Wednesday, June 15, 2022

Oil Prices Still Climbing While US Production Grows

 US oil production is 20% higher now than in 2017 and climbing. Unfortunately it’s below pre-COVID levels and that’s keeping oil prices high—and the reduced amount of Russian oil in the global market.

Despite this, our fleet (and personal) costs/mile might only be slightly higher than they’ve been for the past 50 years because of the improvement in vehicle mileage.

So what else can we do? Reduce demand to ease supply pressures. 66% of oil is used for transportation. Next largest category at 28% is industrial usage (plastics, asphalt, etc). 

This means we need to improve logistics and workforce mobilization—not just commuting but also team deployments (“mob”/“demob”).

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