Should the Department of Defense hedge oil prices in order to save money?
Knapp, James W.
MetadataShow full item record
This paper explores one possible solution to the DoD problem of increased expenditures due to rises in the costs of jet fuel. This paper provides a brief overview of the futures market and of commercially accepted practices utilized by the airlines within the futures market. The goal of this paper is to explore the feasibility of the government entering the futures market in order to reduce the current DoD jet fuel cost and whether the potential savings would outweigh the associated risks and costs. This paper briefly discusses the current method of procurement and examines the commercial practices of futures trading, focusing on the airline industry which offers the greatest affinity to the DoD.
MBA Professional Report
Showing items related by title, author, creator and subject.
Snyder, Brion Scott (Monterey, California. Naval Postgraduate School, 1993-12);The Defense Fuel Supply Center is the primary buying agent for most of the petroleum used by the Department of Defense and other Government agencies. Purchasing nearly 200 million barrels of oil per year, the Fuel Center's ...
Bowman, Thomas R.; Wright, Evan P. (Monterey, California. Naval Postgraduate School, 2009-06);The purpose of our professional project is to research the possible effects of the Department of Defense's (DoD) participation as a buyer in the commercial futures market for derivatives. The idea that DoD should participate ...
Innovations in Defense Acquisition: Asymmetric Information, Mechanism Design and Prediction Markets Peter Coughlan; Jeremy Arkes; Gates, William (2011-02-03); NPS-AM-11-006Prediction markets, sometimes called information markets, idea markets or event futures, are similar to financial stock markets where the stocks and their prices reflect the consensus view regarding the outcomes of ...