From the COO

In the last few months, oil and gasoline prices have risen to their highest levels in two years, and analysts predict prices could shoot up dramatically this year as the thirst for fuel grows in the U.S. and around the world. In addition to fuel demand, geopolitical events will likely affect the supply of oil around the world, adding additional volatility in the oil and fuel market and likely putting additional upward price pressure on fuel.

 

The former head of Shell Oil has warned that gas prices could hit $5 a gallon by 2012 because of fast-growing demand in emerging countries such as China and India, where more and more people are buying cars, companies building factories and combined with the restraints in the U.S. in the wake of last year’s disastrous Gulf oil spill.

 

Less worrisome, but still concerning, forecasts are calling for a rise in gas prices to $3.75 - $4 a gallon by spring. Today’s U.S. average price for a gallon of gasoline is $3.10 and $3.44 for a gallon of diesel according to the U.S. Energy Information Administration. In the chart below, the upward trend and volatility of gasoline prices over the last two years is dramatic. In 2009, gasoline increased 45.8%. From January 2009 to January 2011, gasoline is up over 73%.

 

Unpredictable fuel prices have further compounded already stretched fleet budgets. Volatility in fuel prices is increasing making planning and budgeting all the more difficult. The largest variable cost for fleet owners is typically the fuel that powers their vehicles. Dealing with the uncertainty of fuel expenses has driven fleet managers to develop alternative strategies to minimize expenses while increasing fleet utilization in an unpredictable economic environment.

 

For nearly four decades E.J. Ward, Inc. (Ward) has provided Fuel Management and Fleet Telematic Technologies that ensures our fleet customers can achieve Best Practices across the Ward Five Factors of Fleet Management^TM: 1) Optimization 2) Utilization 3) Risk Management 4) Expense Control and 5) Environmental Stewardship & Sustainability Initiatives.   Over the last two years, Ward has invested heavily in new technologies in the fuel management and fleet telematic (GPS, OBD Integrations, Tire Pressure Monitoring, etc.) products and services. By focusing on the Five Factors of Fleet Management, Ward delivers exceptional value to our customers through innovative fleet products and services. The value is translated into significant cost and expense savings while minimizing the affect of a volatile fuel market and maximizing the value of the fleet to your organization. 

 

As we enter 2011, Ward looks forward to working with our fleet customers and partners in solving complex fleet problems through innovative solutions.  I am extremely proud of Ward as we approach our 4^th decade of operations. We will continue to live our corporate values and focus on creating customer value. This is why Ward has been successful in supporting fleets for over 37 years and this is why we will continue to be successful in the future. Our success is based on our customer’s success.