). Consumer buys gas at inflated price thinking they will conserve, and tries to use less overall gas until price "drops"
4). Reserves begin to build as consumers "get by" hoping that prices drop
5). Speculators see reserves build so they slow production, but keep prices high
6). Consumer begins to get "used to" inflated price and tries to maintain their style of living at "new average" price (boiling frog syndrome)
7). Speculators go to bank and deposit large profits, then return to office and "Speculate" some more
8). Once again crude climbs, and again pain is felt at the pump, consumer starts same process over again...
To change this we simply have to create instant Surge in reserves over night. In order to reverse this process we need to be the ones who create the unrest. NOT the Middle East or the Speculator(s). How do we do this? Well as stated on Surge Days, we drive up Reserves and drive down Demands to the point where the commodity that they are importing loses value. We need to reverse the discomfort, creating a soft "sellers market" for crude since demands will be forcibly lowered. It may sound like we are trying to govern by supply and demand when such hasn't worked in the past, but in essence we are doing so, but in a very different way.
By having days of drastic reserve inflations, there will be a reverse Speculation taking place. "Will they have room to store it, will they have to slow refineries, will they have to stop shipments"... all these new conundrums raise their heads in the sea of speculation. If reserves go up by 2-3 million barrels in one day (very easy if 1-2% of U.S. Population participates in these Surge Days) that in theory requires them to slash imports by 2-3 million barrels for that day. The trickle-up effect will impact the importers as they will have to begin to lower their prices to find "surplus buyers" (companies that store crude and resell it when it re-inflates). Then when fuel demand goes back up and subsequently raises fuel prices again their barges will still be kept at bay in the Gulf because instead of buying from them, the crude will be purchased from the "surplus buyers" who bought low and can afford to sell at a very small profit. When the surplus buyers sell their stock of crude, and the demand is again met or exceeded, the cycle begins again, all the while the Middle East is looking for ways to get rid of their oil, and everytime they drop prices "surplus buyers" by low and sell slightly high again.
Using this system among other conservation techniques, we can soon see fuel prices drop below $2.00 per gallon, and as a result our mission will be complete!
