Procurement: November 2, 2004

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In 2002, the U.S. Department of Defense purchased 7.5 billion gallons of fuel (mostly JP-8 and JP-5 aviation gas). But current operations in Iraq alone are consuming 5.4 billion gallons a year. Overall Department of Defense fuel purchases will be over ten billion gallons this year. The military buys via bulk contracts, and doesnt pay the same pump price that civilians do, but when the price of oil is up over 30 percent (to over $50 a barrel), the Pentagon ends up paying more for fuel. But paying for it isnt as difficult as moving it. Thats been a major chore in Iraq, where roadside bombs and frequent ambushes have required thousands of troops to spend most of their time escorting fuel trucks to dozens of American bases. About ten percent of all convoys in Iraq are carrying fuel. As is the case elsewhere, most of the fuel does not go to power ground vehicles, but for aircraft and generators.

 


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