Cummins Inc. (CMI), Raytheon Company (RTN): Close Ties Exist Between Oil, Syria & U.S. Military Casualties

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Mean and Green
The Marine Corps has several initiatives underway to help lighten its logistical footprint. The Ground Renewable Expeditionary Energy System, or GREENS, uses four high-energy lithium battery packs to provide up to 300 Watts of power for 16 hours. A solar panel array can maintain a 300-Watt charge so long as there is sustained sunshine. Between the battery packs and the solar array, troops have 24 hours’ worth of energy . In an ongoing effort to reduce the size and weight of GREENS, the Marine Corps will begin testing Cummins Inc. (NYSE:CMI)’ 5- to 60-Kilowatt generators next year. Cummins Inc. (NYSE:CMI)’ generators are also expected to improve overall system efficiency .

Meanwhile, the Hybrid Dish/Engine Expeditionary Generator, or HyDE-2G, program aims to develop a hybrid tactical generator based on concentrating solar thermal power generation technology. Raytheon Company (NYSE:RTN) has a contract to develop these next-generation, tactical systems, and the company expects its design to save 40% in fuel costs over existing technologies.

Independent of foreign oil
These are but a few examples of the kind of strategy the Marine Corps and other military branches are pursuing to wean themselves off of their dependence on foreign fossil fuels. After all, the military is the world’s largest fossil fuels consumer, and oil price shocks have an outsized effect on its budget. Price shocks such as those precipitated by unrest in Libya and Egypt cost the Department of Defense $5 billion over what was budgeted for the three most recent fiscal years. For the Navy and Marine Corps alone, every $1 increase in the price of a barrel of oil costs U.S. taxpayers an additional $30 million per year . These costs are so common and pernicious that they’re often called “instability surcharges.”

As Syria is strafed, Libyan protests continue, and Egypt’s instability persists, it’s likely that oil price volatility is going to be around for a while. Given that the stakes in this fight are nothing short of warfighters’ lives and scads of money in a budget-constrained era, the military has every motivation to push its efficient – and renewable-energy agenda forward. In Secretary Mabus’ own words,

… we have the opportunity to be present at the creation of a new energy future, which will strengthen our national security even as it creates an engine for a new economy and provides for more stability around the globe. This opportunity cannot be undermined by present-day naysayers who refuse to envision the future, even when the path is illuminated by past successes.

The article Close Ties Exist Between Oil, Syria & U.S. Military Casualties originally appeared on Fool.com is written by Sara Murphy.

Sara Murphy has no position in any stocks mentioned. Follow her on Twitter @SMurphSmiles. The Motley Fool recommends Cummins. The Motley Fool owns shares of Cummins and Raytheon Company.

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