By Julian E. Barnes | Los Angeles Times, July 14, 2008
WASHINGTON – Across the oil-thirsty U.S. military, commanders are scrambling for ways to offset the ever-rising cost of fuel. But their best efforts so far have fallen short.
The military services have found ways to save millions of dollars through conservation, but the price of oil has outpaced the cost-cutting efforts. The Navy, for example, estimates it is saving $300 million a year through conservation. That sounds impressive, until the oil price spike weighs in.
“From July through Sept. 30, we will see a $400 million increase in our fuel bill,” said Navy Capt. Arthur Cotton, the Fleet Training and Readiness Reporting branch head. “So all of those energy savings we have done are wiped out, and then some, just over the period of 90 days.”
Overall, the Pentagon will spend $16.4 billion on fuel this year, up from $5.2 billion in 2003.
The increase has made the wars in Iraq and Afghanistan more expensive, adding $140 million to the cost of operations in Afghanistan and $565 million in Iraq. Military officials emphasize that the increases have not affected combat operations, which cost $12.1 billion a month.
The Defense Department’s biggest fuel users are the Air Force, which accounts for 52 percent of the fuel bill, and the Navy, which uses 32 percent of the fuel.
William C. Anderson, the assistant secretary who oversees energy issues for the Air Force, said commanders are trying to encourage a culture change, so that fuel efficiency is given a higher priority.
“We are getting our teams to think about saving energy while still doing the mission,” he said.
The fuel cost spike has been particularly difficult for the Air Force. In recent years, the Air Force – the largest user of fuel in the federal government – had intended to pay for new planes by reducing the number of airmen. But the increase in fuel prices ate up all of that savings.
Soon, other services might face the same squeeze and suffer the cancellation or delay of vital equipment programs as a result of fuel price increases.
Each military branch must present a draft of its next budget to the secretary of defense by early August. And the comptroller’s office has warned the services that they must accommodate fuel price increases in their budget. Top military officials are mum on what could be in line for cuts.
For now, the Pentagon is predicting fuel prices will decline 4.8 percent next year. But the Pentagon has not been especially accurate with its projections.
The Defense Department originally estimated oil this year would cost $91 a barrel. But military services are paying nearly $171 a barrel.
Air Force officials hope that liquid coal becomes a viable alternative to petroleum and are working to ensure that all their aircraft can use synthetic fuels.