Mid-Week Review
Fuel Prices Could Add 7% to Vehicle Ownership Costs in 2019
After years of lower fuel prices incentivized drivers to purchase large, gas-guzzling vehicles, prices have inched higher, putting a squeeze on fleet budgets. A report found that fuel prices, though lower in the latter half of 2018, will likely rise even higher in 2019. For fleets, that results in a 7% increase in the costs to own and operate a vehicle. Click Here to read more from Fleet Owner.
Congress Calling for Fed Fuel Tax Hike
The chairman of the House Transportation and Infrastructure Committee, Rep. Bill Shuster, has proposed an increase in the federal fuel tax rate to fund infrastructure projects. Federal fuel taxes have not changed in 25 years, mainly due to political opposition. Consumers hate higher fuel taxes and higher fuel prices, and heading into midterm elections this proposal likely won’t stick. Still, the proposal joins a growing consensus that more tax dollars are needed to fund infrastructure – even President Trump has called for higher fuel taxes while in office. Click Here to read more from Fleet Owner.
Big Oil’s Winners and Losers amid Price Volatility
Over the past week, major oil companies around the world have been releasing their Q2 earnings reports, and the consensus is that the majors are enjoying the benefits of high oil prices. The five largest oil companies – ExxonMobil, Shell, Chevron, Total and BP – all boosted profits relative to Q2 2017. Still, stock prices for the majors have not yet caught up to overall market growth, with the S&P outpacing oil stock growth. Click Here to read more from Bloomberg.
As Cyberattacks Rise, Energy Companies Mount a Defense
As cyberattacks become more prevalent and dangerous, energy companies are being forced to ramp up their defenses. An attack on a natural gas facility could leave thousands without power; an attack on a nuclear reactor could be deadly. Defending against each individual cyberattack is like stopping a tsunami – it’s too big to prevent. The key is industry-wide communication and ensuring consequences when hackers are identified. Click Here to read more from S&P Global Platts.
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