The transportation industry relies on oil to keep its road, rail, maritime and air networks operating. As time goes on oil is becoming increasingly scarce resulting in price increases. This research essay will delve into the effects of rising oil prices will have on the transport industry along with solutions.
Oil is the main driving force behind the transportation industry as no other alternatives burn as cleanly, or are as safe to transport. Bio fuels have created a niche in the market but unfortunately there is no feasible way to harvest enough biofuel to meet the worldwide oil demand. When oil first became a commercial operation in the 1860’s there were two wells in America that produced a total of 6,500 barrels a day; at the time this was enough to accommodate for demand worldwide. In more recent times we are extracting around 70 million barrels of oil every day to keep up with demand (Tabak 2009). The rising cost of fuel generally comes from development in extraction technologies or recalculated estimates of remaining deposits within the reserves. The rate of discoveries of large oil and natural gas reserves has been on the decline for the past 40 years (Wilson & Burgh 2007).
Fuel is the highest operating expense faced within the transportation industry. Without smart planning companies may become unable to remain competitive or economically viable in the market due to the rising cost of fuel (Sowinski 2013). In the late 20th century additional costs would generally be pushed onto the customer but as competition has increased in the transportation market this would lead to the customers taking their business to cheaper firms that offer the same service. This is where the role of the transport manager comes into ...
... middle of paper ...
...s in Victoria’, BP, Viewed 20th March 2014
Motormouth 2014, ‘Fuel Prices And Petrol Prices Australia’, Motormouth Pty Ltd, Viewed 20th March 2014
Sayigh, A 2012, ‘Comprehensive Renewable Energy’, Elsevier Ltd., Amsterdam, The Netherlands, Viewed 20th March 2014, Science Direct database.
Nugaras, J, Radzeviciene, A 2012, ‘Networking in the transport sector: inter-firm vs intra-firm perspective’, Science – Future of Lithuania, Issue 2, Volume 2, pp. 69, Viewed 20th March 2014, Academic Onefile Database.
Australian Department of Resources, Energy and Tourism 2012, ‘FUEL FOR THOUGHT: Identifying potential energy savings in the Australian road and rail sectors’, Viewed 22nd March 2014
The Australian Broadcasting Corporation’s (ABC) news article titled, “Petrol price soars, more pain at the pump ahead,” discusses the rise in the price of fuel and its effect on Australian motorists. This article also discusses how this rise in the price of fuel occurred, mainly focusing on its effect on consumers (Janda 2014).
The recent surge in the cost of heating oil, diesel fuel, and gasoline in the United States has had significant impact on many sectors of the U.S. economy, but most importantly it has had quite a devastating affect on the trucking industry. This is important due to the fact that nearly “70% of U.S. communities rely solely on trucking for their supplies” (“ATA” 23). If the government continues it’s trend of non-intervention and refuses to place pressure on OPEC, the prices will continue to soar well over the two-dollar mark, and cause the trucking industry as a whole to shut down bringing the U.S. economy to a grinding halt.
Our firm mostly caters to Value Seekers and Families, who are particularly interested in vehicles such as economy and/or truck. Based on this argument we can assert that the higher the cost of operating a vehicle, the more likely people will seek alternative transportation options. While it has already been assumed that the price of gas will stay constant for the first few years in the StratSim world, other attributes that may be of particularly interested to our buyers are safety
To understand the increase in gas prices, one must first identify the distribution of dollars paid per gallon at the pump. According to the U.S. Energy Information Administration (eia) in 2010, the annual average paid at the pump consisted of 68% crude oil, 7% refining, 10% distribution and marketing, and 15% taxes (see Fig.1). This shows an increase of crude oil over the 2000-2009 average of 51%. (e. I. Administration)
Federal Trade Commission. July 2005. Gasoline Price Changes: The Dynamic of Supply, Demand, and Competition. Retrieved from http://www.ftc.gov/opa/2005/07/gaspricefactor.htm.
People need oil for daily life and work. Since World War II, oil had caused many serious problems in United States and throughout the world. Remarkably, economic and social problems were heightened by the emerging energy crisis. By 1974, the United States gained a third of its oil by importing from the Middle East.[ James Oakes, et al. Of The People: A History Of The United States (Oxford University Press, 2011), 881.] When the heavy war between Israel and Arabia erupted, the United States was not able to gain enough petroleum because it supported Israel. To show the dissatisfaction with the United States’ support to Israel, Arab members of the Organization of Petroleum Exporting Countries even raised oil prices. “Overnight, OPEC raised the price of its oil from $3 to $5.11/By ”[ Merrill, Karen R.. The oil crisis of 1973-1974: a brief history with documents. Boston: Bedford/St. Martin's, 2007, 22.] Not surprisingly, the United States was strongly affected by the oil shortage and the the high price of oil. Homes and businesses could not easily solve the serious problem. Drastic protests occurred in many states such as Arkansas, New York, and Florida because a huge number of drivers could not accept the high price of gasoline.[ Merrill, Karen R.. The oil crisis of 1973-1974: a brief history with documents, 1.] Transportation was decreased in order to use less oil. Faced to the great challenge, several presidents analyzed the seriousness about the oil crisis and provided effective ways of reducing the use of oil.
...th a growing proportion of elderly people. Global market dynamics and innovations in big data and social networking are transforming the business strategies of companies everywhere—and forcing them to rethink fundamental rules of engagement. For better or worse, the future entrepreneurs will have to surface as one the most disruptive forces. As big data pushes for alternative ways of working – proactive solutions that drive information must quickly figure out which new policies and tools can be utilized most effectively. This grants enormous opportunities for key technological breakthroughs that will be needed for the next generation of transport.
Scharlemann, Jorn et al. “How Green Are Biofuels?” Science AAAS. 2009. 21 May 2010. .
The parcel service industry is dominated by four carriers that make up 95 percent of the industries domestic revenue. Over the years, the industry has had an increase growth rate over time and an increased role in the economy. This is due to the way manufacturing companies are now operating. With the growth of the parcel service ...
“The American consumer is wedded to his automobile in its present form as he is to no other product” (Orr, 1967, p. 51). Citizens in every country around the world depend vehicles to provide essentials and luxuries in a carefully choreographed, just in time, economic infrastructure that is powered by one thing, petroleum. Currently, consumers can refuel their gasoline vehicles in a matter of minutes and drive anywhere they want for as long as they want with little concern about their next fuel stop. In 2009, transportation accounted for 72% of U.S. petroleum consumption meeting 94% of transportatio...
Transportation Management Systems, also know as TMS, is a software application designed to manage and optimize inbound and/or outbound transportation operations (Transportation Management Systems). A TMS tends to sit in the middle of an ERP and a WMS module. Implementing TMS could provide your organization with potential benefits such as warehouse efficiency, inventory reductions, cash flow improvements, and new delivery capabilities. In regards to the future, TMS is on the verge of evolution, with improvements in the forthcoming to look forward to such as cloud-based TMS, full integration with pioneering technology, and the use of ‘meta intelligence’ to leverage TMS (The Future of Transport Management Systems). Within my essay,
With the current spike in oil prices, many American consumers have asked, 'what is going on?' In order to fully understand the current situation and how it is affecting the economy one must look at a variety of factors including: the history of oil crisis in the United States, causes of the current situation, and possible outcomes for the future. It is only after meticulous research in these topics that one is prepared to answer the question, 'what is the best possible solution to the oil crisis?'
Transportation is an ever-growing sector in our society today. Because of the bustling city life we have today, most of us use transportation means to get from one place to another. Generally, road transportation comprised of nearly 40% of all energy sector emissions. While road transports in 2012 were up by 68% over 1990 levels, the trend has been flat ever since 2007. This flat trend in transport activity combined with improving efficiency. Transport of passenger and freight by rail is less carbon intensive than by road (Ministry of Business, Innovation and Employment New Zealand 1 and 6)
b. Opportunities and Threats: The increase in fuel prices is likely to continue into the distant future, requiring either reduced services to control costs or new technologies to accommodate. The threat of low cost, flexible companies entering the markets in a variety of places, cutting into market share in numerous small areas, taken as a whole, threatens to harm larger c...
In today's changing business environment, information technology plays an incredibly important role in almost every aspect of the day to day life of almost every industry. The transportation industry is, of course, no different. From the transport of goods from manufacture, to warehousing, to retail, to end-user, the industry relies on information technology to get things done. The transportation of people is the exact same; incredibly important to get done yet impossible without the impact of information technology.