A Great Business Idea
I am going to share a great business idea here, something that has the potential to make millions and perhaps billions over the long haul.
The basic idea is to sell gas(oline) cards (like you can buy a gift card). The difference is that instead of the card being worth say $100, it will be worth 50 gallons of gas. You will buy it today at today's price and be able to fill you tank with that much quantity, howsoever long it takes. This way you will have taken out future gas price uncertainty.
The seller of these cards will need to do some intricate hedging on the futures markets to lock in the wholesale rates and maintain close to zero net exposure to the commodity price movement. Once the business gets off the ground, I can see any of the big oil companies getting interested in buying it out. (OTOH, licensing the system may work better, because then you can license it to all the oil companies!)
If you have only one car, this kind of a card will probably not be worth your while. But if you have a couple of gas-guzzlers or if you run a limousine or delivery service, this could be a great idea.
I have written about hedging your gas bill before, and yesterday I came across this article. There is certainly a market out there; it just needs to be woken up.
PS: If you read this article and get inspired and make millions, keep me in mind, will you?!
PPS: If it works out for gasoline, why not for natural gas too?
The basic idea is to sell gas(oline) cards (like you can buy a gift card). The difference is that instead of the card being worth say $100, it will be worth 50 gallons of gas. You will buy it today at today's price and be able to fill you tank with that much quantity, howsoever long it takes. This way you will have taken out future gas price uncertainty.
The seller of these cards will need to do some intricate hedging on the futures markets to lock in the wholesale rates and maintain close to zero net exposure to the commodity price movement. Once the business gets off the ground, I can see any of the big oil companies getting interested in buying it out. (OTOH, licensing the system may work better, because then you can license it to all the oil companies!)
If you have only one car, this kind of a card will probably not be worth your while. But if you have a couple of gas-guzzlers or if you run a limousine or delivery service, this could be a great idea.
I have written about hedging your gas bill before, and yesterday I came across this article. There is certainly a market out there; it just needs to be woken up.
PS: If you read this article and get inspired and make millions, keep me in mind, will you?!
PPS: If it works out for gasoline, why not for natural gas too?
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