Intercity freight transportation accounts for about 25% of the transportation fuel use in the United States. Because they are petroleum-dependent, trucks, railroads, aircraft, and marine vessels are vulnerable to disruptions in oil supplies. In modeling the effects of rising fuel prices during an oil shortfall, it was found that the modal preferences of shippers will shift - generally in the direction of aircraft to trucks, trucks to railroads, and railroads to marine vessels - as the higher fuel coats are reflected in higher freight rates. Allowing fuel prices to rise to an equilibrium or market-clearing level not only causes a shift to more energy-efficient modes of freight transportation, but it also provides the carriers with an incentive to conserve fuel in order to reduce costs. A maximum reduction in fuel demand of 4 to 8% (depending on the mode) can be achieved by freight carriers in an emergency without drastically curtailing service and retarding economic recovery. The Strategic Petroleum Reserve (SPR) is considered to be a significant national asset that would distinguish future fuel-supply interruptions from those of the past. Recommendations are provided to supplement reliance on equilibrium fuel prices and the SPR during any future petroleum shortfall. (ERA citation 08:015231)
Energy Contingency Planning for Freight Transportation
1982
141 pages
Report
No indication
English
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