Fuel costs and technology driving change
There is a nite amount of oil and we may be near or have reached the peak of supply. Add in the huge appetite for oil in rapidly developing countries like China, India and Russia and it is not hard to imagine that crude oil prices will increase from their current level, around $110 a barrel, to $200 a barrel. In fact, in a recent report by Jeff Rubin, chief economist with CIBC World Markets Inc., he predicts this will happen within ve years. That translates to about $2.25 a litre for gas at the pump and similarly high prices for diesel. In the nearer term, he expects crude to reach $150 by 2010. The result will be higher operating costs for gas and diesel powered equipment. So, what can you do about this to help your business?
One solution is Caterpillar’s the D7E, which will be available in 2009. From the outside, it looks like a regular dozer. It’s what is under the hood that is impressive. The D7E uses a diesel engine to drive a generator, which produces electricity that ultimately powers two AC electric drive motors. A traditional mechanical transmission is not needed, because the variable speed electric motors serve the function of a continuously variable transmission. The electric drive train has 60 percent fewer moving parts compared to previous D7s. This track-type tractor will move 25 percent more material per gallon of fuel, lower lifetime operating costs by 10 percent, and increase productivity by 10 percent.
Another option is the use of bio-fuels. In the article (page 21) by Rakesh Singh of Golder Associates, he explains that biodiesel can be made from animal and plant wastes and municipal solid wastes and sludges, and oils from waste water treatment. Bio-fuels do not need to use corn or other crops. General Motors is planning to power vehicles with ethanol developed from such wastes using a process developed by a partner company, Coskata Inc., a biology-based renewable energy company. Using proprietary microorganisms and patented bioreactor designs, Coskata claims that they will be able to produce ethanol for under US$1.00 per gallon, which is about 25 cents a litre. Of course, the infrastructure to supply the ethanol has to be installed but this may happen quite quickly as vehicles start rolling off the assembly line and consumers see the cost savings of using ethanol. Technology is changing our industry in other ways too. Take, for example, Web-based, GPS-enabled fleet management from Iowa Mold Tooling Co. (page 19). Their ValuePlus Fleet Management software is a way to analyze and improve the operating costs of vehicles over time. “This software will show us how much it costs to keep these trucks in service and whether we’re spending our dollars per hour wisely,” said Wayne Danielson, director of aftermarket operations for RDO, a U.S. nationwide equipment dealer. “The reports will tell us when to buy new trucks, when to move trucks to different branch locations and when to rotate older trucks out for new models. ValuePlus will absolutely help our bottom line going forward.” These and other stories in this issue can help you become more efficient. And with rising costs, that will be ever more important.
One solution is Caterpillar’s the D7E, which will be available in 2009. From the outside, it looks like a regular dozer. It’s what is under the hood that is impressive. The D7E uses a diesel engine to drive a generator, which produces electricity that ultimately powers two AC electric drive motors. A traditional mechanical transmission is not needed, because the variable speed electric motors serve the function of a continuously variable transmission. The electric drive train has 60 percent fewer moving parts compared to previous D7s. This track-type tractor will move 25 percent more material per gallon of fuel, lower lifetime operating costs by 10 percent, and increase productivity by 10 percent.
Another option is the use of bio-fuels. In the article (page 21) by Rakesh Singh of Golder Associates, he explains that biodiesel can be made from animal and plant wastes and municipal solid wastes and sludges, and oils from waste water treatment. Bio-fuels do not need to use corn or other crops. General Motors is planning to power vehicles with ethanol developed from such wastes using a process developed by a partner company, Coskata Inc., a biology-based renewable energy company. Using proprietary microorganisms and patented bioreactor designs, Coskata claims that they will be able to produce ethanol for under US$1.00 per gallon, which is about 25 cents a litre. Of course, the infrastructure to supply the ethanol has to be installed but this may happen quite quickly as vehicles start rolling off the assembly line and consumers see the cost savings of using ethanol. Technology is changing our industry in other ways too. Take, for example, Web-based, GPS-enabled fleet management from Iowa Mold Tooling Co. (page 19). Their ValuePlus Fleet Management software is a way to analyze and improve the operating costs of vehicles over time. “This software will show us how much it costs to keep these trucks in service and whether we’re spending our dollars per hour wisely,” said Wayne Danielson, director of aftermarket operations for RDO, a U.S. nationwide equipment dealer. “The reports will tell us when to buy new trucks, when to move trucks to different branch locations and when to rotate older trucks out for new models. ValuePlus will absolutely help our bottom line going forward.” These and other stories in this issue can help you become more efficient. And with rising costs, that will be ever more important.