s7jstep1

i just heard that there is a shortage of nitro. ill say no more just read the link [link=http://www.dragracingonline.com/analysis/x_5-nitro-1.html]clicky[/link]

Wratherax

I heard this at my flying field the other day as well. Hopefully it won't be that big of a deal and go unnoticed for us r/c people. We don't anything close to the quantity used by some of those big name racing organizations. (At least that's what I'd imagine)

GYNAIKAS

The rc nitro is actually Nitromethanol that is not an oil product and of course will not be soon is shortage...

RevToTheRedline

My Feedback: (4)

Aka made in a lab, like synthetic motor oil.

GYNAIKAS

Exactly...

s7jstep1

thats what i thought

iamnot

rc fuel is nitromethanol
which is nitromethane combined with ethanol

nitromethane is made by reacting
propane with nitric acid
at around 400 deg C

propane is derived from
oil and natural gas processing
so it could indeed have a shortage

but even if it were not petroleum related
there could still be shortages
simply because not enough
is being made
to meet demand

back in the mid to late 80's
during the last "shortage"
nitromethane sold for
something like $1500
for 55 gallons

so don't be surprised
if there is a shortage
or the price of our fuel
goes up significantly

slayerphonics

The artical said it was only going to last if anything 4 to 6 months. I highly doubt its going to affect you driving your nitro car.
RC hobby was never cheap.

2DMaxLST!!

I've heard rumors
for a while.

Such as large price increases,
additional shipping charges
due to
new regulations.

But
I have not heard about
a lack of components
require to
make it.

I still stocked up as
a investement.

2DMaxLST!!

I just read that article.
Good find and I can
see the source
of
some
of
the rumors
that
I have heard.

s7jstep1

thats insane, how much did all that cost?

Wratherax

That's probably about a grand worth of fuel right there lol

calvino

dude that would be HORRIBLE if the house went up with that much nitro[>:], geez, thats nuts[X(]

happywing

Stockpiling fuel is risky. You may think s7jstep1 is crazy, but these nitro shortage concerns are not his concerns. He's set. It may end up being a great investment. What's the shelf life on nitro?

iamnot

properly sealed and stored
maybe a couple of years

still, 36 gallons
is a fair amount
of fuel

2DMaxLST!!

I usually buy 2 cases of fuel at a time anyway.

I went in on halves,
with a friend,
on a full pallet to lock in the price.

We will sell what we don't use.

There are actually 68 gallons in the photo.

Access

But if you want to gamble on the price of a commodity, there are better ways. Having to store a bunch of fuel in your house or garage isn't necessary, and it doesn't offer the best returns either. If the fuel drops in value due to some new process or increased efficiencies, he's lost just as much as he would gain if it went up (an equal value). If he bought an option call then he wouldn't have to store the fuel and worst case he loses the premium he paid for the option. And if the price goes up with the option, premium to payout can be much higher.

Likewise if you are concerned about rising prices you can use an option as a hedge, like Southwest did for jet fuel back some time ago.
http://www.boston.com/business/artic...ng_their_jets/

2DMaxLST!!

I did not approach it is as a actual investment vehicle.

You would be surprised at my cost.

RCtruckRacer

Buying a whole pallet wholesale probably lowered the cost to about $12-15 a gallon. But, did you have to get a temporary HAZMAT license to transport 68 gallons of fuel back home?

iamnot

hazmat
didn't even think of that

probably best
not to let the homeowners
insurance company know

or maybe you should?

have to weigh that one out...

2DMaxLST!!

2 cars parked in my garage
would hold more flammable liquid
than in those cases of fuel.

I used to store 32 gallons of gasoline
(inside of a Suburban)
all the time in there
and 17 gallons in a Jet Ski
and sometimes 3 gallons of race fuel
in my motor cycle.

I assume my home owners policy
understands that I store fuel in my garage.

iamnot

you really might want to check
mine specifically forbids
storing flammable liquids in the garage
outside of vehicle fuel tanks that is...
i never truly understood
their logic but it's
not worth voiding my
coverage just to keep a few
gallons of fuel there

s7jstep1

what they dont know, doesnt hurt you

iamnot

wrong

fire burns house
insurance company wants to
know why it burnt so hot
fire department says
lots of accelerant in garage
but not where vehicles were

insurance company
says "oh really,
well that voids the policy so we
just saved ourselves $200k"

SManMTB

LOL