Friday, First Day Of August, 2014 -- Now, Into The Summer Doldrums; $5 Gasoline? Ford SUV Explorer July Sales Surge 32%; 250-Day Supply For Cadillac ELR

Active rigs:

	8/1/2014	08/01/2013	08/01/2012	08/01/2011	08/01/2010
Active Rigs	193	178	207	183	143

RBN Energy: the road to New England -- update on New England preparing for this winter.

Early morning trading: as a rule I don't check the market, or report on the market, during significant declines (like the one we had yesterday) unless I plan to buy something. I did take advantage of the decline yesterday and bought back into a Bakken operator that I had sold a while back. I have not checked on what it is doing today; it was such a nice opportunity yesterday, I don't plan to sell these shares for a long, long time, so it doesn't matter what it does today. I won't be reporting on the market today, or even checking in on it, except perhaps at the end of the day to see how it did. I do have a lot of thoughts -- all positive -- about market action yesterday but my opinion and $1.75 will get you a cup of coffee at Starbucks. COP and ENB do report earnings today, for those interested. If I remember, I will check on them next week when the dust settles (hopefully) and post that data at the earnings page for archival purposes.

Disclaimer: this is not an investment site. Do not make any investment decisions based on anything you read here or think you may have read here.

Briefly: The transload facility, the first part of the Three Affililated Tribes' Thunder Butte Petroleum Services Inc. refinery project west of Makoti, will be finished this fall, said Tex Hall, tribal chairman; reported by The Minot Daily News.

Several new posts overnight: wells coming off confidential list today have been posted; August NDIC hearing dockets agenda and highlights has been posted

The UN "condemns" Israel for not sharing" its Iron Dome anti-ballistic missile protection system with the terrorist organization, Hamas. This should not be surprising. The UN is helping Hamas store rockets in UN schools, hospitals, and refugee "safe" sites. When the rockets are discovered at these sites by the Israeli military, they are turned into Palestinian/UN officials, who then return these rockets to their owners: Hamas. I can't make this up.

Car sales: I think I read somewhere earlier in July that it was the expectation that July, 2014, would set all kinds new records for automobile sales. Ford reports:

• July sales for Ford increased 10 percent; best July performance in eight (8) years
• Ford Fusion posted a record July sales month, up 17 percent
• huge: Ford Explorer sales increased 32 percent
• Ford Escape posted best July with a 19 percent sales increase
• Ford F-series again topped 60,000-vehicle mark; up 5 percent
• Lincoln sales increased 14% 

Car sales, Chevy Volt: For the Volt, the 2,020 units sold represents a 13 percent increase from July of 2013 even though year-to-date sales are down 8.7 percent this year compared to last year. Overall, total Chevrolet deliveries for July 2014 were up eight percent compared to 2013, so the Volt was a bright spot for the Bowtie brand last month. Unfortunately, the Volt is one of two plug-in cars on the market today that are still showing year-over-year declines. 

Car sales, Cadillac ELR:

In total 188 ELRs were sold – almost double their previous high set last month when 97 copies where sold.

Year to date totals have now hit 578 units! [At 578 units over seven months, these cars should be custom-built by master craftsmen.]

This month result also brings some sanity to the “days inventory” number that had been well north of 500 for the past few months.  While 250 days worth of ELRs on hand is still not all that great, it is far closer to norm.

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A Note for the Granddaughters 

We had a great day yesterday. A friend recommended The Nethercutt Collection and that's where we spent the day. 

We lived fourteen years overseas and have seen most of the US. For the "WOW" factor, I'm not sure anything can beat The Netercutt Collection.

I will go again; I assume I will go at least once every year, maybe even twice a year. It is simply true pleasure. I had not heard of it until it was recommended, and even long-time residents of Los Angeles have not heard of it.

Nethercutt and his wife died in 2004, after 71 years of marriage. They were high school sweethearts; they died within a couple months of each other. I think he was 91 years old. Don't quote me on that.

In his "coming of age" years he moved out to California to live with his aunt, Merle Nethercutt Norman; the two of them developed the Merle Normal cosmetics company. Early in life he and his wife decided, for whatever reason, to restore an old car. From there it took off.

At one time, I thought the drive out to the valley would have been a long drive, but once one gets to the turn-off to the Getty Museum (which we visit frequently), it's clear sailing on the "405" and just 15 more miles. The Nethercutt is right off the freeway; easy access. Free parking and the museum and the guided tour is free. In fact, everything is free; no museum store. One can buy a hardcover coffee table book of the museum at the front desk for $35. No tax. It's a non-profit. The cars are the draw, but there is much, much more there.

One needs reservations for the guided tour: a simple e-mail gets you a reservation. The group is relatively small; the group seems unwieldly at first but once you get inside the "cavernous" showroom, there is more than enough room to spread out. Photographs are encouraged; but no flash in some areas, and no video at all, anywhere.

Unlike most such collections, everything in this collection was owned by the Nethercutts and is now owned by the foundation. Nothing is on loan. In addition, and this is most surprising: everything works. Every car is taken out at least once a year to be driven. Cars are taken to car shows every year where they compete and win. Also, most recently, 2013:

A 1968 Ford GT40 owned by the Rocky Mountain Auto Collection of Bozeman, Mont., was named Best in Show Concours de Sport, while a 1936 Duesenberg SJN, owned by The Nethercutt Collection of Sylmar, CA, took the Best in Show Concours de Elegance.

Nethercutt took first place with the first car he ever restored:

In 1956, J.B. purchased two cars: a 1936 Duesenberg Convertible Roadster for $5,000 and a 1930 DuPont Town Car for $500, both needing total refurbishing. The DuPont restoration, which J.B. estimated would take a few weeks, instead took 18 months and over $65,000. By 1958, his meticulously rebuilt project claimed its first prize — the coveted “Best of Show” award at the prestigious Pebble Beach Concours d’Elegance. By the summer of 1992, his cars had won the Pebble Beach Concours d’Elegance six times, more than any other individual. The Duesenberg and the DuPont are still part of The Nethercutt Collection.

The Duesenberg? An American car. A Duesenberg won the very first Indianapolis 500, average speed, I believe was 60 mph. Again, don't quote me on that. Information overload yesterday but I got the book.

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Farmer's Market

The Nethercutt Collection closes at 4:30 p.m. and heading back into west Los Angeles would have put us right into rush hour traffic, so we got off the "405" at Getty Drive, and took surface streets (Sepulveda and Wilshire) to Farmer's Market.  The drive down Wilshire is a tough grind at rush hour, but I had great company and it's always fun to see what's going on in that area of town. The huge water main that broke a day or two before occurred several blocks to the north, so I don't think traffic on Wilshire was affected. I was impressed how courteous/smart LA drivers are in that area, particularly not blocking intersections. Folks were able to make left turns at non-regulated intersections due to courteous driving by others.

Farmers Market was much less busy on a Thursday compared to our visit on a weekend a couple of weeks ago. Yes, we had dinner again at the Brazilian churrascaria. Not much new at Barnes and Noble. Apple not so busy.  Traffic at 8:30 p.m. fairly heavy getting out of the downtown area but once we were on La Cienega it moved nicely. Just as you get to that area, we noted the streets are named after the first few US presidents: Washington, Adams, Jefferson, Cienega.

Cienega's first name was "La" I guess, perhaps short for Larry.

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$5.00 Gasoline

And, yes, the price of the least expensive grade of gasoline in downtown Los Angeles, west side, is well over $5.00/gallon but still under $5.49. 

Without question, $5.00-gasoline is a huge drag on the economy.