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CEA Warns Policymakers: U.S. Energy Production Mitigates Global Instability, Helps Transportation Consumers

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"Fueling America's Energy Consumers" Report Details Importance of
Energy to Transportation and How a Lack of Consistent Energy Supply Will
Increase Prices, Hurt Families and Small Businesses

In a new report released today by Consumer
Energy Alliance
(CEA), the organization warns policymakers that
recent geopolitical turmoil and global oil price instability could
negatively affect U.S. consumers and one of the largest energy consuming
industries in the United States, the transportation sector. Geopolitical
events continue to directly affect global energy markets and will
continue to do so in the U.S. if oil is transported into the country
from foreign nations.

The report, titled "Fueling
America's Energy Consumers,"
examines how fuel price increases
negatively affect American consumers and their ability to work, travel,
buy affordable products and pay their bills. High transportation costs
also hurt American businesses by increasing their operational expenses
and overhead – costs which are often passed on to the consumer through
price increases.

The chief mitigating factor helping U.S. families is the on-going U.S.
Energy Revolution and the impact it has on helping to maintain lower
prices for U.S. consumers.

While fluctuations in global energy markets are part of the problem, CEA
believes that policymakers should continue to consider American energy
resources as the solution. Currently, the United States has large
amounts of oil and natural gas resources on federal lands onshore and
offshore, as well as technologically feasible renewable energy
solutions. These resources can be developed safely, efficiently and
responsibly, with great care taken to protect the environment.

Highlights from the report include:

  • Transportation sector is the largest energy-consuming segment in the
    U.S., accounting for nearly 30 percent of the nation's energy use in
    2017. In 2017, oil and natural gas provided approximately 92 percent
    of the total energy used to power these modes of transportation.
  • U.S. is still importing crude oil and petroleum products from other
    nations to meet demand. In 2017, the U.S. imported a little more than
    10 million barrels of crude oil and petroleum products per day.
  • In 2017, the average American household spent around $1,765 on
    gasoline. In 2018, the cost of gasoline is expected to increase by
    $133 per household – setting families back nearly $1,900. The U.S. is
    expected to spend nearly $365 million on gasoline in 2018 – an
    increase of more than $60 million since 2016.
  • More than 3.6 million heavy-duty trucks are needed to move the 10.5
    billion tons of freight transported across the nation on an annual
    basis. Moving that freight requires more than 15 billion gallons of
    gasoline and nearly 39 billion gallons of diesel fuel every year. In
    2015, the trucking industry paid more than $105 billion for diesel
    fuel.
  • Approximately 50 to 60 percent of a vessel's expenses are allocated
    for fuel costs. A typical Trans-Pacific cargo carrier can expect a
    fuel bill of over $3.3 million for a 28-day voyage. With the expansion
    of global markets, the use of cargo ships will continue.
  • A one-cent increase in the average price of diesel fuel can add
    another $350-$370 million per year in fuel costs for the shipping
    industry – costs which are felt across the supply chain.
  • The price of jet fuel has increased over 58 percent from June 2017 to
    June 2018. For every dollar-per-barrel increase in the cost of oil,
    the airline industry's fuel bill goes up by $420 million.

"This report highlights the often-overlooked fact that oil and natural
gas provide the majority of energy used in the transportation sector,
and when the price of oil rises due to external factors like supply
disruptions and geopolitical events, that means the price of
transportation fuels also rises," CEA President David Holt said. "While
the United States has been undergoing an energy revolution over the last
decade, keeping prices much lower than they would otherwise be, it is
still importing a fair amount of crude oil and petroleum products from
other nations – making it reliant on imported oil to ensure American
consumers and businesses meet their transportation needs."

Holt added, "Americans have witnessed this firsthand during this
summer's hot vacation months, with the cost to fill up pinching not only
consumers' wallets at the pump, but also in the air as airlines adjust
for the rising cost of jet fuel through higher airfare. For most of
these families, reducing the amount they spend on gasoline is not an
option. All too often, this usually means choosing between filling up on
gasoline for work and other day-to-day commutes or paying for household
essentials, such as groceries or rent."

"Everyone from working mothers trying to pay their bills to small
retailers who spend a large percentage of their revenue on fuel costs
must have a stake in making sure we meet our energy needs, and it needs
to be a top priority for our policymakers to ensure we do," Holt
continued. "Any policy that helps directly expand U.S. energy
development and provides environmental protection is good for American
families and businesses. By continuing to support sensible energy
policies that responsibly utilize our abundant and affordable domestic
energy resources, we can provide further relief to American families and
businesses."

To view the report, click
here
.

About Consumer Energy Alliance

Consumer Energy Alliance (CEA) brings together families, farmers, small
businesses, distributors, producers and manufacturers to support
America's energy future. With more than 500,000 members nationwide, our
mission is to help ensure stable prices and energy security for
households across the country. We believe energy development is
something that touches everyone in our nation, and thus it is necessary
for all of us to actively engage in the conversation about how we
develop our diverse energy resources and energy's importance to the
economy. Learn more at ConsumerEnergyAlliance.org.

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