Washington, D.C. – Today, SAFE released its Energy Security Fact Pack for Q2 2015. This edition shines a light on the proposed Phase 2 medium- and heavy-duty vehicle fuel economy standards and their potential to generate significant oil and fuel savings for the United States.
While medium- and heavy-duty vehicles comprise only 7 percent of vehicles on the road, they use approximately 30 percent of the energy in the transportation sector. SAFE analysis of the proposed Phase 2 standard for medium- and heavy-duty vehicles suggests that the rule could reduce consumption by 0.77 million barrels per day (mbd) by 2040.
“Big trucks and other heavy-duty vehicles are responsible for a large and growing portion of the United States’ oil demand,” said SAFE President and CEO Robbie Diamond. “These proposed fuel economy standards could reduce fuel consumption by more than 20 percent by 2040 in a sector that’s the workhorse of our economy. As a result, the country will be better protected from the volatility of the global oil market and its historically wild and damaging price swings.”
On the international stage, global oil supply continued to grow despite a glut of crude, with the United States leading the charge with an increase of 1 mbd year-over-year. The second quarter of 2015 saw oil prices rise slightly, with Brent ending the quarter at $60 per barrel (bbl) before falling to below $50 today. While gasoline prices have increased and decreased in tandem, they remain more than 20 percent lower than this time last year.
Domestic demand has increased in response to suppressed prices. Moreover, total vehicle miles traveled had its fifth consecutive quarter of positive growth, increasing by 160 million miles in the second quarter of 2015 compared to 2014.
Global oil supply outages remained steady quarter-over-quarter, but have increased in recent months from 3 mbd in April to 3.3 mbd in June, mainly due to outages in Libya and non-OPEC producers. Despite these interruptions, global supply growth continues to outstrip demand, though consumption is increasing, growing by approximately 1.4 mbd year-over-year in Q2.
While electric vehicle sales have been sluggish so far this year in the face of lower gas prices, the number of alternative fueling stations nationwide increased more than 33 percent through the end of Q2 2015 versus 2013. Ninety one percent of these were for electric vehicle charging. Automotive manufacturers also continue to announce plans to deliver more plug-in electric vehicle models to consumers.
To download the Q2 2015 Fact Pack in its entirety, please visit www.secureenergy.org.
About Securing America’s Future Energy (SAFE)
Securing America’s Future Energy (SAFE) is a nonpartisan organization that aims to reduce America’s dependence on oil and improve U.S. energy security to bolster national security and strengthen the economy. SAFE advocates for expanded domestic production of U.S. oil and gas resources, continued improvements in fuel efficiency, and in the long-term, breaking oil’s stranglehold on the transportation sector through alternatives like natural gas for heavy-duty trucks and plug-in electric vehicles. In 2006, SAFE joined with General P.X. Kelley (Ret.), 28th Commandant of the U.S. Marine Corps, and Frederick W. Smith, Chairman, President, and CEO of FedEx Corporation, to form the Energy Security Leadership Council (ESLC), a group of business and former military leaders committed to reducing the United States’ dependence on oil.
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