Oil and the Military

The U.S. military uses between 120 and 145 million barrels of oil per year. These quantities ensure that even small variances in oil prices can cost the military in a big way. Some of the energy related costs to the military include protecting shipping lanes, ports, and fuel delivery convoys, as well as transporting the fuel that provides power at military bases. In total, the Department of Defense estimates that each $10 per barrel increase in oil prices costs the U.S. military an additional $1.3 billion dollars. In some circumstances, military equipment and acquisition programs are adjusted downwards to compensate for rising fuel costs.

Graphic courtesy of Defense News

For additional information about national security and oil, please see:
Matthews, William. “DoD Seeks New Energy Sources,” Defense News, January 2, 2007.
Farivar, Masood. “Military Seeks Oil Savings,” The Wall Street Journal, January 9, 2007.