Houston Truck Deals delivers news and information on the state of the trucking industry in the Houston area, the state of Texas and national developments which affect us in the South West. Many drivers are experiencing the pain at the pumps with gas bills frequently topping $1,000 and more to fill an 18-wheeler’s fuel tank. The state of the economy and the health of the trucking industry rely on effective control of the rising cost of diesel. This is more than simply the pain associated with a headlining $5 a gallon gas price – the state of the entire recovery and the US economy rely upon dealing with the cost of diesel.
Today, we take a look at the written submissions of the American Trucking Association to Congress in Washington D.C.:
A recent press release told us that the House Natural Resources Committee met with American Trucking Associations President and CEO Bill Graves to discuss the trucking industry’s need for access to affordable diesel fuel, as well as potential new practices for the trucking industry.
Graves, in regards to the rising oil prices, shared with the committee the expected amount the trucking industry projects it will spend on fuel in 2011, and the cost is a good $35 billion dollars more than 2010. Graves explains that this not only impacts the trucking industry, but trickles all the way down to the consumer.
Graves had many suggestions for the committee, all having to do with Congress involvement to make them happen. One is to conserve the oil we have by encouraging the development of gas-to-liquid fuels. Liquefied natural gas (LNG) trucks are double the price of a standard diesel truck, but the potential savings in relation to oil prices is significant. In order to encourage the use of these LNG trucks, Graves suggests that not only should Congress regulated refueling and weight stations to accommodate the LNG trucks, which are heavier than standard diesel trucks. Additionally, Graves says that a tax credit may be necessary to encourage trucking companies to make the change over to LNG trucks.
The LNG truck is not a single solution to the problem, however. Graves says that while this practice would conserve diesel fuel, more oil needs to be made available. Because of this need, Graves suggests that Congress urges the Obama administration to allow more offshore drilling in the Gulf of Mexico to procure more oil. Graves is adamant that the US do more to increase the supply of oil so that fuel costs can be addressed.
While the hearing was technically about gas prices, Graves, as a spokesperson for the trucking industry, was a key person to make a statement, since around seven million Americans currently work in the trucking industry, and the industry is suffering because of the high fuel prices.
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