Can Wal-Mart Take on OPEC?

[uvaeeman]

http://money.cnn.com/2006/08/08/news...ex.htm?cnn=yes

Why Wal-Mart wants to sell ethanol
E85 is available at only a tiny fraction of gas stations. But Fortune's Marc Gunther says the giant retailer is poised to change that.
FORTUNE Magazine
By Marc Gunther, Fortune senior writer
August 9 2006: 10:30 AM EDT

NEW YORK (Fortune) -- More than 5 million vehicles on U.S. roads today can run on ethanol - a renewable fuel that comes from corn - as well as gasoline. General Motors (Charts), Ford (Charts) and DaimlerChrysler (Charts) recently announced plans to double their annual production of so-called flex fuel vehicles to two million cars and trucks by 2010.

It's the single largest commitment to renewable fuels in the history of the auto industry - a good move for the automakers, and for the planet, too.

hat's because running cars and trucks on E85, a blend of 85 percent ethanol and 15 percent gasoline, could turn out to be a cost-effective way to reduce the carbon emissions that cause global warming and curb our dependence on imported oil.

There's just one big problem.

Only about 800 service stations in the United States, out of a total of 168,000, pump E85. There's not a single E85 pump, for example, in all of New England.

You won't be surprised to learn that the big oil companies are not, as a rule, interested in selling E85.

But Wal-Mart (Charts) is. The giant retailer is considering selling ethanol at the eight stations that it operates at Wal-Mart Stores and at about 380 more that it runs as part of its Sam's Clubs division.

It could also decide to sell ethanol in a partnership with Murphy Oil Corp. (Charts), which operates about 946 gas stations in Wal-Mart parking lots, and there's no reason why Wal-Mart couldn't sell E85 - which it calls "America's Fuel" - at the rest of its 3,000 U.S. stores.

"Our goal would be to make E-85 available across the U.S," Rich Ezell, senior strategy manager of fuel at Wal-Mart, said recently.

Why does Wal-Mart want to get into the transportation fuel business?

Several reasons. First, selling ethanol could be a new profit center for Wal-Mart, since the retailing business is wide-open. It's also a way for the company to help its customers save money; the less money they pour into the tank, they more they have to spend at Wal-Mart.

Finally, Wal-Mart's interest in alternative fuels like ethanol comes as part of its sweeping efforts to adopt business practices that are better for the environment. To guide its efforts, Wal-Mart has organized more than a dozen "sustainable value networks" that are composed of suppliers, environmentalists, industry experts and government officials.

...Article Continues At Link
http://money.cnn.com/2006/08/08/news...ex.htm?cnn=yes

[genjy]

I love Wal-Mart and what it stands for. A lot of people hate Wal-Mart, but I love it. It's American capitalism at work. Hopefully Wal-Mart can help lower ethanol and gas prices.

[rwalth]

I have never liked Walmart and never shop there, but I would buy E85 there. I hope they also consider selling Biodeisel.

[uvaeeman]

Originally Posted by rwalth

I have never liked Walmart and never shop there, but I would buy E85 there. I hope they also consider selling Biodeisel.

I don't shop there (maybe once a year). But I would definitely buy E85 there if they were the only ones offering it (or if it was the best price).

[mgescuro]

Chevron is actually working with one of the largest Ethanol manufacturers to get E85 out there, so to say Big Oil has no interest in selling E85 is a misnomer. Then again, Chevron has always been greener than the others in Big Oil.

If Saab can get their BioPowers in the US... I'd consider going E85. And I want their AEro BioPower...

[suburbanfoo]

i shouted wal mart sucks in a trailor park and had to run for my life!

[Proetus]

There's not a single E85 pump, for example, in all of New England.

Hopefully it stays that way for quite some time. It makes a lot more sense to mandate E10 for all of the central plains states than to ship ethanol by 5mpg truck 1,500 miles to New England.

[1931Chevy]

I like wal mart the same way i love gm and ford

[Boiler]

I've always been dependant on wal-mart due to the fact that i'm a college student and wal-mart is the closest grociery store in town. However, sometimes there's a toss-up of which store to go to... but if they were the only gas-station in town with E-85, then i'm sold! They better raise their supply to meet the new demands.

[xjken]

WAL-MART SUCKS, WAL-MART SUCKS, WAL-MART SUCKS!

Good for them on this one though, if they pull this off their competition will have to follow. Everybody wins. Wal-mart sucks but, big oil sucks more.

[Rick 2000]

My impresion of Wal-Mart is a store that mostly sell made in China
crap .

[genjy]

Originally Posted by Rick 2000

My impresion of Wal-Mart is a store that mostly sell made in China
crap .

Walmart sell mostly the same stuff other stores sell, just at lower prices. I find pretty much the same toys of the same brands at Toys R' Us and Target. Same shampoo and drugs at CVS and Longs. Same microwaveable containers I find at Bath, Body, and Beyond and Linens N' Things. Same lightbulbs and outlets I find at Home Depot and Lowes.

So, where do you shop and pay higher prices?

[Xcursionliveson]

Originally Posted by genjy

Walmart sell mostly the same stuff other stores sell, just at lower prices. I find pretty much the same toys of the same brands at Toys R' Us and Target. Same shampoo and drugs at CVS and Longs. Same microwaveable containers I find at Bath, Body, and Beyond and Linens N' Things. Same lightbulbs and outlets I find at Home Depot and Lowes.

So, where do you shop and pay higher prices?

It's Bed Bath and Beyond.

[I-Love-Pontiac]

Originally Posted by 1931Chevy

I like wal mart the same way i love gm and ford

That's exactly what I was thinking. Same with Microsoft and Dell.

[hdmax]

Krogers (A large grocery store chain in the midwest) Announced awhile back that they will be selling E85 at many of there gas stations soon.