The present situation with oil and gas prices got me thinking about ways to help mitigate the exposure to rising prices. The most obvious method is to buy in bulk and then use that fuel until the price drops below your buy rate. I think most people would be ok with doing this if the storage of fuel was not such a pain in the ass to deal with. Laws associated with the EPA and other OSHA related organizations make keeping fuel around your home very difficult indeed, and to be fair the safety issues are enough to make even those with the steeliest nerves sweat like a stuck pig in summer. Still the idea is very attractive so I did a little research and found the following information on above ground storage devices for fuel with capacities up to several thousand gallons. The average American family uses about 900 gallons per year so a one thousand gallon unit would work for most people.
http://www.convault.com/finishes.html
This would not look too unattractive next to my drive way, but it would still be pretty impractical when you consider security. It would be way too exposed to vandalism and theft. It occurs to me that this idea lends itself well to niche market business. I visualize it working in one of two ways…
- By re-utilizing a closed down gas station / convenience store. I have the fuel company come by and fuel my underground storage tanks. The station works just like a normal one with one exception. It pays for the fuel it receives all up front. The fuel is then sold in bulk to customers that own a storage account. Once the customer pays for the fuel he owns it and we store it. His Debit card has the number of prepaid gallons on it, so when he comes in to fill up that is what he uses at the pump. We would likely have to charge a small monthly fee to cover the cost of storage. We could also open a store and could make decent revenue from retail sales like a Circle K or 7-Eleven. The only people using the station would be the ones that have an account at that branch. This means you have to buy gas when you take long trips, but it is still a lot better than being gouged every time the cost of oil ticks up.
- Convert a U-Store it facility to house the individual fuel storage tanks and rent them out to consumers. This is a lot more attractive for a lot of reasons. We could also run a retail store on site and provide account holders a way to purchase in bulk. We may be able to save them even more money by pooling together to get more leverage in our dealings. The “bankers” could then focus on brokering the best price for fuel and go as far as purchasing it from distributors out of country. Its not like American companies feel any sense of loyalty to us, no reason not to buy foreign if it gives us an advantage.