Used Semi Trailers will put the spotlight on gas prices and the rumors circulating of $5 a gallon predictions.

Will we be facing $5 a gallon for gas?

With the turmoil in the Middle East as pro-democracy movements seek reforms and greater equality for their people, the threat to oil production and US oil supplies is readily apparent.

Americans can expect gas prices to rise as high as 18% to the $3.75 level over the next few weeks (currently gas is around $3.17 a gallon). This rise is due to the recent concerns over Middle East supplies given Libya and more importantly, Bahrain have started their people’s reform movement and civil unrest.  In Egypt, some semblance of control has been asserted by the military in what appears to have been a reasonably peaceful hand over of power by the outgoing Mubarrak.

Will we get to $5 a gallon?  Not likely, at least not for some time to come yet and only if conditions significantly deteriorate beyond the current situation.

One reason for the cushioning of events in the Middle East and the price you pay at the pump is that there is a global glut of oil.  Saudi Arabia alone is sitting on a surplus of 4.5 million barrels, so supplies would need to be interrupted for quite some time and on a scale much larger than at present for there to be an impact worthy of $5 a gallon pricing.

Another reason why gas pricing is not likely going to reach $5 a gallon is that Libya, the latest country to undergo civil discord, has little impact on the US oil situation.  Most Libyan oil goes to the European Union, though Bahrain is of greater concern.  Bahrain has a Sunni and Shia population which has been warring and in conflict for over 1,000 years and whilst it does not have any direct impact on the US oil situation, it is the effect it may have on neighboring Saudi Arabia which causes concern.

Another reason to be relaxed on the doom sayers’ predictions of $5 a gallon gas is that Canada and Russia are both contributing production to US oil demand.  This is diluting the impact of the Middle East uprisings, which while still cause for concern are not cause for panic…yet.

There is also an issue with the primary US oil index, the Western Texas Intermediate (WTI), which is a highly volatile index but which does not accurately reflect the global demand for oil. It is the global demand for oil which has the most direct impact on US gas pump prices, and the Brent Crude Index is a far more accurate indicator than WTI.

Next time you hear of WTI up or down $5, just remember it is not the end of the world at the gas pump.

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Fleet Fueling 

Owner-operators who are concerned about the rising cost of fuel may be able to find an answer in Atlanta, Georgia this September. Advertised as an event that brings both long-haul private and government fleets together with other aspects of the industry, the fourteenth annual OPIS Fleet Fueling Conference will address the future of fuel prices in addition to what can be done to minimize fuel usage today.  

Boasting nineteen educational sessions that cater to both owner-operators and fuel distributors, the conference is intended as educational industry collaboration with the goal of keeping both cost and fuel usage down. Some of these workshops include presentations on the future of the transportation industry in light of the peak oil problem, given by Transportation Research and Marketing President Forrest Baker and risk management assessments for fuel wholesalers and retailers, given by Brian McClain, the CEO of Choctaw Nation Travel Plazas. In addition to the workshops and keynote address, the conference will also feature an exhibition with booths from a variety of trucking industry sponsors.  

While September’s event will mark the fourteenth OPIS conference to be held in response to the issue of fuel usage and cost, the organizers of this year’s event understand that the problem is now worse than ever.  As fuel prices climb, some owner-operators have had to throw in the towel, simply unable to compete with the price hike.  Faced with the high prices, some trucking companies have begun to charge flat shipping fees, which have frustrated even their most loyal customers. While truckers may spend their days cursing the man or woman behind the fuel desk, the issue has also impacted the lives and businesses of fuel wholesalers and retailers. High prices cause truck stops, who make most of their money from the sale of non-fuel items, to loose profit, and some have turned to laying-off workers.  

Because of the seriousness of the fuel crisis, the OPIS Fleet Fueling Conference organizers have pledged to make September’s meeting one of the most profound in fourteen years. For the first time, the heads of transportation companies that manage to make astounding profits even in light of the fuel crisis, are sharing their secrets for the first time. Similarly, the conference symbolizes fuel usage reduction as a combined effort of the long-haul trucker and the fuel retailers.  

While the conference might not be the end to the peak oil problem and the rising cost of fuel, owner-operators who want a little insight into how they can make their dollar take them further should expect valuable information from the conference. Interested truckers can visit the OPIS web page. 

Why Are Fuel Prices So High?

By now, you’re certainly aware of the high fuel prices that have skyrocketed at truck stops and other diesel providers everywhere. You’re probably so aware of the prices that you’re frustrated, complaining to your boss, calling your senator, or expressing your feelings on the Internet. But why are fuel prices so high?

Though taxes, war with Iraq, and other government decisions are certainly responsible for some of the price hikes, another important reason why diesel prices are so high is the peak oil problem.

Because oil is a non-renewable resource, produced from fossil fuels, a time must come when that oil, which is used to produce diesel, runs out. According to M. King Hubbert, who drafted the peak oil theory in 1956, that time has already come. Hubbert theorized that the United States’ oil production would peak, or get to the point where production would dramatically slow down, between 1950 and 1970. Though some agree with Hubbard’s assessment that oil production in the United States has already peaked, all agree that the peak oil problem is a major challenge since everything from food production to the transportation industry relies on oil.

But the peak oil problem is not only a problem for the United States. Though some believe the United States, because of its vast economic dependence on oil, will feel the effects of the peak oil problem most severely, the rest of the world will eventually reach a production peak as well.

Effects of the peak oil problem for the entire world can be described as soaring food and fuel prices, the virtual shut down of the transportation industry, and an extraordinary cost of heating and cooling homes. Those who live in the United States have already begun to feel the pain of peak oil as food prices continue to rise and diesel makes its way to over $4.60 a gallon.

Though the trucking industry has been hit hard by the peak oil problem, transportation is still one of the most necessary services in the United States. Small businesses and owner operators are struggling to make ends meet because of the soaring price of diesel caused by peak oil, but trucking isn’t about to go away anytime soon. Regardless, the problems caused by peak oil are not making things easier for truckers or trucking companies.

So what is being done about the problem? Drillers are still looking for oil. Some think reserves could be found in Alaska and other areas. Though this might delay the problem, it is not an ultimate solution. A lasting solution to the problem will replace the fuels that are being depleted with fuels that come from renewable sources. Scientists and corporations have been researching these alternative fuels for decades. Certain alternative fuels, like fry oil, are already being used in trucks. In fact, in 1992 the government mandated that fleets that meet certain qualifications operate a certain percentage of alternative fuel vehicles.

Taxes, refining costs, and the climbing price of peaked oil are what cause fuel prices to climb higher and higher. But with continued efforts to reduce fuel taxes, find more oil, and develop alternative fuels, the price of diesel can go down.

Diesel Fuel Alternative

Though your monthly fuel bill is probably now the bill that you’re dreading the most, some agencies are offering breaks on services and products designed to increase diesel efficiency. Even though purchasing a gallon of diesel might give you a headache, some of these services, at a discount price, will help you find an alternative way to save on diesel fuel.

Diesel Boss produces an “air wedge,” a piece of metal fixed to the bottom of the truck designed to reduce road and wind drag and keep breaks and tires cooler. Because the wedge allows air to flow more efficiently under the vehicle, Diesel Boss claims the invention will save a minimum of five percent off of your fuel bill. The Diesel Boss website even provides a calculator, so that each trucker can calculate his or her individual savings with the Air Wedge. Boasting fast and inexpensive installation and no sales tax, the company sells the fuel economy enhancer for $2,995.

For those who would prefer an interior way to increase diesel fuel mileage, certain diesel engine oils promise better fuel economy as a result of a better maintained engine. For example, AMSOIL offers synthetic oils and Donaldson Heavy Duty Filters. According to the Donaldson Company, these filters are guaranteed to deliver twice as many miles between changes as other filters. The combination of high quality oils and filters, according to the AMSOIL website, have resulted in an increase in fuel mileage and a decrease in money dished out at truck stops.

But if you’re looking for a way to save money on fuel without paying for a service or upgrade, you can head to Detroit Diesel. The dealer will be upgrading its 2007 series 60 engines for free beginning July first. According to etrucker.com, research on the engine proved that a new filter improves fuel economy as much as 2.5 percent. The dealer will also offer upgrades in order to improve a vehicle’s shifting and cruise control, according to etrucker.com.

From an “air wedge” to improve diesel fuel mileage by improving air flow to engine oils, filters, and engine upgrades, truckers are finding alternative ways to save money on diesel fuel. But if you’re one who thinks all these additives really don’t do much good, researchers are getting positive feedback when it comes to alternative fuel development.

According to the National Renewable Energy Laboratory, the latest sample of biodiesel has revealed a fuel with a much better quality than its precedents. Although the department admits that the quality of fuel falls short of requirements that would make it a legal fuel to be burned in heavy duty trucks, the formula is getting closer.

So whether you’re looking for a product to increase your fuel mileage today, or you’re waiting for the diesel of tomorrow, options exist to help you make your decision.