The transportation industry is one of the vital sectors of economic development that enables the movement of people and goods. However, it is vastly dependent on other interconnected areas, such as the governmental policies, the health of the energy industry, and customers’ preferences (Dominković et al., 2018). This integration in economics implies the cyclical nature of the transportation industry and the lack of autonomy. Depending on the current energy prices and governmental regulations of taxes, the transportation sector needs to adjust its objectives and demands to successfully operate in contemporary economics (Dominković et al., 2018). Moreover, it depends on the global economic downturns, such as supply chain disruptions, energy price deviations, and politics. Ultimately, the transportation industry is cyclical in nature since it is sensitive to global and national economic trends.
As a result, the energy sector is one of the crucial external factors that implies the cyclical nature of the transportation industry. At present, there are heated discussions concerning the relevance, viability, and sustainability of the existing energy sources (Umar et al., 2021). The transportation sector of the United States has been targeted explicitly by many organizations due to its vast negative impact on the environment (Umar et al., 2021). According to the International Energy Agency (IEA), the transportation sector consumed approximately 30% of the total national energy in 2019 (Umar et al., 2021). Since most of the existing energy sources substantially impact the environment, people have started discussing the necessary changes to the industry. It generally entails the efforts toward sustainable energy sources, which would decrease the reliability of the sector on global trends and economic factors. Nevertheless, this fact further implies the cyclical nature of the transportation sector and its dependence on external influence. Ultimately, changes in global energy prices, customers’ preferences concerning sustainability, and politics inevitably affect the industry.
Since the transportation sector is cyclical in nature, global economic downturns significantly affect its operations, which is transparently demonstrated by the current energy crisis. Russia is one of the largest energy suppliers in the world, and its war with Ukraine has drastically disrupted the supply chains of oil and gas (Calma, 2022). As a result, the West needs to adapt to the current realities of the energy crisis and mitigate the adverse effects on the transportation industry.
Two primary methods can effectively prevent the upcoming crisis – the increase in the capacity of energy resources or the improvement of fuel efficiency. While it should be a collaborative effort among governments, organizations, and people, transportation companies are the vital stakeholders in this process (Calma, 2022). One of the approaches is to increase the viability of public transport, which would, in turn, decrease energy consumption. Namely, public transport in the United States is notorious for its low performance compared to Europe and, specifically, developed countries in Asia (English, 2018). Virtually every adult requires an individual vehicle to move around the cities freely, and this trend is disastrous in terms of energy consumption. It makes America highly dependent on oil, gas, and other energy sources. Transportation companies might mitigate this issue by collaborating with the government and changing the image of public transit in the United States.
Moreover, the companies might introduce sustainable alternatives to conventional vehicles. Recently, electric automobiles have received increasing attention due to their lesser negative impact on the environment. As the gas prices rise, electric cars become a more affordable alternative as well (Lambert, 2022). While this approach does not directly mitigate the oil and gas crisis, it can effectively reduce the energy consumption overload. Lastly, transportation companies can cooperate with the government and people to minimize the negative effects of the economic downturn. Ultimately, the energy crisis is a significant problem, but it is possible to mitigate it through collaborative efforts and intelligent supply decisions.
References
Calma, J. (2022). Looming oil crisis has energy watchdog begging people to drive less. The Verge.
Dominković, D. F., Bačeković, I., Pedersen, A. S., & Krajačić, G. (2018). The future of transportation in sustainable energy systems: Opportunities and barriers in a clean energy transition. Renewable and Sustainable Energy Reviews, 82, 1823-1838.
English, J. (2018). Why public transportation works better outside the U.S.Bloomberg.
Lambert, F. (2022). Electric cars are now three to six times cheaper to drive in the US as gas prices rise. Electrek.
Umar, M., Ji, X., Kirikkaleli, D., & Alola, A. A. (2021). The imperativeness of environmental quality in the United States transportation sector amidst biomass-fossil energy consumption and growth. Journal of Cleaner Production, 285, 124863.