Posted by Wardner on September 18, 2012 at 16:25:13 from (4.154.253.189):
In Reply to: home made diesel posted by ken house on September 18, 2012 at 10:30:38:
The key to personal fuel security is storage and conservation. This only works if you are a moderate user.
Prior to my retirement, when I was using 15,000 gallons a year, I was forced to pay market prices. After retirement, I set about to collect unwanted heating oil from home owners who had switched to natgas. Got my leads from Craigslist. When I reached 7000 gallons, I stopped. I figure I have enough to last me for the rest of my life. I only use it for Diesel engine fuel. I heat with wood.
If you haven't got the time or the tanks, something similar can be done with oil futures or cheap out-of-the money long term options. Ya, there will be costs using that strategy but there are also costs in collecting and storing actual fuel. Bear in mind that nowadays nobody gives away unwanted fuel. It will have some discounted value. One should also consider the liabilities incurred with spilled fuel.
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