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What’s in store for trucking under the new administration?

What will an Obama administration mean for trucking and transportation? Reviewing campaign promises and voter concerns may reveal what’s in store. At the top of the president-elect’s agenda, say his advisors, is stimulating the economy. A full 62 percent of voters said the economy was the most pressing issue, and eight in 10 said they were worried the economic crisis would harm their family’s future.
     In a number of speeches, Obama said he would boost the economy and create jobs by rebuilding crumbling roads and bridges. Throughout his campaign, the candidate also placed a high priority on energy independence and investing in renewable energy and clean-energy technology. He favors a deep reduction in carbon dioxide emissions, saying he wants an 80 percent drop by 2050. Investing in clean-energy jobs and technologies that help reduce greenhouse gas emissions would cost some $150 billion over 10 years, according to his Web site. Some of that money would come from oil companies, since the president-elect said he plans to implement a new tax on oil company profits.
     Democrats who initially opposed offshore drilling have recently decided to let a ban on offshore drilling expire at the end of the year. Obama says he now supports limited drilling in an effort to lower energy costs and encourage energy independence.
     Meanwhile, with crude oil prices dropping to nearly $40 per barrel, diesel fuel prices were well under $3 per gallon in some parts of the country in late November and heading lower. The last time the diesel price average dropped below $3 was in September 2007; this summer, diesel fuel prices were at a record high of $4.764 per gallon.
     The drop in price helps lower prices across supply chains, with some trucking companies lowering or dropping fuel surcharges. Suzanne Garfield, spokesperson for the California Energy Commission, predicts that crude oil prices will continue the downward trend for a while and then hit a plateau before beginning to climb again in the spring. But she does not expect a reappearance of the over-inflated prices that consumers saw during the summer. “I think what will happen is that crude oil prices will reflect more reasonably the demand that’s going on in the world,” Garfield said.
     In recent years, the demand for diesel has been higher than that of gasoline, making diesel fuel costlier than gasoline. In the United States, gasoline is used mainly for passenger vehicles, while diesel is used in trucks, farm equipment, railcars and generators. In addition, the demand for diesel fuel is soaring in Europe, China and India, causing the price to remain relatively high. In Europe, diesel-powered automobiles have been outselling gasoline-powered vehicles in recent years. In India, more than 30 percent of all new vehicles have diesel engines; by 2010, half of all new vehicles are expected to be diesel powered.