TERRY MCMILLEN TALKS NITROMETHANE
Wed, 2008-08-06 14:29
When Terry McMillen isn’t busy racing his Amalie Oil Top Fuel
dragster, he’s busy participating with the sanctioning body and Rob 
Reeves,
owner and operator of the drag strip in Edmonton, Alb., locating and
procuring a source of nitromethane for the IHRA fuel racers.
The controversial supply and demand issue of nitromethane has hit an all-time high within drag racing. McMillen has been monitoring the recent situation in terms of pricing and availability.
With that said, McMillen is a qualified source to discus the latest happenings with nitromethane regarding drag racing. When Terry McMillen isn’t busy racing his Amalie Oil Top Fuel dragster, he’s busy participating with the sanctioning body and RobReeves, owner and operator of the drag strip in Edmonton, Alb., locating and procuring a source of nitromethane for the IHRA fuel racers.
The controversial supply and demand issue of nitromethane has hit an all-time high within drag racing. McMillen has been monitoring the recent situation in terms of pricing and availability.
With that said, McMillen is a qualified source to discus the latest happenings with nitromethane regarding drag racing.
COMPETITION PLUS: Are we accurate in saying that you were the one who led the IHRA’s charge to secure Nitromethane?
TERRY MCMILLEN: There was a group of us. IHRA was involved with that. Myself and Rob Reeves. Rob Reeves is pretty much the one who stepped in and helped to fund the program. We just kind of involved the track into getting it delivered. So IHRA and a lot of people were involved, it was really a group effort. It keeps us racing.
CP: Do you use the same sources as Don Schumacher?
TM: We do. We buy it from the same place. The problem that’s taking place with the industry right now is when we bought our two containers three or four months ago, nitro was a whole lot more reasonable than what it is today. I just got a new price on it as of yesterday and just my cost alone was $1700 bucks. And we have to have it delivered on top of that. The $2000 dollar price frame is definitely in sight now. In the IHRA there’s not a profit margin in here we’re just basically moving it for what we have in it so we can keep racing. Hopefully someone can step up and take care of the Nitro side of the business over here because we just want to race.
CP: When you say $1700, you’re talking about a 53-gallon drum not a 42, correct?
TM: Correct, it’s a 53-gallon drum. $1700 and that’s our cost on it. You got to pump it off into 40’s to meet the Homeland Security. Adjust the guidelines per say. By the time you add all these extra costs in there we’re going to have another $60 bucks in it. Plus, you add the freight. Just before we do anything with it, it will be $1800 dollars.
CP: Do you think its unreasonable for race teams to be paying $1822 dollars for 42-gallon drums of nitromethane?
TM: It’s outrageous, but what are you going to do? I truly believe the price will change at the end of the year but now they [Chinese suppliers] know what our market is and what our needs are. So right now they kind of have us. We’re all stuck having to pay these prices. It’s just a catch-22, hopefully it will all come in line over the winter and we can afford to buy nitro again. Race teams, it’s killing them. Especially, the guys like ourselves that even though we may be sponsored we don’t have the big budget and the big funds of the other teams. So it’s a huge impact. Then you take other racers who are trying to run race to race, it has a tremendous impact on them. So I think the industry needs to make an adjustment. I think the day of buying nitro for $700 dollar a drum costs are certainly gone. My gut feeling is you’re going to still end up paying $800 or $900 dollars just to get your hands on it.
CP: Since a lot of people have been inquiring about Nitromethane, do you think the Chinese industries decided to start charging more for the product?
TM: In the beginning of the year, their warehouse was full with nitro and there is really no reason for the price we’re having to pay today. But I think at the same point in time, the people called over there trying to buy it for less has certainly driven them to raise the prices. Then you have the broker fees for getting it from overseas. Those guys are on the bandwagon raising prices now. It’s no shock it’s where it’s at today. But it’s because of greed not the price of doing business.
CP: Let’s say the NHRA opens up to more than one official distributor. Would you throw your hat in the ring there?
TM: I tell you what, I don’t know. The NHRA they use about 160 drums of nitro a weekend. That’s millions of dollars. I’d have to come get a loan from CompetitionPlus.com before I purchased that kind of Nitro.
Reeves,
owner and operator of the drag strip in Edmonton, Alb., locating and
procuring a source of nitromethane for the IHRA fuel racers. The controversial supply and demand issue of nitromethane has hit an all-time high within drag racing. McMillen has been monitoring the recent situation in terms of pricing and availability.
With that said, McMillen is a qualified source to discus the latest happenings with nitromethane regarding drag racing. When Terry McMillen isn’t busy racing his Amalie Oil Top Fuel dragster, he’s busy participating with the sanctioning body and Rob
Reeves, owner and operator of the drag strip in Edmonton, Alb., locating and procuring a source of nitromethane for the IHRA fuel racers. The controversial supply and demand issue of nitromethane has hit an all-time high within drag racing. McMillen has been monitoring the recent situation in terms of pricing and availability.
With that said, McMillen is a qualified source to discus the latest happenings with nitromethane regarding drag racing.
COMPETITION PLUS: Are we accurate in saying that you were the one who led the IHRA’s charge to secure Nitromethane?
TERRY MCMILLEN: There was a group of us. IHRA was involved with that. Myself and Rob Reeves. Rob Reeves is pretty much the one who stepped in and helped to fund the program. We just kind of involved the track into getting it delivered. So IHRA and a lot of people were involved, it was really a group effort. It keeps us racing.
CP: Do you use the same sources as Don Schumacher?
TM: We do. We buy it from the same place. The problem that’s taking place with the industry right now is when we bought our two containers three or four months ago, nitro was a whole lot more reasonable than what it is today. I just got a new price on it as of yesterday and just my cost alone was $1700 bucks. And we have to have it delivered on top of that. The $2000 dollar price frame is definitely in sight now. In the IHRA there’s not a profit margin in here we’re just basically moving it for what we have in it so we can keep racing. Hopefully someone can step up and take care of the Nitro side of the business over here because we just want to race.
CP: When you say $1700, you’re talking about a 53-gallon drum not a 42, correct?
TM: Correct, it’s a 53-gallon drum. $1700 and that’s our cost on it. You got to pump it off into 40’s to meet the Homeland Security. Adjust the guidelines per say. By the time you add all these extra costs in there we’re going to have another $60 bucks in it. Plus, you add the freight. Just before we do anything with it, it will be $1800 dollars.
CP: Do you think its unreasonable for race teams to be paying $1822 dollars for 42-gallon drums of nitromethane?
TM: It’s outrageous, but what are you going to do? I truly believe the price will change at the end of the year but now they [Chinese suppliers] know what our market is and what our needs are. So right now they kind of have us. We’re all stuck having to pay these prices. It’s just a catch-22, hopefully it will all come in line over the winter and we can afford to buy nitro again. Race teams, it’s killing them. Especially, the guys like ourselves that even though we may be sponsored we don’t have the big budget and the big funds of the other teams. So it’s a huge impact. Then you take other racers who are trying to run race to race, it has a tremendous impact on them. So I think the industry needs to make an adjustment. I think the day of buying nitro for $700 dollar a drum costs are certainly gone. My gut feeling is you’re going to still end up paying $800 or $900 dollars just to get your hands on it.
CP: Since a lot of people have been inquiring about Nitromethane, do you think the Chinese industries decided to start charging more for the product?
TM: In the beginning of the year, their warehouse was full with nitro and there is really no reason for the price we’re having to pay today. But I think at the same point in time, the people called over there trying to buy it for less has certainly driven them to raise the prices. Then you have the broker fees for getting it from overseas. Those guys are on the bandwagon raising prices now. It’s no shock it’s where it’s at today. But it’s because of greed not the price of doing business.
CP: Let’s say the NHRA opens up to more than one official distributor. Would you throw your hat in the ring there?
TM: I tell you what, I don’t know. The NHRA they use about 160 drums of nitro a weekend. That’s millions of dollars. I’d have to come get a loan from CompetitionPlus.com before I purchased that kind of Nitro.
Categories:
