Fueling the force
Michael Baskin and Konrad Gessler, War On The Rocks: How Plummeting Fuel Prices and Reduced Operations Could Free Up Billions of Defense Dollars
The U.S. Department of Defense is one of the world’s largest consumers of petroleum, yet it relies on an industrial-era system to plan for volatility in global oil markets. Prioritizing stability over efficiency, the system is not designed to respond nimbly to shocks in the oil market like the one happening right now due to COVID-19. As global oil prices have dropped from $60 a barrel to the $20s, billions of dollars are becoming available within the Pentagon’s fuel operations for the remainder of fiscal year 2020 and potentially heading into FY2021 — a rare positive in a time of significant uncertainty.
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WNU Editor: I am willing to bet that this extra cash has already been spent.