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Department of Defense Fuel Spending, Supply, Acquisition, and Policy
Anthony Andrews (au)
Dept. of Defense (DOD) fuel consumption varies from year to year in response to changes in mission and the tempo of operations. DOD may consume upwards of 1% of the petroleum products refined in the U.S. annually. Petroleum products purchased and consumed overseas may double DODís consumption. The majority of DODís bulk fuel purchases are for jet fuel, which has ranged as high as 101 million barrels annually in the past decade. The U.S. refining industry has been supplying 50% of the jet fuel demand. DOD has consumed as much as145 million barrels in overall petroleum products annually. Contents of this report: (I) Background; (II) Fuel Purchases: DOD Fuel Cost vs. Commercial Fuel Price; DESC Fuel Cost vs. DOD Outlays; (III) Refining, Suppliers, and the Crude Oil Supply: Crude Oil Supply; Refining; Sulfur Regulations; Greenhouse Gas Regulation; U.S. Refiners Supplying DOD Fuel; Refinery Jet Fuel Yield and Supply; (IV) Fuel Acquisition: Acquisition Regulations; Multiyear Contracting Authority; Acquisition of Alternative Fuels; Fully Burdened Cost of Fuel; (V) Policy Considerations; (VI) For Further Reading. Figures.
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