Gunpowder Chronicle posted on September 13, 2008 7:00 PM | Rating:
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So now, Jihad Joe Albero, Southwest Delaware's most notorious cyberstalker and general all-around turd-herder, thinks that his intervention alone will help Sam's Club up their fuel supplies. For someone who brags so much about being a smart businessman, he is a magnificent dumbass on understand how real businesses actually work.
As opposed, to say, light bulb condom companies.
It is well known that Sam's Club buys their refined petroleum products on the "spot" market. That is, they by up leftover, unsold products from refineries around the country (although, predominantly along the Gulf Coast). This, combined with the volume they purchase in, allows them to command low wholesale prices. By "cleaning up" spot inventory problems, they reduce inventory storage issues at the refineries, allowing them to run more efficiently.
But what happens when 70% of the refining capacity that Sam's buys from closes down two days before a major storm? Sam's can't get deliveries.
The same thing is happening with Exxon stations, which explains why the Shrewsbury Exxon up here in PA is 20 cents a gallon more than the rutters, and 13 cents more than the Getty. Nearly all of Exxon's refining capacity is around Galveston. Forced shutdowns strangle refined product supplies.
And Jihad Joe, the Delmar Dumbass, can't do squat about that.