Increasing Oil Prices Require Breakthrough Innovations for American Manufacturers

Increasing Oil Prices Require Breakthrough Innovations for American Manufacturers

Soaring oil and energy costs affect Americans at home and at work. It has become obvious that high oil costs are hurting manufacturing companies who must pay more for heating and electricity. Although oil prices may dip and spike short-term, it appears oil will never be cheap again. A forecast for the next 25 years, predicts oil consumption will double in developing Asian nations to over 32 millions barrels per day creating even more demand and higher prices. U.S. manufacturing must continue to use innovations to keep a competitive edge.

It is time for America to act on our strong entrepreneur spirit to change the course of history, and put us on a path away from our addiction to oil. A massive investment in new breakthrough technology and innovations to grow our economy is required to help manufacturing companies develop a greener future.

In December 2007, due to the high oil prices, new legislation passed requiring breakthrough innovations, to produce more fuel-efficient vehicles. The legislation requires automakers to develop new technologies, materials and alternative power sources, to increase fuel efficiency by 40 percent to an industry average 35 miles per gallon by 2020. This sweeping energy legislation package mandates the first substantial change in the nation's vehicle fuel-efficiency law since 1975, despite opposition from U.S. auto companies. It is time for America to take on this challenge, which if mastered, could provide a new industrial revolution for America. If we do not take on this challenge, be assured the rest of that the world will, and the technology leadership the U.S. enjoys today will expire.

The United States, with current efficiency standards of 27.5 miles per gallon for cars and 22.2 per gallon for SUVs and small trucks, has lagged far behind the rest of the developed world. In the European Union, automakers have agreed to voluntary increases in fuel-economy standards that next year will lift the average to 44.2 miles per gallon, according to the Pew Center on Global Climate Change. For the vehicles in Japan, the average fuel economy tops 45 miles per gallon. China's level is in the mid-30s and is projected to rise, propelled by China’s government policy.

In addition to vehicles, new breakthrough innovations and technology will be required, to meet the new efficiency standards in lighting, commercial and government buildings, and appliances such as refrigerators, dishwashers and freezers, which the bill put into effect. For an example, light bulb efficiency will have to increase 70 percent by 2020.