It should be a surprise to nobody that the Biden Administration is tough on fossil fuels in favor of clean energy. As the United States implements an oil embargo on Russia, diesel prices are hitting record highs. The truth of the matter is that because of global supply chain shortages and the composition of electric fuel, it is going to take a lot of greenhouse gas to transition off of it.
Supply Chain Woes
In the economy’s current state, truck manufacturers are building trucks slower than people are buying them, and prices rise. This stems from the fact that a truck needs almost every part in order to function, creating a bottleneck if the manufacturer does not have the steering wheel ready to install.
If the trucking industry is having a hard time procuring common materials such as rubber and aluminum, it is struggling to get rarer metals used for electric batteries such as nickel.
This is perhaps most evident with the Tesla Semi. With components for electric vehicles not being mined and shipped at high enough volumes, the electric vehicle manufacturer has opted to focus on making smaller cars.
Additionally, the increased prices of newer trucks can cause a business to hold off on replacing older models with lower emission standards. Trucks on the road are slowly getting older.
Electric vehicles are not as clean as they appear to be on the surface. According to the U.S. Energy Information Administration, about 60% of the energy used in electricity comes from fossil fuels. For the country to make the shift to renewables such as solar or wind, it will need supplies to build the panels or wind turbines, productions of which are already hampered by global supply chain woes.
To an extent, the current Administration is aware of the nation’s current need for fossil fuels, as the Biden Administration has been in talks with Venezuelan dictator Nicolas Maduro to replenish crude oil supply lost from Russia. Regardless of where the United States gets its oil from, it produces the same amount of greenhouse gas (perhaps even less, when considering shipping). In order for America to get off of oil, it will first need to embrace it.
ABOUT TOPMARK FUNDING
TopMark Funding is a top-rated semi-truck financing and trailer financing company located in Roseville, CA. We specialize in commercial trucking and heavy equipment. Our mission is to become your long-term financial partner by helping you grow your trucking business and fleet.
We’re not here for the short-term, we’re on the long-haul with you!
Learn more about Trailer Financing.
Fill out the contact form or give us a call at (866) 627-6644. One of our truck financing specialists will contact you as soon as possible to go over your truck lease needs and learn more about you and your business financing goals.
Top Trending Trucking Articles
- FMCSA COVID-19 Emergency Extended Another Three Months
- NTEA Cancels Conference, but not for the Reason You Expect
- Johnny Cash and the Distance to go Everywhere, Man
- CTA Petitions the Supreme Court
- Senate Passes INVEST in America Act
- Trucking Insurance Bill Reintroduced to Congress
- Biden Signs Executive Order on Truck Emissions