As an add-on to this previous USAF cost per flying hour post, there is this piece which gives you a good summary of the challenges the USAF has paying for fuel.
1 comment:
Anonymous
said...
USAF should have executed a decisive strategic plan at least a year ago to dig it's own Strategic Petroleum Reserve (SPR) wells, perhaps 3-4 separate and dispersed wells, to fill with WTI crude. Perhaps something as much as 100 total million barrels for good measure.
That's nothing, only about $8bn-$10bn in 'hedged' physical strategic oil reserve storage.
Allocate around $1 billion for constituting the commercially available wells (perhaps split between retired wells in Louisiana and new wells ready for development in Mississippi) and the relevant facilities. Maybe another $1bn for DoD specialized infrastructure and MILCON.
DoD could further go in say, 50-50 with private refiner to construct an additional refinery somewhere in the south or mid-atlantic? Maybe another $4bn in strategic investment?
USAF could/should be buying massively at times such as today at cheap $80 crude! Send to refinery for DoD JP fuels as hedge, whenever crude hits over say, $120.
Not a panacea, but arguably a worthy strategic investment. In my opinion at least.
1 comment:
USAF should have executed a decisive strategic plan at least a year ago to dig it's own Strategic Petroleum Reserve (SPR) wells, perhaps 3-4 separate and dispersed wells, to fill with WTI crude. Perhaps something as much as 100 total million barrels for good measure.
That's nothing, only about $8bn-$10bn in 'hedged' physical strategic oil reserve storage.
Allocate around $1 billion for constituting the commercially available wells (perhaps split between retired wells in Louisiana and new wells ready for development in Mississippi) and the relevant facilities. Maybe another $1bn for DoD specialized infrastructure and MILCON.
DoD could further go in say, 50-50 with private refiner to construct an additional refinery somewhere in the south or mid-atlantic? Maybe another $4bn in strategic investment?
USAF could/should be buying massively at times such as today at cheap $80 crude! Send to refinery for DoD JP fuels as hedge, whenever crude hits over say, $120.
Not a panacea, but arguably a worthy strategic investment. In my opinion at least.
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