ASDWire distribution date: Wed, 18 Nov 2009 09:52:00 GMT +0100

Worldwide market for military energy, fuels and power sources was worth $34.5bn in 2008

London, United Kingdom, November 17, 2009 --[ASDWire]-- In October 2009, it was reported that sending an additional 1,000 troops to Afghanistan would cost the US government $1bn. Part of this high cost is because the US Department of Defense (DoD) has stated that it pays an average of $400 a gallon ($110 a litre) for fuel to power its aircraft and ground combat vehicles operating in Afghanistan. This is the 'fully burdened' cost of fuel, covering not only the purchase price but also the cost of transportation, security, protection and refueling vehicles.. Therefore there is a strong drive in the US for greater efficiency to reduce costs and also to improve energy independence.

The USAF plans to complete certifying all of its aircraft to fly using synthetic fuels by 2011. By 2016, the USAF intends for half of its domestic jet fuel requirements to be accounted for by synthetic fuels. This equates to about 350-400 million US gallons (1,320-1,510 million litres) of non-petroleum fuel being secured annually from sources such as biomass, coal and natural gas. However, the US currently has only limited capacity for producing synthetic fuels. This is therefore a potential growth area.”

The world’s armed forces operate and continue to acquire weapon systems that were designed to run on fuels derived from relatively cheap oil. But as the oil price spike of 2008 illustrated, potential petroleum market volatility has to be factored into defence ministries’ budgets. Military capabilities could be severely constrained if higher fuel costs forced a reduction in the use of critical assets.
In the long term, as global demand for oil rises and supply dwindles, governments may be forced to adapt their military strategies to cope with the changing energy landscape. Energy Independence is increasingly becoming a factor in national security. As energy supplies become increasingly scarce, imbalances in access to resources could potentially even push competing nations into military confrontations.

A comprehensive analysis of the military energy, fuels and power sources market:
Military Energy, Fuels and Power Sources Market 2009-2019 examines the global market for fuels and power sources from an impartial standpoint. The report draws on a combination of official corporate and governmental announcements, media reports, policy documents, industry statements and expert opinion.
Military Energy, Fuels and Power Sources Market 2009-2019 provides detailed sales forecasts for the global market and leading national markets; a SWOT analysis; discussions of commercial and technological trends; and assessments of commercial drivers and restraints. This report also includes five in-depth original interviews with industry experts.

By: Daniel Harrison, Defence Analyst Visiongain

Find more information: http://www.asdreports.com/info.asp?id=3163

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