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Tuesday, July 1, 2008

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Oil makes U.S. military shift priorities

A U.S. military humvee

The U.S. military is a big customer for oil companies, and the price hike per barrel means a much higher bill this year. Jeremy Hobson reports how fuel could factor in and change the budget.

A U.S. military humvee (Brennan Linsley/AFP/Getty Images)

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TEXT OF STORY

Scott Jagow: Oil companies and countries have one single big customer, and that is the U.S. military. And the U.S. military's bill this year will be a lot higher. Here's Jeremy Hobson.


Jeremy Hobson: A pentagon spokesman says the cost hike will mean an extra $400 million a month, and that commanders will have to quote "reprioritize" daily support activities.

Michael Klare is a professor at Hampshire College who's written extensively on the military's use of oil:

Michael Klare: The military is coming late to an appreciation of their vulnerability to reliance on petroleum.

Just think of all the planes, ships, humvees and helicopters. So what's likely to be sacrificed to make up for soaring costs?

Klare: Some of the new generation of weapons that they would like, instead of high hundreds, they're going to get few hundreds.

Military experts say cutting back on fuel, personnel and ammunition is unlikely during wartime. There are moves to reduce military dependence on oil, like mobile solar panels to power generators in Iraq and nuclear energy to fuel Navy warships.

In Washington, I'm Jeremy Hobson for Marketplace.

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