ATA Requests More Domestic Oil Production
Due to the recent increases and uncertain future of diesel fuel prices, the American Trucking Association has requested the Obama administration open up more US-based sources of oil. This includes offshore reserves potentially reached through drilling.
“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 Feb. 24. “Despite advances in alternative energy, the trucking industry will continue to depend on traditional diesel fuel for the foreseeable future.”
“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,” ATA President and CEO Bill Graves said. “Fuel is our members’ second largest expense, so uncontrollable spikes cut right at their bottom line.”
Moskowitz also stressed the importance of the trucking industry, and the negative impact high fuel prices have on the overall US economy.
The Obama administration has imposed bans on offshore drilling in many areas that were expected to be open for future drilling and oil production. Drilling was banned in December 2010 for areas in the eastern Gulf of Mexico and off of the Atlantic Coast for 7 years.
It is unclear if the administration has any plans to lift these bans to further domestic oil production in the near future. Many trucking companies and independent owner operators support increased domestic oil production to lower prices at the pump and increase the stability of the overall oil supply.
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