Should the Department of Defense Hedge Oil Prices in Order to Save Money

Abstract

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.

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Document Details

Document Type
Technical Report
Publication Date
Mar 01, 2008
Accession Number
ADA479964

Entities

People

  • James W. Knapp

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Air Platforms
  • Energy and Power Technologies
  • Ground and Sea Platforms
  • Space

DTIC Thesaurus Topics

  • Acquisition
  • Aerospace Industry
  • Air Force
  • Aircrafts
  • Business Administration
  • Commercial Aviation
  • Department Of Defense
  • Fossil Fuels
  • Fuel Efficiency
  • Fuels
  • Government Procurement
  • Governments
  • Jet Engine Fuels
  • Petroleum
  • Procurement
  • United States
  • United States Government

Readers

  • Economics