Military Cost of Oil

Posted by Max Dunn Tue, 02 Dec 2008 16:43:00 GMT

It is well known that a large part of our military expenses goes to protecting the flow of oil from the Persian Gulf. What has not been as clear is the actual cost of this protection. However a recent study sheds some light on this hidden expense.

In this study, Mark Delucchi of the Institute of Transportation Studies at UC Davis estimates that American taxpayers spent between $27 billion and $73 billion in 2004 (which was the most recent year data was available) for military protection of US oil interests in the Persian Gulf region.

While this is a huge number by itself, it works out to only $0.03 to $0.15 cents per gallon of gas for motor vehicle use.

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