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Title : Drop In Fuel Prices And Reduced Operations Is Freeing Up Billions Of Defense Dollars
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Drop In Fuel Prices And Reduced Operations Is Freeing Up Billions Of Defense Dollars

Fueling the force

Staff Sgt. Aaron Fachini, the 96th Fuels Flight, completes his inspection of the 1.1 million gallon fuel tanks on the 33rd Fighter Wing side of Eglin Air Force Base, Fla May 6. The tanks are inspected daily for operation, leaks and corrosion control measures. The 131 Airmen and civilians of the fuels flight fall under the 96th Logistics Readiness Squadron and were recently named best fuels flight in Air Force Materiel Command. (U.S. Air Force photo/Samuel King Jr.)

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.

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