ATA urges Bush to release oil from the Strategic Petroleum Reserves
Only hours after a “solidarity shutdown” in Pennsylvania the American Trucking Associations delivered a letter to President Bush urging him to release oil from the SPR (Strategic Petroleum Reserve). It is expected even more trucking shutdowns will follow as high diesel prices are pushing trucking companies and owner operators out of business. The first shutdown was carried out in Vandergrift, PA with about 35 trucks and 60 people in attendance and was covered by Landline Magazine. Before this shutdown discussions have been going on at places like the Social Truckstop debating a nationwide trucking shutdown to save the entire trucking industry.
With those discussions brewing and small shutdowns taking place the ATA President and CEO Bill Graves on Monday released a press release and delivered a letter that urged President Bush to release oil from the Strategic Petroleum Reserve in an attempt to break the current run-up in crude oil prices before they further constrain the U.S. economy.
In a letter to President Bush, Graves cautioned that skyrocketing diesel prices will magnify the current economic slowdown and delay an economic recovery. Graves advocated for the Bush Administration to implement policies that will ensure a steady, affordable supply of oil for the nation’s 3.5 million truck drivers and all American consumers.
“We are very concerned that out-of-control energy prices will greatly magnify our current economic slowdown and delay our economic recovery,” Graves said. “If households have to spend their forthcoming tax rebate checks on energy, the stimulus will be significantly limited. The more consumers spend on fuel the less they have to spend on other goods or services.”
Rising fuel prices have been a significant burden on the trucking industry. The industry is on a pace to spend an unprecedented $135 billion on diesel fuel this year, $22 billion more than a year earlier.
The trucking industry is experiencing the highest prolonged fuel prices in history. Historically, fuel represented the second-highest operating expense for motor carriers. For many motor carriers, however, fuel is surpassing labor as their largest expense. This ultimately will increase the cost of everything delivered by truck.
More than 750,000 motor carriers in the United States transport nearly 70 percent of tonnage carried by all modes of domestic freight transportation.
To view a copy of the letter please go to: Letter from ATA CEO to President Bush Urging SPR Release.
The American Trucking Associations is the largest national trade association for the trucking industry. Through a federation of other trucking groups, industry-related conferences, and its 50 affiliated state trucking associations, ATA represents more than 37,000 members covering every type of motor carrier in the United States.
SOURCE: American Trucking Associations (ATA) and Social Truckstop
American Trucking Associations (ATA) Clayton Boyce, 703-838-7902
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What should happen is that the federal government should get out of the fuel storage business (sell off the SPR lock, stock and barrel). Of course that would eliminate the strings that motivate the trucking lobby to beg President Bush for favors.
I appreciate the problem that high energy prices are causing our economy but our strategic reserve has nothing to do with the problem…check how much we are adding to the reserve
each day vs. how much oil we consume in the US each day…it is insignificant.
Releasing oil from the reserve likewise will have no impact on
retail prices. Again, the reserves are a minor part of our
consumption.
This reserve should be maintained for real emergencies, like war or equivalent events.
I don’t have any solution to our energy problems and apparently no one else does either…we have fallen into the trap set by the middle east cartel and we will have to muddle through until some technological breakthru occurs…and it will but when it will is unknown.
good points
What should happen is that the federal government should get out of the fuel storage business (sell off the SPR lock, stock and barrel). Of course that would eliminate the strings that motivate the trucking lobby to beg President Bush for favors.