To keep the adoption of domestic fuel momentum going, I’m going to share some facts:

Fact No. 1:
• U.S. average price per gallon of gasoline on March 30, 2012: $3.90
• U.S. average price per gallon of gasoline on March 30, 2011: $3.71
• U.S. average price per gallon of gasoline on March 30, 2010: $2.81

Fact No. 2:
It is estimated that the U.S. military spends more than $10,000,000,000 per year to guard the Persian Gulf to protect our addiction to foreign oil. That’s $10 billion.

Fact No. 3:
Last June the U.S. and 27 other countries tapped the world oil reserves to release 60 million barrels to drive down the cost of fuel. At that time the average cost per gallon of gasoline in America was $3.61. Within 30 days, it was $3.69. And now? See above. (Guess that plan didn’t work very well.)

Now, I’m going to share a few opinions:

Opinion No. 1:
There are three key variables that drive gasoline prices:
• Actual or prospective turmoil in the Middle East.
• Chinese demand on a finite supply from common sources.
• Perceived lack of alternatives to gasoline.

Opinion No. 2:
The government’s alternative fuel tax incentives (including a $.50 per gallon tax credit) dried up at the end of 2011. This credit was important to demonstrate a competitive gap between gasoline and gaseous alternative fuels like compressed natural gas and propane, especially when gas prices were $2.81 per gallon. Now that gas prices have — and will continue — to increase, we have essentially recaptured that $0.50 gap, plus another $0.50.

Opinion No. 3:
If you are waiting for some other subsidy to happen before you start or accelerate your domestic fuel adoption, it won’t be happening anytime soon. But you don’t need it. You’ll get another fifty cents or more difference at the pump soon enough.

If you are a fleet that hasn’t been looking at or making moves to adopt a domestic fuel in the past three years, please be aware that you are hurting, not helping, our domestic energy security and economics. Keep sitting on your hands while the rest of us improve our position with respect to our fuel costs.

If you are a fleet that has taken a leadership position and changed your fuel source, congratulations! As of yesterday you were paying around $2.00 per gallon for natural gas or propane. Not only are you saving money, you are helping this country take necessary steps to a healthy energy future.

So here’s your fuel for thought. I was in a meeting earlier this month with a highly respected and well-known Navy vice admiral (retired). He still tours in the Persian Gulf, has friends and family who serve over there, and possesses a huge depth of knowledge on the subject of American energy. He explained to me that the adoption patterns of American fleets over the next two to three years is the most critical factor for America to maintain its position as a global power. In short, we are at a point where each of our energy decisions will contribute to a healthy America.

Please make something happen on your end.

If you’ve spent your valuable time going through my “Fuel For Thought” blogs, you’ll find that although I attempt to remain fuel neutral (as long as it’s American), sometimes I drift back to propane autogas.

This will be one of those times.

Propane autogas’s operating performance properties, environmental characteristics, domestic production and cost structure all add up to create a very attractive equation.

However, we’ve found that many believe the price of propane autogas per gallon is comparable in cost to gasoline.

Reports from the U.S. Department of Energy have portrayed the per gallon price of propane for vehicles as though it was being bought for a barbeque tank, five to ten gallons at a time twice a year. While many of these surveyed locations can, indeed, fuel your vehicle, they’re charging a premium for this low-volume barbeque purchase.

Therefore, when the randomly selected locations’ fuel prices are surveyed and tallied, the cost per gallon reported is often much higher than our fleet customers are actually experiencing with their personal accounts.

Recently ICF International published a white paper entitled “The Price of Propane for Fleet Vehicle Use” (March 15, 2012).

You can download a copy of the report, but to save you time I’ve listed three of the most important findings:

• ICF International studied confidential transactions for more than 30 million gallons of propane sales.

• Review of those transactions indicates a 2011 difference in price between gasoline and propane at $1.17 per gallon, after federal and state taxes were applied, and before any tax credits were applied.

• ICF expects the difference to grow to between $1.50 and $1.70 per gallon in 2012.

This report takes into account the increasing price of gasoline based on global demand (against a finite supply) and the fact that our country exported over two billion gallons of propane last year. That last statistic should convince you that we have a lot of it here in the USA.

All any of us need is good information to make quality decisions. When I went through the ICF International report, it hit me that we finally are making steps toward cost-per-gallon clarity required to make a difference. That’s useful, accurate information.

Thank you, ICF International. You’ve given me some fuel for thought.

I’ve run businesses for the legendary Jack Roush for about eight years. I worked for him another eight years prior to that.

People often ask me, “What’s it like to work for a man like Jack?”

Jack wins championships on Sunday, leads one of the premier engineering companies in the automotive world, owns four other companies that bear his name, and has a brand reputation with his Mustangs that equals performance excellence.

Here’s what I tell people, “Jack puts his pants on one leg at a time just like you. The only difference is, once he gets his pants on, he searches for problems and fixes them to avoid being a victim of dysfunction.”

Problems are always going to exist, and Jack’s philosophy is to identify them in enough time to correct them before they victimize you. In the competitive world of ROUSH, if you refuse to search for problems and solve them, you are allowing those setbacks to dictate your level of success (or lack thereof).

Here’s an example:

If “Joe” forgot to check the pressure on a set of tires that Goodyear supplies for a race, we put flat tires on a racecar, and we don’t win the race.

We know that it was Joe’s fault, but knowing whose fault it was didn’t win the race — and it certainly won’t win championships.

At ROUSH, our business is the same way. Knowing who to blame doesn’t put profits on the bottom line. Instead, we work together to identify and resolve failure modes before they have a chance to affect us on the track — or in the boardroom. We call it the discipline that creates a championship team, not a team of champions.

Think about your business. What are you about to be a victim of (besides my poor grammar in that question)? Consider the rising costs of:

• Maintenance.
• Wages.
• Paper.
• Paper clips.
• Fuel.

Performing at a championship level requires that you understand your challenges, prioritize them by which is the most impactful (sorry, an easy victory from decreasing the cost of your paper clips doesn’t count), then creating an action plan. My guess is that if you have solutions for maintenance and fuel costs, then you are taking control of your future and doing what it takes to win.

Here’s what Jack Roush has taught me about winning: If you are paying attention to just the paper clips, ignoring your problems all together, or focusing on “who’s to blame,” you may as well get ready to lose.

Take control of your rising fuel costs today.

Do your research (and yes, reading my earlier blogs counts as research). Convert to a domestic energy source.  Win championships.

Now you know a little more about what it’s like to work for Jack, and what Jack would do.

At ROUSH CleanTech, we have a saying, “Let’s let the truth guide us.” It keeps us from having too many meaningless conversations.

Jack Roush recently introduced me to an organization called CNA, a not-for-profit research organization dedicated to operations research analysis to support the U.S. military and government. One such project was the analysis of the German U-Boat Threat in the 1940s. CNA’s literature explains this early project was groundbreaking work resulting in anti-submarine warfare barrier equations that set the standard for future operations research methods.”

I believe they are a credible and highly valued organization. Their fact-based advice and opinions are multi-layered and extensively researched.

While reading through some of their projects online, I found a few comprehensive reports that offer a great overview of the real impact of U.S. energy independence. You will find many detailed CNA reports that outline the guiding principles of our country’s national energy policy here.

Their report, “Ensuring America’s Freedom of Movement: A National Security Imperative to Reduce U.S. Oil Dependence,” published October 2011, offers some compelling news:

… Our overreliance on oil is a national vulnerability. If even a small percentage of the daily supply of oil is interrupted, our nation’s economic engine, which is heavily reliant on transportation, could be significantly impacted. Despite our strategic oil reserve, the consequences for a sustained oil disruption – oil shock – would impact every aspect of our lives, from food distribution and what (or if) we eat, to manufacturing goods and services and associated jobs, to how we move from place to place in the conduct of our everyday lives … 

… Our dependence on oil reduces our foreign policy options — no small concern as Middle East uprisings continue and dangerous regimes work to develop nuclear weapons. It leads us down foreign policy paths that ultimately put our troops in harm’s way. Oil dependence drags our economy downward, thwarts investment, and imperils our historic role as technology leaders … 

… Our overreliance on oil is made worse by our lack of control over global supplies, which is why, in this report, we focus on oil generally and not on foreign oil specifically. Oil is a global commodity, and any amounts of oil produced in North America become part of the global supply. When global prices spike upward, the domestic price also spikes — we don’t get “big-box store” discounts just because of our nationality. We too often watch idly how these price swings have been, and continue to be manipulated by parties beyond U.S. control or influence … 

… The long list of viable alternatives to oil is good news. We have options. Good ones. While the options are many, no single option is poised to occupy the singular place that petroleum now holds in American society. This, too, should be viewed with optimism, because it allows us to accept a future characterized by diverse supplies. Our current overreliance on a single fuel is a weakness; relying on diverse fuels and vehicle types can be a strength. Seeking a silver bullet would be a major mistake – we should pursue diversity. 

There are more reports. Many more. Take a look. Yes, I know you are busy. But the evidence in these publications is compelling. You will not regret taking 30 minutes of your day to read through these reports.

These experts agree that embracing natural gas, propane autogas and other sources of domestic energy for transportation use are critical to our national security.

At ROUSH CleanTech, we have a saying, “Let’s let the truth guide us.” It keeps us from having too many meaningless conversations. Jack Roush recently introduced me to an organization called CNA, a not-for-profit research organization dedicated to operations research analysis to support the U.S. military and government. One such project was the analysis of [...]

I’m from Ohio. I’m proud to work in Michigan for ROUSH CleanTech. But, I’m from Ohio. When I heard the news that Government Fleet named the City of Columbus the “2011 Government Green Fleet in North America,” I was excited. (I’m also thrilled about the awesome recruiting class Ohio State has going for the next [...]

Over the recent holidays, I heard a friend say, “The cost of gasoline sure has dropped. I filled up for less than $50 today.” As he was saying that, tensions with Iran were on the rise. And, little did he know, his next fill-up would be more expensive, and the one after that even higher, [...]

I recently delivered a keynote speech regarding the development of alternative fuel technology; however, this time I pursued a different angle with my message. The “green/clean” energy message is crisp and clear to everyone willing to listen. I decided we needed to peel the layers back a little further and identify other benefits of deploying [...]

I’m having a good week.   I’ve received eight direct phone calls this week from prospective fleets interested in alternative fuel technology. Each of them I would consider more than “a little interested.” Since we, like many efficient companies, have a well-organized structure that channels sales interest through our sales organization, these typically go through [...]

I’ve blogged. I’ve met with countless fleet managers. I’ve met with Congressmen and Senators. I’ve been the keynote speaker at conventions. I hear the same thing over and over: alternative fuels have a solid message that makes folks generally excited about greening the environment. In fact, in some of the more advanced companies, fleet managers [...]

It’s one thing to love your profession. It’s another thing to live it. Do you find your mission rewarding? Does it compel you to put everything you have into it because there’s a greater good stake — and that’s how you were raised? Do you wake up in the middle of the night because inspiration [...]

I’ve got this feeling something big is about to happen. Do you ever feel like that? Like all the signs are pointing in one direction and you find yourself on the edge of your seat trying to stake your claim in the race before it’s over. I’m sure there are more than a few businessmen [...]

Do you have in your mind what the perfect fuel for your fleet looks like?  I tried to sketch it out today. Here’s what I came up with (this is awesome — kind of like doing a fantasy football draft): 1.     Zero Emissions 2.     100 percent domestic 3.     Little to no cost increment 4.     Affordable [...]

I’m going to open this one by scribing text directly from an Associated Press release from June 23rd:  “Wary of a new surge in gas prices, the Obama administration … is selling off 30 million barrels of oil from the country’s emergency reserves as a part of a broader internal response to lost oil supplies [...]

I’m the kind of guy that likes to look back. It helps me compare where we ‘are’ with where we ‘were.’  It’s a good way to measure progress (or lack thereof). I think most of us are that way. Check out the following two images – they tell good stories from very separate points in [...]

I’m from Ohio.

I’m proud to work in Michigan for ROUSH CleanTech.

But, I’m from Ohio.

When I heard the news that Government Fleet named the City of Columbus the “2011 Government Green Fleet in North America,” I was excited. (I’m also thrilled about the awesome recruiting class Ohio State has going for the next football season, but that’s another story.)

We work with a lot of cities, all deserving of their own fleet awards. Cities like Austin, San Antonio, Fort Worth, El Paso, Cincinnati, Livonia, Flint … the list goes on.

The common thread uniting all of these cities is that they have a plan that is beyond the recently popular “let’s try an alternative fuel” syndrome. These cities’ plans include a specific beginning, champions of the program, accountability and lots of follow up. These plans produce not only awards, but measurable results that benefit our environment and our national energy policy. 

Columbus’ plan for success followed exactly the path that many of us on FleetBlogs.com have been talking about — combining domestic sources of energy (compressed natural gas, electrification and propane autogas) within various applications around the organization’s needs.

The City of Columbus’ case uses medium- and heavy-duty trucks fueled with natural gas and lawn mowers fueled with propane. This provides maximum impact of taxpayer investments into greening Columbus, and once again proves that domestic fuel neutrality is the key to our nation’s long-term success. (If you’re interested, the plan for the City of Columbus is published at www.getgreencolumbus.com, and it shows why they are so deserving of the award I mentioned.)

Economic conditions will ebb and flow, but letting “green policy” guide these ups and downs will drive powerful results for our nation’s security and environment.

Does your fleet have a defined “green” policy? One that evaluates all elements of the fleet, one that is inclusive of all domestic fuels, one that is structured to resist economic temptations, one that generates results based on performance? If so, I’ll bet there’s a former little boy from your state that’s really, really proud of what you are doing — just like I am of the City of Columbus, Ohio.