Today's Hotelier - March 2018 - 36

SMALL BUSINESS

 3-MINUTE READING TIME

ENERGY
VACLAV VOLRAB/SHUTTERSTOCK.COM

A well-oiled
economy
equals growth
It's time for America to take advantage
of our domestic energy supply.
by ALFREDO ORTIZ
LMOST EVERY INDUSTRY IN
the U.S. is affected by the
price of oil. It's used for
transportation, manufacturing, and the production of everything
from golf balls to sun glasses. It is what
drives the U.S. economy, and the hotel
industry is no exception.
Lower oil prices - meaning lower
gasoline prices - equals more people
traveling and more people staying in
hotels, which is good for business. Major
shifts in travel trends due to transportation costs can impact occupancy rates
and a hotel's ability to hire new people
or invest in upgraded facilities. So it's
important to understand what causes
gasoline prices to rise and fall.
The reason why is simple. As we
learn from basic economics, the price
of gasoline will fluctuate based on supply and demand.
The demand for gasoline can vary
depending on seasonal trends or
economic shifts. For example, more
Americans travel during the summer
months and thus need more fuel for
road trips, pushing the price of gasoline
upwards. Conversely, economic downturns can cause Americans to tighten
their budgets, and the first thing to usually go is pleasure travel.

3 6  | MARCH 2018 | TODAYSHOTELIER.COM

On the other hand, there are supply
changes. The supply of gasoline can
change for a number of reasons, but
most of them depend on the production of crude oil, the raw ingredient used
to make gasoline. Disturbances in its
production, such as hurricanes or instability in areas like the Middle East, can
cause a decrease in supply and thus an
increase in price. A recent example is
the destruction brought on by Hurricane
Harvey last year, which brought many
of the refineries in Texas to a grinding
halt. The result was a short-term price
jump in the market for oil.
While these factors are often difficult
to control or predict, one surefire way to
reduce the cost of oil, while also becoming less reliant on foreign sources, is to
simply produce more of it domestically.
This can be accomplished by either using
traditional drilling techniques in new
areas or by adopting alternative methods
that are able to extract oil that was previously considered unreachable.
One example of an alternative technique would be hydraulic fracturing -
more commonly referred to as fracking.
In this process, a well is injected with
high pressure liquid that fragments
the rock, allowing trapped oil to be
released. Although methods like this
play a vital role in our hopes to achieve

energy independence, they can be costly,
making traditional drilling the preferred
method for expanding oil exploration
efforts.
Recent legislation - signed into law in
December - creates more opportunity
for these traditional methods.
The Tax Cuts and Jobs Act opened
up part of the Arctic National Wildlife
Refuge for oil exploration - the location otherwise known as area 1002.
It's estimated that this specific coastal
region contains 10.4 billion barrels of
accessible oil. Once tapped, the land is
capable of producing roughly 1 million
barrels on a daily basis, which could
potentially account for 20 percent of
U.S. oil production, according to the U.S.
Geological Survey.
The move will increase the domestic
supply of oil considerably, pushing the
price of oil down and giving American
travelers and essentially every sector
of the U.S. economy a financial boost.
It's time for America to take advantage of our domestic energy supply.
That way our economic engine can roar
a little louder.
■
Alfredo Ortiz is the president and CEO of
the Job Creators Network.


http://www.TODAYSHOTELIER.COM

Table of Contents for the Digital Edition of Today's Hotelier - March 2018

Letter From the Chairman
Letter From the President & CEO
#AAHOACON18 Spotlight
Government Affairs & Advocacy
The C-Suite
Common Ground
Elevate Yourself to a Higher Role in the Industry
Next-Level Housekeeping via Technology
Mentoring Matters
Small Business
Finance
Marketing
Technology
Compliance & Legal
Leadership
Guest Experience
Aahoa Founding Members
Classifieds
Advertiser Index
Back of the House
Today's Hotelier - March 2018 - Intro
Today's Hotelier - March 2018 - cover1
Today's Hotelier - March 2018 - cover2
Today's Hotelier - March 2018 - 3
Today's Hotelier - March 2018 - 4
Today's Hotelier - March 2018 - 5
Today's Hotelier - March 2018 - 6
Today's Hotelier - March 2018 - 7
Today's Hotelier - March 2018 - 8
Today's Hotelier - March 2018 - 9
Today's Hotelier - March 2018 - Letter From the Chairman
Today's Hotelier - March 2018 - 11
Today's Hotelier - March 2018 - Letter From the President & CEO
Today's Hotelier - March 2018 - 13
Today's Hotelier - March 2018 - #AAHOACON18 Spotlight
Today's Hotelier - March 2018 - 15
Today's Hotelier - March 2018 - 16
Today's Hotelier - March 2018 - 17
Today's Hotelier - March 2018 - Government Affairs & Advocacy
Today's Hotelier - March 2018 - 19
Today's Hotelier - March 2018 - The C-Suite
Today's Hotelier - March 2018 - 21
Today's Hotelier - March 2018 - Common Ground
Today's Hotelier - March 2018 - 23
Today's Hotelier - March 2018 - Elevate Yourself to a Higher Role in the Industry
Today's Hotelier - March 2018 - 25
Today's Hotelier - March 2018 - 26
Today's Hotelier - March 2018 - 27
Today's Hotelier - March 2018 - Next-Level Housekeeping via Technology
Today's Hotelier - March 2018 - 29
Today's Hotelier - March 2018 - 30
Today's Hotelier - March 2018 - 31
Today's Hotelier - March 2018 - Mentoring Matters
Today's Hotelier - March 2018 - 33
Today's Hotelier - March 2018 - 34
Today's Hotelier - March 2018 - 35
Today's Hotelier - March 2018 - Small Business
Today's Hotelier - March 2018 - 37
Today's Hotelier - March 2018 - Finance
Today's Hotelier - March 2018 - 39
Today's Hotelier - March 2018 - Marketing
Today's Hotelier - March 2018 - 41
Today's Hotelier - March 2018 - Technology
Today's Hotelier - March 2018 - 43
Today's Hotelier - March 2018 - Compliance & Legal
Today's Hotelier - March 2018 - 45
Today's Hotelier - March 2018 - Leadership
Today's Hotelier - March 2018 - 47
Today's Hotelier - March 2018 - 48
Today's Hotelier - March 2018 - 49
Today's Hotelier - March 2018 - Guest Experience
Today's Hotelier - March 2018 - 51
Today's Hotelier - March 2018 - 52
Today's Hotelier - March 2018 - 53
Today's Hotelier - March 2018 - Aahoa Founding Members
Today's Hotelier - March 2018 - 55
Today's Hotelier - March 2018 - Classifieds
Today's Hotelier - March 2018 - 57
Today's Hotelier - March 2018 - 58
Today's Hotelier - March 2018 - 59
Today's Hotelier - March 2018 - 60
Today's Hotelier - March 2018 - 61
Today's Hotelier - March 2018 - 62
Today's Hotelier - March 2018 - Advertiser Index
Today's Hotelier - March 2018 - 64
Today's Hotelier - March 2018 - Back of the House
Today's Hotelier - March 2018 - 66
Today's Hotelier - March 2018 - cover3
Today's Hotelier - March 2018 - cover4
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