Crude closes at $136.68 a barrel!

There has been talk of crude climbing to $150 a barrel in future trading on or near July 4th weekend. The official start of family vacations.

With crude trading at record highs (these record highs are being set every day) EVERY DAY. Its no wonder that most families are being squeezed weekly out of the crucial $ that fuel their current lifestyles.

What was affectionally called "sunday cars" that found there way to everyday use are now being retired to Sunday use only. This of course never stops the new money millionaire who buy every thing that fancies them, just on a whim. But this is not about those types of people.

This is more a focus on the forced changes we make when faced with diminished resources. How many families did not take the boat out on the lake this weekend because a tank of fuel is now X2 the amount it was last year or even last week! Ok so not X2 as much as last week but it took $60 to put only 14 gallons into the company truck we use for special deliveries (the truck will be gone soon enough as we switch it out for a Prius). Luckily we only fill up once every 2 weeks.

Which brings me back to my main point $150 a barrel will translate into a $5-$7 per gallon range. So what does this mean for Verde members in the near future? Nothing!

We built into the back end economics a price point for gas of $10 a gallon. We use premium gas and when regular gas climbs to $5 a gallon. Premium will climb to $10 a gallon. So from day 1 we will budget at $10 a gallon. As prices stay below our projected high we will take the surplus and plan infrastructure with it. Our own gas storage facility (future) in each region. This will allow us to control our cost when we reach 1 million members. These savings can be transferred to our members in the form of reduced hourly cost. Our goal is to get the hourly charges down to sub $5's.

By developing our business to evolve to a lower usage charge and building the infrastructure for gas distribution on a regional and local level. We leverage the cost of the infrastructure with the long term savings and cost reductions/savings. These savings translate to our members and provide us with the resources to add additional value to our growing list of services.

Where else do you see we could benefit by building an infrastructure?

Q CEO