Over the course of 2017, the Organization of the Petroleum Exporting Countries (OPEC) is going to reduce its oil production by one million barrels per day. Since 2010, there has been a surplus of oil produced worldwide which has led to very affordable prices at the pump for truckers, but with the OPEC strategy and political instability in the Middle-East, this looks set to change. This is because America is too dependent on OPEC oil production – about 40% of the oil we import comes from these countries.
Reasonable Fuel Costs
The days of reasonable fuel costs could be at an end if America’s leaders don’t take wise steps soon. And any production cuts by OPEC will have a knock-on effect on the global market. Even if we reduce the amount bought from those countries, the prices would be higher anyway. Prices may have been acceptable for the past half-decade, but they are not likely to stay that way.
Truckers Pay the Price
It is a complex issue, and one that affects truckers disproportionately. The average commercial truck costs $180,000 to run per year – which makes a trucker’s livelihood extremely reliant on a range of factors. Most workers can rely on a stable income setup and market, but the trucking industry depends on the volatile circumstances outlined above. It’s imperative that truckers take heed of the country’s dependence on OPEC and raise the issue with their representatives.
Energy Independence and OPEC
Some measures in recent times have drastically reduced our dependence on OPEC countries. Domestic oil production has surged in the past few years, and in 2014 America temporarily surpassed Saudi Arabia as the world’s biggest producer of oil. New production sources such as shale fields were the drivers of this, and these developments have been very important to the trucking industry. “If the U.S. didn’t have this energy supply, prices at the pump would be completely unaffordable,” according to Bank of America Merrill Lynch.
A few things are clear: America shouldn’t be so dependent on OPEC, the situation in the Middle-East is unstable, and OPEC is determined to increase oil prices again. What we’ve also seen is the success of domestic and international policies to decrease our dependence on OPEC oil.
The Stakes Are High
The stakes are high, but our government has the power to keep America independent. Commercial truckers and fleet managers should take notice of this opportunity – a collective campaign to highlight the importance of this issue is needed to protect our interests. Truckers have the most to lose if America doesn’t actively look for solutions to oil dependency, and right now economic uncertainty makes it more important than ever for our industry. Join with other trucking professionals, and take a stand now.
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