I just posted about Obama’s energy policy speech which is helping to lift the natural gas fuel stocks. A press release from Ford Motor (F) is likely helping as well. They are saying that demand for CNG (compressed natural gas) vehicles has been rising due to rising oil prices, government incentives and an increased number of available nat gas pumping stations. Ford offers the CNG option on its Transit Connect E-Series vans and F-series super duty trucks.
"Fleet managers are adding all the reasons up and concluding that it makes sense to switch to CNG now more than ever," said Rod Phillips, Ford Commercial Business Manager of the New England area.
According to the EPA, CNG fuel can result in a reduction of 30 –40% in greenhouse gas emissions. Another benefit is cost which is currently around 50% cheaper than gasoline.
Ford is absolutely correct in betting on the future of CNG as automotive fuel. Dutch and Belgian motorists have for many years been converting their automobiles to CNG as an after market product for around $1,200 ( 1970 $)
It works like this: There are conversion kits available for professional installers
to purchase. A small, owner operator, gasoline station next to my plant in
Belgium could convert 1 1/2 autos a day and made a very good living at it.
The engines were modified to accept both gasoline and CNG by a simple lever switch.The engine was always started with gasoline and when warm, switched to CNG. THERE WERE MANY STATIONS SELLING BOTH FUELS in these countries.
The attraction to the consumer was the price per kilometer was considerably less on CNG than gasoline. THE GOVERNMENT helped in this
effort by a tax differential in the fuel price.
My suggestion therefore is for our GOVERNMENT BY PRESSURE ON THE BIG
OIL MAJORS, both political and incentive taxation pressure to install CNG
facilities IN SOME OF THEIR EXISTING STATIONS SINCE DISTRIBUTION is the
KEY. PEOPLE WILL NOT INSTALL A BI-FUEL SYSTEM IF THEY CANT FIND A SOURCE CONVENIENTLY WITH REASONABLE PRICING. THIS SITUATION DOES
NOT EXIST AT THIS TIME BECAUSE THE MAJORS ARE RELUCTANT TO MAKE THE INVESTMENTS.
CONVERSION TO BI FUELS IS SIMPLE. Many city busses run on CNG today so
the concept is sound and completely safe.
THE ONLY THING THAT IS NEEDED IS a GOVERNMENT PROGRAM WITH INCENTIVES TO INTRODUCE THE FUEL ON A NATIONAL BASIS. We have a lot of CNG in this country and could free ourselves from Arab controlled oil.
That would shake a lot of people up and give our international relations a
new, positive outlook.
Thanks for your thoughts William. It’s the age old chicken/egg problem but companies like CLNE are building out infrastructure mainly for taxis/buses/large trucks and making the stations available to the public. But I agree, a national program to install CNG fueling at traditional gasoline stations is needed for widespread adoption.
Tate, its profit vs profit! Price auto fuels high enough and LNG will becomes the preferred choice if there is comensurate profit derived there from.
Few business’s invest in new tech/products if they can not earn sufficient profits to justify the investment. So for the oil giants to commence building LNG/NG processing plants/refineries they must be assurd of a long term profital future.
OPEC can & has manupuliated oil prices at will and can crush most if not all new energy production regardless of technology. Therefore We the People must resolve ourselves to switch to LNG/NG vehicles and conversions from gas to LG.This then will become the issue. Its still boils down to profits,profits and continued profits. The markets ready and able but are we willing to break the mold and eject OPEC from our vehicles. Comments appreciated.