Message-ID: <105645.1075843915932.JavaMail.evans@thyme>
Date: Tue, 7 Nov 2000 04:08:00 -0800 (PST)
From: mike.mcconnell@enron.com
To: john.nowlan@enron.com
Subject: Suggestion of Trading Gasoline on EnronOnline
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X-From: Mike McConnell
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John, FYI and consideration.
m
---------------------- Forwarded by Mike McConnell/HOU/ECT on 11/07/2000 
12:08 PM ---------------------------
   
	Enron North America Corp.
	
	From:  Sherri Sera @ ENRON                           11/07/2000 09:38 AM
	

To: Mike McConnell/HOU/ECT@ECT
cc:  
Subject: Suggestion of Trading Gasoline on EnronOnline

Mike, Jeff has asked that you review and respond.  Thanks, SRS
---------------------- Forwarded by Sherri Sera/Corp/Enron on 11/07/2000 
09:27 AM ---------------------------


Peter S Lee@ENRON_DEVELOPMENT
11/06/2000 01:59 PM
To: Jeff Skilling@ENRON
cc: Warren Wang/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Thomas 
Liu/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Chicheng 
Yang/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Justo Wong 
Liong/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Shengli 
Wu/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT 

Subject: Suggestion of Trading Gasoline on EnronOnline

Mr. Skilling,

We are a group of EE&CC engineers and we have an idea about trading gasoline 
online. 

Enron can trade gasoline as a commodity the same as natural gas and 
electricity.  The idea is any one can buy an amount of gasoline at a 
pre-determined price with a certain premium for an extended period.  Which 
means there is an expiration date for the investor or buyer.  

When the gasoline price is low, such as last year, people are able to buy a 
certain amount of gasoline from Enron,( Enron is to negotiate with gasoline 
producer for an amount and certain price (whole sale) that Enron believes 
they can sold in a certain period of time through market study and be able to 
make the profit), say  3000 gallons regular unleaded and with 10% (the profit 
margin to be determined  by Enron) premium.  The buyer will receive a debit 
or credit card to be used to purchase the gasoline and  the amount will be 
automatically recorded  each time when they fill up the cars until the amount 
of pre-purchased gasoline is used up in that period of time (prior to the 
expiration date).  The buyers (or customer) can also sell the unused gasoline 
back to Enron anytime before the expiration day the same price they bought 
from Enron for profit if the market gas price is lower or take a loss if the 
market price is higher.   By doing this, Enron creates a market that can 
allow customers to short the gasoline when the market is high.  

There are many other ways to trade the gasoline. Nevertheless, the potential 
market ( if a minimum of 50% household can sign up) is tremendous.  I 
sincerely believe that Enron has the capability to make it happen through 
existing Enron online e-business. We hope this idea has not been thought out 
before for its feasibility.

Regards,



Peter Lee
Warren Wang
Victor Wu
Thomas Liu
CC Yang,
Justo Wang Liong