Fuel is a big issue to the US military.
While there are some contracts issued throughout the year, the US military typically issues large sets of contracts over concentrated periods. In March 2006, for instance, DID covered over $3 billion in contracts issued within a week. The Defense Energy Support Center estimates that the US military paid more than $10 billion for over 130 million barrels of fuel in 2006, compared to $6.7 billion for 144.8 million barrels in 2004. No wonder energy conservation is on the Pentagon’s agenda, while DARPA researches alternative fuels for B-52 bombers.
It would appear to be that time of year again. Here are all of the American military’s fuel contracts for March 2009, along with descriptions of key fuel types and explanations of the contract language. The final tally was $5,693,595,745 – plus any economic price adjustments, a term we explain below.