Fuel & Energy Issues Continue to Get Spotlight in US Military

Sticker shock(click to view full) Following our reports today covering the USA’s recent purchase of $3.15 billion worth of various fuels and almost $230 million worth of electricity over the past week, it seems like a fuller picture is in order. A CNN online article notes that according to the Defense Energy Support Center, the U.S. military consumed 144.8 million barrels of fuel in 2004, spending $6.7 billion. In 2005, it consumed only 128.3 million barrels, but spent $8.8 billion. For 2006, the energy support center estimates the military will need 130.6 million barrels and pay more than $10 billion. Fears of shortages after Hurricane Katrina gave the issue even more urgency, and set in motion a cascade of events from Deputy Secretary of Defense Gordon England’s September 2005 fuel conservation memo, to by a December 2005 directive asking all defense facilities to cut their energy consumption and increase the use of renewable energy sources. The goal is reduce energy consumption by 2% each year, while increasing renewable energy use to 7.5% of total demand by 2013 and 25% by 2025. B-52H: gas guzzler(click to view full) There are certain to be procurement-related implications from these moves up and down […]