News:

Welcome to the Golf Club Atlas Discussion Group!

Each user is approved by the Golf Club Atlas editorial staff. For any new inquiries, please contact us.


Joel_Stewart

  • Karma: +0/-0
Oil at $135, how does it effect maintance costs?
« on: May 22, 2008, 01:18:17 AM »
Aside from costing more to put gas in maintance vehicles, isn't most fertilizer oil based?   I wonder if any supers have done the research on how much more their budget will be with oil costs going up?

Goldman Sachs predicted oil will go to $200 which should impact conditioning and maintance even further.   Are clubs in a bind to raise fees or let conditions decline?

JSPayne

  • Karma: +0/-0
Re: Oil at $135, how does it effect maintance costs?
« Reply #1 on: May 22, 2008, 08:29:05 AM »
Yeah Joel, fertilizer prices are definetely going through the roof. I had to work a little magic to get my whole course spring fertilizer application paid for, but I think that's going to be the biggest challenge this year....still doing what's best for the course with the budgets we've all been saddled with.

Now, when it comes time to creating and submitting next year's budget, it will be interesting to start punching numbers and see what happens. Not only am I sure any costs oil related (gas for machines, fertilizers, not to mention everything gets shipped to us so increased shipping costs....may force more supers to buy more locally) will go up, but I know at least in my neck of the woods the economy is definetely taking it's toll on revenues and we'll probably be looking at more mandatory budget cuts this year along with an overall reduction in spending next year. Not a good combo for supers on already tight budgets.

But hey, that's what they pay us for right? To be creative and "find a way to get it done"....

I don't know about anyone else, but in California, water issues and availability are just as big if not a bigger issue than rising oil costs.
"To be nobody but yourself in a world which is doing it's best, night and day, to make you everybody else means to fight the hardest battle any human being can fight; and never stop fighting." -E.E. Cummings

Tiger_Bernhardt

  • Karma: +0/-0
Re: Oil at $135, how does it effect maintance costs?
« Reply #2 on: May 22, 2008, 09:09:23 AM »
Joel I am thinking the those fertilizer plants along the river are very natural gas price sensitive.

Greg Chambers

  • Karma: +0/-0
Re: Oil at $135, how does it effect maintance costs?
« Reply #3 on: May 22, 2008, 03:42:18 PM »
Fertilizer costs here are up over 60% from last year.  Not to mention the fuel to run the equipment, most of which is diesel.  Plant growth regulators are becoming an increasing part of the program in an effort to reduce mowing, reducing fuel consumption.  Plus organic fertilizer prices seem to have remained relatively stable throughout.
"It's good sportsmanship to not pick up lost golf balls while they are still rolling.”

David Stamm

  • Karma: +0/-0
Re: Oil at $135, how does it effect maintance costs?
« Reply #4 on: May 22, 2008, 03:53:07 PM »

I don't know about anyone else, but in California, water issues and availability are just as big if not a bigger issue than rising oil costs.


Yes it is. We have some very serious issues in regards to water going on right now. It seems we always do, but it's gotten worse.
"The object of golf architecture is to give an intelligent purpose to the striking of a golf ball."- Max Behr

Kalen Braley

  • Karma: +0/-0
Re: Oil at $135, how does it effect maintance costs?
« Reply #5 on: May 22, 2008, 04:17:30 PM »

I don't know about anyone else, but in California, water issues and availability are just as big if not a bigger issue than rising oil costs.


Yes it is. We have some very serious issues in regards to water going on right now. It seems we always do, but it's gotten worse.

True David,

And they just keep building and building adding more people to the area on already water-taxed area.  I think LA is trying to divert some water from Oregon now.  They already get a bunch from the Sierras in Northern California.  Its crazy stuff.

Lake Powell and Mead are at record low levels due to Vegas exploding in the last 20 years..yet they just keep on building.

Dave_Miller

  • Karma: +0/-0
Re: Oil at $135, how does it effect maintance costs?
« Reply #6 on: May 22, 2008, 04:19:13 PM »
Aside from costing more to put gas in maintance vehicles, isn't most fertilizer oil based?   I wonder if any supers have done the research on how much more their budget will be with oil costs going up?

Goldman Sachs predicted oil will go to $200 which should impact conditioning and maintance even further.   Are clubs in a bind to raise fees or let conditions decline?

Joel:
My club in Florida, Admirals Cove, received a letter from our fertilizer supplier that prices would be going up significantly.  I was informed of this as I serve on the Green Committee.  There does not appear to be relief in sight.  As a private club whose members demand excellent conditioning I'm sure we will get the necessary funds but this could impact conditioning at many other clubs who may not have the resources that a lot of Private Clubs have.
Fairways and Greens
Dave

Doug Wright

  • Karma: +0/-0
Re: Oil at $135, how does it effect maintance costs?
« Reply #7 on: May 22, 2008, 06:01:09 PM »

I don't know about anyone else, but in California, water issues and availability are just as big if not a bigger issue than rising oil costs.


Yes it is. We have some very serious issues in regards to water going on right now. It seems we always do, but it's gotten worse.

True David,

And they just keep building and building adding more people to the area on already water-taxed area.  I think LA is trying to divert some water from Oregon now.  They already get a bunch from the Sierras in Northern California.  Its crazy stuff.

Lake Powell and Mead are at record low levels due to Vegas exploding in the last 20 years..yet they just keep on building.

Kalen,

Actually, Lake Powell isn't at record lows any longer and (for all you Lake Powell houseboaters) is building nicely due to rivers feeding Lake Powell running at 136.6% of the May average. The Colorado River is running at something like 170% of average due to the well above average snowfall/snowpack in Colorado this winter.

I'd agree, though, that there are a lot of people with big fat straws sucking water out at the other end...
Twitter: @Deneuchre

Kalen Braley

  • Karma: +0/-0
Re: Oil at $135, how does it effect maintance costs?
« Reply #8 on: May 22, 2008, 06:06:37 PM »
Doug,

Understood it was a good year this year....but a couple of good years isn't going to turn the tide on 50 years of trending down.  The lake is still much much lower than it was back then.

Some current stats:

"Current Lake Powell storage is 11,716 thousand acre-feet (KAF) (48 percent of
capacity). Lake Mead storage is 12,312 KAF (48 percent of capacity).  Total
system storage is 31,386 KAF (53 percent of capacity). ".
« Last Edit: May 22, 2008, 06:19:27 PM by Kalen Braley »

TEPaul

Re: Oil at $135, how does it effect maintance costs?
« Reply #9 on: May 22, 2008, 06:42:27 PM »
"Oil at $135, how does it effect maintance costs?"

Real bad. I think we budgeted for a 5% increase this year at my place. Maybe it was 7% increase but that line item blew through that budget increase like the wind. This desiel price is getting near European costs.

Like everything else in the Universe that's bad, it's all Bush's fault!   ;)

Bill_McBride

  • Karma: +0/-0
Re: Oil at $135, how does it effect maintance costs?
« Reply #10 on: May 22, 2008, 08:32:37 PM »
After playing at Black Mesa recently and hearing their gasoline golf carts in my dreams, it occurs to me that they might have been better off buying electric carts when they opened!  Not sure what the cost/benefit analysis would be, but it doesn't appear gasoline prices are going down anytime soon....... >:(

Joel_Stewart

  • Karma: +0/-0
Re: Oil at $135, how does it effect maintance costs?
« Reply #11 on: May 22, 2008, 09:21:23 PM »
I've never understood why many clubs haven't installed the solar electric golf carts?   It seems so logical and I don't think they are that expensive.   he roof is easily attached on almost all carts.


Tags:
Tags:

An Error Has Occurred!

Call to undefined function theme_linktree()
Back