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Oil Transportation Needs to Be a Domestic Business

By Dr. Robert L. Gordon | 05/12/2015 | 8:48 AM | Categories: Current Affairs

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Energy—especially oil--is what moves commerce globally.  Without oil, there is no power for the world of business.  The recent crash of the price of oil surprised consumers and altered the landscape of business.

The shale oil boom and the expansion of oil fracking in the US has changed the demand for oil. In turn, this domestic boom in oil production has created a demand for oil transportation. The cheapest way to transport oil is by ship. Of course, not all areas of the US are accessible by tank vessels; this still leaves plenty of demand for trucks and rail. 

Some politicians, such as Senator McCain, feel that oil should be transported by non-US vessels.  This concept makes as much sense as hiring truck drivers in China and bringing them to the US to drive petroleum trucks from a refinery in Texas to a gas station in Arizona.  

There is no doubt that US tankers are more expensive to operate than foreign-flagged vessels. However, there have been fewer US tanker incidents.  Additionally, US companies own and operate US flagged vessels and are accountable when there is a spill or other type of accident. 

British Petroleum (BP) attempted to distance itself from the Gulf spill (Macondo Prospect), but took action in earnest when President Obama made it clear that BP was going to be held responsible to return the Gulf to the way it was

Allowing foreign companies to transport oil outsources jobs that are important to business and are dangerous to the environment if not properly done.  Furthermore, given the importance of energy to the world economy, the US should be moving to be energy independent in every way. 

The US should continue to invest in domestic oil while simultaneously investing in greener energy.  The greener that the US becomes, the less the US needs to purchase foreign oil.  Ultimately, mandating that jobs be performed by other nations is not a good long-term business strategy.  Only by making sure that transportation and energy jobs remain in the US and by seeking greener technologies can the US continue to remain strong in the energy sector.

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About Dr. Robert Lee Gordon

Dr. Robert Lee Gordon

Dr. Robert Lee Gordon is program director of the Reverse Logistics department at American Public University. Dr. Gordon has over twenty-five years of professional experience in supply chain management and human resources. He holds a Doctorate of Management and Organizational Leadership and a Masters of Business Administration from the University of Phoenix, as well earning a Bachelor of Arts degree in History from UCLA. Dr. Gordon has spent more than 14 years teaching reverse logistics, transportation, project management, and human resources. He has published articles on reverse logistics; supply chain management; project management; human resources; education, and complexity. He has also published four books on Reverse Logistics Management; Complexity and Project Management; Virtual Project Management Organizations, and Successful Program Management..



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