SEARCH BLOG: NATURAL GAS
I've written in the past about the potential for natural gas as an economical and abundant source of fuel for transportation. What has been missing is, of course, sufficient local distribution... fueling stations.
First, why NG is so economically appealing:
The oil gas ratio hit a new record high today with gas trading at $3.11/mmBtu and WTI going for $101.25/bbl yielding an energy ratio of 5.61. In simple terms this means gas is trading at the equivalent of $18.05/bbl crude. SOURCEWith gasoline somewhere around $3.30 per gallon, that's equivalent to roughly $0.60 per gallon presuming equivalent conversion and transportation costs. Imagine what that could do for the cost of ownership.
What will be needed for private-use vehicles, as mentioned earlier, is broader NG distribution... probably CNG lanes at gas stations... or dedicated stations like the one above in Chicago. NG already has the distributive infrastructure because millions of homes and businesses are already paying for the pipelines carrying that fuel. It's simply the new distributive points that have to be built. Of course, there is always the political process which may be a bigger obstacle than the technological ones.
Still, when it comes to supply, it looks as if there is an anticipation of surging supply ... despite or because of relative low prices and higher demand.
October was another record-setting month for the world's largest natural gas producer, as the U.S. produced all-time record amounts of both gross withdrawals and dry production (consumer-grade gas), according to new data released today by the Energy Information Administration. SOURCE