Politics, Real World Topics, Social Issues NEWS
Fuel Prices Go Beyond The Pump
Published by MoonDog on June 10, 2008
Trucking companies across the nation got some good news for a second consecutive week as the national diesel average fell slightly to $4.692 per gallon, after an all-time high of $4.723 was reached two weeks ago.
Ten years ago I was a terminal manager for a carrier and at that time the average cost of a gallon of diesel was $0.92. We were moving truckloads to California for a $1.25 per mile; today we move loads to California at $1.40 per mile but with an additional $0.65 per mile fuel surcharge attached to the line haul rate.
There isn’t a destination from Memphis where we will move a load for anything less than a combined $2.00 per mile, and in some cases like Texas, Florida and the northeastern states, those rates increase to $2.50 per mile or more.
I don’t mean to throw a lot of transportation lingo at you but the point I want to get across is the rising fuel costs have far-reaching effects beyond what you pay at the pump. On the surface we all realize that but there is one interesting point some of you may not have given any thought.
Considering our troops are in Iraq sitting atop the world’s second largest oil reserves, it seems rather odd that the very fuel we need to power our nation’s military might become so expensive it precludes us from being able to meet our operational needs.
The clueless politicians in Washington don’t have the answers to address our nation’s current fuel crisis. They attempt to engage us with mindless chatter but the fact remains none of them have the answers. What’s even more deflating is the fact the current presidential nominees, John McCain and Barack Obama, may very well be the most clueless.
Fuel prices have risen because of several contributing factors, namely our weakening economy due mainly to the devaluation of the U.S. Dollar, the exploding economy in China and our refusal to harness our nation’s own natural resources.
But I’ll take that one step further and point the finger at you, and me. It’s our own damn fault. The hand writing has been on the wall for six years and we did nothing to stop it. Just as we did very little to nothing after the 1973 oil embargo, our nation has become blinded to realities. Well, the realities Europe has known for decades have found there way to the USA.
A few weeks ago Jevic Transportation, a trucking company with 1500 power units (tractors) went out of business. Jevic was the 71st largest truckload carrier in the U.S. and the company’s demise meant several thousand people lost their jobs. How many people in this country are going to lose their jobs as a result of the rising fuel costs?
We’ve reached a point where someone earning $35,000 and trying to pay a mortgage isn’t going to be able to work because they can’t afford to refuel their vehicles every week. It’s a sad commentary when the most powerful nation on this earth, sitting on top of natural resources that could make us energy independent, has allowed this to happen. There are no excuses.
People like me working in the transportation industry have their finger on the nation’s economic pulse and I’m telling you it is going to get worse. But that doesn’t suggest we can’t do something about this – we can!
If you don’t have to go anywhere, don’t. If you can carpool, do it. If you can walk or ride a bike, do so. While we’re doing our part to help reduce fuel consumption turn your attention to these idiots in Washington.
All of us write about the mundane every day and we post comments on blogs across the net. Turn that same power of the pen into something meaningful and tell your representatives and senators to achieve a resolution.
Remember this is our government, not theirs, not the lobbyists and not the special interest groups. Take one day a month and due your part to make a difference because it’s our collective futures at stake.
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Rod on Tue, 10th Jun 2008 08:28
Hey again MoonDog-
Couldn’t agree more with this piece. I can’t imagine what it’s like in the transportation industry now. I work in the homebuilding industry, so I’ve also got a finger on the economic pulse, and it ain’t pretty. I’ve worked here not quite a year, and already there have been about 70 people laid off, just in our office here.
I don’t understand why we can’t just flip the bird to the environmentalists and get into Alaska to solve our energy problem. I’m not saying I’m against wildlife and all that, but I think right now those people have lost sight of priorities (if they ever had it to begin with).
I can’t ever remember a time when politicians were this dumb either, and you want to talk about another group with lost focus on priorities. Until some people take office that actually know what is effecting everyone’s daily lives, this problem will continue.
MoonDog on Tue, 10th Jun 2008 12:06
Rod I too am all for a green world, but not at the expense of paying $3.65 a gallon for the benefit of an owl.
Other countries with fewer resources are developing energy strategies that will help reduce their dependence on foreign oil. We have everything we need to be independent. In fact, we can sell energy and make a profit!
The morons in Washington are driving us into third-world status and they act like they don’t know it. They are taking my country away from me and I’m going to do my part and prevent them from doing it.
ShooterB on Tue, 10th Jun 2008 12:40
Good post. If you really want a scare, look up the backgrounds of those in U.S. Congress…and see how few of them have a background in science or economics – the two areas of expertise that could vastly improve this country.
As you implied, instead of waiting for someone else to bail us out…we can each do our part.
But riding a bike, do you realize it’s 100 degrees outside?
MoonDog on Tue, 10th Jun 2008 12:59
Shooter, most of the banana heads in the House and Senate are attorneys. Nothing against my attorney friends but since when is a lawyer qualified to address our nation’s most pressing issues?
It’s hot, especially here in the south. We’ve already reached the mid-90’s. At least we’re getting more rain this year. A lot more in fact.
We need to come up with a campaign slogan.
Rod on Tue, 10th Jun 2008 13:16
$3.65? Where are you getting gas? Cuz I’m on my way there, haha! I saw it for $3.99 on the way to work today.
Seriously though, I’m with you about our government. I’d never thought of it like that, but you’re right. And of course in third world countries, there’s more crime, poverty, and all that, which all our politicians claim to have the answer to.
MoonDog on Tue, 10th Jun 2008 13:29
The South has the cheapest gas in the U.S. At least the southeast. We’re close to New Orleans and most of the fuel we consume floats up the river about 400 miles.
These people in Washington need to step up to the plate and start doing what’s best for the nation, not what’s best for a few. Last time I checked, that’s what they are supposed to do.
What really pisses me off is the fact there was a group of people stupid enough to put some of these idiots in office.
tophatal on Tue, 10th Jun 2008 13:42
Moon Dog
When you consider that quite recently two of the three nominees for the candidacy of President. Had proposed a summer free tax exemption with regard to gas in order to alleviate the pressures on the consumer. It led me to believe that they themselves have no answer from this predicament at all.
The traders , producers and obviously the governments around the world are all profiting from this . But at the same time the economies of not only the developed but also the under developed are now teetering on the brink .
As transportation costs rise so too will the price of all other commodities. Especially those that are flown or driven cross country. There’ll be no respite in sight until a real recession begins to hit home hard.
What I’d like to know is how is it that a country like Brazil can now be almost self sufficient and not have to rely petroluem to meet the majority of its energy needs ? And whilst they were researching and ploughing investment into things such as soy and other sources of energuy we just stood pat and basically laughed at our neighbors to the South ?
Is this administration and its predecessors that arrogant and asinine as I now believe them to be ?
You don’t need to be a rocket scientist to see that we’re now bereft of ideas as to how best to deal with the situation. But yet you’ve assholes within the administration now trying to tell many of the oil producing countries that they ought to be producing more. And at the same time you’ve got Bush also calling for economic sanctions on Iran ?
He ought to pull his head out of Cheney’s as*s and see what’s going on .
Once again he’s proving how out of touch he really is when it comes to the economy as well as international matters and foreign policy !
tophatal …………
MoonDog on Tue, 10th Jun 2008 15:33
While I agree the current administration has been a complete failure, it’s gone well past these last eight years.
We’ve known ever since the 1973 oil embargo this could happen. We’ve got enough coal in this country to last 500 years and we haven’t begun to harness it’s potential.
We have enough oil, approximately 1 trillion barrels to more than cover our needs while we develop alternative fuels.
I point the finger at the environmentalists and the politicians in their pockets. We haven’t built and oil refinery or scratched the surface of known oil reserves because of them. The oil companies aren’t to blame because they’re begging to tap the known reserves.
Finally, I’d be willing to bet if this nation announced a comprehensive energy plan that encompassed oil, coal, nuclear and hydro-electric energies, the price of a barrel of oil would drop dramatically.
tophatal on Tue, 10th Jun 2008 16:09
Moon Dog
The blame belongs on both sides of the argument. The EPA as well as the refiners and oil companies could’ve easily come to an agreement that would be amenable to all. Whereby there’d have been refineries built to meets the country’s needs and storage capabilities. Instead they wanted nothing but to have a stare down and the proverbial pis*sing contest as to who’d have the last say.
I concur that the previous adminisntrations are as much to blame as the incumbent. But this administration has shown very little leadership or will back up its words. They’re beholden to the grandiose schemes and largesse of the likes of Exxon Mobil , Conoco Phillipps , BP, Valero and others.
And whilst announcing that they might seek to make a comprehensive energy plan. You and I know that’s not about to happen anytime soon. And what little difference that it’d make would not make the price of a barrel of oil drop all that precipitously. That’s not the way that it works.
We’re still years behind from even getting anything like this off the ground. That’s how far behind the eight ball that we actually are !
Hell we’ve got countries in Scandinavia that are doing far more than this country had ever envisaged.
The problem stems from the lack of innovation and a willingness by the government to back up its words with deeds and action !
And all the bulls*hit in the world can’t tell me any different. The Commerce and Energy Depts are absolutely clueless at this juncture.
tophatal …………