ATA Seeks Comprehensive Solution to Diesel Fuel Crisis
The increased volatility and rapid escalation in the price of petroleum and refined diesel have adversely impacted trucking companies. For most trucking companies fuel has now surpassed labor as the single largest operating expense and trucking company bankruptcies are on the rise. Against this backdrop, ATA has been lobbying Congress to enact a comprehensive solution to the energy crisis. The fuel crisis we face today will not be solved by partisan politics. We are not going to be able to conserve our way out of this crisis; nor will increased production provide a total solution. We need to address both sides of the supply/demand equation and we need to ensure that the petroleum futures markets are transparent and free from excessive speculation.
Increase Domestic Supply of Petroleum and Alternative Fuels:
On the supply side, we need to begin drilling in the Arctic National Wildlife Reserve (ANWR), the Outer Continental Shelf (OCS) and utilizing the oil shale resources in Colorado, Utah and Wyoming. These resources have been estimated to contain more oil than Saudi Arabia. We also must look at coal-to-liquids technology and define the appropriate role for renewable resources, such as biodiesel. These domestic sources of energy must be developed in an environmentally responsible manner. In that regard, the production of oil and refined product in the United States is subject to a myriad of environmental controls through air, water and land use permits. Many of these environmental protections are not imposed on the foreign production of petroleum, making domestic petroleum production a more environmentally responsible alternative.
Reduce the Demand for Petroleum:
Increasing the supply of oil is part of the solution, but it is not a total solution. The trucking industry is working to limit the demand for diesel, as well. Trucking companies across the nation are reducing emissions and improving the efficiency of truck transportation. ATA recently announced its six-point environmental sustainability plan for substantially reducing fuel consumption and carbon output (see Sustainability Report for description of these initiatives).
Curb Excessive Speculation:
Experts have been unable to quantify the extent to which the dramatic increase in dollars invested in commodities has translated to an increase in today’s price of oil. ATA has advocated for increased transparency in the petroleum futures markets and for the imposition of reasonable position limits for non-commercial (those that do not actually use or produce oil) investors. While we cannot predict the extent to which this solution will lower the price of oil, it is a solution with no downside.