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Fred Smith: There is No Free Market For Oil

Every American recession over the past 35 years has been preceded by – or occurred concurrently with – an oil price spike. Petroleum was responsible for 43 percent of U.S. energy-related CO2 emissions in 2009.

Every day, more than 285,000 FedEx Corp. team members deliver some 7 million packages to 220 countries. Every 24 hours, its 670 aircraft fly 500,000 miles and its couriers travel 2.5 million miles on 70,000 motorized vehicles.

“Nearly every single one of which is fueled by oil, the lifeblood of today’s mobile, global economy,” president, CEO and chairman of FedEx Fred Smith told Fortune. “We are all dependent upon it, and that dependence comes at a significant cost. Oil dependence influences U.S. foreign policy, requiring us to accommodate governments that share neither our values nor our goals.”

Smith offers the solution of electric-powered cars and trucks, mandated at the federal level.

“We cannot continue down this path,” Smith said. “I am not someone who tends to advocate increased government involvement in the private sector. But there is no free market for oil. What is needed now is an urgent, national commitment to action.”

Comments

  1. As usual, Fred is absolutely, positively right. In fact, this is an area where his leadership would make a lasting difference to our nation, and indeed the world.

    Bill Catlette

  2. Ben Stone says:

    looking forward to reading about Fred's purchase of electric vehicles, would spark demand to help foster increased investment in production!

  3. Matty says:

    Algae to biodiesel to jet fuel! Lots of folks are working on this, and someday it will be a reality.

Dansette

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