With world events showing the importance of energy independence, the American Trucking Associations called on the Obama Administration to stop blocking access to US-held energy assets.
“The trucking industry requires more than 34 billion gallons of diesel fuel to deliver essential commodities like food, medicine, clothing, and fuel,” ATA Vice-President and Regulatory Affairs Counsel Rich Moskowitz said recently. “Despite advances in alternative energy, the trucking industry will continue to depend on traditional diesel fuel for the foreseeable future.”
Moskowitz testified on ATA’s behalf during a Department of Interior hearing on the agency’s five-year plan for offshore oil and gas production.
“Recent events in Egypt and Libya have highlighted how fragile the global oil market is, putting our industry at risk for rapid price spikes, even as we slowly begin to roll to an economic recovery,” said Bill Graves, ATA president and chief executive officer. “Fuel is our members’ second-largest expense, so uncontrollable spikes cut right at their bottom line.”
“Until US policymakers promote the development of domestic sources of energy, like those on the Outer Continental Shelf, America’s consumers and truckers will become more dependent on sources of foreign oil,” said Moskowitz. “Rising fuel prices hurt truckers twice—first by increasing their operating costs and then by reducing freight volumes as consumers spend more on energy and are forced to reduce their spending on other consumer goods.”
In 2010, the trucking industry spent an estimated $101.5 billion on diesel fuel—a 28% increase over the previous year. Before the current spike in crude oil prices, ATA estimated that in 2011 carriers will spend roughly $20 billion more at the pump than they did in 2010.